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45 It is important to be aware of recovery funding resources in advance of an emergency and to understand the eligibility and documentation requirements for obtaining that funding. This chapter provides an overview of the funding potentially available for rebuilding and recovery. Table 13 provides an overview of federal, state, and other potential funding sources that may be available for the recovery of transportation assets. See Appendix E for more detailed information on recovery funding sources. States typically have a Disaster Emergency Fund that can be used to finance recovery efforts and to match grant dollars provided by the federal government. It should be noted that the availability and extent of funding varies by state. In most cases, if this funding is not enough, or the state requires additional recovery funding that cannot be acquired from other sources, the governor (or another similar state government official) has the authority to allocate additional state funding for recovery assistance. Two examples of effective practices in state transportation recovery funding follow. Wisconsin has established a Flood Damage Aid Program for the state DOT that covers the restoration of roadways (not including state highway roads) damaged by flooding, as well as mitigation repairs. The state program requires local match funding. California has established a number of state transportation funding options to expedite recovery projects including the following: ⢠The Disaster Assistance Fund, a special fund within the state treasury that is available for use by agencies during the recovery process. A subsidiary account, called the Earthquake Emergency Investigations Account, covers expenses incurred by earthquake damage. ⢠The California Transportation Commissionâs Resolution G-11 allows the DOT to allocate its funds as necessary to repair emergency damages. To allow the department to begin the recovery process as soon as possible, the resolution becomes active âwhenever an event places people or property in jeopardy, causes or threatens to cause closure of transportation access, or causes either an excessive increase in delay or congestion, or an excessive increase in the necessary distances traveled.â ⢠State Highway Operation and Protection Program (SHOPP) funding can be used to repair transportation systems. SHOPP funding is divided between proposed projects and reservation funding. Emergency and disaster funds are available from the reservation funding. C h a p t e r 6 Recovery Funding
46 a pre-event recovery planning Guide for transportation Funding Program Description Stafford Act Programs FEMA Public Assistance (PA) PA grants are FEMAâs primary assistance program for state and local governments. These grants may be used to repair, replace, or restore disaster-damaged, publicly owned facilities and the facilities of certain private nonprofit organizations. FEMA Hazard Mitigation Grant Program (HMGP) FEMAâs HMGP provides grants to states to implement mitigation measures during recovery from a disaster and to provide funding for previously identified mitigation measures. Other Federal Programs U.S. Department of Housing and Urban Development Community Development Block Grants (CDBGs) CDBG funds are generally allocated to states for housing and community development purposes. In recent years, this program has been a vehicle for delivering additional disaster aid to states with major disasters. Economic Development Administration (EDA) Grants EDA grants are available to regions experiencing sudden and severe economic dislocations such as those resulting from natural disasters. Funds can be used for infrastructure to support community economic development. Special Funding Congress can enact special legislation to provide emergency funding. For instance, P.L.109â87 authorized the Secretary of Transportation to make project grants for airports that incurred emergency capital costs because of Hurricanes Katrina or Rita. U.S. DOT Grants FHWA Emergency Relief (ER) Funds ER is a special program from the Highway Trust Fund. Funds are available for the repair of federal-aid highways or roads on federal lands that have been seriously damaged by natural disasters over a wide area or by catastrophic failures from an external cause. Emergency Relief for Federally Owned Roads (ERFO) ERFO provides funding and engineering services for the repair and reconstruction of roads in public lands after a natural disaster or a catastrophic failure. The following categories of roads are eligible: Forest Highways, Forest Development Roads, Park Roads and Parkways, Indian Reservation Roads, Public Lands Highways, Refuge Roads, Military Installation Roads, Corps Recreation Roads, Bureau of Reclamation Roads, and Bureau of Land Management Roads. State Programs State Disaster Emergency Funds States typically have a Disaster Emergency Fund, regularly appropriated by the state government, which can be used to finance recovery efforts and to match grant dollars provided by the federal government. The amount of funds varies by state; states that are more vulnerable to disasters may place greater amounts of money in their Disaster Emergency Fund than states that have not typically been victim to many disasters. In most cases, if this funding is not enough, or the state requires additional recovery funding that cannot be acquired from other sources, the governor (or another similar state government official) has the authority to allocate additional state funding for recovery assistance. State Bond Initiatives State and local bond issues are major vehicles through which state and local governments can finance public projects, especially project upgrades that are not eligible for FEMAâs PA grant program. These bonds do not require a presidential disaster declaration. These public purpose bonds are used for roads, streets, highways, sidewalks, libraries, and government buildings. Bond funding can be used by state and local entities to pay the match portion of PA projects, as well as pay for upgrades. Other Private Insurance The NTRS recommends that insurance coverage be evaluated prior to an event to ensure sufficiency and to understand the limitations of liability insurance policies in situations where people may need to be evacuated or temporarily displaced from their homes due to a transportation disruption. Funding Authority Table 13. Overview of recovery funding sources.