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Citation:         FEMA-1699-DR-KS, City of Larned, Emergency Generators, Project Worksheets (PW) 853 and 854

Cross-

Reference:      Emergency Power Generation

 

Summary:      During the incident period of May 4 to June 1, 2007, tornados and severe storms caused a disruption of the electrical power supply to the City of Larned.  The City of Larned activated its stand-by generators to provide electric power to its residents until its service provider was able to deliver power again.  FEMA prepared PW 853 for $145,553 at 100 percent Federal funding for power plant operation from May 7-9, 2007.  FEMA also prepared PW 854 for $106,243 at 75 percent Federal funding for power plant operation from May 5-6, 2007.  FEMA approved both projects for funding on October 5, 2007.  On September 18, 2008, FEMA deobligated all Federal funding from PWs 853 and 854 because it determined that the generator costs were increased operating expenses and ineligible under the Public Assistance (PA) Program.

 

The Applicant submitted its first appeal on November 19, 2008, asserting that the operation of the generators was an emergency protective measure and provided temporary and emergency service for critical facilities, businesses, and homes.  The Regional Administrator denied the appeal in a letter dated May 7, 2009, stating that the production of electric power from an alternate source is an increased operations cost and not authorized under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

 

On July 10, 2009, the Applicant submitted a second appeal reiterating its position that the costs incurred were emergency protective measures instituted to eliminate or reduce immediate threat to life, public health, and safety.  The Applicant requests reimbursement of only $46,369, the cost of electricity it produced from May 5-9, 2007.

 

Issues:             1.  Is the cost to purchase electrical power from an alternative source an increased

                             operating cost?

 2.  Are increased operating costs associated with   operating the city backup

     generators eligible under the Public Assistance Program?

 

Findings:         1.  Yes.

                         2.  No.

 

Rationale:       Section 403, Essential Assistance, of the Robert T. Stafford Disaster Relief and Emergency Assistance Act; Public Assistance Guide, FEMA 322.