Management Costs, 70894-70897 [E8-27839]
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70894
Federal Register / Vol. 73, No. 227 / Monday, November 24, 2008 / Rules and Regulations
shorter period for which funding is
available under section 1933 of the Act,
the Secretary determines that the
expenditures described in paragraph
(c)(5)(i) of this section for one or more
States are projected to exceed the
allocation made to the State, the
Secretary may adjust each State’s fiscal
year allocation, as follows:
*
*
*
*
*
(D) Each State with a projected deficit
will receive an additional allocation
equal to the amount of its projected
deficit, or a prorated amount of such
deficit, if the Total Projected Deficit is
greater than the Total Projected Surplus.
Except as described in paragraph
(c)(5)(iii)(E) of this section, the amount
to be reallocated from each State with a
projected surplus will be equal to A ×
B, where A equals the Total Projected
Deficit and B equals the amount of the
State’s projected surplus as a percentage
of the Total Projected Surplus.
(E) If the Total Projected Deficit
determined under paragraph
(c)(5)(iii)(C) of this section is greater
than the Total Projected Surplus
determined under paragraph
(c)(5)(iii)(B) of this section, each State
with a projected deficit will receive an
additional allocation amount equal to
the amount of the Total Projected
Surplus multiplied by the amount of the
projected deficit for such State as a
percentage of the Total Projected Deficit.
The amount to be reallocated from each
State with a projected surplus will be
equal to the amount of the projected
surplus.
*
*
*
*
*
(v) The provisions in paragraph (c)(5)
of this section will be in effect through
the end of the period for which funding
authority is available under section
1933 of the Act.
(Catalog of Federal Domestic Assistance
Program No. 93.778, Medical Assistance
Program)
Dated: September 19, 2008.
Kerry Weems,
Acting Administrator, Centers for Medicare
& Medicaid Services.
mstockstill on PROD1PC66 with RULES
Dated: September 19, 2008.
Michael O. Leavitt,
Secretary.
[FR Doc. E8–27810 Filed 11–21–08; 8:45 am]
BILLING CODE 4120–01–P
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DEPARTMENT OF HOMELAND
SECURITY
Federal Emergency Management
Agency
44 CFR Parts 206 and 207
[Docket ID: FEMA–2006–0035]
RIN 1660–AA21
Management Costs
Federal Emergency
Management Agency, DHS.
ACTION: Notice of meeting and reopening
of comment period.
AGENCY:
SUMMARY: The Federal Emergency
Management Agency (FEMA) is
announcing the date, time, and location
for a meeting regarding the Management
Costs Interim Rule (1660-AA21). This
meeting will be open to the public.
FEMA also announces the reopening of
the comment period for the
Management Costs Interim Rule.
DATES: Meeting Date: Wednesday,
December 10, 2008, from 1 to 4 p.m.
e.s.t. Comment Date: The comment
period for the interim final rule
published at 72 FR 57869, October 11,
2008, is reopened. Written comments
must be received by December 11, 2008.
ADDRESSES: The meeting will be held at
800 K Street, NW., 1st Floor, North
Tower, Washington, DC 20001.
Individuals will be required to present
photo identification to enter the
building in which the meeting will be
held. All written submissions must
include the Docket ID FEMA–2006–
0035 and may be submitted by any one
of the following methods:
Federal Rulemaking Portal: https://
www.regulations.gov. Follow
instructions for submitting comments
on the Web site.
E-mail: FEMA-RULES@dhs.gov.
Include Docket ID FEMA–2006–0035 in
the subject line of the message.
Facsimile: (703) 483–2999.
Mail: Office of Chief Counsel, Federal
Emergency Management Agency, Room
835, 500 C Street, SW., Washington, DC
20472.
Hand Delivery/Courier: Office of the
Chief Counsel, Federal Emergency
Management Agency, Room 835, 500 C
Street, SW., Washington, DC 20472.
FOR FURTHER INFORMATION CONTACT:
Jennifer Cramer, Federal Emergency
Management Agency, 800 K Street, NW,
Washington, DC 20472, telephone 202–
786–9841.
SUPPLEMENTARY INFORMATION:
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Background
Under the provisions of the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act (Stafford Act), 42 U.S.C.
5121–5207, and its implementing
regulations, the Federal Emergency
Management Agency (FEMA) has the
authority to assist State and local
governments in carrying out their
responsibilities pursuant to a
Presidentially declared major disaster or
emergency. Section 324 of the Stafford
Act, 42 U.S.C. 5165b, required FEMA to
establish management cost rates to be
used in determining contributions for
management costs. Management costs
include any indirect cost, any
administrative expense and any other
expense not directly chargeable to a
specific project under a major disaster,
emergency, or disaster preparedness or
mitigation activity or measure.
