NRECA praises House passage of FEMA Disaster Assistance Reform Act

The National Rural Electric Cooperative Association (NRECA) praised the recent House passage of the FEMA Disaster Assistance Reform Act of 2015.

The legislation reauthorizes the Federal Emergency Management Agency (FEMA) and expedites the process for electric co-ops to obtain reimbursement for disaster relief efforts by raising the public assistance small projects threshold from $35,000 to $1 million.

“Electric co-ops rely on reimbursements by FEMA’s Public Assistance Program for funds to restore electric power after severe disasters, such as floods, hurricanes, tornadoes and ice storms,” Jeffrey Connor, interim chief executive officer of NRECA, said. “Without FEMA reimbursement assistance, many electric cooperative consumers living in disaster-stricken areas could face higher electricity rates and struggle with recovery, causing a slower return to pre-disaster conditions.”

NRECA came out in strong support of a provision in the bill that would create a three-year limit for FEMA to reclaim funds. The agency has been able to demand return of previously granted funds due to additional internal review of the original funding decision. Many times, this process has no transparency for the parties involved.

NRECA is now advocating for quick passage of the legislation in the Senate.