[Federal Register Volume 89, Number 158 (Thursday, August 15, 2024)]
[Rules and Regulations]
[Pages 66241-66254]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-17909]



[[Page 66241]]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Part 206

[Docket ID FEMA-2024-0024]
RIN 1660-AB15


Hazard Mitigation Grant Program Application Period Extension

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 extend the Hazard Mitigation Grant Program's application 
period. This revision will allow FEMA to approve additional projects 
and offer applicants additional time for project approvals meant to 
address the effects of climate change and other unmet community 
mitigation needs.

DATES: This rule is effective August 15, 2024.

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: Howard Stronach, Mitigation 
Directorate, Hazard Mitigation Assistance Division, FEMA, 400 C St. SW, 
Washington, DC 20472, (202) 646-3683, [email protected].

SUPPLEMENTARY INFORMATION:

1. Legal and Factual Background

FEMA's Hazard Mitigation Grant Program

    FEMA is responsible for administering and coordinating the Federal 
Government's response to disasters pursuant to the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (``Stafford Act'').\1\ 
There are two types of disaster declarations provided for in the 
Stafford Act: emergency declarations \2\ and major disaster 
declarations.\3\ Following a major disaster declaration, FEMA may 
provide several different types of discretionary assistance to 
applicants such as funding under its Hazard Mitigation Grant Program 
(HMGP) which is authorized under Section 404 of the Stafford Act. 42 
U.S.C. 5170c; 44 CFR 206.40.
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    \1\ Robert T. Stafford Disaster Relief and Emergency Assistance 
Act, Public Law 93-288 (1974) (codified as amended at 42 U.S.C. 5121 
et. seq.) (``Stafford Act'').
    \2\ Stafford Act, supra note 1, section 501 (codified as amended 
at 42 U.S.C. 5191(a)); see also Stafford Act, supra note 1, section 
102 (codified as amended at 42 U.S.C. 5122) which defines 
``emergency'' as ``any occasion or instance for which, in the 
determination of the President, Federal assistance is needed to 
supplement State and local efforts and capabilities to save lives 
and to protect property and public health and safety, or to lessen 
or avert the threat of a catastrophe in any part of the United 
States.''
    \3\ 42 U.S.C. 5170; 5122 (defining ``major disaster'' as ``any 
natural catastrophe (including any hurricane, tornado, storm, high 
water, wind-driven water, tidal wave, tsunami, earthquake, volcanic 
eruption, landslide, mudslide, snowstorm, or drought), or, 
regardless of cause, any fire, flood, or explosion, in any part of 
the United States, which in the determination of the President 
causes damage of sufficient severity and magnitude to warrant major 
disaster assistance under this Act to supplement the efforts and 
available resources of States, local governments, and disaster 
relief organizations in alleviating the damage, loss, hardship, or 
suffering caused thereby.'').
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    HMGP ``ensures that State, local, Tribal and territorial 
governments have the financial opportunity to plan for and implement 
mitigation measures that reduce the risk of loss of life and property 
from future natural disasters during the reconstruction process 
following a disaster.'' \4\ HMGP funding is time-limited; ``the award 
period of performance for HMGP begins with the opening of the 
application period and ends no later than 48 months from the close of 
the application period.'' Id.
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    \4\ Federal Emergency Management Agency, Hazard Mitigation 
Assistance Program and Policy Guide (``HMAPPG''), Part 10.A.4, p. 
28, March 20, 2023, available at https://www.fema.gov/sites/default/files/documents/fema_hma-program-policy-guide_032023.pdf (last 
accessed on August 1, 2024).
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    Under HMGP, FEMA ``may contribute up to 75% of the cost of hazard 
mitigation measures which the President has determined are cost-
effective and which substantially reduce the risk of future damage, 
hardship, loss, or suffering in any area affected by a major 
disaster.'' \5\ States (which includes Territories) \6\ and Indian 
Tribal Governments are eligible applicants for HMGP funding, and upon 
award, will become recipients.\7\ State agencies, local governments, 
private nonprofit organizations, and Indian Tribal Governments \8\ are 
eligible subapplicants for HMGP who, and, upon subaward, will become 
subrecipients.\9\
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    \5\ Stafford Act, supra note 1, section 404 (codified as amended 
at 42 U.S.C. 5170c(a)); the statute caps the maximum amount of 
financial assistance that FEMA may provide for hazard mitigation, 
providing that the total of contributions ``shall not exceed 15 
percent for amounts not more than $2,000,000,000, 10 percent for 
amounts of more than $2,000,000,000 and not more than 
$10,000,000,000, and 7.5 percent on amounts of more than 
$10,000,000,000 and not more than $35,000,000,000'' of the estimated 
aggregate amount of grants to be made under the disaster 
declaration.
    \6\ ``State'' means any State of the United States, the District 
of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, 
and the Commonwealth of the Northern Mariana Islands. 42 U.S.C. 
5122(4).
    \7\ 44 CFR 206.431 at definitions of ``Applicant'' and 
``Recipient''
    \8\ Indian Tribal Governments have the option to apply as an 
applicant or a subapplicant. 44 CFR 206.431 at definition of 
``Indian Tribal Government.'' An Indian Tribal Government acting as 
recipient will assume the responsibilities of a State, as described 
in 44 CFR part 206, subpart N, for the purposes of administering the 
grant. 44 CFR 206.431 at definition of ``Recipient.''
    \9\ 44 CFR 206.431 at definition of ``Subrecipient.''
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    The HMGP lists all relevant program definitions at 44 CFR 206.431. 
In HMGP, a ``grant application'' is a request to FEMA for HMGP funding 
by a State or Tribal Government that will act as a recipient. 44 CFR 
206.431. The ``subaward application'' is the request to the recipient 
for HMGP funding by the eligible subrecipient. 44 CFR 206.431; 44 CFR 
206.436(a). The ``grant award'' is the total Federal and non-federal 
contributions to complete the approved scope of work.\10\ The 
``subaward'' means an award provided by a pass-through entity to a 
subrecipient for the subrecipient to carry out as part of the Federal 
award. 44 CFR 206.431; 44 CFR 206.436(a). The ``recipient'' is the 
State or Indian Tribal Government that receives a Federal award 
directly from FEMA.\11\
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    \10\ Id. at definition of ``Grant award.''
    \11\ 44 CFR 206.431 at definition of ``Recipient.''
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Hazard Mitigation Grant Program Application Procedures

    HMGP applicants follow the procedures set forth at Sec.  206.436. 
Upon identification of mitigation measures, the applicant submits an 
HMGP application to the FEMA Regional Administrator. The HMGP 
application includes a comprehensive narrative identifying intended 
mitigation projects, State or local contacts, project locations, 
description and cost estimates, an analysis of the cost-effectiveness 
of the mitigation measures, work schedules, justification for 
selection, relevant project management information and subrecipients. 
See 44 CFR 206.436(c). Applications for HMGP serve to identify the 
specific mitigation measures for which HMGP funding is requested. 
Applicants must submit all local HMGP applications (also known as 
subaward applications or subapplications) and funding requests to the 
FEMA Regional Administrator within 12 months of the date of the 
disaster declaration.\12\ Under Sec.  206.436(e), however, applicants/
recipients may request that the Regional Administrator extend the 
application time limit by additional 30-to-90-day

[[Page 66242]]

increments, not to exceed a total of 180 days.
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    \12\ See 44 CFR 206.436.
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    The amount of HMGP funding available to the applicant is based on 
the estimated total Federal assistance for the major disaster 
declaration, subject to the sliding scale formula that FEMA provides 
for disaster recovery. 44 CFR 206.432(b). FEMA establishes the amount 
of funding available for HMGP for each disaster \13\ (called the HMGP 
``ceiling'') at 12 months after the date of the disaster declaration 
(called the HMGP ``lock-in'').\14\ FEMA provides two point-in-time 
estimates prior to the 12-month lock-in (at 35 days and 6 months) so 
that the applicant has some approximation of funding availability for 
each disaster in order to solicit and select among subapplications for 
mitigation projects. Id. When major fluctuations of projected disaster 
costs occur, FEMA, at the request of the applicant, may conduct an 
additional review after the 12-month lock-in. If the resulting review 
shows that the amount of funds available for HMGP is different than 
previously calculated, the final lock-in amount will be adjusted 
accordingly. Id.
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    \13\ The maximum amount of financial assistance that FEMA may 
provide for HMGP is based on the amount of the grants FEMA projects 
it will provide under the major disaster declaration. Specifically, 
the amount of contributions ``shall not exceed 15 percent for 
amounts not more than $2,000,000,000, 10 percent for amounts of more 
than $2,000,000,000 and not more than $10,000,000,000, and 7.5 
percent on amounts of more than $10,000,000,000 and not more than 
$35,333,000,000'' of the estimated aggregate amount of grants to be 
made under the disaster declaration. 42 U.S.C. 5170c(a).
    \14\ Federal Emergency Management Agency, Hazard Mitigation 
Assistance Program and Policy Guide (``HMAPPG''), Part 10.A.4, pp. 
199-200, March 20, 2023, available at https://www.fema.gov/sites/default/files/documents/fema_hma-program-policy-guide_032023.pdf 
(last accessed on August 1, 2024).
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2. Public Support & Need for Rule Change

