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

Published date12 February 2020
Citation85 FR 7902
Record Number2020-02510
SectionProposed rules
CourtFederal Emergency Management Agency
Federal Register, Volume 85 Issue 29 (Wednesday, February 12, 2020)
[Federal Register Volume 85, Number 29 (Wednesday, February 12, 2020)]
                [Proposed Rules]
                [Pages 7902-7909]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-02510]
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                DEPARTMENT OF HOMELAND SECURITY
                Federal Emergency Management Agency
                44 CFR Parts 59 and 64
                [Docket ID FEMA-2019-0016]
                RIN 1660-AA92
                Revisions to Publication Requirements for Community Eligibility
                Status Information Under the National Flood Insurance Program
                AGENCY: Federal Emergency Management Agency, DHS.
                ACTION: Notice of proposed rulemaking.
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                SUMMARY: The Federal Emergency Management Agency (FEMA) proposes to
                make two changes to its regulations regarding publication requirements
                of community eligibility status information under the National Flood
                Insurance Program (NFIP). First, FEMA proposes to replace outdated
                regulations that require publication of community loss of eligibility
                notices in the Federal Register with a requirement that FEMA publish
                this information on the internet or by another comparable method.
                Second, FEMA proposes to replace its requirement that FEMA maintain a
                list of communities eligible for flood insurance in the Code of Federal
                Regulations with a requirement that FEMA publish this list on the
                internet or by another comparable method.
                DATES: Comments must be received on or before April 13, 2020.
                ADDRESSES: You may submit comments, identified by Docket ID FEMA-2019-
                0016, by one of the following methods:
                 Federal eRulemaking Portal: http://www.regulations.gov. Follow the
                instructions for submitting comments.
                 Mail/Hand Delivery/Courier: Regulatory Affairs Division, Office of
                Chief Counsel, Federal Emergency Management Agency, 8NE, 500 C Street
                SW, Washington, DC 20472.
                FOR FURTHER INFORMATION CONTACT: Adrienne Sheldon, Supervisory
                Emergency Management Specialist, Floodplain Management Division,
                Federal Insurance & Mitigation Administration, Federal Emergency
                Management Agency, 400 C Street SW, Washington, DC 20472, 202-212-3966,
                or (email) [email protected].
                SUPPLEMENTARY INFORMATION:
                I. Public Participation
                 We encourage you to participate in this rulemaking by submitting
                [[Page 7903]]
                comments and related materials. We will consider all comments and
                material received during the comment period.
                 If you submit a comment, identify the agency name and the docket ID
                for this rulemaking, indicate the specific section of this document to
                which each comment applies, and give the reason for each comment. You
                may submit your comments and material by electronic means, mail, or
                delivery to the address under the ADDRESSES section. Please submit your
                comments and material by only one means.
                 Regardless of the method used for submitting comments or material,
                all submissions will be posted, without change, to the Federal e-
                Rulemaking Portal at http://www.regulations.gov, and will include any
                personal information you provide. Therefore, submitting this
                information makes it public. You may wish to read the Privacy and
                Security Notice that is available via a link on the homepage of
                www.regulations.gov.
                 Viewing comments and documents: For access to the docket to read
                background documents or comments received, go to the Federal e-
                Rulemaking Portal at http://www.regulations.gov. Background documents
                and submitted comments may also be inspected at FEMA, Office of Chief
                Counsel, 500 C Street SW, Washington, DC 20472-3100.
                 Public Meeting: We do not plan to hold a public meeting, but you
                may submit a request for one at the address under the ADDRESSES section
                explaining why one would be beneficial. If FEMA determines that a
                public meeting would aid this rulemaking, it will hold one at a time
                and place announced by a notice in the Federal Register.
                II. Background
                 The National Flood Insurance Act of 1968, as amended (NFIA), Title
                42 of the United States Code (U.S.C.) 4001 et seq., authorizes the
                Administrator of FEMA to establish and carry out a National Flood
                Insurance Program (NFIP) to enable interested persons to purchase
                insurance against loss resulting from physical damage to or loss of
                property arising from floods in the United States.\1\ Under the NFIA,
                FEMA may only grant flood insurance to properties within communities
                that have adopted adequate land use and control measures.\2\ The
                statute authorizes FEMA to develop land use criteria consistent with
                requirements laid out in the NFIA and to encourage the adoption and
                enforcement of State and local measures implementing these criteria.\3\
                FEMA regulations governing community eligibility for participation in
                the NFIP are located at 44 CFR parts 59, 60, and 64.
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                 \1\ See 42 U.S.C. 4011(a).
                 \2\ See 42 U.S.C. 4022(a)(1).
                 \3\ See 42 U.S.C. 4102(c).
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                 NFIP regulations at 44 CFR 60.3, 60.4, and 60.5 contain community
                eligibility requirements for flood insurance. If a community fails to
                demonstrate to FEMA that it meets these requirements, or decides to
                withdraw from the NFIP, FEMA may initiate probation, suspension, or
                withdrawal procedures as described in 44 CFR 59.24. In the case of an
                unintentional loss of eligibility, for instance if a community is
                suspended for failing to enforce its floodplain regulations, FEMA
                notifies the community of the upcoming loss directly and gives the
                community an opportunity to correct the deficiency that triggered the
                procedures. In cases of both intentional and unintentional loss of
                eligibility, FEMA publishes a notice of the upcoming loss of
                eligibility in the Federal Register as required by 44 CFR 59.24.
