This article is still under development and is being published for review purposes.

Categories of Work — A classification system that organizes different types of work or activities eligible for reimbursement under the PA program.

Damage Inventory Template — A FEMA spreadsheet that captures damage information in a format compatible with the Portal.

Determination Memo — At certain PA milestones, FEMA reviews projects for compliance with program regulations and issues a determination memo for non-eligible projects or work items.

EHP — Acronym for FEMA’s Environmental and Historic Preservation review process.

Event Number — A four-digit number assigned by FEMA to encompass all repairs associated with a specific event. It is used on all documentation.

Hazard Mitigation — Actions or strategies taken to repair a facility to a better standard than it currently exists in so as to reduce or eliminate the long-term risk and impacts of natural or human-made hazards on people, property, and the environment. Hazard mitigation seeks to minimize the loss of life and property damage by lessening the impact of disasters. This involves a combination of policies, practices, and investments that focus on reducing a community’s hazard vulnerability and increasing its resilience.

Large Projects — Projects with damage costs that exceed the large-project threshold indicated on FEMA’s website.

Lane — FEMA divides projects into Completed, Standard, and Specialized Lanes for administrative purposes.

Obligation — The federal government’s legal commitment to pay or reimburse a state or local government for the federal share of a project’s eligible costs.

Portal — The FEMA Grants Portal.  A web-based project tracking system that serves as a collection and retention center for FEMA-required documentation.

Small Projects — Projects with damage costs that exceed the small-project minimum but which are less than the large-project threshold indicated on FEMA’s website.

Subaward — An award provided by a pass-through entity (KYEM) to a Subrecipient (KYTC) for the Subrecipient to carry out part of a Federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program.

The Federal Emergency Management Agency (FEMA) Public Assistance (PA) program provides reimbursements to repair facilities damaged by events that are declared major disasters or emergencies by the President of the United States. The Public Assistance Program and Policy Guide (PAPPG) serves as the PA program’s main guidance document.

When KYTC pursues PA funding the agency must coordinate with the Kentucky Emergency Management (KYEM) agency. KYEM operates as an intermediary between FEMA and state agencies. During and in the immediate aftermath of an event, KYTC works with KYEM to document impacts. If the Cabinet seeks reimbursement from the PA program, KYEM serves as the Recipient and KYTC as the Applicant and/or Subrecipient. KYEM remains engaged throughout the reimbursement process.

42 USC § 5121-5208 codifies the PA Program and gives state and local governments access to congressionally-allocated funds for use during federally declared disasters. 44 CFR § 206 describes FEMA regulations related to the program.

Disaster response actions are the same for both the FEMA PA and FHWA ER programs. During this phase, emergency repairs begin, and damage data are collected for each site and tracked in the KYTC Initial Damages Spreadsheet. The Cabinet evaluates the eligibility of each site under the FHWA ER and FEMA PA programs. The HKP article Disaster Aid Overview (Section 3 — Disaster Response) discusses disaster response.

Shortly after the disaster, KYEM will solicit information from KYTC in order to aid in the determination of potential eligibility of individual counties and categories.  The D-A Coordinator, District office staff, and KYEM must coordinate their efforts and share information throughout the process.

Windshield estimate data collected by KYTC are put on the Initial Damages Spreadsheet, which is shared with KYEM to determine if the programmatic thresholds are met to request a declaration. 

As the disaster response winds down, KYTC identifies potential sites for PA funding and initiates the PA process. Obtaining funding through the PA Program is a seven-phase process (Figure 1).

Figure 1: FEMA PA Program Phases

The following sections explore how to navigate the PA Program. Section 12 (FEMA Process Flowchart) includes a detailed flowchart that shows individual phases and the functional roles of each KYTC Division.

During Phase I FEMA works with KYTC and KYEM to determine operational needs of the disaster recovery operation and establish a preliminary understanding of the scope of damage.

6.1 Emergency Repairs

Emergency work is work that must be done immediately to:

• Save lives;
• Protect public health and safety;
• Protect improved property; or
• Eliminate or lessen an immediate threat of additional damage.

