Increased Operating Costs

Operating Costs

HEADNOTES

Increased costs of operating a facility are ineligible, even if directly related to the incident, but certain short-term emergency measures that are directly related to accomplishing specific emergency health and safety tasks may be eligible. Fuel for increased use of a pumping station is potentially an eligible increased operating expense. The Applicant took short-term emergency protective measures that were directly related to accomplishing specific emergency health and safety tasks. The Applicant incurred additional costs for electricity for increased use of stormwater pump stations because of increased demand as a result of the incident. The cost for the electricity is an eligible increased operating expense.

CONCLUSION

The Applicant demonstrated that the increased costs of operating its pumps for a limited period of time were specifically related to eligible emergency measures and the Applicant tracked the costs. Therefore, the appeal is granted in the amount of $37,734.24.

AUTHORITIES

Stafford Act § 403. 44 C.F.R. § 206.223(a)(3), 206.225(a). PAPPG, at 42, 60-61.

44 C.F.R. § 206.223(a)(3), 206.225(a)
Increased Operating Costs