[Federal Register Volume 85, Number 211 (Friday, October 30, 2020)]
[Rules and Regulations]
[Pages 68782-68790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23970]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Parts 59 and 64

[Docket ID FEMA-2019-0016]
RIN 1660-AA92


Revisions to Publication Requirements for Community Eligibility 
Status Information Under the National Flood Insurance Program

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule modernizes regulations regarding publication 
requirements of community eligibility status information under the 
National Flood Insurance Program (NFIP). FEMA is replacing outdated 
regulations that require publication of community loss of eligibility 
notices in the Federal Register with a requirement that FEMA publish 
this information on the internet or by another comparable method. FEMA 
is also replacing its requirement that the agency maintain a list of 
communities eligible for flood insurance in the Code of Federal 
Regulations with a requirement that FEMA publish this list on the 
internet or by another comparable method.

DATES: This rule is effective December 2, 2020.

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: Adrienne Sheldon, Supervisory 
Emergency Management Specialist, Floodplain Management Division, 
Federal Insurance and Mitigation Administration, Federal Emergency 
Management Agency, 400 C Street SW, Washington, DC 20472, 
[email protected], (202) 674-1087.

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 FEMA to establish and carry out the National Flood 
Insurance Program (NFIP) to enable interested persons to purchase 
insurance against loss resulting from

[[Page 68783]]

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 and that enforce 
adequate land use and control measures that regulate floodplains.\2\ 
The statute authorizes FEMA to develop land use criteria consistent 
with requirements laid out in the NFIA and to encourage the adoption 
and enforcement of State and local measures implementing those 
criteria.\3\ FEMA floodplain management regulations governing community 
eligibility for participation in the NFIP are located at 44 CFR parts 
59, 60, and 64.
---------------------------------------------------------------------------

    \1\ See 42 U.S.C. 4011(a).
    \2\ See 42 U.S.C. 4022(a)(1).
    \3\ See 42 U.S.C. 4102(c).
---------------------------------------------------------------------------

    FEMA regulations at 44 CFR 60.3, 60.4, and 60.5 contain land use 
measures for floodplain management. If a community fails to demonstrate 
to FEMA that it meets these requirements, or decided to withdraw from 
the NFIP, FEMA may initiate probation, suspension, or withdrawal 
procedures as described in 44 CFR 59.24. In the case of a loss of 
eligibility, for instance if a community is suspended for failing to 
enforce its floodplain regulations, FEMA notifies the community of the 
upcoming loss directly and gives the community an opportunity to 
correct the deficiency that triggered the procedures. In cases of loss 
of eligibility, FEMA publishes a notice of the upcoming loss of 
eligibility in the Federal Register as required by 44 CFR 59.24.
    NFIP regulations at 44 CFR 64.6 provide a list of communities where 
the sale of flood insurance under the NFIP is authorized as set forth 
in Subpart B, ``Eligibility Requirements,'' to part 59 of the 
regulations. Due to the large number of communities eligible for flood 
insurance and the relative frequency to changes to community 
eligibility, maintaining a list of communities in FEMA's regulations is 
not feasible; however, FEMA meets this requirement by publishing the 
updated list of communities through periodic final rules in the Federal 
Register. FEMA last published an updated list in the Federal Register 
in August 2006.
    On February 12, 2020, FEMA published a Notice of Proposed 
Rulemaking (NPRM) (85 FR 7902) proposing to make two changes to its 
regulations regarding publication requirements of community eligibility 
status information under the NFIP. The NPRM proposed to replace 
outdated regulations that require publication of community loss of 
eligibility notices in the Federal Register with a requirement that 
FEMA publish the information on the internet or other comparable 
method. The NPRM also proposed to replace the requirement that the 
agency maintain a list of communities eligible for flood insurance in 
the Code of Federal Regulations (CFR) with a requirement that FEMA 
publish this list on the internet or other comparable method. The NPRM 
explained FEMA would transition to the new form of publication by first 
publishing brief notices monthly in the Federal Register for six months 
after the effective date of the final rule.
    The NPRM solicited public comment on these proposed changes. FEMA 
received six comments related to the rulemaking. In this final rule, 
FEMA adopts the changes it proposed in the NPRM, with clarifications in 
consideration of the related comments. FEMA describes these changes 
below.

