FEMA and FHWA Emergency Relief Funds Reimbursements to State Departments of Transportation (2015)

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20 (Emergency Relief Manual 2013, p. 13). However, permanent repairs require prior approval, and the federal cost share for permanent repair typically is a minimum of 90% for Interstate and 80% for non-Interstate federal-aid highways. There is a sliding scale for states with higher percentages of federally owned public lands (Emergency Relief Manual, p. 52). The Stafford Act establishes a federal cost share for the FEMA PA program that is not less than 75% of the eligible costs for both emergency work and permanent restoration [Public Assistance Applicant Handbook (FEMA P-323) 2010, p. 6]. Furthermore, eligibility criteria and minimum thresholds, reimbursement rate schedules, and application procedures, including docu- mentation requirements, also vary. Table 3 highlights these differences. FEDERAL EMERGENCY MANAGEMENT AGENCY PUBLIC ASSISTANCE PROGRAM The Stafford Act authorizes the president to assist states and local public agencies (LPAs) when disasters and emergencies occur. The last update to the Stafford Act was in April 2013. This assistance is coordinated and delivered through the FEMA PA program. The 2010 Public Assistance Applicant Handbook (FEMA P-323) describes the policies and applica- tion procedures of the program. The contents of the Public Assistance Applicant Handbook (2010) include details on eligibility requirements, categories of emergency and per- manent work, funding options, how agencies are paid by FEMA, project worksheets and documentation requirements, cost estimation, project changes and appeals processes, proj- ect closeout, and audits. Supplemental information about special considerations is provided in the Appendices to the Handbook. SRIA of 2013 (Division B of PL 113-2) was signed into law on January 29, 2013. The SRIA law pertains to perma- nent work and debris removal, and adds section 428 to the Stafford Act. The affected components are sections 403(a) (3)(A), 406, 407, and 502(a)(5) of the Stafford Act. SRIA authorizes a pilot program that allows applicants to use alter- native procedures for permanent work and debris removal projects eligible under the FEMA PA program. This pilot program applies to major disasters declared on or after May 20, 2013, and for projects under previously declared disas- ters for which permanent work has not yet started. The pilot will continue until FEMA establishes implementing regula- tions. The pilot program for debris removal applies to major Chapter two describes the Federal Emergency Management Agency Public Assistance (PA) and the FHWA Emergency Relief (ER) programs and some of the key changes being made to the programs by FEMA and FHWA. FEMA is mak- ing improvements and changes to the FEMA PA program through the Sandy Recovery Improvement Act (SRIA) and its Alternative Procedures Pilot Program. FEMA’s most recent handbook for applicants is FEMA P-323, the Public Assistance Applicant Handbook (2010). FEMA’s PA Divi- sion is engaged in an endeavor to update and consolidate all policies and program and process guidance into a single reference document (FEMA Headquarters Public Assistance Division Staff, personal communication, April 30, 2014). FHWA’s most recent ER program manual, the Emergency Relief Manual (Federal-Aid Highways), is dated May 31, 2013, and contains program changes made by MAP-21 (PL 112-141). FHWA is also updating its guidance to its Division Offices on the FHWA ER program based on the National FHWA ER Review. Furthermore, FHWA and FEMA are seeking to align elements of the two programs and state procedures with the assistance of the APWA (FHWA Construction and Contract Administration Team Leader and FEMA Head- quarters Public Assistance Division Staff, personal com- munication, June 6, 2013). The information contained in this chapter reflects FEMA and FHWA guidance, pertinent legislation and Code of Fed- eral Regulations (CFR), and the information review includ- ing information received from FHWA ER and FEMA PA program representatives. Because these changes are ongoing, it is advisable for state DOTs to check up-to-date guidance on program elements to confirm their accuracy. In addition, brief descriptions of FEMA’s Fire Manage- ment Assistance Grant (FMAG) program and Hazard Miti- gation Grant Program (HMGP) are provided in this chapter. The FHWA ER and FEMA PA programs have significant differences. The FHWA ER program addresses federal- aid highways, whereas the FEMA PA program is broad in scope. In addition, the Stewardship/Oversight Agreements required by Section 106 (“Project Approval and Oversight”) of United States Code (U.S.C.) Title 23 designate state DOTs to be administrators of the FHWA ER program. Federal cost shares are different for each program. FHWA’s eligible costs are funded at 100% if repairs are completed within 180 days chapter two FEDERAL EMERGENCY REIMBURSEMENT PROGRAMS

21 disasters declared on or after June 28, 2013. Participation in the pilot programs by subgrantees is voluntary and on a project-by-project basis (Public Assistance Alternative Pro- cedures, Version 2 2013, p. 2). The goals for the alternative procedures, as stated in PL 113-2, are to further the following goals: (1) reducing the costs to the Federal Government of providing such assistance; (2) increasing flexibility in the administration of such assistance; (3) expediting the provision of such assistance to a State, tribal or local government, or owner or operator of a private non- profit facility; and (4) providing financial incentives and disincentives for a State, tribal or local government, or owner or operator of a private nonprofit facility for the timely and cost-effective completion of projects with such assistance (Sandy Recovery Improve- ment Act, U.S.C. Title 42, § 5189f “Public assistance program alternative procedures”). Grantee and Subgrantee The grantee is a state or tribal government, usually the state emergency management agency (EMA), responsible for administering the FEMA PA grants. The subgrantee is an eligible applicant who receives a FEMA PA reimburse- ment grant for performing eligible disaster work. State DOTs and LPAs are considered subgrantees. A funding agreement needs to be executed between the grantee and subgrantee, Program Elements FEMA Public Assistance FHWA Emergency Relief Facility Non federal-aid facilities, except for debris Roads and bridges on federal-aid highways Cause Major disaster or emergency Natural disaster, catastrophic failure due to external cause Cause—Fire If there is an uncontrolled forest, woodland, or grassland fire, consider seeking FEMA FMAG funding. Declaration required Presidential declaration Presidential declaration or governor’s declaration/proclamation Declaration impact indicators/minimum thresholds Impact indicators: Statewide per capita impact indicator, $1.39; countywide per capita impact indicator, $3.50 (cf. 44 CFR 206.48; impact indicators updated annually in the Federal Register) Minimum thresholds for federal share: $700,000 statewide [23 CFR 668, Subpart A; exceptions are listed in 23 CFR 668.105(j)] Scope N/A Wide area affected (e.g., multiple counties) Project size Differentiates between small and large projects Does not differentiate between small and large projects Applicant Subgrantees: state and local governments, tribes, eligible PNP State DOT Emergency repair/work (federal share) Minimum of 75% (p. 2, FEMA P-323, 2010) 100% (p. 13, ER Manual, 2013) Permanent restoration (federal share) Minimum of 75% (p. 2, FEMA P-323, 2010) Minimum of 90% for Interstate, 80% for other federal-aid highways. (p. 52, ER Manual, 2013) Project form Project worksheet usually prepared by FEMA DDIR/DAF completed by state DOT Documentation retention Minimum of 3 years from the date of the final status report Minimum of 3 years after FHWA’s closeout of final voucher N/A = not applicable. Minimum per project for FEMA PA projects has been increased from $1,000 to $3,000. For FEMA PA projects, the president may increase the federal share and occasionally has done so for limited emergency work if severe damage is noted (e.g., Hurricane Sandy in 2012 and the Gulf Coast disasters of 2005). Further, there is a federal cost share increase under standard procedures for alternate projects (FEMA Headquarters Public Assistance Division Staff, April 30, 2014). Note that the state determines how the nonfederal share is assigned to each of its subgrantees. TABLE 3 FEMA PA AND FHWA ER PROGRAM ELEMENTS

