[Federal Register Volume 59, Number 63 (Friday, April 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7839]


[[Page Unknown]]

[Federal Register: April 1, 1994]


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FEDERAL EMERGENCY MANAGEMENT AGENCY

44 CFR Parts 59, 60, 64, 65, 70, and 75

RIN 3067-AC17

 

National Flood Insurance Program; Insurance Coverage and Rates, 
Criteria for Land Management, Use, Identification, and Mapping of Flood 
Control Restoration Zones

AGENCY: Federal Insurance Administration, FEMA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would establish a new flood insurance rate 
zone for areas designated as flood control restoration zones on 
National Flood Insurance Program maps. It would also establish minimum 
floodplain management requirements and would provide regulatory 
guidance for implementing statutory requirements, including procedures 
to identify and map areas as flood control restoration zones.
    The intent of the proposed rule is to permit communities to 
regulate development through minimum floodplain management requirements 
and to use flood insurance rates appropriate to the temporary nature of 
flood hazards during the period when a flood protection system no 
longer provides 100-year flood protection until it is restored.

DATES: We invite comments, which we must receive on or before May 16, 
1994.

ADDRESSES: Please send any comments to the Rules Docket Clerk, Office 
of the General Counsel, Federal Emergency Management Agency, 500 C 
Street, SW., room 840, Washington, DC 20472, (fax) (202) 646-4536.

FOR FURTHER INFORMATION CONTACT: William R. Locke, Division Director, 
Hazard Identification and Risk Assessment Division, Mitigation 
Directorate, Federal Emergency Management Agency, 500 C Street, SW., 
Washington, DC 20472, (202) 646-2717.

SUPPLEMENTARY INFORMATION: This proposed rule would establish a new 
flood insurance rate zone, Zone AR, for areas designated as flood 
control restoration zones on National Flood Insurance Program maps. It 
would establish minimum floodplain management requirements and would 
provide regulatory guidance for implementing the statutory requirements 
of section 928 of Public Law 102-550, 42 U.S.C. 4014(f), including 
procedures for identification and mapping of areas as flood control 
restoration zones.
    Required by section 928 of the Housing and Community Development 
Act of 1992, 42 U.S.C. 4014(f), which amended section 1307 of the 
National Flood Insurance Act of 1968, the flood control restoration 
zone would be applied to areas of a community affected by the 
decertification of a Federal flood protection system which previously 
provided 100-year or greater flood protection. Where that level of 
protection is in the process of being fully restored, this proposed 
rule would apply flood insurance rates that are appropriate given the 
temporary nature of the flood hazard and would permit a community 
participating in the National Flood Insurance Program to regulate 
development in affected areas by applying minimum floodplain management 
requirements.
    Proposed amendments to the National Flood Insurance Program 
criteria for mapping and floodplain management would apply where (1) 
Communities are in the process of restoring a flood protection 
system(s) constructed using Federal funds, (2) FEMA previously had 
accredited the flood protection system(s) in those communities as 
providing 100-year frequency flood protection but the system(s) no 
longer does so, and (3) such system(s) has been decertified by a 
Federal agency having flood protection design and construction 
responsibility.
    Under current procedures, a determination that a flood protection 
system no longer provides 100-year flood protection results in the 
revision of National Flood Insurance Program maps to show special flood 
hazard areas and to establish base flood elevations that reflect the 
increased flood risk in the areas previously considered protected. The 
identification of new areas of special flood hazard which were 
previously protected requires floodplain management measures, flood 
insurance coverage and premium rates that reflect the increased flood 
risk.
    Where the community is restoring a minimum 100-year level of flood 
protection, these proposed regulations would provide a reasonable 
restoration period for the community to restore the flood protection 
system completely, or to achieve adequate progress in the completion of 
the system as provided for in 44 CFR 61.12 of the National Flood 
Insurance Program regulations, before the floodplain management 
requirements of 44 CFR 60.3 (a) through (d) are imposed. The proposed 
regulations provide that during the restoration period, National Flood 
Insurance Program maps for a community would be revised to identify the 
true potential flood risk. During the restoration period, flood 
insurance coverage would be available at statutorily mandated 
subsidized rates even though there is an increased flood hazard. 
Mandatory insurance purchase requirements of the Flood Disaster 
Protection Act of 1973 would apply in areas designated as AR Zones. The 
proposed regulations would also require that the community inform 
permit applicants of the implications of the AR Zone designation and 
whether the applicant's proposed structure would be elevated or 
protected to or above the AR base flood elevation.
    42 U.S.C. 4014(f) requires that FEMA publish regulations to 
implement the law on or before October 28, 1994. These proposed 
regulations are intended to recognize the community's efforts to 
restore flood protection and to address the temporary nature of the 
increased flooding hazards during the restoration period. The flood 
control restoration zone designation is temporary. When adequate 
progress has been made to restore the system, or the system is restored 
to provide 100-year level of protection, the proposed rule anticipates 
that the community will request a determination based on criteria set 
forth in 44 CFR 61.12, or 44 CFR 65.10 of the National Flood Insurance 
Program regulations, as appropriate.
    The Act sets three criteria by which a community can be considered 
to be in the process of restoring a flood protection system. The 
proposed regulations elaborate on these criteria and would establish 
specific procedures and information needed for the community's 
application for designation of a flood control restoration zone. The 
information would include a schedule for restoration of the flood 
protection system. Failure to restore the flood protection system 
completely, or to achieve adequate progress in the completion of the 
system as provided for in 44 CFR 61.12 within the restoration period 
provided in these proposed regulations would result in the removal of 
the flood control restoration zone designation and a redesignation of 
those areas as areas of special flood hazard (Zone A, Zone A1-30, AE, 
AH, and AO) subject to the applicable floodplain management 
requirements, insurance coverage, and rates for those zones.
    The proposed rule would apply only to flood control restoration 
zones in riverine floodplains. It would not apply to restoration of 
flood protection systems in coastal high hazard areas.
    The proposed rule would amend 44 CFR 59 to add the definition of a 
``developed area,'' and would amend 44 CFR 60 to add a new paragraph to 
provide floodplain management regulations for flood control restoration 
areas and other conforming changes. The proposed rule would also amend 
44 CFR Part 65 to add a new section that would establish the policy and 
procedures for remapping areas presently shown on flood insurance rate 
maps (FIRMs) as having 100-year protection when new evidence indicates 
that this level of protection no longer exists. Finally, the proposed 
rule would amend portions of 44 CFR Parts 59, 64, 66, 70, and 75 to add 
references to flood control restoration zones (Zones AR, AR/A1-30, AR/
AE, AR/AO, AR/AH, AR/A) at appropriate locations in the listings of 
flood insurance zones.

