Emergency Power Generators
Appeal Brief
| Disaster | FEMA-1699-DR |
| Applicant | City of Larned |
| Appeal Type | Second |
| PA ID# | 145-38700-00 |
| PW ID# | 853 & 854 |
| Date Signed | 2010-03-11T05:00:00 |
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.
Appeal Letter
March 11, 2010
Randy Mettner
Executive Officer
Kansas Division of Emergency Management
2800 SW Topeka Boulevard
Topeka, Kansas 66611
Re: Second Appeal-City of Larned, PA ID 145-38700-00, Emergency Power Generators, FEMA-1699-DR-KS, Project Worksheets (PWs) 853 and 854
Dear Mr. Mettner:
This letter is in response to your letter dated August 21, 2009, which transmitted the referenced second appeal on behalf of the City of Larned (Applicant). The Applicant is appealing the U.S. Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) deobligation of funding for the operation of the city’s backup generators to produce electric power.
Background
A series of tornadoes on May 4, 2007, damaged the Midwest Power System’s transmission lines that provided electricity to the City of Larned. Because of the damaged transmission lines, Midwest Power System could not provide electricity to the City of Larned immediately after the tornadoes. The City of Larned activated its standby diesel and natural gas generators to provide electricity to its residents. FEMA prepared PW 853 for $145,553 at 100 percent Federal funding for operating the generators from May 7-9, 2007. FEMA also prepared PW 854 for $106,243 at 75 percent Federal funding for operating the generators for the period of May 5-6, 2007. FEMA approved both projects for funding on October 5, 2007. The PWs included overtime costs for the Applicant’s regular employees and an hourly rate for each generator used. FEMA deobligated PWs 853 and 854 on September 18, 2008, because it determined that the costs for using the generators were increased operating expenses and ineligible under the Public Assistance (PA) Program.
The Applicant submitted its first appeal on November 19, 2008, requesting that FEMA reconsider the deobligation of funds from PWs 853 and 854. The appeal asserted 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 cost to obtain 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 lives and public health and safety. The Applicant requested reimbursement of $46,369.
Discussion
The cost to implement emergency protective measures pursuant to Section 403 of the Stafford Act is eligible for reimbursement. FEMA has determined that the provision of emergency power to critical facilities is an eligible emergency protective measure. However, the provision of emergency power to the entire city is not considered an emergency protective measure.
The Applicant used its own its backup generators to provide electricity to the entire community after the tornado disrupted electricity from its primary source. The Applicant did not provide any documentation regarding the cost of providing electricity to critical facilities in the city. The cost associated with operating the backup generators for replacement power does not represent an emergency protective measure that was necessary to reduce immediate threats to lives and public health and safety, but instead is an increased operating expense. FEMA does not provide funding for increased operating expenses resulting from a disaster. The Public Assistance Guide, FEMA 322 (Page 54-55), states that the increased cost that an applicant incurs to obtain electric power from an alternate source is not eligible under the Public Assistance Program.
Conclusion
I have reviewed all of the information submitted with the appeal and determined that the Regional Administrator’s decision on the first appeal is consistent with program statute and regulations. Accordingly, I am denying this appeal.
Please inform the Applicant of my decision. This determination constitutes the final decision on this matter pursuant to 44 CFR §206.206 Appeals.
Sincerely,
/s/
Elizabeth A. Zimmerman
Assistant Administrator
Disaster Assistance Directorate
cc: Beth Freeman
Regional Administrator
FEMA Region VII