On October 11, 2007, FEMA
published an Interim Rule that proposed
a methodology for calculating the
management cost rates, as well as
guidance for the implementation of
section 324 of the Stafford Act (72 FR
57869). As established by the Interim
Rule, management costs that are
reasonably incurred by a grantee or
subgrantee in administering and
managing the Public Assistance (PA)
program and the Hazard Mitigation
Grant Program (HMGP) grant award will
be reimbursed up to a fixed rate. The
flat percentage rate for PA is 3.34
percent for major disaster declarations,
and 3.90 percent for emergencies. The
HMGP rate is 4.89 percent for major
disaster declarations. FEMA determined
the rate for management costs using a
historical average of the Federal share of
actual administrative and management
costs paid to grantees and subgrantees.
To calculate the figures in the Interim
Rule, FEMA used data collected in the
National Emergency Management
Information System (NEMIS) for
declarations from August 1998 to July
2004. FEMA did not establish a
percentage of management costs that
grantees must pass through to
subgrantees.
FEMA initially held a 30-day
comment period on the Interim Rule.
FEMA received 34 public comments,
(all of which are available in the docket
for public inspection). On August 29,
2008 (73 FR 50881), seeking specific
data on unreimbursed eligible
management costs, FEMA reopened the
Interim Rule for an additional 30-day
comment period and received an
additional 37 comments, (which are also
available in the docket for public
inspection). Some individuals who
submitted comments during the second
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Federal Register / Vol. 73, No. 227 / Monday, November 24, 2008 / Rules and Regulations
comment period, including a specific
request from the Governors of
California, Florida, New York and
Texas, asked to meet with FEMA to
discuss their concerns about the Interim
Rule. In response to those requests,
FEMA has agreed to hold this public
listening session in which those affected
by the rule may present their concerns
orally. FEMA has also opened the
public comment period to the regulatory
docket to allow for the submission of
additional written comments or data.
FEMA continues to review the written
comments received during the first two
comment periods and will address those
as well as any comments received at the
public meeting in the next rulemaking
document published for this project.
Additional Information
The data provided below is for
informational purposes only. The
management cost rates published in the
Interim Rule have not changed. FEMA
continues to evaluate data and the
public comments received to date as
well as those that it expects to receive
during the public meeting. Any change
to the management cost rates would
occur through a Second Interim Rule or
a Final Rule that would be published in
the Federal Register.
In response to comments received on
the Interim Rule, FEMA has been
recalculating the management cost rates
using NEMIS data for all declarations
made before the date the Interim Rule
went into effect (November 13, 2007).
FEMA chose to include only those
declarations for two reasons. First, after
that date, grantees only received up to
the percentages established in the rule,
which FEMA found could artificially
deflate the percentage, as they are
capped at the 3.34/3.90/4.89 percent
rate (as appropriate). Second, under the
Interim Rule, final management cost
amounts for disasters or emergencies do
not ‘‘lock in’’ until 12 months after the
disaster, so data compiled earlier than
12 months would not represent final
management cost amounts. Further,
because the first declaration under the
Interim Rule was declared November
30, 2007, none of those disasters has
received the full amount of management
costs; obligations in NEMIS will only
reflect the initial 25 percent of eligible
management costs provided to grantees.
Because management cost rates are
calculated by using actual obligations,
including declarations affected by the
Interim Rule at this time would
artificially decrease the average.
The data below represents the
recalculated average rates. FEMA is also
conducting distributional analyses,
however, that data is not yet available
for publication. The average rate data
provided below includes Hurricane
Katrina (DR–1603–LA) data as a
separate entry to highlight how the
percentage of management costs is
affected in extremely large disasters.
Contrary to some of the comments
received, FEMA found that due to
economies of scale or other factors,
funds obligated for management costs as
70895
a percentage of project dollars may
actually decrease for extremely large
disasters. The data below excludes the
9/11 World Trade Center attack (DR–
1391-NY), because the funds provided
by FEMA for that particular disaster
were specifically mandated, accounted
for separately, and obligated under
different eligibility criteria.
Although the Interim Rule did not
establish a percentage of management
costs that must be passed through to
subgrantees, FEMA received several
comments requesting that such a rate be
set. The rates below break out the
average amount of management costs
paid to subgrantees. Again, this data is
provided for informational purposes
only. These figures should not be used
as mandatory or even suggested pass
through amounts.
