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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations TABLE 8A4 ACCOUNTING STATEMENTNO ACTION BASELINEContinued 2019$
Period of analysis: 2021 to 2030
Category
Annualized Monetized

3 Percent discount rate
0

0

From/To

N/A.

Source citation RIA, preamble, etc.

Effects
State, Local, and/or Tribal Government.
Small business

Allows State, local, and Tribal governments to prioritize more vulnerable properties and simplifies the grant process.
There were 391 small entity recipients from 20062019. Prior to BW
12, an average of 16 recipients per year were small entities. PostBW12, there was an average of 40 small entity recipients per year. Post-BW12, small entities were more likely to receive RL or SRL grants and slightly less likely to receive standard mitigation grants, so the Federal cost shares i.e., the portion of the grant funded by FEMA for small entities were, on average, higher postBW12.
None.
None.

FEMA also assessed the impacts of this rule under the pre-statutory baseline. The pre-statutory baseline is an assessment against what the world would be like if the relevant statutes had not been adopted, and in this case, already been implemented through guidance. FEMA estimates the impact of the changes codified in this rule to primarily be an increase in transfers from FEMA to HMA recipients of $24.96
million annualized, due to the targeting of higher risk properties for grant funding. Additionally, the changes codified by this rule shifted from Statebased allocations to a competitive process, allowing FEMA to select applications according to FEMA
priorities rather than by location. This rule also eliminated limits on in-kind contributions, allowing recipients more flexibility to cover their portion of the cost shares. FEMA implemented the pre-statutory provisions of this rule in the 2013 HMA Unified Guidance.
B. Regulatory Flexibility Act The Regulatory Flexibility Act of 1980
5 U.S.C. 601 et seq. requires agency review of proposed and final rules to assess their impact on small entities.
When an agency promulgates a notice of proposed rulemaking under 5 U.S.C.
553, the agency must prepare a Final Regulatory Flexibility Analysis FRFA
unless it determines and certifies pursuant to 5 U.S.C. 605b that a rule, if promulgated, will not have a significant impact on a substantial number of small entities. FEMA believes this rule does not have a significant
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economic impact on a substantial number of small entities.
In accordance with the Regulatory Flexibility Act of 1980 RFA, 5 U.S.C.
601 et seq., as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 Pub. L. 104121, 110 Stat. 857, FEMA examined the effects of the adjustments made by BW
12 and implemented by FEMA in the 2013 HMA Guidance on small entities.
A small entity may be: A small independent business, defined as independently owned and operated, is organized for profit, and is not dominant in its field per the Small Business Act 5 U.S.C. 632; a small organization, defined as any not-forprofit enterprise which is independently owned and operated and is not dominant in its field 5 U.S.C. 601; or a small governmental jurisdiction locality with fewer than 50,000 people per 5 U.S.C. 601.
The rule directly affects all eligible FMA grant recipients. FEMA estimates that the changes from BW12 affect FMA grant recipients that are small governmental jurisdictions with a population of less than 50,000, as defined at 5 U.S.C. 6015.22 To estimate 18 See 5 U.S.C. 60136. In general, the term small entity can have the same meaning as the terms small business, small organization, and small governmental jurisdiction for purposes of this analysis. Specifically, section 6013 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 that is not dominant in its field of operation. Section 6014 defines a small organization as any not-for-profit enterprise that is
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Preamble RA.
Preamble RA.

Category
Wages
Growth

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Source citation RIA, preamble, etc.

7 Percent discount rate
Preamble RA.
Preamble FRFA.

the effects on small entities of the adjustments made by BW12, and codified in this rule, FEMA used the same methodology used in the regulatory analysis.23 In general, FEMA
identified the affected population recipients of FEMAs FMA grantsand analyzed how the changes affect those recipients. Using those results, FEMA
then evaluated which recipients qualified as small entities. Eligible FMA grant recipients may include States, U.S. territories, and Indian Tribal governments; subrecipients may include local governments and governmental organizations such as flood, sewer, and water districts. FEMA removed from its RFA dataset and analysis any recipients that are States and U.S. territories because they have populations greater than 50,000. FEMA also removed any Indian Tribal governments because they are not included in the definition of a small entity.24 The remaining recipients independently owned and operated that is not dominant in its 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. Accessed and downloaded Feb 24, 2021. http uscode.house.gov/
view.xhtml?req=title:5section:601edition:prelim OR granuleid:U.S.C.-prelim-title5section601
&f=treesort&edition=prelim&num=0&jumpTo=true.
23 FEMAs methodology is included in section IV.
Regulatory Analysis of this final rule.
24 The Regulatory Flexibility Act RFA defines a small entity as a small business, small nonprofit organization, or a small governmental jurisdiction.
Section 6015 defines small governmental jurisdictions as governments of cities, counties, towns, townships, villages, school districts, or
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