Disaster Assistance; Redesign of Public Assistance Project Administration

FEDERAL EMERGENCY MANAGEMENT AGENCY

44 CFR Part 206

RIN 3067-AC89

Disaster Assistance; Redesign of Public Assistance Project

Administration

AGENCY: Federal Emergency Management Agency (FEMA).

ACTION: Interim final rule.

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SUMMARY: We have redesigned the Public Assistance Disaster Grant

Program to provide money to applicants more quickly and to make the

application process simpler than before. This rule reflects changes

needed to put the new Public Assistance Program into effect.

DATES: Effective Date: This rule is effective on November 20, 1998.

Comments: We invite your comments on the changes to the rule and

your recommendations for additional changes to it on or before January

4, 1999.

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

of the General Counsel, Federal Emergency Management Agency, room 840,

500 C Street SW., Washington, DC 20472, (telefax) (202) 646-4536, or

(email) [email protected].

FOR FURTHER INFORMATION CONTACT: Melissa M. Howard, Ph.D., Federal

Emergency Management Agency, room 713, 500 C Street SW., Washington DC

20472, (202) 646-4240, or (email) [email protected].

SUPPLEMENTARY INFORMATION:

What does the redesigned program do? The redesigned program

emphasizes better, more personal customer service, improved

communications, reallocated responsibilities, more efficient and

consistent program delivery, and a faster, simpler system for obtaining

funding than under our current regulations. As we announced in our

February 4, 1998 Federal Register notice, 63 FR 5804, we field tested

the new system from March 1, 1998 to August 31, 1998. While we are

making most of our improvements through internal changes to our

procedures, some of the improvements require

[[Page 64424]]

amendments to the governing regulations. This publication makes those

amendments.

What are the basic components of the public assistance grant

process? The grant process was redesigned around its four pillars:

People, Process, Policy and Performance.

People--The most important component of the redesigned program is

People. The success of the program depends on all the people involved

in the process, both those who apply for grants and those who are

responsible for awarding grants. People who understand the provisions

of the program and are willing to work cooperatively in disaster

recovery efforts speed the process and make the redesigned program

possible. Therefore, to ensure the highest level of professionalism and

skill among FEMA staff, we have committed ourselves to program-wide

training, to a credentials program, and to a greatly expanded program

for sharing information.

Process--We base the program on a partnership among FEMA, the

States and local officials. FEMA's role is to provide guidance early in

the recovery process, and in some cases, before the disaster occurs.

This is a change from our previous focus on inspection and enforcement.

In our new role we will provide more information about the program

before the disaster strikes and will provide more technical assistance

in the development of damage descriptions and cost estimates after the

disaster.

The States' role is essentially unchanged from the existing

program. As Grantee, the State remains responsible for administering

the Federal grant.

The role of local governments and eligible private nonprofit

organizations changes with their taking more control in meeting their

own needs and speeding their own recovery. For example, those

applicants who are able to do so may prepare damage descriptions and

cost estimates for small projects. We will continue to help other

applicants to prepare their damage descriptions and costs estimates.

Policy--The redesigned program does not change program eligibility,

but it does require changes to regulatory, policy and procedural

program documents. The changes streamline, simplify and clarify program

operations. They also make source documents readily available to those

applying for grants and to those who administer the grants.

Performance--The people, policies, and processes that form the

foundation of the redesigned program will enhance program performance.

Evaluation of that performance is an essential part of the redesigned

program.

Where can you find additional information? You can find additional

descriptive information on the redesigned program on our website

(http://www.fema.gov.). At our home page click on Disaster Assistance,

then click on Public Assistance, and choose from the menu under the

Public Assistance Program.

What changes are we making to the rule? Specific changes to the

regulations rename documents, define terms, adjust responsibilities,

and edit the rule in a way that we hope makes it easier to read and to

understand.

(1) Throughout the text, ``Disaster Survey Report'' or ``DSR'' is

renamed ``Project Worksheet.''

(2) We edited Sec. 206.200(b) to read more clearly than before.

(3) We redefined ``project'' in Sec. 206.201(i) to reflect our new

policy.

(4) In Sec. 206.202(b) we removed ``damage survey activities,''

because inspection teams will not exist as before. We also added

language about the States' roles in supporting large project

identification activities.

(5) In Sec. 206.202(c) we changed ``Notice of Interest'' to

``Request for Public Assistance.''

(6) We removed the requirement for a FEMA/State/local inspection

team in Sec. 206.202(d)(1), and changed the starting date of the ``60

day'' period from the date of the initial visit to the date of the

first substantive meeting.