    FEMA stakeholders have identified the length of the application 
period and the inability to re-open the application period once it has 
closed as barriers to applying for assistance under HMGP.\15\ 
Specifically, State, local, Tribal, and territorial (SLTT) stakeholders 
have indicated they would benefit from additional time to develop 
quality applications and identified lack of resources, staff, and 
technical expertise necessary to prepare quality applications in a 
timely manner, resource challenges in trying to apply for assistance 
while also managing the response and recovery from a major disaster, 
failing to have a set HMGP ceiling established until the 12-month mark 
when the applications are due, and cumulative disasters as 
circumstances that further exacerbate the challenges to applying for 
assistance. Id.
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    \15\ See, e.g., www.regulations.gov, Docket ID FEMA-2022-0023 at 
FEMA-2022-0023-0014 (comment from Texas Division of Emergency 
Management suggesting that FEMA remove the statutory requirement 
that FEMA will only consider an extension to the application 
deadline if the applicant's inability to meet the deadline must have 
resulted from the event leading to the major disaster declaration. 
TDEM notes ``[t]here are many legitimate extenuating circumstances 
that could lead a state to miss an application deadline that aren't 
directly caused by the declared disaster.''); at FEMA-2022-0023-0032 
(comment from Iowa Homeland Security and Emergency Management noting 
more time might be necessary for projects if a State experiences 
back to back disaster declarations); at FEMA-2022-0023-0034 (comment 
from the City of New Orleans argues that not allowing applicants to 
submit projects after the application period closes creates a strain 
on applicants to have ready to go project ideas in the near-term 
recovery period); at FEMA-2022-0023-0038 (comment from New York 
State Hazard Mitigation arguing that FEMA should be incorporating 
flexibility into the application process, particularly when FEMA 
and/or other disasters are the sole reasons for not being able to 
meet the 12 month deadline, noting that ``[i]n a perfect world, a 12 
month application period seems more than sufficient, but taking into 
account impacts from one disaster occurring while dealing with 
another disaster and adding 2 more disasters within the 12 month 
period plus annual FEMA competitive programs that all impact the 
same groups makes this an impossibility.''); at FEMA-2022-0023-0053) 
(comment from Louisiana Governor's Office of Homeland Security and 
Emergency Preparedness arguing that a State/jurisdiction can face 
significant challenges when back to back events occur, stating it is 
it is ``unrealistic to assume that the impacts from one event are 
not compounded by each subsequent event, affecting overlapping 
regions of the State, and further stressing State and local 
capacity'' and further stating that ``FEMA should provide 
flexibility to extend and in some cases re-open an application 
period when a lock-in recalculation is made, especially when that 
recalculation comes at the end of the application period, and 
especially when the increase is substantial'' because applicants 
need sufficient time to develop and submit quality applications.)
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    Among the feedback received, SLTT entities indicated a need for 
allowing FEMA to extend or reopen the application period after it 
closes when disaster assistance recalculations potentially result in 
increased lock-in ceilings.\16\ Between October 1, 2019, and January 1, 
2023, applicants submitted 75 requests, out of a total of 171 
applications, for extensions beyond the 180 days Regional 
Administrators are permitted to authorize. Based on analysis of 
historical data from FEMA's NEMIS database,\17\ from 2013-2022, 26.0 
percent of applicants submit their applications within 12 months or 
less, 16.0 percent of applicants request extensions and submit their 
applications between 12-15 months, 31.3 percent of applicants request 
extensions and submit their applications between 15-18 months, and 26.7 
percent of applicants are unable to complete their applications within 
the 18 months allowable under the regulations.
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    \16\ See Docket ID FEMA-2022-0025 (containing comments from the 
Ohio Emergency Management Mitigation Branch, ``. . . [w]hat is the 
purpose of re-calculating the ceiling amount after the application 
period has closed if FEMA cannot extend the application period and 
make the funds available to states and communities?''; see also, 
FEMA-2022-0023-0038 (containing comments from the New York State 
Hazard Mitigation that FEMA should incorporate flexibility in its 
lock in ceiling process).
    \17\ The National Emergency Management Information System 
(NEMIS) is a FEMA-wide system that allows FEMA and its partners to 
carry out emergency management missions for the United States, its 
Territories, and its Tribal Agencies.
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    FEMA has statutory authority to waive administrative conditions 
that would prevent applicants from receiving assistance if the 
inability to meet such conditions is the result of the major disaster. 
See 42 U.S.C. 5141. FEMA has used this authority to grant extensions 
beyond 18 months to those applicants who can demonstrate they are 
unable to meet the deadline as a result of the major disaster. From 
2013-2022, for disasters that required extensions beyond the 
regulatorily-provided 18 months, the average amount of additional time 
approved by FEMA is approximately 11.6 months; however, this amount 
includes several major disasters with extraordinary circumstances that 
require significantly more time to address than typical disasters. The 
median amount of additional time, which provides a more realistic 
snapshot, is approximately 6.1 months.
    FEMA establishes the amount of funding available for HMGP for each 
disaster at 12 months after the date of the disaster declaration. 42 
U.S.C. 5170c(a). The 12-month application deadline currently in 
regulation does not provide sufficient time for applicants to submit 
their applications. In light of the public participation referenced 
throughout \18\ and resultant

[[Page 66243]]

data analytics research discussed in Regulatory Analysis ``B. Executive 
Orders 12866, `Regulatory Planning and Review' and 13563, `Improving 
Regulation and Regulatory Review,' '' FEMA now moves to address these 
identified challenges.
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    \18\ See, e.g., www.regulations.gov, Docket ID FEMA-2022-0023 at 
FEMA-2022-0023-0014 (comment from Texas Division of Emergency 
Management suggesting that FEMA remove the statutory requirement 
that FEMA will only consider an extension to the application 
deadline if the applicant's inability to meet the deadline must have 
resulted from the event leading to the major disaster declaration. 
TDEM notes ``[t]here are many legitimate extenuating circumstances 
that could lead a state to miss an application deadline that aren't 
directly caused by the declared disaster.''); at FEMA-2022-0023-0032 
(comment from Iowa Homeland Security and Emergency Management noting 
more time might be necessary for projects if a State experiences 
back to back disaster declarations); at FEMA-2022-0023-0034 (comment 
from the City of New Orleans argues that not allowing applicants to 
submit projects after the application period closes creates a strain 
on applicants to have ready to go project ideas in the near-term 
recovery period); at FEMA-2022-0023-0038 (comment from New York 
State Hazard Mitigation arguing that FEMA should be incorporating 
flexibility into the application process, particularly when FEMA 
and/or other disasters are the sole reasons for not being able to 
meet the 12 month deadline, noting that ``[i]n a perfect world, a 12 
month application period seems more than sufficient, but taking into 
account impacts from one disaster occurring while dealing with 
another disaster and adding 2 more disasters within the 12 month 
period plus annual FEMA competitive programs that all impact the 
same groups makes this an impossibility.''); at FEMA-2022-0023-0053) 
(comment from Louisiana Governor's Office of Homeland Security and 
Emergency Preparedness arguing that a State/jurisdiction can face 
significant challenges when back to back events occur, stating it is 
it is ``unrealistic to assume that the impacts from one event are 
not compounded by each subsequent event, affecting overlapping 
regions of the State, and further stressing State and local 
capacity'' and further stating that ``FEMA should provide 
flexibility to extend and in some cases re-open an application 
period when a lock-in recalculation is made, especially when that 
recalculation comes at the end of the application period, and 
especially when the increase is substantial'' because applicants 
need sufficient time to develop and submit quality applications.)
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3. Discussion of Rule Change

