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Federal Register / Vol. 86, No. 155 / Monday, August 16, 2021 / Rules and Regulations have the effect of excluding persons from participation in, denying persons the benefit of, or subjecting persons to discrimination because of their race, color, or national origin or income level.
The purpose of this rule is to finalize the proposed regulations to implement the new right of arbitration authorized by the DRRA, and to revise FEMAs regulations regarding first and second PA appeals. Additionally, in response to a public comment, FEMA is adding a definition of Regional Administrator.
Plus, FEMA made changes to the regulatory text regarding first appeals and second appeals at 206.206b1iiA and b2iiA as a result of the 60-day appeals deadline comments. Finally, FEMA is making two technical revisions at 206.206b and 206.206b3iA to align the regulatory text with the dispute of the eligibility for assistance or repayment of assistance language of Section 423d1
of the Stafford Act. There are no adverse effects and no disproportionate effects on minority or low-income populations.
K. Executive Order 12988, Civil Justice Reform This final rule meets applicable standards in Sections 3a and 3b2 of Executive Order 12988, Civil Justice Reform 61 FR 4729, Feb. 7, 1996, to minimize litigation, eliminate ambiguity, and reduce burden.
L. Executive Order 13045, Protection of Children From Environmental Health Risks and Safety Risks This final rule will not create environmental health risks or safety risks for children under Executive Order 13045, Protection of Children From Environmental Health Risks and Safety Risks 62 FR 19885, Apr. 23, 1997.

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M. Congressional Review of Agency Rulemaking Under the Congressional Review of Agency Rulemaking Act CRA, 5 U.S.C.
801808, before a rule can take effect, the Federal agency promulgating the rule must submit to Congress and to the Government Accountability Office GAO a copy of the rule; a concise general statement relating to the rule, including whether it is a major rule; the proposed effective date of the rule; a copy of any cost-benefit analysis;
descriptions of the agencys actions under the Regulatory Flexibility Act and the Unfunded Mandates Reform Act;
and any other information or statements required by relevant executive orders.
FEMA has submitted this final rule to the Congress and to GAO pursuant to the CRA. OMB has determined that this
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rule is not a major rule within the meaning of the CRA.
List of Subjects in 44 CFR Part 206
Administrative practice and procedure, Coastal zone, Community facilities, Disaster assistance, Fire prevention, Grant programshousing and community development, Housing, Insurance, Intergovernmental relations, Loan programshousing and community development, Natural resources, Penalties, Reporting and recordkeeping requirements.
For the reasons stated in the preamble, the Federal Emergency Management Agency amends 44 CFR
part 206 as follows:
PART 206FEDERAL DISASTER
ASSISTANCE
1. The authority citation for part 206
continues to read as follows:

Authority: Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42
U.S.C. 5121 through 5207; Homeland Security Act of 2002, 6 U.S.C. 101 et seq.;
Department of Homeland Security Delegation 9001.1.

2. Revise 206.206 to read as follows:

206.206

Appeals and arbitrations.

a Definitions. The following definitions apply to this section:
Administrator means the Administrator of the Federal Emergency Management Agency.
Amount in dispute means the difference between the amount of financial assistance sought for a Public Assistance project and the amount of financial assistance for which FEMA
has determined such Public Assistance project is eligible.
Applicant has the same meaning as the definition at 206.201a.
Final agency determination means:
1 The decision of FEMA, if the applicant or recipient does not submit a first appeal within the time limits provided for in paragraph b1iiA of this section; or 2 The decision of FEMA, if the applicant or recipient withdraws the pending appeal and does not file a request for arbitration within 30
calendar days of the withdrawal of the pending appeal; or 3 The decision of the FEMA
Regional Administrator, if the applicant or recipient does not submit a second appeal within the time limits provided for in paragraph b2iiA of this section.
Recipient has the same meaning as the definition at 206.201m.
Regional Administrator means an administrator of a regional office of
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FEMA, or his/her designated representative.
Rural area means an area with a population of less than 200,000 outside an urbanized area.
Urbanized area means an area that consists of densely settled territory that contains 50,000 or more people.
b Appeals and Arbitrations. An eligible applicant or recipient may appeal any determination previously made related to an application for or the provision of Public Assistance according to the procedures of this section. An eligible applicant may request arbitration to dispute the eligibility for assistance or repayment of assistance.
1 First Appeal. The applicant must make a first appeal in writing and submit it electronically through the recipient to the Regional Administrator.
The recipient must include a written recommendation on the applicants appeal with the electronic submission of the applicants first appeal to the Regional Administrator. The recipient may make recipient-related appeals to the Regional Administrator.
i Content. A first appeal must:
A Contain all documented justification supporting the applicant or recipients position;
B Specify the amount in dispute, as applicable; and C Specify the provisions in Federal law, regulation, or policy with which the applicant or recipient believes the FEMA determination was inconsistent.
ii Time Limits. A The applicant may make a first appeal through the recipient within 60 calendar days from the date of the FEMA determination that is the subject of the appeal and the recipient must electronically forward to the Regional Administrator the applicants first appeal with a recommendation within 120 calendar days from the date of the FEMA
determination that is the subject of the appeal. If the applicant or the recipient do not meet their respective 60-calendar day and 120-calendar day deadlines, FEMA will deny the appeal. A recipient may make a recipient-related first appeal within 60 calendar days from the date of the FEMA determination that is the subject of the appeal and must electronically submit their first appeal to the Regional Administrator.
B Within 90 calendar days following receipt of a first appeal, if there is a need for additional information, the Regional Administrator will provide electronic notice to the recipient and applicant. If there is no need for additional information, then FEMA will not provide notification. The Regional Administrator will generally allow the
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