Finally, the rate of management costs
for HMGP funds associated with
Hurricane Katrina (DR–1603–LA) may
appear inflated. This is because the
calculated rate as shown below is based
on management costs as a percentage of
project funds obligated to date, not as a
percentage of the total amount of HMGP
funds available to the State
($1,333,208,000). As of the date of this
analysis, only approximately 15 percent
of the estimated available project funds
have been obligated, while the
management costs obligated to date are
reflective of the level of effort necessary
to manage the entire program.
Management costs are often obligated
faster than project dollars in the HMGP.
MANAGEMENT AND ADMINISTRATIVE FUNDS PAID AS A PERCENTAGE OF PROJECT FUNDS
NEMIS state
management
obligations
(‘‘category Z’’)
NEMIS project
obligations
NEMIS grantee obligations
(‘‘sliding
scale’’)
NEMIS
subgrantee
obligations
(‘‘sliding
scale’’)
Total MC
grantee &
subg
(Cat Z + sliding scale)
Public Assistance—Major Disasters
All NEMIS Pre Sec 324 2 Less 1391 1 .........
DR 1603 LA .................................................
All NEMIS Pre Sec 324 Less 1391, 1603 ...
22,870,296,549 .....................
3.15% Total MC.
2.00% Grantee.
1.16% Subgrantee.
6,610,259,454 .......................
2.16% Total MC.
1.57% Grantee.
0.59% Subgrantee.
16,260,037,094 .....................
3.55% Total MC.
2.17% Grantee.
1.39% Subgrantee.
328,235,854
129,056,414
264,930,091
720,316,814
70,390,092
33,283,020
39,144,562
142,817,674
257,845,763
95,773,394
225,785,529
577,499,140
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Hazard Mitigation—Major Disasters
NEMIS state
management
obligations
(SMC)
NEMIS project
obligations
All NEMIS Pre Sec 324 Less 1391 .............
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2,080,757,726 .......................
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NEMIS grantee obligations
(‘‘sliding
scale’’)
16,335,829
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NEMIS
subgrantee
obligations
(‘‘sliding
scale’’)
37,275,104
Total MC
grantee &
subg
(SMC + sliding
scale)
119,154,832
70896
Federal Register / Vol. 73, No. 227 / Monday, November 24, 2008 / Rules and Regulations
NEMIS state
management
obligations
(SMC)
NEMIS project
obligations
DR 1603 LA .................................................
All NEMIS Pre Sec 324 Less 1391, 1603 ...
5.73% MC.
3.95% Grantee.
1.79% Subgrantee.
200,003,640 ..........................
7.48% Total MC.
5.92% Grantee.
1.55% Subgrantee.
1,880,754,086 .......................
5.54% Total MC.
3.74% Grantee.
1.82% Subgrantee.
NEMIS grantee obligations
(‘‘sliding
scale’’)
NEMIS
subgrantee
obligations
(‘‘sliding
scale’’)
Total MC
grantee &
subg
(SMC + sliding
scale)
10,795,418
1,051,543
3,104,886
14,951,847
54,991,528
15,284,286
34,170,218
104,202,985
Public Assistance—Emergencies
NEMIS state
management
obligations
(‘‘category Z’’)
NEMIS project
obligations
All NEMIS Pre Sec 324 ...............................
NEMIS grantee obligations
(‘‘sliding
scale’’)
6,187,426
10,690,782
1,458,597,114 .......................
2.88% MC.
1.16% Grantee.
1.72% Subgrantee.
NEMIS
subgrantee
obligations
(‘‘sliding
scale’’)
25,095,074
Total MC
grantee &
subg
(Cat Z + sliding scale)
41,973,281
1 DR–1391–NY (World Trade Center) excluded because eligibility and source and accounting of funds were treated differently than Stafford
Act/Disaster Relief Fund declarations.
2 All declarations declared between 8/26/1998 and 11/12/2007; obligations as of 10/1/2008.
As stated above, NEMIS was used to
generate the data in the table which
reflects the Federal share of actual
administrative and management costs
paid to grantees and subgrantees. If
grantees or subgrantees have incurred
management costs (as defined by section
324 of the Stafford Act (42 U.S.C.
5165b)) that were not reimbursed,
please submit those costs to the docket
during this open comment period.
FEMA needs actual cost data to support
a rate, and encourages grantees and
subgrantees to submit actual
unreimbursed cost data. FEMA
requested this data during the second
Interim Rule comment period, but in
some cases received percentage rates for
management costs incurred for disasters
rather than actual cost data. FEMA has
data showing the amount of
management costs that were actually
paid to grantees and subgrantees. FEMA
requests that grantees and subgrantees
submit to the docket any actual costs
incurred that were not reimbursed, but
would have been eligible; for example,
sliding scale limitations in section 406
of the Stafford Act. For example:
Explanation of cost
DR–9999–XX .............................................