Definition of ``Developed Area''

     Developed areas, as defined in the proposed rule at 44 CFR 59.1, 
paragraphs (a)(1) and (a)(3), would be those areas generally recognized 
as ``urbanized,'' that is, they would consist generally of the urban 
core and surrounding areas having an urban density, and would not 
include less developed or undeveloped areas, or areas primarily used 
for agriculture.
    44 CFR 59.1(a)(2) would address those isolated areas beyond the 
urban core which are deemed urbanized because the land is primarily in 
commercial or industrial uses. Under paragraph (a)(2), the developed 
area would be contained within the boundary of a single parcel, tract, 
or lot.
    44 CFR 59.1(b) would address those urban fringe areas which, 
because of their relationship to surrounding developed areas, should be 
considered ``infill site'' areas. For purposes of this proposed rule, 
an ``infill site'' is a developed area. 44 CFR 59.1(c) would address 
``vested rights'' under the Act, and would establish criteria for 
determining a developed area that is planned, permitted, and where 
construction is underway and infrastructure and structures are being 
built. Paragraph (c) would recognize areas as ``developed'' where the 
investment in the land and infrastructure is substantial and 
development is underway.
    The proposed regulations would amend 44 CFR 59.24(a) to refer to 
new 44 CFR 60.3(f).

Mapping and Identification of Flood Control Restoration Zones-Zone 
AR

    Under a new 44 CFR 65.14, the proposed rule would establish 
procedures for mapping flood control restoration zones. The rule also 
would establish eligibility requirements for being in the process of 
restoring the flood control structure under the Act. The first two 
criteria required by the Act are relatively clear, that is, that the 
flood protection system be deemed restorable by a Federal agency, and 
that the restoration is scheduled to be completed within a designated 
time period negotiated by the community and FEMA. The proposed rule 
would establish a maximum 5-year restoration period during which 
eligible communities would be required to restore the flood protection 
system completely to provide a minimum 100-year level of protection or 
to meet the requirements of 44 CFR 61.12 of the National Flood 
Insurance Program regulations.
    These proposed regulations would apply nationally and, therefore, 
would recognize that the Corps of Engineers and other Federal agencies 
may be involved in the design and construction of flood protection 
systems. Thus, these proposed regulations would extend flood control 
restoration zone eligibility to communities in which the flood 
protection systems were decertified by the Corps of Engineers and any 
other Federal agency having design or construction responsibility.
    The proposed rule is designed to be consistent with the related A99 
Zone designation which may apply in certain areas where adequate 
progress has been achieved in the completion of a Federal flood 
protection system as authorized by 42 U.S.C. 4014(e). Existing FEMA 
regulations, 44 CFR 61.12, limit A99 Zone designation to communities 
that have made adequate progress on the construction of a flood 
protection system involving Federal funds. To ensure consistency with 
FEMA rules regarding A99 Zone designations, this proposed rule would 
limit eligibility for flood control restoration zone designation to 
communities where construction and restoration of a flood protection 
system is a Federally funded project and the existing flood protection 
system was constructed with Federal funds and has been decertified by a 
Federal agency responsible for flood protection design or construction.
    The third eligibility criterion required in the Act was that the 
decertified flood protection system still provide a minimum level of 
flood protection to the community. FEMA proposes that a flood 
protection system that provides protection against a 35-year or larger 
flood represents a minimum level of protection during the restoration 
period. On average, it is estimated that construction which has taken 
place in the floodplain prior to the establishment of base flood 
elevations by the National Flood Insurance Program has been built at 
about the 35-40 year flood elevation level. These structures are 
typically eligible to obtain flood insurance coverage at a subsidized 
rate. The Act has specified that the same subsidized rate be applied to 
structures located in areas designated as AR Zones. Thus, by requiring 
that the decertified system provide a minimum 35-year level of 
protection, the National Flood Insurance Program assumes an equivalent 
degree of risk in insuring structures in AR Zones as it assumes, on 
average, in insuring other structures which were built before base 
flood elevations were established.
    The proposed regulations would require a community to submit its 
proposed designation of developed areas to FEMA for approval in the 
community's application. FEMA must determine that community 
designations are consistent with the definition in the proposed rule at 
44 CFR 59.1. If there is an inadequate submission of an official map or 
a legal description, the Director shall notify the community. FEMA 
encourages communities to coordinate with FEMA on designation of 
developed areas before the community adopts an official map or a legal 
description of developed areas within the proposed designated flood 
control restoration zone. The proposed regulations would provide that 
FEMA not designate flood control restoration zones on the effective 
flood insurance rate map until all eligibility criteria and application 
procedures have been met.
    The proposed regulations also would require a community to 
designate and adopt either an official community map or a legal 
description of those areas within the designated flood control 
restoration zone (Zones AR, AR/A1-30, AR/AE, AR/AH, AR/AO or AR/A) 
which are developed areas proposed to be defined at 44 CFR 59.1. The 
community map or legal description would remain in effect as adopted 
initially in areas which are designated as flood control restoration 
zones. Communities would not be allowed to modify the map or legal 
description to redesignate developed areas while the flood control 
restoration zone designation remained in effect.
    Proposed 44 CFR 65.14 also provides for a ``dual'' flood insurance 
rate zone that recognizes that certain areas, delineated as flood 
control restoration zones, would experience residual flooding after the 
flood protection system is completely restored due to flooding from 
other flooding sources that the flood protection system does not 
contain. This proposed rule would establish ``dual'' flood insurance 
zones, known as Zones AR/A1-30, AR/AE, AR/AH, AR/AO, or AR/A. These 
``dual'' zones would imply special considerations for floodplain 
management requirements and for flood insurance rates.