II. Summary and Discussion of Public Comments

    Of the six comments FEMA received related to this rulemaking, five 
were generally in support of the proposed changes in the NPRM and one 
was neutral. Three members of the public [FEMA-2019-0016-0003, FEMA-
2019-1660-0007, and FEMA-2019-0016-0002] expressed their support for 
the rule generally. One member of the public [FEMA-2019-0016-0003] 
stated she was supportive of the move to an online notification process 
and also of the proposed transition period in the NPRM while another 
member of the public [FEMA-2019-1660-0007] expressed support for the 
changes and noted that the NRPM aligned with OMB M-19-21 regarding a 
transition to electronic records and other such Federal Government 
initiatives. A third member of the public [FEMA-2019-0016-0002] 
expressed general support for the changes. The Association of State 
Floodplain Managers (ASFPM) [FEMA-2016-0016-0006] expressed support for 
the changes, as did the Massachusetts Department of Conservation and 
Recreation [FEMA-2019-1600-0004].

A. The Community Status Book (CSB)

    Three commenters provided feedback on the use of the CSB. One 
anonymous commenter [FEMA-2019-0016-0005] stated a need to include 
communities that are not mapped in a Special Flood Hazard Area (SFHA) 
and not participating in the NFIP in the CSB. The commenter opined that 
the absence of these communities from the list of communities not 
participating in the NFIP created confusion for everyday users and 
required them to reach out to additional resources which undermines the 
cost savings proposed in the rule. FEMA respectfully disagrees with the 
commenter. The statute requires FEMA to develop minimum floodplain 
management criteria to ``(1) constrict the development of land which is 
exposed to flood damage where appropriate, (2) guide the development of 
proposed construction away from locations which are threatened by flood 
hazards, (3) assist in reducing damage caused by floods, and (4) 
otherwise improve the long-range land management and use of flood-prone 
areas.'' \4\ FEMA is required to focus NFIP floodplain management 
efforts on communities with flood-prone or special flood hazard areas. 
Consistent with the statutory requirement, the CSB provides a list of 
those communities participating in the NFIP and those communities not 
participating in the NFIP when those communities are in a currently 
mapped flood risk area. Some communities that do not have special flood 
hazard areas may still participate in the NFIP. The statutory language 
allows any state or area (or subdivision thereof) to participate if 
they have expressed an interest in participating and have adopted the 
required land use and control measures ``consistent with the 
comprehensive criteria for land management and use'' required by the 
statute and regulatory framework.\5\ Such participation is voluntary 
and those communities are captured in the CSB as participating 
communities. It would be impractical and inappropriate for FEMA to 
include communities that are not in special flood hazard areas that are 
not participating in the NFIP program in the CSB. Including those 
communities in the CSB would not be consistent with its purpose--to 
provide the status of those communities participating in the NFIP. 
ASFPM [FEMA-2019-0016-0006] requested that FEMA develop a second tool 
to compare to the CSB to determine which communities are eligible, 
providing a mechanism for users to find communities not otherwise found 
in the CSB. As explained above, if a community is eligible and 
participating, the community is listed as a participating community in 
the CSB. If the community is suspended from participating in the NFIP, 
that community is also listed in the CSB as a community not 
participating in the NFIP along with other communities that contain 
identified flood hazard areas that have either withdrawn from or have 
not yet participated in the NFIP. The NFIP is a voluntary program. FEMA

[[Page 68784]]

would not have knowledge of those communities that do not contain 
special flood hazard areas and would otherwise be eligible for the 
program, which requires that they have land use authority, unless those 
communities apply for the NFIP. Finally, a member of the public [FEMA-
2019-0016-0002] suggested that FEMA make the CSB easy to search and 
access if the rule is to be finalized. FEMA appreciates the comment and 
will add instructions to the main CSB page on www.fema.gov on how to 
search the CSB.
---------------------------------------------------------------------------

    \4\ 42 U.S.C. 4102.
    \5\ 42 U.S.C. 4012.
---------------------------------------------------------------------------

B. Outreach

    ASFPM also requested that FEMA develop and implement an outreach 
plan to message changes to the publication process and improve 
awareness of the CSB. The commenter recommended FEMA coordinate with 
state and local partners on this outreach effort, to update printed and 
online materials regarding process, and to provide accommodations for 
those that cannot access information online. As explained in the NPRM, 
FEMA will continue to publish notices in the Federal Register for six 
months after the effective date of this rule to notify communities of 
their NFIP status to allow communities to adjust to the changed process 
as part of the ongoing outreach efforts. The notices will contain 
information on how to access community status information so that the 
public will become familiar with the new process. Additionally, FEMA 
will utilize www.fema.gov to provide notifications to communities of 
their status with information on how individuals can check their 
community status during and after the transition period. In the 
required notification letters FEMA sends to impacted communities 
notifying them of potential suspensions 90 days and 30 days prior to 
final suspension, FEMA will provide information on how the notification 
process will transition to the CSB and www.fema.gov respectively. The 
agency will also ensure outreach to notify other stakeholders of these 
changes through webinars, printed materials, and other information 
posted on www.fema.gov for flood insurance agents and the public. 
Individuals without internet access will be able to contact their local 
floodplain management official and/or State NFIP Coordinating Office 
directly for assistance.
    Additionally, the Massachusetts Department of Conservation and 
Recreation [FEMA-2019-1600-0004] commented that FEMA must continue to 
notify state NFIP coordinating offices in a timely manner of 
communities which have become ineligible to participate in the program. 
FEMA intends to continue the current practice of notifying state 
coordinators of community suspensions and this final rule will not 
impact that practice.

