This lesson provides an overview of the Declaration Process and Public Assistance Program Eligibility.

Upon completion of this lesson, participants will be able to:

• Identify administrative requirements of the course
• State the goals and objectives of the course
• Describe the Declaration Process and the authorization of Public Assistance
• Identify the authorities, regulations, statutes, and program guidance that control the Public Assistance process in determining eligibility

When a State, Territorial, or Tribal government determines that an incident may exceed SLTT capabilities to respond, it requests a joint Preliminary Damage Assessment (PDA) with FEMA. Federal, SLTT government, and certain PNP organization officials work together to estimate and document the impact and magnitude of the incident.

The Governor or Tribal Chief Executive may request a declaration from the President through FEMA. A Tribal government may elect to be a Recipient or a Subrecipient under a State or Territorial declaration or request its own declaration as a Recipient. The Governor, and/or the Tribal Chief Executive if the Tribal Government wishes to be its own Recipient, must submit the request no later than 30 days after the incident occurs. FEMA may extend the deadline if the Governor or Tribal Chief Executive submits a written time extension request within 30 days of the incident stipulating the reason for the delay. When a severe or catastrophic incident occurs, the Governor or Tribal Chief Executive may submit a declaration request prior to completion of the Preliminary Damage Assessment (PDA). This is referred to as an expedited declaration request. In such circumstances, assistance is generally limited to that which would address immediate needs based on rapid assessments until the PDA is completed.

For FEMA to provide assistance, the President must declare that an emergency or major disaster exists.

The declaration establishes:

• Type of incident
• Incident period
• Designated areas
• Types of assistance
• Federal cost share
• Federal Coordinating Officer (FCO)

The following slides take a closer look at each of the components of a presidential disaster declaration.

The Federal share has a minimum of 75 percent of eligible costs:

• If Federal obligations, excluding administrative costs, meet or exceed a qualifying threshold, FEMA may recommend an increase up to 90 percent
• The Federal cost share for Emergency Work may be increased in limited circumstances if warranted

The declaration also designates the types of authorized Federal assistance. The President may authorize assistance to:

• Individuals and households through its Individual Assistance program
• State, Territorial, Tribal, and Local governments, and certain types of private nonprofit organizations through its Public Assistance program

The type of assistance available may vary among designated areas and FEMA may add additional types of assistance after the declaration. However, for FEMA to consider adding additional types of assistance, the Governor or Tribal Chief Executive must request the assistance within 30 days of the declaration date or the end of the incident period, whichever is later. FEMA may extend the deadline if the Governor or Tribal Chief Executive submits a written time extension request within the 30-day deadline with justification of the inability to meet the deadline.

Additionally, after every declaration, the applicable State, Territorial, or Tribal Government must enter into an agreement with FEMA regarding the understanding, commitments, and conditions under which FEMA will provide assistance (FEMA-State/Territory/Tribe Agreement).

FEMA and the Governor or Tribal Chief Executive must sign this agreement before FEMA provides assistance. If necessary, because of exigent circumstances, FEMA may authorize essential emergency services or housing assistance under the Individuals and Households Program while the agreement is in process for signature.

The presidential declaration also designates the incident period.

The incident period is:

• The span of time during which the federally declared incident occurs. This period varies in length, depending on the type of incident.

The declaration likewise designates which areas (e.g., county, parish, city, Tribal Government) are eligible to receive Federal assistance.

FEMA may add additional areas after the initial designation. However, for FEMA to consider adding an additional area, the Governor or Governor's Authorized Representative or, for Tribal declarations, the Tribal Chief Executive or Tribal Authorized Representative must request the addition within 30 days of the declaration date or the end of the incident period, whichever is later.

FEMA may extend the deadline if the Governor, Governor's Authorized Representative, Tribal Chief Executive, or Tribal Authorized Representative submits a written time extension request within the 30-day deadline with justification of the inability to meet the deadline.

FEMA provides this assistance based on authority in statutes, Executive Orders, regulations, and policies. If an entity does not comply with all applicable statutes, Executive Orders, regulations, and policies, FEMA may take one of several actions including disallowing all or part of the cost of the project not in compliance.

The mission of FEMA's Public Assistance Program is to provide assistance to State, Territorial, Tribal, and Local governments, and certain types of private nonprofit organizations so that communities can quickly respond to and recover from major disasters or emergencies declared by the President.

Through the Public Assistance Program, FEMA provides supplemental Federal disaster grant assistance for debris removal, emergency protective measures, and the restoration of disaster-damaged, publicly owned facilities and the facilities of certain private nonprofit organizations. The Public Assistance Program also encourages protection of these damaged facilities from future events by providing assistance for hazard mitigation measures.

Statutes are Federal laws passed by the U.S. Congress and signed by the President. All Public Assistance Program assistance must comply with all applicable statutes. The statute that authorizes FEMA to provide assistance via the Public Assistance Program is the Robert T. Stafford Act. The following sections of the Stafford Act specifically authorize the assistance FEMA provides under the Public Assistance Program:

• Title I - Findings, Declarations and Definitions
• Title III - Major Disaster and Emergency Assistance Administration
• Sec. 311. Insurance
• Sec. 312. Duplication of Benefits
• Sec. 324. Management Costs
• Title IV - Major Disaster Assistance Programs (applies to Major Disaster Declarations)
• Sec. 403. Essential Assistance
• Sec. 406. Repair, Restoration, and Replacement of Damaged Facilities
• Sec. 407. Debris Removal
• Sec. 428. Public Assistance Program Alternative Procedures
• For more information on Alternative Procedures, please refer to IS-1005 Public Assistance Program Alternative Procedures Independent Study course and visit www.fema.gov.  
• Title V - Emergency Assistance Programs (applies to Emergency Declarations)
• Sec. 502. Federal Emergency Assistance
• Title VII - Emergency Preparedness
• Sec. 705. Disaster Grant Closeout Procedures

Regulations are Federal rules with the force and effect of law that implement a statute based on a Federal agency's interpretation of that statute. FEMA and any entity receiving assistance must comply with all applicable Federal Regulations.

FEMA publishes Public Assistance Program rules in the following parts of 44 Code of Federal Regulations:

• Part 206 Subpart G, Public Assistance Project Administration;
• Part 206 Subpart H, Public Assistance Eligibility;
• Part 206 Subpart I, Public Assistance Insurance Requirements; and
• Part 207, Management Costs.

The Office of Management and Budget establishes regulations regarding administrative requirements, cost principles, and audit requirements in 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

FEMA issues policy to articulate the Agency's intent and direction in applying statutory and regulatory authority to guide decision-making, achieve desired outcomes, and ensure consistent implementation of programs across the Nation.

FEMA generally publishes proposed Public Assistance policy language in the Federal Register for public comment prior to publishing in the Public Assistance Program and Policy Guide.

The Public Assistance Program and Policy Guide combines Public Assistance policy into a single volume and provides an overview of the Public Assistance Program implementation process with links to other publications and documents that provide additional process details.

The Federal Emergency Management Agency refers to these components as the building blocks of the Eligibility Pyramid. Generally, FEMA must determine whether each building block is eligible, starting at the foundation (Applicant) and working up to the top of the pyramid (cost).

The Applicant is responsible for demonstrating that each component of the pyramid is eligible by providing supporting documentation.

• FEMA accepts a variety of documentation to substantiate eligibility
• In some cases, FEMA requires specific documentation to support eligibility

There are two exceptions to the standard Eligibility Pyramid:

• Private nonprofits must own or operate an eligible facility in order for the Applicant to be eligible
• Evaluating facility eligibility is not a necessary step for most Emergency Work  State, Territorial, Tribal, and Local Government Applicants

This lesson covered the Declaration Process and provided an overview of Public Assistance Program eligibility.

The next lesson provides an overview of the Applicants eligible to receive Public Assistance Program grants and how to locate Applicant eligibility in the Public Assistance Program and Policy Guide.

This lesson provides an overview of the entities who may apply for Public Assistance Program grants and what laws and various documents govern their ability to do so.

Upon completion of this lesson, participants will be able to:

• Identify the Applicants eligible to receive Public Assistance Program grants.

State and Territorial governments are Applicants who may be eligible to receive Public Assistance.

Examples of generally eligible State and Territorial government Applicants are:

• District of Columbia
• American Samoa
• The Commonwealth of the Northern Mariana Islands
• Guam
• Puerto Rico
• U.S. Virgin Islands
• All 50 States

The following Local governments are examples of Applicants that may be eligible to receive Public Assistance:

• Counties and parishes
• Municipalities, cities, towns, boroughs, and townships
• Local public authorities
• School districts
• Intrastate districts
• Councils of governments (regardless of whether incorporated as nonprofit corporations under State law)
• Regional and interstate government entities
• Agencies or instrumentalities of Local governments
• State-recognized Tribes
• Special districts established under State law

Additionally, the State or a political subdivision of the State may submit applications on behalf of rural communities, unincorporated towns or villages, and other public entities not listed above.

Additional local government applicants that may be eligible for Public Assistance include Community Development Districts. These are special districts that finance, plan, establish, acquire, construct or reconstruct, operate, and maintain systems, facilities, and basic infrastructure within their respective jurisdictions.

To be eligible, a Community Development District must be legally responsible for ownership, maintenance, and operation of an eligible facility that is accessible to the general public.

Prior to determining the eligibility of the private nonprofit organization, FEMA must first determine whether the organization owns or operates an eligible facility.

For private nonprofit organizations, an eligible facility is one that provides a critical service, such as:

• Education
• Utility
• Emergency
• Medical

Provides a non-critical, but essential, social service and is open to the general public, for example:

• Child care
• Assisted living
• Health and safety services
• Food assistance programs
• Alcohol and drug treatment
• Senior citizen projects

For a private nonprofit organization facility to meet the requirement of being open to the public, the facility must satisfy all of the following conditions:

• Use is not limited to any of the following:
• A certain number of individuals
• A defined group of individuals who have a financial interest in the facility, such as a condominium association
• Certain classes of individuals
• An unreasonably restrictive geographical area, such as a neighborhood within a community
• Access is not prohibited with gates or other security systems
• Membership fees meet all of the following criteria:
• Are nominal
• Are waived when an individual can show inability to pay the fee
• Are not of such magnitude to preclude use by a significant portion of the community
• Do not exceed what is appropriate based on other facilities used for similar services

In cases where the facility provides multiple services, such as a community center, or House of Worship, FEMA reviews additional items to determine the primary service that facility provides, such as:

• U.S. Internal Revenue Service documentation
• Pre-disaster charter, bylaws, and amendments
• Evidence of longstanding, routine (day-to-day) use (e.g., a calendar of activities)

Facilities established or primarily used for political, athletic, recreational, vocational, or academic training, conferences, or similar activities are generally not eligible.

This lesson provided an overview of the entities who may apply for Public Assistance Program grants and what laws and various documents govern their ability to do so. Participants should now be able to identify the Applicants eligible to receive Public Assistance Program grants.

The next lesson discusses eligibility requirements for public and private nonprofit facilities.

This lesson identifies what facilities are eligible and the requirements for a facility to be eligible for Public Assistance Program grants.

Upon completion of this lesson, participants should be able to:

• Explain eligibility requirements for public and private nonprofit facilities

For Private nonprofits, the facility must be eligible in order for the work to be eligible.

For State, Territorial, Tribal, and local governments, the facility must be eligible in order for Permanent Work, temporary repairs, or mold remediation to be eligible.

• Facility eligibility is not applicable to other types of Emergency Work

An eligible private nonprofit facility is one that provides educational, utility, emergency, medical, or custodial care, including for the aged or disabled, and other essential social services to the general public.

• If a private nonprofit operates multiple facilities, or a single facility composed of more than one building, FEMA will evaluate each building independently, even if all are located on the same grounds
• Buildings that are part of a complex that includes outdoor facilities (e.g., swimming pools, athletic fields, tennis courts) are not evaluated separately from the rest of the complex when determining eligibility of the building

A mixed-use facility is a private nonprofit facility that provides both eligible and ineligible services. Eligibility of mixed-use private nonprofit facilities depends on the primary use of the facility, which is determined by the amount of physical space dedicated to eligible and ineligible services and applies to both emergency and permanent work.

• Primary use: The use for which more than 50 percent of the physical space in the facility is dedicated
• FEMA evaluates the entire structure when determining primary use; it does not separately address individual areas, such as floors, basements, or wings
• Common space, such as bathrooms, hallways, lobbies, closets, stairways, and elevators, is not included when calculating mixed-use space
• If the facility is eligible, FEMA prorates funding based on the percentage of physical space dedicated to eligible services
• The Applicant is responsible for the balance of costs to restore the facility and must restore the entire facility to receive funding for repairs to the eligible-use portions of the facility

In cases where a private nonprofit Applicant shares use of a facility, the facility must be primarily owned by the private nonprofit Applicant and meet the primary use requirement, in order to be eligible. FEMA prorates funding for these facilities based on the percentage of physical space that the Applicant owns and dedicates to eligible services. The following guidelines are used to determine the eligibility of such facilities:

If the eligible private nonprofit owns the entire facility and leases a portion of it to another entity, the facility is eligible provided that the private nonprofit dedicates more than 50 percent of the facility for eligible services.

If the private nonprofit leases 50 percent or more of the facility to an ineligible Applicant, or for ineligible services, then the facility is ineligible.

If the eligible private nonprofit only owns a portion of the facility, it is eligible provided that the private nonprofit owns more than 50 percent of the facility and dedicates more than 50 percent of physical space for eligible services.

Alternate use facilities may be eligible for Public Assistance grant funding.

Alternate use facility: A facility that was serving an alternate function at the time of the incident but was not altered to provide that function.

• I.e., An Applicant designed and constructed an administrative building, but later used it as a school

Other Federal agencies also have authority to provide assistance after disasters. If a facility is under the specific authority of another Federal agency, FEMA does not provide assistance to restore that facility even if that Federal agency does not provide funding to restore the facility.

• 72 Public Housing Authority facilities are eligible unless Congress appropriates funds to the U.S. Department of Housing and Urban Development for emergency capital needs for that facility
• Other Federal agencies have authority to conduct specific work that may overlap with FEMA's authority. FEMA does not provide assistance for that work except in certain, limited circumstances

To be eligible, a facility must have been in active use at the start of the incident period. Inactive facilities are not eligible, unless one of the following conditions is met:

• The facility was only temporarily inactive for repairs or remodeling (provided a contractor is not responsible for repair of disaster-related damage);
• The Applicant firmly established future active use in an approved budget; or
• The Applicant can clearly demonstrate its intent to begin use within a reasonable amount of time.

The above criteria also apply to facilities that are partially inactive at the start of the incident period. Inactive portions are not eligible unless one of the exceptions noted above applies.

Facilities that are not yet under contract but scheduled for repair or replacement using non-Federal funds are eligible provided that the claimed damage did not exist prior to the incident (FEMA may review the bid and contract documents to validate).

• If damage existed prior to the incident, only the repair of damage caused by the incident is eligible.
• A facility scheduled for replacement within 12 months of the start of the incident period using Federal funds is not eligible.
• In such a case, the Applicant should coordinate with the agency funding the project to expedite replacement, if possible

This Lesson identified what facilities are eligible and the requirements for a facility to be eligible for Public Assistance Program grants. Participants should be able to explain eligibility requirements for public and private nonprofit facilities.

