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Federal Register / Vol. 86, No. 155 / Monday, August 16, 2021 / Rules and Regulations
percent of workers living in the county commute to the central counties, or if 25
percent of the employment in the county consists of workers coming out from the central countiesthe so-called reverse commuting pattern.
FEMA did not recommend using OMBs definition because it combines rural area populations into Metropolitan counties. The OMB definition would also result in some rural areas, such as the Grand Canyon, being considered a metropolitan county. This alternative would not result in reducing the impact on small entities, while accomplishing the stated objective of the rule.
FEMA considered not requiring applicants to submit a request for arbitration electronically. Current practices allow FEMA to accept hard copy submissions through U.S. Mail or other means for first and second appeals. In addition, FEMA currently accepts electronic submissions for requests for arbitration under 44 CFR
206.209. FEMA chose to require electronic submissions as it would provide FEMA with enhanced ability to track and establish deadlines in the arbitration process. CBCAs rule requires applicants to use an electronic method to submit their documentation and request for arbitration to CBCA.
Thus, requiring electronic submission will not pose an undue burden on most applicants.

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B. Regulatory Flexibility Act The Regulatory Flexibility Act of 1980
5 U.S.C. 601 et seq. and Executive Order 13272 67 FR 53461, Aug. 16, 2002 require agency review of proposed and final rules to assess their impact on small entities. An agency must prepare a Final Regulatory Flexibility Analysis FRFA unless it determines and certifies that a rule, if promulgated, will not have a significant economic impact on a substantial number of small entities. This final rule will not have a significant economic impact on a substantial number of small entities. In accordance with the Regulatory Flexibility Act, a FRFA must contain the following statements, including descriptions of the reasons for the rulemaking, its objectives, the affected small entities, any additional burden for book or record keeping and other compliance requirements; any Federal rules that duplicate, overlap, or conflict with the rulemaking, and significant alternatives considered. The following sections address these subjects individually in the context of this final rule.

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1. Statement of a need for, and objectives of the rule.
PA helps State and local governments respond to and recover from the challenges faced during major disasters and emergencies. To support State and local governments facing those challenges, Congress passed DRRA.
Under the PA Program, as authorized by the Stafford Act, FEMA awards grants to eligible applicants to assist them in responding to and recovering from Presidentially-declared emergencies and major disasters. The recipient, as defined at 44 CFR
206.201m, is the government to which a grant is awarded, and which is accountable for the use of the funds provided. Generally, the State for which the emergency or major disaster is declared is the recipient. The recipient can also be an Indian Tribal government. The applicant, as defined at 44 CFR 206.201a, is a State agency, local government, or eligible PNP
submitting an application to the recipient for assistance under the States grant.
The PA Program provides Federal funds for debris removal, emergency protective measures, repair and replacement of roads and bridges, utilities, water treatment facilities, public buildings, and other infrastructure. When the President declares an emergency or major disaster declaration authorizing disbursement of funds through the PA Program, that presidential declaration automatically authorizes FEMA to accept applications from eligible applicants under the PA
Program. To apply for a grant under the PA Program, the eligible applicant must submit a Request for PA to FEMA
through the recipient. Upon award, the recipient notifies the applicant of the award, and the applicant becomes a subrecipient.
Applicants currently have a right to arbitration to dispute FEMA eligibility determinations associated with Hurricanes Katrina and Rita; see 44 CFR
206.209. The DRRA amended the Stafford Act and FEMA promulgated a regulation providing all applicants the right to request arbitration for disputes under all disaster declarations after January 1, 2016 that are above certain dollar amount thresholds. This final rule implements the Section 1219
requirements of DRRA and will grant applicants an additional method of recourse.

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2. Statement of the significant issues raised by the public comments in response to the Initial Regulatory Flexibility Analysis IRFA, a statement of the assessment of the agency of such issues, and a statement of any changes made to the proposed rule as a result of such comments.
FEMA did not receive any comments on the IRFA for this rule, and therefore did not make any changes to this FRFA
from the proposed rule due to public comments.
3. The response of the agency to any comments filed by the Chief Counsel for Advocacy of the Small Business Administration SBA in response to the proposed rule, and a detailed statement of any change made to the final rule as a result of the comments.
FEMA did not receive any comments on the proposed rule from the Chief Counsel for Advocacy of the SBA.
4. A description of and an estimate of the number of small entities to which the rule will apply or an explanation of why no such estimate is available.
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 6013 defines a small business as having the same meaning as small business concern under Section 3 of the SBA. This includes any small business concern that is independently owned and operated and is not dominant in its field of operation.
Section 6014 defines a small organization as any not-for-profit enterprise which is independently owned and operated and is not dominant in their field of operation.
Section 6015 defines small governmental jurisdiction as governments of cities, counties, towns, townships, villages, school districts, or special districts, with a population of less than 50,000.
The SBA also stipulates in its size standards of how large an entity may be and still be classified as a small entity. These small business size standards are matched to industries described in the North American Industry Classification System to determine if an entity is considered small.
This final rule does not place any additional requirements on small entities. It does, however, offer them an alternative means to dispute FEMAs determination for PA eligibility. If the entity chooses to dispute a PA
determination, and they select
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