                        Analysis of Demographic Factors
                         For Populations Living Near
                      EGU and Non-EGU Facilities for the
                    Federal Implementation Plan Addressing
Regional Ozone Transport for the 2015 Ozone National Ambient Air Quality Standards

                                 Prepared by:

                             SC&A Incorporated

                         1414 Raleigh Road, Suite 450
                            Chapel Hill, NC  27517

                           GSA BPA No. 68HERD21A0003
                         Task Order No. 68HERH22F0003

                                 Prepared for:

                          Air Toxics Assessment Group
                   Health and Environmental Impacts Division
                 Office of Air Quality Planning and Standards
                     U.S. Environmental Protection Agency
                 Research Triangle Park, North Carolina 27711

                               January 10, 2022
	Disclaimer

            Although the analysis described in this document has been funded wholly or in part by the United States Environmental Protection Agency under GSA contract 47QRAA20D002W / BPA 68HERD21A0003 to SC&A Incorporated, it has not been subject to the Agency's review and therefore does not necessarily reflect the views of the Agency, and no official endorsement should be inferred.
                                   Contents

1.	Introduction	1
2.	Census Data	2
3.	Calculation Methods	3
3.1	Race, Ethnicity and Age Categories	3
3.2	Level of Education	4
3.3	Poverty Level	4
3.4	Linguistic Isolation	5
3.5	Defaults	5
4.	Results	6
4.1	Results for Electric Generating Units (EGUs)	6
4.2	Results for Non-Electric Generating Units (Non-EGUs)	9
5.	Uncertainty Discussion	11
Appendix: Analyzed Facilities	12

 Introduction
	This document provides summary results and describes the approach used to evaluate the different socio-economic demographic groups within the populations living near Electric Generating Unit (EGU) and Non-EGU facilities in the United States (U.S.). The populations surrounding these facilities were analyzed as part of the Federal Implementation Plan (FIP) addressing regional ozone transport for the 2015 Ozone National Ambient Air Quality Standards (NAAQS). The demographic analysis is for 851 EGU and 251 Non-EGU facilities identified by the U.S. Environmental Protection Agency (EPA). The current analysis evaluates census blocks surrounding these facilities with census-based demographic data. This analysis presents the demographic composition of the population located within close proximity at 5 kilometers (km), within 10 km, and within 50 km of the EGU and Non-EGU facilities, which are analyzed separately in this analysis. The following demographic groups were included in this analysis:
 Total population;
 White;
 Minority;
 African American (or Black);
 Native Americans;
 Other races and multiracial;
 Hispanic or Latino;
 Children 17 years of age and under;
 Adults 18 to 64 years of age;
 Adults 65 years of age and over;
 Adults 25 years of age and older without a high school diploma;
 People living below the poverty level; and
 Linguistically isolated people.

	The current analysis used the Proximity Tool to (1) identify all census blocks with centroids located within specified radii of the latitude/longitude location of each facility, and then (2) link each block with census-based demographic data. It should be noted that, if the centroid of a census block is located within the specified radius, the entire population of that census block is counted as within the radius. In addition to facility-specific demographics, the Proximity Tool also computes the demographic composition of the populations within the specified radii for all facilities as a whole (e.g., source category-wide). The source category-wide computation takes into account neighboring facilities with overlapping study areas and ensures populations in common are counted only once in this demographic analysis. Finally, this analysis compares these source category-wide demographics at each specified radius (i.e., 5 km, 10 km, 50 km) to the demographic composition of the nationwide population.

	The census data used in this analysis is described in Section 2. The algorithms used to compute the population of each demographic category surrounding the facility are presented in Section 3. The summary results of this analysis are presented in Section 4. The Appendix points to a supplemental workbook of spreadsheets containing the detailed facility-specific results.
 Census Data
	The total population within a specified radius around each facility is the sum of the population for every census block within that radius, based on each block's population provided by the 2010 Decennial Census. For the demographic analysis, statistics on total population, race, ethnicity, age, education level, poverty status and linguistic isolation are obtained from the Census' American Community Survey (ACS) 5-year averages for 2015-2019. These data are provided at the block group level. A census block group contains about 28 blocks on average, or about 1,400 people. Table 1 summarizes the census data used in the analysis, showing the source of each dataset and the level of geographic resolution.

             Table 1.  Summary of Census Data used for Different
                              Demographic Groups
Type of population category
Source of data
Level of geographic resolution
Total population (sum of block counts within radius)
2010 Census3 SF1
Census block
Total population (sum of block group counts, used for demographic percentages)
ACS4 Table B03002 (e1)
Census block group

Race/ethnicity categories (percentages):

 White (non-hispanic):
 Minority (non-white + hispanic)
 African American (non-hispanic):
 Native American (non-hispanic):
 Other & Mixed race (non-hispanic):
 Hispanic (all races):
ACS Table B03002, Hispanic or Latino Origin by Race (Tiger table X03):
 e3/e1
 (e1-e3)/e1
 e4/e1
 e5/e1
 (e6+e7+e8+e9)/e1
 e12/e1
Census block group
Age groups
ACS Table B01001, Sex by Age (Tiger table X01)
Census block group
Level of education  -  percentage of adults 25 years and older without a high school diploma
ACS Table B15002, Sex by Educational Attainment (Tiger table X15)
Census block group
Individuals living in households earning below the poverty level (percentage of individuals)
ACS Table C17002, Ratio of Income to Poverty Level (Tiger table X17): (e2+e3)/e1
Census block group
Individuals living in linguistically isolated households (percentage of households)
ACS Table C16002, Household Language by Household (Tiger table X16): (e4+e7+e10+e13)/e1
Census block group

      The statistics for total minorities, age groups, educational attainment, poverty, and linguistic isolation are consistent with the demographic statistics used in EPA's EJSCREEN tool for Environmental Justice analysis. We derive our demographic statistics from the ACS, which is the source of data for EJSCREEN's statistics. For the current analysis, however, we provide the impact on different racial and ethnic groups in more detail, as Table 1 illustrates.
 Calculation Methods
	The Proximity Tool uses the census block and census block group identification codes to link each block to the appropriate ACS block group demographic statistics. This allows us to estimate the number of people in different demographic categories for each census block in a specified radius around each facility. As noted in Section 2, demographic data is available at the census block group level. To estimate more detailed block level demographic percentages for the purposes of this analysis, the demographic characteristics of a given block group  -  that is, the percentage of people in different races/ethnicities, the percentage in different age groups, the percentage without a high school diploma, the percentage that are below the poverty level, and the percentage that are linguistically isolated  -  are presumed to also describe each census block located within that block group.

	For comparison, the nationwide demographic percentages are computed from the Census' ACS 5-year averages for 2015-2019 ("2019 ACS"). The denominator for these percentages uses the total nationwide population, which is likewise computed from the 2019 ACS and determined by summing the total population of all census block groups. We also provide the total population based on the 2010 Decennial Census for comparison, because the census block populations are based on 2010 Decennial Census data, as noted in Section 2.