C. Other Methods of Notice

    One member of the public [FEMA-2019-1660-0003] suggested 
broadcasting community status information through TV commercials, 
social media, and/or billboards in the impacted community to raise 
awareness. FEMA appreciates the commenter's desire to ensure 
stakeholders are notified of community status changes and the agency's 
goal is to ensure the public continues to have the most current 
community status information available. Some of the suggestions would 
result in additional costs and would not necessarily result in 
sufficient or immediate access to the information that the final rule 
changes provide. Additionally, the commenter's suggestion to utilize 
social media strategies to educate the public on the new process and of 
suspensions, such as using Twitter and other social media platforms is 
not an appropriate use of FEMA's social media tools. Notices of NFIP 
community status are routine and not suited to social media platforms 
that are more focused on communicating materials regarding the Agency's 
mission, including disaster preparedness, mitigation, and response and 
recovery to stakeholders. FEMA will provide this notice to the public 
by publishing links to www.fema.gov information on community 
suspensions as proposed.
    Finally, another member of the public [FEMA-2019-1660-0007] 
recommended a major revision to the agency's website. The comment noted 
that the current www.fema.gov had far too many topics in the navigation 
bar, which were not in any logical order and were overwhelming to the 
user. The commenter requested a more user-friendly experience when 
using FEMA's website and more search function versatility. FEMA 
appreciates the comment. FEMA recently completed updates to its website 
pursuant to the passage of the 21st Century Integrated Digital 
Experience Act.\6\ The revamped website provides more user 
functionality, including a section of the website dedicated to 
floodplain management.
---------------------------------------------------------------------------

    \6\ 21st Century Integrated Digital Experience Act (21st Century 
IDEA), Public Law 115-336, 132 Stat. 5025 (2018).
---------------------------------------------------------------------------

III. Summary of Changes

    The final rule removes the requirements contained in 44 CFR 
59.24(a), (c), (d), and (e) that community loss of eligibility notices 
be published in the Federal Register and adds a requirement that FEMA 
publish the notices on the internet or by another comparable method. 
FEMA will store these notices on its website for a minimum of one year 
after the notices are issued, so that they are easily available to all 
interested parties. These notices will be available in the CSB area of 
the website and the CSB will also be updated regularly to reflect 
current community status information. The standard URL link for the CSB 
is https://www.fema.gov/national-flood-insurance-program-community-status. After removal from FEMA's public-facing website, the agency 
will retain copies of the notices in accordance with all statutory and 
regulatory requirements. Note that changes to the community's status 
will be reflected in the updated CSB so that individuals can always 
find the current status of their community.
    Second, 44 CFR 64.6 is revised to remove the requirement that FEMA 
maintain a list of communities eligible for flood insurance under the 
NFIA in the CFR. Instead, the final rule requires publication and 
maintenance of the list on the internet or through another comparable 
method. As explained in the NPRM, FEMA will continue to maintain an 
online CSB, providing a list of communities that are, and are not, 
eligible for flood insurance under the NFIP. These changes do not 
impact the other notification requirements found at 44 CFR 59.24. To 
aid in the transition to the new form of publication, FEMA will publish 
brief notices monthly in the Federal Register for six months, after the 
effective date of this rule, alerting stakeholders to the change, and 
letting them know where to go to access community status information. 
The agency will also complete various outreach activities, including 
notifications to impacted communities as part of the 90-day and 30-day 
letters they receive during the suspension process, updated process 
information to state and local partners, and webinars and other 
materials for flood insurance agents and the public.

