Public Assistance Division Federal Emergency Management Agency

1. Sandy Recovery Improvement Act (SRIA) of 2013Public Assistance ProgramAlternate Procedures Pilot Program Public Assistance Division Federal Emergency Management Agency U.S. Department of Homeland Security

2. Sandy Recovery Improvement Act On January 29, 2013, President Obama signed into law the Sandy Recovery Improvement Act of 2013 (P.L. 113-2) (SRIA). • FEMA is implementing the Alternate Procedures as a pilot program, as described in the law.

3. Alternate Procedures Pilot Program • The FEMA Administrator may waive notice and comment rulemaking and applicants may apply these alternative procedures to: • Future major disasters • Current disasters for projects where construction has not yet begun • Applicants must elect to participate in the pilot and can select alternative procedures on a project by project basis

4. Alternative Procedures shall further the goals of: • Reducing the costs to the Federal Government of providing such assistance • Increasing flexibility in the administration of such assistance • Expediting the provision of such assistance to applicants • Providing financial incentives and disincentives for the timely and cost-effective completion of projects with such assistance

5. Two Main Sections of the Pilot Program Alternate Procedures Pilot Program Debris Removal Permanent Work

6. Debris Removal Debris Removal Sections will be available to applicants as a list of choices. Applicants can choose to implement all of the provisions, select provisions, or none of the provisions regardless of receiving reimbursement on actual costs or a grant based on an estimate. The available provisions are: • Capped Grant on the basis of an estimate • Sliding Scale • Debris Recycling • Force Account Labor • Pre-Incident Debris Management Plans

7. Capped Grant on the Basis of an Estimate FEMA, the grantee, and the applicant will conduct a survey of disaster related debris and will come to an agreement on an estimate for how much it will cost to remove that debris. Applicants will be allowed to keep any funds that they did not use for debris related operations and be allowed to put that money towards the purchase of new equipment or for enhancing their future debris removal operations, such as training and planning. If applicants spend more money than the federal grant allows for, the additional costs will be the responsibility of the applicant. If the FEMA/Grantee/Applicant team cannot agree on an estimate within 60 days following the kickoff meeting, FEMA will only reimburse the applicant on actual costs.

8. Sliding Scale The Sliding Scale provision enables applicants to receive an increased federal cost share for the rapid removal of debris. An applicant cannot utilize this provision if receiving a grant on the basis of an estimate.

9. Debris Recycling • FEMA will now allow applicants the choice of retaining any revenue from recycling disaster related debris without an offset to the federal grant. • Costs to sort debris as part of a recycling program are eligible for reimbursement. • The United States Environmental Protection Agency (EPA.gov) may provide guidance on recycling programs.

10. FEMA will begin to reimburse straight or regular time salaries and benefits for employees of an eligible applicant involved in conducting or administrating debris and wreckage removal. • FEMA will continue to pay overtime for employees as well. Force Account Labor

11. Pre-Incident Debris Management Plans • Applicants who have developed a debris management plan prior to the disaster will receive a one-time 2% financial incentive on the first disaster following the plan adoption. Subsequent disasters will be funded at the normal cost share. • FEMA provides guidance on the development of a debris management plan, including templates.

12. Permanent Work • Applicants will decide project by project if they will utilize the alternate procedures or remain in the actual cost program. • The provisions of the alternate procedures will come in a package deal and only available to projects which receive a grant on the basis of an estimate.

13. Permanent Work Applicants who choose alternate procedures may: • Consolidate projects across categories of work • Keep any unspent funds under the grant • Not receive a reduction in funding when choosing to do an alternate project, and • Have access to a 3rd party expert panel to have cost estimates validated where the federal share is in excess of $5 million

14. Consolidate Projects Applicants who choose to receive a grant on the basis of an estimate will be allowed to keep any funds that they did not use on that project. They will then be allowed to put that money towards hazard mitigation activities or for enhancing their future public assistance operations, such as training and planning. FEMA, the grantee, and the applicant will determine the grant amount by combining cost estimates on all of the projects that are to be consolidated. Applicants will not have the ability to move funding from one grouping of consolidated projects to another.

15. Unspent Funds (Under Runs) Applicants who choose to receive a grant on the basis of an estimate will be allowed to keep any funds that they did not use on that project. Acceptable Uses of unspent funds: Hazard mitigation projects on damaged facilities or otherwise eligible facilities Activities to improve PA program operations such as training or planning Alternate or improved projects defined by current PA policy

16. Alternate Project Reduction If an applicant choses to receive their federal grant on the basis of an estimate, as part of the pilot program, FEMA will provide the applicant with the entire federal cost share. Alternate projects require approval from FEMA before construction begins.

17. 3rd Party Expert Panel Applicants will have the ability to have their own cost estimate, or a cost estimate prepared by FEMA, to be reviewed by a third party expert panel. The panel will be comprised of design, engineering, construction, cost estimating and industry professionals that are independent of FEMA, the grantee, and the applicant. The expert panel will only review estimates where the federal cost share is projected to be in excess of $5 million. Decisions by the panel will be final and will be used as the basis of funding for the grant.