22 and the project needs to be funded or obligated before any funds can be disbursed (“Public Assistance Grant Program Briefing” 2013). The FEMA PA process involves the key steps shown in Figure 6. After a disaster event has occurred, a preliminary damage assessment (PDA) is performed and a governor’s request, which includes the results of the assessment, is made to FEMA. Some states may also perform a pre-PDA wind- shield assessment to ensure that there are sufficient damages. Upon review and recommendation of the FEMA administra- tor, a presidential declaration is issued, which may authorize funding under the FEMA PA program. The grantee conducts an applicants’ briefing, in which information about the FEMA PA process is provided to state DOTs, LPAs, and other applicants. The request for assistance is formally submitted, and FEMA and the grantee meet with each eligible applicant at kickoff meetings to discuss dam- aged facilities and recovery strategies. Then project formula- tion occurs with the development of the project worksheets (PWs). When the PWs have been successfully reviewed, the project is approved and funding becomes available to the state EMA. The state EMA then disburses the funding at appropri- ate times to the subgrantee, the state DOT. Once the project has been completed, the state EMA performs final inspection, verifies that work was completed, and closes out the project (“Public Assistance Grant Program Briefing” 2013). Expedited Payments Individual applicants may request expedited payments for projects without special considerations. FEMA then obli- gates 50% of the federal share of the estimated cost of emer- gency work. Payment will be made no later than 60 days after the declaration date and 90 days after the completion of the preapplication form [Public Assistance Applicant Hand- book (FEMA P-323) 2010, p. 11]. FHWA EMERGENCY RELIEF PROGRAM The purpose of FHWA ER funds is to provide reimbursement for the cost of repairing or reconstructing federal-aid facilities damaged by a natural disaster or catastrophic failure. There are two FHWA ER methods, traditional and quick release, based on the damage assessment method used (see Table 4). Under the traditional expedited method, damage assess- ment teams conduct detailed site assessments and develop Detailed Damage Inspection Reports (DDIRs). Once the program of projects containing all DDIRs is approved by the FHWA Division Office, permanent repair work may begin (Emergency Relief Manual 2013, p. 48). The disaster assess- ment methods and DDIR development and documentation procedures are described in subsequent sections of this chapter. Quick Release Method The quick release process is used in large disasters, such as Hurricane Sandy, for which FHWA ER eligibility is apparent. The process was revised on October 2, 2013, to streamline the process of FHWA ER funds allocation. Expedited quick release amounts have averaged between $1 and $2 million. Follow-up quick releases are allowable. The U.S. secretary FIGURE 6 Public Assistance process flowchart (Source: “Public Assistance Grant Program Briefing” 2013).

23 of transportation may initiate a quick release funding alloca- tion request based on oral communications with state DOTs. (The method described in the 2013 Emergency Relief Manual required a request letter addressed to the Division Office.) The initial assessment process requires only media reports and aerial surveys. The FHWA Division Office then obli- gates the funds once FHWA ER eligibility is determined. If the FHWA ER funds are not obligated within 6 months of the allocation date, FHWA may withdraw them (Waidelich 2013). The obligation process is depicted in Figure 7. Two Disasters Treated as One If two disasters occur closely in time at similar locations, they may be combined into one disaster for the purpose of FHWA ER funding because the cause of the damages may be indis- tinguishable. This combination method streamlines the pro- cessing of the DDIRs and the needed repair projects because only one approval would be needed for projects affected by both disasters. It should be noted that the 180-day period for 100% federal reimbursement starts from the date of the earlier disaster (Emergency Relief Manual 2013, p. 34). Program of Projects A program of projects (PoP) must be submitted by the state DOT to the FHWA Division Office as soon as it is available. A PoP lists emergency repair work and proposed permanent repair projects. Once the PoP is approved by the FHWA Division Office, the state DOT may proceed with the permanent restoration projects. If FHWA ER funding is an issue, Congress may appropriate additional FHWA ER funds (Emergency Relief Manual 2013, p. 48). Otherwise, other funding options (e.g., regular federal-aid highway funds) may be considered. Funds allocated but not obligated during a fiscal year will be withdrawn (p. 46). In addition, the Division Administrator reserves the right to undertake final inspections on all FHWA ER projects (p. 50). ROLES AND RESPONSIBILITIES Roles and responsibilities of key FEMA and FHWA person- nel are described in this section. FEMA • FEMA Regional Administrator (RA)—Reviews results of PDAs and sends the governor’s declaration request to the FEMA Administrator, who then makes a recommen- dation to the president. Adjudicates first-level appeals and grants time extensions when appropriate. The FEMA RA may also be appointed as the Disaster Recovery Manager (DRM). • Federal Coordinating Officer (FCO)—The FCO, the primary federal representative for Stafford Act events, executes Stafford Act authorities and issues mission assignments to other federal departments or agencies. • State/Tribal/Territorial Coordinating Officer (SCO/TCO) and other local, state, tribal, territorial, and insular area response officials interact with the FCO to determine the priority of needs and set objectives. FHWA ER Method Description Time Required Traditional Detailed inspections for most sites 6–10 weeks Traditional expedited Windshield survey or sampling of sites (at least one site per county is visited) 2–3 weeks Quick release (revised October 2, 2013) $1 million–$2 million on average; follow-up releases based on oral communications with FHWA Division Administrator Immediate (1–2 days) Sources: Emergency Relief Manual (2013); “Special Federal-aid Funding” (2013). TABLE 4 COMPARISON OF TRADITIONAL AND QUICK RELEASE METHODS FHWA notifies the Congressional authorization and appropriations committees of the requested amount. The Congressional committees make the allocation to the FHWA. FHWA uploads the allocation to the Fiscal Management Information System (FMIS). FHWA Division Office obligates the funds through the FMIS to the state DOT. FIGURE 7 Obligation process flowchart (Source: Waidelich 2013).

24 • Public Assistance Officer (PAO)—The federal official specifically responsible for administering the FEMA PA program during disaster operations; advises the FCO, manages staff operations, coordinates with other arms of federal disaster recovery, and works with state counter- parts to ensure that applicant needs are met. (A state PAO with similar responsibilities is also designated and has additional responsibilities of informing and educating applicants and resolving problems.) • State Representative (also Applicant Liaison or State Liaison)—Provides applicants with specific informa- tion on state regulations, documentation and reporting requirements as well as technical assistance. • Disaster Recovery Manager (DRM)—Coordinates the FEMA recovery programs for the disaster. • FEMA PA Group Supervisor—Manages the FEMA PA program at the JFO; coordinates with other federal agen- cies and state counterparts, and ensures compliance with laws, regulations and policies. • FEMA PA Crew Leader—Assists on the details of the reimbursement process and answers questions regard- ing eligibility and project cost approvals. Reviews and approves project worksheets. • Public Assistance Coordinator (PAC)—Assists appli- cants from declaration to funding approval. The PAC also manages the case management file and records of meetings, conversations, and special issues. • Project Officer (PO)—Works with the applicant to develop scopes of work and cost estimates for large projects. The PO is knowledgeable about eligibility and special consideration issues. • Project Specialist—Works with grantee and subgrantee to assess damage, develop scopes of work, estimate costs, and prepare project worksheets. Submits them to the Public Assistance Crew Leader. • Technical Specialist—Assists with special issues, includ- ing debris, insurance, cost estimation, hazard mitigation, historic preservation, environmental compliance, and flood plain management [Public Assistance Applicant Handbook (FEMA P-323) 2010, p. 4; “Public Assistance Roles and Responsibilities” 2014; Recovery Federal Inter agency Operational Plan 2014]. State Emergency Management Agency The state is usually the grantee and manages the FEMA PA program jointly with FEMA [Public Assistance Applicant Handbook (FEMA P-323) 2010, p. G-3]. Once funds have been obligated to the state, the state will be responsible for the management and disbursement of the funds (p. 10). LPAs LPAs are among the public entities that are eligible appli- cants [Public Assistance Applicant Handbook (FEMA P-323) 2010, p. 7]. As such, in FEMA PA subgrant applications, LPA officials must identify damages and provide sufficient infor- mation to FEMA so that a scope of work and cost estimate may be developed (p. 35). For the FHWA ER program, LPAs have limited institutional requirements. LPAs do not provide information directly to the FHWA but work through state DOTs to provide required FHWA ER documentation (FHWA Construction and Contract Administration Team Leader, per- sonal communication, June 6, 2013). FHWA According to the 2013 Emergency Relief Manual, FHWA’s responsibilities include the following: 1. Administer the ER (Emergency Relief) program through coordination and implementation of disaster relief policies and procedures; 2. Provide assistance to State, Federal or other highway agen- cies in applying for funds and determining eligibility; and, 3. Support the State, Federal or other highway agencies in the technical review, design, repair, and reconstruction of dam- aged highway facilities (Emergency Relief Manual 2013, p. 1). When a disaster occurs, the FHWA Division Office con- tacts the state DOTs to determine if an FHWA ER-eligible event has likely occurred, if FHWA ER funds will be requested, and if there is a need for a quick release of funding. A Disas- ter Coordination Engineer for the particular disaster will be assigned. FHWA Division Office engineers provide guid- ance on project formulation, approve DDIRs, and also per- form final inspections. Allocation requests are sent from the FHWA Division Office to Headquarters and, once approved, they are sent to the appropriate congressional committee. State DOT Main Office Role State DOTs administer the FHWA ER program on behalf of the FHWA. They will review and approve the DDIRs submitted by LPAs and disburse the reimbursements to the LPAs. If the state DOT meets the funding threshold, it will request reimbursement from FHWA. The 2013 Emergency Relief Manual states that all requests should be consistent with billing procedures followed for other federal-aid proj- ects; the procedures are contained in the Federal-aid Policy Guide, 23 CFR Part 140. The 2013 Emergency Relief Man- ual states that all billings “should result from the project cost records and the accounting system” (Emergency Relief Manual 2013, p. 38). FEDERAL EMERGENCY MANAGEMENT AGENCY DECLARATION PROCESS The president must issue a major disaster or emergency dec- laration before FEMA can provide disaster assistance through the FEMA PA program. FEMA considers factors such as the severity, magnitude, and impact of a disaster event before making a recommendation to the president.