[[Page 68785]]

IV. Regulatory Analysis

A. 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, OMB has not reviewed it. As this 
rule is not a 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).
1. Need for Regulatory Action
    Under the NFIA, FEMA may only grant flood insurance to properties 
within communities that have adopted adequate land use and control 
measures.\7\ Pursuant to this statutory direction, FEMA has adopted 
regulations governing community eligibility for participation in the 
NFIP at 44 CFR parts 59, 60, and 64. These regulations include 
requirements that a community follow certain steps to retain 
eligibility for the NFIP. If a community fails to follow these 
requirements or decides to withdraw from the NFIP, FEMA initiates loss 
of eligibility procedures as described in 44 CFR 59.24 and publishes a 
notice of the upcoming loss of eligibility in the Federal Register. In 
addition, 44 CFR 64.6 states that flood insurance under the NFIP is 
authorized for communities set forth under Section 64.6 of the 
regulations, requiring FEMA to maintain a list of eligible communities 
in the CFR.
---------------------------------------------------------------------------

    \7\ See 42 U.S.C. 4022(a)(1).
---------------------------------------------------------------------------

    FEMA is making two changes to the current regulations.
    First, FEMA will remove the requirement pursuant to Sec.  59.24(a), 
(c), (d), and (e) to publish community loss of eligibility notices in 
the Federal Register. In lieu of publication in the Federal Register, 
the rule requires that these notices be published on the internet or by 
another comparable method. To aid in the transition, FEMA will publish 
brief notices in the Federal Register for 6 months after the effective 
date of the final rule, alerting stakeholders to the change.
    Second, FEMA is removing the requirement pursuant to Sec.  64.6 
that FEMA maintain a list of eligible communities in the CFR. In lieu 
of this requirement, the final rule will require FEMA to publish and 
maintain a list of eligible communities on the internet or through 
another comparable method.
    These two changes will result in reduced FEMA expenditures, largely 
by reducing costs associated with Federal Register publication. The 
changes to Sec.  59.24 will also provide faster and more user-friendly 
access to community loss of eligibility information by requiring 
publication of the notices online instead of in the Federal Register. 
In addition, these changes direct FEMA to consolidate community status 
information into one location, allowing stakeholders to have more 
streamlined access to community status-related information.
2. Baseline
Requirement To Publish Community Loss of Eligibility Notices in the 
Federal Register
    Community loss of eligibility notices were published a total of 246 
times in the Federal Register from 2010 to 2019. Based on data from 
these notices, FEMA calculates that on average, from 2007 to 2016, the 
notices were published about 25 times per year, rounded to the nearest 
whole number (246 / 10 = 24.6. 24.6 rounded to the nearest whole number 
= 25).
Requirement To Publish the List of Eligible Communities in the CFR
    With respect to the requirement for FEMA to maintain a list of 
eligible communities in the CFR, FEMA notes that it currently maintains 
this list online in the Community Status Book rather than in the 
CFR.\8\ In addition, FEMA prepares quarterly reports in an attempt to 
comply with the publication requirement contained in Sec.  64.6. The 
quarterly preparation burden is approximately 15 hours per quarter at a 
cost of $80 per hour, for a total of $4,800 each year (15 hours per 
quarter x $80 per hour x 4 quarters a year).\9\ FEMA has not published 
the quarterly reports in the CFR since 2006 due to the recurring costs 
involved, and the ability to maintain a more up-to-date list, since the 
CFR is only updated annually.
---------------------------------------------------------------------------

    \8\ The Community Status Book is available for public viewing at 
https://www.fema.gov/national-flood-insurance-program-community-status-book.
    \9\ Hourly rates derived from FEMA estimates based on prior 
contracting benchmarks for this service.
---------------------------------------------------------------------------

3. Costs
Community Loss of Eligibility Notices: Internet Publication Costs
    As a substitute for publishing the required community loss of 
eligibility notices in the Federal Register, this final rule requires 
FEMA to publish community loss of eligibility notices online. FEMA 
currently maintains a public website (www.fema.gov) where similar 
notices, bulletins, and updates from across the agency are published 
for public consumption. While there is no direct cost to adding 
individual web pages or sections to the site, publishing community loss 
of eligibility notices online creates labor costs for staff that need 
to develop a template to format and process the notices for web 
publication.
    FEMA recently completed a website re-design that included more 
versatile search functionality for the user, a more standardized look 
and feel, increased search engine optimization, and better capture of 
meta-data. FEMA anticipated the use of this re-design in the analysis 
of this final rule. Development of this publication process for online 
notices will be labor intensive at the beginning. Once a template is 
created, each update will be less labor intensive than the current 
practice.
    FEMA staff expect it will take approximately 3 days of labor (24 
hours) of a General Schedule (GS) Federal employee in the National 
Capital Region, at the GS-14 Step 5 level ($63.64 hourly wage),\10\ to 
establish the publication process under the redesign. After the 
publication process is established, FEMA anticipates that it

[[Page 68786]]

will take a GS-14 employee approximately thirty minutes per future 
publication.
---------------------------------------------------------------------------

    \10\ Office of Personnel Management, 2019, Washington-Baltimore-
Arlington-DC-MD-VA-WV-PA, Hourly Rate, GS-14, Step 5. Available at 
https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2019/DCB_h.pdf.
---------------------------------------------------------------------------

