Lesson 2 Overview and Objectives

This lesson provides an overview of the eligibility requirements for electrical systems. It identifies the specific requirements for reconductoring and reasons why projects are commonly deemed ineligible.

At the end of this lesson, participants will be able to:

  • Identify the eligibility requirements for electrical systems
  • Identify common reasons why electrical system projects are deemed ineligible for Public Assistance Program funding

 

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Components of Eligibility

The four basic components of eligibility are:

  • Applicant
  • Facility
  • Work
  • Cost

FEMA refers to these components as the building blocks of an eligibility pyramid. Generally, FEMA must determine each building block eligible, starting at the foundation (Applicant) and working up to cost at the top of the pyramid.

Eligibility pyramid with components. The pyramid looks as such from top to bottom: cost, work, facility, applicant.
Eligible Applicants

FEMA provides assistance to eligible Applicants. FEMA must first determine whether an Applicant is eligible before evaluating the Applicant's claim.

The following are a list of eligible Applicants.

  • State and Territorial Governments
  • Tribal Governments
  • Local Governments
  • Certain Private Nonprofit Organizations
FEMA Deputy Administrator Rich Serino, third from left, discusses power restoration with Department of Energy Secretary Chu, red jacket, along with Public Service Electric and Gas Company engineers at the Hoboken electrical substation.
State and Territorial Governments

State and Territorial governments, including the District of Columbia, American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, and the U.S. Virgin Islands, are eligible Applicants.

Tribal Governments

Federally recognized Tribal Governments, including Alaska Native Villages and organizations (hereinafter referred to as "Tribal Governments"), are eligible Applicants.

Alaska Native corporations are not eligible as they are privately owned, for-profit company

Local Governments

The following types of local governments are eligible Applicants:

  • 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
  • Community Development Districts 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.
Private Nonprofit Organizations

Only certain Private Nonprofits (PNP) are eligible Applicants. To be an eligible  Applicant, the PNP must show that it has:

A current ruling letter from the U.S. Internal Revenue Service granting tax exemption under sections 501(c), (d), or (e) of the Internal Revenue Code of 1954; or

Documentation from the State substantiating it is a non-revenue producing, nonprofit entity organized or doing business under State law.

At the Cherokee County State/FEMA Disaster Recovery Center, Small Business Administration Customer Service Representative Wade Geary provides information to a flood affected resident.
Components of Eligibility

For Private Nonprofits, FEMA must determine whether the Private Nonprofits owns or operates an eligible facility in order to determine whether the Applicant is eligible.

Secondly, for state, territorial, tribal and local government applicants, evaluating facility eligibility (e.g. sandbagging and boarding up windows) is not necessary

Pyramid: Applicant, Facility, Services (highlighted), Work, Cost. To be eligible, a PNP must own or operate a facility that provides an eligible service.
Eligible Facilities (1 of 2)

In general, a facility must be determined eligible in order for work to be eligible. There are exceptions for some emergency work activities.

A facility is a building, works, system, or equipment, built or manufactured, or an improved and maintained natural feature.

The St. Bernard Parish 34th Judicial Courthouse historic structure
Eligible Facilities (2 of 2)

An example of a system that qualifies as a facility is an electrical power system. Mechanical, electrical, plumbing, and other systems that are components of a facility in which they operate are considered part of that facility.

A natural feature is improved and maintained if it meets all of the following conditions:

  • The natural feature has a designed and constructed improvement to its natural characteristics, such as a terraced slope or realigned channel
  • The constructed improvement enhances the function of the unimproved natural feature
  • The Applicant maintains the improvement on a regular schedule to ensure that the improvement performs as designed
Eligible Public Facilities

An eligible public facility is one that a State, Territorial, Tribal, or local government owns or has legal responsibility for maintaining. Including any:

  • Flood control, navigation, irrigation, reclamation, public power, sewage treatment and collection, water supply and distribution, watershed development, or airport facility
  • Non-Federal-aid street, road, or highway
  • Other public building, structure, or system, including those used for educational, recreational, or cultural purposes
  • Park
FEMA is providing assistance to those who were impacted by Tropical Storm Irene.
Private Nonprofit Facility

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 governmental-type services to the general public.

If a Private Nonprofit operates multiple facilities, or a single facility composed of more than one building, FEMA must 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.

For example, an outdoor pool usually has a building for bathrooms and controlling entry. In such cases, FEMA does not evaluate the building for eligibility separately because it is an intrinsic part of the pool complex.

Ineligible Facilities

The following are not eligible facilities:

  • Unimproved property (e.g., a hillside or slope, forest, natural channel bank)
  • Land used for agricultural purposes
Flooded farm land
General Work Eligibility

Through the Public Assistance program, FEMA provides:

  • Grant funding for emergency protective measures and debris removal (Emergency Work)
  • Grant funding for permanent restoration of damaged facilities, including cost-effective hazard mitigation to protect the facilities from future damage (Permanent Work)
Team members from Mormon Helping Hands volunteer to assist disaster survivors on Holly Drive recover from the destructive effects of severe storms, tornadoes and straight-line winds that occurred on January 2 and January 21-22, 2017
Categories of Work

To facilitate the processing of Public Assistance funding, FEMA separates Emergency Work into two categories and Permanent Work into five categories based on general types of facilities.

These categories and examples of each are shown in the figure below: (Emergency Work and Permanent Work)

Please refer to Appendix 2-2 for a full description.
Electrical systems may do emergency protective measures (Category B) when they do a temporary repair that will be removed when the facility is permanently repaired. Permanent repairs will usually fall under utilities (Category F)”.
Mutual Aid Eligibility

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.

