[Federal Register Volume 83, Number 129 (Thursday, July 5, 2018)]
[Rules and Regulations]
[Pages 31337-31340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14477]



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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Parts 59, 61

[Docket ID FEMA-2018-0027]
RIN 1660-AA93


National Flood Insurance Program: Removal of Monroe County Pilot 
Inspection Program Regulations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Final rule.

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SUMMARY: The Federal Emergency Management Agency (FEMA) is revising its 
regulations to remove a pilot inspection program under the National 
Flood Insurance Program (NFIP). This pilot inspection program applied 
to Monroe County, Florida. FEMA terminated this program on June 28, 
2013, and is now removing the applicable regulations from the Code of 
Federal Regulations because they are no longer necessary.

DATES: This rule is effective July 5, 2018.

ADDRESSES: The docket for this rulemaking is available for inspection 
using the Federal eRulemaking Portal at http://www.regulations.gov and 
can be viewed by following that website's instructions.

FOR FURTHER INFORMATION CONTACT: Liza Davis, Associate Chief Counsel, 
Regulatory Affairs, Office of Chief Counsel, Federal Emergency 
Management Agency, 500 C Street SW, Washington, DC 20472, 202-646-4046, 
or (email) [email protected].

SUPPLEMENTARY INFORMATION:

I. Background and Discussion of the Rule

    The National Flood Insurance Act of 1968, as amended (NFIA), Title 
42 of the United States Code (U.S.C.) 4001 et seq., authorizes the 
Administrator of the Federal Emergency Management Agency (FEMA) to 
establish and carry out a National Flood Insurance Program (NFIP) to 
enable interested persons to purchase insurance against loss resulting 
from physical damage to or loss of property arising from floods in the 
United States.\1\ Under the NFIA, FEMA may only grant flood insurance 
to properties within communities that have adopted adequate land use 
and control measures.\2\ FEMA implemented a pilot inspection program on 
June 27, 2000, at 44 CFR 59.30, which applied to structures located in 
Monroe County, the Village of Islamorada in Monroe County, and the City 
of Marathon \3\ in Monroe County, Florida. 65 FR 39725, 39748 (June 27, 
2000). The pilot program was designed to help the communities verify 
that structures in these locations complied with the community's 
floodplain management ordinances and to help FEMA ensure that property 
owners paid flood insurance premiums to the NFIP commensurate with 
their flood risk. See 44 CFR 59.30(a); 79 FR 2468 (Jan. 14, 2014). FEMA 
consulted with the participating communities during the pilot program 
and in 2013 determined that the communities had fulfilled the 
requirements of the inspection procedure. As a result, FEMA notified 
the three participating communities that the pilot inspection procedure 
under 44 CFR 59.30 would terminate on June 28, 2013, pursuant to 44 CFR 
59.30(c)(1), which authorizes the Federal Insurance Administrator to 
establish the termination date for the pilot program. FEMA published a 
notice in the Federal Register on January 14, 2014, announcing that the 
pilot inspection program was terminated for Monroe County, the Village 
of Islamorada, and the City of Marathon, Florida. See 79 FR 2468 (Jan. 
14, 2014). FEMA is now removing section 59.30 as it is no longer 
necessary. FEMA is also removing Appendices A(4) through A(6) of 44 CFR 
part 61, which contain the individual endorsements for these three 
communities to the Standard Flood Insurance Policy (SFIP), indicating 
their participation in the pilot program.
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    \1\ See 42 U.S.C. 4011(a).
    \2\ See 42 U.S.C. 4022(a)(1).
    \3\ Although 44 CFR 59.30(a) only lists Monroe County and the 
Village of Islamorada, Florida, the section provides that the pilot 
inspection procedure will cover areas within Monroe County that 
incorporate on or after January 1, 1999. The City of Marathon was 
incorporated on Nov. 30, 1999, and was therefore also covered by the 
program. See City of Marathon Charter Sec.  3, at https://library.municode.com/fl/marathon/codes/code_of_ordinances?nodeId=PTICHRELA_SPACH_S3INMUCOLI.
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II. Regulatory Analysis