	Sections 3.1 through 3.4 describe calculation methods for racial, ethnic, age, education status, poverty status, and linguistic isolation demographic categories. Section 3.5 describes the gap-filling approach used when block group statistics are not available for a given block, based on computing default averages for the missing demographic(s) at the tract or county level.
    Race, Ethnicity and Age Categories

	Table B03002 (Hispanic or Latino origin by race) of the ACS data provides race/ethnicity statistics for each census block group nationwide. Table B01001 provides age statistics for the population by ranges (in years) for each census block group nationwide. For each census block in this analysis, the race/ethnicity (White, African American, Native American, Multiracial/Other, and Hispanic or Latino) and age range (0-17, 18-64 and >=65 years) for that block is estimated based on the demographic information provided at the block group level, as follows:

		N(s,b/bg) =  N(t,b/bg) x P(s,bg) ∕ 100
where:

	N(s,b/bg) =	number of people in racial/ethnic or age subgroup "s", in block "b" of block group "bg"
	N(t,b/bg) =	total number of people in block "b" of block group "bg"
	P(s,bg) =	percentage of people in racial/ethnic or age subgroup "s", in a block group "bg"

The number of people in each racial/ethnic and age category is calculated using the above equation, summed over all blocks that fall within the specified radius of each facility.
    Level of Education

	Table B15002 (educational attainment) of the ACS provides education attainment statistics for each census block group nationwide. For each census block in this analysis, the number of people 25-years and older without a high school diploma is estimated based on the demographic information provided at the block group level, as follows:

		N(nhs,b/bg) =  N(t,b/bg) x P(nhs,bg) ∕ 100
where:

	N(nhs,b/bg) =	number of people 25-years and older without a high school diploma "nhs", in block "b" of block group "bg"
	N(t,b/bg) =	number of people 25-years and older in block "b" of block group "bg"
	P(nhs,bg) =	percentage of people 25-years and older without a high school diploma "nhs", in a block group "bg"

The number of people 25-years and older without a high school diploma is calculated using the above equation, summed over all blocks that fall within the specified radius of each facility.
3.3	Poverty Level

	Table C17002 (poverty) of the ACS estimates the numbers of individuals within a Census block group who live in households where the household income is below the poverty line, and below various multiples of the poverty line. For this analysis, we calculate the fraction of individuals living in households earning incomes below the poverty level. For each census block in this analysis, the block's household income level is estimated based on the demographic information provided at the block group level, as follows:

	N(hi,b/bg) =  N(t,b/bg) x P(hi,bg) ∕ 100

where "hi" indicates household income below the poverty level, and:

	N(hi,b/bg) = 	number of people living in households "hi" below the poverty level, in block "b" of block group "bg"
	N(t,b/bg) =	total number of people in block "b" of block group "bg"
	P(hi,bg) =	percentage of people living in households "hi" below the poverty level, among the population for which poverty status is known, in block group "bg"

The number of people living in households earning below the poverty level is calculated using the above equation, summed over all blocks that fall within the specified radius of each facility.
3.4	Linguistic Isolation

      Linguistic Isolation is defined by in the ACS as "a household in which all members age 14 years and over speak a non-English language and also speak English less than "very well" (have difficulty with English)." Table C16002 (Tiger table X16_language_spoken_at_home) of the ACS provides the number of households in linguistic isolation in each block group. For each census block in this analysis, the number of people living in linguistic isolation is estimated based on the demographic information provided at the block group level, as follows:

		N(li,b/bg) =  N(t,b/bg) x P(li,bg) ∕ 100
where:

	N(li,b/bg) =	number of people living in linguistic isolation "li", in block "b" of block group "bg"
	N(t,b/bg) =	total number of people in block "b" of block group "bg"
	P(li,bg) =	percentage of linguistically isolated households "li", in block group "bg"

The number of people living in linguistic isolation is calculated using the above equation, summed over all blocks that fall within the specified radius of each facility.
 	Defaults

      Block and block group designations used in the Census may be modified to accommodate population growth in some regions. As a result, certain blocks which are based on the last Decennial Census, may not map to the block group designations used in the latest 5-year ACS survey. In addition, some statistics may not be reported in the ACS for every block group. Race, ethnicity, and age statistics are generally reported for all block groups. However, poverty, linguistic isolation, and educational attainment statistics are not available for some block groups.

      In these cases, we compute default estimates for the missing demographic statistics based on the average statistics for the tract in which the block is located. If no tract-level data are available, demographic statistics are estimated based on the overall demography of the county in which the unmatched block is located. This gap-filling exercise is performed separately for each type of demographic data. That is, in the case where some categories of data are available (for instance, race, age and ethnicity) and others are not available (educational attainment, poverty, or linguistic isolation) we only compute defaults for the categories of data that are missing.

      The tract level defaults are computed using weighted averages based on all of the other block groups in the tract for which data are available. Defaults are calculated as follows for race, ethnicity, and age subgroups:

		P(s,T) =  { ∑ P(s,bg/T) x N(t,bg) } ∕ {∑ N(t,bg)}
where:

	P(s,T) =	percentage of people in race, ethnicity, or age subgroup "s", in tract "T"
	∑	refers to the summation over all block groups in tract "T" for which data are available
	P(s,bg/T) =	percentage of people in race, ethnicity, or age subgroup "s", in a block group "bg" of tract "T"
	N(t,bg) =	total number of people in block group "bg"

Defaults for educational attainment, poverty, and linguistic isolation are calculated in a similar fashion, except that the population weighting term N is replaced by the population over age 25, the population for which poverty status is known, and the number of households, respectively. County level defaults are also calculated in a similar way, except that data are summed over the county instead of the tract.

      Results
	The proximity results describing the demographics of the population surrounding the EGU facilities are presented in Section 4.1. The proximity results describing the demographics of the population surrounding the Non-EGU facilities are presented in Section 4.2. Both sections summarize the demographics within 5 km, 10 km, and 50 km of the analyzed facilities.
4.1	Results for Electric Generating Units (EGUs)

      Table 2 presents the demographic composition of the population located within a close proximity of 5 km, within 10 km, and within 50 km of the 851 EGU facilities as a whole (source category). For context, Table 2 also provides the nationwide percentages of these various demographic groups. The detailed facility-specific results underpinning these source category-wide results are noted in the Appendix.

	The proximity results presented in Table 2 indicate that the population percentages for certain demographic groups within 5 km of  EGU facility operations are greater than the corresponding nationwide percentages for those same demographics. The demographic percentage for populations residing within 5 km of facility operations is 16 percentage points greater than its corresponding nationwide percentage for the minority population (56% within 5 km to the facilities compared to 40% nationwide), 11 percentage points greater than its corresponding nationwide percentage for the Hispanic and Latino population (30% within 5 km to the facilities compared to 19% nationwide), 5 percentage points greater than its corresponding nationwide percentage for people 25 years of age and older without a high school diploma (17% within 5 km to the facilities compared to 12% nationwide), 4 percentage points greater than its corresponding nationwide percentage for people living in linguistic isolation (9% within 5 km to the facilities compared to 5% nationwide), 3 percentage points greater than its corresponding nationwide percentage for the Other and Multiracial population (11% within 5 km to the facilities compared to 8% nationwide), 3 percentage points greater than its corresponding nationwide percentage for people living below the poverty line (16% within 5 km to the facilities compared to 13% nationwide), 3 percentage points greater than its corresponding nationwide percentage for African Americans (15% within 5 km to the facilities compared to 12% nationwide), and 2 percentage points greater than its corresponding nationwide percentage for people 18 to 64 years of age (64% within 5 km to the facilities compared to 62% nationwide). The remaining demographic percentages within 5 km of facility operations are within 1 percentage point greater than or are less than the corresponding nationwide percentages.