    FEMA is amending Sec.  206.436 to extend the HMGP's application 
period and reopen the registration period under limited circumstances. 
FEMA is revising Sec.  206.436(d), ``Application submission time 
limit,'' to extend the initial deadline for applicants to submit local 
HMGP applications and funding requests from 12 months to 15 months from 
the date of disaster declaration. FEMA's historical data shows that 42 
percent of applicants are able to submit applications within 15 months 
(26.0 percent who are able to meet the current 12-month deadline + 16 
percent who are able to request an extension and submit by the 15-month 
extended deadline). FEMA's historical data also shows that setting the 
initial deadline at 18 months will increase this number by 31.3 
percent. FEMA is extending the initial deadline to 15 months instead of 
18 months (or longer) to ensure that it is setting an achievable 
deadline while still maintaining its commitment to timely and effective 
grants management. The additional 3 months also provides applicants 
time to receive the 12-month lock in amount and make educated 
adjustments to the amount of funding they are applying for. This would 
lessen the administrative burden placed on HMGP recipients and FEMA as 
it would require fewer application extension requests and responses.
    FEMA is making several revisions to Sec.  206.436(e), 
``Extensions.'' Currently, Sec.  206.436(e) provides that an applicant 
may, with justification, request that the Regional Administrator extend 
the application time limit by 30 to 90 day increments, not to exceed a 
total of 180 days. FEMA is revising Sec.  206.436(e) by adding 
introductory text to state that upon receiving a written request from 
the applicant, FEMA may extend the application submission timeline as 
described in new paragraphs (e)(1) and (2). New paragraph (e)(1) 
retains the language currently in paragraph (e), except that FEMA is 
increasing 90 days to 120 days and increasing 180 days to 240 days. 
FEMA is also changing the word ``recipient'' to ``applicant'' in the 
last sentence for accuracy, as ``applicant'' is an entity applying to 
FEMA for funding; it is only upon award that the applicant becomes the 
recipient.
    New paragraph (e)(2) provides that FEMA will only consider requests 
for extensions beyond 240 days for extenuating circumstances outside of 
the applicant's control. Such requests must be submitted to the 
Regional Administrator and must include justification. FEMA is adding 
new paragraph (e)(2) because it understands that extenuating 
circumstances outside of the applicant's control might prevent the 
applicant from submitting its application within the 240-day timeframe. 
FEMA is therefore allowing requests for extensions as a matter of 
fairness but is requiring such extensions to be coordinated between the 
FEMA region and FEMA Headquarters and requiring justification to ensure 
that no application period is extended indefinitely. As described in 
FEMA's Hazard Mitigation Assistance Program and Policy Guide, a 
recipient's extension request must (1) describe the extenuating 
circumstances that prevent the recipient from meeting that application 
period deadline, (2) document how the recipient implemented HMGP 
consistent with its Administrative Plan, (3) provide an implementation 
strategy and goals to use any remaining assistance (including an 
assessment of the additional time requested and an updated 
Administrative Plan), and (4) identify any technical assistance that 
can assist in addressing resource gaps and/or is needed to successfully 
implement the program.\19\
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    \19\ HMAPPG, Part 10.A.10, p. 208-209, Mar. 20, 2023, available 
at https://www.fema.gov/sites/default/files/documents/fema_hma-program-policy-guide_032023.pdf (last accessed on August 1, 2024).
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    As noted throughout, FEMA stakeholders have identified the length 
of the application period and the inability to reopen the application 
period once it has closed as barriers to applying for assistance under 
HMGP. They have indicated that additional time to develop applications 
would allow them to not only submit more applications, but better, more 
complete applications as well.\20\ In response, FEMA is adding a new 
paragraph (f) to allow FEMA to reopen application periods on a limited 
basis. This paragraph, entitled ``Reopening of application period,'' 
provides that FEMA's Assistant Administrator for the Mitigation 
Directorate may reopen a closed application period for up to 180 days 
under two circumstances. (FEMA is limiting its ability to reopen a 
closed application period to 180 days to ensure this remains a limited 
authority). The first circumstance, addressed in paragraph (f)(1), 
``Recalculation of assistance,'' will allow FEMA to reopen a closed 
application period if FEMA approves a recalculation of assistance under 
Sec.  206.432 and an applicant requests to reopen the application 
period within 60 days of FEMA's recalculation approval.
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    \20\ See Docket ID: FEMA-2022-0023-0034 (comment from the City 
of New Orleans argues that not allowing applicants to submit 
projects after the application period closes creates a strain on 
applicants to have ready to go project ideas in the near-term 
recovery period).
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    As stated above, the amount of available HMGP funding is based on a 
percentage of the estimated total Federal assistance for each disaster 
declaration. 42 U.S.C. 5170c; 44 CFR 206.432(b). FEMA establishes the 
HMGP lock-in 12 months after the disaster declaration. Id. In 
circumstances when a major disaster results in significant fluctuations 
of projected or actual costs, FEMA, at the recipient's request, may 
change the ``lock-in'' amount if the projections or actuals used to 
determine it were inaccurate enough that the change would be material. 
Id. However, FEMA currently cannot reopen the application period after 
it has closed even if there has been an increase to the ceiling amount 
of assistance. Id. This causes issues for applicants because ``lock-
in'' recalculations can greatly increase the amount of additional HMGP 
funding but often occur close to the end of, or even outside of, the 
application period, leaving applicants without additional time to apply 
for that extra funding.
    FEMA is adding new paragraph (f)(1) to allow FEMA to reopen a 
closed application period to address this issue.

[[Page 66244]]

FEMA is requiring applicants to submit such requests within 60 days of 
FEMA's recalculation to ensure that submissions are timely and to 
prevent an applicant from requesting a reopening after an extended 
period of time has passed. The second circumstance, addressed in 
paragraph (f)(2), ``Appeal,'' will allow FEMA to reopen a closed 
application period if FEMA grants an appeal under Sec.  206.440 for an 
application extension denial after an application period is closed. 
Currently, if FEMA grants an appeal for an application extension 
denial, FEMA lacks the authority to reopen the application period for 
that applicant. This results in an inequitable scenario where the 
applicant wins its appeal but is deprived of a ``remedy,'' which 
effectively renders the appeal meaningless. Allowing FEMA to reopen the 
application period for an applicant whose appeal it has granted would 
enable FEMA to provide all applicants a more effective and equitable 
appeals process.
    FEMA will redesignate current paragraph (f), ``FEMA approval,'' as 
paragraph (g). In new paragraph (g), FEMA will make nonsubstantive 
revisions such as changing the word ``State'' to ``applicant'' for 
greater accuracy, as well as minor grammatical edits to incorporate the 
active voice. Lastly, FEMA will redesignate current paragraph (g), 
``Indian Tribal recipients,'' as paragraph (h).

4. 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 matters relating to public property, 
loans, grants, benefits, or contracts. 5 U.S.C. 553(a)(2).
    FEMA's HMGP program is a grant program through which FEMA obligates 
funding to State, local, Tribal, and territorial governments, as well 
as eligible private nonprofit organizations, for post-disaster hazard 
mitigation measures that reduce the risk of, or increase resilience to, 
future damage, hardship, loss or suffering in any area affected by a 
major disaster, or any area affected by a fire for which assistance was 
provided under section 420 of the Stafford Act. Because this rule 
relates to FEMA's obligation of grant funding under the HMGP program, 
it is exempt from notice and comment rulemaking under the APA. In 
addition to the grants exemption previously noted, this rulemaking 
serves to increase flexibility in the administration of this mitigation 
grant program.
    While FEMA asserts this rule is exempt from notice and comment 
procedures, the agency acknowledges its general policy to provide for 
public participation in rulemaking.\21\ FEMA has retained its 
discretion to depart from this policy as circumstances warrant. 44 CFR 
1.3(c). Extending the HMGP application period warrants such a departure 
from notice and comment rulemaking, because the effort is a result of 
public comment. FEMA has already received comments from numerous 
stakeholders in response to a publication of the Hazard Mitigation 
Assistance (HMA) Program and Policy Guide for public comment \22\ 
expressing concern regarding the challenges they encounter in meeting 
the current HMGP deadlines \23\ and supporting the regulatory changes 
in this rulemaking. This rule does not impose any additional 
requirements on applicants; rather, in response to public comment 
requesting additional flexibilities in the HMGP,\24\ it increases 
flexibility for applicants by allowing more opportunities for them to 
develop and improve their grant applications to address the effects of 
climate change and other unmet mitigation needs.
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    \21\ 44 CFR 1.3(a). Until recently, FEMA waived the exemption 
afforded to grant programs under the APA and treated its programs as 
if they were subject to traditional notice and comment requirements. 
On March 3, 2022, FEMA published a final rule clarifying its 
position regarding notice and comment rulemaking for its grant 
programs. See 87 FR 11971, Mar. 3, 2022. FEMA determined that 
removal of the waiver of the exemption streamlined the regulations 
and ensured that the agency retained the flexibility to utilize a 
range of public engagement options in advance of rulemaking where 
appropriate. FEMA noted that it would retain its general policy in 
favor of public participation in rulemaking but would retain 
discretion to depart from this policy as circumstances warrant.
    \22\ 87 FR 52016; HMAPPG, available at https://www.fema.gov/sites/default/files/documents/fema_hma-program-policy-guide_032023.pdf (last accessed on August 1,2024).
    \23\ See, e.g., www.regulations.gov, Docket ID FEMA-2022-0023 at 
FEMA-2022-0023-0014 (comment from Texas Division of Emergency 
Management suggesting that FEMA remove the statutory requirement 
that FEMA will only consider an extension to the application 
deadline if the applicant's inability to meet the deadline must have 
resulted from the event leading to the major disaster declaration. 
TDEM notes ``[t]here are many legitimate extenuating circumstances 
that could lead a state to miss an application deadline that aren't 
directly caused by the declared disaster.''); at FEMA-2022-0023-0032 
(comment from Iowa Homeland Security and Emergency Management noting 
more time might be necessary for projects if a State experiences 
back to back disaster declarations); at FEMA-2022-0023-0034 (comment 
from the City of New Orleans argues that not allowing applicants to 
submit projects after the application period closes creates a strain 
on applicants to have ready to go project ideas in the near-term 
recovery period); at FEMA-2022-0023-0038 (comment from New York 
State Hazard Mitigation arguing that FEMA should be incorporating 
flexibility into the application process, particularly when FEMA 
and/or other disasters are the sole reasons for not being able to 
meet the 12 month deadline, noting that ``[i]n a perfect world, a 12 
month application period seems more than sufficient, but taking into 
account impacts from one disaster occurring while dealing with 
another disaster and adding 2 more disasters within the 12 month 
period plus annual FEMA competitive programs that all impact the 
same groups makes this an impossibility.''); at FEMA-2022-0023-0053) 
(comment from Louisiana Governor's Office of Homeland Security and 
Emergency Preparedness arguing that a State/jurisdiction can face 
significant challenges when back to back events occur, stating it is 
it is ``unrealistic to assume that the impacts from one event are 
not compounded by each subsequent event, affecting overlapping 
regions of the State, and further stressing State and local 
capacity'' and further stating that ``FEMA should provide 
flexibility to extend and in some cases re-open an application 
period when a lock-in recalculation is made, especially when that 
recalculation comes at the end of the application period, and 
especially when the increase is substantial'' because applicants 
need sufficient time to develop and submit quality applications.)
    \24\ Id.

