[Federal Register Volume 63, Number 43 (Thursday, March 5, 1998)]
[Proposed Rules]
[Pages 10816-10817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5708]
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FEDERAL EMERGENCY MANAGEMENT AGENCY
44 CFR Part 206
RIN 3067-AC72
Disaster Assistance; the Declaration Process
AGENCY: Federal Emergency Management Agency (FEMA).
ACTION: Proposed rule, with request for comments.
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SUMMARY: This proposed rule would establish the financial criteria
under which a cost-share adjustment would be granted for permanent
restorative work and for emergency work unless otherwise adjusted, and
caps that cost-share at 90 percent Federal. Secondly, it would phase in
the threshold for granting cost-share adjustments to current dollars
over a two-year period, and would allow that threshold to be adjusted
annually for inflation.
DATES: We invite your comments, which may be submitted on or before May
4, 1998.
ADDRESSES: Please send any comments to the Rules Docket Clerk, Office
of the General Counsel, Federal Emergency Management Agency, 500 C
Street SW., room 840, Washington, DC 20472, (facsimile) 202-646-4536.
FOR FURTHER INFORMATION CONTACT: Patricia Stahlschmidt, Response and
Recovery Directorate, Federal Emergency Management Agency, 500 C Street
SW., Washington, DC 20472, 202-646-4066, (facsimile) 202-646-4060.
SUPPLEMENTARY INFORMATION:
Background
In 1985, the State of West Virginia was struck with an
extraordinarily severe disaster (753-DR), for which a cost-share
adjustment was granted to the normal 75 percent Federal/25 percent non-
Federal cost-share of assistance under sections 403 and 406 of the
Disaster Relief Act of 1974 (later amended and named the Robert T.
Stafford Disaster Relief and Emergency Assistance Act). (For purposes
of this rule the Disaster Relief Act and its successor are called the
Stafford Act). That disaster had an impact of $64 dollars (of Stafford
Act costs) per capita, based on statewide population. Since Hurricane
Hugo in 1989, a number of extraordinary disasters have continued to
occur throughout the United States causing significant impact to the
local, State, and Federal governments.
FEMA has used the precedent set in the 1985 West Virginia disaster
as a gauge to determine when to recommend to the President that cost-
share adjustments be granted. However, in keeping with the supplemental
nature of Federal assistance under the Stafford Act, adjustments were
granted to the cost-share only in those rare instances when the
disaster had an extraordinary impact.
Since 1985, over 435 major disaster declarations have been made
under the Stafford Act and its predecessor. Yet, only 32 cost-share
adjustments have been granted. Moreover, since Hurricane Andrew
occurred in 1992, there have been no cost-share adjustments for
permanent restorative work with greater than a 90% Federal share. This
also serves to maintain the supplemental nature of Federal disaster
assistance, and ensures at least some level of non-Federal cost-share
for disaster assistance.
The purpose of this proposed rule would be two-fold. First, it
would establish in regulation the financial criteria under which a
cost-share adjustment could be granted for permanent restorative work
under section 406 of the Stafford Act, and for emergency work under
sections 403 and 407 under the Stafford Act, if not otherwise adjusted
for the disaster, and caps that cost-share at 90 percent Federal.
Secondly, this proposed rule would phase in the threshold for granting
cost-share adjustments to current dollars over a two-year period, and
would allow that threshold to be adjusted annually for inflation. Since
1985, the threshold for granting cost-share adjustments has been $64
per capita. In current dollars, that figure would be raised to $100 per
capita. (Per capita costs are based on actual obligations under the
Stafford Act only, excluding FEMA administrative costs and the non-
Federal cost-share).
This rule would apply only to sections 403, 406, and 407 of the
Stafford Act, which stipulate that the Federal share of assistance will
not be less than 75 percent of the total eligible costs. The Stafford
Act contains no provision for waiver of cost-sharing for the Individual
and Family Grant program (section 411), the construction or site
development costs at a manufactured home group site (section 408), or
the Hazard Mitigation program (section 404). The Federal share of
grants under these sections is limited by law to 75 percent of the
total eligible costs.
