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

    \35\ FEMA also reviewed using per capita TTR and found per
capita TTR and population are not highly correlated (0.099) and that
as a result, the use of per capita TTR may have affected past
recommendations.
---------------------------------------------------------------------------

    FEMA recognizes that some disasters cause enough damage to
overwhelm even the most fiscally capable States and that disasters may
result in special circumstances. For example, a special

circumstance would be if a State has experienced several major
disasters in a very short time or if a particular disaster included
widespread and extensive damage. Another special circumstance would be
if the disaster affected a small geographic area. If a disaster request
is for a small area, FEMA will review per capita personal income by
local area data to ascertain a local government's fiscal capacity. FEMA
previously evaluated data on median household income per county. FEMA
expects that the shift from median household income per county to per
capita personal income by local area will have minimal impact and no
new costs because one is replacing the other.
    FEMA's intent in this final rule is to continue to take multiple
factors into consideration, including the fiscal capacity factor
whether it be State TTR, GDP by State, or per capita personal income.
The addition of the fiscal capacity factor will provide State-specific
information that will assist FEMA in determining whether the State is,
in fact, overwhelmed and in need of supplemental Federal assistance.
    FEMA will continue to use multiple factors and relevant data to
formulate its recommendations to the President on major disaster
declarations that authorize IA.\36\ No single data point or factor will
singularly affect FEMA's recommendation or the President's ultimate
determination of whether to issue a major disaster declaration
authorizing IA.
---------------------------------------------------------------------------

    \36\ An in-depth discussion of the factors and relevant data
considered is presented herein. See ``III. Discussion of Public
Comments on Proposed Rule.'' With the exception of TTR, the proposed
factors have been taken into consideration by FEMA in the past when
making past recommendations for major disaster declarations
including IA. The factors were covered, but not specified,
previously under the ``other relevant information'' prong of 44 CFR
206.48. FEMA continues to emphasize that no single factor would be
used to determine if a recommendation is warranted.
---------------------------------------------------------------------------

5. Impacts to Costs, Benefits, and Transfer Payments
    In the following section, FEMA will discuss the rule's quantified
costs, qualitative benefits, and why there are no expected effects to
transfer payments.
a. State Costs
    FEMA received multiple comments questioning whether the full costs
to States had been captured in the NPRM. In general, commenters
questioned whether the additional burden resulting from the new Fiscal
Capacity Factor was accurate; pointed out that the cost of State
personnel attending training was omitted; and voiced concern that the
final rule would slow the declaration process because key decision
makers might not be familiar with the final rule. FEMA considered each
of the comments and adjusted its estimated costs accordingly by
incorporating new training costs, familiarization costs, updated data
retrieval costs, and new costs associated with States incorporating the
new Fiscal Capacity data into existing files and processes. FEMA also
more descriptively presented the baseline data on which its cost
estimates are based.\37\ A more detailed summary of these comments, and
FEMA's responses, follows.
---------------------------------------------------------------------------

    \37\ Baseline data estimates were presented qualitatively in the
NPRM, but have been included quantitatively in the Final Rule.
---------------------------------------------------------------------------

    Additional Burden from Fiscal Capacity Factor. Four commenters
questioned whether the estimate of the additional burden resulting from
the new Fiscal Capacity Factor was accurate. Specifically, three States
(Indiana, Florida, New York) and one emergency management association
(NEMA) pointed out that incorporating new data points into the IA
declaration request will increase staff time.
    FEMA concurs with these comments and adjusted its cost estimates
associated with States downloading the new Fiscal Capacity factor data
and incorporating the data into existing files and processes. FEMA did
not include an additional burden for reviewing the data because review
and analysis of this data occurs when the declaration request is being
formulated by the State. The costs of reviewing any data included in
the request is already embedded in the process. As shown by FEMA's
baseline analysis, many of the factors and sub-factors listed in the
rule have previously been submitted or requested subsequent to a State
request for a major disaster declaration that includes IA, and
codifying them will not increase costs. FEMA does not expect or require
States to include every factor in every disaster declaration request.
FEMA anticipates that States will continue to provide a comparable
level of information in their request letters, based upon their
respective circumstances and disaster effects. However, fiscal capacity
in the form of TTR (States), GDP by State (Territories), or Per Capita
Personal Income (PCPI) (small areas) typically has not been provided by
States or considered by FEMA and it will impose a new cost. Data
related to fiscal capacity is available from publicly accessible
databases and websites. For this reason, States can access and download
the data without incurring any costs for the data itself.
    However, FEMA recognizes that there will be an additional burden to
States resulting from downloading the relevant Fiscal Capacity data
annually and adjusting their templates and files in year 1. The
estimated cost for all States is $8,935 in year 1 and $1,787 in each
subsequent year. FEMA has included these costs in the final rule as a
result of public comments received on the NPRM.
    FEMA estimates that in year 1 each State will spend approximately
four hours on downloading the new fiscal capacity data and adjusting
files and templates to incorporate the new Fiscal Capacity factor.\38\
To estimate the additional activity time, FEMA performed a ``dry run''
retrieval and storage of the fiscal capacity data for 13 randomly
chosen States.\39\ FEMA estimates it will take 10 to 15 minutes to
retrieve and store Treasury's TTR data (including all State data in a
single retrieval). The average of this range, 12.5 minutes, is used in
this analysis. FEMA estimated it would take the equivalent amount of
time for the BEA's GDP by State data, and uses 12.5 minutes for that
retrieval and storage. FEMA estimated it would take 15 to 30 minutes to
retrieve BEA's per capita personal income data and used the average of
22.5 minutes for that retrieval and storage. FEMA summed these three
time burdens to calculate a total burden of 47.5 minutes (12.5 + 12.5 +
22.5 = 47.5). The total burden of 47.5 minutes was divided by 60
minutes, for an estimated increased burden of approximately 0.8 hours
((12.5 + 12.5 + 22.5) / 60 = 0.7917).
---------------------------------------------------------------------------