The next Lesson identifies what facilities are eligible and the requirements for work to be eligible for Public Assistance Program grants

This lesson identifies the requirements for work to be eligible for Public Assistance Program grants.

Objectives:

• Describe work eligibility
• Explain differences between Permanent Work and Emergency Work
• Review different categories of work

The next component of eligibility that this course focuses on is work eligibility. The Applicant's work to repair the damage must meet certain eligibility requirements for the Applicant to receive grant funding.

The first requirement of work eligibility is that it must meet minimum work eligibility requirements.

The second requirement of work eligibility is that it must fall within one of the categories of work. Through the Public Assistance program, FEMA provides grant funding for:

• Emergency Work: Emergency protective measures and debris removal
• Permanent Work: Permanent restoration of damaged facilities, including cost-effective hazard mitigation to protect the facilities from future damage including effective hazard mitigation and codes and standards upgrades

One of the minimum work eligibility criterion is that the work is required as a result of the declared incident.

The Applicant is responsible for showing that work is required:

• Due to an immediate threat resulting from the declared incident (for Emergency Work); or
• To address damage caused by the declared incident.

For debris removal, the Applicant must demonstrate that the debris causing an immediate threat was generated during the declared incident period and directly by the declared incident.

For temporary repairs, mold remediation, and Permanent Work, the Applicant must demonstrate that damage was caused directly by the declared incident.

FEMA does not provide Public Assistance funding for repair of damage caused by:

• Deterioration
• Deferred maintenance
• The Applicant's failure to take measures to protect a facility from further damage
• Negligence

Documents (maintenance records, photos, etc.) are very important to validate the damages claimed by the incident to distinguish between pre-disaster and post-disaster damages.

The last minimum eligibility criterion for work is that it must be the legal responsibility of the Applicant requesting assistance.

To determine legal responsibility for Emergency Work, FEMA evaluates whether the Applicant requesting the assistance either had jurisdiction over the area or the legal authority to conduct the work related to the request at the time of the incident.

FEMA determines legal responsibility for facility restoration by evaluating whether the Applicant claiming the costs had legal responsibility for disaster-related restoration of the facility at the time of the incident based on ownership and the terms of any written agreements (such as for facilities under construction, leased facilities, and facilities owned by a Federal agency).

There are several factors to consider when determining the legal responsibility of the Applicant. The next seven screens provide in-depth considerations when assessing the following factors:

• Facility ownership
• Facilities under construction
• Leased facilities
• Federal facilities
• Jurisdiction over an area
• Conducting activities on private property

The second type of legal ownership FEMA reviews when checking work eligibility is if the facility is under construction and who during that contract is legally responsible for repairing the damage.

If the facility is under construction by a contractor at the time of the incident, FEMA reviews the contract to determine whether the Applicant is legally responsible for the repair of damage caused by the incident. At a minimum, FEMA evaluates the contract to determine if it:

• Identifies the contractor or owner as being responsible for disaster-related repairs;
• Requires a builder's risk policy for losses that occur while the contractor has control of the facility;
• Has a Force Majeure provision, which is a clause that relieves the contractor from responsibility for damage beyond its reasonable control, such as natural disasters (often referred to "acts of God") or acts of war; or
• Has a provision that identifies the point at which the contractor transfers legal responsibility for the facility, or portions of the facility, back to the owner.

A third type of legal responsibility that FEMA reviews before providing grant funding is who in a lease has legal ownership to make repairs.

An Applicant may own a facility and lease it to a tenant, or an Applicant may lease a facility owned by another party. In either case, FEMA reviews the lease agreement to determine legal responsibility for repair of damage caused by the incident. If the lease does not specify either party as responsible, FEMA considers the owner of the facility legally responsible for the costs to restore the facility.

If the lease is between two eligible Applicants, FEMA provides Public Assistance funding to the Applicant legally responsible for the restoration.

Another type of legal ownership FEMA reviews before providing grants is if a facility is owned by a Federal agency.

Facilities owned and maintained by Federal agencies are not eligible. However, if a Federal agency constructed a facility and formally designated the Applicant as the legally responsible entity for facility operation, maintenance, and repairs, then the facility is eligible. FEMA reviews the agreement between the Federal agency and the Applicant to confirm the legally responsible entity.

A fifth type of legal responsibility that FEMA reviews is jurisdiction of an Applicant, specifically for Emergency Work.

In general, an Applicant only has legal responsibility to conduct Emergency Work activities within its jurisdiction. If an Applicant conducts Emergency Work activities outside its jurisdiction, it must demonstrate its legal basis and responsibility to conduct those activities.

A last type of legal responsibility that FEMA looks for before providing grant funding is an Applicant's legal basis for conducting work on private property.

To determine whether a State, Territorial, Tribal, or Local government has legal responsibility to conduct activities on private property, FEMA reviews the Applicant's legal basis and authority to conduct the activities.

During the performance of Emergency Work, an Applicant may damage improved property, supplies, or equipment. The repair of this damage is eligible as part of that respective project if the damage was:

• Due to severe conditions resulting from the incident
• Unavoidable
• Not due to improper or excessive use

Within Emergency Work are two Categories of Work: Category A and Category B. This subsection of Emergency Work discusses Category A: Debris Removal. Recall that Category A work pertains to debris removal. Debris eligibility can be complicated and incidents with extensive debris operations will often require FEMA to create a Debris Task Force with specialists to address the issues.

For more information on debris management and operations, please refer to the course: IS-632.A Introduction to Debris Operations.

Common types of debris include, but is not limited to:

• Vegetative debris
• Construction and demolition debris
• Sand
• Mud
• Silt
• Gravel
• Rocks
• Boulders
• Vehicle and vessel wreckage
• Hazardous household waste

Category A debris removal activities are generally eligible when the work:

• Eliminates immediate threats to lives, public health, and safety
• Eliminates immediate threats of significant damage to improved public or private property
• Ensures economic recovery of the affected community to the benefit of the community at large
• Mitigates risk to life and property

For a private nonprofit, eligible debris removal is limited to that associated with an eligible facility, including debris on the property of the eligible facility.

Generally, debris removal from the following is not eligible:

• Federally maintained navigable channels and waterways
• Flood control works under the authority of the Natural Resources Conservation Service
• Agricultural land
• Natural, unimproved land, such as heavily wooded areas and unused areas
• When debris is placed on the public rights-of-way from commercial properties
• When debris materials are related to the construction, repair, or renovation of either residential or commercial structures

While broken limbs or branches are common types of vegetative debris and are generally eligible, there are several factors that need to be taken into consideration when making an eligibility recommendation. For instance, the Applicant should take into account the location of the broken limb or branch; specifically, whether it is on public land or is it on private property. The location will help FEMA determine whether the limb or branch may be eligible for Public Assistance.

Generally, not eligible unless the following occurs:

• The broken limb or branch has a diameter of 2 inches or larger and poses an immediate threat
• The hazard hangs over improved property or public-use areas because it could fall and cause injury or damage to an improved property.
• The broken limb or branch has been cut at the 'minimum cut' to remove the hazard
• Cutting the branch at the trunk may not be eligible if the threat can be eliminated by cutting it at the closest main branch junction.

A broken limb or branch that is located on private property is generally not eligible. FEMA may consider funding removal when:

• The limbs or branches extend over the public rights-of-way
• The limbs or branches post an immediate threat
• The Applicant removes the hazard from the public rights-of way without entering the private property

FEMA may consider trees to be hazardous and eligible if the Applicant can attribute the damage to the incident and if the tree's diameter is 6 inches or greater, measures at least 4.5 feet above ground level, and has one or more of the following characteristics:

• Split trunk
• Broken canopy
• Leaning at an angle greater than 30 degrees

In instances where a disaster-damaged tree has 50 percent or more of the root-ball exposed, the tree may be eligible for removal and the root-ball may be eligible for filling. Should FEMA determine that the tree is eligible for funding, the Applicant should note that:

• For contracted removal, FEMA will not reimburse two separate unit costs to remove the tree and its root-ball.
• When trees have less than 50 percent of the root-ball exposed, FEMA only provides Public Assistance funding to flush cut the item at ground level and dispose of the cut portion based on volume or weight; grinding any residual stump after cutting the tree is not eligible.

A stump with 50 percent or more of the root-ball exposed may be eligible for removal and filling in of the root-ball hole. If grinding a stump in-place is less costly than extraction, grinding the stump in-place may be eligible.

Stump removal in areas with known or high potential for archaeological resources usually requires FEMA to further evaluate and consult with the State or Tribal Historic Preservation Officer. If the Applicant discovers any potential archeological resources during stump removal, the Applicant must immediately cease work and notify FEMA.

The Applicant should note that when a stump is removed by contracted services, FEMA reimburses contracted costs charged on a per-stump basis if:

• The stump is 2 feet or larger in diameter measured 2 feet above the ground; and
• Extraction is required as part of the removal.

The Applicant must ensure the price for stump removal includes extraction, transport, disposal, and filling the root-ball hole.

In order for the vegetative debris to be found eligible, the Applicant must provide all requested documentation to support the eligibility claim of removing tree limbs, branches, stumps, or trees that are still in place. Requested documents may include but are not limited to:

• Specifics of the immediate threat with the latitude and longitude location and photograph or video documentation that establishes the item is on public property
• Diameter of each item removed (measurement must be 2 feet up the trunk from the ground for stumps and 4.5 feet up for trees)
• Quantity of material to fill root-ball holes
• Equipment used to perform the work

Another common type of debris is hazardous materials. The next two screens discuss eligibility considerations when dealing with the removal of this type of debris. Hazardous materials have properties that make it potentially harmful to human health or the environment.

Examples of types of hazardous material debris are:

• Household hazardous waste are hazardous products and materials that are used and disposed of by residential rather than commercial or industrial consumers. Examples include:
• Some paints, stains, varnishes, solvents, pesticides, and other products or materials containing volatile chemicals that catch fire, react, or explode under certain circumstances, or that are corrosive or toxic
• Electronic waste (e-waste) refers to electronics that contain hazardous materials such as cathode ray tubes. Examples include:
• Computer monitors and televisions
• White goods are defined as discarded household appliances. Many white goods contain ozone-depleting refrigerants, mercury, or compressor oils. The Clean Air Act prohibits the release of refrigerants into the atmosphere and requires that certified technicians extract refrigerants from white goods before they are disposed of or recycled. Examples include:
• Refrigerators, freezers, air conditioners, heat pumps, ovens, ranges, washing machines, clothes dryers, and water heaters

For more information, please refer to Public Assistance Debris Management Guide or the online course: Introduction to Debris Operations course.

The Applicant must comply with Federal, State, Territorial, Tribal, and Local government environmental requirements for handling hazardous materials. Before handling or disposing of hazardous materials, the Applicant should contact the appropriate Federal, State, Territorial, or Tribal agency and obtain required permits.

Additionally, appropriate certified hazardous waste specialists should handle, capture, recycle, reuse, or dispose of hazardous materials. When providing Public Assistance funding for work involving the handling of hazardous materials, FEMA must ensure compliance with the Resource Conservation and Recovery Act.

The next category of debris and eligibility considerations that will be discussed over the next five screens are debris located in waterways.

The Applicant should be aware of the Ports and Waterways Safety Act (33 U.S.C. 1221). This Act states that the U.S. Coast Guard is responsible for keeping waterways safe and open. While there is no specific language stating that the U.S. Coast Guard is responsible for debris removal from waterways, the U.S. Coast Guard has been tasked to assist in waterway and marine transportation system recovery. Public Assistance and U.S. Coast Guard have the specific authority to remove hazardous materials. Public Assistance reimburses for the removing of such material from inland water zones and U.S. Coast Guard is responsible for coastal water zones.

Debris removal from waterways that is necessary to eliminate the immediate threat to life, public health and safety, or improved property may be eligible to receive Public Assistance funding. Removal of debris in a waterway that does not meet this criterion is not eligible, even if the debris is deposited by the incident.

For FEMA to determine if debris removal from waterways is eligible, the Applicant must provide documentation that:

• Establishes legal responsibility
• Includes the basis of the immediate threat determination
• Identifies locations, types, and quantities of debris
• Demonstrates the debris claimed was deposited by the incident and was not pre-existing

Non-navigable Waterways

Debris deposited by the incident may obstruct a natural waterway (a waterway not improved or maintained) or a constructed channel, including flood control works. Removal of the debris from the channel may be eligible if the debris poses an immediate threat, such as when the debris:

• Obstructs, or could obstruct, intake structures
• Could cause damage to structures, such as bridges and culverts
• Is causing, or could cause, flooding to improved public or private property during the occurrence of a 5-year flood

Applicants should be aware of the Natural Resources Conservation Service and how it may impact their grant:

• Removal of the obstruction may be eligible in streams where debris removal would also be eligible under the Natural Resources Conservation Service Emergency Watershed Protection Program unless Natural Resources Conservation Service provides assistance for the debris removal.
• Debris removal from flood control works that are under the specific authority of Natural Resources Conservation Service is not eligible for Public Assistance funding, even if Natural Resources Conservation Service does not have sufficient funding or does not provide assistance.

Identifying Debris Impact Locations and Documentation

The Applicant is responsible for identifying debris deposited by the incident that poses an immediate threat. The Applicant should work with the Program Delivery Manager to determine what documentation is required to demonstrate debris impact locations.

• Random surveys to look for debris, including surveys performed using side scan sonar, are not eligible.
• If the Applicant identifies an area of debris impacts and demonstrates the need for a survey to identify specific immediate threat, FEMA may provide Public Assistance funding for the survey in that location, including the use of side scan sonar.

If debris on private property is so widespread that it threatens public health and safety or the economic recovery of the community, FEMA may provide Public Assistance funding for debris removal from private property. This debris removal must be in the public interest, not merely benefiting an individual or a limited group of individuals within the community.

In limited circumstances, based on the severity of the impact of an incident, FEMA may determine that debris removal from private property is potentially eligible under the Public Assistance Program. In making its determination, FEMA evaluates whether the impacts of debris on private property affect the general public in that community and whether the Applicant has legal authority to perform the work.

In such cases, FEMA works with the State, Territorial, Tribal, and Local governments to designate specific areas where debris removal from private property, including private waterways, is eligible.

The following slides outline various requirements to determine if the debris on private property may be eligible for funding.

Written Request

Prior to commencing work on private property, the Applicant must submit a written request and receive approval from FEMA. The written request must include:

• A public interest determination
• Documentation supporting the Applicant's legal authority to remove the debris
• Indemnification

The Applicant needs to identify the specific properties or areas of properties for which it is requesting approval.

Public Interest Determination

The Applicant must provide the basis for the determination that removing the debris from the private property requested is in the public interest. The determination must be made by the State, Territorial, Tribal, county, or municipal government's public health authority or other public entity that has legal authority to make a determination that disaster-generated debris on private property in the designated area constitutes an immediate threat to life, public health, or safety, or to the economic recovery of the community at large.

Additionally, the Applicant must submit its established, specific legal requirements for declaring the existence of a threat to public health and safety.