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[[Page 66245]]

    Finally, FEMA asserts this rule provides necessary relief for the 
public that should not be delayed. Delayed effective dates are provided 
to give the public a reasonable time to prepare to comply with a rule. 
The APA generally requires that substantive rules incorporate a 30-day 
delayed effective date. 5 U.S.C. 553(d). However, the APA 
simultaneously provides an exception to the 30-day delayed effective 
date for rules which grant or recognize an exemption or relieve a 
restriction.\25\ 5 U.S.C. 553(d)(1). This rule relieves a restriction 
on the amount of time HMGP applicants have to develop and submit 
mitigation project applications and is a result of public comment.
---------------------------------------------------------------------------

    \25\ See Indep. U.S. Tanker Owners Comm. v. Skinner, 884 F.2d 
587, 591 (D.C. Cir. 1989) (holding where rule relieves restriction, 
agency need not make explicit claim in published rule of its right 
to waive 30-day waiting period).
---------------------------------------------------------------------------

    In response to a March 2023 update to and publication of the Hazard 
Mitigation Policy and Program Guide,\26\ FEMA received comments from 
Iowa Homeland Security and Emergency Management,\27\ the Texas Division 
of Emergency Management,\28\ New York State Hazard Mitigation,\29\ the 
Louisiana Governor's Office of Homeland Security and Emergency 
Preparedness,\30\ and the City of New Orleans,\31\ all calling for 
additional time and flexibilities in the HMGP application process. In 
response to this feedback, FEMA ran a query of HMGP disaster 
application duration periods and found a need to extend the HMGP 
application period. This discussion is found in the regulatory analysis 
section below. This final rule will allow applicants and subapplicants 
more time to develop and submit additional mitigation project 
applications to address climate change and other unmet mitigation 
needs, relieving the restriction from which public commenters requested 
relief.
---------------------------------------------------------------------------

    \26\ 87 FR 52016; HMAPPG, available at https://www.fema.gov/sites/default/files/documents/fema_hma-program-policy-guide_032023.pdf (last accessed on August 1, 2024).
    \27\ FEMA-2022-0023-0032.
    \28\ FEMA-2022-0023-0014.
    \29\ FEMA-2022-0023-0038.
    \30\ FEMA-2022-0023-0053.
    \31\ FEMA-2022-0023-0034.
---------------------------------------------------------------------------

B. Executive Orders 12866, ``Regulatory Planning and Review'' and 
13563, ``Improving Regulation and Regulatory Review''

    Executive Orders 12866 (``Regulatory Planning and Review'') as 
amended by Executive Order 14094 (Modernizing Regulatory Analysis), and 
13563 (Improving Regulation and Regulatory 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, reducing costs, harmonizing rules, and promoting 
flexibility.
    The Office of Management and Budget (OMB) has not designated this 
rule a significant regulatory action under section 3(f) of Executive 
Order 12866, as amended by Executive Order 14094. Accordingly, OMB has 
not reviewed this regulatory action.
    The following paragraphs explain the need for the updated 
regulation, the affected population, and the benefits.
Need for Updated Regulation
    Through HMGP, FEMA provides financial assistance to States, 
Territorial, and Tribal governments and thereafter funds may be 
distributed to local authorities or certain private nonprofit 
organizations for post disaster hazard mitigation measures that reduce 
the risk of, or increase resilience to, future damage, hardship, loss 
or suffering in any area affected by a major disaster. FEMA's current 
12-month HMGP application deadline in regulation does not provide 
sufficient time for applicants to submit their applications resulting 
in frequent requests for application period extensions. Additionally, 
FEMA currently lacks the ability to re-open closed HMGP application 
periods when additional funding becomes available after the period 
closes or when an applicant's extension appeal is granted by FEMA. In 
these cases, FEMA's inability to re-open application periods prevents 
HMGP funds from helping communities rebuild in a way that mitigates 
future disaster losses.
    To assess the need for changes to the existing application period 
authorities, FEMA ran a query of application period durations for the 
689 disasters declared during the 10-year period from 2013 to 2022. It 
found that:
     Only 26 percent of applicants (179 of 689) were able to 
submit all subapplications within the base 12-month application period;
     16 percent of applicants (111 of 689) were able to submit 
their applications after 12 months and within 15 months;
     31.3 percent of applicants (215 of 689) were able to 
submit their applications after 15 months and within 18 months, only 
requiring an extension from the Regional Administrator; and,
     26.7 percent (184 of 689 applicants) needed extensions 
beyond 18 months from FEMA Headquarters to be able to submit all 
subapplications. Currently, the only existing extension authority from 
Headquarters to issue application extensions is Section 301 of the 
Stafford Act.
    During this 10-year period, the average amount of additional time 
approved by FEMA beyond the regulatorily provided 18 months is 
approximately 11.6 months, which was heavily influenced by several 
major disasters with extraordinary circumstances, including major 
disaster Hurricanes Harvey, Irma, and Maria in 2017. The median amount 
of additional time was 6.1 months. This data shows that the current 
application period extension allowances are not enough for many 
applicants.
    The Figure 1 graph shows application period extension length by 
disaster over the 10-year period analyzed. The dark portion of the x-
axis labeled ``Regional Extension'' shows disasters where the recipient 
requested an extension from the Regional Administrator and the light 
portion of the x-axis labeled ``Headquarters Extension'' shows 
extension requests from Headquarters. FEMA excluded approximately 70 
major disasters with extensions cumulatively greater than 460 days from 
the graph below because including these outliers would affect the scale 
and make it difficult to display the plateaus at 90 days (representing 
a total application period of 15 months) and 180 days (representing a 
total application period of 18 months).\32\ There are also smaller 
plateaus at 270 and 365 days (representing application periods of 21 
and 24 months, respectively) due to Headquarters extensions. These 
plateaus show the amount of time frequently requested by HMGP 
recipients and granted by FEMA. FEMA is using this information to 
update Sec.  206.436(d)-(e) by:
---------------------------------------------------------------------------

    \32\ FEMA excluded 70 major disasters with extensions 
cumulatively greater than 460 days. These data outliers had 
extraordinary circumstances that required significantly more time to 
address and therefore do not represent typical disasters.
---------------------------------------------------------------------------

     Increasing the base application period by 3 months: from 
12 to 15 months. This would decrease the percentage of recipients that 
require a Regional or Headquarters extension by 16 percent (111 of 
689).
     Lengthening the Regional Administrator extension authority 
from 180 days (6 months) to 240 days (8 months). This would decrease 
the percentage of recipients that require Headquarters extensions by 
10.7 percent

[[Page 66246]]

(from 26.7 percent to 16 percent of disaster application periods). Only 
16 percent would require an extension beyond what the Regional 
Administrator could grant.
[GRAPHIC] [TIFF OMITTED] TR15AU24.021

    The additional 3 months gained from changing the application period 
from 12 to 15 months will give HMGP recipients time to receive the 12-
month lock-in from FEMA and make educated adjustments to the amount of 
funding they have applied for. This would lessen the administrative 
burden placed on HMGP recipients and FEMA as it would require fewer 
application extension requests and responses.
    The 15-month application period allows FEMA to balance the need to 
provide assistance quickly with ensuring appropriate oversight of 
application periods that exceed this period. FEMA Headquarters will 
retain the ability to issue consistent determinations on additional 
application period requests for major disasters with extraordinary 
circumstances. It ensures that recipients have adequate time to submit 
applications while simultaneously obligating funds at an acceptable 
rate.
Affected Population
    HMGP funding is available, when authorized under a Presidential 
major disaster declaration, in the areas identified by the requesting 
State Governor or Chief Executive of an eligible Tribe. The level of 
HMGP funding available for a given disaster is based on a percentage of 
the estimated total Federal assistance available under the Stafford 
Act, excluding administrative costs, for each Presidential major 
disaster declaration. This rule will extend the HMGP application 
deadline for States, Territories, and the District of Columbia as well 
as 565 Federally-recognized Tribes. HMGP applications are made by 
States or Tribes on behalf of subapplicants that include local 
government agencies and eligible private nonprofit organizations.
    From 2013 to 2022, FEMA's HMGP approved an average of 69 
applications per year and approved an average of $859,779 in Federal 
funding per applicant. 33 34 Of these projects, FEMA found 
43 Tribal projects, or an average of 4 per year. However, FEMA's 
database does not indicate whether these were submitted directly by an 
eligible Tribe, or through a State with the Tribe as a subrecipient.
---------------------------------------------------------------------------

