[Federal Register Volume 68, Number 111 (Tuesday, June 10, 2003)]
[Rules and Regulations]
[Pages 34545-34547]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14487]


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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Part 206

RIN 1660-AA15


Disaster Assistance; Public Assistance Program and Community 
Disaster Loan Program Statutory Changes

AGENCY: Federal Emergency Management Agency, Emergency Preparedness and 
Response Directorate, Department of Homeland Security.

ACTION: Adoption of interim final rule as final.

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SUMMARY: This final rule adopts the interim final rule, published in 
the Federal Register on May 4, 2001, to implement portions of the 
Disaster Mitigation Act of 2000 that affect large in-lieu contributions 
(alternate projects), irrigation facilities, critical/non-critical 
private nonprofit facilities, and community disaster loans.

DATES: The Interim Final Rule published on May 4, 2001 at 66 FR

[[Page 34546]]

22443 became effective on October 30, 2000.

FOR FURTHER INFORMATION CONTACT: James Walke, FEMA, 500 C Street, SW., 
Washington, DC 20472, (facsimile) (202) 646-3304, or e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: On May 4, 2001, FEMA published in the 
Federal Register an interim final rule to implement portions of the 
Disaster Mitigation Act of 2000 that affect large in-lieu contributions 
(alternate projects), irrigation facilities, critical/non-critical 
private nonprofit facilities, and community disaster loans (66 FR 
22443, May 4, 2001). The closing date for the submission of comments 
was July 3, 2001.

Comments on the Interim Final Rule

    By the close of the comment period, FEMA received one comment on 
the interim final rule from an emergency management association. The 
major concern expressed by the membership of the association was the 
reduction from 90% to 75% of the Federal share for alternate projects. 
The association recognized that this reduction is a statutory change to 
the Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(Stafford Act), 42 U.S.C. 5172 and therefore beyond the scope of FEMA's 
rulemaking authority.

Adoption as Final Rule

    Accordingly, the interim final rule to implement portions of the 
Disaster Mitigation Act of 2000 that affect large in-lieu contributions 
(alternate projects), irrigation facilities, critical/non-critical 
private nonprofit facilities, and community disaster loans which was 
published at 66 FR 22443 on May 4, 2001, is adopted as a final rule 
without change.

National Environmental Policy Act (NEPA)

    NEPA imposes requirements for considering the environmental impacts 
of agency decisions. It requires that an agency prepare an 
Environmental Impact Statement (EIS) for ``major federal actions 
significantly affecting the quality of the human environment.'' If an 
action may or may not have a significant impact, the agency must 
prepare an environmental assessment (EA). If, as a result of this 
study, the agency makes a Finding of No Significant Impact (FONSI), no 
further action is necessary. If it will have a significant effect, then 
the agency uses the EA to develop an EIS.
    Categorical Exclusions. Agencies can categorically identify actions 
(for example, repair of a building damaged by a disaster) that do not 
normally have a significant impact on the environment. The purpose of 
this final rule is to amend our Stafford Act rules to incorporate part 
of the changes mandated by the Disaster Mitigation Act of 2000 for the 
Public Assistance Program and for Community Disaster Loans. 
Accordingly, we have determined that this rule is excluded from the 
preparation of an environmental assessment or environmental impact 
statement under 44 CFR 10.8(d)(2)(ii), where the rule is related to 
actions that qualify for categorical exclusion. The changes reflected 
in this rule are exempt from NEPA because they reflect administrative 
changes to the programs that have no potential to affect the 
environment. We would perform an environmental review under 44 CFR part 
10, Environmental Considerations, on each proposed project that we 
would fund and implement under the authorities covered in this rule.

Paperwork Reduction Act

    This rule is not subject to the provisions of the Paperwork 
Reduction Act. It does not require any new information collections and 
therefore would not revise the number and types of responses, 
frequency, and burden hours.

Regulatory Planning and Review

    We have prepared and reviewed this final rule under the provisions 
of Executive Order 12866, Regulatory Planning and Review. Under 
Executive Order 12866, 58 FR 51735, October 4, 1993, a significant 
regulatory action is subject to OMB review and the requirements of the 
Executive Order. The Executive Order defines ``significant regulatory 
action'' as one that is likely to result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    This final rule implements certain mandatory provisions of the 
Disaster Mitigation Act of 2000 that relate to the Public Assistance 
Program and the Community Disaster Loan Program. The authorities 
mandated would not of themselves have an annual effect on the economy 
of $100 million or more. We anticipate that the impacts of the 
alternate projects provision will be neutral, expecting that the 
savings from reducing the Federal share of the Federal estimate from 90 
percent to 75 percent will be offset by fewer applications for 
assistance under this authority. We do not anticipate any change in 
costs by adding irrigation facilities to the definition of eligible 
private nonprofit facilities inasmuch as the rule reflects the statute 
and codifies our current policy and practices. Most of the private 
nonprofit organizations that will have to apply for SBA disaster loans 
before being eligible to apply for FEMA disaster assistance have 
damages well below the SBA loan limit of $1,500,000. We do not expect 
this provision will have an impact of $100,000,000 or more per year. 
Finally, we do not anticipate that savings from amendments to the 
Community Disaster Loan provision will exceed $100,000,000 over a 
several-year period--our experience is that disaster loan forgiveness 
rates are between 60 and 70 percent. Over the last 25 years, the annual 
amount of money forgiven has been an average of $2.7 million. We know 
of no conditions that would qualify the rule as a significant 
regulatory action'' within the definition of section 3(f) of the 
Executive Order. To the extent possible this rule adheres to the 
principles of regulation as set forth in Executive Order 12866. The 
Office of Management and Budget has not reviewed this rule under the 
provisions of Executive Order 12866.

Executive Order 13132, Federalism

    Executive Order 13132 sets forth principles and criteria that 
agencies must adhere to in formulating and implementing policies that 
have federalism implications, that is, regulations that have 
substantial direct effects on the States, or on the distribution of 
power and responsibilities among the various levels of government. 
Federal agencies must closely examine the statutory authority 
supporting any action that would limit the policymaking discretion of 
the States, and to the extent practicable, must consult with State and 
local officials before implementing any such action.
    We have reviewed this final rule under Executive Order 13132 and 
have

[[Page 34547]]

determined that the rule does not have federalism implications as 
defined by the Executive Order. The rule would define and establish the 
conditions and criteria under which FEMA would grant public assistance 
and make community disaster loans. The rule would in no way that we 
foresee affect the distribution of power and responsibilities among the 
various levels of government or limit the policymaking discretion of 
the States.
    The interim final rule published on May 4, 2001 at 66 FR 22443 is 
adopted as final without change.

    Dated: June 2, 2003.
Michael D. Brown,
Under Secretary, Emergency Preparedness and Response.
[FR Doc. 03-14487 Filed 6-9-03; 8:45 am]
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