[Federal Register Volume 68, Number 129 (Monday, July 7, 2003)]
[Notices]
[Pages 40284-40289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-17043]


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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency


Pre-Disaster Mitigation Program

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

ACTION: Notice of availability of Pre-Disaster Mitigation competitive 
grants.

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SUMMARY: The Federal Emergency Management Agency (FEMA) gives notice of 
the availability of Pre-Disaster Mitigation (PDM) competitive grants 
for fiscal year (FY) 2003. FEMA will provide PDM funds to assist States 
and communities to implement a sustained pre-disaster natural hazard 
mitigation program to reduce overall risk to the population and 
structures, while also reducing reliance on funding from actual 
disaster declarations. For FY 2003, these funds will be awarded on a 
competitive basis with a National priority on funding mitigation 
projects that address National Flood Insurance Program (NFIP) 
repetitive flood loss properties.

DATES: States and Federally recognized Indian Tribal governments 
complete grant applications must be received electronically or on paper 
by the appropriate FEMA Regional Office on or before midnight, Eastern 
Time, October 6, 2003. If the non-federal cost share requirement cannot 
be met by the application deadline due to pending State and/or local 
legislative approval or fiscal year timelines, the Applicant still must 
submit the application by October 6, 2003, including a notation in the 
Budget Narrative and a letter to the FEMA Regional Director providing 
an explanation and stating that the cost share will be available by 
November 4, 2003. The Applicant must follow-up with a written 
certification to the FEMA Regional Director by November 4, 2003 to 
verify that non-federal cost share funding is approved and available 
for immediate use if the application is selected by FEMA.

ADDRESSES: FEMA Regional Offices:
    FEMA Region I--Serving Maine, New Hampshire, Vermont, Rhode Island, 
Connecticut, and Massachusetts: J.W. McCormack POCH Building, Boston, 
MA 02109.
    FEMA Region II--Serving New York, New Jersey, Puerto Rico, and the 
U.S. Virgin Islands: 26 Federal Plaza, Rm. 1307, New York, NY 10278-
0001.
    FEMA Region III--Serving the District of Columbia, Delaware, 
Maryland, Pennsylvania, Virginia, and West Virginia: 1 Independence 
Mall, 6th Floor, 615 Chestnut Street, Philadelphia, PA 19106-4404.
    FEMA Region IV--Serving Alabama, Florida, Georgia, Kentucky, 
Mississippi, North Carolina, South Carolina, and Tennessee: 3003 
Chamblee Tucker Road, Atlanta, GA 30341.
    FEMA Region V--Serving Illinois, Indiana, Michigan, Minnesota, 
Ohio, and Wisconsin: 536 S. Clark Street, 6th Floor, Chicago, IL 60605.
    FEMA Region VI--Serving Arkansas, Louisiana, New Mexico, Oklahoma, 
and Texas: FRC 800 North Loop 288, Denton, TX 76209-3698.
    FEMA Region VII--Serving Iowa, Kansas, Missouri, and Nebraska: 2323 
Grand Avenue, Suite 900, Kansas City, MO 64108-2670.
    FEMA Region VIII--Serving Colorado, Montana, North Dakota, South 
Dakota, Utah, and Wyoming: Denver Federal Center, Building 710, Box 
25267, Denver, CO 80225-0267.
    FEMA Region IX--Serving Arizona, California, Hawaii, Nevada, the 
Territory of American Samoa, the Territory of Guam, and the 
Commonwealth of the Northern Mariana Islands: 1111 Broadway, Suite 
1200, Oakland, CA 94607-4052.
    FEMA Region X--Serving Alaska, Idaho, Oregon, and Washington: 
Federal Regional Center, 130 228th Street, SW., Bothell, WA 98021-979.