The PA program classifies emergency work into two categories:

• Category A: Debris removal
• Category B: Emergency protective measures

Emergency work that falls under Categories A and B are not subject to National Environmental Policy Act (NEPA) reviews. However, many other laws and regulations apply to emergency work. See HKP Article Environmental Compliance for Disaster Aid Funding Projects (Coming Soon), for more information.  Questions about regulations that apply to emergency work should be directed to KYEM or FEMA personnel. It is critical to understand what activities qualify as emergency and permanent repairs as they are administered and reimbursed differently. Section 6.2 (Permanent Repairs) discusses permanent repairs. Emergency repairs are discussed below.

Category A: Debris Removal

On most facilities, FEMA PA funds are the primary funding source for debris removal, including Federal-aid highways. Special considerations related to debris removal require coordination between the FHWA ER and FEMA PA programs.

Debris removal from Federal-aid highways is eligible for PA funding when (a) the President declares an emergency or a major disaster and (b) FEMA determines that debris removal is eligible under the Stafford Act (Sections 403, 407, or 502).  Federal Aid Highways are defined in Section 3.4 of HKP article Disaster-Aid Funding Overview. 

Requirements in 44 CFR 206.224 apply when Stafford Act funds are used for debris removal (see the FEMA Public Assistance Policy Digest for more information).

Debris removal activities (e.g., clearance, removal, and disposal) are eligible under Category A if removal is in the public interest. Removal is in the public interest if it:

• Eliminates immediate threats to lives, public health, and safety
• Eliminates immediate threats of significant damage to improved public or private property
• Ensures economic recovery of the affected community to the benefit of the community at large.

Typical KTYC Category A work includes:

• Clearing trees and woody debris
• Clearing mud, silt, and gravel

FEMA has very specific documentation requirements related to debris removal. See the FEMA Public Assistance Debris Monitoring Guide for more detailed information.  KYTC must collect the following information:

• Photographs of in situ debris
• Measurements of in situ debris (If possible, confer in advance with KYEM about acceptable means/methods of measuring debris.)
• Photographs of debris being loaded into equipment to haul away
• Documentation of date, location, equipment, size of equipment, and labor
• Photographs of debris, equipment, and final destination
• Documentation of date, location, equipment, and labor at final destination
• Vegetative debris requires documentation on disposal such as methods of disposal (chipped, burned etc.), the volume (cubic yards) disposed for each method, and any permits that were necessary in the disposal.

Category B: Emergency Protective Measures

Emergency protective measures conducted before, during, and after an incident are eligible under Category B if the measures:

• Eliminate or lessen immediate threats to lives, public health, or safety, or
• Eliminate or lessen immediate threats of significant additional damage to improved public or private property in a cost-effective manner.

Examples of Category B work include:

• Detour and warning signs
• Emergency operations center activation
• Emergency and temporary repairs
  • Temporary pipes and/or bridges
  • Gravel or milling fills
  • Pavement patching
  • Temporary signing
  • Access roads
• Directives by KYEM
  • Hauling water and/or food
  • Delivering medial supplies, such as oxygen or medicine
  • Work on non KYTC facilities
• Emergency evacuations
• Activities undertaken before, during, and after a disaster to save lives and protect improved property

6.2 Permanent Repairs

Permanent repairs are conducted to restore the facilities to their pre-disaster design function. FEMA classifies permanent repairs into five categories:

• Category C: Roads and bridges
• Category D: Water control facilities
• Category E: Public buildings and contents
• Category F: Public utilities
• Category G: Parks, recreational, and other facilities

Generally, KTYC deals exclusively with Category C repairs, which includes permanent work to restore roads and bridges:

• Roads
  • Surfaces
  • Bases
  • Shoulders
  • Ditches
  • Drainage structures
  • Low-water crossings
• Bridges
  • Decking and pavement
  • Piers
  • Girders
  • Abutments
  • Slope protection
  • Approaches
• Slope Failures

For more information on the types of work that are eligible for reimbursement under the PA program, see the following chapters of the PAPPG:

• Chapter 4: General Work and Facility Eligibility
• Chapter 7: Emergency Work Eligibility
• Chapter 8: Permanent Work Eligibility

Permanent repairs can be done by Cabinet forces, contracting work out via Master Agreements or through KYTC’s letting process. The HKP article Disaster Aid Funding Overview (Section 6 — Execution of Construction for Repairs) contains additional information. Deadlines for completing construction vary by category of work:

• Category A: 6 months from the disaster declaration
• Category B: 6 months from the disaster declaration
• Category C: 18 months from the disaster declaration

If construction is not completed before these deadlines, an extension process may be used.