    \38\ FEMA will provide links to the relevant data on its
website, www.FEMA.gov. In addition, to maintain records and support
FEMA's work, the data likely will be stored by FEMA's IA Program.
FEMA assumes that States will use the links to the data sources
provided by FEMA.
    \39\ The times listed for data retrieval represent the time it
took FEMA to pull the information directly from the Treasury and BEA
sources. FEMA will provide links to the data sources on its website,
www.FEMA.gov to facilitate access to the data sources for States.
---------------------------------------------------------------------------

    FEMA's ``dry run'' example analysis took approximately 3.2 hours
and included formatting the tables into a useable format for analysis
(1.6 hours) and creating tables and graphs (1.6 hours). FEMA estimates
it will take a similar amount of time for States to update their
current templates to incorporate the new fiscal capacity data. Based on
this experience, FEMA estimates that downloading the data and adjusting
files and templates will take each State approximately 4.0 hours in
year 1 (0.8 hours + 1.6 hours + 1.6 hours = 4.0 hours). The total time
for all 56

States \40\ is 224 hours (4.0 hours x 56 States = 224 hours).
---------------------------------------------------------------------------

    \40\ There are 56 States, as defined by 44 CFR 44 CFR
206.2(a)(22). Throughout this analysis, ``States'' includes the 50
U.S. States, District of Columbia, and the 5 territories listed
(Puerto Rico, the Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands).
---------------------------------------------------------------------------

    FEMA anticipates a State Government First-Line Supervisor of Office
and Administrative Support Workers (1st Line Supervisor), or
equivalent, will download the data and adjust the templates and files.
The fully-loaded wage rate for the 1st Line Supervisor is $39.89 \41\
per hour.\42\ To estimate the total costs for States, FEMA multiplied
the fully-loaded hourly rate for a 1st Line Supervisor by the total
hours for all States resulting in total costs to download the data and
update templates and files in year 1 of $8,935 ($39.89 per hour x 224
hours = $8,935.36). In subsequent years, only downloading and data
entry into files and templates is expected. As stated previously, FEMA
estimates this will take 0.8 hours. Using the same methodology, FEMA
multiplied 0.8 hours by 56 States and then multiplied by the fully-
loaded hourly rate of $39.89 for a total of $1,787 per year beginning
in year 2 (0.8 hour x 56 States x $39.89 per hour = $1,787.07).
---------------------------------------------------------------------------

    \41\ Bureau of Labor Statistics, Employer Costs for Employee
Compensation, Table 1. Employer Costs Per Hour Worked for Employee
Compensation and Costs as a Percent of Total Compensation: Civilian
Workers, by Major Occupational and Industry Group, June 2016.''
Calculated by dividing total compensation for all workers of $34.05
by wages and salaries for all workers of $23.35 per hour (yields a
benefits multiplier of approximately 1.46 x wages). https://www.bls.gov/web/ecec/ececqrtn.pdf. Accessed and downloaded, October
12, 2016.
    \42\ Base hourly wage rate of $27.32 multiplied by a 1.46
benefits factor. ($27.32 x 1.46 = $39.89). U.S. Department of Labor,
Bureau of Labor Statistics, Occupational Employment Statistics, May
2016, All Data (XLS), National Industry-Specific Occupational
Employment and Wage Estimates, NAICS code 999200, State Government
excluding schools and hospitals, and Standard Occupational
Classification (SOC) code 43-1011 for First-Line Supervisors of
Office and Administrative Support Workers. https://www.bls.gov/oes/tables.htm. Accessed and downloaded, October 12, 2016.
---------------------------------------------------------------------------