FOR FURTHER INFORMATION CONTACT: Karen Magnino, Program Planning 
Branch, Mitigation Division, FEMA, 500 C Street, SW., Room 444, 
Washington, DC 20472, (202) 646-3807 or e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

Appropriations

    $150 million was made available for the PDM grant program under 
Consolidated Appropriations Resolution, 2003, Public Law (Pub. L.) 108-
7. In general, grants are to be awarded on a competitive basis and 
without reference to State allocations, quotas, or other formula-based 
allocation of funds. Funds should be used primarily to fund mitigation 
activities that address natural hazards, but multi-hazard projects and 
plans may also address hazards caused by non-natural forces.
    From the $150 million FY 2003 appropriation for the PDM program, 
$975,000 was rescinded by a general provision in the law that directs 
every program, project, and activity be reduced by 0.65 percent. FEMA 
made available $250,000 ($248,375 after rescission) to each of the 
fifty States, the District of Columbia, Puerto Rico, the Virgin 
Islands, Guam, and American Samoa for state and local hazard mitigation 
planning. A Notice of Funds Availability for the PDM planning grants 
was published on March 3, 2003. $3.6 million of PDM funds will be 
available as Disaster Resistant University (DRU) grants, through 
separate notice, to State, local and Tribal governments for pre-
disaster mitigation activities that benefit universities. Approximately 
$131.5 million is available for PDM competitive grants, technical 
assistance and program support.

Authorities

    The PDM program was authorized by section 203 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (Stafford Act), 
42 U.S.C. 5133, as amended by section 102 of the Disaster Mitigation 
Act of 2000 (DMA), Pub. L. 106-390, 114 Stat. 1552, to assist States 
and communities to implement a sustained pre-disaster natural hazard 
mitigation program to reduce overall risk to the population and 
structures, while also reducing reliance on funding from actual 
disaster declarations. The PDM program provides a significant 
opportunity to raise risk awareness and to reduce the Nation's disaster 
losses through pre-disaster mitigation planning, and the implementation 
of planned, pre-identified, cost effective mitigation measures that are 
designed to reduce injuries, loss of life, and damage and destruction 
of property from all hazards, including damage to critical facilities.
    44 CFR Part 201, Hazard Mitigation Planning, establishes criteria 
for State and local hazard mitigation planning, pursuant to section 322 
of the Stafford Act, as amended by section 104 of the DMA. After 
November 1, 2003, FEMA-approved local mitigation plans will be required 
as a condition of receiving

[[Page 40285]]

PDM grants for local mitigation project grants. FEMA-approved local 
mitigation plans are not required for project grants awarded with FY 
2003 PDM funds. FEMA is in the process of clarifying language to 
reflect that local mitigation plans are not required for project grants 
awarded with FY 2003 PDM funds competed as of the date of this Notice. 
After November 1, 2004, a FEMA-approved Standard State mitigation plan 
will also be required as a condition of receiving PDM project grants 
for State and local mitigation activities. The Standard State 
Mitigation Plan also will be required for non-emergency assistance 
provided under the Stafford Act, including Public Assistance funds for 
restoration of damaged facilities and Hazard Mitigation Grant Program 
funding. Therefore, the development of State and local multi-hazard 
mitigation plans is key to maintaining eligibility for future FEMA 
funding.

Applicant Eligibility

    Only the state emergency management agencies or a similar office 
(i.e., the office that has emergency management responsibility) of the 
State, the District of Columbia, the U.S. Virgin Islands, the 
Commonwealth of Puerto Rico, Guam, American Samoa, and the Commonwealth 
of the Northern Mariana Islands, as well as Federally recognized Indian 
Tribal governments are eligible to apply to FEMA for assistance as 
Applicants under this program.
    In keeping with the intent of FEMA's overall policy, ``Government-
to-Government Relations with American Indian and Alaska Native Tribal 
Governments,'' published at 64 FR 2095, January 12, 1999, Federally 
recognized Indian Tribal governments may choose to apply for PDM grants 
either through the State as a Sub-applicant or directly to FEMA as an 
Applicant. (This choice is independent of a designation under other 
FEMA grants and programs.) Some State regulations prohibit the State 
from acting as an Applicant for an Indian Tribe. In such cases, or if 
the Tribe chooses, the Tribal government may act as its own Applicant. 
However, when legally permitted, Indian Tribal governments are 
encouraged to continue existing relationships with the State as the 
Applicant.