    \33\ FEMA adjusted approved funding amounts by the Consumer 
Price Index for All Urban Consumers to 2022 dollars. Available at 
https://data.bls.gov/timeseries/CUUR0000SA0&years_option=specific_years&from_year=2013&to_year=2022&periods_option=specific_periods&periods=M13&annualAveragesRequested=true (Last accessed on August 1, 2024).
    \34\ Data for projects that, as of the date of this analysis, 
are still pending or under review where the Federal Share Obligated 
is not listed, as well as denied applications, were exclded from the 
average.
---------------------------------------------------------------------------

Baseline
    Following Office of Management and Budget (OMB) Circular A-4 
guidance, FEMA assessed impacts of this rule against a no-action 
baseline. The no-action baseline is what the world would look like 
without this rule. Accordingly, measuring the rule against a no-action 
baseline shows the effects of the rule as compared to current FEMA 
practice (i.e., compared to Sec.  206.436 and the HMA Program and 
Policy Guide,\35\ which reflect FEMA's current practice).
---------------------------------------------------------------------------

    \35\ HMAPPG, Part 6.C.1., p. 131, available at https://www.fema.gov/sites/default/files/documents/fema_hma-program-policy-guide_032023.pdf (last accessed on August 1, 2024).
---------------------------------------------------------------------------

    FEMA conducted a 10-year retrospective analysis of available HMGP 
data from 2013 to 2022, the most recent representative disaster period 
with complete data at the time of this analysis, to estimate how the 
rule will impact major disaster declaration costs, benefits, and 
transfers over a 10-year period. FEMA recognizes a future 10-

[[Page 66247]]

year period could vary from the 2013 to 2022 period. However, this is 
the best estimate given the data available and the unpredictability of 
the number, size, and cost of future HMGP awards.
    FEMA is making the following changes in this rule: (1) Extending 
the initial deadline for States to submit local HMGP applications and 
funding requests from 12 months to 15 months from the date of disaster 
declaration; (2) increasing application period extensions from 
increments of an additional 90 days to 120-day increments and 
increasing the total limit from 180 days to 240 days; (3) allowing FEMA 
to consider application period extension requests beyond 240 days for 
extenuating circumstances outside of the applicant's control; (4) 
enabling the reopening of a closed application period if FEMA approves 
a recalculation of HMGP assistance funding and the applicant requests 
to reopen the application period within 60 days of FEMA's recalculation 
approval; and (5) enabling the reopening of a closed application period 
if FEMA grants an appeal for an application period extension denial 
after an application period is closed.
    For this analysis, FEMA looked at approved HMGP applications and 
the timelines in which they were submitted. FEMA looked at application 
deadlines that were extended by FEMA Regional Administrators as well as 
extensions approved by FEMA Headquarters. For all disasters declared 
between January 1, 2013, and December 31, 2022 the average application 
period was 19.3 months.\36\
---------------------------------------------------------------------------

    \36\ Data was pulled from FEMA's NEMIS database. Data is entered 
manually by FEMA employees processing these applications and is 
subject to data entry and incomplete or missing data fields. FEMA 
excluded Disaster numbers 4241, 4140, 4214, and 4163 from this 
average as that data is unreliable. Including these disasters will 
have increased the average to 19.64 months.
---------------------------------------------------------------------------

    Currently, the Regional Administrator can issue an extension of 6 
months to each disaster's application period. Disasters that require 
application submission time in excess of 18 months (12-month 
application period + 6-month regional extension) can be extended by 
FEMA Headquarters. The average Headquarters extension required is 11.6 
months. FEMA found that 510 out of the 689 disasters declared in the 
10-year period, or 74 percent, needed an extension from a FEMA Regional 
Administrator (over 12 months), and 184 out of the 510 disasters 
requiring an extension from FEMA, or 36 percent, also needed an 
extension from FEMA Headquarters (over 18 months). Changing the 
standard length of the application period from 12 months to 15 months 
and changing the Regional Administrator's extension authority from 6 
months to 8 months will allow the regions to completely handle 
disasters with application periods under 23 months. This represents 579 
out of 689 disasters declared in the 10-year period, or 84 percent. 
FEMA estimates that with this rule, an average of 110 disasters per 
year, or 16 percent of disasters annually, will require an extension 
from FEMA Headquarters.
    FEMA does not have historical data for reopening the application 
period. FEMA does not currently have the regulatory authority to reopen 
application periods. However, FEMA does know of two requests over the 
past 5 years to reopen the application period, both of which were 
denied.
Costs
    The primary costs associated with this rule are familiarization 
costs for States, Territories, the District of Columbia, and Tribes 
after this rule is finalized. FEMA assumes that Tribal Governments will 
only need to understand this process when a disaster is declared in 
their territory, so rather than estimating familiarization costs for 
all 565 Tribes, FEMA assumes only 4 per year--the average number of 
Tribal projects per year from 2013 to 2022--will need to read and 
understand this rule. FEMA estimates that in the first year, 60 
applicants will read this rule, followed by an average of 4 applicants 
in subsequent years.
    Based on a benchmark reading level of 250 words per minute for most 
adults,\37\ FEMA estimates that for each applicant two Emergency 
Management Directors per State, with a fully-loaded wage rate of $55.78 
\38\ ($34.86 x 1.6) \39\ will spend 0.7 hours (approximately 9,000 
words / 250 words per minute / 60 minutes) to read and understand this 
rule. This will lead to familiarization costs of $4,686 for the first 
year ($55.78 per hour x 0.7 hours x 120 employees). Subsequent years 
will have familiarization costs of $312 ($55.78 per hour \40\ x 0.7 
hours x 8 employees).
---------------------------------------------------------------------------

    \37\ HealthGuidance.org, What Is the Average Reading Speed and 
the Best Rate of Reading? (April 22, 2024), available at https://www.healthguidance.org/entry/13263/1/what-is-the-average-reading-speed-and-the-best-rate-of-reading.html ExecuRead, Speed Reading 
Facts, https://secure.execuread.com/facts/ (last accessed on August 
1, 2024).
    \38\ Bureau of Labor Statistics, May 2022 National Industry-
Specific Occupational Employment and Wage Estimates, NAICS 999200 
State Government excluding schools and hospitals, SOC 11-9161 
Emergency Management Directors mean hourly wage $34.86. Available at 
https://www.bls.gov/oes/2022/may/naics4_999200.htm#11-0000. (last 
accessed on August 1, 2024).
    \39\ FEMA uses a benefits multiplier of 1.61 to calculate fully 
loaded wage rates. The benefits multiplier accounts for costs to the 
employer beyond wages, such as paid leave, health insurance, 
retirement, and other benefits. Bureau of Labor Statistics, Employer 
Costs for Employee Compensation, Table 1. ``Employer costs For 
Employee Compensation by ownership,'' March 2023. Available at 
http://www.bls.gov/news.release/archives/ecec_06162023.pdf. (last 
accessed on August 1, 2024). The benefits multiplier is calculated 
by dividing total compensation for State and local government 
workers of $58.08 by Wages and salaries for State and local 
government workers of $35.89 per hour yielding a benefits multiplier 
of approximately 1.6 ($58.08 / $35.89).
    \40\ Occupational Employment Statistics do not include Tribal 
Governments in their estimates, so FEMA used the wage rate for State 
Government employees.
---------------------------------------------------------------------------

    FEMA estimates the 10-year annualized familiarization costs for 
this rule to be $810 at 7 percent and $894 at 3 percent. See Table 1.