(7) We state in Sec. 206.202(d)(2) that we will not approve a

Project Worksheet for less than $1,000 and we replace ``site'' with

``project.''

(8) In Sec. 206.202(e) we keep our obligation to explain any

delays, but remove the requirement for written explanation of any

delay.

(9) Because the applicant will now prepare the Project Worksheet

with possible help from the State, Sec. 206.228(a)(2) changes the

description of State's responsibility from ``* * * preparation of

damage survey reports * * *'' to ``* * * develop and validate Project

Worksheets * * *.''

(10) We anticipate that the form number assigned for the ``Damage

Survey Report'' (FEMA Form 90-91) will be used for the ``Project

Worksheet'' and that the form number assigned for the ``Notice of

Interest'' (FEMA Form 90-49) will be used for ``Request for

Assistance.'' If we assign new form numbers, we will make the change

when we publish the final rule.

Administrative Procedure Act Determination

We are publishing this interim final rule without opportunity for

prior public comment under the Administrative Procedure Act, 5 U.S.C.

553, having determined that a comment period would be unnecessary,

impractical, and contrary to the public interest. This interim final

rule does not contain any significant, substantive changes from

previous regulations, but reflects changes to internal procedures under

which we will process public assistance applications more quickly and

simply than before.

Procedures affecting public assistance applications remain

substantially unchanged. The procedural changes do not affect the

rights of applicants, and primarily affect how we will administer the

program. In order to implement the programs for assessments made for FY

1999 and beyond, we need to modify and publish its regulations. We

invite public comments on the interim final rule. We will take into

account any comments we receive when we publish the final rule.

As Director I determine that good cause exists and that it is in

the public interest to issue this interim final rule without

opportunity for prior public comment.

National Environmental Policy Act

Our regulations categorically exclude this rule from the

preparation of environmental impact statements and environmental

assessments as an administrative action in support of normal day-to-day

grant activities. We have not prepared an environmental assessment or

an environmental impact statement.

Regulatory Flexibility Act

We do not expect this rule (1) to affect adversely the availability

of disaster assistance funding to small entities, (2) to have

significant secondary or incidental effects on a substantial number of

small entities, or (3) to create any additional burden on small

entities.

As Director I certify that this rule is not a major rule under

Executive Order 12291 and that the rule will not have significant

impact on a substantial number of small entities within the meaning of

the Regulatory Flexibility Act.

Paperwork Reduction Act

This rule does not involve any collection of information for the

purposes of the Paperwork Reduction Act.

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Executive Order 12612, Federalism

In publishing this rule, we considered the President's Executive

Order 12612 on Federalism. This rule makes no changes in the division

of governmental responsibilities between the Federal government and the

States. Grant administration procedures under 44 CFR Part 13, Uniform

Administrative Requirements for Grants and Cooperative Agreements to

State and Local Governments, remain the same. We have not prepared a

Federalism assessment.

Executive Order 12778, Civil Justice Reform

This rule meets the applicable standards of section 2(b)(2) of

Executive Order 12778, Civil Justice Reform, dated October 25, 1991, 3

CFR, 1991 Comp., p. 359.

Congressional Review of Agency Rulemaking

We have sent this final rule to the Congress and to the General

Accounting Office under the Congressional Review of Agency Rulemaking

Act, 5 U.S.C. 801 et seq. The rule is not a ``major rule'' within the

meaning of that Act. It does not result in nor is it likely to result

in 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. 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.

This final rule is exempt (1) from the requirements of the

Regulatory Flexibility Act, as certified previously, and (2) from the

Paperwork Reduction Act.

This rule is not an unfunded Federal mandate within the meaning of

the Unfunded Mandates Reform Act of 1995, Pub. L.104-4. The rule does

not meet the $100,000,000 threshold of that Act, and any enforceable

duties are imposed as a condition of Federal assistance or a duty

arising from participation in a voluntary Federal program.

List of Subjects in 44 CFR Part 206

Disaster assistance, Public assistance.

Accordingly, 44 CFR part 206 is amended as follows:

PART 206--[AMENDED]

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

follows:

Authority: The Robert T. Stafford Disaster Relief and Emergency

Assistance Act, 42 U.S.C. 5121 et seq.; Reorganization Plan No. 3 of

1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 44 FR

19367, 3 CFR, 1979 Comp., p. 376; E.O. 12148, 44 FR 43239, 3 CFR,

1979 Comp., p. 412; and E.O. 12673, 54 FR 12571, 3 CFR, 1989 Comp.,

p. 214.

2. Revise Sec. 206.200(b) to read as follows:

Sec. 206.200 General.