A. Administrative Procedure Act

    The Administrative Procedure Act (APA) generally requires agencies 
to publish a notice of proposed rulemaking in the Federal Register and 
provide interested persons the opportunity to submit comments. See 5 
U.S.C. 553(b) and (c). The APA provides an exception to this prior 
notice and comment requirement for rules of agency organization, 
procedure, or practice. 5 U.S.C. 553(b)(A). This final rule is a 
procedural rule promulgated for agency efficiency purposes. FEMA is 
removing regulations related to the Monroe County pilot inspection 
program which has been terminated. Thus, removing these regulations 
reflects FEMA's current authority and will not affect the substantive 
rights or interests of the public.
    The APA also provides an exception from notice and comment 
procedures when an agency finds for good cause that those procedures 
are impracticable, unnecessary, or contrary to the public interest. 5 
U.S.C. 553(b)(3)(B). FEMA finds good cause to issue this rule without 
prior notice or comment, as such procedures are unnecessary. The 
removal of these regulations will have no substantive effect on the 
public because the authority for the pilot program has terminated.
    Further, the APA generally requires that substantive rules 
incorporate a 30-day delayed effective date. 5 U.S.C. 553(d). This 
rule, however, is merely procedural and does not impose substantive 
requirements; thus, FEMA finds that a delayed effective date is 
unnecessary.

B. Executive Orders 12866, ``Regulatory Planning and Review'', 13563, 
``Improving Regulation and Regulatory Review'', and 13771, ``Reducing 
Regulation and Controlling Regulatory Costs''

    Executive Orders 13563 (``Improving Regulation and Regulatory 
Review'') and 12866 (``Regulatory Planning and Review'') direct 
agencies to assess the costs and benefits of available regulatory 
alternatives and, if regulation is necessary, to select regulatory 
approaches that maximize net benefits (including potential economic, 
environmental, public health and safety effects, distributive impacts, 
and equity). Executive Order 13563 emphasizes the importance of 
quantifying both costs and benefits, of reducing costs, of harmonizing 
rules, and of promoting flexibility. Executive Order 13771 (``Reducing 
Regulation and Controlling Regulatory Costs'') directs agencies to 
reduce regulation and control regulatory costs and provides that ``for 
every one new regulation issued, at least two prior regulations be 
identified for elimination, and that the cost of planned regulations be 
prudently managed and controlled through a budgeting process.''
    The Office of Management and Budget (OMB) has not designated this 
rule a ``significant regulatory action'' under section 3(f) of 
Executive Order 12866. Accordingly, the rule has not been reviewed by 
OMB. As this rule is not a

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significant regulatory action, this rule is exempt from the 
requirements of Executive Order 13771. See OMB's Memorandum ``Guidance 
Implementing Executive Order 13771, Titled `Reducing Regulation and 
Controlling Regulatory Costs''' (April 5, 2017).
    FEMA is issuing a final rule that will remove the pilot inspection 
program at 44 CFR 59.30, which describes inspection procedures to apply 
to Monroe County, Florida. The pilot program was designed to help the 
community verify that structures in this community complied with the 
community's floodplain management ordinances and help the NFIP ensure 
that property owners paid flood insurance premiums to the NFIP 
commensurate with their flood risk. FEMA terminated the pilot program 
on June 28, 2013. FEMA therefore now removes it from regulation.
    This rulemaking does not impose any changes to current programs and 
FEMA believes there would not be any costs imposed on State, Federal, 
Tribal or industry partners or stakeholders as a result of this rule.
    The benefits of this rule result from removing the codification of 
a terminated pilot program. This will simplify the CFR and reduce 
confusion, and further align the regulations with FEMA's current 
exercises of its authority.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), and 
section 213(a) of the Small Business Regulatory Enforcement Fairness 
Act of 1996, Public Law 104-121, 110 Stat. 847, 858--9 (Mar. 29, 1996) 
(5 U.S.C. 601 note) require that special consideration be given to the 
effects of regulations on small entities. The RFA applies only when an 
agency is ``required by section 553 . . . to publish general notice of 
proposed rulemaking for any proposed rule.'' 5 U.S.C. 603(a). An RFA 
analysis is not required for this rulemaking because FEMA is not 
required to publish a notice of proposed rulemaking.

D. Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 658, 1501-1504, 
1531-1536, 1571, pertains to any rulemaking which is likely to result 
in the promulgation of any rule that includes a Federal mandate that 
may result in the expenditure by State, local, and Tribal governments, 
in the aggregate, or by the private sector, of $100 million (adjusted 
annually for inflation) or more in any one year. If the rulemaking 
includes a Federal mandate, the Act requires an agency to prepare an 
assessment of the anticipated costs and benefits of the Federal 
mandate. The Act also pertains to any regulatory requirements that 
might significantly or uniquely affect small governments. Before 
establishing any such requirements, an agency must develop a plan 
allowing for input from the affected governments regarding the 
requirements.
    FEMA has determined that this rulemaking will not result in the 
expenditure by State, local, and Tribal governments, in the aggregate, 
nor by the private sector, of $100,000,000 or more in any one year as a 
result of a Federal mandate, and it will not significantly or uniquely 
affect small governments. Therefore, no actions are deemed necessary 
under the provisions of the Unfunded Mandates Reform Act of 1995.

E. Paperwork Reduction Act of 1995

    As required by the Paperwork Reduction Act of 1995 (PRA), Pub. L. 
104-13, 109 Stat. 163, (May 22, 1995) (44 U.S.C. 3501 et seq.), FEMA 
may not conduct or sponsor, and a person is not required to respond to, 
a collection of information unless FEMA obtains approval from the 
Office of Management and Budget (OMB) for the collection and the 
collection displays a valid OMB control number. FEMA has determined 
that this rulemaking does not contain any collections of information as 
defined by that Act.

F. Privacy Act/E-Government Act

    Under the Privacy Act of 1974, 5 U.S.C. 552a, an agency must 
determine whether implementation of a proposed regulation will result 
in a system of records. A ``record'' is any item, collection, or 
grouping of information about an individual that is maintained by an 
agency, including, but not limited to, his/her education, financial 
transactions, medical history, and criminal or employment history and 
that contains his/her name, or the identifying number, symbol, or other 
identifying particular assigned to the individual, such as a finger or 
voice print or a photograph. See 5 U.S.C. 552a(a)(4). A ``system of 
records'' is a group of records under the control of an agency from 
which information is retrieved by the name of the individual or by some 
identifying number, symbol, or other identifying particular assigned to 
the individual. An agency cannot disclose any record which is contained 
in a system of records except by following specific procedures.
    The E-Government Act of 2002, 44 U.S.C. 3501 note, also requires 
specific procedures when an agency takes action to develop or procure 
information technology that collects, maintains, or disseminates 
information that is in an identifiable form. This Act also applies when 
an agency initiates a new collection of information that will be 
collected, maintained, or disseminated using information technology if 
it includes any information in an identifiable form permitting the 
physical or online contacting of a specific individual.
    The system of record for the NFIP, DHS/FEMA-0003--National Flood 
Insurance Program Files, was published in the Federal Register on May 
19, 2014 (79 FR 28747). This rule does not impact this existing system 
of record, nor does it create a new system of record. Therefore, this 
rule does not require coverage under an existing or new Privacy Impact 
Assessment or System of Records Notice.

