Federal Register - August 16, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 155 / Monday, August 16, 2021 / Rules and Regulations TABLE 1010-YEAR COST TOTALS USING 3 PERCENT AND 7 PERCENT DISCOUNT RATESContinued Low estimate, 2019$
Year
FEMA costs
Applicant costs
Recipient costs
Total costs
Annual costs discounted at 3% 1
Annual costs discounted at 7% 1
6
7
8
9
10
637,380
637,380
637,380
637,380
637,380
198,165
198,165
198,165
198,165
198,165
121,770
121,770
121,770
121,770
121,770
957,315
957,315
957,315
957,315
957,315
801,736
778,385
755,713
733,702
712,332
637,899
596,168
557,166
520,716
486,650
Total
6,373,800
1,981,650
1,217,700
9,573,150
8,166,090
6,723,779
Annualized
957,315
957,315
1 The
annualized amounts for 7 percent and 3 percent are equal in this table because the amounts for each year are identical and the first year is discounted.
TABLE 1110-YEAR COST TOTALS USING 3 PERCENT AND 7 PERCENT DISCOUNT RATES
High estimate, 2019$
Year
FEMA costs
Applicant costs
Recipient costs
Total costs
Annual costs discounted at 3% 1
Annual costs discounted at 7% 1
1
2
3
4
5
6
7
8
9
10
$541,605
541,605
541,605
541,605
541,605
541,605
541,605
541,605
541,605
541,605
$339,765
339,765
339,765
339,765
339,765
339,765
339,765
339,765
339,765
339,765
$188,340
188,340
188,340
188,340
188,340
188,340
188,340
188,340
188,340
188,340
$1,069,710
1,069,710
1,069,710
1,069,710
1,069,710
1,069,710
1,069,710
1,069,710
1,069,710
1,069,710
$1,038,553
1,008,304
978,936
950,423
922,741
895,865
869,772
844,439
819,844
795,965
$999,729
934,326
873,202
816,077
762,688
712,793
666,162
622,581
581,851
543,786
Total
5,416,050
3,397,650
1,883,400
10,697,100
9,124,842
7,513,195
Annualized
1,069,710
1,069,710
1 The
lotter on DSK11XQN23PROD with RULES1
annualized amounts for 7 percent and 3 percent are equal in this table because the amounts for each year are identical and the first year is discounted.
FEMA continues to believe that there will not be any implementation or familiarization costs. FEMA currently has an arbitration process that is very similar to the final rule for cases arising from Hurricanes Katrina and Rita.
Additionally, FEMA has already notified eligible applicants, dating back to January 1, 2016 of their eligibility for arbitration under DRRA Section 1219.
Further, applicants will not have familiarization costs because the process for requesting arbitration will consist of an email request and will use materials previously submitted in the application for PA funding.
to submit a second appeal. The final rule offers an alternative that the applicant might see as more impartial because the arbitration cases would be heard by CBCA judges, as opposed to second appeals that would continue to be conducted entirely within FEMA.
Additionally, applicants have the opportunity to present their case in person and call expert witnesses to support their claims. These two options allow applicants to choose a course of action that is most appropriate to their circumstances.
Benefits
Applicants may select arbitration, if they consider this process more customizable. The arbitration process provides applicants with the opportunity to appear in person before an impartial panel and present evidence as to why they are disputing a FEMA
determination. Applicants can also retain expert witnesses to provide support to their position. Expert witnesses provide testimony within
The benefits of this final rule are qualitative in nature and apply mostly to the applicant. FEMA believes that this final rule will further its mission of supporting State, Tribal, and local governments, as well as eligible PNPs by offering them an alternative procedure for disputing PA eligibility and funding decisions. Applicants retain the option
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their technical specialty to assist the arbitration panel in understanding the underlying work for which FEMA
ultimately decides eligibility.
Additionally, applicants have the opportunity to respond in real time to evidence presented by FEMA, allowing them more control over the dispute than they might have under a second appeal.
Applicants may opt to hire an expert witness in arbitration to help present the disputed information in a manner more favorable to the applicant. The ability to hire expert witnesses may provide applicants with additional utility and may be an incentive to select arbitration.
The final rule also allows applicants to present the same technical documentation in both the appeals and arbitration procedures. An applicant who submits a first appeal but elects withdrawal in favor of arbitration may opt to reuse the information in the request for arbitration that was previously submitted in the first appeal.
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