[Federal Register Volume 80, Number 218 (Thursday, November 12, 2015)]
[Proposed Rules]
[Pages 70115-70143]
[FR Doc No: 2015-28570]

Vol. 80

Thursday,

No. 218

November 12, 2015

Part III

Department of Homeland Security

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Federal Emergency Management Agency

44 CFR Part 206

Factors Considered When Evaluating a Governor's Request for Individual
Assistance for a Major Disaster; Proposed Rule

Federal Register / Vol. 80 , No. 218 / Thursday, November 12, 2015 /
Proposed Rules

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Part 206

[Docket ID FEMA-2014-0005]
RIN 1660-AA83

Factors Considered When Evaluating a Governor's Request for
Individual Assistance for a Major Disaster

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: FEMA proposes to revise its regulations to comply with Section
1109 of the Sandy Recovery Improvement Act of 2013 which requires FEMA,
in cooperation with State, local, and Tribal emergency management
agencies, to review, update, and revise through rulemaking the
Individual Assistance factors FEMA uses to measure the severity,
magnitude, and impact of a disaster.

DATES: Comments must be received on or before January 11, 2016.

ADDRESSES: You may submit comments, identified by docket ID FEMA-2014-
0005, by one of the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the
instructions for submitting comments.
    Mail/Hand Delivery/Courier: Regulatory Affairs Division, Office of
Chief Counsel, 500 C Street SW., 8NE, Washington, DC 20472-3100.
    Instructions: All submissions received must include the agency name
and docket ID. Regardless of the method used for submitting comments or
material, all submissions will be posted, without change, to the
Federal e-Rulemaking Portal at http://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 via the Privacy Notice link on the homepage of
http://www.regulations.gov.
    Docket: For access to the docket to read background documents or
comments received, go to the Federal eRulemaking Portal at http://www.regulations.gov, click on ``Advanced Search,'' then enter ``FEMA-
2014-0005'' in the ``By Docket ID'' box, then select ``FEMA'' under
``By Agency,'' and then click ``Search.'' Submitted comments may also
be inspected at the Office of Chief Counsel, Federal Emergency
Management Agency, 500 C Street SW., 8NE, Washington, DC 20472-3100.

FOR FURTHER INFORMATION CONTACT: Mark Millican, FEMA, Individual
Assistance Division, 500 C Street SW., Washington, DC 20472-3100,
(phone)<PHONE_NUMBER> or (email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Table of Contents

I. Public Participation
II. Executive Summary
    A. Purpose of the Regulatory Action
    1. The Need for the Regulatory Action and How the Action Will
Meet the Need
    2. Legal Authority
    B. Summary of Major Provisions
III. Background
    A. The Federal Disaster Declaration Process
    1. Preliminary Damage Assessment (PDA)
    2. State's Submission of Its Declaration Request to FEMA
    3. FEMA's Analysis and Recommendation to the President
    4. Approval or Denial of the Declaration Request
    5. Types of Assistance Approved Under the Declaration Request
    B. Sandy Recovery Improvement Act of 2013
    C. FEMA's Outreach Efforts Required by the Sandy Recovery
Improvement Act
    1. The Role of Voluntary, Faith, and Community Based
Organizations During Disasters
    2. The Correlation Between the Population Size of a State and
Its Capability To Recover
    3. Issues With Widespread Damage and Contiguous States
    4. Impact on Businesses
    5. Decoupling Individual Assistance Programs
    6. Impacts to Community
    7. Linking Individual Assistance Declarations With Public
Assistance Estimated Cost Factor
    8. Thresholds
    9. Insurance
    10. Homes in Foreclosure
    11. Incentives for State Sponsored IA Programs
IV. Discussion of the Proposed Rule
    A. 44 CFR 206.48--Paragraph (b)(1) State Fiscal Capacity and
Resource Availability
    B. 44 CFR 206.48--Paragraph (b)(2) Uninsured Home and Personal
Property Losses
    C. 44 CFR 206.48--Paragraph (b)(3) Disaster Impacted Population
Profile
    D. 44 CFR 206.48--Paragraph (b)(4) Impact to Community
Infrastructure
    E. 44 CFR 206.48--Paragraph (b)(5) Casualties
    F. 44 CFR 206.48--Paragraph (b)(6) Disaster Related Unemployment
    G. Principal Factors for Evaluating the Need for the Individuals
and Households Program
V. Regulatory Analysis
    A. Executive Order 12866, Regulatory Planning and Review and
Executive Order 13563, Improving Regulation and Regulatory Review
    1. Executive Summary & A-4 Accounting Statement
    2. Need for Regulatory Action
    3. Affected Population
    4. Current Baseline and Changes From Proposed Rule
    5. Impacts to Costs, Benefits, and Transfer Payments
    a. State Costs
    b. Federal Costs
    c. Benefits
    d. Transfer Payments
    9. Cumulative Impact of the Proposed Rule
    10. Marginal Analysis of the Proposed Factors
    11. Regulatory Alternatives
    a. Voluntary, Faith and Community Based Organizations Resources
    b. Maintain the 44 CFR 206.48(b)(6) Table
    c. Automatically Trigger Contiguous Counties and States
    d. Considering Negative Impact on Businesses
    e. Linking Individual Assistance Cost Factor With Public
Assistance Cost Factor
    f. Use of Factor Thresholds
    g. Homes in Foreclosure
    h. Do Not Include Fiscal Capacity Indicators
    i. Do Not Include State Resources Indicators
    B. Regulatory Flexibility Act
    C. Unfunded Mandates Reform Act of 1995
    D. National Environmental Policy Act
    E. Paperwork Reduction Act of 1995
    F. Privacy Act
    G. Executive Order 13175, Consultation and Coordination With
Indian Tribal Governments
    H. Executive Order 13132, Federalism
    I. Executive Order 11988, Floodplain Management
    J. Executive Order 11990, Protection of Wetlands
    K. Executive Order 12898, Environmental Justice
    L. Congressional Review of Agency Rulemaking

I. Public Participation

    We encourage you to participate in this rulemaking by submitting
comments and related materials. We will consider all comments and
material received during the comment period.
    If you submit a comment, identify the agency name and the docket ID
for this rulemaking, indicate the specific section of this document to
which each comment applies, and give the reason for each comment. You
may submit your comments and material by electronic means, mail, or
delivery to the address under the ADDRESSES section. Please submit your
comments and material by only one means.
    Regardless of the method used for submitting comments or material,
all submissions will be posted, without change, to the Federal e-
Rulemaking Portal at http://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 via a link on the homepage of
www.regulations.gov.
    Viewing comments and documents: For access to the docket to read
background documents or comments received, go to the Federal e-
Rulemaking Portal at http://www.regulations.gov. Background documents
and submitted comments may also be inspected at the Office of Chief
Counsel, Federal Emergency Management Agency, 500 C Street SW., 8NE,
Washington, DC 20472-3100.

II. Executive Summary

A. Purpose of the Regulatory Action

1. The Need for the Regulatory Action and How the Action Will Meet the
Need
    On January 29, 2013, the President signed the Sandy Recovery
Improvement Act of 2013 (SRIA) into law (Pub. L. 113-2). Section 1109
of SRIA requires FEMA in cooperation with State, local, and Tribal
emergency management agencies, to review, update, and revise through
rulemaking the factors found at 44 CFR 206.48 that FEMA uses to
determine whether to recommend provision of Individual Assistance (IA)
during a major disaster. These factors help FEMA measure the severity,
magnitude, and impact of a disaster.
    FEMA is proposing this rule to comply with SRIA and to provide
clarity on the IA declaration factors that FEMA currently considers in
support of its recommendation to the President on whether a major
disaster declaration authorizing IA is warranted. The additional
clarity may reduce delays in the declaration process by decreasing the
back and forth between States and FEMA in the declaration process. FEMA
is also proposing new factors on Fiscal Capacity and Resource
Availability to provide additional context on potential disaster
situations. The proposed rule would also satisfy the requirements
outlined above in Section 1109 of SRIA.
2. Legal Authority
    FEMA has authority for this proposed rule pursuant to the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (Stafford Act).
42 U.S.C. 5121 et seq. Section 401 of the Stafford Act lays out the
procedures for a declaration for FEMA's major disaster assistance
programs when a catastrophe occurs in a State. The specific changes
proposed by this NPRM are intended to comply with Section 1109 of the
Sandy Recovery Improvement Act of 2013. Public Law 113-2.

B. Summary of Major Provisions

    FEMA proposed to revise the factors found at 44 CFR 206.48 that
FEMA uses to determine whether to recommend provision of Individual
Assistance during a major disaster. The current factors found at 44 CFR
206.48 for Individual Assistance include the following factors: (1)
Concentration of Damages, (2) Trauma, (3) Special Populations, (4)
Voluntary Agency Assistance, (5) Insurance, and (6) Average Amount of
Individual Assistance by State.
    FEMA is proposing to revise the current factors by providing
additional clarity regarding the considerations FEMA evaluates when
making a recommendation on whether Individual Assistance is warranted
for a major disaster declaration. FEMA is proposing to revise 44 CFR
206.48 to include the following factors: (1) State Fiscal Capacity and
Resource Availability, (2) Uninsured Home and Personal Property Losses,
(3) Disaster Impacted Population Profile, (4) Impact to Community
Infrastructure, (5) Casualties, and (6) Disaster Related Unemployment.
As is currently the practice, FEMA will continue to use a myriad of
factors and data to formulate its recommendations to the President on
major disaster declarations that authorize IA. No single data point or
factor would determine on its own FEMA's ultimate recommendation nor
would any single factor necessarily affect the President's ultimate
determination of whether a major disaster declaration authorizing IA is
warranted. FEMA purposely declined to be more specific in areas of the
proposed rule so that FEMA does not limit Presidential discretion for
declaring a major disaster declaration that authorized Individual
Assistance because the parameters for a major disaster declaration can
change from Administration to Administration. FEMA wants to ensure that
we retain as much flexibility as possible so that we can conform to
what the President wants in their disaster declaration recommendations.
The proposed factors would not limit the President's discretion
regarding major disaster declarations.

III. Background

A. The Federal Disaster Declaration Process

    When a catastrophe occurs in a State, the State's Governor may
request a Presidential declaration of a major disaster \1\ pursuant to
Section 401 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (Stafford Act). 42 U.S.C. 5170; 44 CFR 206.36(a). Such a
request must be based on a finding that the disaster is of such
severity and magnitude that an effective response is beyond the
capabilities of the State and the affected local governments and that
Federal assistance is necessary. 42 U.S.C. 5170.
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    \1\ A major disaster is any natural catastrophe (including any
hurricane, tornado, storm, high water, wind driven water, tidal
wave, tsunami, earthquake, volcanic eruption, landslide, mudslide,
snowstorm, or drought), or, regardless of cause, any fire, flood, or
explosion, in any part of the United States, which in the
determination of the President causes damage of sufficient severity
and magnitude to warrant major disaster assistance under this Act to
supplement the efforts and available resources of States, local
governments, and disaster relief organizations in alleviating the
damage, loss, hardship, or suffering caused thereby. 42 U.S.C. 5122;
44 CFR 206.2(17).
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    The capacity to respond to a catastrophe varies from State to
State. The initial decision on whether supplemental Federal assistance
is necessary for a State responding to and recovering from a natural
disaster lies with each State. The basis for any State request for a
major disaster declaration must be a finding that (1) the situation is
of such severity and magnitude that an effective response is beyond the
capacities of the State and affected local governments, and (2) Federal
assistance under the Stafford Act is necessary to supplement the
efforts and available resources of the State, local governments,
disaster relief organizations, and compensations by insurance for
disaster-related losses. 44 CFR 206.36(b)(1)-(2).
    The President's declaration may authorize various types of Federal
assistance, falling under three main program areas: Public Assistance,
Individual Assistance (IA), and Hazard Mitigation. Public Assistance
provides supplemental Federal disaster grant assistance for debris
removal, emergency protective measures, and the repair, replacement, or
restoration of disaster-damaged, publicly owned facilities and the
facilities of certain Private Non-Profit organizations. Individual
Assistance provides financial or direct assistance to individuals and
households who have been injured or whose property has been damaged or
destroyed as a result of a Federally-declared disaster, and whose
losses are not covered by insurance or other means. Additionally, a
declaration authorizing Individual Assistance may authorize crisis
counseling, disaster case management, disaster unemployment assistance,
and disaster legal services.