    Training Costs. FEMA received two comments that noted there would
be time and expense involved for States in training employees. FEMA has
added a cost for States to attend FEMA-provided training on the final
rule.\43\ Training attendance is voluntary, but FEMA has estimated
costs based on the assumption that all States will attend training.
---------------------------------------------------------------------------

    \43\ FEMA provided two outreach webinars for the NPRM and plans
to have four training webinars for the final rule. The total
training costs included herein represent the aggregate training
costs for the NPRM and the final rule. States' costs are for
attending the FEMA-provided training; FEMA costs are for developing
and presenting the training.
---------------------------------------------------------------------------

    Given that the intent of the rule is to provide clarity, FEMA will
offer training for all States on the changes included in the rule. FEMA
included the costs associated with States attending training on the
rule in year 1. Outreach webinars were offered by FEMA following the
publication of the NPRM. To estimate the cost of the training to States
and capture the costs associated with the outreach webinars, FEMA used
the participation data from the NPRM outreach webinars. They were
presented via webinar, lasted one hour, and generally were attended by
two \44\ individuals per State, no matter the size of the State or if
the State was prone to experience disasters.
---------------------------------------------------------------------------

    \44\ FEMA anticipates that one of the positions would be a State
Government Chief Executive, or equivalent, and the other would be a
State Government 1st Line Supervisor, or equivalent.
---------------------------------------------------------------------------

    FEMA calculated the cost of the training to the States by adding
the fully-loaded hourly wage rate for both State staff and multiplying
by the number of States. The estimated total cost of States attending
the training is $13,340.\45\
---------------------------------------------------------------------------

    \45\ The calculation uses a base of 56 States, which includes
the 50 U.S. States, the District of Columbia, and 5 territories. The
result is multiplied by 2, once for outreach webinars that have
already been completed and once for the final rule training. {[2
webinars x ($79.22 + $38.89) x 1 hour x 56 States =
$6,670.16]{time} =$13,340.32
---------------------------------------------------------------------------

    Familiarization Costs. Three comments were received that noted
States, local emergency management divisions, or impacted jurisdictions
would have to become familiar with the final rule. In response, FEMA
added familiarization costs for States, but not for local emergency
management divisions or jurisdictions. FEMA chose not to include new
costs for locals because the final rule applies to States, which is the
level from which a major disaster declaration request is made. Further,
FEMA assumes States regularly update their emergency response networks
and local emergency management divisions on changes in the field. FEMA
believes that States will continue to disseminate the new information
through each State's respective process.
    To estimate the time for States to understand changes made to the
regulations, FEMA included time for State employees to familiarize
themselves with the regulations. FEMA estimates States will spend 0.5
hours to familiarize themselves and understand the new factor data
requirements.\46\ FEMA assumes a State Government Chief Executive, a
senior level government official, or equivalent, familiar with State
emergency assistance programs, will read the existing and new
regulations to understand the changes. The fully-loaded wage rate for a
State Government Chief Executive is $79.22 \47\ per hour.\48\ The
hourly rate of $79.22 is multiplied by 0.5 hour and 56 States to
calculate a State cost in year 1 of $2,218 to familiarize themselves
with the new rule ($79.22 x 0.5 x 56 = $2,218.16). FEMA also assumes
that each State will review the supplemental guidance materials at
least once in year 1 and once each subsequent year. The estimated cost
for each subsequent year uses the same method as above, but reduces the
time needed from 0.5 hours to 0.25 hours, for the Chief Executive to
refresh his or her understanding. The resulting cost for each
subsequent year is estimated at $1,109. ($79.22 x 0.25 x 56 =
$1,109.08)
---------------------------------------------------------------------------

    \46\ To estimate the time for States to familiarize themselves
and understand the new factor data requirements, FEMA surveyed its
own employees who formerly worked for State governments. Thirteen
employees were identified who worked for various States,
representing multiple regions, State sizes, and a range in years of
service in State government and FEMA. These employees were asked to
read the proposed and existing regulations and answer questions to
test their understanding of the changes. The employees also were
provided a copy of excerpts of this regulatory preamble if they
needed further information to answer the test. Approximately 40
percent of the employees referred back to the preamble to answer the
questions. It took an average of 17 minutes to read the existing and
proposed regulatory text and 11 minutes to answer the questions,
including referring back to the preamble. FEMA rounded 28 minutes
(11 minutes +17 minutes) to 30 minutes and used 0.5 hours to
calculate the costs.
    \47\ Bureau of Labor Statistics, Employer Costs for Employee
Compensation, Table 1. Employer Costs Per Hour Worked for Employee
Compensation and Costs as a Percent of Total Compensation: Civilian
Workers, by Major Occupational and Industry Group, June 2016.''
Calculated by dividing total compensation for all workers of $34.05
by wages and salaries for all workers of $23.35 per hour (yields a
benefits multiplier of approximately 1.46 x wages). https://www.bls.gov/web/ecec/ececqrtn.pdf. Accessed and downloaded, October
12, 2016.
    \48\ Base hourly wage rate of $54.26 multiplied by a 1.46
benefits factor. ($54.26 x 1.46 = $79.22)
    U.S. Department of Labor, Bureau of Labor Statistics,
Occupational Employment Statistics, May 2016, All Data (XLS),
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 Executives. https://www.bls.gov/oes/tables.htm.
Accessed and downloaded, October 12, 2016.
---------------------------------------------------------------------------