                        Table 1--10-Year Familiarization Costs, Discounted and Annualized
                                                     [$2023]
----------------------------------------------------------------------------------------------------------------
                              Year                                 Undiscounted      3 Percent       7 Percent
----------------------------------------------------------------------------------------------------------------
1...............................................................          $4,686          $4,550          $4,379
2...............................................................             312             294             273
3...............................................................             312             286             255
4...............................................................             312             277             238
5...............................................................             312             269             222
6...............................................................             312             261             208
7...............................................................             312             254             194
8...............................................................             312             246             182
9...............................................................             312             239             170

[[Page 66248]]

 
10..............................................................             312             232             159
                                                                 -----------------------------------------------
    Total.......................................................           7,494           6,908           6,280
    Annualized..................................................  ..............             810             894
----------------------------------------------------------------------------------------------------------------

    FEMA cannot predict whether applicants will spend additional time 
on their grant applications as a result of the extension. However, FEMA 
expects extending the application period by 3 months for HMGP 
assistance will not increase costs to HMGP applicants or to FEMA. 
Applicants will have more knowledge about the amount of money they will 
have to spend at 15 months because the ``lock-in'' generally occurs at 
12 months; the extension allows for 3 months of additional time, post-
disaster, to recover and identify areas for improved resiliency in 
their communities. FEMA expects the additional time will help 
applicants ensure application information is accurate and includes 
necessary mitigation projects. The ability to reopen the application 
period is not allowed under current regulations, so this will add 
additional costs to FEMA and applicants. An applicant will have to 
dedicate time to request the reopening, and FEMA will have to review 
and approve or deny the reopening based on statutory authority to do 
so. However, since this has not been done before, FEMA does not have 
historical data to estimate the time and staffing requirements to 
reopen an application period.
Benefits
    This rule will reduce the application burden for applicants and 
FEMA by extending application deadlines to a more reasonable timeframe. 
These timeframes will allow applicants to collect information and 
submit the application to the FEMA Region and receive approval without 
the additional steps involved in requesting extensions from FEMA 
Regional Administrators and FEMA Headquarters. Additionally, this rule 
will decrease the burden on FEMA of processing application extension 
requests.
    FEMA estimated cost savings to the Federal Government by 
multiplying the reduction of work hours for FEMA staff to review and 
process the extension request by the hourly-loaded wage rates. HMGP 
regional staff estimate a time burden between 3-5 hours per extension 
request, which includes multiple levels of review. FEMA used an average 
estimate of 3.5 hours for a Regional Office review and 4 hours for a 
Headquarters review. FEMA used Step 5 of the General Schedule to 
account for the average experience level of Federal employees, and 
added a 23.25 percent average locality multiplier to account for 
average locality pay across the United States \41\ to the 2023 General 
Schedule (Base) \42\ pay, as well as a 1.45 percent benefits 
multiplier.\43\ For example, a GS-12 Step 5 working in a Regional 
Office would have an estimated hourly compensation of $69.00 (base wage 
of $38.61 x 1.2325 average locality adjustment x 1.45 wage multiplier). 
Table 2 shows the breakdown of time and wages for FEMA staff to review 
and approve extension requests.
---------------------------------------------------------------------------

    \41\ FEMA averaged the locality adjustment for all localities 
across the U.S. Available at https://www.federalpay.org/gs/locality 
(last accessed on August 1, 2024).
    \42\ 2023 General Schedule Pay Table (Base), available at 
https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/23Tables/pdf/GS_h.pdf. (last accessed on August 1, 
2024).
    \43\ FEMA uses a benefits multiplier of 1.45 to calculate fully 
loaded wage rates. The benefits multiplier accounts for costs to the 
employer for benefits, such as paid leave, health insurance, 
retirement, and other benefits. Bureau of Labor Statistics, Employer 
Costs for Employee Compensation, Table 1.``Employer costs For 
Employee Compensation by ownership,'' March 2023. Available at 
http://www.bls.gov/news.release/archives/ecec_06162023.pdf (last 
accessed on August 1, 2024).
    The benefits multiplier is calculated by dividing total 
compensation for civilian workers of $43.07 by Wages and salaries 
for civilian workers of $29.70 per hour yielding a benefits 
multiplier of approximately 1.45 ($43.07 / $29.70).

                               Table 2--Review of HMGP Extension Requests (2023$)
----------------------------------------------------------------------------------------------------------------
                                                                                                       Total
                 Type                          Grade level             Hours       Fully-loaded     opportunity
                                                                                  wage rate \44\   cost savings
----------------------------------------------------------------------------------------------------------------
Regional Extension *..................  12......................             2.5          $69.00         $172.50
                                        14......................             0.5           96.95           48.48
                                        15......................            0.25          114.05           28.51
                                        [dagger] SES............            0.25          123.09           30.77
                                       -------------------------------------------------------------------------
    Total per Request.................  ........................  ..............  ..............          280.26
----------------------------------------------------------------------------------------------------------------
HQ Extension [supcaret]...............  12......................             2.5           74.17          185.42
                                        14......................             0.5          104.23           52.11
                                        15......................            0.25          122.60           30.65
                                        13 (Legal Review).......             0.5           88.20           44.10
                                        SES.....................            0.25          123.09           30.77
                                       -------------------------------------------------------------------------
    Total per Request.................  ........................  ..............  ..............          343.05
----------------------------------------------------------------------------------------------------------------
* Office of Personnel Management 2023 Pay and Leave Table (Base Schedule with 23.25% increase for average
  locality differential). Available at https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2023/GS_h.pdf. (Wage rates multiplied by 1.2325) (last accessed on August 1, 2024).

[[Page 66249]]

 
[dagger] Senior Executive Service January 2023 Pay and Leave. Available at https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/23Tables/exec/html/ES.aspx. (last accessed on August 1,
  2024). FEMA used the midpoint of the salary rage ($141,022 to $212,100) of $176,561 and applied a multiplier
  of 1.45 to obtain yearly compensation of $256,013. Yearly salary was divided by 2,080 to estimate hourly
  compensation of $123.09.
[supcaret] Office of Personnel Management 2023 Pay and Leave Tables for the Washington-Baltimore-Arlington, DC-
  MD-VA-WV-PA locality. Available at https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2023/DCB.pdf (last accessed on August 1, 2024).

    FEMA estimates that this rule will reduce the number of extension 
requests by 6.9 per year for the Regional Administrators and 7.4 per 
year for FEMA Headquarters. This will lead to a cost reduction of 
$1,934 (6.9 requests x $280.26) per year for Regional extensions and 
$2,539 (7.4 requests x $343.05) per year for Headquarters extensions.
---------------------------------------------------------------------------

    \44\ FEMA uses a benefits multiplier of 1.45 to calculate fully-
loaded wage rates. The benefits multiplier accounts for costs to the 
employer for benefits, such as paid leave, health insurance, 
retirement, and other benefits. Bureau of Labor Statistics, Employer 
Costs for Employee Compensation, Table 1.``Employer costs For 
Employee Compensation by ownership,'' March 2023. Available at 
http://www.bls.gov/news.release/archives/ecec_06162023.pdf (last 
accessed on August 1, 2024).
    The benefits multiplier is calculated by dividing total 
compensation for civilian workers of $43.07 by Wages and salaries 
for civilian workers of $29.70 per hour yielding a benefits 
multiplier of approximately 1.45 ($43.07 / $29.70).
---------------------------------------------------------------------------

    FEMA estimated the cost savings to applicants of this rule by 
multiplying the reduction of work hours for an applicant to compile 
information and submit the extension request by the annual number of 
extension requests and by the appropriate wage rate. HMGP regional 
staff estimate the time burden for applicants to be 3-5 hours for each 
extension request; FEMA used the average estimate of 4 hours. FEMA 
estimates the average number of extension requests to be 14.3 (6.9 
Regional + 7.4 Headquarters) per year, and the fully-loaded \45\ hourly 
wage rate for a State Government Emergency Management Director to be 
$55.78.\46\ FEMA estimates applicant cost savings of $223.12 ($55.78 x 
4) per extension request and a total cost savings to applicants of 
$3,191 ($223.12 x 14.3 requests).
---------------------------------------------------------------------------

    \45\ Fully-loaded wage rates include other benefits, we are 
using a factor of 1.61 to calculate fully loaded wage rates. The 
unloaded wage rate does not account for costs to the employer for 
benefits, such as paid leave, health insurance, retirement, and 
other benefits. Bureau of Labor Statistics. Employer Costs for 
Employee Compensation, Table 1. ``Employer costs For Employee 
Compensation by ownership,'' March 2023. Retrieved from http://www.bls.gov/news.release/archives/ecec_06162023.pdf (last accessed 
on August 1, 2024).
    The wage multiplier is calculated by dividing total compensation 
for State and local government workers of $58.08 by Wages and 
salaries for State and local government workers of $35.89 per hour 
yielding a benefits multiplier of approximately 1.61 ($58.08 / 
$35.89).
    \46\ Bureau of Labor Statistics. Occupational Employment Survey 
May 2022, SOC 11-9161 Emergency Management Directors: State 
Government mean hourly wage $34.86. Available at https://www.bls.gov/oes/2022/may/naics4_999200.htm#11-0000 (last accessed on 
August 1, 2024).
---------------------------------------------------------------------------

    The total quantified cost savings from this rule are $4,473 ($1,934 
+ 2,539) in cost savings to FEMA and $3,191 in cost savings to HMGP 
applicants totaling $7,664 in cost savings per year. FEMA was unable to 
estimate the benefits from reopening the application period due to a 
lack of historical data. FEMA expects that additional cost savings will 
exist by diminishing the need to reopen the application period for 
numerous applications but cannot quantify those cost savings.
Transfer Payments
    FEMA is not able to estimate the impacts on transfer payments of 
this rule. FEMA expects no changes in the number of HMGP grants 
approved, or the amount of funding obligated as total HMGP funding is 
limited by a ``lock-in,'' which acts as a ceiling for assistance 
available to a recipient, including its subrecipients. The level of 
HMGP assistance available for a given disaster is based on a percentage 
of the estimated total Federal assistance under the Stafford Act, 
excluding administrative costs for each major disaster declaration.\47\ 
However, FEMA is unable to estimate if the changes will affect the 
amount of funding that is obligated but unused by applicants. Between 
2013 and 2022 approximately 18.22 percent of HMGP funds were returned 
to the Disaster Relief fund due to a number of factors, including 
insufficient time for recipients to submit applications. This amount 
also includes withdrawn applications, ineligible applications, or 
applications found to not be cost-effective by FEMA. Because 
application time constraints were only one factor in the amount of HMGP 
funds not expended, FEMA is unable to estimate the amount of transfers 
that can be expected from this rule.
---------------------------------------------------------------------------