    The average 25 notices per year result in a burden to FEMA of 
$3,392 the first year (($63.64 for GS 14 Step 5 wage x 1.46) \11\ x (24 
hours of work + (0.5 hour of work x 25 notices per year))) and $1,162 
each subsequent year (($63.64 for GS 14 Step 5 wage x 1.46) x (0.5 hour 
of work x 25 notices per year)) for a 10-year total of $13,850.
---------------------------------------------------------------------------

    \11\ Bureau of Labor Statistics, Employer Costs for Employee 
Compensation, Table 1. ``Employer costs per hour worked for employee 
compensation and costs as a percent of total compensation: Civilian 
workers, by major occupational and industry group, March 2019.'' 
Available at http://www.bls.gov/news.release/archives/ecec_06182019.pdf. Accessed June 24, 2020. The wage multiplier is 
calculated by dividing total compensation for all workers of $36.77 
by wages and salaries for all workers of $25.22 per hour yielding a 
benefits multiplier of approximately 1.46.

                                       Table 1--Internet Publication Costs
----------------------------------------------------------------------------------------------------------------
                                            Initial internet   Recurrent internet
                   Year                    publication burden      publication      Internet  publication  cost
                                                 (hours)         burden  (hours)
                                                          (a)   (b) = (0.25 x 25)      (c) = (a x b) x ($63.64 x
                                                                                                           1.46)
----------------------------------------------------------------------------------------------------------------
1........................................                  24                12.5                         $3,392
2........................................  ..................                12.5                          1,162
3........................................  ..................                12.5                          1,162
4........................................  ..................                12.5                          1,162
5........................................  ..................                12.5                          1,162
6........................................  ..................                12.5                          1,162
7........................................  ..................                12.5                          1,162
8........................................  ..................                12.5                          1,162
9........................................  ..................                12.5                          1,162
10.......................................  ..................                12.5                          1,162
                                          ----------------------------------------------------------------------
    Total................................                  24                12.5                         13,850
----------------------------------------------------------------------------------------------------------------

Community Loss of Eligibility Notices: Transition/Phase-Out Costs
    Upon publication of this final rule, FEMA will aid in the 
transition from the publication of community loss of eligibility 
notices in the Federal Register to their posting on FEMA's website by 
publication of transitional announcements in the Federal Register. 
These announcements will alert stakeholders of the new location of 
these notices and they would be concise and tailored to notify 
stakeholders of the FEMA web address where the community loss of 
eligibility notices can be found. FEMA expects these transitional 
announcements to publish once a month for a 6-month phase-out period 
following the effective date of the rule.
Community Status Report: Cost Savings
    FEMA is removing the requirement pursuant to Sec.  64.6 that FEMA 
maintain an updated list of eligible communities in the CFR. FEMA does 
not currently publish updates to the list of communities eligible for 
flood insurance in the CFR and already maintains an online Community 
Status Book containing this information.\12\ FEMA prepares quarterly 
reports on the current lists of communities in order to comply with the 
regulation. These reports are available upon stakeholder request, 
although they are not published. Modifying the regulations to eliminate 
the requirement to publish the list in the CFR in favor of publishing 
the notices in the same location as the community status list that is 
already maintained on FEMA's website (the Community Status Book) 
eliminates the preparation of these lists and saves the quarterly 
preparation burden of approximately 15 hours per quarter at $80 per 
hour,\13\ yielding a cost savings of $4,800 ($80 per hour x 15 hours 
per quarter x 4 quarters a year) annually. This revision will save FEMA 
costs without affecting policyholders or other stakeholders.
---------------------------------------------------------------------------

    \12\ The Community Status Book is available for public viewing 
at https://www.fema.gov/national-flood-insurance-program-community-status-book.
    \13\ Hourly rates derived from FEMA estimates based on prior 
contracting benchmarks for this service.

                                            Table 2--Net Cost Savings
----------------------------------------------------------------------------------------------------------------
                                     Internet        Community
              Year                  publication    status report     Net cost        NPV at 3%       NPV at 7%
                                       cost        cost savings       savings
----------------------------------------------------------------------------------------------------------------
1...............................          $3,392         -$4,800         -$1,408         -$1,367         -$1,315
2...............................           1,162          -4,800          -3,638          -3,429          -3,178
3...............................           1,162          -4,800          -3,638          -3,329          -2,970
4...............................           1,162          -4,800          -3,638          -3,232          -2,775
5...............................           1,162          -4,800          -3,638          -3,138          -2,594
6...............................           1,162          -4,800          -3,638          -3,047          -2,424
7...............................           1,162          -4,800          -3,638          -2,958          -2,266
8...............................           1,162          -4,800          -3,638          -2,872          -2,117
9...............................           1,162          -4,800          -3,638          -2,788          -1,979
10..............................           1,162          -4,800          -3,638          -2,707          -1,849
                                 -------------------------------------------------------------------------------
    Total.......................          13,850         -48,000         -34,150         -28,868         -23,468
                                 -------------------------------------------------------------------------------
    Annualized..................  ..............  ..............  ..............          -3,384          -3,341
----------------------------------------------------------------------------------------------------------------