The Hazard Mitigation Grant Program provides grants to States and local
governments to implement long term hazard mitigation measures after a
major disaster declaration. FEMA's regulations at 44 CFR part 206
Subpart B describe the process leading to a Presidential declaration of
a major disaster and the actions triggered by such a declaration. 44
CFR 206.31.
1. Preliminary Damage Assessment (PDA)
    An initial step in the major disaster declaration process is the
preliminary damage assessment (PDA). The PDA is used to determine the
impact and magnitude of damage and the resulting unmet needs of
individuals, businesses, the public sector, and the community as a
whole. 44 CFR 206.33. When the State official responsible for disaster
operations determines that an event may be beyond the capabilities of
the State and local government to respond, the State will request that
the FEMA Regional Administrator perform a joint FEMA-State PDA. 44 CFR
206.33(a). A damage assessment team is formed, which is composed of at
least one representative of the Federal government and one
representative of the State. 44 CFR 206.33(b). A local government
representative familiar with the extent and location of damage in the
community is also included if possible. 44 CFR 206.33(b). Other State
and Federal agencies, and voluntary relief organizations may also be
asked to participate, as needed. 44 CFR 206.33(b). A FEMA official will
brief team members on damage criteria, the kind of information to be
collected for the particular incident, and reporting requirements. 44
CFR 206.33(b).
    The length of time required to conduct a PDA varies based upon the
circumstances of the event. In large disasters, a major disaster
declaration may be made prior to completing a PDA, in which case a
damage assessment is conducted following the declaration in order to
determine additional program needs. Damage that is widespread may take
considerably longer to verify than damage in a concentrated area, as
there is a greater geographic area to assess. Certain types of
disasters such as flooding, or disasters affecting remote or isolated
areas, may slow PDAs down due to limited accessibility. Depending on
the above circumstances, a PDA can take anywhere from a day or two to a
week or more. On average, a PDA can be completed within a week. At the
close of the PDA, FEMA consults with State officials to discuss
findings and reconcile any differences. 44 CFR 206.33(c).
2. State's Submission of Its Declaration Request to FEMA
    During or at the close of the PDA, the Governor of a State submits
the request for a major disaster declaration through the appropriate
FEMA Regional Administrator. 44 CFR 206.36. The request must be
submitted within 30 days of the occurrence of the incident in order to
be considered. 44 CFR 206.36(a). The basis for the request must be a
finding that (1) the situation is of such severity and magnitude that
an effective response is beyond the capabilities of the State and
affected local governments, and (2) Federal assistance under the
Stafford Act is necessary to supplement the efforts and available
resources of the State, local governments, disaster relief
organizations, and compensation by insurance for disaster-related
losses. 44 CFR 206.36(b)(1)-(2). In addition, the request must include:
Confirmation that the Governor has taken appropriate action under State
law and directed the execution of the State emergency plan; an estimate
of the amount and severity of damages and losses stating the impact of
the disaster on the public and private sectors; information describing
the nature and amount of State and local resources which have been or
will be committed to alleviate the results of the disaster; preliminary
estimates of the types and amount of supplementary Federal disaster
assistance needed under the Stafford Act; and certification by the
Governor that State and local government obligations and expenditures
for the current disaster will comply with all applicable cost sharing
requirements of the Stafford Act. 44 CFR 206.36(c)(1)-(5).
3. FEMA's Analysis and Recommendation to the President
    Upon receipt of the Governor's request, the FEMA Regional
Administrator provides written acknowledgement of the request. 44 CFR
206.37(a). Based on information obtained by the PDA and consultations
with appropriate State and Federal officials and other interested
parties, the FEMA Regional Administrator promptly prepares a summary of
the PDA findings, analyzes the data, and submits a recommendation to
FEMA Headquarters. 44 CFR 206.37(b). This Regional Analysis must
include a discussion of State and local resources and capabilities and
other assistance available to meet the major disaster-related needs. 44
CFR 206.37(b).
    Based on all available information, the FEMA Administrator
formulates a recommendation which is forwarded to the President with
the Governor's request. 44 CFR 206.37(c). A recommendation for a major
disaster declaration is based on a finding that the situation is or is
not of such severity and magnitude as to be beyond the capabilities of
the State and its local governments, and must include a determination
of whether or not supplemental Federal assistance \2\ under the
Stafford Act is necessary and appropriate. 44 CFR 206.37(c)(1). In
developing a recommendation, FEMA considers factors such as the amount
and type of damages; the impact of damages on affected individuals, the
State, and local governments; the available resources of the State and
local governments, and other disaster relief organizations; the extent
and type of insurance in effect to cover losses; assistance available
from other Federal programs and other sources; imminent threats to
public health and safety; recent disaster history in the State; hazard
mitigation measures taken by the State or local governments, especially
implementation of measures required as a result of previous major
disaster declarations; and other factors pertinent to a given incident.
44 CFR 206.37(c)(1). When preparing its recommendation for Individual
Assistance in particular, FEMA considers specific factors described in
44 CFR 206.48(b).
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    \2\ The supplemental nature of Federal disaster assistance is a
longstanding principle of emergency management and disaster response
in this country. After any event, the local officials are the first
to respond, by nature of their proximity to the event and knowledge
of the area and circumstances. If additional resources are needed,
the State then steps in to assist. Once those resources are
overwhelmed, or it is clear that they will be overwhelmed, the
Governor may request a major disaster declaration. 44 CFR 206.36(a).
In the event of a declaration, State and local officials continue to
lead their respective response and recovery missions, with Federal
support provided under the Stafford Act.
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4. Approval or Denial of the Declaration Request
    Upon completion of its recommendation, FEMA forwards it to the
President along with the Governor's request. The Governor's request may
result in either a Presidential declaration of a major disaster or an
emergency, or denial of the Governor's request. 44 CFR 206.38(a). The
Governor will be promptly notified by the FEMA Administrator of a
declaration by the President that a major disaster exists, or that the
Governor's request does not justify the use of the authorities of the
Stafford Act. 44 CFR 206.39. A State may appeal a denial of declaration
request within 30 days after the date of the letter denying the
request. 44 CFR 206.46(a).

5. Types of Assistance Approved Under the Declaration Request
    A major disaster declaration will include the types of assistance
that are authorized under the declaration, 44 CFR 206.40(a), although
other types may be authorized later, 44 CFR 206.40(c). The types of
assistance authorized under the declaration are based upon whether the
damage involved and its effects are of such severity and magnitude as
to be beyond the response capabilities of the State, the affected local
governments, and other potential recipients of supplementary Federal
assistance. 44 CFR 206.40(a). A major disaster declaration may
authorize all, or only particular types of, supplementary Federal
assistance requested by the Governor. 44 CFR 206.40(a). As noted above,
when evaluating requests for Individual Assistance, FEMA considers the
factors under 44 CFR 206.48(b) to determine whether supplemental
Federal Individual Assistance is warranted.
    A major disaster declaration authorizing Individual Assistance may
include any or all of the following programs:
    Individuals and Households Program: The Individuals and Households
Program (IHP) provides grants, direct assistance, or both to eligible
disaster survivors who have necessary expenses and serious needs that
they are unable to meet through other means, such as insurance. 44 CFR
206.110-120. This help may be in the form of housing assistance
(including Temporary Housing, Repair, Replacement, and Semi-Permanent
or Permanent Housing Construction) as well as assistance to meet
``other needs'' such as medical, dental, child care, funeral, personal
property, and transportation costs.
    Crisis Counseling Program: The Crisis Counseling Program (CCP)
assists individuals and communities recovering from the effects of a
natural or human caused disaster through the provision of community
based outreach and psycho-educational services. 44 CFR 206.171.
Supplemental Federal funding for crisis counseling is available to the
State through two grant mechanism: (1) Immediate Services Program,
which provides funds for up to 60 days of services immediately
following a disaster declaration; and (2) the Regular Services Program,
which provides funds for up to nine months following a disaster
declaration.
    Disaster Case Management Program: The Disaster Case Management
Program (DCMP) is a program that involves a partnership between a
disaster case manager and a survivor to develop and carry out a
Disaster Recovery Plan. 42 U.S.C. 5189d. The process involves an
assessment of the survivor's verified disaster caused unmet needs,
development of a goal oriented plan that outlines the steps necessary
to achieve recovery, organization and coordination of information on
available resources that match the disaster caused unmet need,
monitoring of progress towards the recovery plan goals and, when
necessary, client advocacy.
    Disaster Legal Services: Disaster Legal Services provides legal
assistance to low income individuals who, prior to or as a result of
the disaster, are unable to secure legal services adequate to meet
their disaster related needs. 44 CFR 206.164. FEMA, through an
agreement with the Young Lawyers Division of the American Bar
Association, provides free legal help for disaster survivors.
    Disaster Unemployment Assistance: Disaster Unemployment Assistance
(DUA) provides unemployment benefits and re-employment services to
individuals who have become unemployed as a result of a major disaster
and who are not eligible for regular State unemployment insurance. 44
CFR 206.141.

B. Sandy Recovery Improvement Act of 2013

    On January 29, 2013, the President signed the Sandy Recovery
Improvement Act of 2013 (SRIA) into law (Pub. L. 113-2). Section 1109
of SRIA requires FEMA, in cooperation with State, local, and Tribal
emergency management agencies, to review, update, and revise through
rulemaking the factors found at 44 CFR 206.48 that FEMA uses to
determine whether to recommend provision of Individual Assistance
during a major disaster. These factors help FEMA measure the severity,
magnitude, and impact of a disaster.
    Congress directed FEMA to review, update, and revise these factors,
including 44 CFR 206.48(b)(2) related to trauma and the specific
conditions or losses that contribute to trauma, to provide more
objective criteria for evaluating the need for assistance to
individuals, to clarify the threshold for eligibility, and to speed a
declaration of a major disaster or emergency \3\ under the Stafford
Act. Pursuant to SRIA, this rulemaking must be completed by January 29,
2014. Although the necessary process to revise the factors is not yet
complete, FEMA intends to complete this process as expeditiously as
possible.
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    \3\ The factors that FEMA considers to evaluate the need for
assistance to individuals under the Stafford Act are at 44 CFR
206.48. FEMA uses these factors to evaluate a governor's request for
a declaration of a major disaster, not an emergency. SRIA Section
1109 states that FEMA must review, update, and revise the factors in
44 CFR 206.48(b). The factors that FEMA uses to evaluate a
governor's request for emergency assistance, however, are not
provided in 44 CFR 206.48(b) or in FEMA's regulations. Therefore,
the scope of this rulemaking will apply only to Individual
Assistance factors that FEMA considers when evaluating a Governor's
request for a major disaster declaration. Section 502 of the
Stafford Act authorizes FEMA to provide IHP assistance as part of an
emergency declaration. FEMA has previously considered some of the
factors found at 206.48(b) when considering an emergency declaration
request that includes IHP assistance. FEMA will continue to consider
some of the factors, when applicable, at 44 CFR 206.48(b) when
evaluating an emergency declaration request that includes IHP
assistance.
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    SRIA also authorized, among other things, the option for Federally
recognized Indian Tribal governments to make a request directly to the
President for a Federal emergency or major disaster declaration. FEMA
will implement this provision of SRIA in a separate rulemaking.