Sub-applicant Eligibility

    Other state agencies, Federally recognized Indian Tribal 
governments, and local governments, to include state recognized Indian 
Tribes, authorized tribal organizations, and Alaska Native villages are 
eligible to apply to the Applicant as Sub-applicants. Private non-
profit organizations are not eligible to apply as Sub-applicants; 
however, they may request a local government to submit an application 
for their proposed activity on their behalf.
    All Applicants and Sub-applicants must be participating in the NFIP 
if they have been identified through the NFIP as having a Special Flood 
Hazard Area (SFHA) (a Flood Hazard Boundary Map (FHBM) or Flood 
Insurance Rate Map (FIRM) has been issued). In addition, the community 
must not be on probation, suspended or withdrawn from the NFIP.

Grant Application Process

    Potential Sub-applicants should consult the official designated 
point of contact in their State/Tribe for more information pertaining 
to their application process.
    FEMA's electronic grants (e-Grants) system should be used by 
Applicants and Sub-applicants whenever possible. FEMA has developed the 
e-Grants system to meet the intent of the eGovernment initiative, 
authorized by Pub. L. 106-107, passed on November 20, 1999. This 
initiative requires that all government agencies both streamline grant 
application processes and provide for the means to electronically 
create, review, and submit a grant application via the Internet. Use of 
the e-Grants system will greatly assist FEMA in rapidly reviewing and 
evaluating the applications for the PDM program. FEMA's e-Grants system 
incorporates all of the elements noted below for the PDM application in 
a user-friendly format for both Applicant and Sub-applicant use. The 
electronic process may substitute for the paper-based process in that 
Sub-applicants' applications are electronically transmitted to the 
Applicant for review and action. It will be the Applicant's 
responsibility to determine which sub-applications will be included in 
their final application to FEMA. The Applicant also must prioritize the 
sub-applications included in its application to FEMA. FEMA will use the 
information transmitted through the e-Grants system to evaluate 
applications and make award decisions, monitor ongoing performance and 
manage the flow of federal funds, and to closeout the grant award when 
all work is completed.
    If an Applicant does not use the e-Grants system, the Applicant may 
submit a paper application, which can be obtained from the FEMA 
Regional Office. The grant application should include:
    [sbull] Application for Federal Assistance, Standard Form 424;
    [sbull] Budget Information--Construction Program, FEMA Form 20-15; 
or
    [sbull] Budget Information--Non-Construction Program, FEMA Form 20-
20;
    [sbull] Budget Narrative explaining cost items that have been 
budgeted;
    [sbull] Summary Sheet for Assurances and Certification, FEMA Form 
20-16;
    [sbull] Assurances--Non-Construction Program, FEMA Form 20-16A; or,
    [sbull] Assurances--Construction Program, FEMA Form 20-16B;
    [sbull] Certification Regarding Lobbying; Debarment, Suspension and 
Other Responsible Matters; and Drug-Free Workplace Requirements, FEMA 
Form 20-16C;
    [sbull] Disclosure of Lobbying Activities, Standard Form LLL;
    [sbull] Approved Indirect Cost Agreement, if applicable;
    [sbull] Documentation to support Sub-applicant status as a small, 
impoverished community, if appropriate, for Federal cost share of up to 
90 percent;
    [sbull] Documentation for the hazard risk assessment determination. 
This is only required as part of mitigation planning sub-applications;
    [sbull] Complete Benefit-Cost Analysis documentation for mitigation 
projects;
    [sbull] The Applicant should include a Program Narrative for all 
the sub-applications for which PDM funding is requested. The Applicant 
must rank each sub-application included in the Program Narrative in 
order of their priority based on the Applicant's mitigation plan. Only 
one sub-application should be ranked number 1, 2, 3, etc. The Program 
Narrative should include:
    (1) Individual activity location and name of Sub-Applicant;
    (2) Timeline/schedule for each activity;
    (3) Individual activity costs, including Federal and non-Federal 
shares;
    (4) Activity-specific scopes of work, including a list of 
properties, if applicable;
    (5) Certification that the Applicant has evaluated the included 
activities, that they meet all PDM program eligibility criteria, and 
that they will be implemented in accordance with 44 CFR Part 13, 
Uniform Administrative Requirements for Grants and Cooperative 
Agreements to State and Local Governments;
    (6) Responses to the Supplemental Questions for each Sub-applicant 
activity for competitive ranking and evaluation (Supplemental Questions 
are available for Applicants and Sub-applicants on the FEMA Web site: 
http://www.fema.gov/fima/pdm.shtm);