Indemnification and FEMA Approval

The Applicant must indemnify the Federal Government and its employees, agents, and contractors from any claims arising from the removal of debris from private property.

FEMA will provide a written response to the request specifying any properties or area of properties for which debris removal is approved.

The Applicant must provide confirmation that it satisfied all legal processes and obtained permission requirements from the property owners (rights-of-entry) and agreements to indemnify and hold harmless the Federal Government before FEMA will provide PA funding for debris removal from private property.

Duplication of Benefits

When applying for Public Assistance grant funding, the Applicant must be aware of duplication of benefits, especially when dealing with private property.

The Applicant should work with private property owners to pursue and recover insurance proceeds and credit FEMA the Federal share of any insurance proceeds received. In some circumstances, FEMA may provide Individual Assistance to individuals for debris removal; consequently, FEMA Public Assistance staff will coordinate closely with Individual Assistance staff to ensure FEMA does not fund the same work under both programs.

Temporary Staging Sites

Establishing and operating a temporary staging site necessary for the purpose of debris separation and reduction is eligible. The cost to lease property is eligible. Additionally, if the terms of the lease require that the Applicant restore the leased property back to its condition prior to the Applicant's use, the costs related to that restoration are also eligible as part of the Category A project.

Hand-Loaded Trucks and Trailers

FEMA has determined that, for vegetative debris, hand-loaded trucks and trailers achieve approximately half the compaction level of mechanically loaded trucks and trailers. Therefore, FEMA only provides Public Assistance funding for 50 percent of the vegetative debris in hand-loaded trucks and trailers.

Similarly, trucks without solid tailgates cannot be compacted to full capacity. Therefore, FEMA will only fund a maximum of 85 percent of the debris in trucks without solid tailgates.

The Applicant must document the types and total quantity of debris that was hand-loaded and the types and total quantity of debris hauled in trucks without solid tailgates and provide this information to FEMA to ensure appropriate reductions are taken for this debris.

Tipping Fees

A tipping fee is the charge levied upon a given quantity of waste received at a waste processing facility. In the case of a landfill it is generally levied to offset the cost of opening, maintaining and eventually closing the site. Landfill tipping fees usually include fixed and variable costs, along with special taxes or fees assessed by the jurisdiction in which the landfill is located.

Eligible tipping fee costs are limited to the variable and fixed costs directly related to landfill operations, such as recycling tax. The components of tipping fees not directly related to landfill operations, such as special taxes or fees related to other government services or public infrastructure, are not eligible as part of the tipping fee. When providing Public Assistance funding for tipping fees, FEMA removes any ineligible components.

The Applicant may use a significant portion of the available capacity of a landfill to dispose of incident-related debris. Although FEMA provides Public Assistance funding for tipping fees, it cannot provide funding for the value of the loss of landfill capacity due to incident-related debris.

As stated previously, this module provided an overview of common types of debris removal and their requirements.

The next few slides discuss the general considerations an Applicant should make for all Category A projects. This includes the following:

• Monitoring debris removal operations
• Special considerations
• Environmental and historic preservation
• Alternative Procedures Pilot Program for debris removal

Once completed, this module discusses Category B of Emergency Work.

Force Account resources (including temporary hires), contractors, or a combination of these may be used by the Applicant for monitoring. It is not necessary or cost-effective to have Professional Engineers or other certified professionals perform debris monitoring duties.

The use of staff more qualified than necessary for the associated work is considered an unreasonable cost. If staff with professional qualifications are used to conduct debris monitoring, the reason must be documented.

FEMA provides training to the Applicant's force account debris monitors upon request. Eligible debris monitoring activities may include:

• Field supervisory oversight
• Monitoring contracted debris removal at both the loading and disposal sites
• Compiling documentation, such as load tickets and monitor reports, to substantiate eligible debris
• Training debris monitors on debris removal operations, monitoring responsibilities and documentation processes, and FEMA debris eligibility criteria

Although debris removal is generally statutorily excluded from National Environmental Policy Act review, FEMA must ensure compliance with other Federal laws, regulations, and executive orders prior to funding the work. The Applicant should contact applicable Federal, State, Territorial, and Tribal regulatory agencies to ensure compliance with requirements and permits for debris-related operations.

Accordingly, FEMA must ensure that the Applicant's debris removal operations avoid impacts to floodplains, wetlands, federally listed threatened and endangered species and their critical habitats, and historic properties.

The Applicant must stage debris at a safe distance from property boundaries, surface water, wetlands, structures, wells, and septic tanks with leach fields.

 Upon completion of debris removal and disposal, site remediation may be necessary at staging sites and other impacted areas.

For more information on environmental and historic preservation, please refer to the course: IS-1016 Environmental and Historic Preservation Considerations and Compliance.

The Applicant may elect to participate in the Alternative Procedures for debris removal and receive reimbursement for straight-time for the Applicant’s budgeted employees that conduct debris removal activities.

The Applicant opts-in by including straight-time in their debris removal (Category A) project claims.

For more information on the Public Assistance Alternative Procedures Program, please take course IS-1005 Public Assistance Alternative Procedures.

Emergency Protective Measures conducted before, during, and after an incident are eligible if the measures:

• Eliminate or lessen immediate threats to lives, public health, or safety; OR
• Eliminate or lessen immediate threats of significant additional damage to improved public or private property in a cost-effective manner

FEMA may require certification by Federal, State, Territorial, Tribal, or Local government officials that a threat exists, including:

• Identification and evaluation of the threat
• Recommendations of the work necessary to cope with the threat

• Grouping of common emergency protective measures
• Considerations for private nonprofits
• Common emergency protective measures

Saving Lives and Protecting Public Health and Safety

The following emergency protective measures and costs are potentially eligible because the actions save lives or protect public health or safety. This list is not all-inclusive.

• Transporting and pre-positioning equipment and other resources for response
• Flood fighting
• Emergency Operation Center-related costs
• Emergency access
• Supplies and commodities
• Medical care and transport
• Evacuation and sheltering, including that provided by another State or Tribal government
• Child care
• Safety inspections
• Animal carcass removal
• Demolition of structures
• Search and rescue to locate survivors, household pets, and service animals requiring assistance
• Fire fighting
• Security, such as barricades, fencing, or law enforcement
• Use or lease of temporary generators for facilities that provide essential community services
• Dissemination of information to the public to provide warnings and guidance about health and safety hazards using various strategies, such as flyers, public service announcements, or newspaper campaigns
• Searching to locate and recover human remains
• Storage and interment of unidentified human remains
• Mass mortuary services

Protecting Improved Property

Emergency Protective Measures to protect improved property that are generally eligible include:

• Constructing emergency berms or temporary levees to provide protection from floodwaters or landslides
• Emergency repairs necessary to prevent further damage, such as covering a damaged roof to prevent infiltration of rainwater
• Buttressing, shoring, or bracing facilities to stabilize them or prevent collapse
• Temporary slope stabilization
• Mold remediation
• Removal and storage of contents from eligible facilities for the purpose of minimizing additional damage
• Extracting water and clearing mud, silt, or other accumulated debris from eligible facilities if the work is conducted expeditiously for the purpose of addressing an immediate threat (if the work is only necessary to restore the facility, it is Permanent Work, not Emergency Work)
• Taking actions to save the lives of animals that are eligible for replacement

This list is not all-inclusive.

Emergency Protective Measures on Private Property

The Applicant must include the following support documentation with the claim for the work to be eligible:

• A detailed explanation documenting the Applicant's legal authority and responsibility to enter private property
• The basis for the determination that a threat exists to the general public in that community
• Copies of the rights-of-entry and agreements to indemnify and hold harmless the Federal Government

If the above criteria are not met, the private property owner may be eligible for assistance under FEMA's Individual Assistance Programs. FEMA staff will coordinate to ensure the same work is not funded by both programs.

Emergency services are usually the responsibility of State, Local, Tribal, or Territorial governments. Therefore, private nonprofits are generally not legally responsible for emergency services and FEMA does not provide Public Assistance funding to private nonprofits for the costs associated with providing those services.

When a private nonprofit provides emergency services at the request of and is certified by the legally responsible government entity, FEMA provides Public Assistance funding through that government entity as the eligible Applicant. These services include:

• Fire and rescue activities
• Animal control
• Emergency ambulance service for evacuation
• 911 call services, if tracked and related to eligible work
• Other similarly urgent governmental services

Eligible Emergency Protective Measures for private nonprofits are generally limited to activities that prevent damage to an eligible facility and its contents.

Medical or Custodial Care

Private nonprofits that own or operate a medical or custodial care facility are eligible for direct reimbursement of costs related to patient evacuation. In limited circumstances, FEMA may also reimburse a private nonprofit directly when essential components of a facility are urgently needed to save lives or protect health and safety, such as an emergency room of a private nonprofit hospital or a private nonprofit sewage or water treatment plant.

Volunteer Fire Departments

A State, Territorial, Tribal, or Local government through an established agreement, may designate the private nonprofit volunteer fire department as an official recognized entity legally authorized to provide emergency services in specifically designated areas of coverage. FEMA may reimburse the volunteer fire department directly as an eligible Applicant.

Common Emergency Protective Measure 1

Costs related to pre-positioning resources specifically for the declared incident are eligible if the resources are used in the performance of eligible Emergency Work.

Pre-positioning resources for the purpose of evacuating, or providing emergency medical care during the evacuation period (such as ambulances and busses), is eligible even if those resources are not ultimately used, provided the staging of those resources was necessary and prudent based on the data at the time of staging.

Common Emergency Protective Measure 2

The Applicant may incur additional costs related to operating a facility as a result of the incident because of an increased demand for the services the facility provides.

These additional costs are only eligible if:

• The services are specifically related to eligible emergency actions to save lives or protect public health and safety or improve property
• The costs are for a limited period of time based on the exigency of the circumstances
• The Applicant tracks and documents the additional costs

Potentially eligible increased operating costs include, but are not limited to, costs for:

• Generators at a hospital or police station
• Water testing and treatment supplies in the immediate aftermath of the incident to counter a specific threat
• Fuel for increased use of a pumping station
• Emergency Operations Center facility costs (e.g., utilities)

Ineligible operating costs include, but are not limited to:

• Patient care
• Administrative activities
• Provision of food
• Obtaining electrical power from an alternate source
• Obtaining water from an alternate source
• School make-up days, including contracted costs for bus service for make-up days
• Provision of fuel for school bus service

See the Public Assistance Program and Policy Guide for exceptions to ineligible operating costs.

Common Emergency Protective Measure 4

Flood fighting activities are eligible if necessary to reduce an immediate threat to life, public health and safety, or improved property.

• These activities are eligible even if they are associated with a facility that is eligible for the U.S. Army Corps of Engineers Rehabilitation and Inspection Program, as U.S. Army Corps of Engineers cannot reimburse Applicants for flood fighting
• These activities are not eligible if associated with flood control works under the specific authority of Natural Resources Conservation Service

Flood fighting activities may include, but are not limited to:

• Sandbagging
• Dewatering behind a levee by breaching or pumping
• Increasing the height of a levee

The repair of deliberate breaches made by the Applicant to accomplish dewatering is eligible as part of the Emergency Work project.

• Dewatering agricultural and natural areas behind levees and other water control structures is not eligible

Common Emergency Protective Measure 6

If the extent of damage makes access routes to an essential community service or to a community with survivors inaccessible, work related to providing access may be eligible.

• Eligible work is limited to that necessary for the access to remain passable

Removal of debris from a privately-owned facility, including those within gated communities, is eligible only when all of the following conditions are met:

• There is no other access point
• Debris impedes emergency access
• The Applicant completes all legal processes and obtains rights-of-entry and agreements to indemnify and hold harmless the Federal Government
• Work is performed by an eligible Applicant with legal authority to perform the work

• There is no other access point
• Repair of the damage economically eliminates the need for temporary housing
• The Applicant completes all legal processes and obtains rights-of-entry and agreements to indemnify and hold harmless the Federal Government
• Work is performed by an eligible Applicant with legal authority to perform the work

Common Emergency Protective Measure 7

The purchase of supplies and commodities required for emergency protective measures is eligible.

• Costs related to the Applicant purchasing supplies or using their own stock to perform Emergency Work for their own facility are eligible.
• E.g., safety equipment, personal protective equipment, radios
• Purchasing and packaging life-saving and life-sustaining commodities and providing them to the impacted community are eligible.
• E.g., food, water, ice, personal hygiene items
• The cost of delivering the life-saving and life-sustaining commodities to unsheltered residents where these commodities aren't easily accessible to purchase is eligible
• The cost of leasing distribution and storage space for the commodities is eligible

Common Emergency Protective Measure 9

When the emergency medical delivery system within a declared area is destroyed, severely compromised, or overwhelmed, FEMA may fund extraordinary costs associated with operating emergency rooms and with providing temporary facilities for emergency medical care of survivors.

• Costs are eligible for up to 30 days from the declaration date unless extended by FEMA

Eligible medical care may include, but is not limited to:

• Triage and medically necessary tests and diagnosis
• Treatment, stabilization, and monitoring
• First-aid assessment and provision of first aid
• A one-time 30-day supply of prescriptions for acute conditions or to replace maintenance prescriptions
• Durable medical equipment
• Leased or purchased equipment for use in temporary medical care facilities
• Facilities

Ineligible medical costs include:

• Long-term medical treatment
• Medical care costs incurred once a survivor is admitted to a medical facility on an inpatient basis
• Administrative costs associated with the treatment of survivors

Common Emergency Protective Measure 12

Mosquito abatement measures may be eligible when a State, Territorial, Tribal, or Local government public health official validates in writing that a mosquito population poses a specific health threat.

FEMA consults with the U.S. Department of Health and Human Services Centers for Disease Control and Prevention to determine the eligibility of mosquito abatement activities. FEMA only provides Public Assistance funding for the increased cost of mosquito abatement. This is the amount that exceeds the average amount based on the last 3 years of expenses for the same period.

Common Emergency Protective Measure 14

Post-incident safety inspections for public and private facilities are eligible, as well as posting appropriate placards (e.g., "red-tagging" a building that is unsafe).

The specific purpose of the inspection must be to determine whether the facility is safe for entry, occupancy, and lawful use.

The Applicant must clearly substantiate that the purpose of the inspection was for safety and not to assess damage. Building inspections are not eligible if the purpose of the inspection is to:

• Determine whether the building is Substantially Damaged for the purpose of compliance with the community's floodplain management ordinance
• Determine whether the building needs to be elevated or relocated, in accordance with the community's floodplain management ordinance
• Ensure that repairs are completed in accordance with the community's building code or standard

Removal and disposal of animal carcasses, including interim processing, is eligible. If the removal and disposal is conducted as part of the overall debris removal operations, the work may be funded as Category A.

FEMA may require certification from the State, Local, Tribal, or Territorial government health department, U.S. Department of Health and Human Services, or the U.S. Department of Agriculture that a threat to public health and safety exists.

• When few in number, smaller animal carcasses (e.g., rodents, skunks, or possums) do not usually pose an immediate threat to public health or safety. Removal and disposal of these carcasses are not eligible.

FEMA does not provide Public Assistance funding when another Federal agency has authority to provide assistance for carcass removal and disposal.