6.3 Joint Preliminary Damage Assessments

FEMA, KYEM, and KYTC staff perform joint Preliminary Damage Assessments (PDAs) of eligible sites. During PDAs teams conduct joint site visits and collaboratively estimate and document the impact and magnitude of damage at each site. The condition of each site must be thoroughly documented through photographs or short videos (60 seconds maximum) and preliminary estimates developed for each site. The goal of early site visits is to determine the extent of damage and identify the types of federal assistance that may be needed.

Once FEMA personnel determine county and category of work eligibility, more detailed site inspections are performed at a later date.

6.4 Minimum Event and Site Cost Thresholds

Based on preliminary cost information gathered during PDAs, FEMA personnel evaluate countywide and statewide per capita indicators. To qualify for PA funding, the total cost of disaster repairs must exceed the cost thresholds calculated using per capita indicators.

Per capita indicators are adjusted each year and can be found on the FEMA website. KYEM compares event costs to per capita indicators informs decisions about whether a Presidential disaster declaration is needed.

Each site must incur costs that exceed the small project minimum threshold listed on the FEMA website in order to be eligible for PA funding. 

6.5 Presidential Disaster Declaration

Only counties included in areas encompassed by a Presidential disaster declaration are eligible for PA funding. Each disaster declaration has a unique identification number.  The FEMA Disaster and Other Declarations website lists presidentially declared disasters by their number and provides other critical information, including maps, for each disaster.  KYEM facilitates the Presidential disaster declaration process by assimilating information for the request. Once an official declaration is issued, FEMA establishes a Joint Field Office (JFO) to coordinate response and recovery activities.

6.6 Applicant Briefing

KYEM and FEMA conduct event-specific Applicant Briefings with KYTC and other potential Applicants that provide high-level information on the PA program. These briefings cover: 

• Overview of the PA Program delivery process (e.g. Portal, application procedures)
• Program deadlines
• General eligibility criteria
• Project funding
• Hazard mitigation (See Section 13.1 — FEMA PA Hazard Mitigation)
• Alternative procedures
• Compliance requirements (procurement, Environmental and Historic Preservation (EHP), and insurance)
• Administrative requirements, including documentation and record keeping

The Applicant Briefing usually takes place via conference call, remote meetings, and/or emails.

6.7 Request for Public Assistance

Within 30 days of a disaster declaration the D-A Coordinator submits a Request for Public Assistance (RPA) on the Portal. FEMA uses information in the RPA to begin the eligibility review process. Eligibility reviews are based on an assessment of the four primary components of eligibility (applicant, facility, work, cost). Consult the PAPPG for more information (Chapter 4 — General Work and Facility Eligibility).

6.8 Program Delivery Manager (PDMG)

FEMA assigns a Program Delivery Manager (PDMG) to assist with the process. The PDMG is the primary point of contact for KYTC and provides customer service and programmatic guidance throughout Phases I – V.

6.9 Exploratory Call

The PDMG conducts an Exploratory Call with KYTC to establish a relationship and prepare for the Recovery Scoping Meeting. On this call, the PDMG’s primary goals are to:

• Gather information on the type and level of damage as well as priority needs for assistance. This is used to understand incident-related impacts suffered by KYTC.
• Ensure KYTC understands the general requirements for developing a list of impacts
• Provide key information on documentation, procurement, and EHP requirements
• Schedule the Recovery Scoping Meeting and identify appropriate attendees

6.10 Damage Inventory & Template

The Damage Inventory Template is a FEMA spreadsheet designed to capture damage information in a Portal-compatible format. Once complete, the Damage Inventory Template spreadsheet is sent to the PDMG, who enters the information into the Damage Inventory section of the Portal.  For more information on creating a damage inventory, view the FEMA video Creating a Damage Inventory/List of Impacts.