* * * * *

(b) What policies apply to FEMA public assistance grants? (1) The

Stafford Act requires that we deliver eligible assistance as quickly

and efficiently as possible consistent with Federal laws and

regulations. We expect you, as State Grantee, to adhere to Stafford Act

requirements and to the regulations in this part when you administer

our public assistance grants.

(2) The regulations entitled ``Uniform Requirements for Grants and

Cooperative Agreements to State and Local Governments,'' published at

44 CFR part 13, place requirements on you and give you discretion to

administer federal programs under your own procedures. We expect you,

as State grantee, to:

(i) Inform subgrantees about the status of their applications,

including notifications of our approvals of Project Worksheets and our

estimates of when we will make payments;

(ii) Pay the full amounts due to subgrantees as soon as practicable

after we approve payment, including your State contribution required in

the FEMA-State Agreement; and

(iii) Pay your State contribution consistent with State laws.

3. Revise the definitions of project and project approval in

Sec. 206.201(i) and (j) to read as follows:

Sec. 206.201 Definitions.

* * * * *

(i) A project is a logical grouping of work required as a result of

the declared major disaster or emergency.

(1) We must approve a scope of eligible work and an itemized cost

estimate before funding a project.

(2) A project may include eligible work at several sites.

(j) Project approval means the process in which the Regional

Director, or designee, reviews and signs an approval of work and costs

on a Project Worksheet or on a batch of Project Worksheets. Such

approval is also an obligation of funds to the Grantee.

* * * * *

4. Revise Sec. 206.202 to read as follows:

Sec. 206.202 Application procedures.

(a) General. This section describes the policies and procedures we

use to process public assistance grants to States. Under this section

you, the State, are the Grantee. As Grantee you are responsible for

processing subgrants to applicants under 44 CFR parts 13, 14, and 206,

and under your own policies and procedures.

(b) Grantee. You are the grant administrator for all funds provided

under the Public Assistance grant program. Your responsibilities under

this section include:

(1) Providing technical advice and assistance to eligible

subgrantees;

(2) Providing State support for project identification activities;

(3) Ensuring that all potential applicants are aware of available

public assistance; and

(4) Submitting documents necessary for the award of grants.

(c) Request for public assistance (Request). You, the Grantee, must

send a completed Request (FEMA Form 90-49) to the Regional Director for

each applicant who requests public assistance. You must send Requests

to the Regional Director within 30 days after designation of the area

where the damage occurred.

(d) Project Worksheets. (1) An applicant's authorized local

representative is responsible for representing the applicant and for

ensuring that the applicant has identified all eligible work and

submitted all costs for disaster-related damages for funding.

(i) We or the applicant will prepare a Project Worksheet (FEMA Form

90-91) for each project. The Project Worksheet must identify the

eligible scope of work and must include a quantitative estimate for the

eligible work.

(ii) The applicant will have 60 days following its first meeting

with us to identify and to report damage to us.

(2) When the estimated cost of work on a project is less than

$1,000, that work is not eligible and we will not approve a Project

Worksheet for the project. Periodically we will review this minimum

approval amount for a Project Worksheet and, if needed, will adjust the

amount by regulation.

(e) Grant approval. (1) When the applicant submits the Project

Worksheets, we will have 45 days to obligate Federal funds. If we have

a delay beyond 45 days we will explain the delay to you.

(2) Before we obligate any funds you, the Grantee, must complete

and send to the Regional Director a Standard Form (SF) 424, Application

for Federal Assistance, and an SF 424D, Assurances

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for Construction Programs. After we receive the SF 424 and SF 424D, the

Regional Director will obligate funds to you based on the approved

Project Worksheets. You will then approve subgrants based on the

Project Worksheets approved for each applicant.

5. Revise Sec. 206.228(a)(2)(i) to read as follows:

Sec. 206.228 Allowable costs.

* * * * *

(a) * * *

(1) * * *

(2) Statutory Administrative Costs--(i) Grantee. Under section

406(f)(2) of the Stafford Act, we will pay you, the State, an allowance

to cover the extraordinary costs that you incur to develop and validate

Project Worksheets, to prepare final inspection reports, project

applications, final audits, and to make related field inspections by

State employees. Eligible costs include overtime pay and per diem and

travel expenses, but do not include regular time for your State

employees. The allowance to you will be based on the following

percentages of the total amount of Federal assistance that we provide

for all subgrantees in the State under sections 403, 406, 407, 502, and

503 of the Act:

* * * * *

Dated: November 13, 1998.

James L. Witt,

Director.

[FR Doc. 98-31044 Filed 11-19-98; 8:45 am]

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