• Natural Resources Conservation Service has authority to remove animal carcasses and to provide technical assistance to the Applicant under its Emergency Watershed Protection Program.
• The U.S. Department of Agriculture's Farm Service Agency may provide assistance for farmland debris cleanup.
• The Public Assistance and U.S. Coast Guard have authority to provide technical assistance and to remove animal carcasses contaminated with oil, hazardous substances, pollutants, or contaminants.

Common Emergency Protective Measure 16

If the applicant provides essential community services at a facility that is unsafe, inaccessible, or destroyed as a result of the incident, temporary relocation of these service to another facility is eligible.

• Essential community services are those services of a governmental nature that are necessary to save lives, protect property and the public, and preserve the proper function and health of the community at large.
• The regulatory time limitation for temporary facilities is six months from the declaration date

Eligible temporary relocation of essential services includes, but are not limited to:

• Essential community services provided by a State, Territorial, Tribal, or Local government Applicant are eligible
• E.g., Police, Fire protection, Emergency services, Medical care
• Essential community services provided by private nonprofit Applicant are eligible (provided they own and operate the facility)
• E.g., Alcohol and drug rehabilitation, child care, fire protection and emergency services

• Lease, purchase, or construction of a temporary space
• Construction of safe room for temporary school facilities
• This is only eligible if the permanent facility had one as well
• Relocation work and costs

Common Emergency Protective Measure 17

If a natural or engineered beach has eroded to a point where a 5-year flood could damage improved property, cost-effective emergency protective measures on the beach that protect against damage from that flood are eligible.

Eligible measures typically include the construction of emergency sand berms to protect against additional damage from a 5-year flood. The Applicant may construct emergency berms with sand recovered from the beach or with imported sand. If the Applicant constructs the berm with imported sand, FEMA will only provide Public Assistance funding if the sand is from a source that meets applicable environmental regulations and one of the following circumstances exists:

• Recoverable quantities are insufficient
• State, Territorial, Tribal, or Local government regulations prohibit placement of the recovered sand

Based on the average expected erosion for a 5-year flood, FEMA only provides Public Assistance funding for emergency berms constructed with up to 6 cubic yards per linear foot of sand above the 5-year stillwater elevation or the berm's pre-storm profile, whichever is less. In some cases, placing sand below the 5-year stillwater elevation may be necessary to provide a base for the berm. The placement of that sand is eligible as part of the emergency protective measure.

Common Emergency Protective Measure 18

Temporary emergency repair or stabilization of an eligible facility is eligible as Emergency Work if it eliminates or lessens an immediate threat.

• Work performed under an exigent circumstance that restores the pre-disaster design and function of the facility in accordance with codes and standards is Permanent Work, not Emergency Work

Temporary emergency repair of a facility is not eligible if another Federal agency has the specific authority to provide assistance for the facility, such as for:

• Federal-Aid highways - Federal Highway Administration
• Flood control works - U.S. Army Corps of Engineers and Natural Resources Conservation Service

For Tribal Governments specifically, although the Bureau of Indian Affairs or Federal Highway Administration may have authority to provide temporary emergency repair of Tribal roads, such roads may be eligible for Public Assistance funding, provided the Tribal Government does not receive funding from Bureau of Indian Affairs or Federal Highway Administration for the work.

Common Emergency Protective Measure 19

If a landslide or other slope instability is triggered by the incident and poses an immediate threat to life, public health and safety, or improved public or private property, emergency protective measures to stabilize the slope may be eligible.

• FEMA only provides Public Assistance funding for the least costly option necessary to alleviate the threat.
• FEMA limits eligible stabilization measures to the area of the immediate threat, not the entire slope

Eligible emergency protective measures include, but are not limited to:

• Temporary drainage measures
• Temporary ground protection to better stabilize the mass (rip rap, sheeting)
• Partial excavation at the head of a sliding mass to reduce its driving force
• Backfilling or buttressing at the toe of a sliding mass using measures such as gabions, rock toes, cribwalls, binwalls, and soldier pile walls
• Installation of barriers to redirect debris flow

Common Emergency Protective Measure 21

FEMA provides limited Public Assistance funding for snow-related activities when the President declares an incident as a snowstorm or specifically authorizes snow assistance in a declaration for a severe winter storm.

Snow-related activities are only eligible emergency protective measures when a winter storm event results in record or near-record snowfall. Snow assistance is authorized by county based on the finding that the county received record or near-record snowfall or meets the contiguous county criteria.

Snow-related activities that may be eligible include:

• Limited-time activities (for limited time as discussed above):
• Snow removal
• Snow dumps
• De-icing
• Salting
• Sanding of roads and other eligible facilities
• Other emergency protective measures (not restricted to the limited time), including but not limited to, search and rescue and sheltering

Permanent Work to restore roads and bridges is eligible unless restoration is under the specific authority of another Federal Agency such as Federal Highway Administration. Work to repair scour or erosion damage to a channel or stream bank is eligible if the repair is necessary to restore the structural integrity. Earthwork in a channel or stream embankment that is not related to restoring the structural integrity of an eligible facility is not eligible.

For Tribal Governments specifically, although Bureau of Indian Affairs or Federal Highway Administration may have authority to provide permanent restoration of public Tribal roads, such roads may be eligible for Public Assistance funding provided the Tribal Government does not receive funding from Bureau of Indian Affairs or Federal Highway Administration for the same work.

Private roads, including homeowners' association roads, are not eligible. However, roads owned by a Tribal Government may be eligible even if they are not open to the general public.

The incident may cause minor damage to roads that result in damage similar to that which may occur over time from other causes, such as the age of the road, traffic flow, and frequent rain. Therefore, distinguishing between pre-existing damage and damage caused by the incident is often difficult. For the repair of this type of damage to be eligible, the Applicant must demonstrate that the damage was directly caused by the incident.

When evaluating eligibility of reported road damage, in addition to evaluating how the incident caused the damage, FEMA reviews maintenance records or documentation establishing that the Applicant has a routine maintenance program. In the absence of maintenance records, FEMA reviews material purchase invoices and activity logs and inspects other sections of the Applicant’s road system to confirm the performance of normal maintenance activities.

Normal maintenance is not eligible. Work to repair potholes or fatigue cracking is generally ineligible as this type of damage is rarely caused directly by one incident.

Restoring the pre-disaster carrying or storage capacity of engineered channels, debris and sediment basins, storm water detention and retention basins, and reservoirs may be eligible, but only if the Applicant provides documentation to establish:

• The pre-disaster capacity of the facility; and
• That the Applicant maintains the facility on a regular schedule

If the Applicant chooses to remove non-incident-related material along with that deposited as a result of the incident, the project is considered an Improved Project.

Flood Control Works:

Flood control works are those structures such as levees, flood walls, flood control channels, and water control structures designed and constructed to have appreciable effects in preventing damage by irregular and unusual rises in water levels.

Generally, flood control works are under the authority of U.S. Army Corps of Engineers or Natural Resources Conservation Service and restoration of damaged flood control works under the authority of another Federal agency is not eligible.

Secondary levees riverward of a primary levee are ineligible, unless the secondary levee protects human life.

Buildings, including:

• All structural and non-structural components, including mechanical, electrical, and plumbing systems
• Contents and equipment within the building
• Furnishings

Equipment includes:

• Vehicles
• Construction equipment

Repair or replacement of buildings and equipment is eligible.

Category E also covers:

• Equipment and supplies
• Files
• Research-related contents
• Animals
• Irreplaceable collections and individual objects
• Library books and publications

FEMA 352 – Recommended Post Earthquake Evaluation and Repair Criteria for Welded Steel Moment-Frame Buildings: FEMA has specific eligibility criteria for evaluating and repairing earthquake damage to buildings constructed with welded steel moment frames. FEMA bases the eligibility criteria on Recommended Post Earthquake Evaluation and Repair Criteria for Welded Steel Moment Frame Buildings.

The repair of the damaged frame connections to pre-earthquake design in accordance with FEMA 352, Chapter 6, is eligible, but only if FEMA approves a specific statement of work for the repairs prior to the Applicant performing the work. Repair of the architectural finishes and fire retardants removed in the area of the damage are also eligible.

See the Public Assistance Program and Policy Guide for Recommended Post Earthquake Evaluation and Repair Criteria for Welded Steel Moment Frame Buildings (FEMA 352).

Repairing damaged-or replacing destroyed-equipment and supplies with the same number of equivalent items is eligible.

Equivalent items are similar in age, condition, and capacity.

The Applicant may replace equipment or supplies with different items used for the same general purpose. However, FEMA caps the eligible cost at the estimated amount for items equivalent to those damaged.

When equipment is not repairable, FEMA uses "blue book" or market values or similar price guides to estimate the eligible cost.

Files:

Eligible activities associated with the recovery of files include, but are not limited to:

• Recovery of damaged hard copies
• Stabilizing the damaged hard copies
• Sanitizing damaged hard copies
• Photocopying or scanning damaged hard copies to re-establish files
• Recovering data from water-damaged computer hard drives

Recovery of damaged hard copies includes labor and materials, such as bags, boxes, and containers. Stabilizing damaged hard copies includes freeze-drying. Photocopying or scanning includes labor and materials such as new folders and paper.

Not all activities are eligible. Examples of ineligible activities include:

• Establishing new information databases
• Manually entering data that was lost in damaged computers
• Scanning re-established hardcopy files into computers to create digital files
• Deciphering photocopies of damaged hard copies

Reagents and specimen collections are eligible for replacement based on the following criteria.

The number of units of each reagent eligible for replacement is equal to the number actually lost OR to the number necessary to restore basic research activity, whichever is less.

FEMA reimburses the purchase price from commercial sources or other institutions, whichever is less. The replacement of reagents that are so unique that they are considered an outcome of a research program is not eligible.

Replacing a representative, but not necessarily a whole portion, of a specimen collection may be eligible. To be eligible for replacement, the specimen types should be available for purchase from commercial sources or other institutions and support an ongoing eligible educational or medical program.

Stabilization of damaged collections or individual objects is eligible. Stabilization is a series of treatment measures to maintain the integrity of a collection or object and to minimize deterioration. Stabilization involves taking the minimum steps necessary to return a collection or object to a condition in which it can function in the same capacity as it did prior to the incident. This includes:

• Treating damaged items through proper environmental controls, such as temperature and humidity
• Chemical or mechanical cleaning to stabilize items to prolong their existence, maintain their integrity, and minimize further deterioration from the damaging effects of the incident

Restoring materials, equipment, and exhibition furnishings associated with the storage, display, preservation, or exhibition of collections and individual objects is also eligible. These may include, but are not limited to:

• Equipment regulating temperature or humidity
• Exhibit panels
• Models
• Video and audio equipment

Utilities include:

• Water storage facilities, treatment plants, and delivery systems
• Power generation, transmission, and distribution facilities, including, but not limited to, wind turbines, generators, substations, and power lines
• Natural gas transmission and distribution facilities
• Sewage collection systems and treatment plants
• Communication systems

Right-of-Way Clearance:

The Applicant may need to clear its rights-of-way to obtain access to repair a utility. It is the Applicant's responsibility to maintain its rights-of-way. FEMA may fund limited clearance of disaster-related debris from the rights-of-way to enable access to the facility.

Additionally, if trees in the vicinity of the facility were damaged by the incident and an arborist confirms that the trees cause an immediate threat of further damage to the facility (e.g., overhead power lines), FEMA may provide Public Assistance funding to remove those trees. Any further clearance of debris in the rights-of-way is not eligible for FEMA funding.

A conductor is only eligible for replacement when the Applicant cannot effectively repair it because one of the following applies:

• Twenty-five percent or more of the conductor spans have visible damage, such as broken strands, splices, or sleeves or severe pitting, burns, or kinks
• Thirty percent or more of the line spans are visually stretched or do not meet clearance requirements such as conductor-to-conductor or conductor-to ground clearance
• Forty percent or more of the supporting poles need to be replaced or plumbed. A pole is considered to be in need of straightening if it is leaning such that it is unsafe to climb.
• Forty percent or more of the supporting structures have damage such as broken cross-arms, braces, ties, insulators, guys, pulled anchors, or bent pins. If more than one element of the support structure is damaged, it still only counts as one damaged support structure. If a pole is counted under the previous bullet, FEMA does not count the supporting structure under this criterion
• Sixty-five percent or more of any combination of the damage described in the bullets
• Evidence provided by a licensed Professional Engineer that demonstrates the conductor is damaged beyond repair

If an eligible facility is located on a slope and is damaged as a result of a landslide or slope instability triggered by the incident, FEMA determines the stability of the slope that supports the facility before it approves Public Assistance funding to restore the facility. Restoration of the integral ground that supports the facility may also be eligible. The impact of slope stability on eligibility is as follows:

• If the site is stable, permanent restoration of the facility and its integral ground is eligible
• If the site is unstable and there is no evidence of pre-disaster instability after the facility was constructed, permanent restoration of the facility and its integral ground is eligible, including measures to stabilize the integral ground
• If the site is unstable and there is evidence of pre-disaster instability after the facility was constructed, restoration of the facility's integral ground is not eligible. Restoration of the facility is eligible only upon the Applicant stabilizing the site and restoring the integral ground.

The Applicant needs to make every effort to afford FEMA the opportunity to perform environmental and historic preservation reviews prior to the start of construction for any Permanent Work project. Proceeding with Permanent Work before FEMA completes environmental and historic preservation reviews jeopardizes Public Assistance funding.

Permanent Work projects that restore a damaged facility essentially to pre-disaster design are excluded from National Environmental Policy Act review through a statutory exclusion. All other projects require National Environmental Policy Act. Many qualify for one of the Categorical Exclusions, which are actions that typically have little or no impact on the environment.

Applicants that receive Public Assistance funding for Permanent Work to replace, repair, reconstruct, or construct a facility must obtain and maintain insurance to protect the facility against future loss. This requirement applies to insurable facilities or property (buildings, contents, equipment, and vehicles). FP 206-086-1, Public Assistance Policy on Insurance, describes these requirements in detail.

The Applicant must insure facilities with the types and extent of insurance reasonably available, adequate, and necessary to protect against future loss to the property. The type of insurance refers to the hazard(s) that caused the damage and extent refers to the amount of insurance required, which is calculated based on the eligible costs prior to any reductions (including the non-Federal share reduction).

Select this link to access the

FEMA FP 206-086-1 Public Assistance Policy on Insurance

 .

The Applicant is not required to obtain and maintain insurance on facilities with less than $5,000 in eligible costs (prior to any reductions).

The Applicant may request that FEMA modify the insurance requirement when:

• The required insurance is not reasonably available;
• An alternative to the insurance requirement provides adequate protection against future loss to the property; or
• The required insurance is not necessary to protect against future loss to the property

If the Applicant does not maintain the required insurance from a previous disaster, then the facility is not eligible for Public Assistance funding in a subsequent disaster, regardless of the hazard(s) that caused the damage.

When the Applicant receives Public Assistance funding for a facility damaged by the same hazard in a subsequent disaster, FEMA reduces funding in this subsequent disaster by the amount of insurance required from the previous disaster.

FEMA understands that the insurance industry usually applies a certain amount of self retained risk on an insurance policy in the form of a deductible. If the subsequent event damages are less than the previous obtain and maintain requirement, FEMA will not fund this deductible for the subsequent event.