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    (7) Recommendations and documentation regarding the environmental 
review required by 44 CFR Part 10, Environmental Considerations, and 
other applicable laws and executive orders, including responses to 
Established Questions for mitigation projects and complete 
environmental/historic documentation (the environmental/historic 
Established Questions are available for Applicants and Sub-applicants 
on the FEMA Web site: http://www.fema.gov/fima/pdm.shtm); and
    (8) Assurance that the Sub-application is complete and addresses 
all program requirements including the Supplemental Questions, thereby 
meeting the program criteria outlined under section 203(g) of the 
Stafford Act.

National Priority for FY 2003

    For FY 2003, FEMA has established a National priority on funding 
mitigation projects that address NFIP repetitive flood loss properties. 
By focusing on the mitigation of NFIP repetitive flood loss properties 
through acquisition, relocation, elevation, floodproofing, and minor 
structural projects that save lives and protect property, there will be 
significant reductions to the NFIP claims payments; improvement to the 
soundness of the National Flood Insurance Fund; and reduction to 
disaster housing payments, emergency response expenses, and disaster 
assistance to fund the repair of the infrastructure. In addition, fewer 
families will lose wages and fewer businesses will suffer reduced 
profits as a result of flooding. Also, in the case of property 
acquisition, there will be increased recreational opportunities and an 
enhancement of the environment through the creation of open space along 
rivers and streams. Most importantly, communities and their residents 
will be safer from flood hazards.