Floodplain Management and Land Use Requirements in a Flood Control 
Restoration Zone

    FEMA proposes to apply base flood elevations caused by the failure 
of the flood protection system in undeveloped areas where the flood 
depth is greater than five feet. In developed areas the elevation of 
new construction could not be required to exceed 3 feet above the 
highest adjacent grade. Under this proposed rule floodplain management 
requirements of the National Flood Insurance Program would not be 
applied to substantial improvements of existing structures located in 
an AR Zone. However, in ``dual'' zone areas, structures that are 
substantially improved must be elevated (for residential or non-
residential buildings) or floodproofed (for non-residential buildings 
only) to the underlying AE, AO, AH, or A zone base flood elevation due 
to the residual flood hazard that will continue to exist after the 
flood protection system has been completely restored and the AR Zone 
designation has been removed.
    Specifically, the floodplain management requirements seek to 
accommodate the needs of developed areas while providing a higher level 
of protection in undeveloped areas. This balance is appropriate where 
restoration of a project to 100-year or greater level of protection is 
feasible; where the project will be completed within a specified time; 
and where at least a 35-year level of protection is still afforded by 
the decertified system.
    As part of the development of floodplain management regulations, 
FEMA recognized that once a flood control restoration zone is 
designated, areas that were previously designated as a B, C, or X Zone 
may become an AR Zone. Areas that were previously designated Zone A, 
A1-30, AE, AH, or AO may become a dual zone consisting of AR/A1-30, AR/
AE, AR/AH, AR/AO, or AR/A. In the dual zone situation, when the flood 
control restoration zone designation is removed, a residual flood risk 
still exists; hence the proposed regulations take into consideration 
the underlying special flood hazard area designation with base flood 
elevations which would remain in effect once the flood control project 
is completed.
    The proposed rule would amend 44 CFR 60.3 by adding a new paragraph 
(f). Section 60.3(f)(1) refers to Sec. 60.3 (c)(1) through (14) and 
(d)(1) through (4) since the community will generally have other flood 
hazard areas. In addition, development within a flood control 
restoration zone will have to meet the general floodplain management 
performance standards for new construction contained in these 
subsections. No additional construction standards need be established.
    Section 60.3(f)(2) requires the community to designate and adopt 
either an official map or a legal description of those areas within 
Zone AR, AR/A1-30, AR/AE, AR/AH, AR/AO or AR/A that are designated 
developed areas.
    Section 60.3(f)(3) through (6) establishes the elevation that must 
be used for applying the floodplain management requirements. Basically, 
the applicable elevation, the AR base flood elevation, the underlying 
A, AE, A1-30, AH, AO base flood elevation, or the elevation that is 3 
feet above highest adjacent grade must be determined first depending on 
the location of the structure. Using this elevation, the community must 
require the standards in Sec. 60.3(c)(1) through (14).
    There are no elevation requirements in Zone AR for substantial 
improvements to existing structures. However, in paragraph (f)(6), all 
substantial improvements to existing structures must be elevated to at 
least the underlying (AE, A1-30, AH, AO) base flood elevation. Figure 1 
is a diagram showing the decision-making process for determining 
National Flood Insurance Program requirements in Zones AR, AR/A1-30, 
AR/AE, AR/AH, AR/AO, and AR/A.
    Also, the regulations under Sec. 60.3(f) are likely to be far less 
complicated when applied to individual communities since communities 
may not be subject to all of the conditions in Sec. 60.3(f)(3) to (6). 
For example, a community may be entirely developed and have no 
underlying AE, AO, AH, or A zones. In this example, the community would 
be subject only to one of the conditions.
    Finally, Sec. 60.3(f)(7) requires the community to notify the 
permit applicant whether the structure will be elevated or protected 
to, or above, the base flood elevation determined for the flood control 
restoration zone (AR base flood elevation). This provision is intended 
to ensure that the permit applicant is fully aware of the risk of 
flooding if the structure is not elevated to the AR base flood 
elevation.
    The proposed rule would also amend 44 CFR 60.2(a) to add two 
references to the new Sec. 60.3(f).
    The criteria established in this proposed rule are the minimum 
standards for the adoption of floodplain management regulations within 
those areas designated as a flood control restoration zone (Zone AR, 
AR/A1-30, AR/AE, AR/AH, AR/AO or AR/A). Any community may exceed the 
minimum standards by adopting more restrictive requirements.

