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Disaster-Aid Funding Overview
This article is still under development and is being published for review purposes.
Disasters threaten human life, property, and infrastructure. KYTC uses Disaster-aid Funding to quickly repair and return damaged infrastructure to service and carry out long-term fixes that return infrastructure to its original condition. The Cabinet primarily relies on two federal assistance programs to repair and reconstruct infrastructure:
- Federal Highway Administration Emergency Relief Program (FHWA ER)
- Federal Emergency Management Agency Public Assistance Program (FEMA PA)
These are reimbursable programs which provide funding to fix damage caused by natural and manmade disasters. While each program has different eligibility requirements and reimbursement procedures, they share common traits.
This article will help KYTC personnel determine which program the Cabinet should apply to when seeking reimbursement for post-disaster infrastructure repairs. It also describes elements common to the FHWA ER and FEMA PA programs. In some cases, KYTC may apply to both programs to fund repairs undertaken in response to a single event, with funding from each program directed toward project sites that meet their respective eligibility requirements.
The following HKP articles provide additional information:
CB06 – Department of Rural and Municipal Aid, Rural and Secondary Road Aid funding. This funding is reserved for use on Rural and Secondary Routes.
Disaster-Aid (D-A) – The umbrella term covering the processes for FEMA PA & FHWA ER Programs
Disaster Recovery – Long-term process of rebuilding and restoring the affected area to a state of normalcy.
Disaster Response – The initial, rapid, and immediate set of actions undertaken to address the urgent needs arising from a disaster.
FD51 Funds – Miscellaneous Federal-aid Fund (used for FHWA ER)
FE01 Funds – State District Maintenance Funds
Initial Damages Spreadsheet – A KYTC spreadsheet used to track damage information during the initial stages of a disaster response. This spreadsheet design allows data to be transitioned to both the FEMA PA and FHWA ER programs.
Journal Voucher (JV) – An accounting mechanism to transfer funds/charges to one pot of money to another.
PMDC – KYTC Program Management Disaster Coordinator. The Division of Program Management has a dedicated disaster coordinator for both the FEMA PA and FHWA ER programs.
Preparations that occur just before and in the immediate aftermath of a disaster are the same for the FEMA PA and FHWA ER programs. During disaster response, emergency repairs are carried out and data are collected in a manner that allows the process to transition to the appropriate program (FHWA ER or FEMA PA).
3.1 Department Object Code
Department Object Codes (DOC) are created based on forecasted weather events and the potential for these events to cause damage. Requests for a DOC can be originated from leadership within the Division of Maintenance, Division of Program Management, or the State Highway Engineer’s Office; usually a request is made by the PMDC. The request is made to the Division of Accounts; currently this is handled by either Bob Scott or Dawn Gramig. Once a DOC is created, an email is sent by the PMDC to Districts that will potentially be impacted by the event.
The Operations Management System (OMS) tracks disaster-related expenditures for possible future reimbursement (even several years after the event). The DOC captures data on labor, equipment, and materials; work orders; and other costs related to a specific event. KYTC’s accounting staff can search DOCs even several years after an event occurs. Several items related to a disaster must be tied to a DOC:
- Timesheets
- Equipment
- Materials
- Master Agreements
- Sampling
Red Flag
The DOC established for a disaster must be shared with all personnel working on post-disaster projects so that KYTC can request federal reimbursement for eligible costs. This includes personnel working directly on the project and support personnel involved in OMS and payroll.
It is also essential that all labor, equipment and materials be identified with District, county, route and mile points. Both FHWA and FEMA evaluate reimbursements on a site-by-site basis.
3.2 Initial Site Inspections and Site Tracking
In the immediate aftermath of an event, District personnel receive and compile notifications of damaged areas. They also begin to identify damage sites and perform initial inspections of each one. During initial site inspections, District personnel need to begin the data collection process and take enough pictures to thoroughly document site conditions. Data should be captured on the Initial Damages Spreadsheet. The Initial Damages Spreadsheet is a KYTC-developed document used to track damage data during the initial response and is sent out with the DOC. The Initial Damages spreadsheet is also located in: Projects\Emergency Repairs_Disaster-Aid\Resources for D-A
During initial site inspections, it may be unclear if a site is eligible for FEMA PA funding. Because of this, the Initial Damages Spreadsheet is designed to collect data for both FEMA PA and FWHA ER projects in a manner that allows the data to be migrated to the appropriate program at a later date.