C. FEMA's Outreach Efforts Required by the Sandy Recovery Improvement
Act

    Section 1109 of SRIA requires FEMA to cooperate with State, local,
and Tribal emergency management agencies during the process of
reviewing, updating, and revising the factors found at 44 CFR
206.48(b). FEMA conducted outreach with stakeholders, including
meetings with the National Emergency Managers Association, the
International Association of Emergency Managers, the National Advisory
Council, FEMA regional offices, and Tribal governments (hereinafter
``stakeholder group''). The stakeholder group had widespread
participation from individuals involved in emergency management at the
State, local, and tribal levels. These outreach efforts were conducted
from February 2013 through May 2013 and consisted of in-person
conferences and conference calls. During this outreach, a series of
themes emerged from the members of the stakeholder group which are
discussed below.
1. The Role of Voluntary, Faith, and Community Based Organizations
During Disasters
    Many in the stakeholder group felt that the consideration of
services and benefits provided by voluntary, faith-based, and
community-based organizations during a disaster should not continue to
serve as an indicator for when supplemental Federal assistance is
warranted. The stakeholders felt that voluntary, faith-based, and
community-based organization involvement may not be available at the
time of a disaster declaration and those organizations do

not provide funding for the rebuilding or replacement of houses. FEMA
currently considers, as an Individual Assistance factor, the extent to
which voluntary agencies and State or local programs can meet the needs
of disaster survivors. 44 CFR 206.48(b)(4). Voluntary, faith-based, and
community-based organizations are often among the first to respond to
an event. Following a disaster, voluntary, faith-based, and community-
based organizations mobilize to provide immediate assistance such as
food, clothing, shelter, cleaning supplies, comfort kits, first aid,
and medical care, as well as services including coordinating donations,
counseling, home repairs, and rebuilding. FEMA is proposing to continue
consideration of the resources made available by such organizations as
part of the new ``Resource Availability'' factor discussed below. FEMA
recognizes that the resources provided by the voluntary, faith-based,
and community-based organizations are typically not a long term
recovery solution for a disaster affected community and that these
organizations' financial capabilities are mostly donor-based and
dependent on the economic climate. FEMA also believes that information
on voluntary, faith-based, and community-based organizations is
valuable because it can enhance the picture of disaster needs at a
local, grass roots level and may either offset the need for, or reveal
a need for, supplemental Federal assistance.
2. The Correlation Between the Population Size of a State and Its
Capability To Recover
    Several members of the stakeholder group discouraged FEMA from
making a correlation between State population size and the capability
of that State to recover. More specifically, multiple members of the
stakeholder group expressed concern with the table in the current
regulations which provides the average amount of Individual Assistance
by State. See 206.48(b)(6). This table of averages does not set a
threshold for recommending Individual Assistance, but was intended as
guidance to States and voluntary agencies as they develop plans and
programs to meet the needs of disaster survivors. 44 CFR 206.48(b)(6).
    In developing this proposed rule, FEMA evaluated the utility of
this table. FEMA determined that the table should be removed because it
causes confusion among States, and may be viewed incorrectly as a
threshold for whether a State should request Individual Assistance. In
addition, the table is based on 1990 Census data, uses assistance
information from 1994-1999, and is based on the previous iteration of
the IHP which consisted of two separate programs: (1) The Temporary
Housing Assistance Program and (2) the Individual and Family Grant
Program. FEMA recognizes that there are many factors, including
population, that contribute to a State's capability to respond to and
recover from a disaster. FEMA is proposing several factors, discussed
below, that will be used in evaluating State capability.
3. Issues With Widespread Damage and Contiguous States
    Current 44 CFR 206.48(b)(1) notes that high concentrations of
damages generally indicate a greater need for Federal assistance than
widespread and scattered damages throughout a State. Stakeholders were
concerned that the cost of widespread minimal damage across counties
within a State may not be appropriately considered within the
concentration of damage factor. The stakeholders wanted greater
consideration to widespread events that are costly. FEMA recognizes
that as a practical matter, widespread minimal damage spread across a
larger geographic area, can overwhelm a State's capability to
adequately respond to a disaster. Therefore, FEMA is proposing a
factor, discussed below, that will evaluate the estimated cost of
assistance for a State.
    In events where disasters cross state lines, several emergency
managers recommended that a major disaster declaration in one of the
States should automatically trigger a major disaster declaration in the
other affected State or States. The Stafford Act requires that a
Governor's request for a major disaster declaration is based on a
finding that the disaster is of such severity and magnitude to be
beyond the capabilities of the State and affected local governments. 42
U.S.C. 5170(a). FEMA's major disaster recommendation to the President
is based on this same finding. 44 CFR 206.37(c). Each State has
different capabilities to respond to, recover from, and mitigate the
effects of a disaster. Moreover a disaster that crosses state lines may
have differing impacts in the affected states. As such, it is unlikely
that every event that impacts multiple states will necessarily be
beyond each affected State's respective capabilities. Therefore, rather
than recommending that the President automatically declare a disaster
for each adjoining State affected by a disaster, FEMA proposes to
continue to base its major disaster declaration recommendation on the
capability of the affected State and local governments to respond to
the event, in accordance with the requirements for a major disaster
declaration in the Stafford Act.
4. Impact on Businesses
    Multiple members of the stakeholder group asked FEMA to consider
the impact of an incident on businesses. They believe that there is a
direct correlation between impacts on businesses and a community's
ability to recovery. As discussed below, FEMA is proposing revised IA
factors that consider the impact to businesses because the impacts of a
disaster on businesses may impede a community's ability to recover.
Business losses alone, however, will not result in a Presidential major
disaster declaration that authorizes IA because the IA grant programs
do not provide assistance to businesses. Instead, FEMA considers the
effect that business disruptions have on disaster survivors. For
example, some survivors may lose work or become unemployed due to a
disaster, and may otherwise be ineligible for standard unemployment
insurance benefits, thus showing an increased need for DUA.
    In addition, the Small Business Administration (SBA) has separate
statutory authority and programs, which may be available to assist
businesses absent a Presidential major disaster declaration.
5. Decoupling Individual Assistance Programs
    Several members of the stakeholder group suggested decoupling IA
programs so that States can request specific IA programs instead of
receiving a generic major disaster declaration that authorizes all IA
programs. The manner in which IA programs are requested and authorized
is outside the scope of this proposed rulemaking, which is to revise
the factors which FEMA uses to evaluate the need for IA. However,
current FEMA policy and practice already allows States to request all
IA programs or specific IA programs, as appropriate, via its
standardized form, Request for Presidential Disaster Declaration Major
Disaster or Emergency, OMB Control Number 1660-0009. This form allows
States to ``check off'' the IA programs they are requesting.
    Indeed, there have been recent major disaster declarations, which
authorized Disaster Unemployment Assistance and the Crisis Counseling
Program, without the other IA programs.\4\ These programs

meet specific needs in the disaster-impacted community that may be
unrelated to physical disaster damage. FEMA may consider recommending
authorization of these programs when they are needed, even in the
absence of authorization of the Individuals and Households Program,
which is generally directly tied to physical disaster damage.
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    \4\ For example South Dakota, DR-4155, Severe Winter Storm,
Snowstorm, and Flooding, Declared November 8, 2013 (DUA and CCP), 78
FR 72093; Colorado, DR-4134, Black Forest Wildfire, Declared July
26, 2013 (DUA and CCP), 78 FR 51204; Colorado, DR-4133, Royal Gorge
Wildfire, Declared July 26, 2013 (DUA only), 78 FR 51204.
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6. Impacts to Community
    FEMA received comments from the stakeholder group suggesting that
FEMA assess the impacts from a disaster to a community as a whole and
not just consider the damage that occurred to individual houses and
residences to determine the need for a major disaster declaration that
authorizes IA and the specific IA programs required. FEMA is
considering implementing this recommendation in the proposed factor
described below entitled, ``Impact to Community Infrastructure.'' FEMA
believes that by reporting and examining community impacts instead of
just individual residence impacts, FEMA and the State will have a
better understanding of the overall impact of the disaster on the lives
of individuals in the community and which IA programs would benefit
disaster survivors. As discussed in more detail below, significant
disruptions to important services such as transportation, schools,
child care, eldercare, or police services are likely to impede recovery
of that community and may be indicative of a heightened need for
Federal assistance. In addition, such impacts may show a specific need
for certain IA programs. For example, a community may have relatively
low damage impacts to individual residences but a large amount of the
community's infrastructure, such as schools or roads, may have been
destroyed. Such impacts can be quite traumatic to the community and may
suggest a need for specific IA programs such as the Crisis Counseling
Program, but not necessarily the Individuals and Households Program.
This information will assist FEMA in determining which IA programs to
approve when granting a major disaster declaration.
7. Linking Individual Assistance Declarations With Public Assistance
Estimated Cost Factor
    Some members of the stakeholder group suggested aligning the
financial indicators for IA and Public Assistance major disaster
declarations. Currently, FEMA uses the following factors to evaluate
the need for a Public Assistance major disaster declaration: Estimated
cost of assistance, localized impacts, insurance coverage, hazard
mitigation, recent multiple disasters, and programs of other Federal
assistance. These factors are focused almost entirely on the impact of
the event on State, local, and tribal governments, as well as certain
private non-profit organizations. Members of the stakeholder group
specifically identified the estimated cost of assistance factor as an
approach that could be applied to IA. Under this factor, FEMA evaluates
the estimated cost of Federal and non-federal public assistance against
the statewide population to give a measure of the per capita impact
within the State. 44 CFR 206.48(a)(1). That factor also establishes a
$1 million threshold, based on the proposition that even the smallest
population States have the capability to cover that level of public
assistance infrastructure damage. Under FEMA's current regulations,
there is no corresponding IA single indicator designed to evaluate the
total cost of the disaster against the capability of a requesting
State.
    FEMA agrees with the comments received from emergency managers that
the fiscal capacity of a State should be considered, but FEMA does not
agree that the Public Assistance per capita indicator measure should be
adopted for this purpose. Instead, as discussed below, FEMA proposes to
use Total Taxable Resources and Gross Domestic Product by State as
indicators of a State's fiscal capacity. For reasons discussed below,
FEMA believes that these indicators, calculated by the U.S. Department
of Treasury and the U.S. Commerce Department's Bureau of Economic
Analysis (BEA), are more appropriate for the purposes of evaluating a
State's fiscal capacity and its capability to meet the needs of
individuals after an event. In addition to Total Taxable Resources and
Gross Domestic Product by State, FEMA will consider the estimated cost
of assistance and States would also have the ability to submit other
information relevant to their fiscal capacity. FEMA's proposal of a
fiscal capacity factor is discussed further below.
8. Thresholds
    Some members of the stakeholder group indicated that they would
like a specific ``hard'' threshold that indicates whether a State would
be eligible to receive a major disaster declaration authorizing IA. The
stakeholders felt that if there was an established threshold it would
give States a clear idea of what level of damage and need the State
must have before requesting assistance. The stakeholders believed that
this would prevent States from spending the time compiling the data and
requesting a declaration when they have not sustained enough damage to
qualify for a major disaster declaration that authorizes IA.
    Section 320 of the Stafford Act prohibits the denial of assistance
to a geographic area based solely use of an arithmetic formula or a
sliding scale based on income or population. 42 U.S.C. 5163. Although
FEMA determined that any hard thresholds or inflexible formula would
offend the principles of Section 320,\5\ FEMA believes that a
systematic and objective approach using standardized factors is
important for making informed and consistent recommendations to the
President as well as enhancing predictability for a State when they
request IA. As discussed throughout section IV, FEMA is proposing to
use objective data from other Federal agencies to inform the overall
assessment of the request, but, in keeping with the principles of
Section 320 and recognizing that every disaster presents unique
circumstances, this data alone will not be independently dispositive of
whether FEMA recommends the need for IA.
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    \5\ As noted above, FEMA applies a $1 million minimum threshold
when evaluating requests for Public Assistance. This is based upon a
determination that even the smallest states can be expected to cover
that level of damage and that disaster assistance is intended to be
supplemental in nature. The minimum threshold is not a sliding scale
or an arithmetic formula, nor is it based on population or income.
Rather, it is related directly to the degree of damage only. As
such, there is no conflict with section 320 of the Stafford Act.
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9. Insurance
    Under its current regulations, FEMA considers the amount of
insurance coverage when evaluating the need for IA. 44 CFR
206.48(b)(5). FEMA received comments from the stakeholder group that
said that this insurance coverage factor could be viewed as a penalty
for people that have limited insurance or insurance that does not cover
the specific disaster damage. FEMA does not agree that the insurance
coverage factor penalizes disaster survivors for maintaining private
homeowner's insurance or flood insurance. FEMA's programs are not loss
indemnification programs. They do not ensure that an applicant is
returned to their pre-disaster living condition nor can they cover all
disaster-related losses. FEMA assistance is not as comprehensive as
insurance coverage and the amount of money that an insurance company
will