    Potential Delay in Submitting the Declaration Request. Seven
commenters were concerned that this final rule requires so much
additional information and will result in increased workload while a
disaster is unfolding that future major disaster requests would be
delayed. FEMA contends that this final rule will not delay the major
disaster request process, based on its review of the 85 major disaster
declaration

requests for IA that States submitted between January 1, 2012 and
December 31, 2016. All were examined, whether the declaration was
granted or denied.
    FEMA found that the four new Fiscal Capacity sub-factors had not
been provided previously by States. FEMA found that out of the
remaining 23 sub-factors, 19 were provided in at least 80 percent of
the requests and only 4 were provided in less than 20 percent of the
request letters. All four are sub-factors of the Disaster Impacted
Population Profile factor. Specifically, the four sub-factors are the
percentage of population already receiving government assistance such
as Supplemental Security Income and Supplemental Nutrition Program
benefits appeared in only 5 percent of the requests (4 occurrences in
85 total requests); the percentage of the population who speak a
language other than English and speak English less than ``very well' in
only 7 percent of the requests (6 occurrences in 85 total requests);
the percentage of population 18 years old and younger in only 18
percent (15 occurrences in 85 total requests); and any unique
considerations regarding American Indian and Alaskan Native Tribal
populations that may not be reflected in the U.S. Census Bureau data in
only 18 percent of the requests (15 occurrences in 85 requests). FEMA
found that these specific sub-factors were included by States when they
believed the disaster adversely affected and heighted the vulnerability
of these particular segments of the population. This is consistent with
to FEMA's long-standing consideration of how any given disaster affects
the population that is 65 years and greater, as well as the percentage
of the population with a disability. The detailed findings are
presented in Table 5, and in the marginal analysis table posted in the
docket at www.regulations.gov.
    The 23 sub-factors being codified were previously captured under
the ``other relevant information'' prong of 44 CFR 206.48. FEMA does
not expect or require States to include every factor in every disaster
declaration request. FEMA expects that States will continue to provide
a comparable level of information in their request letters based on
their respective circumstances and disaster effects; thus, FEMA does
not include a cost for codifying this information and does not expect
any delays to the major disaster declaration request process.
    FEMA notes that if a State is unable to provide information for a
particular factor, or factors, FEMA will 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 rule, is to clearly identify the considered data points that
previously have been captured under the ``other relevant information''
prong of 44 CFR 206.48. In some instances, certain pieces of
information identified in the rule may not be applicable, may be
unavailable, or the circumstances of the disaster may not allow a State
to collect some information identified within the rule. In these
instances, pursuant to 44 CFR 206.36, States must provide some
information that supports their request for a major disaster
declaration authorizing IA, but will not have to address every data
point in 44 CFR 206.48 to be granted the request. For example, for
certain catastrophic events, preliminary damage assessments are not
necessary to determine the requirement for Federal assistance. In these
instances, States may submit an abbreviated request pursuant to 44 CFR
206.36(d). These requests need only contain limited information as
specified by that provision.
    Large scale disasters may not need as much detail or data to
support a major disaster declaration request. However, under other
circumstances, such as when the disaster affects a smaller geographic
area, it may be more difficult to determine if a need for Federal
disaster assistance exists without the State providing sufficient
information. This rule identifies the factors that FEMA will consider
in its review of a major disaster declaration request that includes IA,
and allows States to supplement their submissions with additional
information. It is important to note that ultimately, the amount and
type of data provided by the State is voluntary. In addition, FEMA
confirmed that the Fiscal Capacity factor and its sub-factors are
updated at least annually and are publicly available on Treasury's and
BEA's websites at no cost to States.49 50 Given that these
data are updated at least annually, States are encouraged to download
the data when they are updated.
---------------------------------------------------------------------------