Eligible Activities and Associated Costs

    Mitigation Planning. Applicants may request mitigation planning 
funds to provide mitigation planning assistance to Sub-applicants, 
including delivery of mitigation planning workshops and assistance in 
the development of mitigation plans. Applicants and Sub-applicants may 
request mitigation planning funds to develop State, Tribal, and local 
multi-hazard mitigation plans that meet the planning criteria outlined 
in 44 CFR part 201 pursuant to section 322 of the Stafford Act, 42 
U.S.C. 5133, including the development of risk assessments for 
mitigation plans. Proposals may be submitted for countywide or multi-
jurisdictional plans since many mitigation issues are better resolved 
by evaluating hazards in a more comprehensive fashion, however, multi-
jurisdictional plans must be adopted by all jurisdictions covered by 
the plan. Multi-hazard mitigation planning must primarily focus on 
natural hazards but may also address hazards caused by non-natural 
forces.
    Because FEMA's National priority for FY 2003 is to fund proposals 
that address NFIP repetitive flood loss properties, communities with 
NFIP repetitive flood loss properties are urged to address those 
properties in their risk assessment and planning process.
    As part of the competitive grant program, up to 10 percent of the 
funds requested in the mitigation planning sub-application may be used 
for information dissemination activities regarding cost-effective 
mitigation technologies. These activities may include marketing and 
outreach (brochures and videos, etc.), related to the proposed 
mitigation planning activity.
    Mitigation Projects. Multi-hazard mitigation projects must 
primarily focus on natural hazards but may also address hazards caused 
by non-natural forces. Funding is restricted to a maximum of $3 million 
of Federal funds per project. The following are eligible types of 
mitigation projects:
    [sbull] Property acquisition or relocation of hazard prone property 
for conversion to open space in perpetuity;
    [sbull] Structural and non-structural retrofitting (including 
designs and feasibility studies when included as part of the 
construction project) for wildfire, seismic, wind or flood hazards 
(e.g., elevation, storm shutters, hurricane clips);
    [sbull] Minor structural hazard control or protection projects that 
may include vegetation management, and stormwater management (e.g., 
culverts, floodgates, retention basins); and,
    [sbull] Localized flood control projects, such as certain ring 
levees and floodwall systems, that are designed specifically to protect 
critical facilities and that do not constitute a section of a larger 
flood control system.
    Mitigation projects must also meet the following general criteria:
    (1) Be cost-effective and substantially reduce the risk of future 
damage, hardship, loss, or suffering resulting from a major disaster, 
consistent with 44 CFR 206.434(c)(5) and related guidance, and have a 
Benefit Cost Analysis that results in a benefit cost ratio of at least 
1.0. Mitigation projects without a Benefit Cost Analysis or with a 
benefit cost ratio less than 1.0 will not be considered for the PDM 
competitive grant program. Mitigation projects with higher benefit cost 
ratios will be more competitive. Applicants may use programs or 
mechanisms other than the FEMA benefit-cost model to conduct the 
Benefit Cost Analysis; however the methodology used must be consistent 
with the FEMA benefit-cost model and approved in advance by FEMA. To 
facilitate the review and approval of eligible mitigation activities, 
FEMA has developed an alternative approach to determine cost 
effectiveness for mitigating certain NFIP repetitive loss properties 
(information on the alternative approach to determine cost 
effectiveness is available for Applicants and Sub-applicants on the 
FEMA Web site: http://www.fema.gov/fima/pdm.shtm);
    (2) Be in conformance with the current FEMA-approved State hazard 
mitigation plan;
    (3) Solve a problem independently or constitute a functional 
portion of a solution where there is assurance that the project as a 
whole will be completed, consistent with 44 CFR 206.434(c)(4);
    (4) Be in conformance with 44 CFR Part 9, Floodplain Management and 
Protection of Wetlands, 44 CFR Part 10, Environmental Considerations;
    (5) Not duplicate the assistance that another Federal agency or 
program has the primary authority to provide, consistent with 44 CFR 
206.434(g);
    (6) Be located in a community that (a) does not have a SFHA, or (b) 
is participating in the NFIP if the community has an identified SFHA (a 
FHBM or FIRM has been issued). The community must not be on probation, 
suspended or withdrawn from the NFIP; and,
    (7) Meet the requirements of Federal, State, and local laws.
    As part of the competitive grant, up to 10 percent of the funds 
requested in the project sub-application may be used for information 
dissemination activities regarding cost-effective mitigation 
technologies. These activities may include marketing and outreach 
(brochures and videos, etc.), related to the proposed mitigation 
project.
    Applicant Management Costs. Applicants may request up to 10 percent 
of the total planning and project grant funding requested for 
management costs to support the solicitation, review and processing of 
PDM sub-applications and awards, and to provide technical assistance to 
Sub-applicants, including assisting Sub-applicants with Benefit Cost 
Analysis and environmental and historic documentation. Care must be 
taken not to provide more technical assistance to one Sub-applicant 
than

[[Page 40287]]

another to avoid the appearance of pre-selection. If requested, 
indirect costs must be included as part of management costs and must be 
supported with a current Indirect Cost Rate approved by a Federal 
Cognizant Agency. However, in no case will the amount of funding 
awarded for management costs exceed 10 percent of the total amount 
awarded for mitigation planning and project sub-grants. There is no 
waiver to increase Applicant Management Costs.
    Applicants that request management costs must submit a separate 
sub-application for their management costs. Management costs will not 
factor into the competitive evaluation of planning or project proposals 
submitted by the Applicant and do not need a Benefit Cost Analysis. 
Funding for Applicant management costs will not be awarded until all 
planning and project sub-applications have been awarded to ensure that 
Applicant management costs do not exceed 10 percent of the total 
planning and project sub-grant awards. Management costs will be cost 
shared with up to 75 percent of eligible costs provided by FEMA and at 
least 25 percent provided by a non-Federal source to the maximum 
Federal share approved by FEMA.
    Sub-applicant Management Costs. Sub-applicants may request a 
maximum of 5 percent of the total grant funding requested for 
management costs to support approved planning activities or projects. 
Sub-applicant management costs must be included as part of the planning 
activity or project costs and, therefore, must be included in the 
Benefit Cost Analysis for projects. If requested, indirect costs must 
be included as part of the Management Costs and must be supported with 
a current Indirect Cost Rate approved by a Federal Cognizant Agency. 
However, in no case will the total Federal share for any project, 
including management costs, exceed $3 million. There is no waiver to 
increase Sub-applicant Management Costs.