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Disaster No.
Travel costs incurred for field inspections that exceeded available sliding scale ..........
Unreimbursed costs might include
items eligible for sliding scale funds
when such funds were insufficient, or
subgrantee costs not eligible for sliding
scale funds and therefore not eligible for
FEMA reimbursement. Unreimbursed
costs must have been incurred in
support of the management and
administration of PA or HMGP under a
specific Presidential declaration (major
disaster or emergency for PA or major
disaster for HMGP), and not in support
of other programs such as community
relations or Disaster Recovery Center
staff, or staff supporting Individual
Assistance programs. Unreimbursed
costs do not include State cost shares
required for sliding scale, Category Z, or
indirect cost funding, nor do they
include costs that were not reimbursed
because they were inconsistent with
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applicable Federal rules and cost
principles, such as OMB Circular No.
A–87.
Public Meeting
The December 10, 2008 meeting is
open to the public and will begin at 1
p.m. e.s.t. To enter the 800 K Street,
NW., 1st Floor, North Tower,
Washington, DC 20001 facility in which
the meeting will be held, members of
the public will be required to present
photo identification. The meeting will
be held in the 1st Floor Conference
Center. Please note that the meeting may
close early if all persons who wish to
comment have done so. Persons with
disabilities who require special
assistance should advise Jennifer
Cramer (contact information provided
above in the ADDRESSES section) of their
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Amount
$5,127.00
anticipated special needs as early as
possible. Members of the public who
wish to make comments must be present
and seated by 1 p.m. e.s.t.
Those who are unable to attend or
speak at the meeting may submit written
comments. Written comments must be
received by December 11, 2008. All
submissions received must include the
Docket ID FEMA–2006–0035 and may
be submitted by any one of the methods
listed in the ADDRESSES section above. A
summary of the comments received at
the public meeting will be posted to the
docket at www.regulations.gov.
Instructions for Submitting Information
to the Docket
For access to the docket to submit
comments, read the Notice of Proposed
Rulemaking, Interim Rule, background
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Federal Register / Vol. 73, No. 227 / Monday, November 24, 2008 / Rules and Regulations
documents and all comments received,
go to the Federal eRulemaking Portal at
https://www.regulations.gov. To the far
right is a section titled ‘‘More Search
Options.’’ Below that title, click on
‘‘Advanced Docket Search.’’ On the next
screen, in the box provided for Docket
ID, type ‘‘FEMA–2006–0035’’. The next
screen will provide a link to the docket.
Once viewing the docket, all documents
are provided in chronological order,
beginning with the 2002 Notice of
Proposed Rulemaking.
All Submissions received must
include the agency name and Docket ID.
Regardless of the method used for
submitting comments or supporting
material, all submissions will be posted,
without change, to the Federal
eRulemaking Portal at https://
www.regulations.gov, and will include
any personal information you provide.
Therefore, submitting this information
makes it public. You may wish to read
the Privacy Act notice that is available
on the Privacy and Use Notice link on
the Administration Navigation Bar of
https://www.regulations.gov.
Dated: November 18, 2008.
R. David Paulison,
Administrator, Federal Emergency
Management Agency.
[FR Doc. E8–27839 Filed 11–21–08; 8:45 am]
BILLING CODE 9111–49–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 25
[IB Docket No. 00–248; CC Docket No. 95–
117; FCC 08–246]
Satellite Licensing Procedures
Federal Communications
Commission.
ACTION: Final rule.
mstockstill on PROD1PC66 with RULES
AGENCY:
SUMMARY: In this document, the
Commission adopts new procedures for
non-routine earth station applications,
and adopts a reasonableness standard
for contention protocol usage. These
actions are necessary to expedite the
licensing of earth stations often used to
provide satellite-based broadband
Internet access services.
DATES: Effective December 24, 2008,
except for the amendments to §§ 25.115,
25.134, 25.218, and 25.220, which
contain information requirements that
have not been approved by OMB. The
Federal Communications Commission
will publish a document in the Federal
Register announcing the effective date
for these rules once OMB approval has
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70897
been received for the information
collection requirements.
Final Regulatory Flexibility Analysis
(FRFA) conforms to the RFA.1
FOR FURTHER INFORMATION CONTACT:
A. Need for, and Objectives of, the
Report and Order
The Telecommunications Act of 1996
requires the Commission in every evennumbered year beginning in 1998 to
review all regulations that apply to the
operations or activities of any provider
of telecommunications service and to
determine whether any such regulation
is no longer necessary in the public
interest due to meaningful economic
competition. Our objective is to repeal
or modify any rules in part 25 that are
no longer necessary in the public
interest, as required by section 11 of the
Communications Act of 1934, as
amended.
