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Second Appeal Brief
PA ID# 009-UNSNJ-00; Trimble Township Wastewater Treatment District
PW ID# 982; Operation of Fixed Generators
Citation: FEMA-4077-DR-OH, Trimble Township Wastewater Treatment District, Operation of Fixed Generators
Cross-Reference: Increased Operating Costs
Summary: During the incident period of June 29 through July 2, 2012, strong winds and severe storms produced extensive damage throughout Trimble Township causing downed utility lines and widespread power outages for multiple days. The Trimble Township Wastewater Treatment District (Applicant) utilized five fixed generators and two portable generators during the event to support emergency protective measures at the wastewater treatment plant, main lift station, and remote lift stations. FEMA prepared Project Worksheet (PW) 982 to fund the force account labor costs associated with emergency protective measures, fuel for the fixed generators, and usage of the temporary generators based on FEMA equipment rates. FEMA obligated $8,187 to the PW on December 19, 2012. Because five of the generators were fixed generators, FEMA did not reimburse the use of those five generators based on FEMA’s schedule of equipment rates, but reimbursed the fuel costs ($3,351). The Applicant submitted a first appeal for $16,947, asserting that reimbursement for the fixed generator usage should be based on FEMA’s schedule of equipment rates. The FEMA Region V Regional Administrator denied the first appeal, explaining that the depreciation and ownership costs of permanently mounted generators are built into the cost of operating the facility. The Applicant submitted a second appeal, for $16,947, reiterating its request for FEMA to apply equipment rates in reimbursing the costs of operating the fixed generators. The Applicant included photographs of the generators and a copy of the Applicant’s insurance policy for the generators with its appeal. The Grantee’s second appeal transmittal letter states that the Applicant’s insurance covers the generators but that the Applicant does not budget for replacement for the generators. The Grantee further states that the generators are affixed to concrete slabs outside of each facility, and the generator ownership costs are separate and distinct from those of each facility. The Grantee’s letter also cites a second appeal under FEMA-EM-3288-FL, dated January 17, 2012, involving a Miami-Dade County, Florida, project for which FEMA funded fixed generator costs using FEMA’s schedule of equipment rates.
Issues: 1. Is Applicant’s usage of fixed generators as emergency protective measures eligible for reimbursement under the Public Assistance program?
2. Are FEMA equipment rates appropriate for reimbursing fixed generator usage?
Findings: 1. Yes. The Applicant’s costs for usage of fixed generators are eligible.
2. No. Equipment rates include ownership costs. The only increased cost associated with the usage of fixed generators is the cost of the fuel used.
Rationale: 44 CFR § 206.226; Public Assistance Guide (FEMA 322), pages 54-55, 85; Public Assistance Digest (FEMA 321), page 135