[[Page 68787]]

    The net cost savings expected from this rulemaking are presented in 
Table 2. The up-front transition costs are only expected to take place 
in Year 1, thus the cost savings expected over the subsequent years are 
not impacted. For the 10-year period analyzed, the estimated quantified 
discounted total cost savings at 7 and 3 percent are $23,468 
(annualized at $3,341) and $28,868 (annualized at $3,384), 
respectively.
4. Benefits
    Revising 59.24 to eliminate the Federal Register publication 
requirements allows FEMA to be more agile and timely in updating 
community status information. In contrast, continued updates through 
the Federal Register would be slower, more expensive to FEMA, and 
present the information in a format that is less accessible to 
stakeholders.
    In addition, making this change to 59.24, and updating FEMA's 
regulations in Sec.  64.6, will locate all information related to 
community status and eligibility for flood insurance in one place that 
is well-known by stakeholders. This consolidation would improve the 
ease and efficiency of locating community status and eligibility 
information for stakeholders and for FEMA.
5. Transfers
    Transfer payments are monetary payments from one group to another 
that do not affect total resources available to society. There are no 
anticipated transfer payments resulting from this final rule.
6. Alternatives Considered
    FEMA considered continuing with their current method to publish the 
community loss of eligibility notices in the Federal Register. This 
would have taken more time to publish changes and updates. However, 
stakeholders would know where to access the information since the 
location of information would not change.
    FEMA also considered the suggestion of one of the commenters about 
broadcasting the community status information through TV commercials, 
social media, or billboards in the impacted community to raise 
awareness. Some of these suggestions would result in additional costs 
and would not necessarily result in sufficient or immediate access to 
the information that the final rule changes provide. Additionally, 
notices of NFIP community status are routine and not suited to social 
media platforms that are more focused on communicating materials 
regarding the Agency's mission, including disaster preparedness, 
mitigation, and response and recovery to stakeholders.
7. Summary
    Table 3 provides the A-4 accounting summary.

                                        Table 3--A-4 Accounting Statement
                                                     [2019$]
----------------------------------------------------------------------------------------------------------------
                                                                                                Source citation
                      Category                        7 Percent discount  3 Percent discount    (RIA, preamble,
                                                             rate                rate                etc.)
----------------------------------------------------------------------------------------------------------------
                                                    Benefits
----------------------------------------------------------------------------------------------------------------
Annualized Monetized................................                  $0                  $0  ..................
Annualized Quantified...............................                 N/A                 N/A  ..................
                                                     -----------------------------------------------------------
Qualitative.........................................   Allows FEMA to be more agile                  RIA
                                                      and timely in updating community
                                                      status information
                                                       Improve the ease and
                                                      efficiency of locating community
                                                      status and eligibility information
----------------------------------------------------------------------------------------------------------------
                                                      Costs
----------------------------------------------------------------------------------------------------------------
Annualized Monetized................................             -$3,341             -$3,384                 RIA
Annualized quantified...............................                 N/A                 N/A  ..................
                                                     -----------------------------------------------------------
Qualitative.........................................                    N/A                   ..................
----------------------------------------------------------------------------------------------------------------
                                                    Transfers
----------------------------------------------------------------------------------------------------------------
Annualized Monetized $millions/year.................                 N/A                 N/A  ..................
----------------------------------------------------------------------------------------------------------------
From/To.............................................  N/A                                     ..................
----------------------------------------------------------------------------------------------------------------
                                                     Effects
----------------------------------------------------------------------------------------------------------------
State, Local, and/or Tribal Government..............  None                                    ..................
Small business......................................  None                                    ..................
Wages...............................................  None                                    ..................
Growth..............................................  None                                    ..................
----------------------------------------------------------------------------------------------------------------

A. Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as 
amended, requires Federal agencies to consider the potential impact of 
regulations on small entities. The term ``small entities'' comprises 
small businesses, not-for-profit organizations that are independently 
owned and operated and are not dominant in their fields, and 
governmental jurisdictions with populations of less than 50,000. This 
rule does not directly impact any small entities. This rule only 
changes how FEMA shares loss of community