If FEMA or the State Insurance Commissioner certification modified the Applicant's insurance requirement, FEMA reduces funding by the modified insurance amount. If the Applicant's anticipated or actual insurance proceeds are higher than the amount of insurance required in the previous disaster, FEMA reduces funding by the anticipated or actual amount of insurance proceeds to avoid a duplication of benefits.

FEMA provides Public Assistance funding to restore facilities on the basis of pre-disaster design and function in conformity with current applicable codes, specifications, and standards.

Facility repairs and new construction may "trigger" upgrade requirements established by codes or standards. Upgrades required by Federal, State, Territorial, Tribal, or Local repair or replacement codes or standards are eligible only if the code or standard:

• Applies to the type of restoration required;
• Is appropriate to the pre-disaster use of the facility;
• Is reasonable, in writing, formally adopted by the State, Territorial, Tribal, or Local government, and implemented by the Applicant on or before the declaration date, OR is a legal Federal requirement;
• Applies uniformly; and
• Was enforced during the time it was in effect.

If the building is eligible for repair, replacement, or is being constructed as an improved or alternate project, FEMA generally requires that the Applicant incorporate the natural hazard-resistant codes and standards and related provisions referenced in the most recent published edition of the International Code Council's International Building Code, International Existing Building Code, or International Residential Code into the building design and construction.

This includes natural hazard-resistant provisions, such as tornado, wind, seismic, and flood as identified in the International Building Code, International Existing Building Code, or International Residential Code regardless of the type of incident that caused the damage. In accordance with these codes and standards, the Risk Category of the eligible building determines the applicable tornado, wind, seismic, flood, snow, ice, and rain loads.

Generally, the International Building Code, International Existing Building Code, or International Residential Code apply when a building:

• Is substantially damaged;
• Suffered substantial structural damage; or
• Is eligible for replacement

The determination of whether a code and standard is triggered may be made by:

• A building official or inspector;
• The Applicant's registered design professional; or
• Other appropriate and qualified individual.

• In areas where tornado shelter design wind speeds are 250 mph or greater, the Applicant must incorporate a storm shelter or safe room (designed to International Code Council 500 standards) for elementary and secondary schools with an occupant load of 50 or more, Emergency Operations Center, 911 call stations, fire stations, rescue stations, ambulance stations, and police stations.
  
  
• For wind-resistant requirements, the Applicant must incorporate applicable wind-resistant design and construction standards contained in the International Building Code, International Existing Building Code or International Residential Code and its referenced standards [e.g., American Society of Civil Engineers/Structural Engineering Institute.
  
  
• For seismic-resistant requirements, the Applicant must incorporate applicable seismic-resistant design and construction standards contained in the International Building Code, International Existing Building Code or International Residential Code and its referenced standards (e.g., American Society of Civil Engineers).
  
  
• For flood-resistant requirements, the Applicant must incorporate applicable flood-resistant design and construction standards contained in the International Building Code, International Existing Building Code or International Residential Code and its referenced standards (e.g., American Society of Civil Engineers).

Upgrades recommended by design standards, guidelines, policies, industry practices, or other non-mandatory provisions are not eligible if the provisions do not meet all of the codes, standards, and eligibility criteria previously discussed in this module.

Upgrades that are deemed ineligible but enhance a facility's ability to resist similar damage in a future incident, may be eligible as hazard mitigation. Even though a upgrades are deemed ineligible, an Applicant may request approval for an Improved Project.

If the facility is listed in, or meets the criteria to be listed in, the National Register of Historic Places, and an applicable code or standard requires repair in a certain manner, costs associated with work to comply with that code or standard are eligible, even if repair costs exceed replacement costs. This is an exception to the regulatory requirement that when a facility is eligible for replacement, FEMA limits eligible costs to the less expensive of repairs or replacement.

If a State, Territorial, or Tribal historic building codes and standards requires specific work to be completed, FEMA evaluates the codes and standards using the standard eligibility criteria. Most State historic building codes and standards encourage code officials to allow less intrusive alternatives to requirements of the prevailing codes and standards, but do not require any particular work to be completed. As a result, the codes and standards usually fail to meet the eligibility criteria.

Similarly, if the structure houses critical actions and is in the 500-year floodplain, the Applicant must elevate the lowest floor (including the basement) to or above the 500-year flood level. Again, if the structure is non-residential, the Applicant may opt to floodproof to the required level instead of elevating.

Further, if the structure is in a Coastal High Hazard Area, the Applicant must elevate the facility to the base flood elevation (the 500-year level for critical actions) (including wave height) on open works (walls columns, piers, piles, etc.) and anchor it properly.

A community that participates in the National Flood Insurance Program must adopt and enforce a floodplain management ordinance that meets or exceeds the minimum National Flood Insurance Program requirements.

The ordinance must contain construction requirements for new construction or substantial improvement of buildings located in a Special Flood Hazard Area. In addition to other requirements, the ordinance must require that new or substantially improved buildings be elevated so the lowest floor is at or above the base flood elevation or floodproofed to a level equal to or above the base flood elevation (some communities have more restrictive ordinances that require elevation or floodproofing to greater levels).

Work required for compliance with the floodplain ordinance is eligible provided the ordinance meets the eligibility criteria for codes and standards and the substantial improvements are disaster-related repairs. If the cost to repair a facility in accordance with the floodplain ordinance is greater than the cost to replace the facility in accordance with the ordinance, the eligible cost is capped at the replacement cost.

When a facility is eligible for replacement, FEMA provides Public Assistance funding for compliance with reasonable accessibility requirements triggered by Americans with Disabilities Act in newly constructed facilities. FEMA provides Public Assistance funding regardless of whether the facility was in compliance prior to the incident, provided the Applicant was not cited for an Americans with Disabilities Act violation.

A new facility is not required to be fully compliant with Americans with Disabilities Act if the Applicant can demonstrate that it is structurally impractical to meet the requirements.

For some private nonprofits, exceptions are available for installation of elevators in small buildings less than three stories or less than 3,000 square feet per story. These exceptions do not apply to any publicly owned or operated facility.

For Americans with Disabilities Act-relevant repairs, FEMA provides Public Assistance funding for required Americans with Disabilities Act upgrades that have a reasonable and technically supportable relationship to the damaged elements of the facility.

In addition, when disaster-related and Americans with Disabilities Act-relevant repairs are made to a primary function area of the facility, FEMA provides Public Assistance funding to make the path of travel to the primary function area accessible to the maximum extent feasible, including facilities that serve the primary function area.

Examples of facilities that serve the primary function area include restrooms, telephones, drinking fountains, pathways, and similar service facilities. Pathways include internal and external paths of travel, such as hallways, sidewalks, and parking lots.

When 20 percent is not adequate to meet Americans with Disabilities Act-accessible path-of-travel and service facility requirements, the Applicant must apply Americans with Disabilities Act access requirements to the maximum extent possible with the limited funds. The Applicant should make limited changes in the following order of priority:

• Accessible entrance
• Accessible route to the altered area
• At least one accessible restroom for each sex or single unisex restroom
• Phones
• Drinking fountain
• Other elements such as parking, storage, and alarms

If a Federal, State, Territorial, Tribal, or Local government permitting agency requires additional work based on codes and standards that do not meet the standard eligibility criteria for Permanent Work, the cost of the additional work is only eligible if the work:

• Does not change the pre-disaster size, capacity, or function of the facility;
• Applies to the type of repair or restoration required;
• Is reasonable based on the type and extent of damage; and
• Is an established, enforced, uniform practice that applies to all similar types of facilities within the Applicant's jurisdiction, regardless of the circumstance.

Hazard mitigation is any sustained action taken to reduce or eliminate long-term risk to people and property from natural hazards and their effects. FEMA has authority to provide Public Assistance funding for cost-effective hazard mitigation measures for facilities damaged by the incident.

In addition to providing funding for hazard mitigation under the Public Assistance Program, FEMA also provides hazard mitigation funding under its Hazard Mitigation Assistance programs, authorized under Sections 404 and 406 of the Robert T. Stafford Act. FEMA's Federal Insurance and Mitigation Administration administers the Hazard Mitigation Assistance programs, which are briefly described in Figure 15 of the Public Assistance Program and Policy Guide.

The eligibility criteria, procedures, and timelines for implementation of the hazard mitigation measures funded under the Hazard Mitigation Assistance programs differ from the hazard mitigation measures funded under the Public Assistance Program.

The Applicant may use both 406 and 404 mitigation funds to implement mitigation measures on the same facility, but not for the same work. The Applicant cannot use funds from one of these mitigation programs to meet the non-Federal cost share of work funded under the other mitigation program.

FEMA evaluates proposed mitigation measures for cost-effectiveness, technical feasibility, and compliance with environmental and historic preservation laws, regulations, and executive orders.

FEMA considers mitigation measures to be cost-effective if any of the following criteria are met:

• The cost for the mitigation measure does not exceed 15 percent of the total eligible repair cost (prior to any insurance reductions) of the facility or facilities for which the mitigation measure applies
• The mitigation measure is specifically listed in Appendix J: Cost-Effective Hazard Mitigation Measures, and the cost of the mitigation measure does not exceed 100 percent of the eligible repair cost of the facility or facilities for which the mitigation measure applies
• The Recipient or Applicant demonstrates through an acceptable benefit-cost analysis methodology that the measure is cost-effective

When evaluating whether a damaged facility is eligible for replacement, FEMA compares the repair cost with the replacement cost and evaluates the feasibility of repairing the facility.

A facility is considered repairable when:

• The cost to repair the disaster-related damage does not exceed 50 percent of the cost to replace the facility based on its pre-disaster size, capacity, and function; and
• It is feasible to repair the facility so that it can perform the pre-disaster function as well as it did prior to the incident

The comparison of the repair cost to the replacement cost results in a fraction that expresses repair as a percentage of replacement. The percentage is calculated with the repair cost as the numerator and the replacement costs as the denominator. FEMA refers to this calculation as the "50% Rule."

The repair cost (numerator) is the cost of repairing disaster-related damage only and includes costs related to compliance with codes and standards that apply to the repair of the damaged elements only (including federally required codes and standards). The numerator does not include costs associated with:

• Upgrades of non-damaged elements even if required by codes or standards (e.g., elevation of an entire facility triggered by repair)
• Demolition beyond that which is essential to repair the damaged elements
• Site work
• Soft costs
• Contents
• Hazard mitigation measures
• Emergency Work

The replacement cost (denominator) is the cost of replacing the facility on the basis of its pre-disaster design (size and capacity) and function in accordance with applicable codes or standards. The denominator does not include costs associated with:

• Demolition
• Site work
• Soft costs
• Contents
• Hazard mitigation measures
• Emergency Work

Although certain costs are not included in the 50% Rule calculation to determine whether the facility is eligible for replacement, the costs may be eligible for Public Assistance funding subject to all other eligibility requirements.

If the estimated repair cost exceeds 50 percent of the estimated replacement cost, the actual replacement cost is eligible. The Applicant may elect to repair the facility in conformance with applicable codes and standards. In this case, FEMA limits the eligible cost to the estimated cost of repair or replacement, whichever is lower.

If the repair cost does not exceed 50 percent of the replacement cost, AND upgrades to undamaged elements are triggered by codes and standards, AND the total of both is greater than 100 percent of the estimated replacement cost, FEMA caps the total eligible cost at the estimated replacement cost.

Demolition of a facility that is eligible for replacement is eligible as part of the work to replace the facility. Eligible costs include removal of the associated demolition debris.

If applicable codes and standards require that a historic facility be restored in a certain manner and do not allow other options, the cost to restore the facility in accordance with the codes and standards is eligible and may exceed the estimated replacement cost. A historic facility is defined as one listed in, or eligible for listing in, the National Register of Historic Places.

FEMA does not apply the 50% Rule to a facility's structural or mechanical components (e.g., windows, roofs, heating, ventilation, and air conditioning; electrical, plumbing). For example, FEMA does not apply the 50% Rule to a damaged heating, ventilation, and air conditioning system to determine whether the system should be repaired or replaced because it is a component of a building. As long as the heating, ventilation, and air conditioning system is repairable, as determined by an inspector or engineer with appropriate technical expertise, FEMA limits its funding to the repair of the system.

The following are examples of facilities that are systems to which FEMA applies the 50% Rule calculation to individual components:

• Drainage channel or irrigation system: a section from node to node
• Water or sewer line system: a section of piping from manhole to manhole, a lift station, or a manhole structure Water or wastewater treatment plant: a control building, clarifier, or sedimentation pond
• Roadway: each damaged roadway section

The following are examples of facilities to which FEMA applies the 50% Rule to the entire facility:

• Bridge
• Culvert
• Building
• Pumping station
• Pier
• Pool, including integral pumping
• Bath house or rest room
• Equipment
• Lighting structure
• Sign

FEMA may approve funding for and require restoration and relocation of an Applicant's destroyed (i.e., eligible for replacement) facility at a new location when all of the following conditions apply:

• The facility is subject to repetitive heavy damage because of its location. For example, facilities located in a Special Flood Hazard Area are subject to repetitive heavy damage;
• Project approval is not barred by other regulations; and
• The overall project, including all costs, is cost-effective
• If the cost to relocate the facility is less than the eligible cost to replace the facility at its original location then the project is cost effective
• In instances where the cost of relocation exceeds the cost to replace the facility at its original location FEMA may use its benefit-cost analysis process and software to determine cost effectiveness

An applicable Federal, State, or Local code or standard, such as a floodplain management regulation, may also require that a damaged facility be relocated away from a hazardous area (e.g. floodway). If the facility is destroyed (i.e. eligible for replacement) then FEMA determines whether relocation is cost-effective in the same manner as described above.

Eligible work associated with relocation includes land acquisition and construction of necessary support facilities, such as roads, parking lots, and utilities. Demolition and removal of the original facility are also eligible if deemed necessary. FEMA limits Public Assistance funding to the amount necessary to make the relocated facility and its associated components operational.

FEMA considers the proximity of the new site to utilities (water, sewer, and electric) and approves the least costly solution. Construction of an off-site support facility is only eligible if it is a utility that would serve the relocated facility exclusively.

For land acquisition, if the facility was located on 10 acres of land at the time of the incident, and FEMA determines that 10 acres is not necessary for the operation of the facility, FEMA limits Public Assistance funding to the necessary amount of land.

When FEMA requires relocation, FEMA does not provide future Public Assistance funding for repair or replacement of the original facility or for other facilities at the original site unless the facility facilitates an open space use.

The Applicant may sell or lease the original facility or the land on which a relocated facility was originally located. The Applicant must inform the purchaser of the property that FEMA will not provide future Public Assistance funding for repair or replacement of the original facility or for other facilities at the original site unless the facility facilitates an open space use.

If the Applicant takes an action, such as demolition, using Public Assistance funds at the original site, FEMA must complete an environmental and historic preservation review before the action occurs.

When FEMA provides Public Assistance funding for restoration of a facility located in or impacting a floodplain, FEMA is required to ensure minimization of harm to or within the floodplain.

