[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]
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