[[Page 68788]]

eligibility notices and community status information.
    FEMA used the U.S. Census Bureau's 2017 Census of Government \14\ 
to estimate the number of small government jurisdictions in the United 
States. According to the U.S. Census, there are 38,779 jurisdictions 
consisting of counties, municipalities, and townships within the United 
States. Among these, 35,748 would qualify as small government 
jurisdictions, which would equate to 92.2 percent of all U.S. 
governmental jurisdictions. Applying this percentage to the 22,490 
communities currently participating in the National Flood Insurance 
Program (NFIP) \15\ results in an estimated 20,736 small governmental 
jurisdictions. Individual policyholders are not considered small 
entities.
---------------------------------------------------------------------------

    \14\ See U.S. Census Bureau, ``2017 Census of Governments, Local 
Governments by Type and State 2017,'' Table 2, April 25, 2019, 
available at: https://www2.census.gov/programs-surveys/gus/tables/2017/cog2017_cg1700org02.zip?#. Accessed June 25, 2020.
    \15\ The number of NFIP communities is derived from ``The 
National Flood Insurance Program Community Status Book,'' Page 478, 
located at https://www.fema.gov/flood-insurance/work-with-nfip/community-status-book.
---------------------------------------------------------------------------

    FEMA believes this rule would not impose any direct costs on small 
entities and would allow easier access to information about flood 
insurance eligibility. Accordingly, FEMA certifies that this rule will 
not have a significant economic impact on a substantial number of small 
entities. FEMA requested comments as to the impact that the NPRM would 
have on small governmental jurisdictions; no comments were received.
1. 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.
2. Paperwork Reduction Act of 1995
    Under the Paperwork Reduction Act of 1995 (PRA), as amended, 44 
U.S.C. 3501-3520, an agency may not conduct or sponsor, and a person is 
not required to respond to, a collection of information unless the 
agency obtains approval from the Office of Management and Budget (OMB) 
for the collection and the collection displays a valid OMB control 
number. See 44 U.S.C. 3506, 3507. FEMA collects community information 
for the purposes of application to the NFIP under OMB Control Number 
1660-0004, Application for Participation in the National Flood 
Insurance Program (NFIP).\16\ However, FEMA has determined that this 
rulemaking does not impact this information collection or any other 
collection of information under the PRA.
---------------------------------------------------------------------------

    \16\ See 44 CFR 59.22 for a description of the information 
collected.
---------------------------------------------------------------------------

3. 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. See id. section 552a(a)(5). 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.
    In accordance with DHS policy, FEMA has completed a Privacy 
Threshold Analysis (PTA) for this rule. DHS determined that this 
rulemaking is not privacy sensitive, as it does not affect the 
information collected about an individual. FEMA's original collection 
and maintenance of NFIP related personally identifiable information has 
coverage under the DHS/FEMA-003-National Flood Insurance Program Files, 
79 FR 28747 (May 19, 2014) System of Records Notice and the DHS/FEMA/
PIA--011 National Flood Insurance Program Information Technology System 
Privacy Impact Assessment. Therefore, this rulemaking does not require 
coverage under an existing or new Privacy Impact Assessment or System 
of Records Notice.
4. Executive Order 13175, ``Consultation and Coordination With Indian 
Tribal Governments''
    Executive Order 13175, ``Consultation and Coordination with Indian 
Tribal Governments,'' 65 FR 67249, (Nov. 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.
    Nor, to the extent practicable by law, may an agency promulgate a 
regulation that has Tribal implications and preempts Tribal law, unless 
the agency consults with Tribal officials. Although Tribes that meet 
the NFIP eligibility criteria can participate in the NFIP in

[[Page 68789]]

the same manner as communities,\17\ FEMA has reviewed this final rule 
under Executive Order 13175 and has determined that the rule does not 
have a substantial direct effect on one or more Indian Tribes, or on 
the distribution of power and responsibilities between the Federal 
Government and Indian Tribes. This final rule modernizes notice 
requirements for community loss of eligibility information and 
community status information: therefore, the changes in this rule do 
not substantially or disproportionately affect Indian Tribal 
governments acting as communities under the NFIP.
---------------------------------------------------------------------------

    \17\ Although the NFIP does not explicitly reference Tribal 
Governments, FEMA includes Tribal nations in its definition of a 
community. See 44 CFR 59.1.
---------------------------------------------------------------------------