                 NFIP regulations at 44 CFR 64.6 state that flood insurance under
                the NFIP is authorized for the communities set forth under Section 64.6
                of the regulations. Due to the large number of communities eligible for
                flood insurance and the relative frequency to changes to community
                eligibility, maintaining a list of communities in FEMA's regulations is
                not feasible; however, FEMA meets this requirement by publishing the
                updated list of communities through periodic final rules in the Federal
                Register. As explained in more detail below, FEMA last published an
                updated list in the Federal Register in August 2006.
                III. Proposed Rule: Section 59.24 Community Loss of Eligibility Notices
                and Section 64.6 List of Communities Eligible for Flood Insurance
                 FEMA proposes to make two changes to these regulations to reduce
                costs and streamline notice procedures. First, FEMA proposes to remove
                the requirement contained in 44 CFR 59.24(a), (c), (d), and (e) that
                community loss of eligibility notices be published in the Federal
                Register, and add a requirement that FEMA publish the notices on the
                internet or by another comparable method. Second, FEMA proposes to
                revise 44 CFR 64.6 to remove the requirement that FEMA maintain a list
                of communities eligible for flood insurance under the NFIA in the CFR.
                Instead, the proposed revision would require publication and
                maintenance of the list on the internet or through another comparable
                method. These proposed changes would not impact the other notification
                requirements found in 44 CFR 59.24. For example, in cases of
                involuntary loss of eligibility, FEMA provides a minimum of three
                written notices to a community's chief executive officer or other
                designee over a several month period prior to the anticipated loss of
                eligibility, and provides the community with an opportunity to correct
                the defect. No substantive right of communities or stakeholders would
                be impacted by this change.
                 The proposed changes are consistent with the NFIA. The NFIA directs
                FEMA to certify communities for receipt of flood insurance under the
                NFIP \4\ and lays out standards for land management,\5\ but leaves
                community certification and decertification procedures, as well as
                notification procedures, to FEMA's discretion. Consequently, these
                proposed changes do not conflict with the NFIA.
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                 \4\ See 42 U.S.C. 4022(a)(1).
                 \5\ See 42 U.S.C. 4102(c).
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                 Sections Sec. 59.24 and Sec. 64.6 are outdated, and were
                promulgated prior to the widespread use of the internet. FEMA initially
                adopted the Federal Register publication requirement contained in Sec.
                59.24 in 1971.\6\ Similarly, in 1971 FEMA substantially adopted the
                requirement in Sec. 64.6 to maintain and publish the list of eligible
                communities,\7\ with the current language adopted in 1976.\8\
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                 \6\ See 36 FR 18,175 and 18,179, discussing community loss of
                eligibility procedures, then located at 24 CFR 1909.24. At 18,175,
                the rulemaking notes that: ``A new Sec. 1909.24 has been added to
                clarify the manner in which suspensions of flood insurance
                eligibility will be handled . . .'' No further explanation is
                provided, and loss of eligibility is not addressed in the associated
                notice of proposed rulemaking, located at 36 FR 11,109.
                 \7\ See 36 FR 24,768, Sec. 1914.4.
                 \8\ See 41 FR 46,987, Sec. 1914.6.
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                Section 59.24
                 Publishing the community loss of eligibility notices
                electronically, in conjunction with the Community Status Book, would
                increase the public visibility and accessibility of these notices, as
                it is easier for the public to access the eligibility notices in a
                single electronic format than it is for the public to find a Federal
                Register notice specific to a particular community. In addition,
                publishing community loss of eligibility notices in the Federal
                Register requires FEMA to expend additional financial resources
                compared to publication in an electronic format. Removing this
                requirement will provide cost savings to the agency.
                [[Page 7904]]
                 If these proposed regulatory changes are adopted, FEMA plans to
                store the notices on its website, so that they are easily available to
                all interested parties. Although FEMA has not yet created a digital
                repository to store these notices, FEMA anticipates making a link to
                these notices that is easily accessible from the Community Status Book.
                FEMA's objective in the digital accessibility of these notices is to
                make the notices easy for users to find, and FEMA welcomes suggestions
                from the public on the best place on its website to house this database
                of community eligibility notices.
                 FEMA proposes to store notices on its public facing website for a
                minimum of 1 year after the notices are issued. FEMA welcomes input
                from the public on whether a year is sufficient, or if a longer time-
                period would be beneficial. After removal from FEMA's public-facing
                website, FEMA will retain copies of the notices in accordance with all
                statutory and regulatory requirements.
                Section 64.6
                 Section 64.6 directs FEMA to maintain a list of communities
                eligible for flood insurance under the NFIA in the CFR. FEMA maintains
                an online Community Status Book containing this information. The
                Community Status Book provides a list of which communities are, and are
                not, eligible for flood insurance under the NFIP. The Community Status
                Book is available for public viewing on the FEMA website at https://www.fema.gov/national-flood-insurance-program-community-status-book.
                The Community Status Book is organized alphabetically by state and
                community, so a stakeholder can easily identify the eligibility status
                of his or her community. Because the information directed by Sec. 64.6
                is already being published in the Community Status Book, the separate
                list directed by Sec. 64.6 is duplicative and thus no longer needed.
