Police and Fire Costs: Must a Carrier Pay?

You've had an overturn accident, spilling several thousand gallons of gasoline onto a busy highway. The local police, fire, and HazMat services arrive at the scene and perform emergency services. A month later, you receive a bill from the city, demanding that you pay $120,000 for the city's services. You've already paid your own emergency response contractor, a fine to the state EPA, and lost a vehicle. Now, do you have to pay the city too?

Spill response is expensive. In addition to manpower and equipment, emergency services use consumables such as foam, hoses, protective clothing, etc. It has become common for cash-strapped local governments to try to shift the cost of spill response to the carrier. For example, after a recent spill in Florida, the county fire department billed the carrier $23,125 for use of equipment, $9,800 for the employees, $68 for a portable toilet, and $12 for drinks. "You'll find that most legitimate industry is more than happy to pay you," the fire chief is quoted as saying. "We've been very successful in getting reimbursements from hazardous materials accidents in the past."

Just wait a minute now. No one expects a bill when the police apprehend a thief, or when the fire department responds to a call at a home or business. Why should official response to a spill be any different? In fact, police and fire services are functions of government, and as such should be paid by the public from tax revenues. As one judge said when denying a city's claim for spill response costs, "the services of fire fighters may not be billed as a public utility".

A government agency cannot recover the costs of emergency services unless a federal, state or local law specifically so provides. Federal and state environmental laws allow the government to recover certain costs of cleaning up hazardous substances; however, petroleum products generally are not "hazardous" under these laws. And, a few state or local laws specifically allow fire and other emergency services to recover some spill response costs. But in most instances, a carrier is not obliged to reimburse the government for police and fire costs.

How, then, should a carrier answer a demand to pay for emergency services after a spill? The carrier's obligation may depend upon the material spilled, the type of services employed, and the provisions of state and local law. The stakes can be high, and a carrier must know the rules that apply to the particular situation. Environmental Counsel, LLP, assists carriers in answering demands for spill response costs, and stands ready to help you too.