5. Executive Order 13132, ``Federalism''
    Executive Order 13132, ``Federalism,'' 64 FR 43255 (Aug. 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.'' For the 
purposes of this Executive Order, the term States also includes local 
governments or other subdivisions established by the States. Under this 
Executive Order, Federal agencies must closely examine the statutory 
authority supporting any action that would limit the policymaking 
discretion of the States. Further, to the extent practicable and 
permitted by law, no agency shall promulgate any regulation that has 
federalism implications, that imposes substantial direct compliance 
costs on State and local governments, and that is not required by 
statute, unless the Federal Government provides funds necessary to pay 
the direct costs incurred by the State and local governments in 
complying with the regulation, or the agency consults with State and 
local officials. Nor, to the extent practicable by law, may an agency 
promulgate a regulation that has federalism implications and preempts 
State law, unless the agency consults with State and local officials.
    FEMA has reviewed this rule under Executive Order 13132 and has 
determined that it does not 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, and therefore does not have federalism 
implications as defined by the Executive Order. This rule modernizes 
notice requirements for community status information under the NFIP; 
therefore, this rule does not impact the substantive rights, roles, or 
responsibilities of States, and does not limit State policymaking 
discretion.
6. National Environmental Policy Act of 1969 (NEPA)
    Section 102 of the National Environmental Policy Act of 1969 
(NEPA), 83 Stat. 852 (Jan. 1, 1970) (42 U.S.C. 4321 et seq.) requires 
agencies to consider the impacts of their proposed actions on the 
quality of the human environment. The Council on Environmental 
Quality's procedures for implementing NEPA, 40 CFR 1500 et seq., 
require Federal agencies to prepare Environmental Impact Statements 
(EIS) for major Federal actions significantly affecting the quality of 
the human environment. Each agency can develop categorical exclusions 
to cover actions that have been demonstrated to not typically trigger 
significant impacts to the human environment individually or 
cumulatively. Agencies develop environmental assessments (EA) to 
evaluate those actions that do not fit an agency's categorical 
exclusion and for which the need for an EIS is not readily apparent. At 
the end of the EA process, the agency will determine whether to make a 
Finding of No Significant Impact (FONSI) or whether to initiate the EIS 
process.
    Rulemaking is a major Federal action subject to NEPA. Categorical 
exclusions A3 included in the list of exclusion categories at 
Department of Homeland Security 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 final rule meets Categorical Exclusion A3(d), ``Those that 
interpret or amend an existing regulation without changing its 
environmental effect.''
7. 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 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

44 CFR Parts 59

    Flood insurance, Reporting and recordkeeping requirements.

44 CFR Part 64

    Flood insurance, Floodplains, Reporting and recordkeeping 
requirements.

    For the reasons stated in the preamble, FEMA amends 44 CFR parts 59 
and 64 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.


0
2. Amend Sec.  59.24 by:
0
a. Revising the fourth sentence of paragraph (a);
0
b. Revising the fourth sentence of paragraph (c);
0
c. Revising the second sentence of paragraph (d);
0
d. Revising the second sentence of paragraph (e).
    The revisions read as follows:


Sec.  59.24  Suspension of community eligibility.

    (a) * * * If, subsequently, copies of adequate flood plain 
management regulations are not received by the Administrator, no later 
than 30 days before the expiration of the original six month period the 
Federal Insurance

[[Page 68790]]

Administrator shall provide written notice to the community and to the 
state and assure publication of the community's loss of eligibility for 
the sale of flood insurance on the internet or by another comparable 
method, such suspension to become effective upon the expiration of the 
six month period. * * *
* * * * *
    (c) * * * If a community is to be suspended, the Federal Insurance 
Administrator shall inform it upon 30 days prior written notice and 
upon publication of its loss of eligibility for the sale of flood 
insurance on the internet or by another comparable method. * * *
    (d) * * * If a community is to be suspended, the Federal Insurance 
Administrator shall inform it upon 30 days prior written notice and 
upon publication of its loss of eligibly for the sale of flood 
insurance on the internet or by another comparable method. * * *
    (e) * * * Upon receipt of a certified copy of a final legislative 
action, the Federal Insurance Administrator shall withdraw the 
community from the Program and publish its loss of eligibility for the 
sale of flood insurance on the internet or by another comparable 
method. * * *
* * * * *

PART 64--COMMUNITIES ELIGIBLE FOR THE SALE OF INSURANCE

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, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 44 FR 19367, 3 CFR, 
1979 Comp., p. 376.


0
4. Revise Sec.  61.6 to read as follows:


Sec.  64.6  List of eligible communities.

    FEMA will maintain a list of communities eligible for the sale of 
flood insurance pursuant to the National Flood Insurance Program (42 
U.S.C. 4001-4128). This list will be published and maintained on the 
internet or through another comparable method.

Pete Gaynor,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2020-23970 Filed 10-29-20; 8:45 am]
BILLING CODE 9111-52-P