FEMA is responsible for determining whether a Public Assistance project will have an adverse impact on the 100-year floodplain (500-year floodplain for critical actions). To make this determination, FEMA initiates the 8-Step Decision-making Process. As part of this process FEMA evaluates the impacts the project may have on the floodplain and practicable alternatives.

FEMA evaluates environmental, social, economic, technical, and legal factors. Some alternatives may not be eligible for Public Assistance funding. FEMA considers whether each alternative identified is eligible for Public Assistance funding and, if not, whether the Applicant has funding available to proceed with the alternative without Public Assistance funding.

Projects in the 100-year floodplain (500-year floodplain for critical actions) are only eligible if, as a result of completing the 8-step process, FEMA is unable to identify a practicable alternative to restoring the facility within the floodplain. The 8-step process is not required for projects where the repair cost is less than $5,000.

Special Flood Hazard Areas are areas that are subject to inundation during a 100-year flood (a flood having a 1 percent chance of occurrence in a given year).

National Flood Insurance Program:

For an National Flood Insurance Program-insurable facility located in a Special Flood Hazard Area, FEMA must reduce Public Assistance funding when the facility is:

• Located in an area that FEMA has identified as an Special Flood Hazard Area for more than 1 year
• Damaged by flooding
• Uninsured for flood loss

If the Applicant does not have flood insurance for the facility or carries inadequate flood insurance for the insurable facility, FEMA will reduce eligible project costs by the lesser of:

• The maximum amount of insurance proceeds that have been obtained from an National Flood Insurance Program standard flood insurance policy for the building and its contents; or
• The value of the building and its contents at the time of the incident.

FEMA provides three options that provide flexibility for the Applicant to use Public Assistance funding differently than restoring the pre-disaster design and function of the facility. For these options, FEMA caps the amount of Public Assistance funding based on the estimated amount to restore the damaged facility to its pre-disaster design and function, including current eligible codes and standards as defined in the Public Assistance Policy and Procedures Guide, Codes and Standards.

The three capped project options are:

• Improved Project
• The Applicant may wish to make improvements to a damaged facility that are not required by eligible codes or standards. A project that restores the pre-disaster function of a facility and incorporates improvements or changes to the pre-disaster design is an Improved Project
• Alternate Project
• The Applicant may determine that the public welfare is not best served by restoring the function of the damaged facility. When this occurs, the Applicant must obtain FEMA’s approval to apply PA funding toward a different facility (or facilities). FEMA refers to this as an Alternate Project. The Alternate Project must be a permanent project that benefits the general public, serving the same general area that was being served by the original facility.
• Alternative Procedures Project under Section 428 (Large Projects only)
• This type of project offers the maximum amount of flexibility with how the Applicant may use PA funding, including use of excess funds which are not eligible under the Improved or Alternate Project options. The Applicant may use funds across all Permanent Work Alternative Procedures Projects with no requirement to rebuild communities back to what existed prior to the disaster. Alternative Procedures Projects are subject to acceptance of a fixed-cost offer within the deadlines described in the Public Assistance Program and Policy Guide, Fixed Cost Offer Deadlines.

Capped projects may involve significant changes to the pre-disaster configuration of a facility (e.g., location, footprint, or size). FEMA conducts EHP compliance reviews on the actual proposed statement of work to be performed, prior to approving the project.

See the Public Assistance Program and Policy Guide for additional information regarding Fixed Cost Offer Deadlines.

For an Alternative Procedures Project with an estimated Federal share of at least $5 million, upon the Applicant's request, FEMA provides a FEMA-funded, independent validation of the cost estimate. The validation is conducted by an expert panel composed of design, engineering, construction, cost-estimating, and industry professionals retained by a contractor or another agency with which FEMA has established an agreement for the panel's services. FEMA also has discretion to direct estimates to the panel for review.

If the Applicant requests this validation, the panel:

• Conducts its review before the Applicant's acceptance and before FEMA's obligation of funds
  
• Limits its review to issues pertaining to the estimated cost (the panel will not make decisions related to the eligibility of the damage or statement of work); however, it may make determinations with regard to incorporation of cost elements relating to project execution that could affect the statement of work
  
• May review cost documentation for completed work, if applicable and necessary

If the estimated amount deemed appropriate by the expert panel is less than the Applicant’s estimated amount and the Applicant is unwilling to accept the capped amount, the Applicant may forgo the Alternative Procedures and request that FEMA process the project using standard procedures.

Improved Project:

For Improved Projects, the Applicant must obtain approval from the Recipient. If the Improved Project significantly changes the pre-disaster configuration of the facility, the Recipient must forward the request to FEMA to ensure that the Improved Project complies with appropriate environmental and historic preservation laws, regulations, and executive orders.

Alternate Project:

For Alternative Procedures Projects, FEMA, Recipient, and the Applicant must obtain approval from FEMA. If the Alternate Project involves construction, the Applicant must obtain FEMA approval prior to the start of construction.

Alternative Procedures Project:

For Alternative Procedures Projects, FEMA, the Recipient, and the Applicant must reach agreement on the capped amount within 12 months of the declaration date. Upon request from the Applicant, FEMA may approve a time extension on a project-by-project basis. The Applicant's request must include the circumstances that justify the extension and demonstrate progress on reaching an agreement. In complex or catastrophic incidents, upon request from the Recipient, FEMA may approve an extension for all Applicants.

Capped projects may involve significant changes to the pre-disaster configuration of a facility (e.g., location, footprint, or size). As with all projects, the Applicant needs to obtain FEMA approval prior to the start of construction so that FEMA can ensure that the project complies with appropriate environmental and historic preservation laws, regulations, and executive orders. If the Applicant starts construction prior to FEMA's completion of this review, it may jeopardize Public Assistance funding for the entire project.

Insurance:

FEMA will reduce the amount of the fixed estimate to account for insurance coverage based on:

• Actual insurance proceeds, if known; or
• Anticipated insurance proceeds based on the Applicant's insurance policy, if the amount of actual proceeds is unknown.

Upon completion of the project, FEMA adjusts the fixed estimate to account for actual insurance proceeds as described in the Public Assistance Program and Policy Guide.

Prior to work commencing, the Applicant must receive approval of a capped project. Once FEMA caps the funding, the type of capped project impacts the maximum Federal funding the Applicant can receive.

Improved Project Funding:

FEMA limits Federal funding for an Improved Project to the lesser of the following:

• The Federal share of the approved estimated cost to restore the damaged facility to its pre-disaster design and function; or
• The Federal share of the actual costs of completing the Improved Project.

FEMA only increases eligible funding for an Improved Project if the Applicant identifies an error or omission in the original statement of work or cost estimate related to restoring the facility to its pre-disaster design and function

Alternate Project Funding:

FEMA limits Federal funding for an Alternate Project to the lesser of:

• The Federal share of the approved estimate to restore the damaged facility to its pre-disaster design and function; or
• The Federal share of the actual cost of completing the Alternate Project

Alternative Procedures Project Funding Under Section 428:

FEMA caps Federal funding for an Alternative Procedures Project based on the aggregate Federal share of the approved estimated cost:

• To restore the damaged facilities to pre-disaster design and function in accordance with eligible codes and standards; and
• For cost-effective PA mitigation measures associated with the actual restoration statement of work that the Applicant will perform.
  

The Applicant may use Alternative Procedures Project funds toward an Alternate Project.

In this case, FEMA does not implement the reduction that is applied under the standard program (described in the preceding section). All other Alternate Project requirements under the standard Public Assistance Program apply to Alternative Procedures Alternate Projects, such as how the Applicant may or may not use the funds.

FEMA has different requirements for how the Applicant can use the funds related to each type of capped project.

Use of Improved Project Funds:

When restoring a damaged facility, the Applicant may decide to make improvements to the facility. A project that incorporates such improvements is an Improved Project. The improved facility must have the same function and at least the same pre-disaster capacity as the damaged facility. The following are examples of Improved Projects:

• Laying asphalt on a gravel road
• Replacing a firehouse that originally had two bays with a firehouse that has three bays
• Incorporating requirements dictated by codes and standards that do not meet Public Assistance eligibility criteria
• Relocating a facility when the relocation is not required by FEMA

The Applicant must obtain approval from the Recipient. If the Improved Project significantly changes the pre-disaster configuration of the facility, the Recipient must forward the request to FEMA to ensure that the Improved Project complies with appropriate EHP laws, regulations, and executive orders (EOs).

The Applicant can combine Public Assistance funds with funding from another Federal agency to construct the Improved Project. However, the Applicant cannot use funding from another Federal agency toward the non-Federal cost share of the Public Assistance-funded project, unless the legislation for the other grant allows such use.

An Applicant may determine that the public welfare is not best served by restoring the function of the damaged facility. When this occurs, the Applicant may request approval from FEMA to apply Public Assistance funding toward a different project(s). FEMA refers to this as an Alternate Project.

The Alternate Project must be a permanent project that benefits the general public, serving the same general area that was being served by the original facility. The Applicant may use Alternate Project funds to:

• Repair, expand, mitigate, or construct a facility that would otherwise be an eligible facility under the Public Assistance Program
• Demolish facilities
• Purchase capital equipment that has a useful life of at least 1 year and is equal to, or greater than, $5,000 per unit
• Fund project shortfalls due to mandatory flood insurance reductions taken from Public Assistance Program funding for repairs to buildings in Special Flood Hazard Areas
• Supplement funds for an Improved Project
• Conduct cost-effective hazard mitigation measures, regardless of whether the facility was damaged by the incident and whether the measures reduce the risk of future damage from the same type of incident or of the same type of damage caused by the incident

The Applicant may not use Alternate Project funds to:

• Meet budget shortfalls
• Create a new community plan
• Landscape
• Pay for operating expenses
• Purchase supplies, furniture, or equipment costing less than $5,000 per unit
• Pay the non-Federal share of any Public Assistance project
• Fund buyouts for mitigation, such as acquisition of flood-prone property to create open space
• Supplement funds on projects that utilize other Federal agency grants
• Fund a project located in a FEMA-designated floodway

When the Applicant agrees to a capped project under the Alternative Procedures, it may utilize any one or more of the following procedures:

• Consolidation of multiple capped projects
• Elimination of reduced funding for Alternate Projects
• Retention of excess funds for approved purposes
• Third-party expert panel review for estimates with a Federal share of $5 million or greater

The Applicant may use Alternative Procedures Project funds to restore the pre-disaster design and function of the facility or it may use the funds to complete a project with a different design and/or function. The Applicant may use the funds to:

• Construct new facilities
• Purchase equipment
• Conduct measures that reduce future risk

The Applicant may not use the funds for the following:

• Facilities or equipment that are not otherwise eligible for Public Assistance funding
• Meet the Local cost share for other Federal projects
• Pay down debts, cover budget shortfalls, or meet operating expenses
• Conduct planning and design that go beyond the work related to the project, such as community-wide planning

The Applicant may combine two or more capped projects into a single project, creating a Consolidated Project. FEMA caps funding for the Consolidated Project at the aggregate amount of the eligible costs for the formerly separate, individual, capped projects. The Applicant must consolidate each individual project in its entirety (i.e., all sites from the project).

The Applicant may consolidate projects regardless of the status of construction. It may consolidate projects with different categories of Permanent Work (e.g., by combining Category C and Category E projects) or consolidate within the same Category of Work (e.g., multiple school-campus locations).

The Applicant may share funding across any of the facilities or sites within the Consolidated Project to meet its post-disaster recovery needs.

The Applicant must notify FEMA of the projects to be consolidated and the final statement of Work to be Completed under the Consolidated Project within 12 months of the declaration date. Upon request from the Applicant, FEMA may approve a time extension for the Applicant to consolidate its capped projects. The Applicant's request must include the circumstances that justify the extension.

The Applicant must submit a proposed statement of work for use of any excess funds, along with a project timeline to the Recipient within 90 days of completing its last Alternative Procedures Project. The Recipient must forward the request to FEMA within 180 days of date the last Alternative Procedures Project was completed. FEMA evaluates the proposed use of excess funds for reasonableness to ensure prudent use of funds. FEMA also evaluates the submitted project timeline and approves an appropriate deadline for work completion, not to exceed the overall disaster period of performance..

The Applicant may use the excess funds for the following:

• Cost-effective hazard mitigation measures that will reduce the risk of damage in future incidents.
• The Applicant may use the funds for hazard mitigation on facilities not damaged in the incident, provided the facilities would otherwise be eligible for Public Assistance funding, and toward hazard mitigation activities on other Alternative Procedures Projects.
• Activities that improve future Public Assistance Program Permanent Work operations, such as training and planning for future disaster recovery operations.

Unacceptable uses of excess funds includes:

• Payment of debts
• Payment of the non-Federal share of Public Assistance projects or other Federal awards
• Operating expenses
• Cost overruns on other Public Assistance projects
• Incorporation into the community's General Fund
• Restoring a facility not damaged in the declared incident
• Restoring a facility that would not otherwise be eligible for Public Assistance funding obtain-and-maintain requirements for insurance apply to work funded with excess funds, as appropriate

If FEMA approves mitigation funds as part of the capped amount, FEMA's allowance for the Applicant to retain those funds depends upon the type of capped project and the statement of work being conducted.

Improved Project:

If the capped amount for an Improved Project includes Public Assistance mitigation funds and the Applicant either does not complete the Public Assistance mitigation work, or replaces or relocates the original facility, FEMA deobligates the Public Assistance mitigation funds.

Alternate Project:

If the statement of work to restore a facility includes Public Assistance mitigation, and the Applicant elects to proceed with an Alternate Project, FEMA does not include costs related to the Public Assistance mitigation in the capped amount for the Alternate Project.

Alternative Procedures Project:

When the Applicant is restoring the function, but changing the pre-disaster capacity of a facility, the proposed Public Assistance mitigation statement of work is developed based on the actual statement of work to be performed; however, the cost-effectiveness is evaluated based on the fixed-cost amount accepted for the pre-disaster restoration statement of work. If the capacity is increased, the proposed hazard mitigation statement of work and cost is limited to the statement of work and cost necessary to mitigate to the pre-disaster capacity of the damaged facility. If the Applicant does not complete the approved Public Assistance mitigation, FEMA deobligates the portion of the fixed-cost amount related to hazard mitigation.

If FEMA approves a capped project for a facility that has also been approved for temporary relocation of the services to a temporary facility, FEMA does not apply funds from the temporary facility toward the capped project.

Improved Project:

If FEMA approves an Improved Project for a facility for which it also approved temporary relocation of the services to a temporary facility, the temporary facility is only eligible for Public Assistance funding for the estimated amount of time necessary to restore the facility to its pre-disaster design and function.

Alternate Project:

If FEMA approves an Alternate Project for a facility for which it also approved temporary relocation of the services to a temporary facility, FEMA does not reimburse any temporary facility costs incurred after the date the Applicant requests that Alternate Project.

Alternative Procedures Project:

If FEMA approves an Alternative Procedures Project for a facility for which it also approved temporary relocation of the services to a temporary facility, continued Public Assistance funding for the temporary facility is dependent upon the statement of work of the Alternative Procedures Project.

For Alternate and Alternative Procedures Projects, if the Applicant does not repair, replace, or sell the damaged facility for which the capped project funding was based, and that facility is unsafe if not repaired, the Applicant must render the facility safe and secure or demolish it.