25 Generally, the request for a presidential declaration is received by the FEMA regional office from the governor. The governor needs to “certify that the severity and magnitude of the disaster exceed state and local capabilities; certify that Federal assistance is necessary to supplement the efforts and available resources of the state and local governments, disaster relief organizations, and compensation by insurance for disas- ter related losses; confirm execution of the state’s emergency plan; and certify adherence to cost sharing requirements” (“Declaration Process Fact Sheet” 2012). The governor will contact the state DOT and other agencies to determine the extent of the damage. Note that per SRIA, presidential decla- ration requests can also be issued by tribes. FEMA and the state EMA conduct a PDA to assess dam- ages along with estimates of emergency and permanent work and estimate the needed federal assistance before the gov- ernor’s request. State DOTs may request to participate in the PDAs. After the PDAs have been performed, the FEMA RA reviews and sends the governor’s declaration request to the FEMA Administrator, who then makes a recommenda- tion to the president. Once a major disaster declaration has been issued, a JFO is established. When there is a significant event, the declaration process may be expedited. The FEMA RA or one of his or her staff will be appointed as the DRM, who will coordinate FEMA programs for the disaster. Appendix B provides sample presidential major disaster declarations, along with a list of recent declarations for case example states. Appendix J contains data analyses based on information provided by FEMA Headquarters. FEMA Headquarters Public Assistance Division Staff provided data that present the number and type of declara- tions with subgrant applications for the period from Octo- ber 1, 2007, to October 24, 2012 (see Appendix J). According to an analysis of these data from FEMA, most declarations have been severe storms (62.5%), whereas hurricanes have comprised 11.7%, floods (8.5%), and snow (8.5%) of the declarations. However, the proportion of event types vary based on region and state. As shown in the chart “Event Type by FEMA Region” in Appendix J, Region IV, followed by Region I and Region III, had the highest number of declarations. All regions experienced severe storms and flooding, and in fact the most common dec- larations in most regions were for severe storms. Region VI had the largest variety of declaration types. Region IX had the greatest proportion of fire declarations, and Region III had the greatest proportion of snow declarations. Project amount and obligated amount data by state are presented in Appendix J. Total project amount per state for the period October 1, 2007, to October 24, 2012, ranged from $17,705 to $95,350,755. The average project amount was $12,726,732. Total obligated amounts per state ranged from $4,093 to $73,101,212. The average obligated amount was $9,320,303. ELIGIBILITY CRITERIA The eligibility criteria for FEMA PA and FHWA ER are simi- lar but not the same. Both programs differentiate between emergency work and permanent work, and define emergency work similarly. The FHWA ER program permits restoration of highways to a “comparable facility,” a change based on MAP-21 legislation, whereas the FEMA PA program allows restoration to “pre-disaster design, capacity and function.” Table 5 presents a summary of the eligibility criteria for each program: FHWA ER Program Eligibility Criteria FHWA ER eligibility criteria are discussed in this section. The criteria may be categorized into eligible cause, eligible elements, and eligible work. Eligible work may be emer- gency repairs or permanent repairs. Also described are work completion methods, including force account, solicited con- tract, and negotiated contract. Eligible Cause To be eligible for FHWA ER funding, the disaster event must have been caused by a natural event or catastrophic failure. More specifically, the natural occurrence must have been “sudden, unusual, and caused serious damage to Federal-aid highways” and “the extent of serious damage to Federal-aid highways must cover a wide area (CFR, Title 23, § 668.105)” (Emergency Relief Manual 2013, p. 36). The disaster event must also have inflicted “unusual heavy economic loss to the State and its subdivisions or other organizations or agencies.” A catastrophic failure is “the sudden failure of a major element or segment of a Federal-aid highway due to an external cause.” It must not have been primarily caused by a lack of maintenance or gradual and progressive deterioration. Eligible Elements As stated in the 2013 Emergency Relief Manual, “all elements within the cross section of a highway that are damaged as direct result of a disaster are eligible for repair under the ER (Emergency Relief) program” (p. 3). Such elements include pavement, shoulders, slopes, embankments, guardrail, signs, traffic control devices, bridges, culverts, bike and pedestrian paths, fencing, and retaining walls. The damages must have been caused by a natural disaster or catastrophic failure from an external cause. Preexisting damages or nondisaster-related damages are not eligible (p. 3). Eligible Repair Work The purpose of FHWA ER funds is to provide reimbursement for the cost of repairing or reconstructing a comparable facility.

26 A comparable facility is defined as “a facility that meets the current geometric and construction standards required for the types and volumes of traffic that the facility will carry over its design life” (Emergency Relief Manual 2013, p. 2). An example would be the addition of a feature, such as a guard- rail, that is now required because of a change in standards used by the state DOT. However, the addition of a travel lane would be considered a betterment, which would require additional support. Eligible repair work is categorized into emergency repairs and permanent repairs. Emergency Repairs The 2013 Emergency Relief Manual notes that state DOTs and LPAs “should begin emergency repairs immediately to restore essential traffic service and to prevent further damage to Federal-aid highway facilities” (Emergency Relief Manual 2013, p. 30). Prior FHWA authori- zation is not needed to begin emergency repairs, which may be completed by force account, negotiated contract, or solicited contract. Work completion methods are described on page 53 of the FHWA Emergency Relief Manual. The 20 items of eligible work are described in the 2013 Emergency Relief Manual (pp. 3–16). Fourteen items are also Measure Needed FEMA PA FHWA ER Emergency work/repair Categories A and B: performed “before, during, and following a disaster to save lives, protect public health and safety, or eliminate immediate threat of significant damage to improved public and private property through cost effective measures” (FEMA P-323 2010, p. 14) Performed during or immediately after a disaster to Restore essential traffic, Minimize the extent of damage, or Protect the remaining facilities (ER Manual 2013, p. 3). Debris removal (Category A) Debris removal from non–federal-aid highways. Given a presidential declaration and a FEMA determination, removal of debris from federal-aid highways may be eligible under sections 403, 407, or 502 of the Stafford Act. Requirements in 44 CFR 206.224 apply (ER Manual 2013, p. 10). Debris removal under certain circumstances. Disaster-related debris removal that is eligible for FEMA funding is not eligible for FHWA ER funds (ER Manual 2013, p. 10). Emergency protective measures (Category B) Examples include: Emergency evacuations Protection for an eligible facility Security in the disaster area Warning of risks and hazards (FEMA P-323 2010, p. 14) N/A Permanent work/repair Must repair, restore, or replace disaster- damaged facilities in accordance with regulations Must restore to predisaster design, capacity, and function in accordance with applicable codes and standards (FEMA P-323 2010, p. 15) Must be required as a result of the disaster (FEMA P-323 2010, p. 6) May include cost-effective hazard mitigation measures (FEMA P-323 2010, p. 23) Project improvements or alternative projects may be proposed Undertaken after a disaster to restore the highway to a comparable facility. Comparable facility is defined as “a facility that meets the current geometric and construction standards required for the types and volumes of traffic that the facility will carry over its design life” (ER Manual 2013, p. 2). Note that “[f]eatures that will improve the resilience of repaired federal aid highways should be considered and evaluated consistent with risk, cost effectiveness and regulatory conditions” (ER Manual 2013, p. 60). Eligible cause Presidentially declared disaster or emergency (FEMA P-323 2010, p. 1) Natural disaster or catastrophic failure (ER Manual 2013, p. 1). Eligible elements Non–federal-aid highways (except for debris removal) and other facilities Elements within the cross section of a federal- aid highway (ER Manual 2013, pp. 1 and 3). N/A = not applicable. Sources: Emergency Relief Manual 2013; “Special Federal-aid Funding” 2013. TABLE 5 ELIGIBILITY CRITERIA FOR FEMA PUBLIC ASSISTANCE AND FHWA EMERGENCY RELIEF PROGRAMS