The following data must be collected for individual sites:
- District
- County
- Route
- Mile point
- Latitude + Longitude: required for FEMA PA, optional FHWA ER
- Order-of-magnitude estimates
- Description of Damages
- Potential Method of Repair
- Windshield Cost Estimate
- Photos
Comments can be provided to identify if a road is partially or fully closed following impacts to a bridge structure. If debris has closed a road, it is essential to take photos and measure the quantity of the debris before removal activities begin.
Once life-saving measures are completed, staff determine if an area requires emergency repairs, permanent repairs, or both. Emergency repairs are those deemed necessary to reopen facilities to traffic. Permanent repairs restore sites to their pre-disaster conditions. See Section 4.7 Emergency and Permanent Repairs for more information on emergency and permanent repairs.
Red Flag
All documentation must include District, county route and mile points, latitude/longitude. Determining accurate mile points for the limits of each site is critical for establishing the project’s environmental, right-of-way, and utility impacts.
Prior to any formal declarations as disaster-aid projects, staff time is typically charged to FD51 or FE01 funds with the DOC.
3.3 Early Coordination
Repair projects run more smoothly when there is early coordination between other government agencies and KYTC divisions. Even if details are unknown, simply alerting other agencies and Cabinet personnel to potential projects can help plan and determine personnel needs. Establishing the project team early on facilitates good communication, which keeps all participants up to date on relevant project information.
KYTC Program Management Disaster Coordinators (PMDC) housed in the Division of Program Management oversee and coordinate FHWA ER and FEMA PA processes. Contact one of the PMDC’s listed below as soon as a disaster is anticipated so that when it occurs repairs can begin.
- FHWA ER: Carol Callan-Ramler, (502) 564-4274
- FEMA PA: Ricky Sizemore, (502) 782-5624
Coordination with District Environmental Coordinators (DECs) and the Division of Environmental Analysis (DEA) is critical so that projects are not delayed by environmental issues. DEA may need more information than what appears on the site list (e.g., latitude and longitude, a project description) to establish the project footprint and determine its impacts. The environmental process for each program differs, and early coordination with DEA can help identify pitfalls and the potential for environmental waivers.
While many projects can be undertaken with consent releases, property acquisitions may be necessary. Because the right-of-way acquisition process can include title work, property valuations, and property acquisition, it is time consuming and can delay infrastructure projects. Early coordination with the District Right of Way Supervisor and the Division of Right of Way and Utilities helps determine if repairs and reconstruction require the purchase of fee simple right of way, permanent easements, or temporary easements. Similar to any project that seeks Federal-aid funding, a Right of Way Certification and a Utility Notes must be submitted to obtain the project authorization (TC-10).
Early coordination with District utilities staff is essential if utilities are damaged or could be impacted by repairs.
Many post-disaster repairs involve road washouts, landslides, and other slope stability issues. Bridge and culvert failures are also common in disaster situations. These issues require significant geotechnical work, making early collaboration with the Division of Structural Design’s Geotechnical Branch critical to accelerating the project.
Early coordination with the Division of Structural Design is also critical when large culverts and bridges of any size are impacted. This coordination could include the Department of Environmental Analysis if there are stream impacts or if the existing structure is historical in nature.
FEMA PA projects involve the Kentucky Division of Emergency Management (KYEM). Early coordination with KYEM is critical if a project is going to use FEMA PA funds. They should be engaged on day one. The HKP article Federal Emergency Management Agency (FEMA) Public Assistance (PA) Program has more information.
3.4 Eligible Facility Types (Functional Classification)
As more information is gathered, District personnel in conjunction with the PMDC should make decisions as to which program each site is eligible. The primary criteria used to determine site eligibility is the type of roadway on which the site is located. Table 1 lists facilities eligible under each program.
| Table 1 FHWA ER and FEMA PA Eligibility Criteria | ||
| Program | Eligible Facilities (Functional Classification) / Sites | |
| FHWA ER Program |
|
|
| FEMA PA Program |
|
|
- Debris removal is usually funded under the FEMA PA program, even if it is on a Federal-aid facility. See Section 7 Debris in HKP article Federal Highway Administration (FHWA) Emergency Relief (ER) Program and Section 6.1 Emergency Repairs in HKP article Federal Emergency Management Agency (FEMA) Public Assistance (PA) Program for more information.