provide as a settlement is typically greater than the dollar amount of
assistance FEMA is legally permitted to provide.\6\ FEMA takes
insurance coverage into consideration under current 44 CFR 206.48(b)(5)
because, under the Stafford Act, Federal disaster assistance cannot
duplicate assistance from any source, including available insurance
proceeds. When evaluating this factor, FEMA considers the type of
disaster damage when determining whether there is insurance coverage.
For disaster survivors with insurance that does not cover the specific
disaster damage, their losses are considered uninsured.
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    \6\ For disasters occurring in Fiscal Year 2016 the maximum
amount of financial assistance provided to an individual or
household under section 408 of the Stafford Act (IHP) with respect
to any single emergency or major disaster is $33,000. See 80 FR
62086, Oct. 15, 2015. This amount is adjusted annually based on the
Consumer Price Index for All Urban Consumers as calculated by the
Department of Labor, Bureau of Labor Statistics.
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    Comments that FEMA received from the stakeholder group raised
additional concern with the insurance data that FEMA uses because it
can be inaccurate leading FEMA to under- or over-estimate the actual
insurance penetration rates \7\ within a community. FEMA currently
utilizes National Flood Insurance Program (NFIP) data to determine
insurance penetration rates for flood damages and Census data to
determine homeowners' insurance coverage percentages. FEMA uses the
percentage of owner-occupied homes with a mortgage based on Census data
to determine an insurance penetration rate. FEMA assumes that a home
with a mortgage would require home insurance coverage. FEMA is pursuing
additional resources beyond NFIP and Census data to verify insurance
penetration rates in order to have the most accurate insurance
information available. FEMA is requesting that stakeholders and the
public provide information and suggestions on potential sources of data
for the most accurate insurance information. FEMA will consider
suggestions during the development of the final rule.
---------------------------------------------------------------------------

    \7\ Insurance coverage rates and insurance penetration rates are
both currently captured in 44 CFR 206.48(b)(5). In the new proposed
regulation, both of these insurance rates will be captured at
206.48(b)(2)(vi).
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10. Homes in Foreclosure
    FEMA received comments from the stakeholder group related to homes
in foreclosure. Some commenters stated that if an area with a high
foreclosure rate is affected by a disaster, these foreclosed homes
without an owner could be a greater burden to the State in the recovery
process. FEMA considered this information and has preliminarily
concluded that foreclosure data should not be specified in our
evaluation factors. FEMA's IA programs do not provide any form of
assistance for foreclosed homes. Repair assistance is available only
for owner-occupied primary residences. As such, homes without an owner,
or homes owned by a bank or other creditor would not be eligible for
assistance. FEMA recognizes that high levels of foreclosure may be
associated with economic difficulties in the affected area that could
also negatively impact a community's ability to recover. However, FEMA
believes other factors including poverty level, pre-disaster
unemployment, and per capita personal income will be adequate
indicators of economic health in most circumstances. If a State
believes that homes in foreclosure will impact their capability to
respond to the disaster, then the State may articulate this concern in
the narrative portion of their declaration request. FEMA considers all
relevant information provided in a State's request. 44 CFR 206.48.
11. Incentives for State Sponsored IA Programs
    FEMA received comments from the stakeholder group stating that FEMA
should provide incentives for States to have their own IA programs.
Commenters stated that currently there is no consideration by FEMA of
the disasters that are paid for by States and that States should not be
penalized for having a program that assists its citizens during the
time it takes for PDAs to be completed and a major disaster declaration
authorized. FEMA agrees with the comments received from emergency
managers that any efforts or programs to help citizens by a State
should be considered. As discussed below in the ``Planning After Prior
Disasters'' factor, FEMA proposes to include consideration of any
planning and disaster relief programs a State establishes after a prior
disaster because States are ultimately responsible for the well-being
of their citizens and therefore should continuously evaluate and
improve their disaster planning and relief programs based on lessons
learned from previous disasters.

IV. Discussion of the Proposed Rule

    This rule proposes to implement Section 1109 of SRIA, which
requires FEMA to revise and update through rulemaking the Individual
Assistance factors that are used to make a major disaster
recommendation to the President. States are not required to provide
information on every single factor listed below; the amount of
information and data provided by each State is voluntary. However, the
failure of a State to provide sufficient evidence that supplemental
Federal assistance is necessary may result in a delay or possibly
denial of a request for a major disaster declaration authorizing IA.
    As is currently the practice, FEMA will continue to use a myriad of
factors and data to formulate its recommendations to the President on
major disaster declarations that authorize IA. No single data point or
factor would determine on its own FEMA's ultimate recommendation nor
would any single factor necessarily affect the President's ultimate
determination of whether a major disaster declaration authorizing IA is
warranted. The proposed factors would not limit the President's
discretion regarding major disaster declarations. FEMA reviewed the
current factors and proposes to revise the current factors as follows.

A. 44 CFR 206.48--Paragraph (b)(1) State Fiscal Capacity and Resource
Availability

    FEMA is proposing to add at 44 CFR 206.48(b)(1) a factor entitled
``State Fiscal Capacity and Resource Availability.'' The factors
discussed below will be used by FEMA to evaluate a State's fiscal
capacity to respond to a disaster as well as a State's available
resources that can or have been committed to the disaster recovery
process.
    Fiscal Capacity. FEMA is proposing to evaluate a State's fiscal
capacity to respond to and recover from a disaster in 44 CFR
206.48(b)(1)(i)(A)-(D). As discussed above, major disaster declarations
are based upon a finding that the event is of such severity and
magnitude that an effective response is beyond the capabilities of the
State and affected local governments. Economic conditions of the State
and affected local governments are clearly relevant to such a finding.
However, the current regulations do not specifically include
consideration of economic factors that could affect a State's
capability to respond to or recover from a disaster. The proposed data
points will help FEMA evaluate through independently calculated data
whether a State is financially overwhelmed and unable to adequately
respond to a disaster.
    In addition, the United States Government Accountability Office
(GAO) has suggested in multiple reports \8\ that FEMA should
incorporate

States' fiscal capacity into its considerations for recommendations on
disaster declarations to the President. The GAO reports have
historically focused on fiscal capacity in FEMA's Public Assistance
(PA) factor criteria, but changes to the PA criteria are outside the
scope of this proposed rule. FEMA believes that the same principle
applies to IA and PA, in that there is a need to assess a State's
capacity to respond and recover from a disaster on its own when
determining whether a major disaster declaration is warranted because
Federal assistance is supplemental. Each State's capacity to respond
and recover varies based on the circumstances of the disaster and the
State's resources.
---------------------------------------------------------------------------

    \8\ United States Government Accountability Office, FEDERAL
DISASTER ASSISTANCE: Improved Criteria Needed to Assess a
Jurisdiction's Capability to Respond and Recover on Its Own, GAO-12-
838, September 2012. Available at: http://www.gao.gov/assets/650/648162.pdf. United States Government Accountability Office, DISASTER
ASSISTANCE: Improvement Needed in Disaster Declaration Criteria and
Eligibility Assurance Procedures, August 2001. Available at: http://www.gao.gov/assets/240/232622.pdf.
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    FEMA therefore proposes to include in 44 CFR 206.48(b)(1)(i)(A)-(C)
the following three factors which will help evaluate a State and local
jurisdiction's fiscal capacity: (A) The Total Taxable Resources (TTR)
of the State,\9\ (B) the Gross Domestic Product (GDP) by State,\10\ (C)
and the Per Capita Personal Income by Local Area. FEMA anticipates that
these data points are readily available so that the State can discuss
the data points in their request for a major disaster declaration.
These publicly available data points, calculated by third-party
government agencies, will allow FEMA to use standardized data to
evaluate the economic capability of a State to effectively respond to
an event.
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    \9\ For a more detailed discussion of the methodology estimating
the total taxable resources (TTR) of the State, please refer to
Dep't of the Treasury, Treasury Methodology for Estimating Total
Taxable Resources (TTR) (last revised Nov. 2002), http://www.treasury.gov/resource-center/economic-policy/Documents/nmpubsum.pdf. This document is also available in the docket for this
rulemaking. The data on TTR by State is available at http://www.treasury.gov/resource-center/economic-policy/taxable-resources/Pages/Total-Taxable-Resources.aspx. FEMA provides this Web site for
reference purposes, the Web site may change based on U.S. Treasury's
future actions, and FEMA will adjust its use of the Web page and
data as necessary.
    \10\ Gross Domestic Product of the State was formerly referred
to as Gross State Product. For a more detailed discussion of the
methodology estimating the Gross Domestic Product of the State,
please refer to http://bea.gov/regional/pdf/gsp/GDPState.pdf. This
document is also available in the docket for this rulemaking. An
example of GDP by State is available at http://www.bea.gov/newsreleases/regional/gdp_state/gsp_newsrelease.htm; however, FEMA
will use updated data as new information is published.
---------------------------------------------------------------------------

    The TTR of the State is an annual estimate of the relative fiscal
capacity of a State, calculated by the U.S. Department of Treasury. TTR
is defined as the unduplicated sum of the income flows produced within
a State and the income flows, received by its residents, which a State
could potentially tax. Calculation of the TTR is based on the GDP by
State and additional accounting for resident earnings (wages, salaries,
proprietor's income, etc.) from out-of-state, and resident dividend and
interest income, as well as reduction for components that are presumed
not taxable by States (employee and employer contributions to social
insurance, federal indirect business taxes, federal civilian
enterprises surplus/deficit). While TTR does not consider the actual
fiscal choices made by the States, it does reflect their potential
resources. Increases or decreases in TTR could indicate a strengthening
or declining State economy for FEMA to consider when making a
determination of the State's capacity. In summary, TTR is a flow
concept, a comprehensive measure of all the income flows a State can
potentially tax. TTR data is updated annually with a two year lag in
the data.
    The GDP by State is calculated by the BEA.\11\ GDP by State
estimates are measured as the sum of the distributions by industry and
state of the components of gross domestic income which is the sum of
the costs incurred and incomes earned in the production of GDP.
Currently, TTR is only provided for the fifty States and the District
of Columbia,\12\ but not the territories; but GDP by State includes
calculations for U.S. territories.\13\ FEMA would use GDP by State
primarily as an alternative fiscal capacity measure when the TTR of an
area is unavailable. GDP by State may also be used by a State when
their TTR is inaccurate due to the two year lag in TTR data. It is
possible that a State's TTR data could be strong or trending upwards
when in fact recent events may have caused a significant drop in the
State fiscal capacity that is not yet reflected. This significant drop
could be caused by, for instance, a previous disaster or a financial
downturn. Additionally, if a disaster had a significant amount of
damages and impacts, so much so that it could have a major impact on
the real or actual TTR, FEMA would likely recommend granting IA,
assuming the damages were not covered by home, property, or flood
insurance and IA assistance would not duplicate benefits. TTR is one
data point along with numerous others and will not on its own determine
FEMA's recommendation. States also have the opportunity, as they have
in the past, to tell FEMA how their economy is impacted by the disaster
and previous disasters. The State may also present, and FEMA will
evaluate, the GDP trend in addition to simply the TTR data.
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    \11\ GDP by State is a component of the TTR calculation.
    \12\ The District of Columbia's TTR does not include income
earned by out-of-state commuters. Since the District of Columbia is
proscribed by Federal law from taxing the earnings of commuters from
outside its borders, the U.S. Treasury has subtracted the earnings
of non-residents (commuter income).
    \13\ GDP by State data is currently available from the BEA for
the following territories: Virgin Islands, Guam, American Samoa, and
the Commonwealth of the Northern Mariana Islands. The U.S. Census
publishes GDP for Puerto Rico.
---------------------------------------------------------------------------