    \49\ Treasury's website provides current and past TTR
information for all States. Data has been provided annually in mid-
to late September since 1999. The only exception was in 2010, when
the data was provided on September 30, 2010, and again on December
13, 2010, which was a research series. See Treasury, Resource
Center, Total Taxable Resources, https://home.treasury.gov/policy-issues/economic-policy/total-taxable-resources.
    \50\ BEA's website provides current and past GDP by State and
Local Area Personal Income. Annual GDP by State data are updated
quarterly with the final published in May, following the calendar
year the data represents. For example, the final GDP by State in
2015 was published in May 2016. This data has been published
annually since May 1988. For Local Area Personal income, BEA updates
the data quarterly a final for each year provided in November,
following the calendar year the data represents. For example, the
final data Local Are Personal Income in 2015 was published in
November 2016. BEA first published personal income for States,
counties, and metropolitan areas in 1975. See BEA, Local Area
Personal Income Methodology at I-2 (Nov. 2016), available at https://www.bea.gov/sites/default/files/methodologies/0417_GDP_by_State_Methodology.pdf.
---------------------------------------------------------------------------

    FEMA estimates total State costs in the first year to be $24,494
and costs in subsequent years to be $2,896. The following table
presents the ten-year costs for States (undiscounted, discounted at 7
percent and discounted at 3 percent).

                                       Table 3--Total Costs to the States
----------------------------------------------------------------------------------------------------------------
                                                    Downloading       Cost to
                      Year                         and updating     familiarize      Training          Total
                                                       files         with rule
----------------------------------------------------------------------------------------------------------------
1...............................................          $8,935          $2,218         $13,340         $24,494
2...............................................           1,787           1,109               0           2,896
3...............................................           1,787           1,109               0           2,896
4...............................................           1,787           1,109               0           2,896
5...............................................           1,787           1,109               0           2,896
6...............................................           1,787           1,109               0           2,896
7...............................................           1,787           1,109               0           2,896
8...............................................           1,787           1,109               0           2,896
9...............................................           1,787           1,109               0           2,896

10..............................................           1,787           1,109               0           2,896
                                                 ---------------------------------------------------------------
    Total.......................................          25,019          12,199          13,340          50,558
    Discounted at 7%............................          19,232           8,826          12,468          40,525
    Annualized at 7%............................           2,738           1,257           1,775           5,770
    Discounted at 3%............................          22,184          10,537          12,952          45,673
    Annualized at 3%............................           2,601           1,235           1,518           5,354
----------------------------------------------------------------------------------------------------------------

b. Federal Costs
    FEMA anticipates the Federal government will incur small additional
costs resulting from the final rule. As noted above, FEMA already
considers most of these factors under the ``other relevant
information'' prong of the regulation when reviewing major disaster
declaration requests. FEMA already had begun changing the way it
collects information internally for major disaster declaration
recommendations, which did not require regulatory action. Therefore,
these increased costs already had been internalized without this
regulation. For this reason, the only expected increased costs are due
to the new Fiscal Capacity factor. FEMA believes this additional
activity will be accomplished with existing personnel; thus, the costs
are considered the opportunity cost of the activities that would have
otherwise been performed. No increase in Federal expenditures is
expected to result from this final rule.
    In the past, FEMA would review pre-disaster data about a disaster
location. This pre-disaster data provided FEMA with information that
helped to illustrate the population and geographic area that was
affected by a disaster. The pre-disaster data came from Federal
sources, such as the United States Census Bureau and Bureau of Economic
Analysis (BEA). Independent of the regulation, FEMA began to streamline
how pre-disaster data is collected and disseminated, as well as collect
and transmit information for the PDA process more quickly.
    One of the areas where FEMA will incur costs is for the retrieval
of fiscal capacity data from the United States Department of the
Treasury (Treasury) and BEA. FEMA used the same information on
estimated additional activity time that was presented previously: Time
to retrieve, store, and update the data from Treasury (12.5 minutes);
BEA's GDP by State (12.5 minutes); and BEA's per capita personal income
by local area (22.5 minutes). FEMA summed these three time burdens to
calculate a total burden of 47.5 minutes (12.5 + 12.5 + 22.5 = 47.5).
The total burden of 47.5 minutes was divided by 60 minutes, for an
estimated increased burden of 0.8 hours ([12.5 + 12.5 + 22.5] / 60 =
0.7917).
    FEMA expects the data retrieval will take place once annually. The
retrieval will be completed by a Federal employee in the DC area at the
General Schedule 12, step 1 level, earning an hourly wage rate of
$36.60.\51\ These positions have a fully-loaded wage rate of
$53.44.\52\ FEMA multiplied the time per year, 0.8 hours, by the fully-
loaded wage rate of $53.44, to get an annual Federal cost increase of
$43 (0.8 x $53.44 = $42.75).
---------------------------------------------------------------------------