It is possible for a single state highway to have multiple functional classification designations. KYTC has an Emergency Funding Routes map to identify Federal-aid highway facilities (eligible for the FHWA ER Program). District staff should make the first identification of functional classification on the Initial Damages spreadsheet and a PMDC verifies classifications.
Red Flag
Facility type is the primary factor used to determine route and/or site eligibility for FHWA ER or FEMA PA funds.
- FHWA ER funding can only be used for facilities within the right of way of a Federal-aid highway.
- FEMA PA funds can only be used on non-Federal-Aid highways.
3.5 Emergency Repairs
Emergency repair work should begin as soon as dangerous conditions recede. As emergency repair work progresses, District personnel along with the PMDC should make decisions for which program each site is eligible. As emergency repairs are completed, projects transition from the disaster response phase to the disaster recovery phase. This describes a linear process; however, actions can overlap. Emergency repair and subsequent disaster recovery procedures are described in the HKP article for each program:
While the FEMA PA and FHWA ER programs share similar elements, it is critical to understand their many differences.
4.1 Declarations
A disaster declaration is a formal announcement of a disaster or emergency by a jurisdiction and is required before Disaster-aid funding can be used. Under the FHWA ER Program, areas within a state become eligible for funding if they are included in a Governor’s Declaration or a Presidential Disaster Declaration. Conversely, a Presidential Disaster Declaration is required for a state to apply for FEMA PA Program funds. The state coordinates on a county-by-county basis through KYEM to seek the presidential declaration.
4.2 Eligible Causes
The FHWA ER Program reimburses the repair or reconstruction of Federal-aid highways and roads on federal lands damaged by a natural disaster or catastrophic failures triggered by external causes. Whether FHWA ER Program funds can be used depends on a disaster’s extent and intensity. For program funds to be used, highway damage must be severe, occur over a wide area, and result in unusually high expenses for a highway agency. Catastrophic failures are covered if they do not result from an inherent flaw in the facility, and have:
- occurred suddenly,
- significantly impacted transportation services, and
- resulted in a highway agency incurring unusually high costs.
FEMA PA funds are available to address damage caused by a major disaster or emergency. A major disaster is defined as natural catastrophe (including any hurricane, tornado, storm, high water, wind driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or, regardless of cause, any fire, flood, or explosion. Authorized under the Stafford Act, FEMA’s Fire Management Assistance Grant (FMAG) covers fires (44 USC § 204). The FMAG program is separate from the FEMA PA program.
4.3 Eligible Recipients
Only available state departments of transportation (DOTs) can access FHWA ER funds. Conversely, FEMA PA funds can be tapped by a wider range of recipients, including state and territorial governments, tribal governments, local governments, and private nonprofit organizations. In some cases, these other local agencies may receive FEMA funds for the same disaster.
4.4 Environmental Requirements
While both programs must follow similar environmental requirements, their processes differ. The National Environmental Policy Act (NEPA) requires federal agencies to consider the environmental impact of projects when federal funds are used.
Under the FEMA PA program, emergency actions, such as permanent restoration to pre-disaster condition and debris removal, are exempted from NEPA through statutory exclusion or categorical exclusion. KYEM personnel handle much of the environmental evaluation and documentation. Districts and the PMDC have minimal involvement in the environmental evaluation of FEMA PA projects.
FHWA ER program projects must comply with NEPA. However, emergency and permanent repairs typically receive categorical exclusions. Further, a project that includes a betterment can require an in-depth environmental evaluation. For the FHWA ER program, most of the environmental evaluations and documentation is handled by coordination between the district environmental scientists and DEA.
4.5 Minimum Event and Site Cost Thresholds
The FHWA ER and FEMA PA programs have minimum event cost thresholds that are used to determine if an event is eligible for funding. Because they change over time, when an event occurs, it is important to verify program thresholds.
To qualify for funding under the FHWA ER Program, FHWA utilizes an 80% reimbursement with the state to pay the final 20%. Therefore, FHWA’s terminology of “eligible” assumes the 80/20 split. For an overall event to cause at least $ 700,000, mathematically the event must be greater than $ 875,000. Similarly, each individual site has the requirement of exceeding $5,000. Accounting for the 80/20 split, an individual site must exceed $ 6,250. If repair costs are less than $ 5,000 ($ 6,250), the repairs are generally considered to be heavy maintenance.