    Generally, FEMA assumes a State with a low TTR may have a lower
threshold for requiring supplemental Federal assistance than a State
with a higher TTR because its economy may not be as resilient against
the increased financial burdens that are attributed to a large
disaster. FEMA assumes territories with lower GDP may have a relatively
lower threshold for requiring Federal assistance. While a higher TTR or
GDP are indicative of greater fiscal capability, FEMA recognizes that
there are disasters that are so large or so destructive as to overwhelm
even the most fiscally capable States.
    Per capita personal income by local area is calculated by the
BEA,\14\ and is the personal income of the residents of a given area
divided by the resident population of the area. BEA uses the Census
Bureau's annual midyear population estimates when computing the per
capita personal income. FEMA anticipates using per capita personal
income by local area as a measure to better assess the need for
supplemental Federal assistance within each local area. A local area
with a relatively low per capita personal income that is affected by a
disaster may have a lower threshold for requiring supplemental Federal
assistance. Local governments in areas with low per capita personal
income will typically have lower tax bases and therefore may have fewer
resources available to help local residents impacted by a disaster,
which may indicate a lower threshold for requiring supplemental Federal
assistance. Per capita personal income by local area when considered
holistically with TTR (and when

appropriate GDP by State) will help to identify areas of concentrated
need at the micro local area and individual level in addition to the
macro State level.
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    \14\ Data on per capita personal income is available on the
BEA's ``Local Areas Personal Income & Employment'' Table CA1. FEMA
may need to update this source if the BEA provides a new table for
per capita personal income, and it is provided here for
clarification purposes only.
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    FEMA also proposes to include at 44 CFR 206.48(b)(1)(i)(D) a factor
entitled ``Other Factors.'' ``Other Factors'' is included to explicitly
prompt the State to raise and discuss any other additional factors
related to the State's fiscal capacity, i.e., burdens on a State
treasury or a State's inability to collect funds. This factor will
encourage a State to provide an explanation of a State's fiscal
capacity that might not be captured or accurately reflected in the
above factors. A State may have an extraordinary fiscal circumstance
that is not reflected in the above factors and FEMA encourages the
State to discuss the circumstances. For example, a hurricane may cause
extensive damage in a coastal area and negatively impact tourism, which
in turn, will have a negative impact on the tax base and fiscal
capacity.
    Resource Availability. FEMA proposes to include at 44 CFR
206.48(b)(1)(ii) a factor entitled ``Resource Availability.'' Federal
disaster assistance is supplemental in nature. FEMA's current
regulations do not provide for the level of granularity and detail for
FEMA to fully evaluate what and where the resource shortfalls are for a
community and State that was affected by a disaster. ``Resource
Availability'' will be an evaluation of the disaster assistance
resources available from State, Tribal, and local governments as well
as non-governmental organizations and the private sector so that FEMA
can determine where, if any, gaps in resources exist. This factor also
provides for consideration of those circumstances that may prevent a
State from having sufficient resources to devote to the disaster
recovery process. Supplemental Federal assistance under the Stafford
Act is not warranted or necessary if a State's disaster-caused needs
can be met by the available resources provided by a State, Tribal,
local governments, non-governmental organizations, or the private
sector.
    FEMA is proposing to include at 44 CFR 206.48(b)(1)(ii)(A)-(D) four
factors that will enable FEMA to fully evaluate a State's available
resources post disaster: (1) State, Tribal, and local government, Non-
Governmental Organizations (NGO), and Private Sector Activity; (2)
Cumulative Effect of Recent Disasters; (3) State Services; and (4)
Planning After Prior Disasters.
    In current regulations, FEMA evaluates voluntary agency assistance
to determine the need for assistance to individuals under the Stafford
Act. 44 CFR 206.48(b)(4). While the current factor's title is
``Voluntary agency assistance,'' both State and local government
programs are included. FEMA is clarifying the inclusion of State and
local government programs and is also expanding 44 CFR
206.48(b)(1)(ii)(A) to include private sector assistance. FEMA is also
specifying Tribal government assistance, which was previously
considered under local government programs. FEMA is proposing this as a
factor because the level of assistance available to disaster survivors
from State, Tribal, and local government, NGOs, and the private sector,
may offset a need or reveal an increased need for supplemental
assistance. Assistance provided by State, Tribal, and local government,
NGOs, and the private sector can include but is not limited to
Emergency Management Assistance Compact (EMAC) resources, sheltering,
housing programs, feeding, mental health services, child care, elder
care, reunification services, clean up kits, blankets and cots,
financial assistance, and other donations.
    This factor is an attempt to include the ``Whole Community''
approach to emergency management that reinforces the fact that FEMA is
only one part of our nation's emergency management team; that FEMA must
evaluate all of the resources of the collective team in preparing for,
protecting against, responding to, recovering from and mitigating
against all hazards; and that collectively we must meet the needs of
the entire community in each of these areas. FEMA fully recognizes that
a government-centric approach to emergency management is not enough to
meet the challenges posed by a catastrophic incident. When the
community is engaged in emergency management, it becomes empowered to
identify its needs and the existing resources that may be used to
address them. Collectively, we can determine the best ways to organize
and strengthen community assets, capacities, and interests. This allows
us, as a nation, to expand our reach and deliver services more
efficiently and cost effectively to build, sustain, and improve our
capability to prepare for, protect against, respond to, recover from,
and mitigate all hazards. The ``Whole Community'' approach is an
ongoing component of the nation's larger, coordinated effort to enhance
emergency planning and strengthen the nation's overall level of
preparedness.
    FEMA proposes to add a new factor ``Cumulative Effect of Recent
Disasters,'' at 44 CFR 206.48(b)(1)(ii)(B), to evaluate a State's
disaster history, both Presidential (public and individual assistance)
and gubernatorial disaster declarations, for the previous 24-month
period. FEMA is particularly interested in information from a State
highlighting any disasters that have occurred within the State's
current budget cycle. FEMA is proposing this as a factor because
multiple disasters in a 24-month period, and particularly within one
State budget cycle, may significantly strain a State budget and reduce
the State's capability to adequately respond to and recover from a
disaster without supplemental Federal assistance. In addition, pursuant
to FEMA's regulations, at 44 CFR 206.48(a)(5), in evaluating the need
for assistance under the Public Assistance program, FEMA considers the
disaster history of the State for the last 12-month period. FEMA is
requesting 24 months of State disaster history data because it closely
aligns with the length of time for IA programs. For example, IHP
assistance is available for 18 months and DCMP is available for 24
months from the date of a major disaster declaration. A State with an
open disaster period that is affected by another disaster might have
various unique issues related to recovery and the compounded effects of
two disasters within a short amount of time. Review of disaster
activity occurring within the past 24 months will help to capture any
ongoing disaster activity where individuals may still be receiving IHP
assistance. If the length of time were limited to only 12 months, this
factor might not identify that the State currently has an open major
disaster declaration where individuals are potentially still receiving
FEMA IA assistance. This time period will also align with most State
government fiscal cycles, which are typically one or two years. An
unanticipated number of disasters within a fiscal cycle may contribute
to budget shortfalls that may render a State less able to respond to an
event.
    FEMA is proposing a new factor, ``State Services,'' at 44 CFR
206.48(b)(1)(ii)(C). Under this factor, FEMA would evaluate information
regarding any circumstances that prevent a State from having the
resources to provide sufficient services to its citizens. FEMA strongly
believes that it is important for a State to have pre-identified
funding sources or sufficient disaster relief funds or programs that
can be utilized to assist its citizens after a disaster. A State
requesting a major disaster declaration should address the reasons why
the State does not have sufficient funds, or

why the funding sources are insufficient to meet the needs of its
citizens.
    Finally, under the ``Resource Availability'' factor, FEMA is
proposing to consider a State's ``Planning After Prior Disasters,'' at
44 CFR 206.48(b)(1)(ii)(D). Federal disaster assistance is supplemental
and is not intended to take the place of State disaster assistance
programs. States are strongly encouraged to develop and continuously
improve their own disaster assistance programs. For this factor, States
should identify any new and existing individual assistance programs as
well as any improvements to existing individual assistance programs
made as a result of previous disasters. States that continually fail to
address limitations or shortfalls identified by FEMA or the State after
previous events will receive negative consideration under this factor.
FEMA is proposing this as a factor because States are ultimately
responsible for the well-being of their citizens and therefore should
continuously evaluate and improve their disaster planning and relief
programs based on lessons learned from previous disasters.

B. 44 CFR 206.48--Paragraph (b)(2) Uninsured Home and Personal Property
Losses

    Under FEMA's current regulations, FEMA evaluates the concentration
of damages to individuals. 44 CFR 206.48(b)(1). FEMA also considers the
amount of insurance coverage pursuant to 44 CFR 206.48(b)(5). FEMA is
proposing to incorporate both of the current factors, as well as
additional information collected during the PDA process, into a new
factor entitled ``Uninsured Home and Personal Property Losses'' in a
new 44 CFR 206.48(b)(2). As described above in section (III)(A)(1) of
the Background section, FEMA and the State participate in the joint PDA
process, which includes an examination of the extent of damage to
individual residences. The PDA data points help to illustrate the
extent of damage that a community has sustained and help FEMA estimate
the probable grant assistance under the Individuals and Households
Program. The proposed data points save FEMA time when evaluating a
major disaster declaration request because the requested data has
already been evaluated and validated by FEMA during the joint PDA
process. FEMA currently collects this information via the joint PDA
process and uses them when evaluating requests for major disaster
declaration.\15\ This proposed factor will more accurately describe the
information collected and evaluated during joint PDAs.
---------------------------------------------------------------------------

    \15\ Preliminary Damage Assessment for Individual Assistance
Operations Manual (9327.2). Available at: http://www.fema.gov/media-library/assets/documents/29569.
---------------------------------------------------------------------------

    The first proposed data point is the cause of damage in a new
paragraph 44 CFR 206.48(b)(2)(i). FEMA is requesting this information
in part because it is directly relates to insurance coverage. The cause
of disaster damage refers to the peril that caused the disaster damage
such as a tornado or wind driven rain. Insurance policies typically
only cover damage resulting from a specific peril or perils. FEMA is
legally prohibited from duplicating insurance proceeds when providing
disaster assistance and must know the level of insurance coverage and
the cause of the damage to estimate the potential amount of Federal IA
available.
    The second proposed data point is information on the jurisdictions
impacted and the concentration of damages in a new paragraph 44 CFR
206.48(b)(2)(ii). FEMA is requesting this information because it will
highlight the counties within a State that may require IA as well as
whether the damages were in one concentrated area of the State or
widespread. This information will be gathered during the PDA process by
either the damage assessment teams or via geographic information system
(GIS) data. IA is typically authorized based on county or parish
jurisdictional boundaries.
    The third proposed data point is the number of homes impacted and
degree of damage in a new paragraph 44 CFR 206.48(b)(2)(iii). Degree of
damage refers to the extent of disaster damage and its impact on the
habitability of a home. FEMA is requesting this information because it
illustrates how a community was affected and what types and the extent
of IA that may be needed for the community. This information is
typically given at both the county or parish jurisdictional level and
the State wide level.
    The fourth proposed data point is the estimated cost of assistance
in a new paragraph 44 CFR 206.48(b)(2)(iv). The estimated cost of
assistance is typically generated by the joint FEMA-State PDA and is
already currently collected in FEMA's current declarations process. The
estimated cost of damage will help FEMA gather information about the
cost of a disaster and the potential amount of FEMA assistance that
would be awarded. This data point is often determined using information
obtained from the other data points outlined in this factor. This data
point is important because it will capture the probable grant
assistance that will be awarded for personal property in addition to
grant assistance for housing.
    The fifth proposed data point is information on the homeownership
rate of impacted homes in a new paragraph 44 CFR 206.48(b)(2)(v). This
factor is an estimated rate of the homeownership of impacted homes in
the disaster-affected area. FEMA may provide assistance for real
property repair or replacement to homeowners for their primary
residence and rental assistance to homeowners or renters; therefore, it
is important to know homeownership rates in order to estimate probable
assistance.
    The sixth proposed data point is information on the percentage of
affected households with insurance coverage appropriate to the peril in
a new paragraph 44 CFR 206.48(b)(2)(vi). FEMA is requesting this
information because FEMA will consider the percentage of affected
households with insurance coverage as part of the evaluation of whether
the IHP is necessary and to assist in determining probable grant
assistance. Insurance appropriate to the peril is, for example, if the
cause of the damage is wind and the homeowner has homeowner's
insurance, then the homeowner has insurance appropriate to the peril.
If the homeowner has homeowner's insurance, but no flood insurance, and
the cause of the damage is flooding, then the homeowner does not have
insurance appropriate to the peril. If a homeowner has sufficient and
appropriate insurance to the peril, Federal assistance may be limited
to ONA, CCP, DCMP, or DUA programs because the Stafford Act prohibits
FEMA from duplicating benefits received from any other source,
including insurance proceeds. The State should attempt to provide this
information through the State insurance commissioner or office and
other appropriate sources. FEMA will verify the data using the best
analysis methods available. FEMA currently utilizes National Flood
Insurance Program (NFIP) data to determine insurance penetration rates
for flood damages and Census data to determine homeowners' insurance
coverage percentages. Since insurance coverage is not collected during
the Census, the percentage of owner-occupied homes with a mortgage is
used to determine an insurance penetration rate, due to assumption that
a home with a mortgage would require home insurance coverage. FEMA is
pursuing additional resources beyond NFIP and Census data to verify

insurance penetration rates in order to have the most accurate
insurance information available. As previously mentioned in Section
III(C)(9), FEMA is requesting that stakeholders and the public provide
information and suggestions on potential sources of data for the most
accurate insurance information. FEMA will consider any suggestions
during the development of the final rule.
    Finally, the seventh proposed data point is any other relevant
preliminary damage assessment data in a new paragraph 44 CFR
206.48(b)(2)(vii). FEMA is proposing this factor to explicitly prompt
the State to discuss any other damage assessment information that was
gathered during the joint FEMA-State PDA that the State believes
demonstrates that an effective response is beyond the capability of the
State and affected local governments and that supplemental Federal
assistance for individuals is appropriate.

