Operation of Permanently Mounted Generator

Conclusion:  The Putnam County Emergency Management Agency’s permanently mounted generator costs are eligible; however, the eligible cost associated with that usage is limited to the cost of the fuel consumed during the performance of eligible work.

Summary Paragraph

During the incident period of June 29 through July 2, 2012, strong winds and severe storms produced extensive damage, causing downed utility lines and widespread power outages for multiple days.  The Putnam County Emergency Management Agency (Applicant) utilized two temporary generators and one permanently mounted generator during the event to support emergency protective measures at a telephone company, St. Rita’s Medical Center, and the EMS/EMA station.  FEMA prepared Project Worksheet (PW) 872 for $7,631.00 to fund the temporary generators and fuel for the permanently mounted generator.  FEMA did not reimburse the usage of that generator based on FEMA’s schedule of equipment rates.  The Applicant submitted a first appeal for $2,152.05 requesting that FEMA use equipment rates for the permanently mounted generators to determine eligible funding, because its permanently mounted generator was housed in a leased facility.  The Regional Administrator denied the first appeal, explaining that the ownership costs of permanently mounted generators are built in to the cost of operating the facility.  The Applicant maintains that it leases the facility where the permanently mounted generator is located and it owns the generator.

Authorities and Previous Appeals Discussed

• Stafford Act §403,  42 U.S.C. § 5170b(3)
• 44 C.F.R. § 206.226
• Public Assistance Guide, FEMA 322 (June 2007), pages 54-55, 85
• Public Assistance Digest, FEMA 321 (Jan. 2008), page 135
• FEMA-DR-4077-OH, Trimble Township Wastewater Treatment District (Jan. 17, 2014)

Headnotes

• 42 U.S.C. § 5170b(3) and 44 CFR § 206.225(a)(3) provide that generally, those prudent actions taken by an Applicant to ensure the continuation of essential public services and protect lives and public health are eligible for assistance.
• FEMA 322, Public Assistance Guide (June 2007), at 54-55 provides that the cost of obtaining power from alternate sources is considered an increased operating expense and is not eligible.  The guidance does provide an exception for increased operating costs constituting “reasonable short-term additional costs to an applicant that are directly related to accomplishing specific emergency health and safety tasks as part of eligible emergency protective measures.”
  • Application of this guidance necessitates a distinction between temporary and permanently mounted generators.
  • FEMA reimburses the use of temporary generators based on FEMA equipment rates or similar set rates. 
  • FEMA does not reimburse the use of permanently mounted generators based on equipment rates.  However, if permanently mounted generators are used in the performance of eligible emergency work, FEMA will reimburse the fuel consumed during the performance of that work.