FEMA may reimburse an eligible applicant for mutual aid costs associated with restoration of an electrical power system, regardless of whether or not the restoration is temporary or permanent, in accordance with the mutual aid agreement

Cost Eligibility

The final component evaluated for eligibility are the costs claimed by the Applicant. Not all costs incurred as a result of the incident are eligible.

To be eligible, costs must be:

  • Directly tied to the performance of eligible work
  • Adequately documented
  • Reduced by all applicable credits, such as insurance proceeds and salvage values
  • Authorized and not prohibited under Federal, State, Territorial, Tribal, or local government laws or regulations
  • Consistent with the Applicant's internal policies, regulations, and procedures that apply uniformly to both Federal awards and other activities of the Applicant
  • Necessary and reasonable to accomplish the work properly and efficiently

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.

Reconductoring  Example

As a direct result of the event, a conductor is only eligible for replacement (reconductoring) when the Applicant cannot effectively repair it because one of the following exists within a line section:

  • Twenty-five percent or more of the conductor spans have visible damage, such as broken strands, splices, or sleeves (installed as a result of the event) or severe pitting, burns, or kinks

 

  • Thirty percent or more of the line spans are visually stretched (out of sag), 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 (straightened). 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 (other than poles) 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 above

 

  • Evidence provided by a licensed Professional Engineer that demonstrates the conductor is damaged beyond repair
Reconductoring (1 of 2)

If the Applicant provides sufficient documentation establishing the pre-disaster condition and a line section of its system meets one of the six criteria above, that line section is eligible to be reconductored.

The use of #2 Aluminum Conductor Steel Reinforced is considered a lower cost alternative to replacing conductor with equal or lesser amperage capacity such as copper weld conductor, hard and soft drawn copper wire, smaller Aluminum Conductor Steel Reinforced , and Amerductor.

Therefore, if a conductor with equal or lesser amperage capacity to #2 Aluminum Conductor Steel Reinforced is eligible for reconductoring, the line section is eligible to be replaced with #2 Aluminum Conductor Steel Reinforced .

When the Applicant replaces conductor with #2 Aluminum Conductor Steel Reinforced , adjustments to other components of the electric distribution and transmission systems to accommodate #2 Aluminum Conductor Steel Reinforced , including, but not limited to, adjusting span lengths between utility poles and increasing pole heights and standards to meet appropriate design requirements are eligible.

The Applicant does not need to cite a codes and standards for this additional work even though the appropriate design requirements may come from Federal, State, Territorial, Tribal, or local codes or standards, including National Electrical Safety Code or Rural Utilities Service standards.

Reconductoring (2 of 2)

If the Applicant prefers to reconductor a line with conductor of lesser amperage capacity than #2 Aluminum Conductor Steel Reinforced , such as #4 Aluminum Conductor Steel Reinforced (including associated adjustments in span lengths and pole heights), FEMA will provide Public Assistance funding for the work as long as the cost is less than the cost of reconductoring with #2 Aluminum Conductor Steel Reinforced (including associated adjustments in span lengths and pole heights).

If the Applicant plans to upgrade its conductor to an amperage capacity above #2 Aluminum Conductor Steel Reinforced, and there is no code or standard requiring the upgrade that meets the eligibility requirements discussed in Chapter 2:VII.B of the Public Assistance Program and Policy Guide, the additional upgrades are not eligible and the Applicant must request an Improved Project.

If the damage does not meet the criteria for replacement, only the repair of the damaged line section(s) is eligible.

Frequent Reasons Why Projects Are Deemed Ineligible
  • Ineligible work and costs
    • Ineligible work performed by a providing entity
    • Work eligibility criteria not met
    • Eligibility within a designated area
  • Legal responsibility
  • Improper Procurement
  • Increased Operating Costs
Gwen O'Shea, CEO and president of the Health & Welfare Council of Long Island talks with volunteer organizations about long term recovery. The Federal Emergency Management Agency is working with volunteer organizations active in disasters to address the ongoing needs of those affected by Hurricane Irene.
Ineligible Work and Costs

This includes:

  • Revenue lost due to shutdown of a utility
  • Increased operating costs, such as increased costs for obtaining an alternative source of power because of the shutdown of a power generation plant
  • General post-disaster surveys, inspections, and assessments
Ineligible Work Performed by a Providing Entity

This includes:

  • Dispatch operations outside the receiving State, Territory, or Tribe
  • Training and exercises
  • Support for long-term recovery and mitigation operations
a dispatcher at a desk surrounded with computer screens
Minimum Work Eligibility Criteria

At a minimum, work must meet each of the following three general criteria to be eligible:

  • Be required as a result of the declared incident
  • Be located within the designated area, with the exception of sheltering and evacuation activities
  • Be the legal responsibility of an eligible Applicant

If this criterion is not met, work is deemed ineligible.

A pen laying on top of scattered papers.
Eligibility Within a Designated Area

To be eligible, work must be located in the designated area defined in the declaration (with the exception of sheltering and evacuation activities).

Emergency Work or Permanent Work performed on a facility located outside of the designated area is not eligible.

For example: There are significant damages in county A, B, and C. Generation plant is located in county E. Conductors have to pass through county D. Some of the line damages and a few towers spans throughout the various county lines. Only damages within the designated counties would be considered eligible for Public Assistance.

Legal Responsibility

To be eligible, work 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.

Lesson 2 Summary

This lesson is complete.

Participants can now:

  • Identify the eligibility requirements for electrical systems
  • Identify common reasons why electrical system projects are deemed ineligible for Public Assistance Program funding

The next lesson will explain how to document disaster-related damage for electrical systems.

 

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