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Federal Register / Vol. 86, No. 226 / Monday, November 29, 2021 / Rules and Regulations
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FEMA has determined that this rulemaking does not have a substantial direct effect on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government, and therefore does not have federalism implications as defined by the Executive Order.
I. Executive Order 11988, Floodplain Management Pursuant to Executive Order 11988, Floodplain Management, 42 FR 26951
May 24, 1977, each agency must provide leadership and take action to reduce the risk of flood loss, to minimize the impact of floods on human safety, health and welfare, and to restore and preserve the natural and beneficial values served by floodplains in carrying out its responsibilities for 1
acquiring, managing, and disposing of Federal lands and facilities; 2
providing Federally undertaken, financed, or assisted construction and improvements; and 3 conducting Federal activities and programs affecting land use, including but not limited to water and related land resources planning, regulating, and licensing activities. In carrying out these responsibilities, each agency must evaluate the potential effects of any actions it may take in a floodplain;
ensure that its planning programs and budget requests reflect consideration of flood hazards and floodplain management; and prescribe procedures to implement the policies and requirements of the Executive order.
Before promulgating any regulation, an agency must determine whether the proposed regulations will affect a floodplains, and if so, the agency must consider alternatives to avoid adverse effects and incompatible development in the floodplains. If the head of the agency finds that the only practicable alternative consistent with the law and with the policy set forth in Executive Order 11988 is to promulgate a regulation that affects a floodplains, the agency must, prior to promulgating the regulation, design or modify the regulation to minimize potential harm to or within the floodplain, consistent with the agencys floodplain management regulations. It must also prepare and circulate a notice containing an explanation of why the action is proposed to be located in the floodplain.
The purpose of this rule is to remove a requirement on private insurance companies to furnish information on their financial size to participate in the WYO program. In accordance with 44

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CFR part 9, Floodplain Management and Protection of Wetlands, FEMA
determines that the changes proposed in this rule would not have an effect on floodplains.
J. Executive Order 11990, Protection of Wetlands Executive Order 11990, Protection of Wetlands, 42 FR 26961 May 24, 1977
sets forth that each agency must provide leadership and take action to minimize the destruction, loss or degradation of wetlands, and to preserve and enhance the natural and beneficial values of wetlands in carrying out the agencys responsibilities. These responsibilities include 1 acquiring, managing, and disposing of Federal lands and facilities;
and 2 providing federally undertaken, financed, or assisted construction and improvements; and 3 conducting Federal activities and programs affecting land use, including but not limited to water and related land resources planning, regulating, and licensing activities. Each agency, to the extent permitted by law, must avoid undertaking or providing assistance for new construction located in wetlands unless the head of the agency finds 1
that there is no practicable alternative to such construction, and 2 that the proposed action includes all practicable measures to minimize harm to wetlands which may result from such use. In making this finding, the head of the agency may take into account economic, environmental and other pertinent factors.
In carrying out the activities described in Executive Order 11990, each agency must consider factors relevant to a proposals effect on the survival and quality of the wetlands. These include public health, safety, and welfare, including water supply, quality, recharge and discharge; pollution; flood and storm hazards; sediment and erosion; maintenance of natural systems, including conservation and long term productivity of existing flora and fauna, species and habitat diversity and stability, hydrologic utility, fish, wildlife, timber, and food and fiber resources. They also include other uses of wetlands in the public interest, including recreational, scientific, and cultural uses. The purpose of this rule is to remove a requirement on private insurance companies to furnish information on their financial size to participate in the WYO program. In accordance with 44 CFR part 9, Floodplain Management and Protection of Wetlands, FEMA
determines that the changes in this rule would not have an effect on wetlands.

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K. National Environmental Policy Act of 1969 NEPA
Under the National Environmental Policy Act of 1969 NEPA, as amended, 42 U.S.C. 4321 et seq., an agency must consider impacts of its actions on the environment and prepare an environmental assessment or environmental impact statement for any rulemaking that has potential to significantly affect the quality of the human environment. A categorical exclusion CATEX is a form of NEPA
compliance that applies to actions that do not need to undergo detailed environmental analysis because it has been determined through experience that they typically do not have a significant impact on the human environment. An agency may apply a CATEX if the project fits within the identified criteria of the CATEX.
Rulemaking is a major Federal action subject to NEPA. CATEX M1d included in the list of categorical exclusions found in the Department of Homeland Security Instruction Manual 0230100101, Revision 01, Implementation of the National Environmental Policy Act, Appendix A, issued November 6, 2014, covers activities in support of FEMAs administration of the National Flood Insurance Program, including revisions WYO participation criteria. This rule for the NFIP meets CATEX M1d and does not require further analysis under NEPA.
L. 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 sent this final rule to the Congress and to GAO pursuant to the CRA. The rule is not a major rule within the meaning of the CRA. It will not have an annual effect on the economy of $100,000,000 or more; it will not result in a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; and it will not have
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