We codify streamlined procedures
that allow for routine treatment of
applications for earth stations that will
comply with an off-axis EIRP envelope.
Steven Spaeth, International Bureau,
telephone (202) 418–1539 or via the
Internet at steven.spaeth@fcc.gov.
This
summary of the Commission’s Eighth
Report and Order, IB Docket No. 00–
248, and Order on Reconsideration, CC
Docket No. 95–117, FCC 08–246,
adopted October 10, 2008, and released
October 17, 2008. The complete text of
this Eighth Report and Order and Order
on Reconsideration is available for
inspection and copying during normal
business hours in the FCC Reference
Center (Room), 445 12th Street, SW.,
Washington, DC 20554, and also may be
purchased from the Commission’s copy
contractor, Best Copy and Printing, Inc.,
Portals II, 445 12th Street, SW., Room
CY–B402, Washington, DC 20554. It is
also available on the Commission’s Web
site at https://www.fcc.gov.
Paperwork Reduction Act Analysis:
The actions taken in the Eighth Report
and Order have been analyzed with
respect to the Paperwork Reduction Act
of 1995 (PRA), Public Law 104–13 (44
U.S.C. 3501–3520), and found to impose
new and modified requirements.
Implementation of these new and
modified requirements will be subject to
approval by the Office of Management
and Budget (OMB) as prescribed by the
PRA, and will go into effect upon
announcement in the Federal Register
of OMB approval. The Commission will
publish a separate notice in the Federal
Register inviting comment on the new
and revised information collection
requirements contained in this
document. In addition, pursuant to the
Small Business Paperwork Relief Act of
2002, Public Law 107–198, 44 U.S.C.
3506(c)(4), we will also seek specific
comment on how the Commission might
‘‘further reduce the information
collection burden for small business
concerns with fewer than 25
employees.’’
SUPPLEMENTARY INFORMATION:
Regulatory Flexibility Analysis
As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA), an Initial Regulatory Flexibility
Analysis (IRFA) was incorporated in the
Third Further Notice of Proposed
Rulemaking (Third Further Notice) in IB
Docket No. 00–248, 70 FR 33426 (June
8, 2005). The Commission sought
written public comment on the
proposals in the Third Further Notice,
including comment on the IRFA. This
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B. Summary of Significant Issues Raised
by Public Comments in Response to the
IRFA
No comments were submitted directly
in response to the IRFA in the Third
Further Notice.
C. Description and Estimate of the
Number of Small Entities to Which
Rules Will Apply
The RFA directs agencies to provide
a description of, and, where feasible, an
estimate of, the number of small entities
that may be affected by the rules
adopted herein.2 The RFA generally
defines the term ‘‘small entity’’ as
having the same meaning as the terms
‘‘small business,’’ ‘‘small organization,’’
and ‘‘small governmental jurisdiction.’’ 3
In addition, the term ‘‘small business’’
has the same meaning as the term
‘‘small business concern’’ under the
Small Business Act.4 A small business
concern is one which: (1) Is
independently owned and operated; (2)
is not dominant in its field of operation;
and (3) satisfies any additional criteria
established by the Small Business
Administration (SBA).5
1. Cable Services. The SBA has
developed a small business size
1 See
5 U.S.C. 604.
U.S.C. 604(a)(3).
3 5 U.S.C. 601(6).
4 5 U.S.C. 601(3) (incorporating by reference the
definition of ‘‘small business concern’’ in 15 U.S.C.
632). Pursuant to the RFA, the statutory definition
of a small business applies ‘‘unless an agency, after
consultation with the Office of Advocacy of the
Small Business Administration and after
opportunity for public comment, establishes one or
more definitions of such term which are
appropriate to the activities of the agency and
publishes such definition(s) in the Federal
Register.’’ 5 U.S.C. 601(3).
5 15 U.S.C. 632.
25
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]]>Agencies
[Federal Register Volume 73, Number 227 (Monday, November 24, 2008)]
[Rules and Regulations]
[Pages 70894-70897]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-27839]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
Federal Emergency Management Agency
44 CFR Parts 206 and 207
[Docket ID: FEMA-2006-0035]
RIN 1660-AA21
Management Costs
AGENCY: Federal Emergency Management Agency, DHS.
ACTION: Notice of meeting and reopening of comment period.
-----------------------------------------------------------------------
SUMMARY: The Federal Emergency Management Agency (FEMA) is announcing
the date, time, and location for a meeting regarding the Management
Costs Interim Rule (1660-AA21). This meeting will be open to the
public. FEMA also announces the reopening of the comment period for the
Management Costs Interim Rule.