Ineligible Activities

    Ineligible Mitigation Projects. The following mitigation projects 
are ineligible for the PDM program:
    [sbull] Major flood control projects such as dikes, levees, 
floodwalls, seawalls, groins, jetties, dams, waterway channelization; 
beach nourishment or renourishment;
    [sbull] Warning systems;
    [sbull] Engineering designs that are not integral to a proposed 
project;
    [sbull] Feasibility studies that are not integral to a proposed 
project;
    [sbull] Drainage studies that are not integral to a proposed 
project;
    [sbull] Generators that are not integral to a proposed project;
    [sbull] Phased or partial projects;
    [sbull] Flood studies or mapping; and,
    [sbull] Response and communication equipment.
    Cost Overruns. The PDM program is a competitive grant program and, 
therefore, award amounts are final. There are no cost overruns 
associated with this program.

Cost Share Requirement

    FEMA will contribute up to 75 percent of the total amount approved 
under the grant award, to implement approved activities. At least 25 
percent of the total approved under the grant award must be provided 
from a non-Federal source. Grants awarded to small, impoverished 
communities may receive a Federal share of up to 90 percent of the 
total amount approved under the grant award, to implement eligible 
approved activities. A small, impoverished community must meet all of 
the following criteria:
    [sbull] It must be a community of 3,000 or fewer individuals that 
is identified by the State as a rural community, and is not a remote 
area within the corporate boundaries of a larger city;
    [sbull] It must be economically disadvantaged, with residents 
having an average per capita annual income not exceeding 80 percent of 
national per capita income, based on best available data;
    [sbull] It must have a local unemployment rate that exceeds by one 
percentage point or more, the most recently reported, average yearly 
national unemployment rate; and
    [sbull] It must meet any other factors as determined by the State 
in which the community is located.
    All non-Federal contributions, cash and in-kind, are accepted as 
part of the non-Federal share. Except as allowed by Federal statute, no 
other Federal funds can be used as a cost share. Requirements for in-
kind contributions can be found in 44 CFR 13.24. In-kind contributions 
must be directly related to eligible program costs. The following 
documentation is required for third-party cash and in-kind 
contributions: record of source of donor, dates, rates, amounts, and 
deposit slips for cash contributions.

Evaluation and Award Processes

    National Ranking. FEMA will score all eligible activities on the 
basis of predetermined, objective, quantitative factors to calculate a 
National Ranking Score. Mitigation planning activities will be scored 
separately from mitigation projects.
    [sbull] Ranking factors for competitive mitigation planning 
activities, listed in order of importance, are:
    (1) Sub-applicant's assessment of risks by hazard;
    (2) The priority given to the sub-application by the Applicant;
    (3) Community mitigation factors such as Community Rating System 
class, Cooperating Technical Partner, participation as a Firewise 
Community, and adoption of codes to include Building Code Effectiveness 
Grading Schedule, International Code Series and National Fire 
Protection Association 5000 Code;
    (4) Status of FEMA-approved local, Standard State/Tribal and 
Enhanced State/Tribal mitigation plans; and,
    (5) Status of the Sub-applicant as a small, impoverished community.
    [sbull] Ranking factors for mitigation projects, listed in order of 
importance with the same importance given to numbers 5, 6, and 7, are:
    (1) Benefit Cost ratio by hazard based on Applicant's Benefit Cost 
Analysis;
    (2) The priority given to the sub-application by the Applicant;
    (3) Community mitigation factors such as Community Rating System 
class, Cooperating Technical Partner, participation as a Firewise 
Community, and adoption of codes to include Building Code Effectiveness 
Grading Schedule, International Code Series and National Fire 
Protection Association 5000 Code;
    (4) Status of FEMA-approved local, Standard State/Tribal and 
Enhanced State/Tribal mitigation plans;
    (5) Percent of the population benefiting (equals the community 
population divided by the individuals directly benefiting);
    (6) Status of the Sub-applicant as a small, impoverished community; 
and
    (7) Whether the project protects critical facilities.
    PDM is a competitive grant program in which Applicants compete for 
limited funds and, as such, the program must emphasize funding eligible 
cost-effective mitigation activities. Therefore, mitigation projects 
with higher benefit cost ratios will be more competitive. To enhance 
proposal competitiveness, Applicants are encouraged to conduct a 
thorough Benefit Cost Analysis in accordance with this Notice that 
demonstrates the maximum benefits associated with their mitigation 
project. Mitigation projects with a benefit cost ratio less than 1.0 
will not be considered for the PDM competitive grant program.
    Proposals will be ranked in descending order based on the National 
Ranking Scores, and the highest scored applications representing 150 
percent of