If the Applicant receives funds for salvaged components of the facility, FEMA adjusts the capped project by the value or anticipated fair market value of salvaged materials less the estimated costs necessary to demolish the facility, grade the site, or make the facility safe and secure.

For any action at the original site, such as demolition, that is completed using Public Assistance funds, FEMA must conduct an environmental and historic preservation review. However, if the Applicant completes the work at the original site using non-Public Assistance funds, a FEMA environmental and historic preservation review is not required.

If the Applicant opts to keep a damaged facility for a later use, the facility may be eligible for Public Assistance funding in future incidents, provided the Applicant repaired the facility in accordance with current codes and standards, and completed any mitigation measures that FEMA included in the original statement of work prior to the incident.

This lesson identified the requirements for work to be eligible for Public Assistance Program grants. Participants should be able to describe work eligibility and explain differences between Permanent Work and Emergency Work

This lesson provides an overview of cost eligibility requirements for Public Assistance grant funding.

Upon completion of this lesson, participants should be able to:

• Define cost eligibility.
• Identify labor, equipment, supplies, contracting, and administrative duties that meet eligibility requirements.
• Understand the application of procurement or contracting policies

A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the Applicant makes the decision to incur the cost.

The Applicant is responsible for providing documentation to demonstrate its claimed costs are reasonable. If FEMA determines any of the costs to be unreasonable based on its evaluation, FEMA may disallow all or part of the costs by adjusting eligible funding to an amount it determines to be reasonable.

FEMA determines reasonableness by evaluating whether:

• The cost is of a type generally recognized as ordinary and necessary for the type of facility or work
• The cost is comparable to the current market price for similar goods or services based on:
• Historical documentation
• Average costs in the area
• Published unit costs from national cost estimating databases

FEMA determines reasonableness by evaluating whether (continued):

• Cost escalation was the result of:
• Shortages in equipment, materials, supplies, labor, or contractors. If due to shortages, FEMA considers whether the Applicant's work continued beyond the period of shortages and if the opportunity to obtain more reasonable pricing existed
• Project-specific complexities, including: environmental or historic issues, remote access or location, provision of a unique service with few providers, or elements requiring an extraordinary level of effort
• The Applicant deviated from its established practices
• Exigent circumstances existed.  If so, FEMA evaluates the length of time the circumstances existed compared to the length of time costs were incurred
• The Applicant participated in ethical business practices, ensuring parties to a transaction are independent of each other, without familial ties or shared interests and on equal footing without one party having control of the other
• The Applicant complied with procurement requirements

This next section will explore the various categories of labor costs, which may be eligible for Public Assistance.

FEMA refers to the Applicant's personnel as "force account." FEMA reimburses force account labor based on actual hourly rates plus the cost of the employee's actual fringe benefits.

FEMA calculates the fringe benefit cost based on a percentage of the hourly pay rate.

• Certain items in a benefit package are not dependent on hours worked (e.g., health insurance), therefore the percentage for overtime is usually different than the percentage for straight-time.

Fringe benefits may include:

• Holiday leave
• Accrued vacation leave
• Sick leave
• Social security matching
• Medicare matching
• Unemployment insurance
• Workers compensation
• Retirement
• Health insurance
• Life and disability insurance
• Administrative leave

FEMA determines the eligibility of overtime, premium pay, and compensatory time costs based on the Applicant's pre-disaster written labor policy, provided the policy:

• Does not include a contingency clause that payment is subject to Federal funding;
• Is applied uniformly regardless of a Presidential declaration; and
• Has set non-discretionary criteria for when the Applicant activates various pay types.

All rates and fringe benefits should be applied uniformly and not contingent on receipt of federal funds.

All costs must be reasonable and equitable for the type of work being performed.

FEMA will determine whether the number of hours claimed are reasonable and necessary by evaluating:

• The severity of the incident;
• Whether the work was performed at a time when it was necessary to work extraordinary hours based on the circumstances of the incident;
• The function of the employee for which the hours are claimed; and
• The number of consecutive hours the employee worked.

FEMA's criteria for reimbursing straight-time labor costs differ depending on the type of employee and whether that employee is performing Emergency Work or Permanent Work.

Permanent Work:

• Straight-time and overtime labor costs are eligible for both budgeted and unbudgeted employees
• Budgeted Employees Hours
• Permanent employee
• Seasonal employee working during normal season of employment
• Unbudgeted Employees Hours
• Reassigned employee funded from external sources
• Essential employee called back from furlough
• Temporary employee hired to perform eligible work
• Part-time or Seasonal employee working outside normal hours or season of employment
• Types of employees include:
• Reassigned employees
• Backfill employees
• Supervisors
• Other

Emergency Work:

• For budgeted employees only, overtime labor is eligible
• For unbudgeted employees performing Emergency Work, both straight-time and overtime labor are eligible.

Under the Alternative Procedures authorized by Section 428 of the Stafford Act, straight-time labor costs are eligible for budgeted employees conducting eligible debris removal (Category A) activities.

The next five screens will take a closer look at cost eligibility for specific types of employees.

A backfill employee is when the Applicant temporarily replaces an employee who is responding to the incident. Overtime costs for the backfill employee may be eligible even if the backfill employee is not performing eligible work as long as the employee that he/she is replacing is performing eligible Emergency Work.

FEMA may also provide Public Assistance funding for straight-time if the backfill employee is a:

• Contracted or temporary employee; or
• Permanent employee called in on a normally scheduled day off (weekend or other off day).

Note that if the backfill employee is called in from scheduled leave, only overtime is eligible.

Extraordinary costs (such as call-back pay, night-time and weekend differential pay, and hazardous duty pay) for essential employees who are called back to duty during administrative leave to perform eligible Emergency Work are eligible if costs are paid in accordance with a labor policy that meets the criteria above.

Administrative leave or similar labor costs incurred for employees sent home or told not to report due to emergency conditions are not eligible.

• Standby use and pay are consistent with the Applicant’s labor policy (or contractual obligation based on a labor agreement) and consistent with its practice in non-federally declared incidents;
• The standby time occurred when it was necessary to have resources available to conduct the respective life-saving action;
• The number of hours and individuals were reasonable and necessary based on the number of resources required;
• The employee was conducting the respective life-saving action; and
• All other labor cost eligibility criteria were met.

 Examples of eligible stand-by time costs include:

• When bus drivers are prudently deployed to transport evacuees, even if the bus is not ultimately used
• When first responders are prudently deployed for the purpose of evacuating or providing emergency medical care to survivors in order to save lives or protect health and safety, even if the employee does not ultimately perform eligible Emergency Work
• When a contract or union agreement requires payment for stand-by time

FEMA determines if the cost is reasonable and necessary based on whether:

• There is a contractual obligation to pay for stand-by time based on a labor agreement
• The stand-by time occurred when it was necessary to have resources available to save lives and protect health and safety

FEMA provides Public Assistance funding for the use of Applicant-owned equipment (force account equipment) based on FEMA, State, Territorial, Tribal, or Local equipment rates.

An Applicant may not have sufficient equipment to effectively respond to an incident. If the Applicant purchases equipment that it justifiably needs to respond effectively to the incident, FEMA provides Public Assistance funding for both the purchase price and either:

• The use of the equipment based on equipment rates (without the ownership and depreciation components); or
• The actual fuel and maintenance costs.

Equipment rates are only applied to the time the Applicant is actually operating equipment.

• Although costs associated with mobilizing equipment to a project site are eligible, costs for standby time are not eligible unless the equipment operator uses the equipment intermittently for more than half of the working hours for a given day.
• In this case the intermittent standby time is eligible.

FEMA provides Public Assistance funding for force account equipment usage based on FEMA, State, Territorial, Tribal, or local equipment rates in accordance with the specific criteria. The following six screens will expand on the specific criteria for the different equipment rates.

FEMA publishes equipment rates applicable on a national basis. FEMA's rate schedule includes any item powered by fuel or attached to any item powered by fuel. FEMA develops equipment rates based on all costs associated with ownership and operation of equipment, with the exception of operator labor.

FEMA equipment rate components include:

• Depreciation
• Overhead
• Equipment overhaul (labor, parts, and supplies)
• Maintenance (labor, parts, and supplies)
• Lubrication
• Tires
• Ground engaging component (if applicable)
• Fuel

Because the rates include maintenance costs, a mechanic's labor costs to maintain Applicant-owned equipment are ineligible.

State and Territorial rates are those established under State or Territorial guidelines for use in normal day-to-day operations.

• FEMA provides Public Assistance funding based on State or Territorial rates up to $75 per hour
• FEMA only provides Public Assistance funding for a rate above $75 per hour if the Applicant demonstrates that each of the components of the rate is comparable to current market prices

Tribal rates are those established under Tribal guidelines for use in normal day-to-day operations. 

• FEMA provides Public Assistance funding based on Tribal rates up to $75 per hour
• FEMA only provides Public Assistance funding for a rate above $75 per hour if the Applicant demonstrates that each of the components of the rate is comparable to current market prices

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

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.

If the Applicant uses equipment that has no established State, Territorial, Tribal, or Local rate, FEMA reimburses that equipment based on the FEMA rate.

If FEMA does not have a rate established for the equipment, the Applicant may either submit a rate for approval or request that FEMA provide a rate.

If the Applicant submits a rate, it must include documentation demonstrating that each component of the rate is comparable to current market prices. The rate cannot be based on rental rates as such rates include cost components, such as profit, that are above and beyond what is necessary to operate and maintain force account equipment.

When the Applicant leases equipment, FEMA provides Public Assistance funding based on the terms of the lease. Leasing costs may be eligible if:

• The Applicant performed an analysis of the cost of leasing versus purchasing the equipment; and
• The total leasing costs do not exceed the cost of purchasing and maintaining equipment during the life of the eligible project.

If the leasing costs exceed the cost of purchasing and maintaining the equipment, FEMA determines the amount of eligible costs based on an evaluation of the reasonableness of the costs claimed, including whether the Applicant acted with prudence under the circumstances at the time it leased the equipment.

If the Applicant has a lease-purchase agreement and obtains ownership during completion of eligible work, FEMA provides Public Assistance funding for the equipment use based on the hourly equipment rate.

If the Applicant has a lease-purchase agreement and completes the eligible work prior to obtaining ownership, FEMA provides Public Assistance funding based on the cost to lease the equipment.

This section examines the eligibility of costs related to procurement and contracting.

FEMA provides Public Assistance funding for contract costs based on the terms of the contract if the Applicant meets Federal procurement and contracting requirements.

• The Program Delivery Managers should remind Applicants of this requirement early in the process
• FEMA Public Assistance staff coordinates with the Office of Chief Counsel when evaluating whether the Applicant complied with federal procurement requirements

Applicants must comply with Federal procurement requirements as a condition of receiving Public Assistance funding for contract costs for eligible work. Federal procurement requirements for State and Territorial governments are different than those for Tribal and Local governments and private nonprofits.

State and Territorial government Applicants must:

• Follow the same policies and procedures they would use for procurements with non-Federal funds
• Comply with 2 Code of Federal Regulations 200.322, Procurement of recovered materials
• Ensure that every purchase order or other contract includes any clauses required by 2 Code of Federal Regulations 200.326

FEMA does not typically review State or Territorial procurement policies or procedures. In certain circumstances, FEMA may review State or Territorial procurement policies or procedures or request that a State or Territorial attorney certify in writing whether the Applicant complied with the State’s or Territorial’s procurement policies and procedures.

Tribal and local governments, including Tribal Recipients, and Private Nonprofits must comply with:

• Their own documented procurement procedures;
• Applicable State Local Tribal Territorial government laws and regulations; and
• Applicable Federal laws and regulations. 

If a Federal requirement is different than the State Local Tribal Territorial requirement, or the Applicant’s own requirements, it must use the more restrictive requirement. Additionally, Territorial governments should consult their legal counsel when a project involves a public building or public works facility as the Buy American Act may apply to the procurement process.

For more information on procurement, refer to course: Procurement Under FEMA Awards: Requirements for Recipients and Subrecipients When Procuring Services and Supplies with Funding under Stafford Act Grant Programs or FEMA's Procurement Disaster Assistance Team website: https://www.fema.gov/procurement-disaster-assistance-team.

• Place such organizations that are qualified on solicitation lists;
• Ensure such organizations are solicited whenever they are potential sources;
• Divide total requirements, when economically feasible, into smaller tasks or quantities;
• Establish delivery schedules, where the requirement permits, which encourage their participation;
• Use the services and assistance, as appropriate, of the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
• Require prime contractor to conduct the above steps if subcontracting.

Note that Tribal government Applicants using the Indian Self-Determination and Education Assistance Act preference do not need to separately follow the six socioeconomic steps outlined above.

• Excluding contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals from competing for such procurements to ensure objective contractor performance and eliminate unfair competitive advantage;
• Evaluating and documenting the contractor’s integrity, compliance with public policy, record of past performance, and financial and technical resources.
• Ensuring that the contractor was not suspended or debarred.
• Maintaining records to detail the history of the procurement including, but are not limited to:
• Rationale for the method of procurement
• Selection of contract type
• Contractor selection or rejection
• The basis for the contract price

Tribal and local governments and Private Nonprofits must use one of the following procurement methods:

• Micro-purchases
• Small purchase procedure
• Sealed bid (formal advertising)
• Competitive proposal
• Noncompetitive proposal (sole-sourcing)

Non competitive Procurement

FEMA may reimburse costs incurred under a contract procured through a noncompetitive proposal, also referred to as sole-source, only when one or more of the following circumstances apply:

• The item is only available from a single source
• The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation (this exception to competitive procure is only for work specifically related to the circumstance and only while the circumstances exists. Therefore Applicants need to immediately begin the process of competitively procuring similar goods and services and transition to a competitively procured contract as soon as the circumstances cease to exist)
• FEMA or the Recipient expressly authorizes a noncompetitive proposal in response to a written request from the Applicant
• After solicitation of several sources, competition is determined inadequate

For each noncompetitive procurement, the Applicant must identify which of the four circumstances, listed on the previous slide, apply and provide all of the following information, documentation, and justification:

• A brief description of the product or service being procured, including the expected amount of the procurement;
• Explanation of why a noncompetitive procurement is necessary. If there was a public exigency or emergency, the justification should explain the specific conditions and circumstances that clearly illustrate why competitive procurement would cause unacceptable delay in addressing the public exigency or emergency. (Failure to plan for transition to competitive procurement cannot be the basis for continued use of noncompetitive procurement based on public exigency or emergency);
• Length of time the noncompetitive contract will be used for the defined SOW, and the impact on that SOW should the noncompetitively procured contract not be available for that amount of time (e.g., how long does the Applicant anticipate the exigency or emergency circumstances to continue; how long it will take to identify requirements and award a contract that complies with all procurement requirements; or how long it would take another contractor to reach the same level of competence);
• The specific steps taken to determine that the Applicant could not have used, or did not use, full and open competition for the SOW (e.g., research conducted to determine that there were limited qualified resources available that could meet the contract provisions);
• Any known conflicts of interest and any efforts that the Applicant made to identify potential conflicts of interest before the noncompetitive procurement occurred. If the Applicant made no efforts, explain why; and
• Any other justification.