    \51\ The General Schedule (GS) 12 (Step 1) hourly wage of $37.13
is taken from the Office of Personnel Management; 2015 General
Schedule (GS) salaries & wages tables; locality pay tables
(Washington-Baltimore- Northern Virginia, DC-MD-VA-WV-PA). Retrieved
April 4, 2016, from https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2015/salhrl.pdf.
    \52\ Base hourly wage rate of $36.60 multiplied by a 1.46
benefits factor. ($36.60 x 1.46 = $53.44)
     Bureau of Labor Statistics, Employer Costs for Employee
Compensation, Table 1. Employer Costs Per Hour Worked for Employee
Compensation and Costs as a Percent of Total Compensation: Civilian
Workers, by Major Occupational and Industry Group, June 2016.''
Calculated by dividing total compensation for all workers of $34.05
by wages and salaries for all workers of $23.35 per hour (yields a
benefits multiplier of approximately 1.46 x wages). https://www.bls.gov/oes/tables.htm. Accessed and downloaded, October 12,
2016.
---------------------------------------------------------------------------

    FEMA also included costs in year 1 associated with providing
training on the rule. FEMA received a public comment requesting FEMA to
provide adequate training on the rule once finalized. As a result of
this comment, and because the intent of the rule is to provide clarity,
FEMA provided outreach seminar to States after the NPRM and will offer
training for all States on the changes included in the final rule.
Thus, FEMA has added the cost for these events to the analysis of this
final rule. To estimate the costs of the rule and capture the cost of
developing both the NPRM outreach and the final rule training to
States, FEMA used the time data from developing and presenting the NPRM
training.
    The NPRM outreach materials will be modified to reflect the content
of the final rule. FEMA anticipates this activity will be accomplished
by a Federal employee in the DC area at the General Schedule 15, step 5
level, earning an hourly wage rate of $68.56.\53\ These positions have
a fully-loaded wage rate of $100.10.\54\ FEMA estimates it will spend a
total of 5 hours preparing training materials, including the time spent
developing the original training materials and updating the existing
materials,\55\ which results in a one-time cost of $500 ($100.10 x 5
hours = $500.50).\56\ In addition, the training materials are reviewed
by two Federal employees in the DC area at the General Schedule 13,
step 5, earning an hourly wage rate of $49.32. FEMA multiplied this
wage rate by 1.46 to account for benefits, resulting in a fully-loaded
wage rate of $72.01. FEMA estimates spending approximately 0.5 hours
for each employee to review each set of training materials.\57\ The
resulting

review time is estimated at $144 ($72.01 x 2 staff x 0.5 hours x 2
reviews = $144.02).
---------------------------------------------------------------------------

    \53\ The General Schedule (GS) 15 (Step 5) hourly wage of $37.13
is taken from the Office of Personnel Management; 2015 General
Schedule (GS) salaries & wages tables; locality pay tables
(Washington-Baltimore- Northern Virginia, DC-MD-VA-WV-PA). Retrieved
April 4, 2016 from https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2015/salhrl.pdf.
    \54\ Base hourly wage rate of $68.56 multiplied by a 1.46
benefits factor. ($68.56 x 1.46 = $100.10)
     Bureau of Labor Statistics, Employer Costs for Employee
Compensation, Table 1. Employer Costs Per Hour Worked for Employee
Compensation and Costs as a Percent of Total Compensation: Civilian
Workers, by Major Occupational and Industry Group, June 2016.''
Calculated by dividing total compensation for all workers of $34.05
by wages and salaries for all workers of $23.35 per hour (yields a
benefits multiplier of approximately 1.46 x wages). https://www.bls.gov/oes/tables.htm. Accessed and downloaded, October 12,
2016.
    \55\ FEMA took 3 hours to develop the NPRM outreach webinar and
expects to take 2 hours to update that same material for training on
the final rule.
    \56\ Although commonly held rounding methods hold that $500.50
is rounded up to $501, FEMA did not round up at this step. The
calculation method used in this analysis rounds up to the nearest
dollar at the final calculation.
    \57\ The FEMA employees who review the materials will do so two
times--once for the NPRM outreach materials and once for the final
rule materials.
---------------------------------------------------------------------------

    FEMA presented one-hour outreach sessions two times for the NPRM
via webinar and anticipates the same format for the final rule
training, but will increase the number of times the training will be
offered to four for the final rule. The set-up and technical monitoring
of the webinars is expected to be accomplished by two General Schedule
12, step 1 level, with a fully-loaded wage rate of $53.44. Based on its
previous experience, FEMA estimates it will take 0.5 hours to set up
and take down the webinar plus an additional 1 hour to monitor. FEMA
estimates the one-time cost to set up and monitor the webinars is $962
($53.44 x 1.5 hours x 2 staff x 6 webinars \58\ = $961.92).
---------------------------------------------------------------------------

    \58\ The total number of webinars reflects two conducted to
support the NPRM and four for the final rule.
---------------------------------------------------------------------------