      In addition, the proximity results presented in Table 2 indicate that the population percentages for certain demographic groups within 10 km of  EGU facility operations are greater than the corresponding nationwide percentages for those same demographics. The demographic percentage for populations residing within 10 km of facility operations is 15 percentage points greater than its corresponding nationwide percentage for the minority population (55% within 10 km to the facilities compared to 40% nationwide), 9 percentage points greater than its corresponding nationwide percentage for the Hispanic and Latino population (28% within 10 km to the facilities compared to 19% nationwide), 4 percentage points greater than its corresponding nationwide percentage for people 25 years of age and older without a high school diploma (16% within 10 km to the facilities compared to 12% nationwide), 3 percentage points greater than its corresponding nationwide percentage for African Americans (15% within 10 km to the facilities compared to 12% nationwide), 3 percentage points greater than its corresponding nationwide percentage for people living in linguistic isolation (8% within 10 km to the facilities compared to 5% nationwide), 3 percentage points greater than its corresponding nationwide percentage for the Other and Multiracial population (11% within 10 km to the facilities compared to 8% nationwide), and 3 percentage points greater than its corresponding nationwide percentage for people living below the poverty line (16% within 10 km to the facilities compared to 13% nationwide). The remaining demographic percentages within 10 km of facility operations are within 1 percentage point greater than or are less than the corresponding nationwide percentages.

      Finally, the proximity results presented in Table 2 indicate that the population percentages for populations residing within 50 km of EGU facility operations are greater than the corresponding nationwide percentages for only one demographic. The demographic percentage for populations residing within 50 km of facility operations is 2 percentage points greater than its corresponding nationwide percentage for the minority population (42% within 50 km to the facilities compared to 40% nationwide). The remaining demographic percentages within 50 km of facility operations are within 1 percentage point greater than or are less than the corresponding nationwide percentages.

Table 2.  Summary of Demographic Assessment for Electric Generating Unit (EGU) Facilities: Proximity Statistics

                               Population Basis
                             Demographic Group[1]

                                     Total
                                  Minority[2]
                               African
American
                               Native
American
                             Other and
Multiracial
                             Hispanic
or Latino[3]
                                 Ages 0
to 17
                                Ages 18
to 64
                                Ages 65
and up
                         Over 25 Without a HS Diploma
                            Below the Poverty Level

                            Linguistic Isolation[4]
Nationwide Demographics    (2015-2019 ACS)
                                 328,016,242
                                      40%
                                      12%
                                     0.7%
                                      8%
                                      19%
                                      22%
                                      62%
                                      16%
                                      12%
                                      13%
                                      5%
Nationwide Block Counts
(2010 Decennial Census)[5]
                                  312,459,649

                                 Proximity[6]
                   Population Surrounding the 851 Facilities
                                EGU Facilities
                                     50 km
                                  196,411,623
                                      42%
                                      13%
                                     0.4%
                                      9%
                                      19%
                                      23%
                                      62%
                                      15%
                                      13%
                                      13%
                                      5%
                                EGU Facilities
                                     10 km
                                  65,522,012
                                      55%
                                      15%
                                     0.3%
                                      11%
                                      28%
                                      23%
                                      63%
                                      14%
                                      16%
                                      16%
                                      8%
                                EGU Facilities
                                     5 km
                                  23,863,069
                                      56%
                                      15%
                                     0.3%
                                      11%
                                      30%
                                      22%
                                      64%
                                      14%
                                      17%
                                      16%
                                      9%
Notes:
[1] The demographic percentages are based on the Census' 2015-2019 American Community Survey five-year averages, at the block group level, and include the 50 states, the District of Columbia, and Puerto Rico. Demographic percentages based on different averages may differ. The total population of each facility and of the entire run group are based on block level data from the 2010 Decennial Census. Populations by demographic group for each facility and for the run group are determined by multiplying each 2010 Decennial block population within the indicated radius by the ACS demographic percentages describing the block group containing each block, and then summing over the appropriate area (facility-specific or run group-wide).
[2] Minority population is the total population minus the white population.
3 To avoid double counting, the "Hispanic or Latino" category is treated as a distinct demographic category for these analyses. A person is identified as one of five racial/ethnic categories above: White, African American, Native American, Other and Multiracial, or Hispanic/Latino. A person who identifies as Hispanic or Latino is counted as Hispanic/Latino for this analysis, regardless of what race this person may have also identified as in the Census.
[4] The linguistically isolated population is estimated at the block group level by taking the product of the block group population and the fraction of linguistically isolated households in the block group, assuming that the number of individuals per household is the same for linguistically isolated households as for the general population, and summed over all block groups.
[5] The nationwide 2010 Decennial Census population of 312,459,649 is the summation of all Census block populations within the 50 states, the District of Columbia, and Puerto Rico. Block level population used by the Proximity Tool will be updated based on the 2020 Decennial Census, once processed and quality-assured for these analyses.
6 The population tally and demographic analysis of the total population surrounding all facilities as a whole takes into account neighboring facilities with overlapping study areas and ensures populations in common are counted only once.

4.2	Results for Non-Electric Generating Units (Non-EGUs)

      Table 3 presents the demographic composition of the population located within a close proximity of 5 km, within 10 km, and within 50 km of the 251 Non-EGU facilities as a whole (source category). For context, Table 3 also provides the nationwide percentages of these various demographic groups. The detailed facility-specific results underpinning these source category-wide results are noted in the Appendix.

      The proximity results presented in Table 3 indicate that the population percentages for certain demographic groups within 5 km of Non- EGU facility operations are greater than the corresponding nationwide percentages for those same demographics. The demographic percentage for populations residing within 5 km of facility operations is 5 percentage points greater than its corresponding nationwide percentage for people living below the poverty line (18% within 5 km to the facilities compared to 13% nationwide), and 2 percentage points greater than its corresponding nationwide percentage for people 25 years of age and older without a high school diploma (14% within 5 km to the facilities compared to 12% nationwide). The remaining demographic percentages within 5 km of facility operations are within 1 percentage point greater than or are less than the corresponding nationwide percentages.

      In addition, the proximity results presented in Table 3 indicate that the population percentages for certain demographic groups within 10 km of Non-EGU facility operations are greater than the corresponding nationwide percentages for those same demographics. The demographic percentage for populations residing within 10 km of facility operations is 3 percentage points greater than its corresponding nationwide percentage for African Americans (15% within 10 km to the facilities compared to 12% nationwide), and 3 percentage points greater than its corresponding nationwide percentage for people living below the poverty line (16% within 10 km to the facilities compared to 13% nationwide). The remaining demographic percentages within 10 km of facility operations are within 1 percentage point greater than or are less than the corresponding nationwide percentages.