DATES: Meeting Date: Wednesday, December 10, 2008, from 1 to 4 p.m.
e.s.t. Comment Date: The comment period for the interim final rule
published at 72 FR 57869, October 11, 2008, is reopened. Written
comments must be received by December 11, 2008.
ADDRESSES: The meeting will be held at 800 K Street, NW., 1st Floor,
North Tower, Washington, DC 20001. Individuals will be required to
present photo identification to enter the building in which the meeting
will be held. All written submissions must include the Docket ID FEMA-
2006-0035 and may be submitted by any one of the following methods:
Federal Rulemaking Portal: https://www.regulations.gov. Follow
instructions for submitting comments on the Web site.
E-mail: FEMA-RULES@dhs.gov. Include Docket ID FEMA-2006-0035 in the
subject line of the message.
Facsimile: (703) 483-2999.
Mail: Office of Chief Counsel, Federal Emergency Management Agency,
Room 835, 500 C Street, SW., Washington, DC 20472.
Hand Delivery/Courier: Office of the Chief Counsel, Federal
Emergency Management Agency, Room 835, 500 C Street, SW., Washington,
DC 20472.
FOR FURTHER INFORMATION CONTACT: Jennifer Cramer, Federal Emergency
Management Agency, 800 K Street, NW, Washington, DC 20472, telephone
202-786-9841.
SUPPLEMENTARY INFORMATION:
Background
Under the provisions of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (Stafford Act), 42 U.S.C. 5121-5207, and its
implementing regulations, the Federal Emergency Management Agency
(FEMA) has the authority to assist State and local governments in
carrying out their responsibilities pursuant to a Presidentially
declared major disaster or emergency. Section 324 of the Stafford Act,
42 U.S.C. 5165b, required FEMA to establish management cost rates to be
used in determining contributions for management costs. Management
costs include any indirect cost, any administrative expense and any
other expense not directly chargeable to a specific project under a
major disaster, emergency, or disaster preparedness or mitigation
activity or measure.
On October 11, 2007, FEMA published an Interim Rule that proposed a
methodology for calculating the management cost rates, as well as
guidance for the implementation of section 324 of the Stafford Act (72
FR 57869). As established by the Interim Rule, management costs that
are reasonably incurred by a grantee or subgrantee in administering and
managing the Public Assistance (PA) program and the Hazard Mitigation
Grant Program (HMGP) grant award will be reimbursed up to a fixed rate.
The flat percentage rate for PA is 3.34 percent for major disaster
declarations, and 3.90 percent for emergencies. The HMGP rate is 4.89
percent for major disaster declarations. FEMA determined the rate for
management costs using a historical average of the Federal share of
actual administrative and management costs paid to grantees and
subgrantees. To calculate the figures in the Interim Rule, FEMA used
data collected in the National Emergency Management Information System
(NEMIS) for declarations from August 1998 to July 2004. FEMA did not
establish a percentage of management costs that grantees must pass
through to subgrantees.
FEMA initially held a 30-day comment period on the Interim Rule.
FEMA received 34 public comments, (all of which are available in the
docket for public inspection). On August 29, 2008 (73 FR 50881),
seeking specific data on unreimbursed eligible management costs, FEMA
reopened the Interim Rule for an additional 30-day comment period and
received an additional 37 comments, (which are also available in the
docket for public inspection). Some individuals who submitted comments
during the second
[[Page 70895]]
comment period, including a specific request from the Governors of
California, Florida, New York and Texas, asked to meet with FEMA to
discuss their concerns about the Interim Rule. In response to those
requests, FEMA has agreed to hold this public listening session in
which those affected by the rule may present their concerns orally.
FEMA has also opened the public comment period to the regulatory docket
to allow for the submission of additional written comments or data.
FEMA continues to review the written comments received during the first
two comment periods and will address those as well as any comments
received at the public meeting in the next rulemaking document
published for this project.
Additional Information
The data provided below is for informational purposes only. The
management cost rates published in the Interim Rule have not changed.
FEMA continues to evaluate data and the public comments received to
date as well as those that it expects to receive during the public
meeting. Any change to the management cost rates would occur through a
Second Interim Rule or a Final Rule that would be published in the
Federal Register.