BILLING CODE 6718-03-P

TP01AP94.012


BILLING CODE 6718-03-C

Flood Insurance Requirements in Flood Control Restoration Zones

    The proposed rule would establish a new flood control restoration 
zone for flood insurance rating purposes by including references to the 
Zone AR, AR/A1-30, AR/AE, AR/AH, AR/AO, or AR/A at pertinent locations 
in 44 CFR parts 59, 64, 70, and 75, relating to insurance coverage and 
premiums.
    Structures located in areas designated as flood control restoration 
zones (AR Zones) on Flood Insurance Rate Maps are subject to the 
mandatory insurance purchase requirements of the National Flood 
Insurance Program. The Act specified that insurance be made available 
to structures located in flood control restoration zones at premium 
rates which do not exceed those applicable to pre-FIRM construction 
located in a special flood hazard area.
    Structures that are not built in compliance with minimum National 
Flood Insurance Program floodplain management requirements would be 
rated using actuarial rates based on the lowest floor relationship to 
the AR Zone base flood elevation.
    For as long as the AR Zone is designated, structures built prior to 
the effective date of the original flood insurance rate map will be 
eligible for insurance at the lower of the applicable pre-FIRM rate or 
the AE Zone actuarial rate based on the lowest floor relationship to 
the AR Zone base flood elevation, and the grandfathering rules and 
provisions of the National Flood Insurance Program will apply. Pre-FIRM 
buildings are to be insured as follows:
    (1) A pre-FIRM building that is currently in an area designated as 
Zone B, C, or X will continue to be rated using the pre-FIRM rate for 
that zone, as long as coverage is continuous. After a lapse in 
coverage, the building will be rated as described below in paragraph 
(4).
    (2) A pre-FIRM building that is currently in an AE Zone will 
continue to be rated using the AE Zone pre-FIRM rate. Coverage does not 
have to be continuous.
    (3) A pre-FIRM building that is currently in an AE Zone and is 
elevated to or above the AE Zone base flood elevation can continue to 
be rated using that elevation difference rate as long as coverage is 
continuous. After a lapse in coverage, the building will be rated as 
described below in paragraph (4).
    (4) A pre-FIRM building that is insured after the AR Zone is 
designated can be insured at the lower of the AE Zone pre-FIRM rate or 
the AE Zone actuarial rate based on the lowest floor relationship to 
the AR Zone base flood elevation.
    For as long as the AR Zone is designated, post-FIRM buildings 
(those built on or after the effective date of the original flood 
insurance rate map), are to be insured as follows and the 
grandfathering rules and provisions of the National Flood Insurance 
Program are applicable:
    (1) A post-FIRM building that is built in compliance with National 
Flood Insurance Program floodplain management requirements can be 
insured at the lowest of the post-FIRM rate applicable to the zone in 
which the structure was built, the pre-FIRM AE Zone rate, or the AE 
Zone actuarial rate based on the lowest floor relationship to the AR 
Zone base flood elevation.
    (2) A post-FIRM building that is built prior to the designation of 
AR Zones and which is not built in compliance with National Flood 
Insurance Program floodplain management requirements is to be rated 
using the AE Zone actuarial rate based on the lowest floor relationship 
to the AE Zone base flood elevation in effect at the time of policy 
issuance, provided that coverage is continuous.
    (3) A building which is built while the AR Zone is in effect that 
is not built in compliance with National Flood Insurance Program 
floodplain management requirements is to be rated using the AE Zone 
actuarial rate based on the lowest floor relationship to the AR Zone 
base flood elevation. This can produce an extremely high rate.

National Environmental Policy Act

    FEMA has determined, based upon an environmental assessment, that 
this rule will not have a significant impact upon the quality of the 
human environment. As a result, an Environmental Impact Statement will 
not be prepared. A finding of no significant impact is included in the 
formal docket file and is available for public inspection and copying 
at the Rules Docket Clerk, Office of the General Counsel, Federal 
Emergency Management Agency, 500 C Street, SW., Washington, DC 20472.

Regulatory Flexibility Act

    The Director certifies that this rule is exempt from the 
requirements of the Regulatory Flexibility Act because the proposed 
flood control restoration zone is required by statute, 42 U.S.C. 
4014(f), and is required to enhance and maintain community eligibility 
in the National Flood Insurance Program during the period needed to 
restore flood protection systems to provide a minimum 100-year level of 
protection required for accreditation on National Flood Insurance 
Program maps. A regulatory flexibility analysis has not been prepared. 
Paperwork Reduction Act

    FEMA has determined that this proposed rule does not contain a 
collection of information as described in section 3504(h) of the 
Paperwork Reduction Act. 
Executive Order 12612, Federalism

    This proposed rule involves no policies that have federalism 
implications under Executive Order 12612, Federalism, dated October 26, 
1987. 
Executive Order 12778, Civil Justice Reform

    This rule meets the applicable standards of section 2(b)(2) of 
Executive Order 12778. 
Executive Order 12866, Regulatory Planning and Review
    Promulgation of this proposed rule is required by statute, 42 
U.S.C. 4014(f), which also specifies the regulatory approach taken in 
the proposed rule. To the extent possible under the statutory 
requirements of 42 U.S.C. 4014(f), this proposed rule adheres to the 
principles of regulation as set forth in this Executive Order. 
List of Subjects in 44 CFR Parts 59, 60, 64, 65, 70, and 75 
    Administrative practice and procedure, Flood insurance, Flood 
plains, Reporting and recordkeeping requirements.

    Accordingly, 44 CFR parts 59, 60, 64, 65, 70, and 75 are proposed 
to be amended as follows: 
PART 59--GENERAL PROVISIONS 
    1. The authority citation for part 59 is proposed to be revised to 
read as follows:

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 3 CFR, 1979 Comp., p. 
376.


Sec. 59.1
  [Amended]