In order to retain the supplemental nature of disaster assistance,
the Consumer Price Index for All Urban Consumers published by the
Department of Labor has been applied to the 1985 $64 per capita figure
to raise
[[Page 10817]]
that threshold to current dollars. The Consumer Price Index is also the
measure used to adjust grants annually under the Individual and Family
Grant Program (section 411 of the Stafford Act) and the small projects
under the Public Assistance Program (section 422 of the Stafford Act.)
Under this proposed rule the threshold would be $100 per capita, and
would be adjusted annually for inflation. Since this is such a large
increase in the threshold, the adjustment would be made over a two-year
period. In FY 1998 the threshold would be increased by $16 dollars to
$80 per capita statewide. Beginning October 1, 1998, the threshold
would be increased to $100 per capita statewide, with an adjustment
made for inflation thereafter.
National Environmental Policy Act
This proposed rule is categorically excluded from the requirements
of 44 CFR part 10. No environmental assessment has been prepared.
Executive Order 12866, Regulatory Planning and Review
This proposed rule is not a significant regulatory action within
the meaning of section 2(f) of E.O. 12866 of September 30, 1993, 58 FR
51735, but attempts to adhere to the regulatory principles set forth in
E.O. 12866. The rule has not been reviewed by the Office of Management
and Budget under E.O. 12866.
Paperwork Reduction Act
This proposed rule does not contain a collection of information and
therefore is not subject to the provisions of the Paperwork Reduction
Act of 1995.
Executive Order 12612, Federalism
This proposed rule involves no policies that have federalism
implications under E.O. 12612, Federalism, dated October 16, 1987.
Executive Order 12778, Civil Justice Reform
This proposed rule meets the applicable standards of section
2(b)(2) of E.O. 12778.
List of subjects in 44 CFR Part 206:
Administrative practice and procedure, Disaster assistance,
Intergovernmental relations, Reporting and record keeping requirements.
Accordingly, 44 CFR Part 206 is proposed to be amended as follows:
PART 206 SUBPART B--THE DECLARATION PROCESS
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. Section 206.47 is added to read as follows.
Sec. 206.47 Cost-share adjustments.
(a) In accordance with the supplemental nature of assistance under
the Stafford Act, and to demonstrate the fiscal responsibility of both
State and Federal governments, a measure of non-Federal cost-sharing
will always be retained. The standard 75 percent Federal and 25 percent
non-Federal cost-share ratio will remain in effect for most
Presidentially declared major disasters. For extraordinary disasters,
the following standard will be used to evaluate whether costs under the
Act for assistance to State and local governments should be adjusted.
This adjustment applies to permanent restorative work under section 406
of the Stafford Act and to emergency work under sections 403 and 407 of
the Stafford Act unless otherwise adjusted.
(b) Beginning in FY 1998 and effective for major disasters declared
on or after [the effective date of the final rule] a qualifying
threshold of $80 per capita of State population will be used where
individual States are severely impacted by a major disaster. This
threshold will be based on actual obligations under the Stafford Act
only, and will exclude FEMA administrative costs and the non-Federal
cost-share.
(c) Beginning October 1, 1998, a qualifying threshold of $100 per
capita of State population (as adjusted for inflation), will be used
where individual States are severely impacted by a major disaster.
Thereafter, this threshold will be adjusted annually for inflation
using the Consumer Price Index for all Urban Consumers published by the
Department of Labor. This threshold will be based on actual obligations
under the Stafford Act only and will exclude FEMA administrative costs
and the non-Federal cost-share.
(d) Where future cost-share adjustments are authorized, the Federal
share of assistance to State and local governments for impacts to
public and eligible private-nonprofit facilities may be increased above
75 percent but may not be greater than 90 percent of the total eligible
cost. One hundred percent Federal funding may be provided for direct
Federal assistance emergency work, or for emergency work under sections
403 and 407, as conditions warrant.
Dated: January 13, 1998.
James L. Witt,
Director.
[FR Doc. 98-5708 Filed 3-4-98; 8:45 am]
BILLING CODE 6718-02-P