27 explicitly declared as ineligible for FHWA ER (pp. 16–20). Betterments incorporate added protective measures or mod- ify the function or character of the facility and thus require justification (p. 24). Equipment Rates The 2013 Emergency Relief Manual advises that FHWA-approved rates or the state DOT’s established rates be used but not a combination of both. If equipment is rented, the Manual notes that the rates should be reasonable based on the Associated Equipment Distributors Manual or a recognized agency (p. 15). Permanent Repairs Permanent repairs may involve design work and geotechnical and other engineering studies and environmental reviews. They are preceded by emergency repairs unless the permanent repair is “the most economical and feasible” way to restore traffic (p. 21). According to the 2013 Emergency Relief Manual, the following are the types of permanent repair projects performed using FHWA ER funds. Types of Permanent Repair Projects • Restoration in-kind is the project type most often chosen by applicants for FHWA ER-funded permanent repair work. Any additional protective features or changes to the function or character from the predisaster facility require justification (e.g., cost, feasibility, resiliency) (p. 22). • Replacement in-kind is chosen if restoration in-kind is not technically or economically feasible. FHWA rec- ommends applicants consider incorporating features that will enhance resiliency (p. 23). • Betterments “are added protective features or changes that modify the function or character of a facility from what existed prior to the disaster or catastrophic fail- ure” (p. 24). FEMA PA Program Eligibility Criteria To be eligible for FEMA PA funding, the roadway, bridge, or other facility must meet criteria in the following categories: facility, work, cost, and applicant. As public entities, state DOTs and local public agencies are eligible applicants. Facility-related criteria are as follows: • It must be the legal responsibility of the eligible applicant; • It must have been in active use at the time of the disaster; • It must have been damaged as a result of the declared disaster; and • It must be located in the designated disaster area. Work-related criteria are as follows: • It must be the applicant’s responsibility; • It must not be under the authority of another federal agency (e.g., FHWA); • It must be disaster related; and, • It must be located in the designated disaster area. FEMA PA Work Categories FEMA PA Work Categories A (debris removal) and B (emer- gency protective measures) are considered emergency work. Category C (roads and bridges) is considered permanent work. In the period from October 1, 2007 to October 24, 2012, state DOT PA PW data indicate that most state DOT PWs have been Category C, followed by Category B and Category A. These data were provided by the FEMA Headquarters Public Assistance Division Staff (see Appendix J). The distribution of state DOT PWs by category is shown in Figure 8. When the data were analyzed by region, Category C dom- inated projects in Regions I, II, III, and IV. For Regions II, III, and IV, the next two highest categories were Category A (debris removal) and B (emergency protective measures). For Region I, they were Category G (recreational or other) and Category B (emergency protective measures). For the remain- der of the regions except Region IX, Category B (emergency protective measures) appears to dominate. FEMA PA Work Categories by state for the period from October 1, 2007, to October 24, 2012, are presented in Appendix J. Category A Emergency Work, Debris Removal. This work is eligible in the following cases: • It eliminates “an immediate threat to life, health, and safety,” • It eliminates “immediate threats of significant damage to improved public or private property when the mea- sures are cost-effective,” • It ensures “the economic recovery of the affected com- munity to the benefit of the community-at-large,” or • It mitigates “the risk to life and property by removing substantially damaged structures as needed to con- vert property acquired using FEMA hazard mitigation program funds to uses compatible with open space, recreation, and wetland management practices” [Pub- lic Assistance Applicant Handbook (FEMA P-323) 2010, p. 13]. New debris removal work alternative procedures were established as part of the SRIA alternative procedures in 2013. These procedures include the following: • Permits applicants to retain income from debris recy- cling without an offset from their grant. • Allows the use of a sliding scale for applicants’ debris removal cost share to incentivize speedier and more cost-efficient debris removal. • Permits the establishment of financial incentives for a FEMA-approved predisaster debris management plan and at least one prequalified debris contractor.

28 • Permits the reimbursement of straight time force account labor costs for applicants’ employees performing debris removal work (“Sandy Recovery Improvement Act of 2013 and FEMA’s Recovery Directorate—Fact Sheet” 2013). Because MAP-21 has instituted changes with regard to Category A (debris removal eligibility), it is advisable to check for updated guidance. Category B Emergency Work, Protective Measures. This work includes actions that are taken “before, during, and after a disaster to eliminate/reduce an immediate threat to life, public health, or safety, or to eliminate/reduce an imme- diate threat of significant damage to improved public and private property through cost-effective measures” (“Public Assistance: Eligible Work” 2013). Category C Permanent Work, Roads and Bridges. This work is the category of permanent restoration that is most applicable to state DOTs. Cost-Related Criteria Costs must be: • Reasonable and necessary to accomplish the work; • Compliant with federal, state, and local requirements for procurement; and • Reduced by all applicable credits, such as insurance proceeds and salvage values (“Eligible Costs” 2012). According to the FEMA Public Assistance Guide [FEMA 322] (2007), the following categories of costs may be eligible: • Labor (p. 42) • Materials (p. 48) • Equipment (p. 48) • Contracts (p. 51) • Project supervision and grant management costs (p. 61). Some categories of cost are explicitly not eligible (for example, loss of revenue and surveys for damage) (p. 55). Other categories of cost offset or reduce the replacement cost (such as salvage value and mutual aid agreements) (p. 50). Equipment Rates FEMA’s schedule of equipment rates for applicant-owned equipment in good condition with any required attachments is available on FEMA’s website at http://www.fema.gov/schedule-equipment-rates (“Schedule of Equipment Rates” 2013). The FEMA equipment rates include ownership and operation of equipment, including depreciation, overhead, all maintenance, field repairs, fuel, lubricants, tires, and OSHA equipment and are also included in the PW workbook. Labor All types of labor expense—regular, temporary, part- time, and volunteer—are to be documented. It is important to differentiate between regular and overtime hours. For emergency protective measures, work and debris removal performed by force account labor, straight time force account FIGURE 8 Public Assistance work categories (Courtesy : State DOT Public Assistance Project Worksheets Data, October 1, 2007–October 24, 2012, provided by the FEMA Headquarters Public Assistance Division Staff).

29 labor costs can now be reimbursed by FEMA under the SRIA pilot program, provided the work is not typically performed by the workers (“Sandy Recovery Improvement Act of 2013 and FEMA’s Recovery Directorate—Fact Sheet” 2013). It should be noted that FEMA will not pay for disaster work if payment is contingent on receiving FEMA PA funding. FEDERAL EMERGENCY MANAGEMENT AGENCY AND FHWA MINIMUM PROJECT THRESHOLDS Table 6 lists the minimum site thresholds for the FEMA PA and FHWA ER programs. The estimated or actual cost of the work for a site must be greater than or equal to the minimum thresholds for each program. Combining of sites (grouping) is allowed for sites with similar damage within a reasonable distance and efficiency in contracting out the repair work and/or similarity in corridor features, but each site’s eligi- bility must still be documented individually to determine its dollar amount. For both programs, if any other program or insurance covers the damage, it will be ineligible for reim- bursement or reimbursement will be reduced by the amount of the insurance. FEMA and FHWA Project Grouping Methods For both the FHWA ER and FEMA PA programs, sites can be grouped together into one project if there is a relationship among the sites. However, each site’s eligibility must still be documented individually. Grouping methods include the following: • Type of damage • Geographic divisions or boundaries • Method of work completion. However, if a site has a special considerations issue, com- bining it with other sites could delay funding for work on the other sites in the project. For the FHWA ER program, emer- gency work and permanent work can be combined only when permanent work is incidental to emergency work (Emer- gency Relief Manual 2013). The FHWA Emergency Relief Manual (2013) further states that permanent work during emergency work is permitted when it is “the most economi- cal and feasible operation to quickly restore essential traffic” (Emergency Relief Manual 2013, p. 21). For the FEMA PA program, emergency work and permanent work may be com- bined only when the emergency work is incidental to the per- manent work. The FEMA P-323 Public Assistance Applicant Handbook (2010) states that emergency work and permanent work will be evaluated separately to ensure that each meets varying eligibility requirements (p. 36). According to SRIA, permanent work categories may now be combined. Consolidated subgrants combine two or more fixed estimates into a single subgrant and can be used to more efficiently manage multiple eligible costs. However, if one of the facilities has complex special considerations issues, it may be better to exclude that facility from the consoli- dated subgrants. Consolidated subgrants offer subgrantees flexibility in the use of excess funds. For example, if actual costs for one facility are in excess of estimated costs but if there are excess funds from another facility in the consoli- dated subgrant, the subgrantee may use the excess funds for the former facility. Subgrant consolidation requests must be made within 12 months of the declaration date (“Frequently Asked Questions—Public Assistance Alternative Procedures Pilot Program” 2013). The following example for a county road is provided in the FEMA Public Assistance Alternative Procedures Pilot Program Guide for Permanent Work, Ver- sion 2 (2013): A county road crosses a water course and its adjacent flood- plain, using five (5) culverts. During the disaster, floodwaters overtop the road and damage the crossings, either by washing out the culverts or by damaging the roadway and headwalls. FEMA prepares and approves a subgrant with five (5) site sheets to repair or replace each culvert crossing, including hazard mitigation measures to increase the size of the culverts. Sub- sequently, the Subgrantee requests that the aggregate funding for the five crossings be used to replace the current configuration with one (1) bridge (p. 6). APPLICATION PROCESSES FOR FEDERAL EMERGENCY MANAGEMENT AGENCY PUBLIC ASSISTANCE AND FHWA EMERGENCY RELIEF FEMA PA Application Process The state DOT is considered a FEMA PA program appli- cant and submits the request for public assistance (RPA) at the applicants’ briefing. The state DOT must submit the RPA Damage FEMA PA FHWA ER Site damage—minimum threshold Must be greater than or equal to the minimum threshold, currently $3,000 per project (“Rules and Regulations 10685,” Federal Register, Vol. 79, No. 38, February 26, 2014) Must be greater than or equal to the minimum threshold, currently $5,000 per site (ER Manual 2013, p. 2) *A site may be a combination of multiple sites. Sources: Public Assistance Applicant Handbook (FEMA P-323) 2010; Emergency Relief Manual 2013. TABLE 6 FEMA PA AND FHWA ER MINIMUM SITE THRESHOLDS*