C. 44 CFR 206.48--Paragraph (b)(3) Disaster Impacted Population Profile

    In FEMA's current regulations at 44 CFR 206.48(b)(3), FEMA
considers special populations in evaluating the need for assistance to
individuals under the Stafford Act. FEMA proposes to expand on this
current factor, in the proposed factor ``Disaster Impacted Population
Profile'' at a revised 44 CFR 206.48(b)(3). Currently, in the ``special
populations'' factor FEMA considers demographic information regarding
low income, elderly, or unemployed populations that are affected by a
major disaster because those populations may have a greater need for
assistance. 44 CFR 206.48(b)(3). FEMA also considers whether a State
has any American Indian or Alaskan Native Tribal populations. 44 CFR
206.48(b)(3).
    FEMA is proposing to consider additional demographic data points
related to the disaster impacted community. This information will help
FEMA to identify the specific issues or obstacles that a community may
face in their disaster recovery. FEMA will consider the following U.S.
Census and other Federal agency \16\ demographic data points \17\ in
making a recommendation for IA under a major disaster declaration: (1)
The percentage of the population for whom poverty status is determined;
(2) the percentage of the population already receiving government
assistance, such as Supplemental Security Income and Supplemental
Nutrition Assistance Program benefits; (3) the pre-disaster
unemployment rate; (4) the percentage of the population that is 65
years or older; (5) the percentage of the population 18 years or
younger; (6) the percentage of the population with a disability; and
(7) the percentage of the population who speak a language other than
English and speak English less than ``very well.'' In addition, FEMA
will continue to consider any unique considerations regarding American
Indian and Alaskan Native Tribal populations raised in the State's
request for a major disaster declaration, even if such considerations
are not be reflected in the U.S. Census Bureau data. These data points
are readily available so that the State can discuss the data points in
its request for a major disaster declaration.
---------------------------------------------------------------------------

    \16\ Poverty data comes from the U.S. Census Small Area Estimate
Branch, ``Poverty and Median Income Estimates for Counties.''
Supplemental Nutrition Assistance Program data is from the U.S.
Census's American Community Survey (ACS) using the American
FactFinder, Advanced Search, Geographies: ``All Counties within the
United States,'' Topics: S2201, 5-year estimates. Supplemental
Security Income data comes from ACS using the American FactFinder,
Advanced Search, Geographies: ``All Counties within the United
States,'' Topics: B19056, 5-year estimates. The unemployment data at
the state and county level are respectively available at http://www.bls.gov/web/laus/laumstrk.htm and http://www.bls.gov/lau/#cntyaa. Data on county populations of ``65 or Older'' and ``18 or
Younger'' data comes from the ACS using the American FactFinder,
Advanced Search, Geographies: ``All Counties within the United
States,'' Topics: DP05, 5-year estimates. Data on populations with a
disability comes from the ACS, American FactFinder, Advanced Search,
Geographies: ``All Counties within the United States,'' Topics:
S1810, 3-year estimates. Data on ``percent of population who speaks
English less than very well'' comes from the ACS, American
FactFinder, Advanced Search, Geographies: ``All Counties in the
United States,'' Topics: B06007, 5-year estimates. Data on American
Indian and Alaska Native populations comes from the ACS, American
FactFinder, Advanced Search, Geographies: ``All Counties within the
United States,'' Topics: DP05, 5-year estimates. FEMA may update
these sources to account for future improvement and changes in the
U.S. Census, BLS, BEA, and Treasury data reporting, and the sources
are provided here for example.
    \17\ For definitions related to demographic data points, please
refer to the associated organizations Web sites. For example, refer
to U.S. Census Small Area Income and Poverty Estimates definitions
at http://www.census.gov/did/www/saipe/methods/statecounty/20102012county.html for percentage of the population for whom
poverty status is determined. For a definition of the pre-disaster
unemployment rate, refer to Bureau of Labor Statics at http://www.bls.gov/bls/glossary.htm and search for the term ``unemployment
rate''. The U.S. Census glossary at http://www.census.gov/glossary
and American Community Survey also provide definitions related to
demographic data points including the following terms: Assistance
and Subsidies, Age, Disability, Language Spoken at Home, and Ability
to Speak English.
---------------------------------------------------------------------------

    The proposed population demographic data points are relevant to all
of FEMA's IA programs and are a valuable source of information to
determine if specific programs are needed after a disaster. For
example, demographic information revealing a large number of low
income, unemployed, or elderly populations in a disaster area could
indicate a need for supplemental Federal assistance because those
populations may not have a large amount of disposable income or qualify
for a Small Business Administration (SBA) disaster loan. With respect
to demographic information that reveals a large non-English speaking
population, this will help FEMA to structure their outreach efforts to
ensure that any messaging efforts are in the appropriate languages.

D. 44 CFR 206.48--Paragraph (b)(4) Impact to Community Infrastructure

    In FEMA's current regulations, at 44 CFR 206.48(b), FEMA considers
the degree of trauma to a State and to communities when evaluating a
State's need for IA. FEMA considers conditions that might cause trauma,
such as large scale disruption of normal community functions and
services and emergency needs such as extended or widespread loss of
power or water. 44 CFR 206.48(b)(2)(ii) and (iii). SRIA specifically
identified trauma as a factor that required clarification as to the
specific conditions or losses that contribute to trauma. FEMA proposes
to examine what was previously identified as part of the ``trauma''
factor by identifying and evaluating several more objective factors
which contribute to the level of trauma caused by a disaster.\18\ The
``Impact to Community Infrastructure'' factor at a proposed new 44 CFR
206.48(b)(4) includes several considerations which relate to the level
of trauma, as well as considerations that shed light on a community's
ability to recover from a disaster. This factor has three components:
(1) Life-Saving and Life-Sustaining Services; (2) Essential Community
Services; and (3) Transportation Infrastructure and Utilities.
Significant levels of damage, disruption, or destruction to any or all
of these components may hinder the ability of individuals and families
to make a timely recovery, be indicative of higher levels of trauma,
and suggest an increased need for supplemental Federal assistance--for
example Other Needs Assistance, Crisis Counseling Program, or Disaster
Case Management Program. FEMA anticipates information on the three
components will be provided by the State.
---------------------------------------------------------------------------

    \18\ FEMA is also providing additional clarity on what
constituted trauma in the Casualties factor which can be found in
the proposed new 44 CFR 206.48(b)(5) and is discussed below.

---------------------------------------------------------------------------

    FEMA is requesting information on an activity or disruption that
lasts for more than 72 hours for each of the below components. As a
general matter members of the public should be prepared to potentially
be on their own at least 72 hours after a disaster.\19\ It may take
FEMA up to 72 hours to assess and mobilize Federal assets to help a
State that is overwhelmed by a disaster. In addition, preparing for at
least this amount of time will allow emergency responders to focus on
those individuals requiring more immediate assistance.
---------------------------------------------------------------------------

    \19\ See the following Web sites as examples: The FEMA run
national public service advertising (PSA) campaign Web site http://www.ready.gov/build-a-kit; the Texas Division of Emergency
Management Web site http://www.txdps.state.tx.us/dem/Preparedness/emerSupplyKits.htm; the San Francisco Department of Emergency
Management Web site http://www.sf72.org/home; and the New York City
Office of Emergency Management Web site http://www.nyc.gov/html/oem/html/get_prepared/supplies.shtml.
---------------------------------------------------------------------------

    Life-Saving and Life-Sustaining Services. FEMA is proposing that a
State provide information regarding the impact of the disaster on life-
saving and life-sustaining services for a period of greater than 72
hours in a new paragraph 44 CFR 206.48(b)(4)(i). FEMA is specifically
seeking information on services such as, but not limited to, police,
fire/EMS, hospital/medical, sewage, and water treatment services
because prolonged disruption may affect the viability of a community
and necessitate survivor relocation. The effects of a disaster will
increase the demand for life-saving and life-sustaining services and
necessitate a more robust response. Significant or extended disruptions
to these services will hinder a community's ability to recover from a
disaster.
    Life-saving services are services that provide an essential
community function that, if interrupted, will affect public health and
safety in a community. Some typical examples of life-saving services
data that FEMA is requesting are whether emergency medical services
such as ambulances, fire services, police services, or hospital
services are affected by the disaster. Life-sustaining services are
services that are required to support life and well-being within a
community and are necessary for the community to function as normal.
Some typical examples of life-sustaining services data that FEMA is
requesting are whether any community healthcare programs, assistance to
homebound individuals such as Meals on Wheels, or food providers such
as grocery stores or restaurants are affected by the disaster.
    Essential Community Services. FEMA is proposing that a State
provide information regarding the impact on essential community
services for a period greater than 72 hours in a new paragraph 44 CFR
206.48(b)(4)(ii). Essential community services are services that
improve the quality of life for a person in a community but do not
sustain a person's life. FEMA is requesting information on the impact
of the disaster on essential community services such as, but not
limited to, schools, social services programs and providers, child
care, and eldercare. Information on the impact of the disaster on
essential community services can include, for instance, the number of
schools closed, whether any social service programs or providers such
as Meals on Wheels were affected by the disaster, and the number of
providers of child care or eldercare in the community that closed.
Significant or extended disruptions to these services will hinder the
affected community's ability to recover from a disaster.
    Transportation Infrastructure and Utilities. FEMA is proposing that
the State provide information regarding the impact of the disaster on
transportation infrastructure and utilities in a new paragraph 44 CFR
206.48(b)(4)(iii). Specifically, FEMA is seeking information on the
number of roads, bridges, tunnels, and public transit closures and
utility outages of water, power, sewage, and gas that last longer than
72 hours. Transportation infrastructure or utility disruptions can
render housing uninhabitable or inaccessible for disaster survivors,
affect the delivery of life sustaining commodities, provision of
emergency services, ability to shelter in place, and efforts to
rebuild. Significant or extended disruptions to this infrastructure
will hinder the affected community's ability to recover from a
disaster.