6.11 Recovery Scoping Meeting

At the Recovery Scoping Meeting, FEMA, KYEM, and KYTC review and refine the list of impacts and discuss:

• The PA delivery process
• Details of how the incident impacted KYTC
• Hazard mitigation opportunities
• Eligibility criteria for facilities, work, and costs
• Logical grouping of damage: Small or Large Projects
• Procurement requirements
• Insurance reductions and requirements
• EHP compliance requirements
• Documentation requirements
• Interagency Recovery Coordination
• 60 day deadline described above
• Appeal process

KYTC staff knowledgeable about incident-related damage, emergency activities performed, and related costs should attend the meeting.

Another issue discussed at the Recovery Scoping Meeting is the possibility of implementing hazard mitigation measures when making permanent repairs.  Hazard Mitigation funding through the FEMA PA program allows for repairs that upgrade a facility to a better state than its previous condition to lessen the risk of future damages to the facility.  For more information see Section 13.1 FEMA PA Hazard Mitigation.

During Phase II FEMA, KYTC, and KYEM work collaboratively to capture additional details on the extent of damages. A key feature of this phase is dividing projects into separate lanes. The lane that a project is in dictates how FEMA processes it.

7.1 Project Formulation

The PDMG and KYTC then group eligible damaged sites into projects in the Portal based on logical geographic locations, type of repair, and stage of work.  Projects are placed in one of three lanes as shown in Table 1.

Reimbursement for Completed Work Lane projects is based on the cost of eligible work completed.

Reimbursement for Standard Lane and Specialized Lane projects is based on estimates. On Large Projects, costs are adjusted based on eligible work that has been completed. For more information on estimates, see Section 8.1 (Estimates). For more information on Large Projects see Section 8.3 (Small and Large Projects).

7.2 Essential Elements of Information (EEI) Request

On all projects, FEMA will need to collect specific details to assess the extent of damage and determine eligibility for assistance.   This is referred to as an Essential Elements of Information Request (EEI).  EEI’s are carried out in the Portal and contain project-specific documentation that KYTC must submit to FEMA.  The types of information required will be based on answers to the questions FEMA asks about the project. 

Since Completed Lane projects have already been constructed, they will go through an EEI request and other steps as described below after the work is completed.  For Standardized and Specialized Lane projects, the PDMG will request that the D-A Coordinator upload the information from the EEI into the portal so the information can be used during the site inspections and to develop the Damage Description and Dimensions as described below. 

7.3 Site Inspections

Completed Lane projects may go through a site inspection at a later date to verify that the work was completed as described and that it meets the program’s eligibility requirements.

All Standard and Specialized Lane projects will go through a site inspection to validate, quantify, and document the cause, location, and details of the reported damage and debris impacts. The Damage Inventory discussed in Section 6.10 Damage Inventory & Template will be used by the PDMG to group damage line items into projects and generate site inspection work orders.  FEMA will assign an inspector to conduct these site inspections with KYTC (Applicant).  The site inspector will visit the site and prepare a Site Inspection Report which will be used to develop the Damage Description and Dimensions (DDD). The flowchart below shows an overview of this process.

There are several steps KYTC personnel can take to prepare for the site inspection:

• Collect relevant disaster documentation
• Establish a point of contact that FEMA can reach for site inspection purposes and will accompany the Site Inspector during the day of the inspection
• Determine which tools are necessary for the inspection (mileage counters in trucks, ladders, range finders etc.)
• Participate in the pre-meeting coordination call with the Site Inspector at least 24 hours prior to the site inspection to discuss the order and sequences of sites to be inspected, discuss any potential hazards or safety concerns, and whether any repair work has been done since the time the site inspection was scheduled
• Finalize the time and location of meeting during the inspection

FEMA may also identify environmental issues and hazard mitigation opportunities during site inspections. 

7.4 Damage Description and Dimensions (DDD)

The Site Inspector will review and document the physical damage and generate the Damage Description and Dimensions (DDD) for work to be completed.  Each damage listed in the Damage Inventory will have a corresponding DDD. 

The Consolidated Resource Center will generate the Damage Description and Dimensions for completed work using Applicant provided documentation and a project description developed with the Program Delivery Manager.  The information contained in the Damage Description and Dimensions (DDD) for each project will include:

• Reviews the cause(s) of damage
• Describes the facility as it existed prior to the event
• Describes specific disaster-related damage
• Quantifies the amount of disaster-related damage

Form a more detailed discussion of the DDD see the FEMA training video Damage Description and Dimensions.