To qualify for FEMA PA funding, an event must cause enough damage that repair costs exceed the county- and state-level population thresholds based on per capita indicators. Additionally, FEMA divides projects into large and small projects. To be eligible for FEMA PA funding, a project’s federal funding share must exceed the small-project minimum set by FEMA. If a project’s federal funding share is greater than the large-project threshold, the project is eligible as a large project. Per capita indicators and federal funding thresholds are revised each year and are listed on FEMA’s website.
4.6 Funding & Reimbursement
Because the FHWA ER and FEMA PA programs distribute funding that supplements state and local resources, they are structured as reimbursement programs and do not provide money up front. KYTC uses state funds to pay for repairs and then applies for reimbursement at a later date. The primary funding source for upfront costs is typically the impacted Districts’ maintenance FE01 funds, but other funding may be used as well. Reimbursement procedures and percentages differ for each program.
Both programs have mechanisms to disburse funds sooner. For FHWA ER, FHWA could release funds by “Quick Release”. For FEMA PA, funds for projects deemed “small” are immediately available. For greater detail review the individual HKP articles.
Red Flag
FHWA and FEMA reimbursement timelines differ. When applying for reimbursement, strictly adhering to each agency’s application requirements is critical for speeding up reimbursement
4.7 Emergency and Permanent Repairs
Both programs facilitate emergency repairs done in the immediate aftermath of an emergency and permanent repairs needed to return a facility to normal operation. Emergency repairs are assigned to an event-specific DOC used in the OMS to identify work for the event.
Once emergency repairs are underway, planning and engineering for permanent repairs begins. Sites are evaluated to determine the extent of needed repairs. Once the scope and cost of permanent repairs is determined and FHWA or FEMA approves them, TC 10 authorizations are executed to fund repairs.
Red Flag
It is imperative that the Districts notify the PMDC when work is complete.
The HKP articles Federal Highway Administration (FHWA) Emergency Relief (ER) Program and Federal Emergency Management Agency (FEMA) Public Assistance (PA) Program define what constitutes emergency and permanent repairs under each program.
4.8 Reimbursement Percentages
Under the FHWA ER program, the reimbursement rate for permanent repairs on interstates is 90%. On all other routes it is 80%. For emergency repairs, the reimbursement rate is 100% if they are completed within 270 days of the disaster. After this, reimbursement is at the same rate as permanent repairs.
Under the FEMA PA program, the minimum reimbursement rate for emergency and permanent repairs is 75%, but the agency will consider up to a 90% rate when certain thresholds are met. There are also provisions for reimbursement of up to 100% of emergency costs in some situations. The HKP article Federal Emergency Management Agency (FEMA) Public Assistance (PA) Program provides more details.
Red Flag
Post approval from the agencies, reimbursements are received through the Division of Accounts. Reimbursements through disaster-aid programs are obligated to a TC-10 established by the program coordinator, 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.
4.9 Program Deadlines
Figure 1 compares key program deadlines. For specific information on these deadlines, see the HKP article for each program.
Figure 1 FHWA ER and FEMA PA Deadline Comparisons
4.10 Betterments, Hazard Mitigation and Resilience
Both programs have provisions that require facilities to be reconstructed to a higher standard than they were originally built to. The idea behind building to a higher standard is that facilities will be more resilient and less likely to incur damage from future disasters. Under the FHWA ER program these provisions are referred to as betterments while the FEMA PA refers to them as hazard mitigation.
4.11 Program Comparison Chart
Table 2 summarizes the main features of each program.