      Finally, the proximity results presented in Table 3 indicate that the population percentages for populations residing within 50 km of Non-EGU facility operations are all within 1 percentage point greater than or are less than the corresponding nationwide percentages.

Table 3.  Summary of Demographic Assessment for Non-Electric Generating Unit (Non-EGU) Facilities: Proximity Statistics

                               Population Basis
                             Demographic Group[1]

                                     Total
                                  Minority[2]
                               African
American
                               Native
American
                             Other and
Multiracial
                             Hispanic
or Latino[3]
                                 Ages 0
to 17
                                Ages 18
to 64
                                Ages 65
and up
                         Over 25 Without a HS Diploma
                            Below the Poverty Level

                            Linguistic Isolation[4]
Nationwide Demographics    (2015-2019 ACS)
                                 328,016,242
                                      40%
                                      12%
                                     0.7%
                                      8%
                                      19%
                                      22%
                                      62%
                                      16%
                                      12%
                                      13%
                                      5%
Nationwide Block Counts
(2010 Decennial Census)[5]
                                  312,459,649

                                 Proximity[6]
                   Population Surrounding the 251 Facilities
                              Non-EGU Facilities
                                     50 km
                                  91,874,288
                                      39%
                                      13%
                                     0.4%
                                      7%
                                      18%
                                      22%
                                      62%
                                      16%
                                      13%
                                      14%
                                      5%
                              Non-EGU Facilities
                                     10 km
                                   9,437,895
                                      40%
                                      15%
                                     0.5%
                                      7%
                                      17%
                                      23%
                                      61%
                                      16%
                                      13%
                                      16%
                                      4%
                              Non-EGU Facilities
                                     5 km
                                   2,819,973
                                      39%
                                      13%
                                     0.6%
                                      8%
                                      17%
                                      24%
                                      61%
                                      15%
                                      14%
                                      18%
                                      4%
Notes:
[1] The demographic percentages are based on the Census' 2015-2019 American Community Survey five-year averages, at the block group level, and include the 50 states, the District of Columbia, and Puerto Rico. Demographic percentages based on different averages may differ. The total population of each facility and of the entire run group are based on block level data from the 2010 Decennial Census. Populations by demographic group for each facility and for the run group are determined by multiplying each 2010 Decennial block population within the indicated radius by the ACS demographic percentages describing the block group containing each block, and then summing over the appropriate area (facility-specific or run group-wide).
[2] Minority population is the total population minus the white population.
3 To avoid double counting, the "Hispanic or Latino" category is treated as a distinct demographic category for these analyses. A person is identified as one of five racial/ethnic categories above: White, African American, Native American, Other and Multiracial, or Hispanic/Latino. A person who identifies as Hispanic or Latino is counted as Hispanic/Latino for this analysis, regardless of what race this person may have also identified as in the Census.
[4] The linguistically isolated population is estimated at the block group level by taking the product of the block group population and the fraction of linguistically isolated households in the block group, assuming that the number of individuals per household is the same for linguistically isolated households as for the general population, and summed over all block groups.
[5] The nationwide 2010 Decennial Census population of 312,459,649 is the summation of all Census block populations within the 50 states, the District of Columbia, and Puerto Rico. Block level population used by the Proximity Tool will be updated based on the 2020 Decennial Census, once processed and quality-assured for these analyses.
6 The population tally and demographic analysis of the total population surrounding all facilities as a whole takes into account neighboring facilities with overlapping study areas and ensures populations in common are counted only once.

 Uncertainty Discussion

	Our analysis of the distribution of population across various demographic groups is subject to the typical uncertainties associated with census data (e.g., errors in filling out and transcribing census forms), which are generally thought to be small, as well as the additional uncertainties associated with the extrapolation of census block group data down to the census block level.

	The methodology for our demographic analyses applies demographic data from the Census American Community Survey (ACS). While this is our best attempt to provide useful information now, our thinking is continuously advancing. The EPA has developed technical guidance for environmental justice analyses. We present these analyses, with their associated uncertainties, to EPA decision makers and the public as additional analyses to inform Risk and Technology Review decisions.

Appendix: Analyzed Facilities

Two workbooks of spreadsheets containing the detailed facility-specific results underpinning the source category-wide results are provided in the files entitled "EGU Facility-Specific Demographic Results 1-10-2022" and "Non-EGU Facility-Specific Demographic Results 1-10-2022". The size of the datasets covering these facilities at the 5 km, 10 km, and 50 km radii make the data more amenable to ExcelTM spreadsheets, than a WordTM document.


[Federal Register Volume 82, Number 102 (Tuesday, May 30, 2017)]
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[FR Doc. 2017-11179 Filed 5-25-17; 11:15 am]
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message.
     Facsimile: Rules Docket Clerk, Office of General Counsel,
Federal Emergency Management Agency, (fax)<PHONE_NUMBER>. Include Docket
DHS-2005-0051, Special Community Disaster Loans Program, in the subject
line of the message.
     Mail or Hand Delivery/Courier: For paper, disk, or CD-ROM
submissions, Rules Docket Clerk, Office of the General Counsel, Federal
Emergency Management Agency, Department of Homeland Security, 500 C
Street, SW., Washington, DC 20472. Include Docket DHS-2005-0051,
Special Community Disaster Loans Program, in the subject line of the
message.

FOR FURTHER INFORMATION CONTACT: James A. Walke, FEMA, 500 C Street,
SW., Washington, DC 20472, or call<PHONE_NUMBER>, or e-mail
<EMAIL_ADDRESS>

SUPPLEMENTARY INFORMATION:

Public Participation

    Interested persons are invited to participate in this rulemaking by
submitting written data, views, or arguments on all aspects of the
interim rule. FEMA also invites comments that relate to the economic,
environmental, or federalism affects that might result from this
interim rule. Comments that will provide the most assistance to FEMA in
developing these procedures will reference a specific portion of the
interim rule, explain the reason for any recommended change, and
include data, information, or authority that support such recommended
change.
    Instructions: All submissions received must include the agency name
and docket number for this rulemaking. All comments received will be
posted without change to http://www.regulations.gov, including any

personal information provided.
    Docket: For access to the docket to read background documents or
comments received, go to http://www.regulations.gov. Submitted comments

may also be inspected at Office of General Counsel, Federal Emergency
Management Agency, 500 C Street, SW., Room 840, Washington, DC 20472.