7.5 Development Guide Questions

The PDMG may submit further questions from the Development Guide for Standard and Specialized Lane Projects. These questions address:

• How KYTC plans to develop the scope of work and cost estimate
• Whether KYTC wants to participate in a special program (e.g., Public Assistance Alternative Procedures)
• If the project has special considerations

Based on the answers, the PDM consults with EHP or Hazard Mitigation Specialists to ensure projects get into the correct program (e.g., Public Assistance Alternative Procedures Pilot Program for debris removal).

During Phase III the final costs and scope of work (SOW) are developed for each project and compliance reviews performed.

8.1 Estimates

Repair estimates are developed for Standard and Specialized Lane projects. Estimates must adhere to PA guidelines. They can be prepared by FEMA or KYTC personnel.

FEMA accepts cost estimates submitted by an Applicant if the estimate:

• Is prepared by a licensed Professional Engineer or other estimating professional (e.g., licensed architect, certified professional cost estimator) who certifies the estimate was prepared in accordance with industry standards
• Includes certification that the estimated cost directly corresponds to the repair of the agreed-upon damage
• Is based on unit costs for each component of the SOW and not a lump sum amount
• Contains a level of detail sufficient for FEMA to validate that all components correspond with the agreed-upon scope of work
• Is based on the current phase of design or construction, including any known costs
• Includes actual costs for work completed at the time the cost estimate is developed
• Is reasonable

While KYTC generally likes to develop their own estimates, they can elect to have FEMA personnel in the Consolidated Resources Center (CRC) develop the estimate.

8.2 Scope of Work

For each Completed Lane projects, the PDMG must describe the completed scope of work and provide supporting documentation. Detailed SOWs are prepared for Standard and Specialized Lane projects using information from the DDD. For Emergency Work, the SOW describes in quantitative terms work required to address immediate threats and to remove debris. For Permanent Work, the SOW must describe (a) how KYTC plans to repair or (b) how the agency previously repaired damage. The SOW for Permanent Work must include repair dimensions and describe and quantify hazard mitigation.

8.3 Small and Large Projects

Using estimates, projects are divided into Large and Small Projects based on cost threshold requirements. FEMA determines whether a project is Large or Small based on the final approved eligible costs after cost adjustments, including insurance reductions. Thresholds are adjusted annually and are applied as follows:

• To qualify as a Small Project, the federal share of a project’s cost must exceed the Small Project Minimum shown on FEMA’s website and must not exceed the Large Project Minimum.
• To qualify as a Large Project, a project’s federal share must exceed the Large Project Threshold shown on FEMA’s website.

Thresholds apply to incidents declared within the specified fiscal year.

Projects with an estimated or actual costs that are above the large project threshold must be submitted for review upon completion of the project (60 days), these are deemed “large” projects. FEMA adjusts estimated costs for large projects to the cost KYTC incurs, so the final approved reimbursement is based on actual costs.  Projects that are under the large project threshold are reimbursed based on the estimated or actual costs of the project, these are called “small projects”.  Once FEMA obligates the funds for a small project, they do not adjust the approved amounts. 

Project costs may rise due to inflation or other issues that emerge between the time when an estimate is developed and when the project is constructed. This pose risks to KYTC, making it critical to ensure project estimates account for all potential cost escalators.

8.4 CRC Scope of Work and Cost Reviews

Completed scopes of work and estimates for Standard and Specialized Lane projects are submitted to the CRC. CRC staff then evaluate the cost and work eligibility of each project. FEMA provides PA funding to restore facilities based on their pre-disaster design and function in conformity with current applicable codes, specifications, and standards.  If upgrades are necessary because of these codes, specifications, or standards, KYTC must provide documentation to support the upgrades.  This documentation should include, but is not limited to, the requirement to apply the codes or standards and evidence of where they were formally adopted, implemented, and uniformly applied. 

Other issues the CRC often encounters when determining eligibility for PA funding include: 

• Insufficient documentation

• Deferred maintenance
  • FEMA does not reimburse for damages caused by lack of maintenance. KYTC should conduct and document routine maintenance to avoid this.