                 FEMA has not updated the eligible community list, as directed by
                Sec. 64.6, since August 28, 2006 \9\ because of the list's overlap
                with the Community Status Book and the cost of publishing the updated
                lists in the Federal Register. Instead, in an effort to comply with
                Sec. 64.6, FEMA generates quarterly reports identifying changes to the
                list of eligible communities. These quarterly reports are available
                upon stakeholder request, but are not otherwise published. FEMA
                generates these reports each quarter in order to partially comply with
                Federal Register publication requirements. Generating these reports
                requires FEMA to take the information contained in each notice and re-
                format and consolidate the content into one list. Moving the list
                updates fully online would eliminate the time and effort associated
                with generating these reports, yielding cost savings for FEMA. FEMA
                proposes to revise Sec. 64.6 to require that the agency publish and
                maintain community eligibility information on the internet or through
                another comparable method, as is currently being done through the
                Community Status Book, because full compliance with Sec. 64.6 would be
                burdensome to the agency and would not provide additional community
                eligibility status information beyond what is currently maintained in
                the Community Status Book.
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                 \9\ The last update to Sec. 64.6 in the Federal Register was
                published on August 28, 2006. See 71 FR 50,856. Updates were made
                regularly until that point in time, with several updates being
                published each year.
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                Transition
                 To aid in the transition to the new form of publication, FEMA would
                publish brief notices once a month in the Federal Register for 6 months
                after the effective date of the final rule, alerting stakeholders to
                the change, and letting them know where to go to access community
                status information.
                IV. Regulatory Analysis
                A. Executive Order 12866, Regulatory Planning and Review, Executive
                Order 13563, Improving Regulation and Regulatory Review, and Executive
                Order 13771, Reducing Regulation and Controlling Regulatory Costs
                 Executive Orders 13563 (``Improving Regulation and Regulatory
                Review'') and 12866 (``Regulatory Planning and Review'') direct
                agencies to assess the costs and benefits of available regulatory
                alternatives and, if regulation is necessary, to select regulatory
                approaches that maximize net benefits (including potential economic,
                environmental, public health and safety effects, distributive impacts,
                and equity). Executive Order 13563 emphasizes the importance of
                quantifying both costs and benefits, of reducing costs, of harmonizing
                rules, and of promoting flexibility. Executive Order 13771 (``Reducing
                Regulation and Controlling Regulatory Costs'') directs agencies to
                reduce regulation and control regulatory costs and provides that ``for
                every one new regulation issued, at least two prior regulations be
                identified for elimination, and that the cost of planned regulations be
                prudently managed and controlled through a budgeting process.''
                 The Office of Management and Budget (OMB) has not designated this
                rule a ``significant regulatory action'' under section 3(f) of
                Executive Order 12866. Accordingly, the rule has not been reviewed by
                OMB.
                1. Need for Regulatory Action
                 Under the NFIA, FEMA may only grant flood insurance to properties
                within communities that have adopted adequate land use and control
                measures.\10\ Pursuant to this statutory direction, FEMA has adopted
                regulations governing community eligibility for participation in the
                NFIP at 44 CFR parts 59, 60, and 64. These regulations include
                requirements that a community follow certain steps to retain
                eligibility for the NFIP. If a community fails to follow these
                requirements or decides to withdraw from the NFIP, FEMA initiates loss
                of eligibility procedures as described in 44 CFR 59.24 and publishes a
                notice of the upcoming loss of eligibility in the Federal Register. In
                addition, 44 CFR 64.6 states that flood insurance under the NFIP is
                authorized for communities set forth under Section 64.6 of the
                regulations, requiring FEMA to maintain a list of eligible communities
                in the CFR. FEMA proposes to make two changes to the current
                regulations.
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                 \10\ See 42 U.S.C. 4022(a)(1).
                ---------------------------------------------------------------------------
                 First, FEMA proposes to remove the requirement pursuant to Sec.
                59.24(a), (c), (d), and (e) to publish community loss of eligibility
                notices in the Federal Register. In lieu of publication in the Federal
                Register, the proposed rule would require that these notices be
                published on the internet or by another comparable method. To aid in
                the transition, FEMA would publish brief notices once a month in the
                Federal Register for 6 months after the effective date of the final
                rule, alerting stakeholders to the change.
                 Second, FEMA proposes to remove the requirement pursuant to Sec.
                64.6 that FEMA maintain a list of eligible communities in the CFR. In
                lieu of this requirement, the proposed rule would require FEMA to
                publish and maintain a list of eligible communities on the internet or
                through another comparable method.
                 These two proposed changes would result in reduced FEMA
                expenditures. The proposed changes to Sec. 59.24 would also provide
                faster and more user-friendly access to community loss of eligibility
                information by requiring publication of the notices online instead of
                in the Federal Register. In addition, these changes would direct FEMA
                to consolidate community status
                [[Page 7905]]
                information into one location, allowing stakeholders to have more
                streamlined access to community status-related information.
                2. Baseline
                Requirement to Publish Community Loss of Eligibility Notices in the
                Federal Register
                 Community loss of eligibility notices were published a total of 245
                times in the Federal Register from 2007 to 2016. Based on data from
                these notices, FEMA calculates that on average, from 2007 to 2016, the
                notices were published about 25 times per year, rounded to the nearest
                whole number (245 divided by 10 = 24.5. 24.5 rounded to the nearest
                whole number = 25).
