This decision is in response to a letter from your office dated November 2, 2015, which transmitted the referenced second appeal on behalf of Twin Valley Electric Cooperative, Inc. (Applicant). The Applicant is appealing the U.S. Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) denial of $953,824.01 in funding for restoration of its damaged overhead rural electric distribution system. As explained in the enclosed analysis, I have determined that the Applicant substantiated the reasonableness of its actual costs for the reconductoring project, pursuant to Office of Management and Budget, Circular A-122, Cost Principles for Non-Profit Organizations and the Public Assistance Guide. Accordingly, $945,324.14 is eligible for reimbursement. However, the Applicant did not demonstrate its legal responsibility to provide employees with water, ice and personal supplies, as required by 44 C.F.R. § 206.223(a)(3). Consequently, the $8,499.87 claimed for those items is denied. Therefore, I am partially granting this appeal. By copy of this letter, I am requesting the Regional Administrator to take appropriate action to implement this determination. Please inform the Applicant of my decision. This determination is the final decision on this matter under 44 C.F.R. § 206.206, Appeals.