• Pre-existing damages
  • As per 44 CFR 206.223, FEMA does not fund repairs to damage that occurred prior to the event. Damages must result from the emergency or major disaster event.

• Unreasonable costs
  • Costs provided by KYTC need to be reasonable.
  • As per 2 CFR 200.404, a reasonable cost does not exceed the amount a prudent entity would pay under the prevailing circumstances at the time KYTC decides to incur the cost.
  • Repair costs that do not follow KYTC standards.

• Improper contract procurement

• Legal citation for deferred maintenance
  • Not obtaining proper permits

8.5 Program Compliance Evaluation

Projects meeting work and cost eligibility criteria undergo a Program Compliance Evaluation that addresses:

• Quality assurance
• Environmental and historic issues
  • A significant portion of the compliance review involves EHP issues.
  • Compliance with applicable permits such as the USACE Nationwide Permits will be reviewed during this evaluation.
  • See HKP Article Environmental Compliance for Disaster Aid Funding Projects (Coming Soon), for more information.
• Insurance coverage issues
  • This mainly applies to buildings as roads and bridges do not have insurance coverage)
• Potential for hazard mitigation funding

8.6 Determination Memos

CRC staff assess the work and costs and make and will issue a Determination Memo in the event that the cost and/or work is deemed ineligible.   KYTC can appeal if the work and/or costs are deemed ineligible.  One of the most likely triggers for an ineligibility determination memo is non-compliance with environmental or historical agreements. KYTC district personnel should coordinate early and often with their District Environmental Coordinator (DEC) to identify environmentally sensitive waters and historically significant facilities. KYTC can appeal negative findings in the compliance review.

During Phase IV a project(s) is reviewed to ensure it complies with all special considerations before funding it is obligated.

9.1 PDMG Review

Following the EHP evaluation, the project moves to the PDMG for their review to verify it accurately reflects the facility, work, and costs claimed by KYTC. If the PDMG concurs, they approve the project in the Portal.

9.2 Recipient (KYEM) Review

Before the Applicant (KYTC) reviews and approves their project in the Portal, the Recipient (KYEM) must review and sign it in the Portal. If KYEM has questions about the project, they ask the PDMG. Once the Recipient agrees with the final document, the project advances to Applicant Review.

9.3 Applicant (KYTC) Review

After the KYEM reviews and approves KYTC’s project, the Cabinet reviews the project. KYTC must compare information in the Portal to the Damage Description and Dimensions, scope of work, and cost estimate. After reviewing the project, a KYTC representative signs it in Portal, which indicates they agree to the terms.

9.4 Final Review and Eligibility Determination

FEMA conducts a final review to evaluate the eligibility of KYTC’s project(s). Passing the final review means a project will have passed all special considerations requirements and funds will be obligated to KYEM, which then notifies Cabinet and makes funding available.

During Phase V obligated funds are transferred to KYEM and project administration is transferred from CRC to KYEM.

10.1 Project Authorization (TC-10)

Once funding is obligated, KYTC’s D-A Coordinator requests a funding strip and the Division of Program Management processes a TC-10 authorizing project funding. Large Projects generally have their own TC-10, but multiple small projects can be grouped on a single TC-10.

Reimbursements through disaster aid programs are obligated to the TC 10, related expenditures should then be JV’d to the TC 10. The current fiscal year expenditures for the fund used will be reduced by the amount of the JV. In essence it is a credit to that funding account.

10.2 Recovery Transition Meeting

Once KYTC signs all project(s) in the Portal and the final review occurs, the PDMG, KYEM, and the Cabinet conduct a Recovery Transition Meeting. This is a formal briefing that transitions the project from FEMA to KYEM. FEMA uses this meeting to:

• Ensure documentation for all claimed damages is sufficient and accurate
• Discuss record retention requirements
• Explain deadlines for completing work and appeals, including Net Small Project Overruns
• Ensure KYTC understands project terms and conditions (e.g., EHP requirements, procurement, minimum standards, disposition)
• Transition primary point-of-contact from field personnel to KYEM
• Discuss questions or concerns

During Phases VI and VII, reimbursements are transferred to KYTC and projects are closed out.

11. 1 Reimbursement

KYTC district personnel should collect and store proper documentation throughout a project. See the Final Inspection Documentation Requirement Checklist for a list of required documents. Having proper documentation ready when KYTC seeks reimbursement streamlines the process. After repair work is complete, the Cabinet has 90 days to submit documents to KYEM for reimbursement.