                Requirement to Publish the List of Eligible Communities in the CFR
                 With respect to the requirement for FEMA to maintain a list of
                eligible communities in the CFR, FEMA notes that it currently maintains
                this list online in the Community Status Book rather than in the
                CFR.\11\ In addition, FEMA prepares quarterly reports in an attempt to
                comply with the publication requirement contained in Sec. 64.6. The
                quarterly preparation burden is approximately 15 hours per quarter at a
                cost of $80 per hour, for a total of $4,800 each year (15 x 80 x
                4).\12\ FEMA has not published the quarterly reports in the CFR since
                2006 due to the recurring costs involved.
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                 \11\ The Community Status Book is available for public viewing
                at https://www.fema.gov/national-flood-insurance-program-community-status-book.
                 \12\ Hourly rates derived from FEMA estimates based on prior
                contracting benchmarks for this service.
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                3. Costs
                Community Loss of Eligibility Notices: internet Publication Costs
                 As a substitute for publishing the required community loss of
                eligibility notices in the Federal Register, the proposed rulemaking
                would require FEMA to publish community loss of eligibility notices
                online. FEMA currently maintains a public website (www.fema.gov) where
                similar notices, bulletins, and updates from across the agency are
                published for public consumption. While there is no direct cost to
                adding individual web pages or sections to the site, publishing
                community loss of eligibility notices online would create labor costs
                for staff who would need to develop a template to format and process
                the notices for web publication.
                 FEMA plans an upcoming website re-design that would include more
                versatile search functionality for the user, a more standardized look
                and feel, increased search engine optimization, and better capture of
                meta data. FEMA anticipates the use of this re-design in the analysis
                of this proposed rulemaking. Development of this publication process
                for online notices will be labor intensive at the beginning. Once a
                template is created, each update will be less labor intensive than the
                current practice.
                 FEMA staff expect it would take approximately 3 days of labor (24
                hours) of a General Schedule (GS) Federal employee in the National
                Capital Region, at the GS-14 level ($53.68 hourly wage),\13\ to
                establish the publication process under the expected redesign. After
                the publication process is established, FEMA anticipates that it would
                take a GS-14 employee approximately thirty minutes per future
                publication.
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                 \13\ Office of Personnel Management, 2017, Washington-Baltimore-
                Arlington-DC-MD-VA-WV-PA, Hourly Rate, GS-14, Step 1. Available at
                https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/17Tables/html/DCB_h.aspx.
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                 The average 25 notices per year would result in a burden to FEMA of
                $2,860.61 the first year (($53.68 x 1.46) \14\ x (24 + (0.5 x 25))) and
                $979.66 each subsequent year (($53.68 x 1.46) x (0.5 x 25)) for a 10-
                year total of $11,677.55 (1).
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                 \14\ Bureau of Labor Statistics, Employer Costs for Employee
                Compensation, March, 2017, Table 1 Employer costs per hour worked
                for employee compensation and costs as a percent of total
                compensation: Civilian workers, by major occupational and industry
                group. Available at https://www.bls.gov/news.release/archives/ecec_06092017.pdf. The per hour benefits multiplier is calculated by
                dividing total compensation for all workers ($35.28) by wages and
                salaries for all workers ($24.10), which yields a per hour benefits
                multiplierof 1.46. ($35.28 / $24.10 = 1.4639). Fully-loaded wage
                rates are calculated by multiplying the per hour benefits multiplier
                by the applicable wage rate (1.46 per hour benefits multiplier x
                $53.68 hourly wage rate = $78.37 fully-loaded hourly wage).
                 Table 1--Internet Publication Costs
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                 Initial internet Recurrent internet
                 Year publication burden publication burden Internet
                 (hours) (hours) publication cost
                 (a) (b) (= 0.25 x 25) (c) = (a x b) x
                 ($59.91 x 1.46)
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                1................................................... 24 12.5 $2,861
                2................................................... .................. 12.5 980
                3................................................... .................. 12.5 980
                4................................................... .................. 12.5 980
                5................................................... .................. 12.5 980
                6................................................... .................. 12.5 980
                7................................................... .................. 12.5 980
                8................................................... .................. 12.5 980
                9................................................... .................. 12.5 980
                10.................................................. .................. 12.5 980
                 -----------------------------------------------------------
                 Total........................................... 24 12.5 11,678
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                Community Loss of Eligibility Notices: Transition/Phase-Out Costs
                 Upon the issuance of the final rule, FEMA would aid in the
                transition from the publication of community loss of eligibility
                notices in the Federal Register to their posting on FEMA's website by
                publication of transitional announcements in the Federal Register.
                These announcements would alert stakeholders of the new location of
                these notices and they would be concise and tailored to notify
                stakeholders of the FEMA web address where the
                [[Page 7906]]
                community loss of eligibility notices can be found. FEMA expects these
                transitional announcements to publish once a month for a 6-month phase-
                out period following the effective date of the rule.
                Community Status Report: Cost Savings
                 FEMA proposes to remove the requirement pursuant to Sec. 64.6 that
                FEMA maintain an updated list of eligible communities in the CFR. FEMA
                does not currently publish updates to the list of communities eligible
                for flood insurance in the CFR and already maintains an online
                Community Status Book containing this information.\15\ FEMA prepares
                quarterly reports on the current lists of communities in an attempt to
                comply with the regulation. These reports are available upon
                stakeholder request, although they are not published. Modifying the
                regulations to eliminate the requirement to publish the list in the CFR
                in favor of the list already maintained on FEMA's website (the
                Community Status Book) would eliminate preparation of these lists and
                save the quarterly preparation burden of approximately 15 hours per
                quarter at $80 per hour,\16\ yielding a cost savings of $4,800 ($80 x
                15 x 4) annually. This revision would save FEMA costs without affecting
                policyholders or other stakeholders.