[[Page 40288]]

funds available nationally for the competitive PDM program will 
progress to the National Evaluation phase. FEMA will also include the 
two highest-scoring sub-applications submitted by each State and the 
two highest scoring sub-applications from Federally recognized Indian 
Tribal government Applicants in the National Evaluation, if not 
included in the 150 percent, to ensure a geographic spread of the 
applications considered. FEMA also may include additional sub-
applications that are primarily focused on the National priority to 
address NFIP repetitive flood loss properties among the sub-
applications that progress to the National Evaluation.
    National Evaluation. National panels, chaired by FEMA and composed 
of FEMA headquarters and regional staff, other Federal agency staff, 
and State representatives, will convene to evaluate the proposals on 
the basis of additional predetermined qualitative factors to calculate 
a National Evaluation Score. Mitigation planning activities will be 
scored separately from mitigation projects.
    [sbull] Evaluation factors for competitive mitigation planning 
activities, listed in order of importance with the same importance 
given to numbers 7 and 8, are:
    (1) Feasibility of project methodology and outcome;
    (2) Implementation involves reasonable timeline and expectations;
    (3) Sufficient staff and resources to implement;
    (4) Consistency with the National priority to address FEMA-
identified targeted NFIP repetitive flood loss properties;
    (5) Community mitigation incentives to include tax credits, waiver 
of building permit fees, and building codes;
    (6) Leverages State and local community involvement through 
partnerships;
    (7) Identifies appropriate outreach activities that advance 
mitigation;
    (8) Serves as a model for other communities;
    (9) Innovation and creativity used as part of the best available 
options; and,
    (10) National Ranking score.
    [sbull] Evaluation factors for mitigation projects, listed in order 
of importance with the same importance given to numbers 9 and 10, are:
    (1) Feasibility of project methodology and outcome;
    (2) Implementation involves reasonable timeline and expectations;
    (3) Sufficient staff and resources to implement;
    (4) Consistency with the National priority to reduce NFIP 
repetitive flood loss properties; Federal laws and Executive Orders to 
include National Environmental Policy Act, National Historic 
Preservation Act, Clean Water Act, Floodplain Management, and Seismic 
Safety of Federal Buildings; and Federal programs such as American 
Heritage Rivers Initiative, SBA Mitigation Loan Program and EPA 
Watershed Initiative;
    (5) Community mitigation incentives to include tax credits, waiver 
of building permit fees, and building codes;
    (6) Whether the project protects critical facilities;
    (7) Leverages State and local community involvement through 
partnerships;
    (8) Serves as a model for other communities;
    (9) Offers durable financial and social benefits;
    (10) Identifies appropriate outreach activities that advance 
mitigation;
    (11) Innovation and creativity used as part of the best available 
options; and,
    (12) National Ranking Score.
    Selection/Award. For FY 2003 PDM competitive funds, awards will be 
governed by Consolidated Appropriations Resolution, Pub. L. 108-7, 
section 203 of the Stafford Act, as amended by section 102 of the DMA, 
this notice, and program guidance, which will be made available to the 
public on the FEMA Internet site: http://www.fema.gov/fima/pdm.shtm.
    The Headquarters Approving Federal Official shall consider the 
National Evaluation Score, any comments and recommendations from the 
independent reviewers, the National priority, and other pertinent 
information to determine which sub-applications to approve. After the 
sub-applications are selected, FEMA Regional offices will work with 
Applicants whose sub-applications are selected to implement the grant 
award.