Public Assistance staff and FEMA's Office of Chief Counsel coordinate when evaluating the compliance with Federal procurement requirements.

If FEMA determines that none of the allowable circumstances existed or did not preclude the Applicant from adhering to competitive procurement requirements, FEMA may disallow all or part of the associated costs.

FEMA generally limits the use of Time and Materials contracts to a reasonable timeframe based on the circumstances during which the Applicant could not define a clear scope of work. Therefore, the Applicant should define the scope of work as soon as possible to enable procurement of a more acceptable type of contract. 

Time and materials contracts do not provide incentives to the contractor for cost control or labor efficiency. FEMA will only reimburse costs under a time and materials contract if all of the following apply:

• No other contract was suitable
• The contract has a ceiling price that the contractor exceeds at its own risk
• The Applicant maintains a high degree of oversight to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls

Some States have a statewide mutual aid agreement that designates the State as being responsible for reimbursing mutual aid costs. In these States, the Providing Entity may request funding directly from the State, with prior consent of the Requesting Entity, in accordance with applicable State laws and procedures.

If the Requesting Entity and the State approve the request and the State pays the Providing Entity, FEMA provides Public Assistance funding to the State. The Requesting Entity may be responsible for reimbursing the State for any non-Federal Local cost share, depending on specific State requirements.

The Requesting Entity or State, if applicable, must provide a description of the services requested and received, along with documentation of associated costs (e.g., labor, equipment, supplies, materials) to FEMA in support of a request for Public Assistance funding.

Three types of mutual aid are eligible:

• Emergency Work
• Emergency utility restoration (regardless of whether it is deemed Category B or F)
• Grant management

Mutual aid work is subject to the same eligibility criteria as contract work. Costs to transport the Providing Entity's equipment and personnel to the declared area are eligible.

Ineligible work performed by a Providing Entity includes:

• Preparing to deploy or "standing-by"
• Dispatch operations outside the receiving State, Territory, or Tribe
• Training and exercises
• Support for long-term recovery and mitigation operations

The Emergency Management Assistance Compact, a national interstate mutual aid agreement, enables States and Territories to share resources in response to an incident.

Work performed outside the receiving State or Territory that is associated with the operation of the Emergency Management Assistance Compact, including tracking of resources, is ineligible unless the work is associated with the receiving State's or Territory's emergency operations for the incident.

The Providing Entity's straight-time and overtime labor are eligible, including fringe benefits. When the Requesting Entity is a State, Territorial, Tribal, or Local government and the Providing Entity is another division within the same State, Territorial, Tribal, or Local government, straight-time for budgeted employees of the Providing Entity is ineligible.

If the Providing Entity backfills deployed personnel, overtime for backfill personnel is eligible even if they are not performing eligible work. However, straight-time for backfill personnel is ineligible.

FEMA reimburses the use of equipment provided to a Requesting Entity based on either the terms of the agreement or equipment rates. FEMA provides Public Assistance funding to repair damage to this equipment the same way as it provides Public Assistance funding to repair damage to Applicant-owned equipment.

In some cases, the Requesting and Providing Entities do not have a written agreement, OR where such an agreement exists but is silent on reimbursement, the entities may verbally agree on the resources to be provided and on the terms, conditions, and costs of such assistance.

The agreement should be consistent with past practices for mutual aid between the entities. For example, if the Requesting Entity does not normally reimburse a Providing Entity for its costs, it should not agree to do so specifically for the declared incident.

Prior to funding, the Requesting Entity must document the verbal agreement in writing, have it executed by an official of each entity with the authority to request and provide assistance, and submit it to FEMA (preferably within 30 days of the Applicant's Briefing).

Individuals and organizations often donate resources (equipment, supplies, materials, or labor) to assist with response activities. FEMA does not provide Public Assistance funding for donated resources; however, the Applicant may use the value of donated resources to offset the non-Federal share of its eligible Emergency Work projects and Direct Federal Assistance.

The Applicant may apply the offset if all of the following conditions are met:

• The donated resource is from a third party (a private entity or individual that is not a paid employee of the Applicant or Federal, State, Territorial, or Tribal government);
• The Applicant uses the resource in the performance of eligible Emergency Work; and
• The Applicant or volunteer organization tracks the resources and work performed, including description, specific locations, and hours.

FEMA considers unpaid individuals who volunteer their labor to an Applicant to be third party even if they are officially members or employees of the Applicant organization (e.g. volunteer fire fighters at a Private Nonprofit volunteer fire department).

Resources donated to the Applicant by an organization that would normally provide the same resources under its mission are eligible as an offset provided the organization is not federally funded.

Volunteer Labor: The offset for volunteer labor is based on the same straight-time hourly labor rate, and fringe benefits, as a similarly qualified person in the Applicant's organization who normally performs similar work. FEMA does not offset volunteer labor based on overtime or premium rates. If the Applicant does not have employees performing similar work, FEMA credits the non-Federal share based on a rate consistent with those ordinarily performing the work in the same labor market.

Donated Equipment: The offset for donated equipment is based on equipment rates and must not exceed the fair rental value (if loaned) or the fair market value of equipment that is in similar age and condition at the time of donation (if donated with a transfer of title). 

Donated Supplies or Materials: The offset for donated supplies or materials is based on current commercial rates, which FEMA validates based on invoices from previous purchases or information available from vendors in the area.

Logistical Support: Reasonable logistical support for volunteers doing eligible work, such as donations warehousing and management related to eligible Emergency Work, may be eligible either for funding (if the Applicant provides the logistical support) or as a donations credit (if a third party provides the logistical support), subject to approval by FEMA.

Project management activities, such as procurement, document review, and construction oversight, are eligible provided the activities are tracked and directly related to a specific, eligible project.

Engineering and design services and construction inspection are also eligible provided the services are necessary to complete eligible work. Some projects require only very basic services or none at all, while others require specialized engineering and design.

When evaluating the eligibility of project management and design services and the reasonableness of associated costs, FEMA considers all of the following:

• Project complexities
• Whether redesign was necessary as a result of unexpected site conditions
• Whether the project includes improvements that are not eligible for funding (management and design costs associated with ineligible work are not eligible)

Section 324 of the Stafford Act authorizes FEMA to provide contributions under this Act for management costs incurred in the administration of the Public Assistance (PA) Program. The Disaster Recovery Reform Act of 2018 (DRRA) amends Section 324 of the Stafford Act to define management costs to include “any indirect cost, any direct administrative cost, and any other administrative expense associated with a specific project under a major disaster, emergency, or disaster preparedness or mitigation activation or measure.”

Activities eligible as management costs include those related to developing eligible PA projects and receiving reimbursement. These activities may include, but are not limited to:

• Preliminary Damage Assessments
• Meetings regarding the PA Program or overall PA damage claim
• Organizing PA damage sites into logical groups
• Preparing correspondence
• Site inspections
• Travel expenses
• Developing the detailed site-specific damage description
• Evaluating Section 406 hazard mitigation measures
• Preparing Small and Large Projects
• Reviewing PWs
• Collecting copying, filing, or submitting documents to support a claim
• Requesting disbursement of PA funds
• Training

FEMA provides Federal funding for management costs based on actual costs incurred up to a percentage of the Federal share of projected eligible program costs, not including Direct Federal Assistance.

If a State and Tribal Government are both Recipients for the same incident within the same State, then both are eligible to receive management cost funding. The Recipient determines the amount of funds, if any, that it will pass through to Subrecipients for management costs.

Additional information is available in FEMA’s interim policy, FEMA Recovery Policy FP 104-11-2, Public Assistance Management Costs (Interim) and FEMA’s Public Assistance Management Costs Standard Operating Procedures.

If the Recipient or Subrecipient incurs administrative costs that it tracks, charges, and accounts for directly to a specific eligible project, the costs are eligible as Direct Administrative Costs. Costs cannot be charged to a project if it previously allocated similar costs incurred for the same purpose in like circumstances to indirect costs.

Costs associated with the following activities are eligible Direct Administrative Costs if they are related to only one project and meet the above requirements (this list is not all-inclusive):

• Site inspections
• Developing the detailed site-specific damage description
• Evaluating Section 406 hazard mitigation measures
• Reviewing the Project Worksheet
• Preparing Small Projects
• Preparing correspondence
• Travel Expenses
• Collecting, copying, filing, or submitting documents to support the claim
• Requesting disbursement of Public Assistance funds

FEMA normally considers the salaries of administrative and clerical staff as indirect costs. Direct charging of these costs may be appropriate only if all of the following conditions are met:

• Administrative or clerical services are integral to a project or activity
• Individuals involved are specifically identified with the project or activity
• Such costs are explicitly included in the budget for that project or have FEMA's prior written approval
• The costs are not also recovered as indirect costs

DAC applies to all major disasters and emergencies declared on or before July 31, 2017. For additional information regarding Direct Administrative Costs see “IS-1012: Direct Administrative Costs”.

FEMA considers the following factors when determining the reasonableness of Direct Administrative Costs:

• Whether the type of employee and skill level is appropriate for the activities performed; and
• The level of effort required to perform an activity.

If the type of employee or skill level is not appropriate for the specific task, FEMA limits Public Assistance funding to a rate based on the appropriate employee type or skill level. For complex projects, staff with a higher level of technical proficiency and experience may be appropriate.

FEMA will use the level of effort required by FEMA staff to perform similar functions as a reference point to determine whether the level of effort claimed by the Recipient or Subrecipient is reasonable.

FEMA does not reimburse Direct Administrative Costs based on blended rates (e.g., a labor rate plus a percentage of overall travel expenses or one rate for all levels of employees involved in a project). Labor and travel expenses must be tracked separately and shown as directly related to a specific project.

FEMA provides Public Assistance funding for Direct Administrative Costs at the same cost-share provisions applicable to the declaration.

Direct Administration Costs (DAC) applies to all major disasters and emergencies declared on or before July 31, 2017. For additional information regarding Direct Administrative Costs see “IS-1012: Direct Administrative Costs”.

The next section of this module will discuss the requirements for the disposition of purchased equipment, supplies, and real property after they are no longer needed for federally funded projects.

In the context of disposition, equipment is any tangible personal property (including information technology systems) having a useful life of more than 1 year and a per-unit acquisition cost that equals or exceeds the lesser of the capitalization level established by the Applicant for financial statement purposes, or $5,000. Tangible personal property that does not fall under this definition of equipment is a supply.

When equipment or supplies (including materials) purchased with Public Assistance funding are no longer needed for response to or recovery from the incident, Tribal and local governments and Private Nonprofit Applicants may use the items for other federally funded programs or projects.

In accordance with Federal regulations, State and Territorial government Applicants dispose of equipment in accordance with State or Territorial laws and procedures.

Tribal and Local governments and Private Nonprofits must calculate the current fair market value of each individual item of equipment. The Applicant must provide the current fair market for any items that have a current fair market value of $5,000 or more. FEMA reduces eligible funding by this amount.

• If an individual item of equipment has a current fair market value less than $5,000, FEMA does not reduce the eligible funding.

Tribal and local governments and Private Nonprofit Applicants must comply with all disposition requirements described in 2 Code of Federal Regulations 200.313, Disposition.

Real property refers to land as well as land improvements, structures, and appurtenances thereto. Real property does not include moveable machinery and equipment.

If the Applicant acquires or improves real property with Public Assistance funds, disposition and reporting requirements apply when acquired or improved real property is no longer needed for the originally authorized purpose.

The Public Assistance Division at FEMA Headquarters provides disposition instructions.

The Stafford Act authorizes FEMA to provide Public Assistance funding for specific work performed as a result of the incident. It does not authorize FEMA to provide Public Assistance funding for all losses or costs resulting from the incident.

Examples of Common Ineligible Costs include but are not limited to:

Duplication of Benefits:

FEMA is legally prohibited from duplicating benefits from other sources. If the Applicant receives funding from another source for the same work that FEMA funded, FEMA reduces the eligible cost or de-obligates funding to prevent a duplication of benefits. For example, FEMA cannot provide Public Assistance funding that duplicates insurance proceeds. When it comes to non-Federal grants and cash donations, duplication depends on whether the funds are provided toward a specific purpose and whether that specific purpose is otherwise eligible for Public Assistance funding.

Loss of Revenue:

FEMA cannot provide Public Assistance funding for revenue lost as a result of the incident. The following are examples of when loss of revenue may occur as a result of an incident:

• Hospitals release non-critical patients to make room for survivors
• Hospitals sustain damage that reduces pre-existing capacity
• States open a toll road for evacuation and do not charge a toll
• States waive the normal fee for ferry service to encourage alternate transportation after an incident
• A utility system is shut down as a result of the incident
• Events are cancelled as a result of an entity using a venue for incident-related activities, such as sheltering

Examples of Common Ineligible Costs include but are not limited to (continued):

Loss of Useful Service Life:

FEMA cannot provide Public Assistance funding for the projected loss of useful service life of a facility. For example, if a road has been inundated by flood waters for an extended period of time, FEMA cannot provide Public Assistance funding for the value of the projected loss of useful life of the road due to the long-term effects the inundation might have on the road.

Tax Assessments:

State, Territorial, Tribal, and Local governments may conduct tax assessments to re-assess real property values after an incident. Costs related to conducting these assessments are ineligible because the assessments are neither essential to addressing an immediate threat to life or improved property, nor connected with the permanent restoration of eligible facilities.

Increased Operating Costs:

Increased costs of operating a facility or providing a service are generally ineligible, even when directly related to the incident. However, short-term increased costs that are directly related to accomplishing specific emergency health and safety tasks as part of emergency protective measures may be eligible.

In this Lesson, participants learned about cost eligibility of Applicant projects in order to meet all requirements of Public Assistance Program grants.

The next lesson will summarize the content of the course, and participants will complete the Post-Course Assessment.

Upon completion of this module, participants will be able to summarize the content of the course.

Course Objectives:

Upon successfully completing the course, the participants will be able to:

• Describe project eligibility for Public Assistance Program grants and supporting laws, regulations, statutes, and Executive Orders
• Describe how to use the Public Assistance Program and Policy Guide as a tool in determining eligibility

In Lesson 1, participants discussed the declaration process and authorization of public assistance.

You should now be able to:

• State the goals and objectives of the course
• Describe the Declaration Process and the authorization of Public Assistance
• Identify the authorities, regulations, statutes, and program guidance that influence the Public Assistance process in determining eligibility

In Lesson 2, participants discussed Applicants eligible to receive Public Assistance Program grants.

You should now be able to:

• Identify the Applicants eligible to receive Public Assistance Program grants

In Lesson 3, participants discussed eligibility requirements for public and private nonprofit facilities

You should now be able to:

• Explain eligibility requirements for public and private nonprofit facilities

In Lesson 5, participants discussed Applicants eligible to receive Public Assistance Program grants.

You should now be able to:

• Define cost eligibility
• Identify labor, equipment, supplies, contracting, and administrative duties that meet eligibility requirements
• Understand the application of procurement or contracting policies

This course is complete.

The course provided you with an overview of Public Assistance project eligibility. By the end of the course, State, Local, Tribal, and Territorial Applicants and Recipients will be able to understand all aspects of Public Assistance Program and project eligibility.