    \47\ HMAPPG, Part 10.A.4.p.199, available at https://www.fema.gov/sites/default/files/documents/fema_hma-program-policy-guide_032023.pdf (last accessed on August 1, 2024).
---------------------------------------------------------------------------

Alternatives Considered
    FEMA considered extending the application period to 18 months 
instead of 15 months, with no changes to the Regional Administrator's 
ability to extend. While the average application period duration 
including extensions is approximately 19 months. Major disasters with 
extraordinary circumstances, which are far less common than typical 
disasters, raised the average significantly. FEMA chose to increase the 
application period to 15 months to balance the need to provide 
assistance quickly while ensuring appropriate oversight for more 
complex disasters. In addition, requesting additional time for Regional 
Administrators to authorize (i.e., two 120-day extensions instead of 
two 90-day extensions) will address most outliers that need to extend 
beyond 15 months.
Conclusion
    FEMA believes this rule is necessary due to historical timeframes 
for HMGP applications exceeding what is currently allowed by 
regulation. Under current practice, the majority of HMGP applications 
must be extended by FEMA regions and FEMA Headquarters. This creates an 
unnecessary burden to both FEMA and HMGP applicants that increases the 
costs of submitting these applications as well as project delays under 
the current process for requesting extension. The extensions provided 
by this rule will result in cost savings to both FEMA and HMGP 
applicants, as well as streamline the process for a substantial number 
of applicants who will no longer be required to navigate a cumbersome 
process of requesting extensions through the Regional Administrator and 
FEMA Headquarters. The cost savings associated with this final rule 
show why extending the HMGP application period will be beneficial. 
Additionally, this rule will allow FEMA more flexibility to reopen HMGP 
application periods when needed and to reopen application periods if an 
applicant successfully appeals a denial. This rule will ensure HMGP 
funds are more efficiently allocated.

[[Page 66250]]



         Table 3--OMB Circular A-4 Accounting Statement (2023$)
------------------------------------------------------------------------
                                  3 Percent discount  7 Percent discount
            Category                     rate                rate
------------------------------------------------------------------------
BENEFITS:
    Annualized Monetized........  $7,664............  $7,664
                                 ---------------------------------------
    Qualitative (unquantified)      More likely to use available
     benefits.                      HMGP funds due to greater likelihood
                                             of grant approvals
                                 ---------------------------------------
COSTS:
                                 ---------------------------------------
    Annualized Monetized........  $810..............  $894
                                 ---------------------------------------
    Qualitative (unquantified)                      N/A
     costs.
                                 ---------------------------------------
TRANSFERS:
                                 ---------------------------------------
    Annualized Monetized........  $0................  $0
                                 ---------------------------------------
    Qualitative (unquantified)      Increased number of approved
     Transfers.                        HMGP grants up to the maximum
                                       available funding per declared
                                                  disaster
                                 ---------------------------------------
    From/To.....................        FEMA to HMGP recipients and
                                               subrecipients
                                 ---------------------------------------
    Effects on State, local, and/   Extends the HMGP application
     or Tribal governments.        deadline for States, Territories, and
                                    the District of Columbia as well as
                                      565 Federally recognized Tribes
                                 ---------------------------------------
    Effects on small businesses.           Not estimated
                                 ---------------------------------------
    Effects on wages............                   None
                                 ---------------------------------------
    Effects on growth...........                   None
------------------------------------------------------------------------

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, Pub. L. 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.'' \48\ An RFA analysis is 
not required for this rulemaking because FEMA is not required to 
publish a notice of proposed rulemaking.
---------------------------------------------------------------------------

    \48\ 5 U.S.C. 603(a).
---------------------------------------------------------------------------

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.
    Additionally, regulations are only reviewable under UMRA when an 
agency has published a notice of proposed rulemaking as defined by 5 
U.S.C. 553(b). See 2 U.S.C. 658(10); 5 U.S.C. 601(2). FEMA is not 
required to publish a notice of proposed rulemaking; thus, this rule is 
exempt from UMRA's requirements pertaining to the preparation of a 
written statement.

E. Paperwork Reduction Act of 1995

    As required by the Paperwork Reduction Act of 1995 (PRA), Public 
Law 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. This rule contains 
collections of information that are subject to review by OMB. The 
information collections included in this rule are approved by OMB under 
control number 1660-0076 (Hazard Mitigation Grant Program Application 
and Reporting).
    This rulemaking calls for no new collections of information under 
the PRA. This rule includes information currently collected by FEMA and 
approved in OMB information collection 1660-0076. The changes in this 
rulemaking do not change the forms, the substance of the forms, or the 
number of applicants who would submit the forms to FEMA. No additional 
documentation will be required as State, local and Tribal governments 
already submit extension requests. However, FEMA estimates additional 
flexibilities of this rule will result in a minor cost savings for SLTT 
applicants of $3,191 ($223.12 x 14.3 extension requests) per year.

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

[[Page 66251]]

about an individual that is maintained by an agency, including, but not 
limited to, their education, financial transactions, medical history, 
and criminal or employment history and that contains their 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.
    A Privacy Threshold Analysis was completed August 3, 2023. FEMA's 
OMB information collection 1660-0076 is a privacy-sensitive collection, 
requiring PIA coverage and coverage is provided under DHS/FEMA/PIA-006 
National Emergency Management Information System Mitigation (MT) 
Electronic Grants (eGrants) System, which covers PII that may be 
included in grant applications made by states or local communities.\49\ 
The rule, once enacted, will not change the forms, the substance of the 
forms, or the number of applicants who would submit to FEMA's OMB 
information collection 1660-0076. The rule will not change the PII data 
elements or the amount of PII collected by FEMA. The rule will not 
require additional collection of information beyond what is already 
documented within the 1660-0076 Hazard Mitigation Grant Program 
Application and Reporting Collection PTA. SORN coverage is provided 
under DHS/FEMA-009 Hazard Mitigation, which covers PII collected from 
individual property owners and/or occupants whose properties are 
identified in applications for public assistance, hazard mitigation 
assistance, and other disaster-related assistance or who have been 
identified by FEMA as candidates for such assistance.\50\
---------------------------------------------------------------------------

    \49\ Additional PIA coverage is provided under DHS/FEMA/PIA-031 
Authentication and Provisioning Services, which covers PII that APS 
collects, uses, maintains, and retrieves about employees, 
contractors, members of the public; and Federal, State, local, and 
Tribal government officials; and under DHS/FEMA/PIA-026 Operational 
Data Store and Enterprise Data Warehouse, which covers PII related 
to the production of agency reports for internal use as well as for 
external stakeholders via those systems.
    \50\ Additional SORN coverage is provided under DHS/ALL-004 
GITAARS SORN, which covers user information collected to grant 
access to IT systems.
---------------------------------------------------------------------------

G. 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 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. 
This rule involves no policies that have Tribal implications under 
Executive Order 13175. Although Indian Tribal Governments are 
potentially eligible applicants under HMGP, FEMA has determined this 
rulemaking would not have substantial negative direct effects on 
citizens of Tribal Nations, on the relationship between the Federal 
Government and Indian Tribes, or the distribution of power and 
responsibilities between the Federal Government and Indian Tribes. 
There is no substantial direct compliance cost associated with this 
rule. The HMGP program is a voluntary program that provides funding to 
applicants, including Tribal governments, for eligible mitigation 
planning and projects that reduce disaster losses and protect life and 
property from future disaster damages. An Indian Tribal Government may 
participate as either an applicant/recipient or a subapplicant/
subrecipient. FEMA does not expect the regulatory changes in this rule 
to disproportionately affect Indian Tribal Governments acting as 
applicants.

H. 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. 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. FEMA has determined that this 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. This rulemaking amends regulations governing 
voluntary grant programs that may be used by State, local and Tribal 
governments to fund eligible mitigation activities that reduce disaster 
losses and protect life and property from future disaster damages. 
States are not required to seek grant funding, and this rulemaking does 
not limit their policymaking discretion.

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

    Executive Order 11988, 42 FR 26951 (May 25, 1977), as amended by 
Executive Order 13690, ``Establishing a Federal Flood Risk Management 
Standard (FFRMS) and a Process for Further Soliciting and Considering 
Stakeholder Input,'' (80 FR 6425, Feb. 4, 2015) and Executive Order 
14030, ``Climate-Related Financial Risk,'' (86 FR 27967, May 25, 2021), 
requires each Federal agency to provide leadership and take action to 
reduce the risk of flood loss, to minimize the impact of floods on 
human safety, health and

[[Page 66252]]

welfare, and to 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 
to minimize potential harm to or within the floodplain, consistent with 
the agency's floodplain management regulations. It must also prepare 
and circulate a notice containing an explanation of why the action is 
proposed to be located in the floodplain.
    The purpose of this rule is to extend the HMGP application period 
to allow applicants additional time to submit projects to address the 
effects of climate change and other unmet mitigation needs in 
communities. In accordance with 44 CFR part 9, ``Floodplain Management 
and Protection of Wetlands,'' FEMA determines that the changes in this 
rule do not meet the definition of an action that would require 
analysis under the 8-step decision-making process.