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                 \15\ The Community Status Book is available for public viewing
                at https://www.fema.gov/national-flood-insurance-program-community-status-book.
                 \16\ Hourly rates derived from FEMA estimates based on prior
                contracting benchmarks for this service.
                 Table 2--Net Cost Savings
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                 Internet Community
                 Year publication status report Net cost NPV at 3% NPV at 7%
                 cost cost savings savings
                ----------------------------------------------------------------------------------------------------------------
                1............................... $2,861 - $4,800 - $1,939 - $1,883 - $1,813
                2............................... 980 -4,800 -3,820 -3,601 -3,337
                 3.............................. 980 -4,800 -3,820 -3,496 -3,119
                 4.............................. 980 -4,800 -3,820 -3,394 -2,915
                 5.............................. 980 -4,800 -3,820 -3,295 -2,724
                 6.............................. 980 -4,800 -3,820 -3,199 -2,546
                 7.............................. 980 -4,800 -3,820 -3,106 -2,379
                 8.............................. 980 -4,800 -3,820 -3,016 -2,223
                 9.............................. 980 -4,800 -3,820 -2,928 -2,078
                 10............................. $980 -4,800 -3,820 -2,843 -1,942
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                 Total....................... 11,678 -48,000 -36,322 -30,762 -25,075
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                 Annualized................. .............. .............. .............. -3,606 -3,570
                ----------------------------------------------------------------------------------------------------------------
                 The net cost savings expected from this rulemaking are presented in
                2. The up-front transition costs are only expected to take place in
                Year 1, thus the cost savings expected over the subsequent years are
                not impacted. For the 10-year period analyzed, the estimated quantified
                discounted total cost savings at 7 and 3 percent are $25,075
                (annualized at $3,570) and $30,762 (annualized at $3,606),
                respectively.
                4. Benefits
                 Revising 59.24 to eliminate the Federal Register publication
                requirements would allow FEMA to be more agile and timely in updating
                community status information. In contrast, continued updates through
                the Federal Register would be slower, more expensive to FEMA, and
                present the information in a format that is less accessible to
                stakeholders.
                 In addition, making this change to 59.24, and updating FEMA's
                regulations in 64.6, would locate all information related to community
                status and eligibility for flood insurance in one place that is well
                known by stakeholders. This consolidation would improve the ease and
                efficiency of locating community status and eligibility information for
                stakeholders and for FEMA.
                5. Transfers
                 Transfer payments are monetary payments from one group to another
                that do not affect total resources available to society. There are no
                anticipated transfer payments resulting from the proposed rulemaking.
                B. Regulatory Flexibility Act
                 The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.) and
                Executive Order 13272 (67 FR 53461; August 16, 2002) require agency
                review of proposed and final rules to assess their impact on small
                entities. An agency must prepare an initial regulatory flexibility
                analysis (IRFA) unless it determines and certifies that a rule, if
                promulgated, would not have a significant economic impact on a
                substantial number of small entities. FEMA does not believe this
                proposed rule would have a significant economic impact on a substantial
                number of small entities. Nonetheless, FEMA is publishing this IRFA to
                aid the public in commenting on the potential small entity impacts of
                the proposed requirements in this NPRM. FEMA invites all interested
                parties to submit data and information regarding the potential direct
                costs on small entities that would result from the adoption of this
                NPRM. FEMA will consider all comments received in the public comment
                process.
                 The Regulatory Flexibility Act requires an IRFA to contain certain
                analyses. First, an IRFA describes the reasons why the action by the
                agency is being considered. Second, it must succinctly state the
                objectives of, and legal basis for, the proposed rule. Third, it must
                describe--and, where feasible, estimate the number--of small entities
                to which the proposed rule would apply. Fourth, it must describe the
                projected reporting, record keeping, and other compliance requirements
                of the proposed rule, including an estimate of the classes of small
                entities that will be subject to the requirements and the types of
                professional skills necessary for preparation of the report or record.
                Fifth, it must identify, to the extent practicable, all relevant
                Federal rules that may duplicate, overlap, or conflict with the
                proposed rule. Lastly, it must
                [[Page 7907]]
                describe significant alternatives to the rule.
                1. A Description of the Reasons Why Action by the Agency Is Being
                Considered
                 FEMA proposes to remove the Federal Register publication
                requirement from Sec. 59.24, and instead require that these notices be
                published on the internet or by another comparable method. In addition,
                FEMA proposes to modify Sec. 64.6 to require FEMA to publish and
                maintain a list of eligible communities online or through another
                comparable method. These changes would result in reduced FEMA
                expenditures and provide faster and more user-friendly publications.