30 within 30 days after a county has been designated for assis- tance. FEMA then assigns a Public Assistance Crew Leader (PACL), and the state EMA assigns a state representative to the state DOT. FHWA ER Application Process The state DOT is considered the applicant to the FHWA ER program. Prior to the activation of the FHWA ER program, there must be a presidential declaration of a major disaster under the Stafford Act or at least a governor’s emergency or disaster proclamation with concurrence by the FHWA. Once a governor’s proclamation has been issued, a letter of intent must be submitted to the FHWA Division Office with the proclamation immediately after or during the event. FHWA will respond with an acknowledgement letter, and the state DOT will start conducting initial damage assessments, often in conjunction with the FHWA Division Office engineers (Emergency Relief Manual 2013, p. 31). Application Process Deadlines for Both Programs Table 7 shows important deadlines during the application process for both the FEMA PA and FHWA ER programs. WORK COMPLETION DEADLINES FOR BOTH PROGRAMS The completion deadlines for emergency work are essen- tially the same for both the FEMA PA and FHWA ER pro- grams: 6 months and 180 days, respectively. For permanent work, FHWA provides an additional 6 months for the agency to proceed to construction obligation. See Table 8 to compare the two programs. For both programs, state DOTs may request extensions of these deadlines (with justifications) for emergency work and permanent work. For the FHWA ER work, the 2013 Emergency Relief Man- ual states that “100 percent eligibility of emergency repairs may be extended if a State cannot access a site to evaluate damages and the cost of repair” (Emergency Relief Manual 2013, p. 46). For the FEMA PA work, the state EMA can provide time extensions with justification for extenuating circumstances, if there have been no changes in scope or cost. In addition: • For emergency work, the state EMA may provide an additional 6 months or a total of 12 months. Action FEMA PA FHWA ER What is the application deadline? Within 30 days of the designation of the declared disaster area (FEMA P-323 2010, p. 9) Within 2 calendar years of the disaster date (ER Manual 2013, p. 31) What is the deadline for formulating small projects? Within 60 days of the kickoff meeting for validation (FEMA P-323 2010, p. 30) N/A What is the deadline for new site identification (including fixed estimate subgrants for permanent work)? Within 60 days of the kickoff meeting (FEMA P-323 2010, p. 50) Within 2 calendar years of the disaster date (ER Manual 2013, p. 47) What is the deadline for permanent work fixed estimate subgrant cost estimates? Agreement must be reached within 9 months of the declaration date N/A What is the deadline for consolidating projects? Request must be made within 12 months of the declaration date (“Frequently Asked Questions— Public Assistance Alternative Procedures Pilot Program” 2013) N/A What is the deadline for appeals? Within 60 days of the receipt of notice of the action being appealed (FEMA P-323 2010, p. 50) Within 30 days of the determination of eligibility finding being appealed (ER Manual 2013, p. 40) What is the deadline for obligating funds that have been allocated? N/A 6 months for a quick release project; 1 year for a traditional project (Waidelich 2013) N/A = not applicable. Sources: Public Assistance Applicant Handbook (FEMA P-323) 2010; Emergency Relief Manual 2013; and “Frequently Asked Questions—Public Assistance Alternative Procedures Pilot Program” 2013. TABLE 7 IMPORTANT PROCESS DEADLINES FOR BOTH PROGRAMS

31 • For permanent work, the state EMA may grant up to an additional 30 months or a total of 48 months. • The FEMA RA may be able to approve additional time if there is sufficient justification [Public Assistance Appli- cant Handbook (FEMA P-323) 2010, p. 49]. Once permanent work projects are completed, the final inspec- tions for FHWA ER projects are conducted by the state DOT and possibly the FHWA as well, and the state DOT should submit a final billing of eligible costs to FHWA promptly after the final inspection (Emergency Relief Manual 2013, p. 38). For FEMA PA projects, the state EMA conducts the final inspections; at times, FEMA may also perform inspections of the completed work [Public Assistance Applicant Handbook (FEMA P-323) 2010, p. 57]. SMALL VERSUS LARGE PROJECTS IN FEDERAL EMERGENCY MANAGEMENT AGENCY PUBLIC ASSISTANCE Projects are categorized into two groups—small and large— based on the dollar amount of the damages. If a project exceeds the annually updated cost threshold amount, the project is considered a large project. The threshold is updated every October 1. For FY 2014, the threshold is $120,000 (federal share) (“Rules and Regulations 10685,” Federal Register, Vol. 79, No. 38, Feb. 26, 2014). The annual value of the threshold is based on the Consumer Price Index [CFR, Title 44, § 206.203(c)(1) and § 206.203(c) (2)] and is published in the Federal Register every year [Public Assistance Applicant Handbook (FEMA P-323) 2010, p. 29]. Table 9 compares FEMA PA small and large projects. Although the state DOT is expected to complete the PWs for small projects, the state DOT has the option of requesting that FEMA/state EMA complete the PW. For large projects, PWs have been developed by FEMA with the input of the state DOT and other key stakeholders. The state DOT now has the option of completing the PW for large projects as well as for small projects on its own. Small Project Payment The payment method used for small projects has facilitated faster payments for small projects. FEMA obligates funds (after successful validation of a sample of the projects by FEMA) and payment is made using the estimated project amount upon the approval of the PW. FEMA does not deobligate the funds in cases where the actual cost or scope of work differs slightly from the estimated cost. It is possible to request additional funds if the actual cost is significantly more than the estimated cost. In this case, FEMA will require an appeals process with a deadline of within 60 days of the completion of the last small project. In addition, all small projects for the event will be subject to audit by FEMA. The state will typically certify that the project is in com- pliance with all applicable laws and regulations. Completed work does not need to be inspected and approved by FEMA. Large Projects A FEMA Project Specialist will work with state DOTs to pre- pare PWs for large projects and consult with FEMA Techni- cal Specialists to address technical issues and oversight. If there are special considerations, they need to be addressed before funding is provided. The large project funding process proceeds as follows: 1. PW development by FEMA Project Specialist a. State DOT identifies damages and required work, takes photos, identifies special issues, develops cost estimate 2. FEMA PACL Approves Project 3. FEMA obligates funds to the state 4. State DOT submits documentation of work progress and requests funds periodically 5. State draws down and disburses funds to state DOT as work is accomplished 6. Completed project is inspected by the state EMA 7. The state EMA reconciles the actual and estimated costs 8. FEMA reviews the cost information and obligates/ deobligates funds as needed. Sources: Public Assistance Applicant Handbook (FEMA P-323) 2010; Emergency Relief Manual 2013. FEMA PA Emergency Work Work needs to be completed within 6 months of declaration date (FEMA P-323 2010, p. 49). FEMA PA Permanent Work Work needs to be completed within 18 months of declaration date (FEMA P-323 2010, p. 49). FHWA ER Emergency Work Work needs to be completed within 180 days of declaration date for 100% federal funding. (Any eligible work not completed within 180 days may still receive a minimum of 80% Emergency Relief funding (ER Manual 2013, p. 46). FHWA ER Permanent Work Work needs to have proceeded to construction obligation before the end of the second fiscal year following the year in which the disaster occurred (ER Manual 2013, p. 50). TABLE 8 WORK COMPLETION DEADLINES FOR BOTH PROGRAMS

