Local rates are those developed under Local government guidelines for use in normal day-to-day operations. FEMA generally provides Public Assistance funding for equipment usage based on the lower of either the Local rate or the FEMA rate.

However, if the Local rate is lower, but it does not reflect all of the costs associated with operating the equipment, FEMA may provide Public Assistance funding based on the higher FEMA rate.

Additionally, if the local rate is higher, the Applicant must document the basis for that rate and obtain approval from FEMA for the higher rate.

If determining the lowest rate for each piece of equipment is overly burdensome because of the number of different types of equipment used, or if the Applicant prefers, FEMA will reimburse all equipment use based on the lower of the two rate schedules, rather than based on a comparison of each individual rate. In these cases, the PA Division at FEMA Headquarters determines which schedule of rates is lower.