[Federal Register Volume 63, Number 224 (Friday, November 20, 1998)]
[Rules and Regulations]
[Pages 64423-64426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31044]


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FEDERAL EMERGENCY MANAGEMENT AGENCY

44 CFR Part 206

RIN 3067-AC89


Disaster Assistance; Redesign of Public Assistance Project 
Administration

AGENCY: Federal Emergency Management Agency (FEMA).

ACTION: Interim final rule.

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SUMMARY: We have redesigned the Public Assistance Disaster Grant 
Program to provide money to applicants more quickly and to make the 
application process simpler than before. This rule reflects changes 
needed to put the new Public Assistance Program into effect.

DATES: Effective Date: This rule is effective on November 20, 1998.
    Comments: We invite your comments on the changes to the rule and 
your recommendations for additional changes to it on or before January 
4, 1999.

ADDRESSES: Please send your comments to the Rules Docket Clerk, Office 
of the General Counsel, Federal Emergency Management Agency, room 840, 
500 C Street SW., Washington, DC 20472, (telefax) (202) 646-4536, or 
(email) [email protected].

FOR FURTHER INFORMATION CONTACT: Melissa M. Howard, Ph.D., Federal 
Emergency Management Agency, room 713, 500 C Street SW., Washington DC 
20472, (202) 646-4240, or (email) [email protected].

SUPPLEMENTARY INFORMATION:
    What does the redesigned program do? The redesigned program 
emphasizes better, more personal customer service, improved 
communications, reallocated responsibilities, more efficient and 
consistent program delivery, and a faster, simpler system for obtaining 
funding than under our current regulations. As we announced in our 
February 4, 1998 Federal Register notice, 63 FR 5804, we field tested 
the new system from March 1, 1998 to August 31, 1998. While we are 
making most of our improvements through internal changes to our 
procedures, some of the improvements require

[[Page 64424]]

amendments to the governing regulations. This publication makes those 
amendments.
    What are the basic components of the public assistance grant 
process? The grant process was redesigned around its four pillars: 
People, Process, Policy and Performance.
    People--The most important component of the redesigned program is 
People. The success of the program depends on all the people involved 
in the process, both those who apply for grants and those who are 
responsible for awarding grants. People who understand the provisions 
of the program and are willing to work cooperatively in disaster 
recovery efforts speed the process and make the redesigned program 
possible. Therefore, to ensure the highest level of professionalism and 
skill among FEMA staff, we have committed ourselves to program-wide 
training, to a credentials program, and to a greatly expanded program 
for sharing information.
    Process--We base the program on a partnership among FEMA, the 
States and local officials. FEMA's role is to provide guidance early in 
the recovery process, and in some cases, before the disaster occurs. 
This is a change from our previous focus on inspection and enforcement. 
In our new role we will provide more information about the program 
before the disaster strikes and will provide more technical assistance 
in the development of damage descriptions and cost estimates after the 
disaster.
    The States' role is essentially unchanged from the existing 
program. As Grantee, the State remains responsible for administering 
the Federal grant.
    The role of local governments and eligible private nonprofit 
organizations changes with their taking more control in meeting their 
own needs and speeding their own recovery. For example, those 
applicants who are able to do so may prepare damage descriptions and 
cost estimates for small projects. We will continue to help other 
applicants to prepare their damage descriptions and costs estimates.
    Policy--The redesigned program does not change program eligibility, 
but it does require changes to regulatory, policy and procedural 
program documents. The changes streamline, simplify and clarify program 
operations. They also make source documents readily available to those 
applying for grants and to those who administer the grants.
    Performance--The people, policies, and processes that form the 
foundation of the redesigned program will enhance program performance. 
Evaluation of that performance is an essential part of the redesigned 
program.
    Where can you find additional information? You can find additional 
descriptive information on the redesigned program on our website 
(http://www.fema.gov.). At our home page click on Disaster Assistance, 
then click on Public Assistance, and choose from the menu under the 
Public Assistance Program.
    What changes are we making to the rule? Specific changes to the 
regulations rename documents, define terms, adjust responsibilities, 
and edit the rule in a way that we hope makes it easier to read and to 
understand.
    (1) Throughout the text, ``Disaster Survey Report'' or ``DSR'' is 
renamed ``Project Worksheet.''
    (2) We edited Sec. 206.200(b) to read more clearly than before.
    (3) We redefined ``project'' in Sec. 206.201(i) to reflect our new 
policy.
    (4) In Sec. 206.202(b) we removed ``damage survey activities,'' 
because inspection teams will not exist as before. We also added 
language about the States' roles in supporting large project 
identification activities.
    (5) In Sec. 206.202(c) we changed ``Notice of Interest'' to 
``Request for Public Assistance.''
    (6) We removed the requirement for a FEMA/State/local inspection 
team in Sec. 206.202(d)(1), and changed the starting date of the ``60 
day'' period from the date of the initial visit to the date of the 
first substantive meeting.
    (7) We state in Sec. 206.202(d)(2) that we will not approve a 
Project Worksheet for less than $1,000 and we replace ``site'' with 
``project.''
    (8) In Sec. 206.202(e) we keep our obligation to explain any 
delays, but remove the requirement for written explanation of any 
delay.
    (9) Because the applicant will now prepare the Project Worksheet 
with possible help from the State, Sec. 206.228(a)(2) changes the 
description of State's responsibility from ``* * * preparation of 
damage survey reports * * *'' to ``* * * develop and validate Project 
Worksheets * * *.''
    (10) We anticipate that the form number assigned for the ``Damage 
Survey Report'' (FEMA Form 90-91) will be used for the ``Project 
Worksheet'' and that the form number assigned for the ``Notice of 
Interest'' (FEMA Form 90-49) will be used for ``Request for 
Assistance.'' If we assign new form numbers, we will make the change 
when we publish the final rule.