    2. Section 59.1 is proposed to be amended as follows:
    A. The definition of ``Area of shallow flooding'' is proposed to be 
revised to read as follows: 
Sec. 59.1  Definitions.
* * * * * 
    Area of shallow flooding means a designated AO, AH, AR/AO, AR/AH, 
or VO zone on a community's Flood Insurance Rate Map (FIRM) with a one 
percent or greater annual chance of flooding to an average depth of one 
to three feet where a clearly defined channel does not exist, where the 
path of flooding is unpredictable, and where velocity flow may be 
evident. Such flooding is characterized by ponding or sheet flow. 
* * * * * 
    B. The definition of ``Area of Special Flood Hazard'' is proposed 
to be revised to read as follows: 
Sec. 59.1  Definitions.
* * * * * 
    Area of special flood hazard is the land in the flood plain within 
a community subject to a one percent or greater chance of flooding in 
any given year. The area may be designated as Zone A on the FHBM. After 
detailed ratemaking has been completed in preparation for publication 
of the flood insurance rate map, Zone A usually is refined into Zones 
A, AO, AH, A1-30, AE, A99, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, VO, 
or V1-30, VE, or V. For purposes of these regulations, the term 
``special flood hazard area (SFHA)'' is synonymous in meaning with the 
phrase ``area of special flood hazard''. 
* * * * * 
    C. The definition of ``Special Hazard Area'' is proposed to be 
revised to read as follows: 
Sec. 59.1  Definitions.
* * * * * 
    Special hazard area means an area having special flood, mudslide 
(i.e., mudflow), and/or flood-related erosion hazards, and shown on a 
Flood Hazard Boundary Map or Flood Insurance Rate Map as Zone A, AO, 
A1-30, AE, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, A99, AH, VO, V1-30, 
VE, V, M, or E.
    D. A new definition, ``developed area,'' is proposed to be added 
after ``Deductible'' and before ``Development'' to read as follows: 
Sec. 59.1  Definitions.
* * * * * 
    Developed area means an area of a community that is:
    (a) A primarily urbanized, built-up area that is a minimum of 20 
contiguous acres, has basic urban infrastructure, including roads, 
utilities, communications, and public facilities, to sustain 
industrial, residential, and commercial activities, and
    (1) Within which 75 percent or more of the parcels, tracts, or lots 
contain commercial, industrial, or residential structures or uses; or
    (2) Is a single parcel, tract, or lot in which 75 percent of the 
area contains existing commercial or industrial structures or uses; or
    (3) Is a subdivision developed at a density of at least two 
residential structures per acre within which 75 percent or more of the 
lots contain existing residential structures at the time designation is 
adopted.
    (b) An undeveloped single parcel, tract, or lot of less than 20 
acres that is contiguous on at least three sides to areas meeting the 
criteria of paragraph (a) at the time the designation is adopted.
    (c) A subdivision that is a minimum of 20 contiguous acres meeting 
the density criteria in paragraph (a)(3) that has obtained all 
necessary government approvals, provided that the actual start of 
construction of residential structures has occurred on at least 10 
percent of the lots at the time the designation is adopted and 
construction is underway. 
* * * * * 
    3. Section 59.24(a) is proposed to be revised to read as follows: 
Sec. 59.24  Suspension of community eligibility. 
    (a) A community eligible for the sale of flood insurance shall be 
subject to suspension from the Program for failing to submit copies of 
adequate flood plain management regulations meeting the minimum 
requirements of paragraph (b), (c), (d), (e) or (f) of Sec. 60.3 or 
paragraph (b) of Sec. 60.4 or Sec. 60.5, within six months from the 
date the Director provides the data upon which the flood plain 
regulations for the applicable paragraph shall be based. Where there 
has not been any submission by the community, the Director shall notify 
the community that 90 days remain in the six month period in order to 
submit adequate flood plain management regulations. Where there has 
been an inadequate submission, the Director shall notify the community 
of the specific deficiencies in its submitted flood plain management 
regulations and inform the community of the amount of time remaining 
within the six month period. If, subsequently, copies of adequate flood 
plain management regulations are not received by the Director, he 
shall, no later than 30 days before the expiration of the original six 
month period, provide written notice to the community and to the state 
and assure publication in the Federal Register under part 64 of this 
subchapter, of the community's loss of eligibility for the sale of 
flood insurance, such suspension to become effective upon the 
expiration of the six month period. Should the community remedy the 
defect and the Director receive copies of adequate flood plain 
management regulations within the notice period, the suspension notice 
shall be rescinded by the Director. If the Director receives notice 
from the State that it has enacted adequate flood plain management 
regulations for the community within the notice period, the suspension 
notice shall be rescinded by the Director. The community's eligibility 
shall remain terminated after suspension until copies of adequate flood 
plain management regulations have been received and approved by the 
Director.
* * * * *
PART 60--CRITERIA FOR LAND MANAGEMENT AND USE 
    4. The authority citation for part 60 is proposed to be revised to 
read as follows:

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 3 CFR, 1979 Comp., p. 
376.

    5. Section 60.2(a) is proposed to be revised to read as follows: 
Sec. 60.2  Minimum compliance with flood plain management criteria. 
    (a) A flood-prone community applying for flood insurance 
eligibility shall meet the standards of Sec. 60.3(a) in order to become 
eligible if a FHBM has not been issued for the community at the time of 
application. Thereafter, the community will be given a period of six 
months from the date the Director provides the data set forth in 
Sec. 60.3(b), (c), (d), (e) or (f), in which to meet the requirements 
of the applicable paragraph. If a community has received a FHBM, but 
has not yet applied for Program eligibility, the community shall apply 
for eligibility directly under the standards set forth in Sec. 60.3(b). 
Thereafter, the community will be given a period of six months from the 
date the Director provides the data set forth in Sec. 60.3 (c), (d), 
(e) or (f) in which to meet the requirements of the applicable 
paragraph.
* * * * *
    6. Section 60.3(f) is proposed to be added to read as follows: 
Sec. 60.3  Flood plain management criteria for flood-prone areas. 
* * * * * 
    (f) When the Director has provided a notice of final base flood 
elevations within Zones A1-30 or AE on the community's Flood Insurance 
Rate Map, and, if appropriate, has designated AH zones, AO zones, A99 
zones, and A zones on the community's Flood Insurance Rate Map, and has 
identified flood protection restoration areas by designating Zones AR, 
AR/A1-30, AR/AE, AR/AH, AR/AO, or AR/A, the community shall:
    (1) Meet the requirements of paragraphs (c)(1) through (14) and 
(d)(1) through (4) of this section; and
    (2) Adopt the official map or legal description of those areas 
within Zones AR, AR/A1-30, AR/AE, AR/AH, AR/A, or AR/AO that are 
designated developed areas as defined in Sec. 59.1 in accordance with 
the eligibility procedures under Sec. 65.14.
    (3) For all new construction of structures in areas within Zone AR 
that are designated as developed areas and in other areas within Zone 
AR where the AR flood depth is five feet or less,
    (i) Determine the lower of either the AR base flood elevation or 
the elevation that is 3 feet above highest adjacent grade, and
    (ii) Using this elevation, require the standards of paragraphs 
(c)(1) through (14).
    (4) For all new construction of structures in those areas within 
Zone AR that are not designated as developed areas where the AR flood 
depth is greater than 5 feet,
    (i) Determine the AR base flood elevation, and
    (ii) Using that elevation require the standards of paragraphs 
(c)(1) through (14).
    (5) For all new construction of structures in areas within Zone AR/
A1-30, AR/AE, AR/AH, AR/AO, and AR/A,
    (i) Determine the applicable elevation for Zone AR from paragraphs 
(f)(3) and (4) of this section,
    (ii) Determine the base flood elevation or flood depth for the 
underlying A1-30, AE, AH, AO and A Zone, and
    (iii) Using the higher elevation from paragraphs (f)(5)(i) and (ii) 
of this section require the standards of paragraphs (c)(1) through (14) 
of this section.
    (6) For all substantial improvements to existing construction 
within Zones AR/A1-30, AR/AE, AR/AH, AR/AO, and AR/A,
    (i) Determine the A1-30 or AE, AH, AO, or A Zone base flood 
elevation, and
    (ii) Using this elevation apply the requirements of paragraphs 
(c)(1) through (c)(14) of this section.
    (7) Notify the permit applicant that the area has been designated 
as an AR, AR/A1-30, AR/AE, AR/AH, AR/AO, or AR/A Zone and whether the 
structure will be elevated or protected to or above the AR base flood 
elevation.