E. 44 CFR 206.48--Paragraph (b)(5) Casualties

    In FEMA's current regulations, at 44 CFR 206.48(b)(2)(i), FEMA
evaluates the degree of trauma to a State and to communities, including
consideration of ``large numbers of injuries and deaths.'' As discussed
above, SRIA specifically directed FEMA to clarify the factor related to
trauma; the proposed changes to the Impact to Community Infrastructure
factor, described above, represent part of this effort.
    In addition, FEMA is proposing in a new 44 CFR 206.48(b)(5) that
States submit information on the number of individuals who are missing,
injured, or deceased due to a disaster. FEMA believes that this
information may indicate a heightened need for supplemental Federal
assistance because casualties are clearly indicative of the level of
trauma in the affected area. Moreover, each of the proposed data points
link to one or more types of assistance under IA programs. The
estimated number of missing individuals can highlight how traumatic an
event was for a community and indicate a potential need for crisis
counseling. This information may also be an indicator that additional
injured or deceased individuals may be discovered during the course of
the disaster recovery. The estimated number of injured individuals may
also indicate a need for crisis counseling as well as medical or dental
assistance under the ONA provision of the Individuals and Households
Program. The estimated number of deceased individuals may indicate a
need for crisis counseling as well as funeral assistance under ONA.
These proposed data points are typically provided by the State already.

F. 44 CFR 206.48--Paragraph (b)(6) Disaster Related Unemployment

    In FEMA's current regulations, FEMA considers whether ``special
populations,'' such as the unemployed, are affected by the disaster and
whether they may have a greater need for assistance in 44 CFR
206.48(b)(3). As discussed above, FEMA is proposing to add a ``Disaster
Impacted Population Profile'' factor, which incorporates consideration
of a number of special populations, including the percentage of low-
income, unemployed, and elderly individuals within the population.
    In addition, FEMA is proposing a new factor, ``Disaster Related
Unemployment,'' in a new paragraph 44 CFR 206.48(b)(6) that will
evaluate unemployment in a different manner than FEMA's current
regulations. FEMA's current regulations are focused primarily on those
that are unemployed prior to the disaster. In this new factor, FEMA
will seek to identify individuals that may have lost work or become
unemployed as a result of the disaster.
    The Disaster Unemployment Assistance program (DUA), operation of
which has been delegated to the Department of Labor, 44 CFR 206.141,
provides unemployment benefits and re-employment services to
individuals who have become unemployed as a result of a major disaster
and who are not eligible for regular State unemployment insurance. The
types of workers who typically receive such assistance are self-
employed, service industry workers, and seasonal workers such as those
employed in tourism, fishing, or agriculture industries. In

order to fully evaluate whether or not DUA is appropriate, FEMA is
requesting that a State provide information on the estimated number of
disaster survivors who lost work or became unemployed due to a disaster
and who do not qualify for standard unemployment insurance.
    In addition, FEMA is requesting that a State provide information
regarding any major employers that are affected in the area by the
disaster because it may highlight an additional need for the community
in their recovery efforts. When a major employer in a community is
affected by a disaster, it can signal to FEMA that the community will
have a prolonged recovery because a large amount of individuals may be
out of work and unable to support their own recovery efforts. This may
further indicate need for DUA and other IA programs. FEMA anticipates
that the State will provide this information.

G. Principal Factors for Evaluating the Need for the Individuals and
Households Program

    FEMA is proposing that the principal factors it will consider in
evaluation of any major disaster declaration request for IHP will be
the fiscal capacity of the requesting State (44 CFR 206.48(b)(1)(i))
and the uninsured home and personal property losses (44 CFR
206.46(b)(2)). As discussed above, major disaster declarations are
based upon a finding that the event is of such severity and magnitude
that effective response and recovery is beyond the capabilities of the
State and affected local governments. IHP provides grants and direct
assistance to eligible disaster survivors who have necessary and
serious needs that they are unable to meet through other means. In
order to determine the need for IHP, it is important to evaluate the
total estimated need for such assistance resulting from the event and
to compare that estimated need to the fiscal capability of the
requesting State.
    FEMA evaluated major disaster declaration requests including IHP
between January 2008 and July 2013 and determined that the uninsured
home and personal property losses' estimated cost of assistance was an
important factor driving whether a major disaster declaration
authorizing IHP was declared by the President. FEMA found that 97% of
requests involving estimated costs of assistance that were equal to or
greater than $7.5 million were granted major disaster declarations
authorizing IHP, while only 6% of requests involving estimated costs of
assistance equal to or less than $1.5 million were granted. Requests
falling between those numbers were much more uncertain, with
approximately 44% granted, as reflected in Table 1.

                    Table 1--Estimated Cost of Assistance to Declaration Decision Comparative
----------------------------------------------------------------------------------------------------------------
                                                                     Number of       Number of    Percentage  of
         Dollar amount of estimated costs of  assistance             disaster        disasters       disasters
                                                                     requests        declared        declared
----------------------------------------------------------------------------------------------------------------
$7.5 million or more............................................              32              31              97
$1.5 million to $7.5 million....................................              87              38              44
$1.5 million or less............................................              34               2               6
----------------------------------------------------------------------------------------------------------------
* Based on major disaster declaration requests including IHP between January 2008 and July 2013.

    Similarly, FEMA found that the ratio of IA Cost to Capacity
(ICC),\20\ which is the estimated cost of IA divided by the State's TTR
in millions, was particularly indicative of the declaration result
above and below certain levels. FEMA conducted a review of 153 \21\
major disaster declaration requests that included IA that were
submitted between January 2008 to July 2013 to determine if there would
be any impact from using TTR in assessing a State's need for a major
disaster declaration authorizing IA. Each State request included an
estimate of the costs from the damages attributed to the disaster
event. FEMA retrieved the TTR per State at the time of each request.
For each request, FEMA divided the estimated cost by the State TTR in
millions. For example, if a State estimated $2,000,000 in IA costs and
the State's TTR was $30,000,000,000, FEMA divided $30,000,000,000 by
$1,000,000 to get the State's TTR in millions which is $30,000. FEMA
then divided $2,000,000 by $30,000 to get the ratio of IA Cost to
Capacity (ICC) of 66.7.
---------------------------------------------------------------------------

    \20\ See the discussion in V. Regulatory Analysis; A. Executive
Order 12866; 5. Impacts to Costs, Benefits, and Transfer Payments;
d. Transfer Payments, for more detailed explanation of ICC and these
findings.
    \21\ For the analysis on TTR, FEMA excluded disaster declaration
requests that did not include a request for IA. FEMA also excluded
duplicate requests, U.S. territories' requests (because there is no
TTR data available), requests without summaries of the PDA data or
with insufficient data, and requests that involved an expedited
decision.
---------------------------------------------------------------------------

    Based on the ICC calculation for all 153 State requests, there is a
general trend that shows the greater the ICC ratio for a major disaster
declaration request that included IA, especially above 25, the more
likely the request would be granted. Additionally, the lower the ICC
ratio for a major disaster declaration request that included IA,
especially below 10, the more likely the request was denied. Major
disaster declaration requests for IA with an ICC greater than 25 were
granted 95% of the time, while requests with an ICC below 10 were
granted only 7% of the time. Requests with ICCs falling in between 10
and 25 were granted approximately half the time.
    FEMA is not proposing to use these numbers as a hard ``threshold''
or incorporate them into regulation because there is no one factor
required to receive a major disaster declaration authorizing IA and we
want to preserve the President and FEMA's discretion to consider the
circumstances of each event. Moreover, FEMA recognizes that this kind
of analysis can help identify trends and ensure consistent
decisionmaking over time, but does not always provide the full scope of
information necessary for FEMA to make an informed recommendation.
    However, FEMA believes that providing these types of trends and
historic data is important to help guide States in their consideration
of whether or not an event might warrant a major disaster declaration
authorizing IA. The trends and historical data will also help guide
State planning with respect to what level of IHP damage they should
expect to handle without supplemental Federal assistance. This type of
planning guidance is consistent with the original intent behind the
table currently in 44 CFR 206.48(b)(6). As discussed above, the data in
that table eventually became out of date and it no longer has any
utility as a planning tool.
    In order to ensure that the most useful and up to date data and
information are available to States for guidance and planning purposes,
FEMA proposes to compile and periodically publish aggregate PDA data
for major disaster requests, including IHP. Currently,

FEMA publishes Preliminary Damage Assessment Reports \22\ for every
request for a major disaster declaration. These reports lay out the PDA
data that was provided in the Governor's request and indicate whether
or not the request resulted in a declaration. Upon finalization of new
IA declaration factors, FEMA intends to continue publishing these
reports with new declaration factors. In addition, FEMA intends to
periodically publish the aggregate data from these reports in a format
that will assist States in evaluating the likelihood of receiving a
major disaster declaration for a specific event and for planning for
future events. By publishing this information in periodic guidance, and
not codifying it in regulation, FEMA would ensure that the data remains
timely and useful.
---------------------------------------------------------------------------

    \22\ These can be found on FEMA's Web site at: https://www.fema.gov/preliminary-damage-assessment-reports.
---------------------------------------------------------------------------

    In addition to publishing PDA data, FEMA intends to publish
guidance that provides clarity to States on how FEMA would utilize the
new proposed factors when it evaluates major disaster declaration
requests that include IA. This guidance will provide additional detail
regarding analysis of the principal factors as well as other factors
identified in the proposed rule. FEMA intends to publish the guidance
for public comment to this rulemaking docket, and FEMA will develop the
final rule and guidance as a pair taking into consideration all
comments received on the NPRM and guidance. Over time, FEMA may update
this guidance as necessary. The provision of more specific details
regarding evaluation of the specific factors through guidance will
allow FEMA to be more nimble in adapting to changing circumstances or
changing priorities, while also creating an important transparency
benefit for State and local governments.
    It is important to note that certain disasters may present unique
circumstances which cannot be anticipated by regulation or policy
guidance, as such States may submit, and FEMA may evaluate, all
relevant information. In addition, FEMA only evaluates requests and
makes recommendations to the President. The sole discretion to approve
or deny any request for major disaster declaration request lies with
the President.

V. Regulatory Analysis

A. Executive Order 12866, Regulatory Planning and Review and Executive
Order 13563, Improving Regulation and Regulatory Review

1. Executive Summary & A-4 Accounting Statement
    Executive Orders 13563 and 12866 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been designated a ``significant regulatory
action'' although not economically significant, under section 3(f) of
Executive Order 12866. Accordingly, the rule has been reviewed by the
Office of Management and Budget.
    This proposed rule would impose a cost burden of $3,752 in the
first year of implementation and $1,609 annually for subsequent years.
During the ten year period following the final rule's effective date,
the total cost would be $18,233 undiscounted. The ten year present
value total cost would be $15,806 and $13,302 if discounted at three
and seven percent, respectively. The small annualized cost of the
proposed rule would be $1,853 at three percent and $1,894 at seven
percent.\23\
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    \23\ FEMA includes estimates of discounted present value costs
and annualized costs according to guidance from OMB Circular A-4.
Office of Management and Budget, Published September 17, 2003.
Available at: http://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a004/a-4.pdf.
---------------------------------------------------------------------------

    Despite the newly identified factors, this proposed rule would not
change the total amount of assistance available to individuals and
households because much of the proposed rule codifies FEMA's evolving
declarations practice since 1999. FEMA does not anticipate the two
newly proposed factors would change the total amount of individual
assistance as well, which is discussed in the following sections.
Benefits of the proposed rule include clarifying FEMA's existing
practices, reducing processing time for requests due to clarifications,
and providing States with notice of the new factor information FEMA is
proposing to consider as part of the IA declarations process.

                                                                  A-4 Accounting Table
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     Estimates                                      Units
                                      ------------------------------------------------------------------------------------------
               Category                  Primary        Low          High                    Discount                                     Notes
                                         estimate     estimate     estimate   Year dollar      rate          Period covered
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annualized Monetized ($millions/year)         None         None         None           NA           NA  NA.....................  Not Quantified.
Annualized Quantified................         None         None         None           NA           NA  NA.....................  Not Quantified.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Qualitative..........................   The proposed rule more clearly identifies declaration factors FEMA considers in making
                                        its recommendation to the President on a major disaster declaration authorizing IA. It
                                       codifies many factors FEMA currently considers but are not specifically identified in 44
                                          CFR 206.48(b). The proposed rule may also result in regulatory efficiencies due to
                                          reduced process time and effort (back and forth). In addition, the newly identified
                                           factors would provide FEMA additional information on a requesting State's fiscal
                                                                  capacity and resource availability.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annualized Monetized.................     $1,894.0         $0.0         $0.0         2013           7%  10 Years...............  None.
                                          $1,853.0         $0.0         $0.0         2013           3%  10 Years...............