    The training is presented by four FEMA staff located in the DC
area, one GS 15, step 5 level and three GS 13, step 5 level with fully-
loaded hours wage rates of $100.10 and $72.01, respectively. To present
six, one-hour webinars, the estimated total costs for presenters is
$1,897 [($100.10 x 1 GS-15 staff x 6 hours) + ($72.01 x 3 GS-13 staff x
6 hours) = $1,896.78].
    FEMA estimates the Federal Government's total costs in the first
year to be $3,546, which includes $43 to retrieve fiscal capacity data;
$500 to develop and update the training; $144 to review the updates;
$962 to set-up and monitor the webinars; and $1,897 to present the
training ($42.75 + $500.50 + $144.02 + $961.92 + $1,896.78 =
$3,545.97). Costs in subsequent years are estimated to be $43 for
retrieving the fiscal capacity data. The following table presents the
total ten-year costs for both FEMA and States (undiscounted, discounted
at 7 percent and discounted at 3 percent).

                                                            Table 4--Total Costs of the Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              States                                   FEMA
                                                         --------------------------------------------------------------------------------
                          Year                              Downloading                                                                        Total
                                                             data and       Familiarize      Training       Downloading      Training
                                                          updating files     with rule                         data
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.......................................................          $8,935          $2,218         $13,340             $43          $3,503         $28,040
2.......................................................           1,787           1,109               0              43               0           2,939
3.......................................................           1,787           1,109               0              43               0           2,939
4.......................................................           1,787           1,109               0              43               0           2,939
5.......................................................           1,787           1,109               0              43               0           2,939
6.......................................................           1,787           1,109               0              43               0           2,939
7.......................................................           1,787           1,109               0              43               0           2,939
8.......................................................           1,787           1,109               0              43               0           2,939
9.......................................................           1,787           1,109               0              43               0           2,939
10......................................................           1,787           1,109               0              43               0           2,939
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................          25,019          12,199          13,340             430           3,503          54,494
    Discounted at 7%....................................          19,232           8,826          12,468             302           3,274          44,102
    Annualized at 7%....................................           2,738           1,257           1,775              43             466           6,279
    Discounted at 3%....................................          22,184          10,537          12,952             367           3,401          49,441
    Annualized at 3%....................................           2,601           1,235           1,518              43             399           5,796
--------------------------------------------------------------------------------------------------------------------------------------------------------

c. Benefits
    Benefits of the final rule include clarifying FEMA's existing
practices and reducing processing time for requests, while maintaining
the States' ability to assess and determine what information best
supports a major declaration request. This rule does not preclude that
flexibility for States. Rather, the rule provides clarity by
specifically identifying factors considered in the IA declarations
process, including many factors that FEMA previously considered under
the ``other relevant information'' prong of the regulation but are not
currently specified in 44 CFR 206.48(b).
    As noted above, most of the information included in the factors was
previously captured under the ``other relevant information'' prong of
the 44 CFR 206.48. FEMA used this information, when appropriate, in
evaluating requests for a major disaster declaration that authorized
IA. In some instances, FEMA has had to reach back to the State to
obtain additional information \59\ on major disaster declaration
requests which would better support FEMA's recommendation on a major
disaster declaration authorizing IA. By clearly identifying information
considered in the rule, FEMA anticipates that delays in the declaration
process will be reduced. The changes in the final rule will improve
clarity regarding relevant information that can be used to substantiate
a declaration request. States are encouraged to include the additional
information in the original request because it may reduce follow-up
correspondence and speed up the determination of a major disaster
declaration request. Currently, FEMA does not track the number of times
FEMA has had to reach back to the State for additional information and
the reduction cannot be quantified at present. However, FEMA subject
matter experts believe that greater clarity will promote understanding,
resulting in less back-and-forth.\60\
---------------------------------------------------------------------------

    \59\ Historically, FEMA has attempted to increase clarity by
providing States with major disaster declaration request template
letters, which provided a suggested organizational structure for
States to follow when making their request for a major disaster
declaration.
    \60\ In making past determinations, FEMA has not tracked the
length of time or the number of written or oral correspondence with
the State to retrieve additional data. Therefore FEMA cannot
quantify the potential savings from the clarifications provided in
the regulation.
---------------------------------------------------------------------------