Background

    This interim rule implements the Community Disaster Loan Act of
2005, Pub. L. 109-88. The 2005 Act authorizes FEMA to transfer $750
million from the funds appropriated in the Second Emergency
Supplemental Appropriations Act To Meet Immediate Needs Arising From
The Consequences Of Hurricane Katrina, 2005, Pub. L. 109-62, to provide
up to $1 billion in loan authority. For loans issued pursuant to the
2005 Act, the 2005 Act adds three elements to the traditional program
under section 417 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (Stafford Act), 42 U.S.C. 5184: (1) The 2005
Act removes the $5 million limit on individual loans; (2) the 2005 Act
specifies that the loans are ``to assist local governments in providing
essential services;'' and (3) the 2005 Act makes inapplicable the loan
cancellation provision of section 417(c)(1) of the Stafford Act.
    In determining what constitutes ``essential services,'' it is
presumed that in light of the limited resources available to the
governments impacted by major disasters whose revenue losses make them
eligible for this program, proceeds from these loans will be limited to
the performance of core municipal operating functions including police
and fire protection, trash collection, school operation, revenue
collection, and other services related to protecting and promoting the
health, safety, and public welfare of the community.
    Under section 417 of the Stafford Act (42 U.S.C. 5184), loans may
be provided to ``local governments.'' Section 102 of the Stafford Act
(42 U.S.C. 5122) broadly defines ``local government'' to mean a county;
municipality; city; town; township; local public authority; school
district; special district; intrastate district; council of governments
(regardless of whether the council of governments is incorporated as a
nonprofit corporation under State law); regional or interstate
government entity or agency or instrumentality of a local government;
an Indian tribe or authorized tribal organization, or Alaska Native
village or organization; and a rural community, unincorporated town or
village, or other public entity, for which an application for
assistance is made by a State or political subdivision of a State. 42
U.S.C. 5122(6); 44 CFR 206.2(a)(16). This broad definition covers
entities having an executive, administrative, legislative, or judicial
nature. It may include school districts, sheriffs' offices, judicial
bodies, district attorney offices, district courts, and water and
sewage authorities.
    Operators of private nonprofit facilities are not eligible for
Special Community Disaster Loans as they do not meet the definition of
local government under the Stafford Act. However, if a local government
deems it appropriate, it may provide proceeds from a loan under this
Program to an operator of a private nonprofit facility that provides
the community essential services, such as a volunteer fire department,
volunteer emergency medical provider, or a hospital. For example, it
may provide loan proceeds to a volunteer fire department in the
community for expenses not otherwise available under the Stafford Act
or other Federal sources that would be necessary for the Fire
Department to continue to carry out their essential services to the
community. Further, if the local government provides loan proceeds to
the private nonprofit, the local government will be solely responsible
for repayment of the loan and for fulfillment of all conditions of
these regulations, which include the loan application and the
promissory note.
    This interim rule takes effect immediately in order to allow FEMA
to provide these loans as soon as possible to the local governments
already impacted by Hurricanes Rita and Katrina, as Congress
anticipated in the speedy passage of the Act. However, FEMA still seeks
comments on this rule, especially from local governments who are
applying for Special Community Disaster Loans, or from local
governments that are considering applying for Special Community
Disaster Loans, as well as citizens of these communities. Because of
the desire to provide assistance rapidly and because much of the
financial information required for the traditional Community Disaster
Loans Program is to determine cancellation eligibility, which does not
apply to the Special Community Disaster Loans Program, FEMA has
attempted to streamline the financial and other information
requirements that local governments need to provide to apply for a
loan. For example, FEMA recognizes that Hurricanes Katrina and Rita may
have damaged or destroyed many of the records of applicants. Therefore,
if FEMA finds that the applicant cannot provide any specific
application requirements, FEMA may waive the requirement to provide
certain information if it is consistent with congressional intent to
expedite assistance while still maintaining appropriate accountability
for Federal funds.

    FEMA is also aware of its responsibility to the taxpayers to ensure
that this program is operated with the appropriate level of
accountability. Therefore, FEMA particularly welcomes comments on
whether this interim rule effectively strikes the balance of providing
administrative flexibility to local governments while safeguarding
taxpayer resources.

Administrative Procedure Act

    In general, FEMA publishes a rule for public comment before issuing
a final rule under the Administrative Procedure Act, 5 U.S.C. 533 and
44 CFR 1.12. The Administrative Procedure Act, however, provides an
exception from that procedure for good cause. The public benefit of
this rule is the ability to issue loans under the Community Disaster
Loan Act of 2005, Pub. L. 109-88, to assist local governments that have
experienced a loss in revenue due to a major disaster so that those
governments can provide essential municipal services. There is an
immediate need for local governments impacted by Hurricanes Katrina and
Rita to provide essential services to their citizens. Any delay in
distributing these loans pending completion of notice and comment and
publication of a final rule could have a severe impact on the health,
safety, and welfare of the citizens of the affected local governments.
    In accordance with 5 U.S.C. 553(d)(3), FEMA has determined that
delaying implementation of this rule to await public notice and comment
is unnecessary, impracticable, and contrary to the public interest.
Delay is not in the public interest and is impracticable because of the
immediate need for local governments impacted by Hurricanes Katrina and
Rita to provide essential services to their citizens. FEMA also finds
good cause, under 5 U.S.C. 553(d)(3), for this interim rule to take
effect immediately. It would be impracticable and contrary to the
public interest to subject this interim rule to prior notice and public
comment, or to delay its taking effect.
    Although FEMA has good cause to publish this rule without prior
notice and comment, FEMA values public comments. As a result, FEMA is
soliciting public comments on this interim rule and may revise the
final rule in response to those comments. In particular FEMA invites
comments from local governments who are applying for Special Community
Disaster Loans, or considering doing so, as well as citizens of these
communities.

Executive Order 12866--Regulatory Planning and Review

    Under Executive Order 12866, 58 FR 51735, October 4, 1993, a
``significant regulatory action'' is subject to Office of Management
and Budget (OMB) review and the requirements of Executive Order 12866.
Section 3(f) of the Executive Order defines ``significant regulatory
action'' as one that is likely to result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more,
or may adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local or tribal governments or communities;
    (2) Create a serious inconsistency or otherwise interfere with an
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants,
user fees, or loan programs, or the rights and obligations of
recipients thereof; or
    (4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
the Executive Order.
    This rulemaking is considered to be an economically significant
regulatory action under section 3(f) of Executive Order 12866.
Accordingly, it has been reviewed by the Office of Management and
Budget.
    The requirements of this interim rule apply only to the Special
Community Disaster Loans under the Community Disaster Loan Act of 2005,
Pub. L. 109-88. Community Disaster Loans issued prior to the enactment
of Pub. L. 109-88 or other loans not issued under the authority of the
Pub. L. 109-88 are not covered under the regulations. Consequently,
this interim rule will not impose any additional requirements on local
governments that are not requesting a Special Community Disaster Loan.
    Historically, FEMA has only provided an average of about $8 million
per year in Community Disaster Loans ($233 million in the last 29
years), and no loans have been issued since Fiscal Year 1999. Only in
one previous year has FEMA provided Community Disaster Loans that
exceeded $100 million. FEMA believes that this rule is economically
significant as Congress has authorized $1 billion in new loan authority
and lifted the $5 million limit on individual loans. The devastating
impact of Hurricanes Katrina and Rita make it very possible that more
than $100 million in Special Community Disaster Loans could be made
within the next year.
    Further, the 2005 Act does not provide for loan cancellation, which
is allowed under the traditional Community Disaster Loans Program. The
term of a Special Community Disaster Loan is five years, unless
extended by FEMA. FEMA may consider requests for an extension based on
the financial condition of the local government. The total term of any
loan under section 417(a) of the Stafford Act normally may not exceed
ten years, but in extenuating circumstances involving financial
hardship, the local government may request from FEMA an additional
period beyond ten years to repay the indebtedness.
    FEMA will also have discretion to allow localities facing unique
economic hardships to receive discounted interest rates, at levels
consistent with the lowest rate offered by the Small Business
Administration's disaster loan program. In addition, Special Community
Disaster Loans will require either the State to co-sign the Promissory
Note, or if the State declines to cosign the Promissory Note or cannot
legally do so, the local government must pledge collateral security to
cover the principal amount of the Note. In the event of default on the
loan by the borrower, the FEMA claims collection officer will take
action to recover the outstanding principal plus related interest under
Federal debt collection authorities, including administrative offset
against other Federal funds due the borrower and/or referral to the
Department of Justice for judicial enforcement and collection.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) mandates that an agency
conduct an RFA analysis when an agency is ``required by section 553 * *
*, or any other law, to publish general notice of proposed rulemaking
for any proposed rule, or publishes a notice of proposed rulemaking for
interpretative rule involving the internal revenue laws of the United
States * * *.'' 5 U.S.C. 603(a). RFA analysis is not required when a
rule is exempt from notice and comment rulemaking under 5 U.S.C.
553(b). DHS has determined that good cause exists under 5 U.S.C.
553(b)(B) to exempt this rule from the notice and comment requirements
of 5 U.S.C. 553(b). Therefore no RFA analysis under 5 U.S.C. 603 is
required for this rule.

Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In

particular, the Unfunded Mandates Reform Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector, of $100,000,000 or more in any
one year. The Unfunded Mandates Reform Act does not require an
assessment in the case of an interim rule issued without prior notice
and public comment. Nevertheless, FEMA does not expect this rule to
result in such an expenditure. FEMA discusses this rule's effects
elsewhere in this preamble.

Executive Order 13132, Federalism

    This interim rule will not have substantial direct effects 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. It will not preempt any State laws. In
accordance with section 6 of Executive Order 13132, FEMA determines
that this rule will not have federalism implications sufficient to
warrant the preparation of a federalism impact statement.

National Environmental Policy Act

    This interim rule falls within the exclusion category of 44 CFR
10.8 (d)(2)(ii), which addresses the preparation, revision, adoption of
regulations, directives, manuals, and other guidance documents related
to actions that qualify for categorical exclusions. Because no other
extraordinary circumstances have been identified, this interim rule
will not require the preparation of either an environmental assessment
or an environmental impact statement as defined by the National
Environmental Policy Act.

Paperwork Reduction Act of 1995

    This interim rule will revise information collection requirements
currently approved under the Paperwork Reduction Act of 1995. Under the
Paperwork Reduction Act, a person may not be penalized for failing to
comply with an information collection that does not display a currently
valid OMB control number.
    FEMA submitted an information collection request to the OMB for
review and clearance in accordance with the review procedures of the
Paperwork Reduction Act of 1995. OMB approved the requested revision of
this information collection, which is assigned OMB control number 1660-
0083 and expires on April 30, 2006.

List of Subjects in 44 CFR Part 206

    Disaster Assistance, Community Disaster Loans, Loan Programs.

0
Accordingly, for the reasons set forth in the preamble, amend part 206
of Chapter I of title 44 of the Code of Federal Regulations as follows:

PART 206--FEDERAL DISASTER ASSISTANCE FOR DISASTERS DECLARED ON OR
AFTER NOVEMBER 23, 1988

0
1. The authority citation for part 206 continues to read:

    Authority: Robert T. Stafford Disaster Relief and Emergency
Assistance Act, 42 U.S.C. 5121-5206; Reorganization Plan No. 3 of
1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 44 FR
19367, 3 CFR, 1979 Comp., p. 376; E.O. 12148, 44 FR 43239, 3 CFR,
1979 Comp., p. 412; and E.O. 12673, 54 FR 12571, 3 CFR, 1989 Comp.,
p. 214.

0
2. Amend the subpart K of the Section Contents of part 206, by adding
the following in proper numerical order:

Subpart K--Community Disaster Loans

Sec.

* * *

206.368-206.369 [Reserved]
206.370 Purpose and scope.
206.371 Loan program.
206.372 Responsibilities.
206.373 Eligibility criteria.
206.374 Loan application.
206.375 Loan administration.
206.376 [Reserved]
206.377 Loan repayment.
206.378-206.389 [Reserved]

0
3. Revise Sec.  206.360 to read as follows:

Sec.  206.360  Purpose.

    This subpart provides policies and procedures for local governments
and State and Federal officials concerning the Community Disaster Loan
program under section 417 of the Stafford Act. Sections 206.360 through
206.367 of the subpart do not implement the Community Disaster Loan Act
of 2005. (see Sec.  206.370).

0
4. Add Sec.  206.370 through 206.377 as follows:

Sec.  206.370  Purpose and scope.

    (a) Purpose. Sections 206.370 through 206.377 provide policies and
procedures for local governments and State and Federal officials
concerning the Special Community Disaster Loans program under section
417 of the Stafford Act and the Community Disaster Loan Act of 2005,
Public Law 109-88.
    (b) Scope. Sections 206.370 through 206.377 apply only to Special
Community Disaster Loans under the Community Disaster Loan Act of 2005,
Public Law 109-88. Community Disaster Loans issued prior to the
enactment of Public Law 109-88 or other subsequent loans not issued
under the authority of the Public Law 109-88 are not covered under
Sec. Sec.  206.370 through 206.377.

Sec.  206.371  Loan program.

    (a) General. The Associate Director may make a Special Community
Disaster Loan to any local government which has suffered a substantial
loss of tax and other revenues as a result of a major disaster and
which demonstrates a need for Federal financial assistance in order to
provide essential services.
    (b) Amount of loan. The amount of the loan is based upon need, not
to exceed 25 percent of the operating budget of the local government
for the fiscal year in which the disaster occurs. The term fiscal year
as used in this subpart means the local government's fiscal year.
    (c) Interest rate. The interest rate is the rate for five year
maturities as determined by the Secretary of the Treasury in effect on
the date that the Promissory Note is executed. This rate is from the
monthly Treasury schedule of certified interest rates which takes into
consideration the current average yields on outstanding marketable
obligations of the United States. If an applicant can demonstrate
unusual circumstances involving financial hardship, the Associate
Director may approve a rate equal to the five year maturity rate plus 1
per centum, adjusted to the nearest \1/8\ percent, and further reduced
by one-half.
    (d) Time limitation. The Associate Director may approve a loan in
either the fiscal year in which the disaster occurred or the fiscal
year immediately following that year.
    (e) Term of loan. The term of the loan is 5 years, unless otherwise
extended by the Associate Director. The Associate Director may consider
a request for an extension of a loan based on the local government's
financial condition. The total term of any loan under section 417(a) of
the Stafford Act normally may not exceed 10 years from the date the
Promissory Note was executed. However, when extenuating circumstances
exist and the recipient demonstrates an inability to repay the loan
within the initial 10 years, but agrees to repay such loan over an
extended period of time, additional time may be provided for loan
repayment (see Sec.  206.377(c)).
    (f) Use of loan funds. The local government shall use the loaned
funds

to assist in providing essential services. The funds shall not be used
to finance capital improvements nor the repair or restoration of
damaged public facilities. The loan may not be used as the nonfederal
share of any Federal program, including those under the Stafford Act.
    (g) Relation to other assistance. Any Special Community Disaster
Loans made under this program shall not reduce or otherwise affect any
commitments, grants, or other assistance under the Stafford Act or part
206 of this title.