In response to comments received on the Interim Rule, FEMA has been
recalculating the management cost rates using NEMIS data for all
declarations made before the date the Interim Rule went into effect
(November 13, 2007). FEMA chose to include only those declarations for
two reasons. First, after that date, grantees only received up to the
percentages established in the rule, which FEMA found could
artificially deflate the percentage, as they are capped at the 3.34/
3.90/4.89 percent rate (as appropriate). Second, under the Interim
Rule, final management cost amounts for disasters or emergencies do not
``lock in'' until 12 months after the disaster, so data compiled
earlier than 12 months would not represent final management cost
amounts. Further, because the first declaration under the Interim Rule
was declared November 30, 2007, none of those disasters has received
the full amount of management costs; obligations in NEMIS will only
reflect the initial 25 percent of eligible management costs provided to
grantees. Because management cost rates are calculated by using actual
obligations, including declarations affected by the Interim Rule at
this time would artificially decrease the average.
The data below represents the recalculated average rates. FEMA is
also conducting distributional analyses, however, that data is not yet
available for publication. The average rate data provided below
includes Hurricane Katrina (DR-1603-LA) data as a separate entry to
highlight how the percentage of management costs is affected in
extremely large disasters. Contrary to some of the comments received,
FEMA found that due to economies of scale or other factors, funds
obligated for management costs as a percentage of project dollars may
actually decrease for extremely large disasters. The data below
excludes the 9/11 World Trade Center attack (DR-1391-NY), because the
funds provided by FEMA for that particular disaster were specifically
mandated, accounted for separately, and obligated under different
eligibility criteria.
Although the Interim Rule did not establish a percentage of
management costs that must be passed through to subgrantees, FEMA
received several comments requesting that such a rate be set. The rates
below break out the average amount of management costs paid to
subgrantees. Again, this data is provided for informational purposes
only. These figures should not be used as mandatory or even suggested
pass through amounts.
Finally, the rate of management costs for HMGP funds associated
with Hurricane Katrina (DR-1603-LA) may appear inflated. This is
because the calculated rate as shown below is based on management costs
as a percentage of project funds obligated to date, not as a percentage
of the total amount of HMGP funds available to the State
($1,333,208,000). As of the date of this analysis, only approximately
15 percent of the estimated available project funds have been
obligated, while the management costs obligated to date are reflective
of the level of effort necessary to manage the entire program.
Management costs are often obligated faster than project dollars in the
HMGP.
Management and Administrative Funds Paid as a Percentage of Project Funds
----------------------------------------------------------------------------------------------------------------
NEMIS state NEMIS
management NEMIS grantee subgrantee Total MC
NEMIS project obligations obligations obligations grantee & subg
obligations (``category (``sliding (``sliding (Cat Z +
Z'') scale'') scale'') sliding scale)
----------------------------------------------------------------------------------------------------------------
Public Assistance--Major Disasters
----------------------------------------------------------------------------------------------------------------
All NEMIS Pre Sec 324 \2\ Less 22,870,296,549.. 328,235,854 129,056,414 264,930,091 720,316,814
1391 \1\.
3.15% Total MC.
2.00% Grantee..
1.16%
Subgrantee.
DR 1603 LA.................... 6,610,259,454... 70,390,092 33,283,020 39,144,562 142,817,674
2.16% Total MC.
1.57% Grantee..
0.59%
Subgrantee.
All NEMIS Pre Sec 324 Less 16,260,037,094.. 257,845,763 95,773,394 225,785,529 577,499,140
1391, 1603.
3.55% Total MC.
2.17% Grantee..
1.39%
Subgrantee.
----------------------------------------------------------------------------------------------------------------
Hazard Mitigation--Major Disasters
----------------------------------------------------------------------------------------------------------------
NEMIS
NEMIS state NEMIS grantee subgrantee Total MC
NEMIS project management obligations obligations grantee & subg
obligations obligations (``sliding (``sliding (SMC +
(SMC) scale'') scale'') sliding scale)
----------------------------------------------------------------------------------------------------------------
All NEMIS Pre Sec 324 Less 2,080,757,726... 65,786,946 16,335,829 37,275,104 119,154,832
1391.
[[Page 70896]]
5.73% MC.......
3.95% Grantee..
1.79%
Subgrantee.
DR 1603 LA.................... 200,003,640..... 10,795,418 1,051,543 3,104,886 14,951,847
7.48% Total MC.
5.92% Grantee..
1.55%
Subgrantee.
All NEMIS Pre Sec 324 Less 1,880,754,086... 54,991,528 15,284,286 34,170,218 104,202,985
1391, 1603.
5.54% Total MC.
3.74% Grantee..
1.82%
Subgrantee.
----------------------------------------------------------------------------------------------------------------
Public Assistance--Emergencies
----------------------------------------------------------------------------------------------------------------
NEMIS state NEMIS
management NEMIS grantee subgrantee Total MC
NEMIS project obligations obligations obligations grantee & subg
obligations (``category (``sliding (``sliding (Cat Z +
Z'') scale'') scale'') sliding scale)
----------------------------------------------------------------------------------------------------------------
All NEMIS Pre Sec 324......... 1,458,597,114... 6,187,426 10,690,782 25,095,074 41,973,281
2.88% MC.......