                2. A Succinct Statement of the Objectives of, and Legal Basis for, the
                Proposed Rule
                 The National Flood Insurance Act of 1968, as amended (NFIA), Title
                42 of the United States Code (U.S.C.) 4001 et seq., authorizes the
                Administrator of the Federal Emergency Management Agency (FEMA) to
                establish and carry out a National Flood Insurance Program (NFIP) to
                enable interested persons to purchase insurance against loss resulting
                from physical damage to or loss of property arising from floods in the
                United States.\17\ Under the NFIA, FEMA may only grant flood insurance
                to properties within communities that have adopted adequate land use
                and control measures.\18\ The statute gives the FEMA Administrator
                authority to develop land use criteria consistent with requirements
                laid out in NFIA and to encourage the adoption and enforcement of State
                and local measures implementing these criteria.\19\ Pursuant to this
                statutory direction, FEMA has adopted regulations governing community
                eligibility for participation in the NFIP at 44 CFR parts 59 and 60,
                and 64.
                ---------------------------------------------------------------------------
                 \17\ See 42 U.S.C. 4011(a).
                 \18\ See 42 U.S.C. 4022(a)(1).
                 \19\ See 42 U.S.C. 4102(c).
                ---------------------------------------------------------------------------
                 FEMA proposes to make two changes to regulations to cut costs for
                FEMA and streamline notice procedures. First, FEMA proposes to remove
                the requirement from Sec. 59.24 that notices regarding loss of
                eligibility be published in the Federal Register, and instead proposes
                requiring that theses notices be published on the internet or through
                another comparable method. Second, FEMA proposes to revise Sec. 64.6,
                which directs FEMA to maintain a list of eligible communities in the
                CFR and proposes that FEMA instead publish and maintain a list of
                eligible communities online or through another comparable method. This
                proposed rule would not impact other forms of notice to communities,
                nor would it impact the substantive rights of communities or
                stakeholders.
                3. A Description of and, Where Feasible, an Estimate of the Number of
                Small Entities to Which the Proposed Rule Will Apply
                 ``Small entity'' is defined in 5 U.S.C. 601. The term ``small
                entity'' can have the same meaning as the terms ``small business,''
                ``small organization'' and ``small governmental jurisdiction.'' Section
                601(3) defines a ``small business'' as having the same meaning as
                ``small business concern'' under Section 3 of the Small Business Act.
                This includes any small business concern that is independently owned
                and operated and is not dominant in its field of operation. Section
                601(4) defines a ``small organization'' as any not-for-profit
                enterprises that are independently owned and operated and are not
                dominant in their field of operation. Section 601(5) defines ``small
                governmental jurisdictions'' as governments of cities, counties, towns,
                townships, villages, school districts, or special districts with a
                population of less than 50,000.
                 This rule does not directly regulate any small entities. As
                previously described, this rule only changes how FEMA shares loss of
                community eligibility notices and community status information. FEMA
                used the US Census Bureau's 2012 Census of Government \20\ to estimate
                the number of small governmental jurisdictions in the United States.
                According to the U.S. Census, there are 38,910 jurisdictions consisting
                of counties, municipalities and townships within the United States.
                Among these, 37,132 would qualify as small governmental jurisdictions,
                which would equate to a 95.4 percent of all U.S. governmental
                jurisdictions. Applying this percentage to the 22,269 communities
                currently participating in the National Flood Insurance Program (NFIP)
                \21\ results in an estimated 21,245 small governmental
                jurisdictions.\22\ Individual policyholders are not considered small
                entities.
                ---------------------------------------------------------------------------
                 \20\ See U.S. Census Bureau, ``2012 Census of Governments, Local
                Governments by Type and State 2012,'' Table 2, September 26, 2013,
                available at https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk.
                 \21\ The number of NFIP communities is derived from ``The
                National Flood Insurance Program Community Status Book,'' Page 478,
                located at https://www.fema.gov/national-flood-insurance-program-community-status-book.
                 \22\ The number of small government jurisdictions equals 22,269
                multiplied by 0.954.
                ---------------------------------------------------------------------------
                 FEMA seeks comments on the methodology and assumptions used to
                determine the number of small entities impacted by this proposed rule.
                4. A Description of the Projected Reporting, Recordkeeping, and Other
                Compliance Requirements of the Proposed Rule, Including an Estimate of
                the Classes of Small Entities Which Will be Subject to the Requirement
                and the Types of Professional Skills Necessary for Preparation of the
                Report or Record
                 Currently, FEMA anticipates this rule would not impose any direct
                costs on small entities and anticipates that the proposed rule would
                allow easier access to information about flood insurance eligibility.
                This proposed rulemaking does not consist of any substantive policy
                changes. FEMA does not anticipate an increase in administrative burdens
                to small entities from this proposed rule.
                5. An Identification, to the Extent Practicable, of all Relevant
                Federal Rules Which may Duplicate, Overlap, or Conflict With the
                Proposed Rule
                 There are no relevant Federal rules that may duplicate, overlap, or
                conflict with the proposed rule.
                6. A Description of Any Significant Alternatives to the Proposed Rule
                Which Accomplish the Stated Objectives of Applicable Statutes and Which
                Minimize Any Significant Economic Impact of the Proposed Rule on Small
                Entities
                 Given that this rule is largely procedural in nature, with no
                direct costs on small entities, no less burdensome alternatives to the
                proposed rule are available. In the absence of this proposed rule,
                small entities would continue to receive the loss of community
                eligibility notices through Federal Register publications. Community
                status information would continue to be maintained on FEMA's website.
                 FEMA invites all interested parties to submit data and information
                regarding the potential economic impact that would result from adoption
                of the proposals in this NPRM. FEMA will consider all comments received
                in the public comment process. After reviewing the public comments,
                FEMA may certify the final rule as not having a significant economic
                impact on a substantial number of small entities.