G. Executive Order 13175, ``Consultation and Coordination With Indian 
Tribal Governments''

    Executive Order 13175, ``Consultation and Coordination with Indian 
Tribal Governments,'' 65 FR 67249, November 9, 2000, applies to agency 
regulations that have Tribal implications, that is, regulations that 
have substantial direct effects on one or more Indian Tribes, on the 
relationship between the Federal government and Indian Tribes, or on 
the distribution of power and responsibilities between the Federal 
Government and Indian Tribes. Under this Executive Order, to the extent 
practicable and permitted by law, no agency shall promulgate any 
regulation that has Tribal implications, that imposes substantial 
direct compliance costs on Indian Tribal governments, and that is not 
required by statute, unless funds necessary to pay the direct costs 
incurred by the Indian Tribal government or the Tribe in complying with 
the regulation are provided by the Federal government, or the agency 
consults with Tribal officials.
    Although Tribes that meet the NFIP eligibility criteria can 
participate in the NFIP in the same manner as communities,\4\ FEMA has 
reviewed this final rule under Executive Order 13175 and has determined 
that it does not have a substantial direct effect on one or more Indian 
tribes, on the relationship between the Federal Government and Indian 
Tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian Tribes.

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This rule removes the pilot inspection program concerning Monroe 
County, Florida, which FEMA has terminated. The removal of these 
regulations therefore will have no substantive effect on the public and 
will not affect the substantive rights or interests of Indian Tribal 
governments.
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    \4\ Although the NFIP does not explicitly reference Tribal 
governments, FEMA includes Tribal nations in its definition of a 
community. See 44 CFR 59.1.
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H. Executive Order 13132, ``Federalism''

    Executive Order 13132, ``Federalism,'' 64 FR 43255, August 10, 
1999, 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, on the relationship between the national government and 
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.
    FEMA has determined that this rulemaking does not have a 
substantial direct effect on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government, and 
therefore does not have federalism implications as defined by the 
Executive Order.

I. Executive Order 11988, ``Floodplain Management''

    Pursuant to Executive Order 11988, each agency must provide 
leadership and take action to reduce the risk of flood loss and to 
minimize the impact of floods on human safety, health and welfare. In 
addition, each agency must restore and preserve the natural and 
beneficial values served by floodplains in carrying out its 
responsibilities for (1) acquiring, managing, and disposing of Federal 
lands and facilities; (2) providing Federally undertaken, financed, or 
assisted construction and improvements; and (3) conducting Federal 
activities and programs affecting land use, including but not limited 
to water and related land resources planning, regulating, and licensing 
activities. In carrying out these responsibilities, each agency must 
evaluate the potential effects of any actions it may take in a 
floodplain; ensure that its planning programs and budget requests 
reflect consideration of flood hazards and floodplain management; and 
prescribe procedures to implement the policies and requirements of the 
Executive Order.
    Before promulgating any regulation, an agency must determine 
whether the proposed regulations will affect a floodplain(s), and if 
so, the agency must consider alternatives to avoid adverse effects and 
incompatible development in the floodplain(s). If the head of the 
agency finds that the only practicable alternative consistent with the 
law and with the policy set forth in Executive Order 11988 is to 
promulgate a regulation that affects a floodplain(s), the agency must, 
prior to promulgating the regulation, design or modify the regulation 
in order to minimize potential harm to or within the floodplain, 
consistent with the agency's floodplain management regulations and 
prepare and circulate a notice containing an explanation of why the 
action is proposed to be located in the floodplain. This rule removes 
from regulation a previously-terminated pilot program. It is therefore 
procedural and will not have an effect on land use or floodplain 
management.