PART 64--COMMUNITIES ELIGIBLE FOR THE SALE OF INSURANCE

    7. The authority citation for part 64 is proposed to be revised to 
read as follows:

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 3 CFR, 1979 Comp., p. 
376.

    8. Section 64.3 is proposed to be amended as follows: An ``AR'' 
entry is added in the chart in Sec. 64.3(a)(1) after the ``AH'' entry 
and paragraph (b) is revised to read as follows:


Sec. 64.3  Flood Insurance Maps.

    (a) * * *
    (1) * * * 

AR........  Area of special flood hazard that results from the          
             decertification of a previously accredited flood protection
             system that is determined to be in the process of being    
             restored to provide a 100-year or greater level of flood   
             protection.                                                
                                                                        

* * * * *
    (b) Notice of the issuance of new or revised FHBMs or Flood 
Insurance Rate Maps is given in part 65 of this subchapter. The 
mandatory purchase of insurance is required within designated Zones A, 
A1-30, AE, A99, AO, AH, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, V1-30, 
VE, V, VO, M, and E.
* * * *

PART 65--IDENTIFICATION AND MAPPING OF SPECIAL HAZARD AREAS

    9. The authority citation for part 65 is proposed to be revised to 
read as follows:

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 3 CFR, 1979 Comp., p. 
376.


Sec. 65.14  [Redesignated as Sec. 65.15]

    10. Part 65 is proposed to be amended by redesignating Sec. 65.14 
as Sec. 65.15.
    11. Part 65 is proposed to be amended by adding a new Sec. 65.14 to 
read as follows:


Sec. 65.14  Remapping of areas for which local flood protection systems 
no longer provide 100-year flood protection.