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. These 
responsibilities include (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 making this finding, the head of the 
agency may take into account economic, environmental and other 
pertinent factors.
    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. These include public health, 
safety, and welfare, including water supply, quality, recharge and 
discharge; pollution; flood and storm hazards; 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. They also include other uses of wetlands in the public 
interest, including recreational, scientific, and cultural uses. The 
purpose of this rule is to extend the HMGP application period to allow 
applicants additional time to submit projects to address the effects of 
climate change and other unmet mitigation needs in communities. In 
accordance with 44 CFR part 9, ``Floodplain Management and Protection 
of Wetlands,'' FEMA determines that the changes in this rule do not 
meet the definition of an action that would require analysis under the 
8-step decision-making process.

K. National Environmental Policy Act of 1969 (NEPA)

    Section 102 of the National Environmental Policy Act of 1969 
(NEPA), Public Law 91-190, 83 Stat. 852 (Jan. 1, 1970) (42 U.S.C. 4321 
et seq.), as amended, requires Federal agencies to evaluate the impacts 
of a proposed major Federal action that may significantly affect the 
quality of the human environment, consider alternatives to the proposed 
action, provide public notice and opportunity to comment, and properly 
document its analysis. DHS and its component agencies analyze proposed 
actions to determine whether NEPA applies to them and, if so, what 
level of documentation and analysis is required. 40 CFR 1501.3.
    DHS Directive 023-01, Rev. 01 and DHS Instruction Manual 023-01-
001-01, Rev. 01 (Instruction Manual) establish the policies and 
procedures DHS and its component agencies use to comply with NEPA and 
the Council on Environmental Quality (CEQ) regulations for implementing 
the procedural requirements of NEPA codified at 40 CFR parts 1500 
through 1508. The CEQ regulations allow Federal agencies to establish, 
in their NEPA implementing procedures, with CEQ review and concurrence, 
categories of actions (``categorical exclusions'') that experience has 
shown normally do not, individually or in the aggregate, have a 
significant effect on the human environment and, therefore, do not 
require preparation of an environmental assessment or environmental 
impact statement. 40 CFR 1501.4, 1507.3(c)(8), 1508.1(e). The 
Instruction Manual, Appendix A, lists the DHS categorical exclusions. 
Under DHS NEPA implementing procedures, for an action to be 
categorically excluded it must satisfy each of the following 
conditions: (1) the entire action clearly fits within one or more of 
the categorical exclusions; (2) the action is not a piece of a larger 
action; and (3) no extraordinary circumstances exist that create the 
potential for a significant environmental effect. Instruction Manual, 
section V.B.(2)(a-c).
    This rule revises regulations at 44 CFR 206.436 to allow FEMA to 
extend the Hazard Mitigation Grant Program's application time period 
and reopen it in limited circumstances. The revised regulations will 
remove barriers to allow additional applications by State, local, 
Tribal and territorial governments to be considered. These changes are 
strictly administrative and will not result in any change in 
environmental effect in the current regulations. Therefore, it clearly 
fits within categorical exclusion A3 in Appendix A of the Instruction 
Manual.
    The rule meets the second condition that it is not a piece of a 
larger action. The regulatory application period that is being altered 
in this rulemaking only applies to HMGP and will not affect any other 
FEMA programs. The rule also meets the third condition because no 
extraordinary circumstances exist. Accordingly, this rule is 
categorically excluded and no further NEPA analysis or documentation is 
required.

[[Page 66253]]

L. Endangered Species Act

    Section (7)(a)(2) of the Endangered Species Act mandates that each 
Federal agency shall, in consultation with and with the assistance of 
the National Marine Fisheries (NMFS) or United States Fish and Wildlife 
(USFWS), collectively known as the ``Services,'' insure that any action 
authorized, funded, or carried out by such agency is not likely to 
jeopardize the continued existence of any endangered species or 
threatened species or result in the destruction or adverse modification 
of habitat of such species which is determined by the Services after 
consultation to be critical.
    To comply with Section 7(a)(2) of the ESA, for any action that FEMA 
proposes to carry out, fund, or authorize, FEMA must determine if its 
action may affect a listed species or its critical habitat. If the 
action may affect species or its critical habitat, then FEMA must make 
one of the following determinations with respect to the effect of the 
proposed action on listed species and critical habitat: (1) no effect 
(NE); (2) may affect but is not likely to adversely affect (NLAA); or 
(3) may affect and is likely to adversely affect (LAA).
    This rule has been evaluated by FEMA and due to the administrative 
nature, FEMA has determined the rule does not have the potential to 
affect federally-listed species or designated critical habitat. As 
such, a ``No Effect'' determination has been made for these activities. 
Per the ESA regulations, notification to, and consultation with, the 
U.S. Fish and Wildlife Service and/or the National Marine Fisheries 
Service are not required for activities with a ``No Effect'' 
determination. 50 CFR 402.

M. National Historic Preservation Act of 1966

    The National Historic Preservation Act (NHPA) (54 U.S.C. 300101, 
formerly 16 U.S.C. 470) was enacted in 1966, with various amendments 
throughout the years. Section 106 of the NHPA (54 U.S.C. 306108) 
requires Federal agencies to take into account the effect of their 
undertakings on any historic property. It mandates a consultation 
process in the early stages of project planning and must be completed 
prior to the approval of expenditure of any Federal funds for the 
undertaking. Subpart B of 36 CFR part 800 lays out a four-step Section 
106 process to fulfill this obligation: (1) initiate the process 
(800.3); (2) identify historic properties (800.4); (3) assess adverse 
effects (800.5); and (4) resolve adverse effects (800.6).
    Pursuant to section 106 of the NHPA and its implementing 
regulations at 36 CFR part 800, FEMA has determined that this rule does 
not have the potential to cause effects to historic properties and in 
accordance with 36 CFR 800.3(a)(1), and FEMA has no further obligations 
under section 106.

N. 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 in 44 CFR Part 206

    Administrative practice and procedure, Coastal zone, Community 
facilities, Disaster assistance, Fire prevention, Grant programs-
housing and community development, Housing, Insurance, 
Intergovernmental relations, Loan programs-housing and community 
development, Natural resources, Penalties, Reporting and recordkeeping 
requirements.
    For the reasons set forth in the preamble, the Federal Emergency 
Management Agency amends part 206 as follows:

PART 206--FEDERAL DISASTER ASSISTANCE

0
1. The authority citation for part 206 continues to read as follows:

    Authority: Robert T. Stafford Disaster Relief and Emergency 
Assistance Act, 42 U.S.C. 5121 through 5207; Homeland Security Act 
of 2002, 6 U.S.C. 101 et seq.; Department of Homeland Security 
Delegation 9001.1; sec. 1105, Pub. L. 113-2, 127 Stat. 43 (42 U.S.C. 
5189a note).

0
2. Amend Sec.  206.436 by:
0
a. In paragraph (d), removing the number ``12'' and adding in its place 
the number ``15'';
0
b. Revising paragraph (e);
0
c. Redesignating paragraphs (f) and (g) as paragraphs (g) and (h);
0
d. Adding new paragraph (f); and
0
e. Revising newly redesignated paragraph (g).
    The revisions and addition read as follows:


Sec.  206.436  Application procedures.

* * * * *
    (e) Extensions. Upon written request from the applicant, FEMA may 
extend the application submission timeline as follows:
    (1) The State may request the Regional Administrator to extend the 
application time limit by 30 to 120 day increments, not to exceed a 
total of 240 days. The applicant must include a justification in its 
request.
    (2) FEMA will only consider requests for extensions beyond 240 days 
for extenuating circumstances outside of the applicant's control. Such 
requests must be submitted to the Regional Administrator and must 
include justification. The Regional Administrator, in coordination with 
FEMA's Assistant Administrator for the Mitigation Directorate, may 
extend the application time limit for a reasonable amount of time based 
upon the extenuating circumstances.
    (f) Reopening of application period. FEMA's Assistant Administrator 
for the Mitigation Directorate may reopen a closed application period 
for up to 180 days in the following circumstances:
    (1) Recalculation of assistance. If FEMA approves a recalculation 
of assistance under Sec.  206.432 and an applicant requests to reopen 
the application period within 60 days of FEMA's recalculation approval.
    (2) Appeal. If FEMA grants an appeal under Sec.  206.440 for an 
application extension denial after an application period is closed.
    (g) FEMA approval. The applicant must submit its application and 
supplement(s) to the FEMA Regional Administrator for approval. FEMA has

[[Page 66254]]

final approval authority for funding of all projects.
* * * * *

Deanne Criswell,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2024-17909 Filed 8-14-24; 8:45 am]
BILLING CODE 9111-BW-P