[Federal Register Volume 69, Number 84 (Friday, April 30, 2004)]
[Rules and Regulations]
[Pages 23657-23659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9827]


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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Part 62

RIN 1660-AA29


National Flood Insurance Program (NFIP); Assistance to Private 
Sector Property Insurers; Extension of Term of Arrangement

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

ACTION: Interim final rule.

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SUMMARY: FEMA is changing the current Financial Assistance/Subsidy 
Arrangement (the Arrangement) to extend its term of October 1, 2002, 
through May 1, 2004, to a term of October 1, 2002, through September 
30, 2004. The Arrangement defines the duties and responsibilities of 
insurers that sell and service insurance under the Write Your Own (WYO) 
program. It also identifies the responsibilities of the Government to 
provide financial and technical assistance to these insurers.

DATES: Effective May 2, 2004. Comments on this interim final rule 
should be received on or before June 29, 2004.

ADDRESSES: Please send your comments to the Rules Docket Clerk, Office 
of the

[[Page 23658]]

General Counsel, Federal Emergency Management Agency, 500 C Street, 
SW., Room 840, Washington, DC 20472, (facsimile) 202-646-4536, or (e-
mail) [email protected].

FOR FURTHER INFORMATION CONTACT: Edward L. Connor, FEMA, 500 C Street, 
SW., Washington, DC 20472, (phone) 202-646-3429, (facsimile) 202-646-
3445, or (e-mail) [email protected].

SUPPLEMENTARY INFORMATION: On August 9, 2002, FEMA published in the 
Federal Register, 67 FR 51768, a final rule to revise the effective 
date of the Arrangement to agree with the new Arrangement year 
beginning October 1, 2002, and ending September 30, 2003.
    FEMA had planned to make significant changes in the Arrangement 
regarding litigation issues effective October 1, 2003. The proposed 
rule for these changes was not published until October 14, 2003, 68 FR 
59146. As an interim measure, an interim final rule was published 
September 5, 2003, 68 FR 52700, extending the Arrangement term 
beginning October 1, 2002, to December 31, 2003. No comments were 
received on that interim final rule. It was anticipated that comments 
on the October 14, 2003, proposed rule could be reviewed and a final 
rule published effective January 1, 2004. This did not happen; rather, 
a second interim final rule was published on December 31, 2003, 68 FR 
75453, extending the Arrangement term beginning October 1, 2002, to May 
1, 2004. FEMA received one comment on the second interim final rule: an 
insurance association commented on the expense allowance. It is not 
feasible to complete the rulemaking for an effective date of May 2, 
2004.
    Under this extension of the current Arrangement, the expense 
allowance provided for in Article III.B of Appendix A to Part 62--
Federal Emergency Management Agency, Federal Insurance Administration, 
Financial Assistance/Subsidy Arrangement will remain the same for the 
additional five months, including the additional expense allowance of 
up to two percentage points for meeting marketing goals. This 
additional expense allowance will be based on the period May 2, 2004, 
through September 30, 2004. Please note that there was an error in the 
supplementary information of the second interim final rule that was 
published on December 31, 2003. The additional expense allowance was 
supposed to be provided from October 1, 2002, through May 1, 2004, 
consistent with the extended term of the Arrangement. It was 
inadvertently only provided until April 1, 2004. With this interim 
final rule, FEMA corrects that error and provides the additional 
expense allowance through September 30, 2004.

National Environmental Policy Act

    This interim final rule falls within the exclusion category 44 CFR 
10.8(d)(2)(ii), which addresses the preparation, revision, and adoption 
of regulations, directives, and other guidance documents related to 
actions that qualify for categorical exclusions. Qualifying for this 
exclusion and because no other extraordinary circumstances have been 
identified, this interim final rule will not require the preparation of 
either an environmental assessment or environmental impact statement as 
defined by the National Environmental Policy Act.

Executive Order 12866, Regulatory Planning and Review

    We have prepared and reviewed this rule under the provisions of 
E.O. 12866, Regulatory Planning and Review. Under Executive Order 
12866, 58 FR 51735, October 4, 1993, a significant regulatory action is 
subject to an 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.
    For the reasons that follow, we have concluded that this interim 
final rule is neither economically significant nor a significant 
regulatory action under the Executive Order. The interim final rule 
will not have an annual effect on the economy of $100 million or more 
nor will it adversely affect in a material way the economy, the 
insurance sector, competition, or other sectors of the economy. It will 
create no serious inconsistency or otherwise interfere with an action 
taken or planned by another agency. It will not materially alter the 
budgetary impact of entitlements, grants, user fees, or loan programs 
or the rights and obligations of recipients thereof. Nor does it raise 
novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in the Executive 
Order.
    OMB has not reviewed this rule under the principles of Executive 
Order 12866.

Paperwork Reduction Act

    This interim final rule does not contain a collection of 
information and is therefore not subject to the provisions of the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Executive Order 13132, Federalism

    Executive Order 13132, Federalism, dated August 4, 1999, sets forth 
principles and criteria to which agencies must adhere 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 rule under E.O. 13132 and have concluded that 
the rule does not have federalism implications as defined by the 
Executive Order. We have determined that the rule does not 
significantly affect the rights, roles, and responsibilities of States, 
and involves no preemption of State law nor does it limit State 
policymaking discretion.

Administrative Procedure Act Statement

    In general, FEMA publishes a rule for public comment before issuing 
a final rule, under the Administrative Procedure Act, 5 U.S.C. 533 and 
44 CFR 1.12. The Administrative Procedure Act, however, provides an 
exception from that general rule where the agency for good cause finds 
the procedures for comment and response contrary to public interest. 
The public benefit of this rule is the continuation of the WYO 
Arrangement without interruption. Therefore, we believe it is contrary 
to the public interest to delay the benefits of this rule. In 
accordance with the Administrative Procedure Act, 5 U.S.C. 553(d)(3), 
we find that there is good cause for the interim final rule to be 
published without prior public comment and without a full 30-day

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delayed effective date, so as to allow for the continuation of the 
Arrangement.

List of Subjects in 44 CFR Part 62

    Flood insurance.

0
Accordingly, FEMA amends 44 CFR part 62 as follows:

PART 62--SALE OF INSURANCE AND ADJUSTMENT OF CLAIMS

0
1. The authority citation for part 62 continues to read as follows:

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127 of Mar. 31, 
1979, 44 FR 19367, 3 CFR, 1979 Comp., p. 376.


0
2. In Appendix A to part 62, revise the first sentence of Article V, 
Section A to read as follows:

Appendix A to Part 62--Federal Emergency Management Agency, Federal 
Insurance Administration, Financial Assistance/Subsidy Arrangement

    Article V * * *
    A. This Arrangement shall be effective for the period October 1, 
2002 through September 30, 2004. * * *
* * * * *

Michael D. Brown,
Under Secretary, Emergency Preparedness and Response, Department of 
Homeland Security.
[FR Doc. 04-9827 Filed 4-29-04; 8:45 am]
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