Environmental/Historic Preservation Review Process

    FEMA has determined, in accordance with 44 CFR 10.8(d)(2)(iii), 
that mitigation planning activities have no impact on the environment 
and will require no further environmental or historic preservation 
review. However, mitigation projects will require environmental/
historic preservation review. Construction type activities usually 
require more extensive review, or even an environmental assessment with 
alternatives addressed and/or historic preservation consultation. For 
selected mitigation projects that require any level of environmental/
historic preservation review, FEMA will not award the grant and the 
Applicant may not initiate construction until FEMA has completed its 
review. FEMA will complete the environmental and historic preservation 
review with the assistance of both the Applicant and the Sub-applicant.
    If, after review of the responses to the established environmental/
historic questions, supporting documentation, and the consultations 
with regulatory/resource agencies, FEMA determines that certain 
compliance measures are required to address the environmental/historic 
impacts of a selected project, FEMA will notify the Applicant. The 
Applicant or Sub-applicant may determine whether or not to accept the 
grant award based on the estimated additional cost of the compliance 
measures. The amount of the Federal share will not be increased to 
cover any additional costs. Therefore, it is essential that Applicants 
and Sub-applicants include costs associated with any anticipated 
environmental/historic preservation compliance measures or alternatives 
identified through the development of the environmental/historic 
preservation documentation in the project budget at the time of 
application submission.

Reconsideration

    At its discretion, FEMA may review a decision where there is an 
indication of material technical or procedural error that influenced 
our decision. Requests for reconsideration based upon technical or 
procedural error should be directed to the Regional Director within 60 
days of receiving notice of our decision. The Regional Director will 
analyze the reconsideration request and make a recommendation to the 
Director of the Mitigation Division at Headquarters or his designee.

Reporting Requirements

    The following reports are required from Applicants that are awarded 
PDM competitive grants (Grantees):
    [sbull] Federal Cash Transaction Reports. If the Grantee uses the 
U.S. Department of Health and Human Services (HHS) Payment Management 
System-SMARTLINK, the Grantee shall submit a copy of the PMS 272 Cash 
Transaction Report submitted to the HHS) to FEMA.
    [sbull] Financial Status Reports. The Grantee shall submit 
Financial Status Reports, SF 269 or FF 20-10, to the FEMA regional 
office within 30 days from the end of the first federal quarter 
following the initial grant award. The Regional Director may waive this 
initial report. The Grantee shall submit quarterly financial status 
reports thereafter until the grant ends. Reports

[[Page 40289]]

are due on January 30, April 30, July 30, and October 30.
    [sbull] Performance Reports:
    (1) The Grantee shall submit performance reports (no required 
format) to the FEMA Regional Office within 30 days after end of each 
quarter. Reports are due January 30, April 30, July 30 and October 30.
    (2) Quarterly performance report shall consist of a comparison of 
actual accomplishment of the approved activity and report the name, 
completion status, expenditure, and payment-to-date of each approved 
activity/sub-grant award under the Grant Award.
    [sbull] Final Reports. The Grantee shall submit a Final Financial 
Status Report and Performance Report within 90 days from Grant Award 
Performance Period expiration date, per 44 CFR 13.50.
    [sbull] Enforcement. In reference to 44 CFR 13.43 Enforcement, the 
Regional Director may suspend drawdowns from the HHS/Payment Management 
System-SMARTLINK or take other remedial actions for non-compliance if 
quarterly reports are not submitted.

    Dated: July 1, 2003.
Anthony S. Lowe,
Mitigation Division Director, Emergency Preparedness and Response 
Directorate.
[FR Doc. 03-17043 Filed 7-3-03; 8:45 am]
BILLING CODE 6718-36-P