Annualized Quantified................         None         None         None         2013          N/A  10 Years...............
--------------------------------------------------------------------------------------------------------------------------------------------------------
Qualitative..........................  None.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Transfers
--------------------------------------------------------------------------------------------------------------------------------------------------------
Federal Annualized Monetized                  None         None         None           NA           7%  NA.....................  None.
 ($millions/year).
Other Annualized Monetized ($millions/        None         None         None           NA           7%  NA.....................  None.
 year).
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Effects
--------------------------------------------------------------------------------------------------------------------------------------------------------
State, Local, and/or Tribal                   None         None         None          N/A           NA  NA.....................  None.
 Government.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business.......................  FEMA certifies under 5 U.S.C. 605(b) that this proposed rule would not, if promulgated, have a significant
                                       economic impact on a substantial number of small entities.
Wages................................  None.
Growth...............................  Not Measured.
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2. Need for Regulatory Action
    FEMA is proposing this rule to provide clarity on the IA
declaration factors that FEMA currently considers in support of its
recommendation to the President on whether a major disaster declaration
authorizing IA is warranted. The additional clarity may reduce delays
in the declaration process by decreasing back and forth between States
and FEMA in the declarations process. FEMA is also proposing two new
factors on Fiscal Capacity and Resource Availability to provide
additional context on potential disaster situations. The proposed rule
would also satisfy the requirements outlined in Section 1109 of SRIA.
3. Affected Population
    Requests for a Federal major disaster declaration authorizing IA
must come from a State's Governor. 44 CFR 206.36(a). As such, the
proposed rule affects the 56 States that are eligible to request a
Presidential major disaster declaration authorizing IA. States are
defined in 44 CFR 206.2(a)(22), and include any State of the United
States, the District of Columbia, Puerto Rico, the Virgin Islands,
Guam, American Samoa, and the Commonwealth of the Northern Mariana
Islands.
    Although Section 1110 of SRIA amended the Stafford Act to allow
Federally recognized Indian Tribal governments to submit requests for
emergency or major disaster declarations, SRIA charged FEMA to
implement that authority separately by rulemaking. Thus such
declarations would be covered by a separate process and are not
included in this proposed rule. Local governments are also not affected
by the proposed rule because the disaster related information local
governments provide to the State is part of their current disaster
response process to provide situational awareness and ascertain need
for further assistance.
4. Current Baseline and Changes From Proposed Rule
    The proposed rule largely codifies many considerations that FEMA
has applied for several years under the ``other relevant information''
prong of the regulation but were not specifically identified in FEMA
regulations. FEMA reviewed State major disaster declaration letters
that requested IA for numerous disasters and found that States
typically included more information and data than what is specifically
identified in the current regulations at 44 CFR 206.48(b).\24\ As such,
costs for States would be minimally impacted by the proposed rule
because States currently provide FEMA with the proposed information for
major disaster declaration requests, as appropriate. A marginal
analysis table evaluating each of the considerations is provided later
in the preamble and a more detailed table is provided in the rulemaking
docket.
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    \24\ FEMA reviewed a sample of State major disaster declaration
request letters and found that each letter was unique and provided
many of the data points and information that would be explicitly
included under the proposed regulation. The information submitted
will vary depending on the disaster, the scope of damages and the
need for assistance. FEMA does not require every data point to be
submitted to get a declaration. Some requests will have more data or
information, while other requests will have less. For instance, in
more severe events to less resilient areas, the States did not need
to provide a large amount of information to get a declaration,
because it was evident to FEMA and the White House that the
individual assistance needs were outside the capacity of the
requesting State.
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    In addition, as stated previously, Indian Tribal governments
(requesting assistance through the State) and local governments
currently provide the proposed factor information for their local area
and affected residents to the State in support of a State's request and
its determination on whether a request for a major disaster declaration
authorizing IA is warranted. Therefore, FEMA anticipates Indian Tribal
governments (requesting assistance through the State) and local
governments will not incur additional costs by the proposed regulation.
    FEMA is also proposing to include two new factors: Fiscal Capacity
and Resource Availability. Both new factors have small burden increases
associated with obtaining the additional information. FEMA considers
Fiscal Capacity data solely a Federal burden increase since it intends
to collect the information. Resource Availability information is
considered a State burden increase since States would provide such
information. However, FEMA does not anticipate either new factor to
impact the number of IA declaration requests received or the amount of
IA assistance provided, and therefore no impact to transfer payments.
    Fiscal Capacity. FEMA recognizes that each State's capacity to
respond

and recover varies based on the circumstances of the disaster and the
State's resources. FEMA intends to include the consideration of fiscal
capacity data to better evaluate a State's ability to adequately
respond to a disaster with or without supplemental Federal assistance.
The GAO has suggested in multiple reports that FEMA should incorporate
States' fiscal capacity into its considerations for recommendations on
disaster declarations to the President. Though the GAO reports have
focused on including fiscal capacity in FEMA's PA declaration factor
criteria, FEMA believes that there is a need to assess a State's
capacity to respond and recover on its own when determining whether a
major disaster declaration that authorizes IA is warranted as well.
Furthermore, the GAO supported the use of TTR as a measure of a State's
fiscal capacity because it is a comprehensive estimate of the resources
that could potentially be subject to State taxation.\25\ Therefore,
FEMA is proposing to include fiscal capacity as an additional factor in
its determination.
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    \25\ United States Government Accountability Office, FEDERAL
DISASTER ASSISTANCE: Improved Criteria Needed to Assess a
Jurisdiction's Capability to Respond and Recover on Its Own, GAO-12-
838, September 2012, Page 31. Available at: http://www.gao.gov/assets/650/648162.pdf.
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    To ascertain a State's fiscal capacity to respond to a major
disaster, FEMA intends to review data on a State's Total Taxable
Resources (TTR). The U.S. Department of Treasury calculates the TTR of
the State, which is used as a measure of a State's fiscal capacity.\26\
TTR is based on the GDP per State but makes adjustments for additional,
potentially-taxable income flows like capital gains and commuter
income. FEMA acknowledges that TTR does not capture a State's actual
tax revenue or expenditures and cannot be viewed as a financial
accounting of a State's budget. TTR is instead intended to measure all
income flows a State can potentially tax.
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    \26\ A 2012 GAO report stated that other Federal departments and
agencies have used TTR data to determine a jurisdiction's fiscal
capacity and the extent to which a jurisdiction should be eligible
for Federal assistance; specifically the Department of Health and
Human Services' Substance Abuse and Mental Health Services
Administration's block grant program and Community Mental Health
Service.
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    Resource Availability. Relative to State services and planning
after prior disasters, FEMA encourages States to continuously improve
their own disaster assistance programs for their citizens. States
should identify any new individual assistance programs as well as any
improvements to existing individual assistance programs made as a
result of previous disasters. FEMA intends to include this factor to
encourage States to continuously evaluate and improve their disaster
planning and relief programs based on lessons learned from previous
disasters. On the other hand, States that continually fail to address
limitations or shortfalls identified after previous events would be a
consideration in FEMA's deliberation. Nonetheless, FEMA does not expect
that the inclusion of this factor would affect the overall number of
major disaster declarations authorizing IA as this factor would be
considered with a number of other factors and would not, in isolation,
determine whether a declaration is recommended.
5. Impacts to Costs, Benefits, and Transfer Payments
    In the following section, FEMA discusses the proposed rule's
quantified costs for States and the Federal government, qualitative
benefits, and why there are no expected impacts to transfer payments.
a. State Costs
    As stated previously, many of the factors listed in the proposed
rule have previously been submitted or requested subsequent to a State
request and thus are estimated to have no new costs. The two proposed
additional factors that have not been typically provided or considered
would impose a new cost. FEMA intends to obtain data related to fiscal
capacity from publicly accessible databases and Web sites at no cost to
States. Providing information on State services and planning after
prior disasters would impose a new cost on States. In addition, FEMA
assumes the proposed rule may have an initial implementation cost for
States to familiarize themselves and understand the new factor data
requirements.
    If a State is unable to provide information for a particular factor
or factors, FEMA would evaluate and provide a recommendation on the
State's need for Federal assistance based on the information submitted
and data available from other sources, as appropriate. The only
required elements of a State's major disaster declaration request
appear at 44 CFR 206.36. FEMA's intent, through this proposed rule, is
to clearly identify the considered data points that are previously
captured under the ``other relevant information'' prong of the
regulation to inform the States' formulation of their request. In some
scenarios, certain pieces of information identified in the proposed
rule may be inapplicable or unavailable. In addition, FEMA recognizes
that the circumstances of a disaster may not allow a State to collect
all of the information identified within the proposed rule. States
would need to provide information that supports their request for a
major disaster declaration authorizing IA, but would not have to
address every data point in the proposed rule to be granted the
request. For example, for a catastrophe of unusual severity and
magnitude such that preliminary damage assessments are not necessary to
determine the requirement for Federal assistance, States may submit an
abbreviated request pursuant to 44 CFR 206.36(d), which need only
contain limited information required by that provision. The proposed
rule is identifying factors, which FEMA would consider in its review of
a major disaster declaration request that includes IA when making
recommendations to the President, but ultimately the amount of data
provided by the State is voluntary.
    FEMA anticipates information on State services and planning after
prior disasters would be addressed in a short summary in the Governor's
request. FEMA program employees who work with declarations estimate
that a State would spend an additional 30 minutes collecting and
incorporating information on State services and planning after prior
disasters into the State's declaration request. FEMA assumes this time
would be used to write a paragraph or two on why the State lacks the
resources to provide sufficient services to its citizens and any new or
existing State individual assistance programs or improvements made to
State individual assistance programs as a result of previous disasters.
FEMA assumes that a State would be aware of their own service and
program capabilities prior to considering whether a request for a major
disaster declaration that authorizes IA is warranted. In addition, a
State may build upon past requests in subsequent requests depending on
whether their program efforts have been ongoing or have changed.\27\
FEMA previously estimated that States spend 33 hours on average to
compile, write, and submit a request for a declaration.\28\ FEMA
assumed the equivalent of a State Government Chief Executive, a senior

level government official familiar with State emergency assistance
programs, would prepare the Request for Presidential Disaster
Declaration Major Disaster or Emergency, FEMA Form 010-0-13. Per the
U.S. Department of Labor Bureau of Labor Statistics, the average hourly
wage rate for a State Government Chief Executive is $54.66 which FEMA
multiplied by 1.4 to account for benefits.\29\ This results in a fully
loaded State Government Chief Executive hourly wage rate of $76.52.
Between January 2004 and December 2013, FEMA received 413 requests for
a major disaster declaration that authorized IA. FEMA divided 413 by
ten years to estimate that States would submit an average of 41
requests for major disaster declarations authorizing IA per year. FEMA
multiplied 30 minutes (0.5 hours) by the fully loaded hourly wage rate
of $76.52 and 41 submissions to get an annual cost of $1,569 (0.5 x
$76.52 x 41 = $1,568.66).
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    \27\ FEMA recognizes there may be a level of repetition in a
State's request, but FEMA would prefer to ensure it has up to date
information, including recent efforts from previous disasters, for
the White House and FEMA to consider.
    \28\ FEMA has provided the supporting statement document for the
information collection, OMB Control Number 1660-0009, in the public
rulemaking docket. The supporting statement dated February 25, 2013
was the latest supporting statement prior to this proposed
regulation.
    \29\ U.S. Department of Labor, Bureau of Labor Statistics,
Occupational Employment Statistics, May 2013 National Industry-
Specific Occupational Employment and Wage Estimates, NAICS code
999200, State Government excluding schools and hospitals, and
Standard Occupational Classification (SOC) code 11-1011 for Chief
Executive. http://www.bls.gov/oes/2013/may/naics4_999200.htm.
---------------------------------------------------------------------------

    As noted above, most of the information included in the proposed
factors is information that was previously captured under the ``other
relevant information'' prong of the regulation and has been considered,
as appropriate, when evaluating requests for a major disaster
declaration that authorized IA. However, FEMA at times has had to reach