KYTC uses its own funding for disaster-related repairs and then seeks reimbursement from the PA program based on set percentages:

• 75% of the eligible cost of permanent and emergency work unless otherwise specified
• 75% – 90% of the eligible cost of permanent and emergency work if Federal obligations meet or exceed a cost of $100 per capita of State population, adjusted annually for inflation using the Consumer Price Index for All Urban Consumers, which is published annually by the Department of Labor.
• If warranted disaster-related needs, 100% Federal funding for emergency work, including direct Federal assistance, for a limited period (usually 30 days) during the initial days of the disaster irrespective of per capita impact.

As discussed in Section 8.3 (Small and Large Projects), FEMA treats reimbursements differently for Small and Large Projects:

• The reimbursement process for small projects is much faster. Once a project is obligated within the Portal, FEMA releases funding to the recipient (KYEM) and KYEM releases that funding to the subrecipient (KYTC). 
• The reimbursement process for Large Projects takes much longer. Once a project is obligated within the Portal, FEMA releases funding to the recipient who holds the funding until final project closeout documentation is provided by KYTC. The D-A Coordinator submits the documentation to KYEM, who then reviews the documentation for compliance. FEMA will also review the documentation and complete a final site inspection. If FEMA concurs with the expenditures, KYEM will release the funding to KYTC.

11.2 Closeout

Once a project is complete, KYEM submits closeout documents to the D-A Coordinator. All project records are kept on file for three years after disaster projects are finalized. The closeout process is different for small and large projects.  FEMA closes Large Projects individually as each is completed. FEMA closes all Small Projects together when the last Small Project is completed.

11.2.1 Small Projects

Once FEMA obligates a Small Project, FEMA does not adjust the approved amount of an individual Small Project. This also applies when actual costs for completing the eligible scope of work differ from the estimated amount. Some Recipients may have additional required documents to close out small projects.

To close Small Projects, the Recipient must certify that the Applicant completed the approved scope of work for all of its Small Projects included in the disaster declaration and complied with all requirements.

11.2.2 Large Projects

FEMA closes Large Projects based on a final reconciliation of all actual eligible costs incurred to complete the approved scope of work. FEMA reviews all of the documentation associated with the project and verifies the accuracy of the costs incurred to complete the approved scope of work.

If the information is extensive, such as payroll records or trip tickets, FEMA will select and review a10-20 percent random sample of the documents. If FEMA successfully validates the information in the sample, it considers all of the records to be correct. However, if FEMA identifies errors it will review a larger sample.

During the review process FEMA performs the following:

• Validates compliance with all terms and conditions of the project.
• Evaluates and reconciles cost overruns or underruns.
• Reviews completed work records against the project and approved scope of work to validate that the work performed was consistent with the approved scope of work.
• Identifies any related projects to ensure no duplication of cost reimbursement.
• Determines whether the Recipient or FEMA approved any time extensions and whether the Applicant completed the work within the approved deadline.

Hazard Mitigation is defined as any sustained action taken to reduce or eliminate long-term risk to people and property from natural hazards and their effects.  There are four separate FEMA hazard mitigation programs codified in the Stafford Act and National Flood Insurance Act of 1968 as shown in the table below.   

13.1 FEMA PA Hazard Mitigation

FEMA PA Hazard Mitigation is a disaster related program that allows mitigation to damaged facilities within the geographic limits of a Presidentially declared disaster.  Mitigation measures are eligible for PA funding only if their implementation directly reduces the likelihood of the damaged portion(s) of a facility being damaged by a future event.