1.16% Grantee..
1.72%
Subgrantee .
----------------------------------------------------------------------------------------------------------------
\1\ DR-1391-NY (World Trade Center) excluded because eligibility and source and accounting of funds were treated
differently than Stafford Act/Disaster Relief Fund declarations.
\2\ All declarations declared between 8/26/1998 and 11/12/2007; obligations as of 10/1/2008.
As stated above, NEMIS was used to generate the data in the table
which reflects the Federal share of actual administrative and
management costs paid to grantees and subgrantees. If grantees or
subgrantees have incurred management costs (as defined by section 324
of the Stafford Act (42 U.S.C. 5165b)) that were not reimbursed, please
submit those costs to the docket during this open comment period. FEMA
needs actual cost data to support a rate, and encourages grantees and
subgrantees to submit actual unreimbursed cost data. FEMA requested
this data during the second Interim Rule comment period, but in some
cases received percentage rates for management costs incurred for
disasters rather than actual cost data. FEMA has data showing the
amount of management costs that were actually paid to grantees and
subgrantees. FEMA requests that grantees and subgrantees submit to the
docket any actual costs incurred that were not reimbursed, but would
have been eligible; for example, sliding scale limitations in section
406 of the Stafford Act. For example:
------------------------------------------------------------------------
Disaster No. Explanation of cost Amount
------------------------------------------------------------------------
DR-9999-XX....................... Travel costs incurred $5,127.00
for field inspections
that exceeded available
sliding scale.
------------------------------------------------------------------------
Unreimbursed costs might include items eligible for sliding scale
funds when such funds were insufficient, or subgrantee costs not
eligible for sliding scale funds and therefore not eligible for FEMA
reimbursement. Unreimbursed costs must have been incurred in support of
the management and administration of PA or HMGP under a specific
Presidential declaration (major disaster or emergency for PA or major
disaster for HMGP), and not in support of other programs such as
community relations or Disaster Recovery Center staff, or staff
supporting Individual Assistance programs. Unreimbursed costs do not
include State cost shares required for sliding scale, Category Z, or
indirect cost funding, nor do they include costs that were not
reimbursed because they were inconsistent with applicable Federal rules
and cost principles, such as OMB Circular No. A-87.
Public Meeting
The December 10, 2008 meeting is open to the public and will begin
at 1 p.m. e.s.t. To enter the 800 K Street, NW., 1st Floor, North
Tower, Washington, DC 20001 facility in which the meeting will be held,
members of the public will be required to present photo identification.
The meeting will be held in the 1st Floor Conference Center. Please
note that the meeting may close early if all persons who wish to
comment have done so. Persons with disabilities who require special
assistance should advise Jennifer Cramer (contact information provided
above in the ADDRESSES section) of their anticipated special needs as
early as possible. Members of the public who wish to make comments must
be present and seated by 1 p.m. e.s.t.
Those who are unable to attend or speak at the meeting may submit
written comments. Written comments must be received by December 11,
2008. All submissions received must include the Docket ID FEMA-2006-
0035 and may be submitted by any one of the methods listed in the
ADDRESSES section above. A summary of the comments received at the
public meeting will be posted to the docket at www.regulations.gov.
Instructions for Submitting Information to the Docket
For access to the docket to submit comments, read the Notice of
Proposed Rulemaking, Interim Rule, background
[[Page 70897]]
documents and all comments received, go to the Federal eRulemaking
Portal at https://www.regulations.gov. To the far right is a section
titled ``More Search Options.'' Below that title, click on ``Advanced
Docket Search.'' On the next screen, in the box provided for Docket ID,
type ``FEMA-2006-0035''. The next screen will provide a link to the
docket. Once viewing the docket, all documents are provided in
chronological order, beginning with the 2002 Notice of Proposed
Rulemaking.
All Submissions received must include the agency name and Docket
ID. Regardless of the method used for submitting comments or supporting
material, all submissions will be posted, without change, to the
Federal eRulemaking Portal at https://www.regulations.gov, and will
include any personal information you provide. Therefore, submitting
this information makes it public. You may wish to read the Privacy Act
notice that is available on the Privacy and Use Notice link on the
Administration Navigation Bar of https://www.regulations.gov.
Dated: November 18, 2008.
R. David Paulison,
Administrator, Federal Emergency Management Agency.
[FR Doc. E8-27839 Filed 11-21-08; 8:45 am]
BILLING CODE 9111-49-P