J. Executive Order 11990, ``Protection of Wetlands''

    Executive Order 11990, ``Protection of Wetlands,'' 42 FR 26961, May 
24, 1977, sets forth that each agency must provide leadership and take 
action to minimize the destruction, loss or degradation of wetlands, 
and to preserve and enhance the natural and beneficial values of 
wetlands in carrying out the agency's responsibilities for (1) 
acquiring, managing, and disposing of Federal lands and facilities; and 
(2) providing Federally undertaken, financed, or assisted construction 
and improvements; and (3) conducting Federal activities and programs 
affecting land use, including but not limited to water and related land 
resources planning, regulating, and licensing activities. Each agency, 
to the extent permitted by law, must avoid undertaking or providing 
assistance for new construction located in wetlands unless the head of 
the agency finds (1) that there is no practicable alternative to such 
construction, and (2) that the proposed action includes all practicable 
measures to minimize harm to wetlands which may result from such use.
    In carrying out the activities described in Executive Order 11990, 
each agency must consider factors relevant to a proposal's effect on 
the survival and quality of the wetlands. Among these factors are: 
Public health, safety, and welfare, including water supply, quality, 
recharge and discharge; pollution; flood and storm hazards; and 
sediment and erosion; maintenance of natural systems, including 
conservation and long term productivity of existing flora and fauna, 
species and habitat diversity and stability, hydrologic utility, fish, 
wildlife, timber, and food and fiber resources; and other uses of 
wetlands in the public interest, including recreational, scientific, 
and cultural uses. Because this rule removes from regulation a 
previously-terminated pilot program, it is procedural and will not have 
an effect on land use or wetlands.

K. National Environmental Policy Act of 1969 (NEPA)

    Under the National Environmental Policy Act of 1969 (NEPA), as 
amended, 42 U.S.C. 4321 et seq., an agency must prepare an 
environmental assessment or environmental impact statement for any 
rulemaking that could significantly affect the quality of the human 
environment. FEMA has determined that this rulemaking does not 
significantly affect the quality of the human environment and 
consequently has not prepared an environmental assessment or 
environmental impact statement.
    Rulemaking is a major Federal action subject to NEPA. Categorical 
exclusion A3 included in the list of exclusion categories at Department 
of Homeland Security Instruction Manual 023-01-001-01, Revision 01, 
Implementation of the National Environmental Policy Act, Appendix A, 
issued November 6, 2014, covers the promulgation of rules, issuance of 
rulings or interpretations, and the development and publication of 
policies, orders, directives, notices, procedures, manuals, and 
advisory circulars if they meet certain criteria provided in A3(a-f). 
This rule meets Categorical Exclusion A3(a), which covers rules of a 
strictly administrative or procedural nature.

L. Congressional Review of Agency Rulemaking

    Under the Congressional Review of Agency Rulemaking Act (CRA), 5 
U.S.C. 801-808, before a rule can take effect, the Federal agency 
promulgating the rule must submit to Congress and to the Government 
Accountability Office (GAO) a copy of the rule; a concise general 
statement relating to the rule, including whether it is a major rule; 
the proposed effective date of the rule; a copy of any cost-benefit 
analysis; descriptions of the agency's actions under the Regulatory 
Flexibility Act and the Unfunded Mandates Reform Act; and any other 
information or statements required by relevant executive orders.
    FEMA has sent this final rule to the Congress and to GAO pursuant 
to the

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CRA. The rule is not a ``major rule'' within the meaning of the CRA. It 
will not have 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; and 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 in domestic and export markets.

List of Subjects in 44 CFR Parts 59 and 61

    Flood insurance, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, the Federal Emergency 
Management Agency amends 44 CFR Chapter I as follows:

PART 59--GENERAL PROVISIONS

0
1. The authority citation for Part 59 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.
* * * * *

Subpart C--Pilot Inspection Program [Removed]

0
2. Remove subpart C, consisting of Sec.  59.30.
* * * * *

PART 61--INSURANCE COVERAGE AND RATES

0
3. The authority citation for Part 61 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.
* * * * *

Appendix A(4) to Part 61 [Removed]

0
4. Remove Appendix A(4) to Part 61.

Appendix A(5) to Part 61 [Removed]

0
5. Remove Appendix A(5) to Part 61.

Appendix A(6) to Part 61 [Removed]

0
6. Remove Appendix A(6) to Part 61.

Brock Long,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2018-14477 Filed 7-3-18; 8:45 am]
 BILLING CODE 9111-52-P