Sec.  206.372  Responsibilities.

    (a) The local government shall submit the financial information
required by FEMA in the application for a Community Disaster Loan or
other format specified by FEMA and comply with the assurances on the
application, the terms and conditions of the Promissory Note, and
Sec. Sec. 206.370 through Sec. Sec. 206.377. The local government shall
send all loan application, loan administration, and loan settlement
correspondence through the Governor's Authorized Representative (GAR)
and the FEMA Regional Office to the FEMA Associate Director.
    (b) The GAR shall certify on the loan application that the local
government can legally assume the proposed indebtedness and that any
proceeds will be used and accounted for in compliance with the FEMA-
State Agreement for the major disaster. States are encouraged to take
appropriate pre-disaster action to resolve any existing State
impediments which would preclude a local government from incurring the
increased indebtedness associated with a loan in order to avoid
protracted delays in processing loan application requests resulting
from major disasters.
    (c) The Regional Director or designee shall review each loan
application received from a local government to ensure that it contains
the required documents and transmit the application to the Associate
Director. He/she may submit appropriate recommendations to the
Associate Director.
    (d) The Associate Director, or a designee, shall execute a
Promissory Note with the local government and shall administer the loan
until repayment is completed and the Promissory Note is discharged.
    (e) The Associate Director or designee shall approve or disapprove
each loan request, taking into consideration the information provided
in the local government's request and the recommendations of the GAR
and the Regional Director.
    (f) The FEMA Chief Financial Officer shall establish and maintain a
financial account for each outstanding loan and disburse funds against
the Promissory Note.

Sec.  206.373  Eligibility criteria.

    (a) Local government. (1) The local government must be located
within the area eligible for assistance under a major disaster
declaration. In addition, State law must not prohibit the local
government from incurring the indebtedness resulting from a Federal
loan.
    (2) Criteria considered by FEMA in determining the eligibility of a
local government for a Special Community Disaster Loan include the loss
of tax and other revenues as result of a major disaster, a demonstrated
need for financial assistance in order to perform essential
governmental functions, the maintenance of an annual operating budget,
and the responsibility to provide essential services to the community.
Eligibility for other assistance under the Stafford Act does not, by
itself, establish entitlement to such a loan.
    (b) Loan eligibility--(1) General. To be eligible, the local
government must show that it may suffer or has suffered a substantial
loss of tax and other revenues as a result of a major disaster or
emergency, and it must demonstrate a need for financial assistance in
order to provide essential municipal services. Loan eligibility is
based on the financial condition of the local government and a review
of financial information and supporting documentation accompanying the
application.
    (2) Substantial loss of tax and other revenues. The fiscal year of
the disaster or the succeeding fiscal year is the base period for
determining whether a local government may suffer or has suffered a
substantial loss of revenue. Criteria used in determining whether a
local government has or may suffer a substantial loss of tax and other
revenue include the following disaster-related factors:
    (i) Whether the disaster caused a large enough reduction in cash
receipts from normal revenue sources, excluding borrowing, which
affects significantly and adversely the level and/or categories of
essential services provided prior to the disaster;
    (ii) Whether the disaster caused a revenue loss of over 5 percent
of total revenue estimated for the fiscal year in which the disaster
occurred or for the succeeding fiscal year.
    (3) Demonstrated need for financial assistance. The local
government must demonstrate a need for financial assistance in order to
perform essential governmental functions. The criteria used in making
this determination may include some or all of the following factors:
    (i) Whether there are sufficient funds to meet current fiscal year
operating requirements;
    (ii) Whether there is availability of cash or other liquid assets
from the prior fiscal year;
    (iii) Current financial condition considering projected
expenditures for governmental services and availability of other
financial resources;
    (iv) Ability to obtain financial assistance or needed revenue from
State and other Federal agencies for direct program expenditures;
    (v) Debt ratio (relationship of annual receipts to debt service);
    (vi) Displacement of revenue-producing business due to property
destruction;
    (vii) Necessity to reduce or eliminate essential services; and
    (viii) Danger of municipal insolvency.

Sec.  206.374  Loan application.

    (a) Application. (1) The local government shall submit an
application for a Special Community Disaster Loan through the GAR. The
loan must be justified on the basis of need and shall be based on the
actual and projected expenses, as a result of the disaster, for the
fiscal year in which the disaster occurred and for the 3 succeeding
fiscal years. The loan application shall be prepared by the affected
local government and be approved by the GAR. FEMA has determined that a
local government, in applying for a loan as a result of having suffered
a substantial loss of tax and other revenue as a result of a major
disaster, is not required to first seek credit elsewhere (see Sec.
206.377(c)).
    (2) The State exercises administrative authority over the local
government's application. The State's review should include a
determination that the applicant is legally qualified, under State law,
to assume the proposed debt, and may include an overall review for
accuracy of the submission. The GAR may request the Regional Director
to waive the requirement for a State review if an otherwise eligible
applicant is not subject to State administration authority and the
State cannot legally participate in the loan application process.
    (b) Financial requirements. (1) The loan application shall be
developed from financial information contained in the local
government's annual operating