Administrative Procedure Act Determination

    We are publishing this interim final rule without opportunity for 
prior public comment under the Administrative Procedure Act, 5 U.S.C. 
553, having determined that a comment period would be unnecessary, 
impractical, and contrary to the public interest. This interim final 
rule does not contain any significant, substantive changes from 
previous regulations, but reflects changes to internal procedures under 
which we will process public assistance applications more quickly and 
simply than before.
    Procedures affecting public assistance applications remain 
substantially unchanged. The procedural changes do not affect the 
rights of applicants, and primarily affect how we will administer the 
program. In order to implement the programs for assessments made for FY 
1999 and beyond, we need to modify and publish its regulations. We 
invite public comments on the interim final rule. We will take into 
account any comments we receive when we publish the final rule.
    As Director I determine that good cause exists and that it is in 
the public interest to issue this interim final rule without 
opportunity for prior public comment.

National Environmental Policy Act

    Our regulations categorically exclude this rule from the 
preparation of environmental impact statements and environmental 
assessments as an administrative action in support of normal day-to-day 
grant activities. We have not prepared an environmental assessment or 
an environmental impact statement.

Regulatory Flexibility Act

    We do not expect this rule (1) to affect adversely the availability 
of disaster assistance funding to small entities, (2) to have 
significant secondary or incidental effects on a substantial number of 
small entities, or (3) to create any additional burden on small 
entities.
    As Director I certify that this rule is not a major rule under 
Executive Order 12291 and that the rule will not have significant 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act.

Paperwork Reduction Act

    This rule does not involve any collection of information for the 
purposes of the Paperwork Reduction Act.

[[Page 64425]]

Executive Order 12612, Federalism

    In publishing this rule, we considered the President's Executive 
Order 12612 on Federalism. This rule makes no changes in the division 
of governmental responsibilities between the Federal government and the 
States. Grant administration procedures under 44 CFR Part 13, Uniform 
Administrative Requirements for Grants and Cooperative Agreements to 
State and Local Governments, remain the same. We have not prepared a 
Federalism assessment.

Executive Order 12778, Civil Justice Reform

    This rule meets the applicable standards of section 2(b)(2) of 
Executive Order 12778, Civil Justice Reform, dated October 25, 1991, 3 
CFR, 1991 Comp., p. 359.

Congressional Review of Agency Rulemaking

    We have sent this final rule to the Congress and to the General 
Accounting Office under the Congressional Review of Agency Rulemaking 
Act, 5 U.S.C. 801 et seq. The rule is not a ``major rule'' within the 
meaning of that Act. It does not result in nor is it likely to result 
in an annual effect on the economy of $100,000,000 or more. It will not 
result in a major increase in costs or prices for consumers, individual 
industries, Federal, State, or local government agencies, or geographic 
regions. It will not have ``significant adverse effects'' on 
competition, employment, investment, productivity, innovation, or on 
the ability of United States-based enterprises to compete with foreign-
based enterprises.
    This final rule is exempt (1) from the requirements of the 
Regulatory Flexibility Act, as certified previously, and (2) from the 
Paperwork Reduction Act.
    This rule is not an unfunded Federal mandate within the meaning of 
the Unfunded Mandates Reform Act of 1995, Pub. L.104-4. The rule does 
not meet the $100,000,000 threshold of that Act, and any enforceable 
duties are imposed as a condition of Federal assistance or a duty 
arising from participation in a voluntary Federal program.

List of Subjects in 44 CFR Part 206

    Disaster assistance, Public assistance.
    Accordingly, 44 CFR part 206 is amended as follows:

PART 206--[AMENDED]

    1. The authority citation for part 206 continues to read as 
follows:

    Authority: The Robert T. Stafford Disaster Relief and Emergency 
Assistance Act, 42 U.S.C. 5121 et seq.; Reorganization Plan No. 3 of 
1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 44 FR 
19367, 3 CFR, 1979 Comp., p. 376; E.O. 12148, 44 FR 43239, 3 CFR, 
1979 Comp., p. 412; and E.O. 12673, 54 FR 12571, 3 CFR, 1989 Comp., 
p. 214.