Looking for Hazard Mitigation opportunities to include in the scope of work of a FEMA PA project is an effective use of FEMA PA funding and can lessen the risk of future damage to a facility Generally, eligible PA mitigation measures are those KYTC performs on the damaged portion(s) of a facility. If the Cabinet proposes implementing mitigation measures that are distinct and separate from the damaged portion(s) of a facility, FEMA evaluates the proposal and determines eligibility on a case-by-case basis. FEMA’s decision is based on how the mitigation measure protects the damaged portion(s) of the facility and whether the mitigation measure is reasonable given the extent of damage. Examples of mitigation measures include:

• Elevating roads above the base flood elevation to maintain dry access
• Increasing dimensions of drainage culverts in flood-prone areas
• Increasing drainage or absorption capacities with extra culverts
• Properly installing riprap for erosion protection
• Adding headwalls and wingwalls to culverts
• Changing river rock to crushed rock
• Stabilizing or armoring of vulnerable shoulders and embankments
• Engineering or retrofitting roads to withstand hazards
• Identifying and hardening critical lifeline systems (e.g., roads) to meet Seismic Design Guidelines and Standards for Lifelines or equivalent standards such as those found in American Lifelines Alliance guidance
• Considering the increased exposure to flood hazards when deciding whether to extend roads
• Constructing grassy swales along roadsides to prevent flooding and erosion
• When roadways encroach on parallel waterways, conduct hydrologic and hydraulic studies to verify the channel dimensions are sufficient to protect the road
• Constructing floodwalls around damaged facilities
• Installing new drainage facilities (including culverts) along a damaged road
• Adding fire suppression systems at facilities damaged by wildfire
• Dry floodproofing damaged and undamaged buildings that contain components of a system that are functionally interdependent (i.e., when the entire system is jeopardized if any system component fails).

PA hazard mitigation funding requires that mitigation measures be cost-effective. A mitigation measures is considered cost-effective if any of the following criteria are met: 

• The measure’s cost does not exceed 15% of the total eligible repair cost (prior to any insurance reductions) of the facility or facilities to which the mitigation measure applies.
• The measure is listed in Appendix J: Cost-Effective Public Assistance Hazard Mitigation Measures of the PAPPG and the mitigation measure’s cost does not exceed 100% of the eligible repair cost (prior to any insurance reductions) of the facility or facilities to which the mitigation measure is applied.
• KYEM or KYTC demonstrates through an acceptable benefit-cost analysis (BCA) method that the measure is cost-effective. For more information on BCA analysis, consult FEMA’s Benefit-Cost Analysis

Many mitigation measures that do not meet the first two criteria prove cost-effective based on a BCA. If a mitigation measure is not shown to be cost-effective based on the first two criteria, FEMA, KYEM, and KYTC collaboratively develop a BCA to assess its cost-effectiveness.

If FEMA determines implementing mitigation measures on undamaged portions of facilities is ineligible under the PA program, KYTC may request HMGP (See Section 13 FEMA Hazard Mitigation Assistance (HMA)) funding to protect undamaged portions, while using PA mitigation funds to protect damaged portions.

13.2 FEMA Hazard Mitigation Assistance (HMA) Programs

In addition to the hazard mitigation funding included in the FEMA PA program, hazard mitigation funding is available under FEMA’s Hazard Mitigation Assistance (HMA) programs. Eligibility criteria, procedures, and timelines for implementing hazard mitigation measures funded under the HMA programs differ from hazard mitigation measures funded under the PA program. Table 3 describes HMA programs.

For more information on HMA programs visit the FEMA Hazard Mitigation Assistance Grants website.

FEMA offers many trainings through its Independent Study Program (ISP). All training is free. Their web-based formats let users complete courses at their own pace. Table 4 lists ISP courses relevant to the PA program:

Below is a listing of useful resources for the FEMA PA program. 

• Public Assistance Program and Policy Guide (PAPPG) Version 4. (2020)
• Public Assistance Debris Monitoring Guide
• FEMA Disaster and Other Declarations website 
• KYTC Initial Damages Spreadsheet 
• Final Inspection Documentation Requirement Checklist
• FEMA Hazard Mitigation Assistance Grants

• National Academies of Sciences, Engineering, and Medicine. (2015). NCHRP Synthesis 472: FEMA and FHWA Emergency Relief Funds Reimbursements to State Departments of Transportation. Washington, DC: The National Academies Press. https://doi.org/10.17226/22164
• Public Assistance Program and Policy Guide (PAPPG) Version 4. (2020). Federal Emergency Management Agency. https://www.fema.gov/sites/default/files/documents/fema_pappg-v4-updated-links_policy_6-1-2020.pdf

• Disaster Aid Funding Overview 
• Federal Highway Administration (FHWA) Emergency Relief (ER) Program