Date: October 11, 2013

Issue Paper #: 1
Prepared By: Infrastructure Branch Director
Topic: Eligible Costs Associated with Fixed Site Generators
Public Assistance Program
FEMA-4145-DR-CO
Question: What are the eligible costs associated with the operation of a fixed-site (mounted or permanently
installed) emergency generator?
Answer: For fixed-site generators, FEMA Public Assistance (PA) may reimburse fuel costs and the force account
labor overtime costs associated with the operation of the generator. FEMA PA does not use the equipment rate
to reimburse applicants for costs associated with permanently installed generators.
Background:
Inquiries from PA Field Operations to the PA Infrastructure Branch Director for DR-4145-CO.

Discussion:
The FEMA PA Guide (FEMA 322, June 2007) states that reasonable short term additional costs to an applicant
that are directly related to accomplishing specific emergency health and safety tasks as part of eligible
emergency protective measures may be eligible. If they can be documented and identified with a specific
emergency task, an example of potential eligible cost is increased utility costs of a permanently mounted
generator (at a critical facility, such as a hospital or police station). This is interpreted to mean fuel and force
account labor overtime. FEMA PA will not reimburse permanently installed generators based on FEMA or
State/local equipment rates, which include depreciation, maintenance, etc. Because the generators are part of
the facility, the depreciation and other ownership costs are included in the ownership and operating costs of the
facility.
As recently as DR-4077-OH, FEMA Headquarters reaffirmed that permanently installed generators are treated
as part of a facility, and therefore PA reimbursement is based on the increased operating costs associated with
its use, not equipment rates.

Policies and other References
FEMA Public Assistance Guide (FEMA 322, June 2007), page 55
FEMA Recovery Policy RP9525.7, Labor Costs- Emergency Work, November 16, 2006