32 The cost is estimated using the FEMA Cost Estimating Format tool based on forward-pricing methodology. The method uses prices based on current average costs from states and LPAs for typical work during disaster recovery. The method is based on construction industry standards and is completed in the following parts: • Part A—base cost of the project, including labor, materi- als, and equipment. • Part B—construction costs not itemized in Part A (e.g., the general contractor’s supervision costs). • Part C—construction cost contingencies and budget- ary risks attributable to project complexity during the design process. • Part D—the contractor’s overhead, insurance, bonds, and profit. • Part E—cost escalation. • Part F—fees for special reviews, plan checks, and permits. • Part G—change orders, hidden damages, and differing site conditions revealed after construction. • Part H—design and construction management costs. If the project is more than 90% complete when the PW is prepared, the actual data for the completed work should be used. If the project is 90% or less complete, cost estimation is performed with FEMA. Once funding has been approved based on the estimated cost of the project, FEMA will obli- gate the federal share to the state EMA. Scope of work (SOW) and cost deviations need FEMA approval, and a version or amendment to the PW may need to be prepared. These versions typically are prepared by FEMA and not by the state DOT. The SOW changes may affect envi- ronmental impact as well as the eligibility of the project for FEMA PA funds. SOW and cost deviations need to be sub- mitted to the FEMA Project Specialist and state FEMA PA representative for FEMA approval. Comparison Factor FEMA PA Small Projects FEMA PA Large Projects Standard Procedures FEMA PA Large Projects Alternative Procedures When is the project funded? Upon project approval, prior to the completion of actual work (p. 30). As work is accomplished (p. 29). Upon project approval, prior to the completion of actual work (p. 5). What is funding based on? Initial cost estimate (p. 29).. Actual costs incurred (p. 32).. Fixed estimates (p. 5). Who completes the PWs? The state DOT has the option of completing its own PWs (p. 31). The state DOT furnishes required information to FEMA (p. 33). The state DOT has the option of completing its own cost estimates (p. 7). What is the federal share? Minimum of 75% (p. 6). Minimum of 75% (p. 6). Same as for Standard Procedures. What happens if there is a cost overrun? If there is a significant overrun on the cost of all small projects, the state DOT may appeal for more funds. However, every project is then subject to a complete audit (p. 30). The actual and estimated costs will be reconciled with the state at the end of the project (p. 32). Additional funds will not be approved (p. 6). What happens if there is a cost underrun? If the state DOT spends less than the amount approved by FEMA, no adjustment is made (p. 58).. The actual and estimated costs will be reconciled with the state at the end of the project (p. 32). If the state DOT spends less than the amount approved by FEMA, excess funds can be used for FEMA PA program- related purposes (p. 12). Sources: Public Assistance Applicant Handbook (FEMA P-323) 2010 for Small Projects and Large Projects—Standard Procedures; Public Assistance Alternative Procedures Pilot Program Guide for Permanent Work, Version 2 (2013) for Large Projects—Alternative Procedures. TABLE 9 COMPARING SMALL VERSUS LARGE PROJECTS FOR FEMA PUBLIC ASSISTANCE

33 With regard to amendments or versions, the FEMA Head- quarters Public Assistance Division Staff provided state DOT Public Assistance Project Worksheets data for the period from October 1, 2007, to October 24, 2012. These data reveal that most PWs have required no amendments and only 10% of them have required one amendment. A very small percent- age has required two or more amendments. Allowed Contract Types For both large and small projects, the following contract types are allowed by FEMA: • Lump sum for a clearly defined scope; • Unit price for work performed item by item; or • Cost plus fixed fee, which is either a lump-sum or unit price contract with a fixed fee. Time and materials contracts are discouraged unless the need is immediate and there is not sufficient time to develop an SOW. Cost plus a percentage of cost and “piggyback” or expansion of a previously awarded contract are not eligible. Project Closeout The state DOT informs the state EMA of project completion. The state EMA is responsible for verifying that costs were incurred based on the approved SOW and certifying that the work has been completed in accordance with FEMA’s standards/policies. The state EMA may perform audits and reconcile actual costs with the cost estimate that was included in the PW. FEMA reviews the project cost documentation and may conduct a final inspection. Depending on the results of the review, FEMA may obligate additional funds or deobligate funds [Public Assistance Guide (FEMA 322) 2007, p. 109]. LARGE PROJECTS USING PERMANENT WORK ALTERNATIVE PROCEDURES Through SRIA’s alternative work procedures, large proj- ects can now be based on estimated costs instead of actual costs and state DOTs can prepare the PWs themselves. The state DOT may request this alternative procedure by signing a fixed estimate agreement before the 9-month deadline to agree to an estimate and before the start of construction. To participate in the alternative procedures for permanent work, subgrants must be large projects and based on fixed cost esti- mates. In FY 2014, beginning October 1, 2013, the thresh- old was $120,000 (federal share) (“Rules and Regulations 10685,” Federal Register, Vol. 79, No. 38, Feb. 26, 2014). The FEMA document Public Assistance Alternative Proce- dures Pilot Program Guide for Permanent Work, Version 2 (2013) provides additional guidance on this topic: If the actual costs exceed the approved fixed estimate, additional funding will not be approved by FEMA (Public Assistance Alter- native Procedures Pilot Program Guide for Permanent Work, Version 2, 2013, p. 6). Optional Features of the Pilot Program Optional features in the Public Assistance Alternative Pro- cedures Pilot Program Guide for Permanent Work, Version 2 (2013) include the following: • Consolidation of multiple fixed subgrants • FEMA validation of subgrantee-provided estimates (prior to acceptance) • Elimination of reduced eligible funding for alternate projects • Use of excess funds • Review of estimates by an expert panel for projects with a federal share of $5 million or greater (prior to acceptance). Timeline for FEMA The timeline for preparing cost estimates for fixed estimate subgrants is described in Figure 9. Identification of all damages is expected within 60 days of the Kick-off Meeting. Agreement on the cost estimate is expected within nine (9) months of the declaration (Public Assistance Alternative Procedures Pilot Program Guide for Permanent Work, Version 2, 2013, p. 6). FIGURE 9 Timeline for preparing permanent work fixed estimate subgrants (Source: Public Assistance Alternative Procedures Pilot Program Guide for Permanent Work, Version 2 2013, p. 7).

34 DISASTER ASSESSMENT FHWA ER Program Disaster Assessment Disaster assessment typically consists of an initial damage survey and subsequent detailed site inspections. The damage survey results are reported in the Damage Survey Summary Report (DSSR), and site inspection results are compiled and reported in the DDIR. The DSSR results are used by the FHWA Division Administrator to make the ER eligibility determina- tion. Once the determination has been made, or is expected to be made, the disaster assessment teams perform detailed site inspections, which are necessary to develop the DDIRs. The objectives of initial disaster inspections by the FHWA are to ensure that funds are promised to eligible jurisdictions (not ineligible ones) and that priority sites are approved first and expeditiously. When a disaster is apparent (e.g., bridge collapse), the funds approval process will be rapid because there is no question that the disaster is FHWA ER-eligible. However, in marginal cases, the verification process can take weeks to complete. If FHWA has sufficient engineers for the assessments, FHWA engineers will accompany state DOTs and assess the damage, method of repair, costs, and other issues together. Currently, there is no formal provision for joint assessments between FHWA and FEMA. Detailed damage inspections are required for all FHWA ER methods; although they may not be initially required for the expedited method or the quick release method, they are required at a later time. The expedited form of inspections is performed using “windshield” surveys. These surveys are performed by driving through disaster sites and recording and photographing the damages. The quick release method allows the use of available information (media reports and aerial photographs or videos). Table 10 compares wind- shield and detailed assessment methods. Damage Survey Summary Report The purpose of the DSSR is to provide information and doc- umentation to the FHWA Division Administrator to enable a finding that a natural disaster or catastrophic failure has occurred. The nature and extent of the emergency situation and damages to federal-aid highway facilities should be described. The “sudden and unusual” nature of the event, rather than a long-term issue, and evidence of an external cause must be provided. A DSSR is required for both the traditional and quick release methods [U.S.C., Title 23, § 125 and CFR, Title 23, § 668.105(j)]. The DSSR may be submitted by the state DOT to the FHWA Division Office along with the governor’s procla- mation or the governor’s request for a presidential disaster declaration and the state DOT’s request letter for FHWA ER funds. The FHWA Division Disaster Coordination Engineer will prescribe the needed information to the FHWA field engineers, who will relay this to the state DOT. This infor- mation may be gathered through a windshield or aerial sur- vey. Supplemental information from FEMA, U.S. Weather Bureau, U.S. Geological Survey, media reports, photos and damage reports from other agencies, and interviews with local citizens is also considered by FHWA (Emergency Relief Manual 2013, p. 42). Detailed Damage Inspection Report The DDIR is the primary vehicle for FHWA ER documenta- tion and damage assessments. The DDIR is based on dam- age inspections conducted by disaster assessment/inspection teams and may be performed in conjunction with the disaster assessment as long as it does not delay the completion of the DSSR. Note that state DOTs may use the Damage Assess- ment Form (DAF), instead of the DDIR. [Examples of DAFs are contained in the California and Tennessee DOT (Caltrans and TDOT, respectively) case examples.] Detailed damage inspections are usually performed together by the state DOT damage inspection teams and FHWA Divi- sion Office personnel at the disaster site. The state DOT determines the cause of the damage and identifies the normal design and construction practice by which the damage is to be repaired. The state DOT completes the DDIRs. FHWA engineers typically make eligibility recommendations at the site. If they do not agree on a particular item, the state DOT can appeal by submitting a written request to the Division Administrator within 30 days after the initial finding. The state DOT compiles DDIRs into a package and submits it to the FHWA Division Office. Coordination with other agen- cies, such as environmental agencies, the U.S. Forest Ser- vice, Park Service, Bureau of Indian Affairs, and the Bureau of Land Management, is advisable (Emergency Relief Man- ual 2013, p. 37). Comparison Factor Windshield Surveys Detailed Assessment Approximate time to complete 2–3 weeks 6–10 weeks How it is done At least one site per county is visited by state DOT and FHWA Every site is visited and inspected by state DOT and FHWA TABLE 10 DISASTER ASSESSMENT METHODS