| Table 2 Eligibility Criteria for the FEMA PA and FHWA ER Programs¹ | ||||
| Eligibility Criteria | FEMA PA Program | FHWA ER Program | ||
| Facility | Non-Federal-aid facilities, except for debris² | Roads and bridges on Federal-aid highways³ | ||
| Cause – Fire | For damages caused by uncontrolled fires, woodland fires, or grassland fires, consider seeking FEMA FMAG funding. | |||
| Declaration Required | Presidential declaration | Presidential declaration or Governor’s declaration/proclamation | ||
| Declaration Impact Indicators/ Minimum Event Thresholds | Impact Indicators: Statewide and countywide per capita impact indicators must be met. Indicators change each year. | Minimum threshold for federal share: $700,000 [$875,000] statewide | ||
| Minimum Project Cost Thresholds | Project’s federal share must be greater than the small-project minimum to be eligible. If a project’s federal share is larger than the large-project threshold large-project threshold, it is eligible as a large project. The small-project minimum and large-project threshold are updated annually. | $5,000 [$6,250] per site | ||
| Scope | N/A | Broad area affected (e.g., multiple counties) | ||
| Event Size | Differentiates between “small” and “large” projects | Does not differentiate between small and large projects | ||
| Applicant | Subgrantees: state and local governments, tribes, eligible private nonprofit (PNP) | State transportation agency | ||
| Emergency repair/work (federal share) | Minimum of 75%; 100% for emergency repairs completed within 30 days in certain circumstances. | 100% for emergency repairs completed within 270 days. | ||
| Permanent restoration (federal share) | Minimum of 75% | Minimum of 90% for interstates; 80% for other Federal-aid highways | ||
Notes:
- Table taken from NCHRP Synthesis 472
- Debris removal is usually funded under the FEMA PA program, even if it is on a Federal-aid Facility. See Section 7 Debris in HKP article Federal Highway Administration (FHWA) Emergency Relief (ER) Program and Section 6.1 Emergency Repairs in HKP article Federal Emergency Management Agency (FEMA) Public Assistance (PA) Program for more information.
- See KYTC GIS Map for eligible facilities.
Some larger projects may require design work. In-house personnel or consultants can undertake design work. Tight schedules involved in emergency work generally do not allow the time to hire a consultant through the normal project advertisement process. KYTC has several on-call statewide contracts which can be used to hire consultants for this type of work. The Division of Professional Services houses the Statewide Advertising Schedule, which lists statewide contacts.
5.1 Structural and/or Geotechnical Analysis
Due to the nature of damage from natural disasters, Structural and/or Geotechnical analysis may be required for the repairs. The Division of Structural Design should be contacted as soon as possible if these services could be needed.
5.2 Floodplains
Many disasters are flood related and may involve streams located in a regulated floodplain. This may require hydrologic and hydraulic studies. Contact the Drainage Branch in the Division of Highway design for requirements involving regulated floodplains.
5.3 Right of Way
Although unlikely, some projects may require the purchase of easements or fee simple right of way to accommodate the construction. This process can be lengthy and delay the project. Contact the Division of Right of Way, Utilities & Rails as soon as possible if easements and/or fee simple right of way is needed for the project.
KYTC primarily uses three methods to repair and restore damaged infrastructure. Each one is described below.
6.1 KYTC Employee Self-Performance (aka “State Forces”)
KYTC employees can perform the construction necessary for repairs. Employees also spend many hours preparing for and overseeing repairs. In some cases, staff execute cleanup or construction needed carry out repairs. In all cases, employees should ensure they use the proper DOCs, District number, county, route, and mile points when recording their time and activities so federal funds can reimburse these costs.
Throughout the entire clearing, repairing, and construction process, employees should take many photos of all activities, equipment, materials. Photos should be submitted to FEMA as evidence of work completed.
6.2 Master Agreements
KYTC has several master agreements with on-call contractors that can repair damaged infrastructure. While the Cabinet could let projects individually for emergency repairs, because of the time constraints involved, master agreements are usually the best option for completing work within the 270-day deadline. Common master agreements used for emergency repairs include:
- Bridge Maintenance and Repair
- Bridge Maintenance and Repair FHWA ER Eligible
- Concrete
- Coarse Aggregates
- Disaster/ Emergency Debris Monitoring Services
- Drainage Structures
- Emergency Bridge Repair
- Guardrail Installation — Federally Funded
- Hot Mix Asphalt
- In-Place Paving
- JPC Pavement Repair
- Permanent Pavement Striping and Removal
- Precast Drainage Structures and Grates
- Soil Nails-FHWA and ER Eligible
- Soil Nails-STATE
- Temporary Panel Bridge
- Permanent Pavement Striping & Removal
- Traffic Control
It is absolutely essential for FHWA ER projects that when implementing a master agreement, ensure that the agreement was obtained following federal requisition procedures.
KYTC’s Intranet Site for the Division of Maintenance maintains extensive lists of master agreements.
6.3 Project Letting
For larger projects, all repairs can be grouped into one set of contract documents and let through KYTC’s standard letting process. KYTC schedules lettings once a month and posts them on the Division of Construction Procurement’s website.
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
Emergency Relief Manual. (2013). Federal Highway Administration. https://www.fhwa.dot.gov/reports/erm/er.pdf