    2. Revise Sec. 206.200(b) to read as follows:


Sec. 206.200  General.

* * * * *
    (b) What policies apply to FEMA public assistance grants? (1) The 
Stafford Act requires that we deliver eligible assistance as quickly 
and efficiently as possible consistent with Federal laws and 
regulations. We expect you, as State Grantee, to adhere to Stafford Act 
requirements and to the regulations in this part when you administer 
our public assistance grants.
    (2) The regulations entitled ``Uniform Requirements for Grants and 
Cooperative Agreements to State and Local Governments,'' published at 
44 CFR part 13, place requirements on you and give you discretion to 
administer federal programs under your own procedures. We expect you, 
as State grantee, to:
    (i) Inform subgrantees about the status of their applications, 
including notifications of our approvals of Project Worksheets and our 
estimates of when we will make payments;
    (ii) Pay the full amounts due to subgrantees as soon as practicable 
after we approve payment, including your State contribution required in 
the FEMA-State Agreement; and
    (iii) Pay your State contribution consistent with State laws.
    3. Revise the definitions of project and project approval in 
Sec. 206.201(i) and (j) to read as follows:


Sec. 206.201  Definitions.

* * * * *
    (i) A project is a logical grouping of work required as a result of 
the declared major disaster or emergency.
    (1) We must approve a scope of eligible work and an itemized cost 
estimate before funding a project.
    (2) A project may include eligible work at several sites.
    (j) Project approval means the process in which the Regional 
Director, or designee, reviews and signs an approval of work and costs 
on a Project Worksheet or on a batch of Project Worksheets. Such 
approval is also an obligation of funds to the Grantee.
* * * * *
    4. Revise Sec. 206.202 to read as follows:


Sec. 206.202  Application procedures.

    (a) General. This section describes the policies and procedures we 
use to process public assistance grants to States. Under this section 
you, the State, are the Grantee. As Grantee you are responsible for 
processing subgrants to applicants under 44 CFR parts 13, 14, and 206, 
and under your own policies and procedures.
    (b) Grantee. You are the grant administrator for all funds provided 
under the Public Assistance grant program. Your responsibilities under 
this section include:
    (1) Providing technical advice and assistance to eligible 
subgrantees;
    (2) Providing State support for project identification activities;
    (3) Ensuring that all potential applicants are aware of available 
public assistance; and
    (4) Submitting documents necessary for the award of grants.
    (c) Request for public assistance (Request). You, the Grantee, must 
send a completed Request (FEMA Form 90-49) to the Regional Director for 
each applicant who requests public assistance. You must send Requests 
to the Regional Director within 30 days after designation of the area 
where the damage occurred.
    (d) Project Worksheets. (1) An applicant's authorized local 
representative is responsible for representing the applicant and for 
ensuring that the applicant has identified all eligible work and 
submitted all costs for disaster-related damages for funding.
    (i) We or the applicant will prepare a Project Worksheet (FEMA Form 
90-91) for each project. The Project Worksheet must identify the 
eligible scope of work and must include a quantitative estimate for the 
eligible work.
    (ii) The applicant will have 60 days following its first meeting 
with us to identify and to report damage to us.
    (2) When the estimated cost of work on a project is less than 
$1,000, that work is not eligible and we will not approve a Project 
Worksheet for the project. Periodically we will review this minimum 
approval amount for a Project Worksheet and, if needed, will adjust the 
amount by regulation.
    (e) Grant approval. (1) When the applicant submits the Project 
Worksheets, we will have 45 days to obligate Federal funds. If we have 
a delay beyond 45 days we will explain the delay to you.
    (2) Before we obligate any funds you, the Grantee, must complete 
and send to the Regional Director a Standard Form (SF) 424, Application 
for Federal Assistance, and an SF 424D, Assurances

[[Page 64426]]

for Construction Programs. After we receive the SF 424 and SF 424D, the 
Regional Director will obligate funds to you based on the approved 
Project Worksheets. You will then approve subgrants based on the 
Project Worksheets approved for each applicant.
    5. Revise Sec. 206.228(a)(2)(i) to read as follows:


Sec. 206.228  Allowable costs.

* * * * *
    (a) * * *
    (1) * * *
    (2) Statutory Administrative Costs--(i) Grantee. Under section 
406(f)(2) of the Stafford Act, we will pay you, the State, an allowance 
to cover the extraordinary costs that you incur to develop and validate 
Project Worksheets, to prepare final inspection reports, project 
applications, final audits, and to make related field inspections by 
State employees. Eligible costs include overtime pay and per diem and 
travel expenses, but do not include regular time for your State 
employees. The allowance to you will be based on the following 
percentages of the total amount of Federal assistance that we provide 
for all subgrantees in the State under sections 403, 406, 407, 502, and 
503 of the Act:
* * * * *
    Dated: November 13, 1998.
James L. Witt,
Director.
[FR Doc. 98-31044 Filed 11-19-98; 8:45 am]
BILLING CODE 6718-02-P