35 Disaster Coding A disaster code is assigned by FHWA when a finding of FHWA ER eligibility is made to help ensure that all disaster- related items and expenses are assigned to the correct event. FHWA ER-funded projects need to be designated with the prefix “ER,” whereas the prefix “ER-ERFO” designates projects that receive funding from both the FHWA ER pro- gram and the FHWA Emergency Relief for Federally Owned Roadways program. The FHWA code also includes the two- letter state/territory code, the fiscal year of the initial dam- age, and the sequence number of the disaster. The sequence number is related to the number of disasters submitted by a state. For example for the first disaster submitted by Ala- bama for FY 2013, “AL2013-1” would be used. The FHWA Division Office inputs the code into the Fiscal Management Information System (FMIS) so that FHWA ER disaster obligations can be ascertained through this system. Project coding can also conform to other federal-aid project cod- ing (four digits for the route number and three digits for the agreement number) as long as the FHWA ER prefix is used. A new field is being added to the FMIS to allow tracking of FHWA ER allocations by event by linking these program codes with FHWA ER events (Emergency Relief Manual 2013, p. 52). FEMA PA Program Damage Assessment A PDA documents the scope and impact of the disaster and helps the governor determine whether federal assistance is to be sought. FEMA PA Documentation FEMA places the responsibility of documentation directly on the subgrantee. As FEMA states in the P-323 Public Assis- tance Applicant Handbook (2010), “You are responsible for substantiating all costs and your records must be complete and organized” (p. 55). State DOTs are to maintain all docu- mentation related to each PW because it may be requested for amendments to the PW, audits, and project closeouts. Without proper documentation, FEMA may deobligate funds that have been approved. The following caveat is provided by FEMA regarding audits and the importance of proper documentation in case of an audit: All documents are subject to audit by the State, FEMA, and the U.S. Department of Homeland Security Office of Inspector Gen- eral. Because failure to properly document any claimed expenses may result in loss of funding, working within your approved scope of work and costs and documenting each project thoroughly are critical [Public Assistance Applicant Handbook (FEMA P-3230) 2010, p. 58]. Therefore, documentation and document retention, accu- rate financial management and accounting systems, having a reliable backup system, and being able to easily retrieve it when requested are essential. FEMA recommends the docu- mentation be retained for a minimum of 3 years after the date of the last Final Status Report [Public Assistance Applicant Handbook (FEMA P-3230) 2010, p. 56]. More specifically, FEMA recommends the following doc- umentation (p. 53): • Records that demonstrate the presence of an immediate threat; • Drawings, sketches, and plans of predisaster facility design (to scale); • Drawings and sketches of disaster-related damages (to scale); • Drawings and sketches of completed or proposed repair (to scale); and • Calculation sheets detailing specific dimensions and quantities of damage. To document costs and repair work, the following should be created and retained (p. 54): • Force account labor records (i.e., payroll information, time sheets, and administrative policies) • Temporary hire labor records (i.e., work for which the labor was needed, payroll information, and time sheets) • Fringe benefit calculations • Force account equipment usage information and rate schedules • Records of materials from inventory • Rental and lease agreements • Photographs of site, overall facility, specific damage, and repairs • Subgrant applications (PWs) • Site location maps • Flood Insurance Rate Maps (FIRMs) • Facility maintenance records (e.g., for roads or debris basins) • Facility inspection/safety reports (as may be available for bridges and dams) • Engineering/technical reports and specifications for repair • Codes and standards governing repairs/replacements • Insurance information (i.e., policies, proof of loss state- ments from insurance company, deductible informa- tion, etc.) • Documents supporting compliance with environmental and historical preservation issues • Hazard mitigation proposals (as allowed under Sec- tion 406 of the Stafford Act) • Justification for requests for a relocation, improved, or alternate project • Records of donated labor, materials, and equipment, including location, description of work, name of worker, hours worked, value per hour, and certification

36 • Contracts or contractor bids (including invoices and copies of payments) • Inspection logs • Permits • Correspondence • Invoices/warrants/checks • Job orders • Mutual aid agreements and records of mutual aid requests and receipt. FEMA recommends the following documentation tech- niques (p. 55): • Maintain accurate disbursement and accounting records to document the work performed and the costs incurred. • Designate a coordinator to manage the documentation. An internal auditor may be helpful. Establish a file for each project. • Maintain records showing specific costs and SOWs by site. • File all of the documentation pertaining to a project with the corresponding PW and maintain the files as the permanent record of the project. • Ensure documentation can be retrieved by the project number assigned on the PW. Project Worksheets FEMA and the state EMA typically complete the forms for documentation, the PWs, on behalf of state DOTs as well as LPAs. PWs convey the location, damage, SOW, and cost estimate of emergency or permanent work. For small proj- ects (and now for large projects under the SRIA), state DOTs may choose to complete the PW themselves. The PW is a form approved by the Office of Management and Budget. A fillable form of the PW using Microsoft Excel worksheets can be used. New instructions for the PW require certain information (location, damage description and dimen- sions, and SOW) to be entered directly into the FEMA database, the Emergency Management Mission Integrated Environment (EMMIE). Forms used in the project formulation process peri- odically are updated and are available through the FEMA PA Interactive Forms Library: http://www.fema.gov/interactive- forms-library (“Inter active Forms Library” 2013). The PW (FEMA Form 90-91) contains a table of contents sheet, site sheet summary listing the cost for each site, cost summary roll-up listing the costs for each cost category, site sheets with detailed costs and cost descriptions, a sheet for force account labor, a sheet for contracts, force account equipment, rental equipment, and a sheet for direct adminis- trative costs. The site costs and any hazard mitigation costs can be entered on the PW. FEMA notes that it is important to include the cost descriptions along with the source of costs. Backup documentation, such as maps, sketches, and photos, can be attached to each PW. REIMBURSEMENT PROCEDURES FEMA PA Reimbursement Procedures State EMAs are responsible for managing FEMA PA proj- ects and disbursing funds to subgrantees using wire trans- fer. Once small projects are validated, they are authorized and obligated, and payments based on the estimated costs are made. For large projects, invoices are based on incurred costs and sent periodically to the state EMA. They are pro- cessed as they are received, and cost reconciliation occurs at project closeout. Alternative procedures under SRIA now allow payments for large projects to be made based on fixed cost estimates as well. FHWA ER Reimbursement Procedures Once the PoP has been approved and funds are made avail- able to the FHWA Division Office by FHWA Headquarters, the FHWA Division Office will disburse the funds to the state DOT based on federal-aid procedures. For both emergency work and permanent work, billings are submitted by the state DOT to the FHWA Division Office according to guidance in the Federal-aid Policy Guide (CFR, Title 23, § 140, “Reim- bursement”). Billings are subject to audit by state and federal representatives on standard contract administration require- ments, such as FHWA form 1273 and Buy America, for all emergency and permanent work. TRAINING AND RESOURCES Training on FEMA PA The following are FEMA SOPs that assist FEMA, the state EMA, and applicants with the reimbursement process: • Kickoff Meeting (9570.4) • Public Assistance Coordinator (9570.2) • Project Formulation (9570.5) • Validation of Small Projects (9570.6) • Cost Estimating Format for Large Projects (9570.8) • Historic Review (9570.90). FEMA offers an independent study (IS), Course 634: Introduction to FEMA’s Public Assistance Program, and a 4-day course at FEMA’s Emergency Management Institute facility in Maryland. The IS course is open to the public, online, on an on-demand basis, and free of charge. The IS course provides a background and foundation of the FEMA PA program, the steps in the FEMA PA process, eligibility, and project formulation and documentation. The on-site course provides an introduction to program laws, regula- tions, policies, FEMA PA process, grants management, eligi- bility, hazard mitigation, compliance with other federal laws and regulations, and project formulation. Completion of the online Course 634 is a prerequisite. In addition, as noted in the case examples, the state EMAs often offer relevant FEMA PA training to state DOTs and LPAs.