                Unfunded Mandates Reform Act of 1995
                 The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 658, 1501-1504,
                1531-
                [[Page 7908]]
                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 would not result in the
                expenditure by State, local, and Tribal governments, in the aggregate,
                nor by the private sector, of $100 million (adjusted annually for
                inflation) or more in any one year as a result of a Federal mandate,
                and it would not significantly or uniquely affect small governments.
                Therefore, no actions are deemed necessary under the provisions of the
                Unfunded Mandates Reform Act of 1995.
                C. 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 the collection of
                information displays a valid control number. FEMA collects community
                information for the purposes of application to the NFIP under OMB
                Control Number 1660-0004, Application for Participation in the National
                Flood Insurance Program (NFIP).\23\ However, FEMA has determined that
                this rulemaking does not impact this information collection or any
                other collection of information as defined by the Act.
                ---------------------------------------------------------------------------
                 \23\ See 44 CFR 59.22 for a description of the information
                collected.
                ---------------------------------------------------------------------------
                D. Privacy Act/E-Government Act
                 Under the Privacy Act of 1974, 5 U.S.C. 552a, an agency must
                determine whether implementation of a proposed regulation will result
                in a system of records. A ``record'' is any item, collection, or
                grouping of information about an individual that is maintained by an
                agency, including, but not limited to, his/her education, financial
                transactions, medical history, and criminal or employment history and
                that contains his/her name, or the identifying number, symbol, or other
                identifying particular assigned to the individual, such as a finger or
                voice print or a photograph. See 5 U.S.C. 552a(a)(4). A ``system of
                records'' is a group of records under the control of an agency from
                which information is retrieved by the name of the individual or by some
                identifying number, symbol, or other identifying particular assigned to
                the individual. An agency cannot disclose any record which is contained
                in a system of records except by following specific procedures.
                 The E-Government Act of 2002, 44 U.S.C. 3501 note, also requires
                specific procedures when an agency takes action to develop or procure
                information technology that collects, maintains, or disseminates
                information that is in an identifiable form. This Act also applies when
                an agency initiates a new collection of information that will be
                collected, maintained, or disseminated using information technology if
                it includes any information in an identifiable form permitting the
                physical or online contacting of a specific individual.
                 In accordance with Department of Homeland Security privacy
                compliance policy, FEMA has completed a Privacy Threshold Analysis for
                this proposed rule. DHS determined that this proposed rule is not
                privacy sensitive, as it does not affect the information collected
                about an individual. FEMA's original collection and maintenance of NFIP
                related personally identifiable information has coverage under the DHS/
                FEMA-003--National Flood Insurance Program Files, 79 FR 28747 (May 19,
                2014) System of Records Notice and the DHS/FEMA/PIA--011 National Flood
                Insurance Program Information Technology System Privacy Impact
                Assessment. This proposed rule does not impact this existing system of
                record, create a new system of record, nor impact the current Privacy
                Impact Assessment. Therefore, this proposed rule does not require
                coverage under an existing or new Privacy Impact Assessment or System
                of Records Notice.
                E. Executive Order 13175, Consultation and Coordination With Indian
                Tribal Governments
                 Executive Order 13175, ``Consultation and Coordination with Indian
                Tribal Governments,'' 65 FR 67249, November 9, 2000, applies to agency
                regulations that have Tribal implications, that is, regulations that
                have substantial direct effects on one or more Indian tribes, on the
                relationship between the Federal Government and Indian Tribes, or on
                the distribution of power and responsibilities between the Federal
                Government and Indian Tribes. Under this Executive Order, to the extent
                practicable and permitted by law, no agency shall promulgate any
                regulation that has Tribal implications, that imposes substantial
                direct compliance costs on Indian Tribal governments, and that is not
                required by statute, unless funds necessary to pay the direct costs
                incurred by the Indian Tribal government or the Tribe in complying with
                the regulation are provided by the Federal Government, or the agency
                consults with Tribal officials.
                 Although Tribes that meet the NFIP eligibility criteria can
                participate in the NFIP in the same manner as communities,\24\ FEMA has
                reviewed this proposed rule under Executive Order 13175 and has
                determined that this proposed rule does not have a substantial direct
                effect on one or more Indian tribes, on the relationship between the
                Federal Government and Indian Tribes, or on the distribution of power
                and responsibilities between the Federal Government and Indian Tribes.
                This proposed rule modernizes notice requirements for community loss of
                eligibility information and community status information; therefore,
                FEMA does not expect the regulatory changes in this proposed rule to
                substantially or disproportionately affect Indian Tribal governments
                acting as communities under the NFIP.
                ---------------------------------------------------------------------------
                 \24\ Although the NFIP does not explicitly reference Tribal
                Governments, FEMA includes Tribal nations in its definition of a
                community. See 44 CFR 59.1.
                ---------------------------------------------------------------------------
                F. Executive Order 13132, Federalism
                 Executive Order 13132, ``Federalism,'' 64 FR 43255, August 10,
                1999, sets forth principles and criteria that agencies must adhere to
                in formulating and implementing policies that have federalism
                implications, that is, regulations that have ``substantial direct
                effects on the States, on the relationship between the national
                government and the States, or on the distribution of power and
                responsibilities among the various levels of government.'' Federal
                agencies must closely examine the statutory authority supporting any
                action that would limit the policymaking discretion of the States, and
                to the extent practicable, must consult with State and local officials
                before implementing any such action.