    (a) General. (1) This section describes the procedures to follow 
and the types of information FEMA requires to designate flood control 
restoration zones. A community may be eligible to apply for this zone 
designation if the Director determines that it is engaged in the 
process of restoring a flood protection system that was:
    (i) Constructed using Federal funds,
    (ii) Recognized as providing 100-year flood protection on the 
community's effective Flood Insurance Rate Map, and
    (iii) Decertified by a Federal agency responsible for flood 
protection design or construction.
    (2) Where the Director determines that a community is in the 
process of restoring its flood protection system to provide 100-year 
minimum flood protection, a Flood Insurance Rate Map will be prepared 
that designates the temporary flood hazard areas as a flood control 
restoration zone (Zone AR). Existing Special Flood Hazard Areas shown 
on the community's effective Flood Insurance Rate Map that are further 
inundated by Zone AR flooding shall be designated as a ``dual'' flood 
insurance rate zone, Zone AR/AE or AR/AH with Zone AR base flood 
elevations, and AE or AH with base flood elevations and Zone AR/AO with 
Zone AR base flood elevations and Zone AO with flood depths, or Zone 
AR/A with Zone AR base flood elevations and Zone A without base flood 
elevations.
    (b) Limitations. A community may have a flood control restoration 
zone designation only once for the purposes of restoring a given flood 
protection system and must complete restoration of the system or meet 
the requirements of 44 CFR 61.12 within a specified period, not to 
exceed five (5) years from the date of submittal of the community's 
application for designation of a flood control restoration zone. The 
community may not extend this period. The information specified in this 
section must be supplied to FEMA by the community as part of its 
request for designation of a flood control restoration zone.
    (c) Exclusions. The provisions of these regulations do not apply in 
a coastal high hazard area as defined in 44 CFR 59.1, including areas 
that would be subject to coastal high hazards as a result of the 
decertification of a flood protection system shown on the community's 
effective Flood Insurance Rate Map (FIRM) as providing 100-year 
protection.
    (d) Effective date for risk premium rates. The effective date for 
any risk premium rates established for Zone AR shall be the effective 
date of the revised Flood Insurance Rate Map showing AR Zone 
designations.
    (e) Application and submittal requirements for designation of a 
Flood Control Restoration Zone. A community must submit a written 
request to the Director, signed by the community's Chief Executive 
Officer, for a flood plain designation of a flood control restoration 
zone. The request must include a legislative action by the community 
requesting the designation. The Director will not initiate any action 
to designate flood control restoration zones without receipt of the 
formal request from the community that complies with all requirements 
of this section. The Director reserves the right to request additional 
information from the community to support or further document the 
community's formal request for designation of a flood control 
restoration zone, if deemed necessary. At a minimum, each request must 
include the following:
    (1) A statement whether, to the best of the knowledge of the 
community's Chief Executive Officer, the flood protection system is 
currently the subject matter of litigation before any Federal, State or 
local court or administrative agency, and if so, the purpose of that 
litigation;
    (2) A statement whether the community has previously requested a 
determination with respect to the same subject matter from the 
Director, and if so, a statement that details the disposition of such 
previous request;
    (3) A statement from the community and certification by a Federal 
agency responsible for flood protection design or construction that the 
existing flood control system shown on the effective Flood Insurance 
Rate Map was built using Federal funds, that it no longer provides 100-
year flood protection, but that it continues to provide at least a 35-
year level of protection;
    (4) A statement identifying the local project sponsor responsible 
for restoration of the flood protection system to the 100-year or 
greater level of flood protection;
    (5) A copy of a feasibility study, performed by a Federal agency 
responsible for flood protection design or construction in consultation 
with the local project sponsor, which deems that the flood protection 
system is restorable to a 100-year or greater level of flood 
protection;
    (6) A joint statement from the Federal agency responsible for flood 
protection design or construction involved in restoration of the flood 
protection system and the local project sponsor certifying that the 
design and construction of the flood control system involves Federal 
funds, and that the restoration of the flood protection system will 
provide 100-year or greater flood protection;
    (7) A restoration plan to return the system to a 100-year or 
greater level of protection. At a minimum, this plan must:
    (i) List all important project elements, such as acquisition of 
permits, approvals, and contracts and construction schedules of planned 
features;
    (ii) Identify anticipated start and completion dates for each 
element, as well as significant milestones and dates;
    (iii) Identify the date on which ``as built'' drawings and 
certification for the completed restoration project will be submitted. 
This date must provide for a restoration period not to exceed five (5) 
years from the date of submittal of the community's application for 
designation of a flood control restoration zone, or;
    (iv) Identify the date on which the community will submit a request 
for a finding of adequate progress that meets all requirements of 
Sec. 61.12. This date may not exceed five (5) years from the date of 
submittal of the community's application for designation of a flood 
control restoration zone;
    (8) An official map of the community or legal description, with 
supporting documentation, that the community will adopt as part of its 
floodplain management measures, which designates developed areas as 
defined in Sec. 59.1 and as further defined in Sec. 60.3(f).
    (f) Review and response by the Director. The review and response by 
the Director shall be in accordance with procedures specified in 
Sec. 65.9.
    (g) Requirements for maintaining designation of a flood control 
restoration zone. During the restoration period, the community and the 
cost-sharing Federal agency must certify annually to the FEMA Regional 
Office having jurisdiction that the restoration will be completed in 
accordance with the restoration plan within the time period specified 
by the plan. In addition, the community and the Federal agency will 
update the restoration plan and will identify any permitting or 
construction problems that will delay the project completion from the 
restoration plan previously submitted to the Director. The FEMA 
Regional Office having jurisdiction will make an annual assessment and 
recommendation to the Director as to the viability of the restoration 
plan and will conduct periodic on-site inspections of the flood 
protection system under restoration.
    (h) Criteria for removing flood control restoration zone 
designation due to adequate progress or complete restoration of the 
flood protection system. At any time during the restoration period, the 
community may provide written evidence of certification from a Federal 
agency having flood protection design or construction responsibility 
that the necessary improvements have been completed and that the system 
has been restored to provide a minimum 100-year level of protection, or 
may submit a request for a finding of adequate progress that meets all 
requirements of Sec. 61.12. If the Director determines that adequate 
progress has been made, FEMA will revise the zone designation from a 
flood control restoration zone designation to Zone A99. After the 
improvements have been completed and certified by a Federal agency as 
providing a minimum 100-year level of protection, FEMA will revise the 
Flood Insurance Rate Map to reflect the completed flood control system.
    (i) Criteria for removing flood control restoration zone 
designation due to non-compliance with the restoration schedule or as a 
result of a finding that satisfactory progress is not being made to 
complete the restoration. At any time during the restoration period, 
should the Director determine that satisfactory progress is not being 
made to restore complete flood protection by the flood protection 
system in accordance with the restoration plan, or that there is 
sufficient cause to find that the restoration will not be completed in 
accordance with the time-frame specified in the restoration plan, the 
Director shall notify the community and the responsible Federal agency 
of that determination. Based on the Director's determination, the 
Director shall revise the Flood Insurance Rate Map, removing the flood 
control restoration zone designations and redesignating those areas as 
Zone A1-30, AE, AH, AO, or A.

PART 70--PROCEDURE FOR MAP CORRECTION

    12. The authority citation for part 70 is proposed to be revised to 
read as follows:

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 3 CFR, 1979 Comp., p. 
376.

    13. Section 70.1 is proposed to be revised to read as follows:


Sec. 70.1  Purpose of part.

    The purpose of this part is to provide an administrative procedure 
whereby the Director will review the scientific or technical 
submissions of an owner or lessee of property who believes his property 
has been inadvertently included in designated A, AO, A1-30, AE, AH, 
A99, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, VO, V1-30, VE, and V 
Zones, as a result of the transposition of the curvilinear line to 
either street or to other readily identifiable features. The necessity 
for this part is due in part to the technical difficulty of accurately 
delineating the curvilinear line on either a Flood Hazard Boundary Map 
or Flood Insurance Rate Map. These procedures shall not apply when 
there has been any alteration of topography since the effective date of 
the first National Flood Insurance Program map (i.e., Flood Hazard 
Boundary Map or Flood Insurance Rate Map) showing the property within 
an area of special flood hazard. Appeals in such circumstances are 
subject to the provisions of part 65 of this subchapter.

    14. Section 70.3(a) is proposed to be revised to read as follows:


Sec. 70.3  Right to submit technical information.

    (a) Any owner or lessee of property (applicant) who believes his 
property has been inadvertently included in a designated A, AO, A1-30, 
AE, AH, A99, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, VO, V1-30, VE, 
and V Zones on a Flood Hazard Boundary Map or a Flood Insurance Rate 
Map, may submit scientific or technical information to the Director for 
the Director's review.
* * * * *
    15. Paragraphs (a) and (b) of Sec. 70.4 are proposed to be revised 
to read as follows:


Sec. 70.4  Review by the Director.