37 Training on ER The FHWA Division Offices may provide FHWA ER train- ing. The state DOTs’ FHWA ER coordinators often provide relevant training to state DOT personnel in the main office and districts and may also provide training to LPAs. FHWA developed a set of video training modules; however, the modules were created before the effective date of MAP-21 and have not been updated. APPEALS FEMA PA Appeals Process If the applicant disagrees with a FEMA decision, the decision may be appealed. The typical FEMA PA appeals process is shown in Figure 10. The FEMA database of appeals contains various appeals for different categories of work made to FEMA. FEMA has established a pilot program, the FEMA PA Dis- pute Resolution Pilot Program, as part of SRIA for resolving disputes. Decisions made by the panel are binding on all par- ties. The program, which includes an independent arbitration review panel, is available for: • Disputes in an amount of at least $1 million; and • Projects with a nonfederal cost share requirement; and • Applicants that have completed a first appeal pursuant to 44 C.F.R. § 206.206. • Requests submitted by December 31, 2015 (“Sandy Recovery Improvement Act of 2013 and FEMA’s Recovery Directorate— Fact Sheet” 2013) FEMA is integrating appeals tracking into its information man- agement system EMMIE to alleviate having to request another set of documentation for appeals. FEDERAL EMERGENCY MANAGEMENT AGENCY AND FHWA SPECIAL CONSIDERATIONS FEMA and FHWA special considerations and contract require- ments can affect a project’s SOW and eligibility for funding. Special consideration issues apply to both programs and include the following: • Environmental Protection • Insurance FIGURE 10 FEMA appeals process [Source: Disaster Recovery: FEMA’s Public Assistance Grant Program Experienced Challenges with Gulf Coast Rebuilding (GAO-09-129) 2008, p. 35].

38 • Hazard Mitigation • Historic Preservation and Cultural Resources • Floodplain Management. Environmental Protection FEMA-funded projects need to comply with all environmen- tal protection laws and regulations, including the following: • National Environmental Policy Act (NEPA) • Endangered Species Act (ESA) • Clean Water Act (CWA) • Clean Air Act (CAA). The review is done before funding and is performed collabora- tively by FEMA, the state, applicants, tribal entities, and local organizations. More extensive reviews may be needed for con- struction of new facilities or alternate projects and projects that expand or modify or mitigate existing facilities. The NEPA of 1969 requires federal agencies to consider the environmental impact of projects using federal funds. NEPA requires the preparation of an Environmental Impact Statement (EIS) if the project is expected to have a signifi- cant environmental impact. An Environmental Assessment (EA) is prepared if a project is expected to have limited or uncertain impacts. However, emergency actions, such as permanent restoration to predisaster condition and debris removal, are exempted through statutory exclusion or cat- egorical exclusion. It should be noted that only 1% of FEMA PA projects require an EIS or EA. Other environmental regulations include the Clean Air Act and Section 6(f) of the Land & Water Conservation Act of 1965: • The Federal Clean Air Act was signed into law on Decem- ber 31, 1970 “to foster the growth of a strong American economy and industry while improving human health and the environment.” The last major amendment was in 1990. • Section 6(f) of the Land & Water Conservation Act of 1965 focuses on the preservation, development, and assurance of the quality and quantity of outdoor recre- ation resources. FHWA’s environmental requirements are similar to those of FEMA. Although FHWA ER program projects need to com- ply with the NEPA of 1969, emergency repairs and in-kind replacements usually receive categorical exclusions. However, a project that includes a betterment can require environmental evaluation. Categorical exclusions for emergency repairs are provided by MAP-21 [CFR, Title 23, § 771(c)(9)] for repair, reconstruction, restoration, retrofitting, or replacement of damaged eligible facilities if the work: 1. occurs within the exist- ing right-of-way and in a manner that substantially conforms to the preexisting design, function, and location as the original (which may include upgrades to meet existing codes and standards as well as upgrades warranted to address conditions that have changed since the original construction); and 2. is commenced within a 2-year period beginning on the date of the declaration. State DOTs have units that specialize in addressing fed- eral, state, and local environmental laws. In addition, the FHWA offers an Environmental Review Toolkit Resources page accessible at http://www.environment.fhwa.dot.gov/ index.asp (“Environmental Review Toolkit” n.d.). Recent efforts to streamline the environmental review process are found in MAP-21 and the executive order signed on March 22, 2012: Improving Performance of Federal Per- mitting and Review of Infrastructure Projects. Historic Preservation and Cultural Resources Section 106 of the National Historic Preservation Act (NHPA) of 1966 and its amendments protect historic and archeological resources. Section 106 “requires federal agencies to consider the effects on historic properties of any project carried out by them or that receives federal financial assistance, permits, or approvals, and provide the ACHP an opportunity to comment on these projects prior to making a final decision” (“Office of Federal Agency Programs Section 106 Fact Sheet” 2011). Properties listed on or eligible for listing on the National Register of Historic Places need to be considered for Section 106 review. For more information, refer to NEPA and NHPA: Handbook for Integrating NEPA and Section 106 (2013). Insurance Eligible FEMA PA and FHWA ER costs will be reduced by anticipated or actual insurance proceeds to avoid a duplica- tion of benefit. Therefore, if there is any insurance coverage for the damage, claims are to be filed as soon as possible and FEMA and FHWA made aware of this coverage. Hazard Mitigation For FEMA PA projects, hazard mitigation measures can be considered if the facility has been damaged frequently. The measures must be cost-effective and can be built into only damaged elements of a facility to be eligible for Section 406 assistance; other mitigation opportunities through FEMA’s Hazard Mitigation Grant and Pre-disaster Mitigation pro- grams may be available for undamaged elements. Floodplain Management Floodplain management uses various measures to prevent and reduce flood damage in flood-prone areas. Any project, whether it is a FEMA or FHWA project, within the floodplain

39 or wetlands must meet the requirements of federal laws and executive orders, including Executive Order 11988 (“Flood- plain Management”), Executive Order 11990 (“Protection of Wetlands”), and the Clean Water Act (PL 92-500). Contracting Procedures for FHWA ER-Funded Projects Permanent work needs to be performed through a contract awarded by a competitive bidding process. Exceptions are noted in CFR Title 23 § 635.204, determination of a more cost-effective method or an emergency. Contracts for FHWA ER emergency and permanent work also need to comply with federal requirements. FHWA uses Form 1273 to con- firm state DOT compliance with these requirements, which include the following: Davis-Bacon Act (U.S.C., Title 23, § 113)—All laborers and mechanics employed for construction work on federal- aid highways, except for work that is debris-removal only, shall be paid at rates no less than prevailing wages determined by the Secretary of Labor. Buy America (U.S.C., Title 23, § 313 and CFR, Title 23, § 635.410)—The Buy America provision requires all steel and iron that is to be permanently incorporated into the work be produced in the United States. Disadvantaged Business Enterprises (DBEs)—DBE requirements are applicable to all FHWA ER-funded projects. Americans with Disabilities Act (ADA)—ADA regulations apply to all FHWA ER-funded projects. No waivers are available even for emergency situations. Equal Employment Opportunity (EEO)—EEO require- ments set forth in CFR Title 23 § 35, CFR Title 23 §1630, CFR Title 41 §60, and U.S.C. Title 23 §140 pro- hibit discrimination and require that contractors imple- ment affirmative action to assure equal opportunity. Convict Labor—The use of convict labor is prohibited under U.S.C. Title 23, § 114. Use of Suspended or Debarred Contractors—Recipients of federal funds are prohibited from doing business with suspended or debarred contractors. Design Standards—MAP-21 legislation states that “the total cost of a project funded under U.S.C. Title 23 § 125 may not exceed the cost of repair or reconstruc- tion of a comparable facility.” A “comparable facility” is a facility that meets current standards required for the types and volume of traffic that the facility will carry over its design life. This expanded allowance enables the addressing of future needs but still applies to the damaged section of the facility. State Emergency Manual or Emergency Operations Plan— State procedures and regulations during emergencies need to be considered when doing both emergency and permanent work. The requirements and guidance may vary from state to state. Section 4(f) of the DOT Act of 1966—Section 4(f) pro- tects lands such as public parks and recreation areas from transportation impacts.