budget (see paragraph (b)(2) of this section) and shall include a
Summary of Revenue Loss and Unreimbursed Disaster-Related Expenses, a
Statement of the Applicant's Operating Results--Cash Position, and
certification and assurances requested by the Associate Director.
    (i) Copies of the local government's financial reports (Revenue and
Expense and Balance Sheet) for the 3 fiscal years immediately prior to
the fiscal year of the disaster and the applicant's most recent
financial statement must, unless impracticable, accompany the
application. The local government's financial reports to be submitted
are those annual (or interim) consolidated and/or individual official
annual financial presentations for the General Fund and all other funds
maintained by the local government.
    (ii) Each application for a Special Community Disaster Loan must
also include:
    (A) A statement by the local government identifying each fund (i.e.
General Fund, etc.) which is included as its annual Operating budget,
and
    (B) A copy of the pertinent State statutes, ordinances, or
regulations which prescribe the local government's system of budgeting,
accounting and financial reporting, including a description of each
fund account.
    (2) Operating budget. For loan application purposes, the operating
budget is that document or documents approved by an appropriating body,
which contains an estimate of proposed expenditures, other than capital
outlays for fixed assets for a stated period of time, and the proposed
means of financing the expenditures.
    (3) Operating budget increases. Budget increases due to increases
in the level of, or additions to, municipal services not rendered at
the time of the disaster or not directly related to the disaster shall
be identified.
    (4) Revenue and assessment information. The applicant shall provide
information concerning its method of tax assessment including
assessment dates and the dates payments are due.
    (5) Estimated disaster-related expense. Unreimbursed disaster-
related expenses of a municipal operating character should be
estimated.
    (c) Federal review. (1) The Associate Director or designee shall
approve a Special Community Disaster Loan to the extent it is
determined that the local government has suffered a substantial loss of
tax and other revenues and demonstrates a need for financial assistance
as the result of the disaster to provide essential municipal services.
    (2) Resubmission of application. If a loan application is
disapproved, in whole or in part, by the Associate Director because of
inadequacy of information, a revised application may be submitted by
the local government within sixty days of the date of the disapproval.
Decision by the Associate Director on the resubmission is final.
    (d) Special Community Disaster Loan. (1) The loan shall not exceed
the lesser of:
    (i) The amount of projected revenue loss plus the projected
unreimbursed disaster-related expenses of a municipal operating
character for the fiscal year of the major disaster and the subsequent
3 fiscal years, or
    (ii) 25 percent of the local government's annual operating budget
for the fiscal year in which the disaster occurred.
    (2) Promissory note. (i) Upon approval of the loan by the Associate
Director or designee, he or she, or a designated Loan Officer will
execute a Promissory Note with the applicant. The Note must be co-
signed by the State (see paragraph (d)(2)(ii) of this section). The
applicant should indicate its funding requirements on the Schedule of
Loan Increments on the Note.
    (ii) If the State cannot legally cosign the Promissory Note, the
local government must pledge collateral security, acceptable to the
Associate Director, to cover the principal amount of the Note. The
pledge should be in the form of a resolution by the local governing
body identifying the collateral security.
    (e) Waiver of requirements. Notwithstanding any other provision of
this or other sections promulgated pursuant to Public Law 109-88, the
Associate Director may, upon the request of an applicant or loan
recipient, waive any specific application requirement or financial
reporting requirement (see, e.g., Sec.  206.375(a)(2)) upon a finding
by the Associate Director that the effects of the major disaster
prevent the applicant from fulfilling the application requirement and
that waiving the requirements would be consistent with the purposes of
the Community Disaster Loan Act of 2005.

Sec.  206.375  Loan administration.

    (a) Funding. (1) FEMA will disburse funds to the local government
when requested, generally in accordance with the Schedule of Loan
Increments in the Promissory Note. As funds are disbursed, interest
will accrue against each disbursement.
    (2) When each incremental disbursement is requested, the local
government shall submit a copy of its most recent financial report (if
not submitted previously) for consideration by FEMA in determining
whether the level and frequency of periodic payments continue to be
justified. The local government shall also provide the latest available
data on anticipated and actual tax and other revenue collections.
Desired adjustments in the disbursement schedule shall be submitted in
writing at least 10 days prior to the proposed disbursement date in
order to ensure timely receipt of the funds.
    (b) Financial management. (1) Each local government with an
approved Special Community Disaster Loan shall establish necessary
accounting records, consistent with local government's financial
management system, to account for loan funds received and disbursed and
to provide an audit trail.
    (2) FEMA auditors, State auditors, the GAR, the Regional Director,
the Associate Director, the Department of Homeland Security Inspector
General, and the Comptroller General of the United States or their duly
authorized representatives shall, for the purpose of audits and
examination, have access to any books, documents, papers, and records
that pertain to Federal funds, equipments, and supplies received under
Sec. Sec.  206.370 through 206.377.
    (c) Loan servicing. (1) The applicant annually shall submit to FEMA
copies of its annual financial reports (operating statements, balance
sheets, etc.) for the fiscal year of the major disaster, and for each
of the 3 subsequent fiscal years.
    (2) FEMA will review the loan periodically. The purpose of the
reevaluation is to determine whether projected revenue losses,
disaster-related expenses, operating budgets, and other factors have
changed sufficiently to warrant adjustment of the scheduled
disbursement of the loan proceeds.
    (3) FEMA shall provide each loan recipient with a loan status
report on a quarterly basis. The recipient will notify FEMA of any
changes of the responsible municipal official who executed the
Promissory Note.
    (d) Inactive loans. If no funds have been disbursed from the loan
program, and if the local government does not anticipate a need for
such funds, the note may be cancelled at any time upon a written
request through the State and Regional Office to FEMA.

Sec.  206.376  [Reserved]

Sec.  206.377  Loan repayment.

    (a) Prepayments. The local government may make prepayments against
loan at any time without any prepayment penalty.

    (b) Repayment. Loan funds become due and payable in accordance with
the terms and conditions of the Promissory Note. The note shall include
the following provisions:
    (1) The term of a loan made under this program is 5 years, unless
extended by the Associate Director. Interest will accrue on outstanding
cash from the actual date of its disbursement by FEMA or FEMA's
designated Disbursing Agency.
    (2) The interest amount due will be computed separately for each
Treasury disbursement as follows: I = P X R X T, where I = the amount
of simple interest, P = the principal amount disbursed; R = the
interest rate of the loan; and, T = the outstanding term in years from
the date of disbursement to date of repayment, with periods less than 1
year computed on the basis of 365 days/year.
    (3) Each payment made against the loan will be applied first to the
interest computed to the date of the payment, and then to the
principal. Prepayments of scheduled installments, or any portion
thereof, may be made at any time and shall be applied to the
installments last to become due under the loan and shall not affect the
obligation of the borrower to pay the remaining installments.
    (4) The Associate Director may defer payments of principal and
interest for up to five years. However, interest will continue to
accrue.
    (5) Any costs incurred by the Federal Government in collecting the
note shall be added to the unpaid balance of the loan, bear interest at
the same rate as the loan, and be immediately due without demand.
    (6) In the event of default on this note by the borrower, the FEMA
claims collection officer will take action to recover the outstanding
principal plus related interest under Federal debt collection
authorities, including administrative offset against other Federal
funds due the borrower and/or referral to the Department of Justice for
judicial enforcement and collection.
    (c) Additional time. In unusual circumstances involving financial
hardship, the local government may request an additional period of time
beyond the original 10 year term to repay the indebtedness. Such
request may be approved by the Associate Director subject to the
following conditions:
    (1) The local government must submit documented evidence that it
has applied for the same credit elsewhere and that such credit is not
available at a rate equivalent to the current Treasury rate.
    (2) The principal amount shall be the original principal plus
related interest less any payments made.
    (3) The interest rate shall be the Treasury rate in effect at the
time the new Promissory Note is executed but in no case less than the
original interest rate. A reduced rate may not be applied if was it was
not previously applied to the loan.
    (4) The term of the new Promissory Note shall be for the settlement
period requested by the local government but not greater than 10 years
from the date the new note is executed.

Sec.  Sec.  206.378--206.389  [Reserved]

    Dated: October 14, 2005.
R. David Paulison,
Acting Director, Emergency Preparedness and Response, Federal Emergency
Management Agency, Department of Homeland Security.
[FR Doc. 05-20920 Filed 10-17-05; 8:45 am]

BILLING CODE 4410-10-P