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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations
pre-BW12 and a no-action baseline covering 20132019 9 post-BW12.
The pre-statutory baseline shows the effects of the rule compared to the current regulations i.e., as if FEMA had not already implemented the changes through the HMA Guidance. The noaction baseline shows the effects of the rule compared to current FEMA practice i.e., compared to the HMA Guidance,
which reflects FEMAs current practice, but not the current regulations.
Under the pre-statutory baseline, the rule has distributional impacts and qualitative benefits. The distributional impacts affect recipients of Repetitive Loss RL grants and Severe Repetitive Loss SRL grants that were combined into the FMA program pursuant to BW
12. Under BW12, RL and SRL

properties received increased assistance, while standard mitigation properties received decreased assistance. Under the no-action baseline, the only impacts are implementation costs and Federal cost savings. Table 1 shows the impacts of this rule under the pre-statutory and no-action baselines.

TABLE 1ANNUAL EFFECTS OF RULE UNDER PRE-STATUTORY AND NO-ACTION BASELINES
2019$
Baseline
Costs
Benefits
Transfers
Pre-Statutory

$1,041 year 1 only

Qualitative

No-Action

$1,041 year 1 only

$81,159

$24.96 million from FEMA to grant recipients.
None.

Effects The primary effects of BW12 that are codified by this rule resulted from changes in the Federal cost shares. A
cost share is the portion of the costs of a Federally assisted project or program borne by the Federal Government.
FEMA pays a portion of the cost of a
project, or the Federal cost share, and the recipient pays the remaining share.
FMA Grant Cost Sharing Changes.
The current regulations still reflect the pre-BW12 cost share provisions of the RL and SRL grant programs. BW12
modified these two programs and FEMA
implemented the modifications in the 2013 HMA Guidance. The newly
expanded FMA program now serves the recipients of these grant programs.
BW12 increased the RL Federal cost share from 75 percent to between 75 and 90 percent, and increased the SRL
Federal cost share from between 90 and 100 percent to 100 percent. Table 2
shows the cost shares by type of grant.

TABLE 2COST SHARE BY TYPE OF GRANT

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RL

SRL

Baseline
FEMA cost share %

Recipient cost share %

FEMA cost share %

Pre-Statutory 20062012 Pre-BW12
No-Action 20132019 Post-BW12

75
7590

25
1025

90 to 100
100

Lowering the Cap and Removing the Frequency Restriction. Prior to BW12, FMA funds for the development or update of the flood portion of community multi-hazard mitigation plans were capped at $150,000 in Federal funding for States and $50,000
for communities, with a total cap of $300,000 in Federal funding for applications statewide. FEMA could not award State or community planning grants more than once every 5 years.
BW12 limited FMA grant funds to develop or update the flood portion of community multi-hazard mitigation plans to a $50,000 Federal share to any recipient or a $25,000 Federal share to any subrecipient. BW12 also removed the restriction on awarding State or community planning grants more than once every 5 years. FEMA discusses the impacts of these changes in the costs section.
Shifting from State Allocations to Competition. Prior to BW12, FEMA
annually allocated FMA program 9 2019

funding to recipients based on the number of insured properties and RL
properties present within the recipients jurisdiction. Recipients that did not meet the minimum threshold to receive a target allocation had to apply against funds that were set aside for this purpose. BW12 replaced this process with a fully competitive program that selects subapplications against agency priorities identified annually. This change allows FEMA to identify and mitigate properties with the highest risk from flooding, thereby providing the greatest savings to the NFIP.
Costs Costs for this rule result from implementation of the rule, rather than the 2013 HMA Guidance. FEMA
estimated these costs against the noaction baseline since these are directly attributable to updating the text of the regulation, and not program changes that FEMA already implemented.

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Familiarization Costs. FEMA
estimated familiarization costs for States, but not for local emergency management divisions or jurisdictions.
FEMA assumed States regularly update their emergency response networks and notify local emergency management divisions on any changes. FEMA
believes that States will continue to disseminate the new information through each States established process. FEMA assumed that each State grant recipient will have two personnel that will need to familiarize themselves and understand the rule by reading the existing and new regulations to understand the changes. FEMA expects each person to spend one hour to become familiar with the changes.
FEMA assumes that the rule is likely to be reviewed by each States Emergency Management Director and one administrative support personnel.
FEMA assumes that the U.S. Bureau of Labor Statistics BLS occupations
is the last year complete data is available.

VerDate Sep<11>2014

Recipient cost share %

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