                 FEMA has determined that this rulemaking does not have a
                substantial direct effect on the States, on the relationship between
                the national government and the States, or on the
                [[Page 7909]]
                distribution of power and responsibilities among the various levels of
                government, and therefore does not have federalism implications as
                defined by the Executive Order. This rulemaking seeks to modernize
                notice requirements for community loss of eligibility information and
                community status information under the NFIP; therefore, the rule does
                not impact the substantive rights, roles, or responsibilities of
                States, and does not limit State policymaking discretion.
                G. National Environmental Policy Act of 1969 (NEPA)
                 Under the National Environmental Policy Act of 1969 (NEPA), as
                amended, 42 U.S.C. 4321 et seq., an agency must prepare an
                environmental assessment or environmental impact statement for any
                rulemaking that significantly affects the quality of the human
                environment. FEMA has determined that this rulemaking does not
                significantly affect the quality of the human environment and
                consequently has not prepared an environmental assessment or
                environmental impact statement.
                 Rulemaking is a major Federal action subject to NEPA. Categorical
                exclusion A3 included in the list of exclusion categories at Department
                of Homeland Security Instruction Manual 023-01-001-01, Revision 01,
                Implementation of the National Environmental Policy Act, Appendix A,
                issued November 6, 2014, covers the promulgation of rules, issuance of
                rulings or interpretations, and the development and publication of
                policies, orders, directives, notices, procedures, manuals, and
                advisory circulars if they meet certain criteria provided in A3(a-f).
                This notice of proposed rulemaking meets Categorical Exclusion A3(d),
                ``Those that interpret or amend an existing regulation without changing
                its environmental effect''.
                H. 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 will send this rule to the Congress and to GAO pursuant to the
                CRA if the rule is finalized. The rule is not a ``major rule'' within
                the meaning of the CRA. It will not have an annual effect on the
                economy of $100,000,000 or more; it will not result in a major increase
                in costs or prices for consumers, individual industries, Federal,
                State, or local government agencies, or geographic regions; and it will
                not have significant adverse effects on competition, employment,
                investment, productivity, innovation, or on the ability of United
                States-based enterprises to compete with foreign-based enterprises in
                domestic and export markets.
                List of Subjects
                44 CFR Part 59
                 Flood insurance, Reporting and recordkeeping requirements.
                44 CFR Part 64
                 Flood insurance, Reporting and recordkeeping requirements.
                 For the reasons set forth in the preamble, the Federal Emergency
                Management Agency proposes to amend 44 CFR parts 59 and 64 as follows:
                PART 59--GENERAL PROVISIONS
                0
                1. The authority citation for part 59 continues to read as follows:
                 Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of
                1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127 of Mar. 31,
                1979, 44 FR 19367, 3 CFR, 1979 Comp., p. 376.
                0
                2. Amend Sec. 59.24 by:
                0
                a. Revising the fourth sentence of paragraph (a);
                0
                b. Revising the fourth sentence of paragraph (c);
                0
                c. Revising the second sentence of paragraph (d);
                0
                d. Revising the second sentence of paragraph (e).
                 The revisions read as follows:
                Sec. 59.24 Suspension of Community Eligibility.
                 (a) * * * If, subsequently, copies of adequate flood plain
                management regulations are not received by the Administrator, no later
                than 30 days before the expiration of the original six month period the
                Federal Insurance Administrator shall provide written notice to the
                community and to the state and assure publication of the community's
                loss of eligibility for the sale of flood insurance on the internet or
                by another comparable method, such suspension to become effective upon
                the expiration of the six month period. * * *
                * * * * *
                 (c) * * * If a community is to be suspended, the Federal Insurance
                Administrator shall inform it upon 30 days prior written notice and
                upon publication of its loss of eligibility for the sale of flood
                insurance on the internet or by another comparable method. * * *
                 (d) * * * If a community is to be suspended, the Federal Insurance
                Administrator shall inform it upon 30 days prior written notice and
                upon publication of its loss of eligibility for the sale of flood
                insurance on the internet or by another comparable method. * * *
                 (e) * * * Upon receipt of a certified copy of a final legislative
                action, the Federal Insurance Administrator shall withdraw the
                community from the Program and publish its loss of eligibility for the
                sale of flood insurance on the internet or by another comparable
                method. * * *
                * * * * *
                PART 64--COMMUNITIES ELIGIBLE FOR THE SALE OF INSURANCE
                0
                3. The authority citation for part 64 continues to read as follows:
                 Authority: 42 U.S.C. 4001 et seq., Reorganization Plan No. 3 of
                1978, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 44 FR 19367, 3 CFR,
                1979 Comp., p. 376.
                0
                4. Revise Sec. 64.6 to read as follows:
                Sec. 64.6 List of eligible communities.
                 FEMA will maintain a list of communities eligible for the sale of
                flood insurance pursuant to the National Flood Insurance Program (42
                U.S.C. 4001-4128). This list will be published and maintained on the
                internet or through another comparable method.
                * * * * *
                Pete Gaynor,
                Administrator, Federal Emergency Management Agency.
                [FR Doc. 2020-02510 Filed 2-11-20; 8:45 am]
                 BILLING CODE 9111-47-P
                

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