    (a) The property is within a designated A, AO, A1-30, AE, AH, A99, 
AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, VO, V1-30, VE, or V Zone, and 
shall set forth the basis of such determination; or
    (b) The property should not be included within a designated A, AO, 
A1-30, AE, AH, A99, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, VO, V1-30, 
VE, or V Zone and that the Flood Hazard Boundary Map or Flood Insurance 
Rate Map will be modified accordingly; or
* * * * *
    16. Paragraph (c) of section 70.5 is proposed to be revised to read 
as follows:


Sec. 70.5  Letter of Map Amendment.

* * * * *
    (c) The identification of the property to be excluded from a 
designated A, AO, A1-30, AE, AH, A99, AR, AR/A1-30, AR/AE, AR/AO, AR/
AH, AR/A, VO, V1-30, VE, or V Zone.

PART 75--EXEMPTION OF STATE-OWNED PROPERTIES UNDER SELF-INSURANCE 
PLAN

    17. The authority citation for part 75 is proposed to be revised to 
read as follows:

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 3 CFR, 1979 Comp., p. 
376.

    18. Section 75.1 is proposed to be revised to read as follows:


Sec. 75.1  Purpose of part.

    The purpose of this part is to establish standards with respect to 
the Director's determinations that a State's plan of self-insurance is 
adequate and satisfactory for the purposes of exempting such State, 
under the provisions of section 102(c) of the Act, from the requirement 
of purchasing flood insurance coverage for State-owned structures and 
their contents in areas identified by the Director as A, AO, AH, A1-30, 
AE, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, A99, M, V, VO, V1-30, VE, 
and E Zones, in which the sale of insurance has been made available, 
and to establish the procedures by which a State may request exemption 
under section 102(c).

    19. Section 75.10 is proposed to be revised to read as follows:


Sec. 75.10  Applicability.

    A State shall be exempt from the requirement to purchase flood 
insurance in respect to State-owned structures and, where applicable, 
their contents located or to be located in areas identified by the 
Director as A, AO, AH, A1-30, AE, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, 
AR/A, A99, M, V, VO, V1-30, VE, and E Zones, and in which the sale of 
flood insurance has been made available under the National Flood 
Insurance Act of 1968, as amended, provided that the State has 
established a plan of self-insurance determined by the Director to 
equal or exceed the standards set forth in this subpart.

    20. Paragraphs (a)(4), (a)(5), and (a)(7) of section 75.11 are 
proposed to be revised to read as follows:


Sec. 75.11  Standards.

    (a) * * *
    (4) Consist of a self-insurance fund and/or a commercial policy of 
insurance or reinsurance for which provision is made in statute or 
regulation and which is funded by periodic premiums or charges 
allocated for state-owned structures and their contents in areas 
identified by the Director as A, AO, AH, A1-30, AE, AR, AR/A1-30, AR/
AE, AR/AO, AR/AH, AR/A, A99, M, V, VO, V1-30, VE, and E Zones. The 
person or persons responsible for such self-insurance fund shall report 
on its status to the chief executive authority of the State, or to the 
legislature, or both, not less frequently than annually. The loss 
experience shall be shown for each calendar or fiscal year from 
inception to current date based upon loss and loss adjustment expense 
incurred during each separate calendar or fiscal year compared to the 
premiums or charges for each of the respective calendar or fiscal 
years. Such incurred losses shall be reported in aggregate by cause of 
loss under a loss coding system adequate, as a minimum, to identify and 
isolate loss caused by flood, mudslide (i.e., mudflow) or flood-related 
erosion. The Director may, subject to the requirements of paragraph 
(a)(5) of this section, accept and approve in lieu of, and as the 
reasonable equivalent of the self-insurance fund, an enforceable 
commitment of funds by the State, the enforceability of which shall be 
certified to by the State's Attorney General, or other principal legal 
officer. Such funds, or enforceable commitment of funds in amounts not 
less than the limits of coverage which would be applicable under 
Standard Flood Insurance Policies, shall be used by the State for the 
repair or restoration of State-owned structures and their contents 
damaged as a result of flood-related losses occurring in areas 
identified by the Director as A, AO, AH, A1-30, AE, AR, AR/A1-30, AR/
AE, AR/AO, AR/AH, AR/A, A99, M, V, VO, V1-30, VE, and E Zones.
    (5) Provide for the maintaining and updating by a designated State 
official or agency not less frequently than annually of an inventory of 
all State-owned structures and their contents within A, AO, AH, A1-30, 
AE, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, A99, M, V, VO, V1-30, VE, 
and E zones. The inventory shall:
    (i) Include the location of individual structures;
    (ii) Include an estimate of the current replacement costs of such 
structures and their contents, or of their current economic value; and
    (iii) Include an estimate of the anticipated annual loss due to 
flood damage.
* * * * *
    (7) Include, pursuant to Sec. 60.12 of this subchapter, a certified 
copy of the flood plain management regulations setting forth standards 
for State-owned properties within A, AO, AH, A1-30, AE, AR, AR/A1-30, 
AR/AE, AR/AO, AR/AH, AR/A, A99, M, V, VO, V1-30, VE, and E Zones.
* * * * *
    21. Paragraph (c) of section 75.13 is proposed to be revised to 
read as follows:


Sec. 75.13  Review by the Director.

* * * * *
    (c) Upon determining that the State's plan of self-insurance equals 
or exceeds the standards set forth in Sec. 75.11 of this subpart, the 
Director shall certify that the State is exempt from the requirement 
for the purchase of flood insurance for State-owned structures and 
their contents located or to be located in areas identified by the 
Director as A, AO, AH, A1-30, AE, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, 
AR/A, A99, M, V, VO, V1-30, VE, and E Zones. Such exemption, however, 
is in all cases provisional. The Director shall review the plan for 
continued compliance with the criteria set forth in this part and may 
request updated documentation for the purpose of such review. If the 
plan is found to be inadequate and is not corrected within ninety days 
from the date that such inadequacies were identified, the Director may 
revoke his certification.

    Dated: March 28, 1994.
James L. Witt,
Director.
[FR Doc. 94-7839 Filed 3-31-94; 8:45 am]
BILLING CODE 6718-03-P