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Federal Register / Vol. 86, No. 155 / Monday, August 16, 2021 / Rules and Regulations
45677

TABLE 14OMB CIRCULAR A4 ACCOUNTING TABLEContinued Estimates
Units
Category Low estimate
High estimate
0 Qualitative

Effects:
Small Entities

1,069,710

2019

7

10 Years.

957,315

1,069,710

2019

3

10 Years.

0

0

0

0

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Possible changes to PA grant disbursements.
FEMA expects 11 arbitration cases per year from small entities with an estimated cost of between $13,211 and $22,651 per small entity.
None.

Growth

None.

The estimates of the costs of the final rule are subject to uncertainty due to the uniqueness of each arbitration case. The cost estimates can vary widely depending on complexity and other factors. As a result, the cost estimate could be overstated or understated.
There are several sources of uncertainty in this analysis: The number of eligible applicants, the final deadlines for filing, and the potential number of arbitration cases. Major disasters do not occur on a regular time interval. The severity of the disaster would affect the number of applicants that decide to apply for funding in the PA Program. The number of eligible applicants can vary year-to-year.
Historical data used in this analysis was based on the arbitration process for Hurricanes Katrina and Rita, which is different in a couple of key respects from this final arbitration process.
While the cost shares for Katrina and Rita were 100 percent, cost shares for future disaster declarations may be as high as 25 percent for applicants.37
Because Katrina/Rita applicants were 37 The Federal share of assistance is not less than 75 percent of the eligible cost. The recipient determines how the non-Federal share up to 25
percent is split with the subrecipients i.e., eligible applicants. Program Overview: Public Assistance.
FEMA. https www.fema.gov/assistance/public/
program-overview. Last accessed on: May 25, 2021.

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0

Longer time frame to resolve disputes under arbitration option.

Wages

Uncertainty Analysis
not required to pay for any portion of their project cost, they had an incentive to apply for more costly projects and pursue arbitration when denied. Future disasters with a cost share may lead applicants to be more conservative in applying for PA projects, which may result in fewer arbitration requests than was indicated in the primary estimate.
Additionally, the timeframe for submitting arbitration requests under 44
CFR 206.209 was 30 days. However, FEMA is implementing a 60-day submission deadline for arbitration submissions under DRRA requirements to align with the 60-day submission timeframe for second appeals. This additional time may affect the number of arbitration cases submitted in the future, but FEMA cannot reliably predict these impacts at this time.
Alternatives FEMA identified several alternative regulatory approaches to the requirements in this final rule. The alternatives included: 1 Not issuing a mandatory regulation; 2 an alternate definition of rural; and 3 not requiring electronic submission.
FEMA did not consider the first alternative option of not issuing a mandatory regulation. The DRRA
mandates FEMA to promulgate a rule allowing the option of arbitration in lieu of a second appeal and specifies the
PO 00000

Period covered
957,315

Annualized Quantified

Transfers

Discount rate %

Additional option for review of PA projects and decisions.
Greater perception of impartiality in the arbitration process.
Ability to customize arbitration process.

Costs:
Annualized Monetized

Qualitative

Dollar year
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CBCA as the arbitration administrator.
As such, FEMA must pursue a regulatory action.
FEMA considered using an alternate definition of rural, such as OMBs nonmetropolitan area definition. OMBs nonmetropolitan area is defined as areas outside the boundaries of metropolitan areas.38
Nonmetropolitan areas are outside the boundaries of metropolitan areas and are further subdivided into two types:
1. Micropolitan micro areas, which are nonmetro labor-market areas centered on urban clusters of 10,000
49,999 persons and defined with the same criteria used to define metro areas.
2. All remaining counties, often labeled noncore counties because they are not part of core-based metro or micro areas.
OMB defines metropolitan areas to include:
1. Central counties with one or more urbanized areas; urbanized areas are densely-settled urban entities with 50,000 or more people.
2. Outlying counties that are economically tied to the core counties as measured by labor-force commuting.
Outlying counties are included if 25
38 2010 Standards for Delineating Metropolitan and Micropolitan Statistical Areas; Notice. Office of Management and Budget. See 75 FR 37246, June 28, 2010. https www.govinfo.gov/content/pkg/FR2010-06-28/pdf/2010-15605.pdf. Last accessed: May 25, 2021.

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