The Applicant’s claimed costs for debris clearance (cut and toss) and associated lodging costs are eligible for assistance in the amount of $1,929,406.93; however, the costs for debris hauling are ineligible. Therefore, this appeal is partially approved. Appeal Letter SENT VIA EMAIL Patrick Sheehan Sharon Spence Director Supervisor, Property Accounting Tennessee Emergency Management Agency Memphis Light, Gas, and Water 3041 Sidco Drive 220 South Main Street Nashville, Tennessee 37204-1502 Memphis, Tennessee 38103 Re: Second Appeal – Memphis Light, Gas, and Water, PA ID: 157-0464A-00, FEMA-4645-DR-TN, Grants Manager Project (GMP) 671765 – Immediate Threat Dear Patrick Sheehan and Sharon Spence: This is in response to the Tennessee Emergency Management Agency’s (Recipient) letter dated October 25, 2024, which transmitted the referenced second appeal on behalf of Memphis Light, Gas, and Water (Applicant). The Applicant is appealing the U.S. Department of Homeland Security’s Federal Emergency Management Agency’s denial of Public Assistance funding for debris clearance/hauling and lodging costs. As explained in the enclosed analysis, I have determined that the Applicant’s claimed costs for debris clearance (cut and toss) and associated lodging costs are eligible for assistance; however, the costs for debris hauling are ineligible. Therefore, this appeal is partially approved in the amount of $1,929,406.93. By copy of this letter, I am requesting the Regional Administrator to take appropriate action to implement this determination. This determination is the final decision on this matter pursuant to 44 C.F.R. § 206.206, Appeals. Sincerely, /S/ Robert M. Pesapane Director, Public Assistance Enclosure cc: Robert D. Samaan Regional Administrator FEMA Region 4 Appeal Analysis Background From February 3 through 4, 2022, a severe winter storm caused damage in the state of Tennessee.[1] Memphis Light, Gas, and Water (Applicant) is a special district government entity that provides electricity, natural gas, and water utility services. Heavy rainfall and freezing rain from the event downed trees and power lines, resulting in power outages to more than 200,000 customers. FEMA prepared Grants Manager Project (GMP) 671765 to document the Applicant’s request for Public Assistance (PA) funding for emergency protective measures (Category B) performed from February 3 to 14, 2022. Relevant to this appeal, the Applicant requested $2,820,775.66 for debris clearance (“cut and toss”) from rights-of-way (ROW) performed by two contractors, ABC Professional Tree Service, Inc. (ABC) and Asplundh Tree Expert, LLC (Asplundh), and $76,728.69 for the contractors’ lodging costs.[2] On October 5, 2022, FEMA sent the Applicant a Request for Information (RFI), asking, among other things, that the Applicant itemize and provide additional detail on its claimed debris clearance costs. On October 23, 2022, the Applicant replied that it could not provide the requested details and instead provided a spreadsheet with costs for cut and toss and hauling away debris based on addresses for both types of work per contractor.[3] On February 7, 2023, FEMA issued a Determination Memorandum (DM), denying the Applicant’s claimed debris clearance and lodging costs. FEMA explained that the debris clearance work lacked documentation, such as load tickets, a detailed itemization of the work performed, the labor and equipment used, or the specific locations.[4] First Appeal On April 6, 2023, the Applicant submitted a first appeal, stating that it provided adequate documentation, such as invoices, work orders, and spreadsheets showing the locations and type of work performed, to allow FEMA to verify the costs. The Applicant provided an affidavit from the general supervisor of its line clearance department verifying that the submitted records were accurate to the work performed. On April 19, 2023, the Tennessee Emergency Management Agency (Recipient) transmitted the first appeal to FEMA, expressing its support. On July 1, 2024, the FEMA Region 4 Regional Administrator denied the first appeal, stating that the Applicant did not substantiate the quantity, location, or type of removed debris. FEMA explained that the contractors’ invoices only showed the labor, equipment hours, and miles used in debris removal operations, but did not provide any details about the quantity or type of debris the contractors removed. FEMA added that the Applicant did not provide debris monitoring documentation, such as load tickets, photographs, or videos of debris operations, to validate the performance of eligible work. FEMA stated that while the Applicant provided location documentation to demonstrate where it performed debris removal work, it could not validate that the Applicant performed eligible debris removal work. Finally, FEMA added that hauling away and disposing of debris is considered debris removal, which is ineligible under the Category B project. Second Appeal On August 29, 2024, the Applicant submitted a second appeal, requesting $2,820,775.66 for debris clearance and $69,055.82 in lodging costs.[5] The Applicant states that FEMA improperly combined eligibility requirements for Category A debris removal, Category B emergency access, and Category F utility ROW clearance in the first appeal decision. The Applicant states that its debris clearance costs are eligible under FEMA’s Category F ROW clearance policy and the costs should be obligated under a Category F permanent work public utilities project, rather than associated with a Category B emergency work project (as originally written). The Applicant states that if FEMA finds the debris work to be eligible, then the lodging costs should likewise be eligible as necessary to complete the underlying work. On October 28, 2024, the Recipient transmitted the appeal to FEMA, expressing its support. Discussion Debris clearance for emergency access (often referred to as “cut and toss” or “push”) may be eligible under Category B emergency protective measures work.[6] This includes the clearance of debris, limited to that necessary for an access route to an essential community service that was blocked by disaster-caused damage or debris to remain passable.[7] Debris clearance does not include hauling or disposing of the debris.[8] FEMA may also fund limited debris clearance from the ROW under permanent work Category F utilities as the applicant may need to clear its ROW to obtain access to repair a utility.[9] Regardless of the project’s classification, to be eligible, all costs must be directly tied to the performance of eligible work and adequately documented.[10] Here, the Applicant performed debris clearance work in the immediate aftermath of the storm in efforts to restore power to over 200,000 customers, and FEMA recognizes the urgent nature of this work. The Applicant provided contracts and invoices to document its costs as well as work logs to document work performed, which consisted of work typical of debris clearance, such as tree trimming and removing branches from utility poles, as well as locations where the work was performed.[11] The Applicant acknowledged that its contractors also performed debris hauling, which is not an eligible debris clearance activity. The Applicant utilized the work logs to separate cut and toss from hauling based on the addresses where the work was performed and to distinguish eligible costs associated with debris clearance from ineligible costs associated with debris hauling.[12] Therefore, the Applicant has demonstrated that its claimed costs for debris clearance are eligible for assistance; however, costs for debris hauling remain ineligible. Accordingly, the Applicant’s lodging costs associated with the underlying, eligible debris clearance work are likewise eligible. Conclusion