    FEMA believes inclusion of the new Fiscal Capacity factor will
further inform and strengthen FEMA's recommendations to the President
with regard to major disaster declarations that authorize IA. TTR is
sufficiently reliable to serve as the principal indicator for each
State from which the discussion about fiscal capacity can begin. TTR
provides a general picture of how a State's economy is changing over
time. FEMA recognizes there is a two-year lag in TTR data and
encourages

each State to provide additional information about its fiscal capacity,
especially if there have been noteworthy changes during the two-year
period. In addition, the new information considered provides more
context about a State's capacity to respond than information FEMA
previously considered. For example, although FEMA previously considered
median household income for States, this measure does not necessarily
reflect the State's capacity to respond, because it is based on the
individuals' earnings. Certainly, individual household incomes within a
State can affect the State's capacity to respond, but TTR provides a
more direct measurement. The new information also may be more objective
compared to other ways of assessing a State's capacity to respond for
the same reasons.
d. Transfer Payments
    FEMA intends the rule to specify and codify factors it will use
when making recommendations to the President. FEMA already considers
the majority of these factors described in the rule and has done so
during previous deliberations on whether to recommend a major disaster
declaration authorizing IA to the President. The only information FEMA
has not specifically considered in the past are the new measures of
fiscal capacity.
    Based on FEMA's retrospective analysis on the effect of using ICC
ratios in past declaration decisions, FEMA concludes that even though
State TTR is a new factor, it will not have an impact on the overall
number of major disaster declarations granted each year that authorize
IA because FEMA previously used similar economic data and takes
multiple factors into account when making its recommendation. FEMA
finds including the fiscal capacity factor (State TTR for States; GDP
by State for Territories, and per capita personal income for areas
smaller than States and Territories) to be additional objective
information because it captures income flows that a State can
potentially tax.
    The ultimate determination regarding whether or not to grant a
State's request for a major disaster declaration resides with the
President of the United States. FEMA neither anticipates nor intends
for this rule to affect the number of major disaster declarations
authorizing IA that are granted each year. Rather, FEMA believes this
rule clarifies FEMA's regulations consistent with the statutory mandate
in a cost-effective manner. The majority of the factors included in the
rule have previously been considered by FEMA when it made its
recommendation to the President on past declaration requests for IA.
Based on these reasons, FEMA anticipates this rule will not have an
effect on transfer payments, which are payments from the Federal
government to States and individuals.
6. Total Impact of the Final Rule
    FEMA estimates the impact of all the factors together will result
in a small burden increase for States and FEMA. The additional burden
results from States having to provide the Fiscal Capacity factor in
their requests, to attend training, and to become familiar with the
regulatory change. For FEMA, the additional costs result from
retrieving data for its consideration of major disaster declaration
requests and providing training on the rule to States. The net
quantified impact is a ten-year total cost of $44,102 discounted at 7
percent and $49,441 discounted at 3 percent. These are considered
opportunity costs and are not expected to increase staffing needs or
have an effect on Federal or State expenditures. FEMA anticipates no
impact to average annual transfer payments due to codifying the
existing factors or including the new factor. Based on the above
analysis, FEMA estimates the rule will impose a total additional annual
burden to States and FEMA of $28,040 in year 1 and $2,939 in each
subsequent year.
7. Marginal Analysis of the Factors
    The following table provides a breakdown of each IA declaration
factor included in the final rule, its baseline, and the marginal
effect of the rule. Activity costs per year \61\ and associated
benefits also are included. The rule would not change the total amount
of Federal assistance available to individuals and households.
---------------------------------------------------------------------------

    \61\ FEMA based the proportional distribution of the fiscal
capacity factor costs in Table 6 on the estimated time it takes to
retrieve, store, and update the data, as shown in section ``5.a.
State Costs.'' FEMA estimated a total burden of 47.5 minutes (0.8
hours). Specifically, costs are apportioned to TTR data from
Treasury (12.5 minutes or 26 percent of the total); BEA's GDP by
State (12.5 minutes or 26 percent of the total); and BEA's per
capita personal income by local area (22.5 minutes or 48 percent of
the total). For example, FEMA estimates the total cost to FEMA for
providing the IA declaration factor training is $3,503. In Table 5
FEMA apportions 26 percent of the total ($911) to TTR, 26 percent of
the total ($911) to GDP by State, and 48 percent of the total
($1,682) to per capita personal income by local area.

                                             Table 5--IA Declarations Factor Baseline and Marginal Analysis
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                    Baseline: factors previously included in States'    Marginal analysis activity cost per year
                                                      Dec. requests                  ----------------------------------------------
              Factor               --------------------------------------------------                                                     Benefits
                                             Number of times              Percent              FEMA                  States
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fiscal Capacity:
    Total Taxable Resources (TTR)   New.............................             n/a  Training: $911--In     Training: $3,464--In   Informs States that
     of the State, 44 CFR Sec.                                                         year 1, FEMA will      year 1, States will    FEMA may assess
     206.48(b)(1)(i)(A).                                                               spend approximately    spend a total of       State's taxable
                                                                                12.7 hours to          approximately 58       resources based on
                                                                                develop, review, and   hours participating    TTR and will use
                                                                                conduct training on    in the IA              TTR as the basis
                                                                                the new factor and 0   declaration factor     for calculating the
                                                                                hours and $0 in        training, and 0        ICC ratio to depict
                                                                                subsequent years.      hours and $0 in        State economic
                                                                                subsequent years.      growth or decline
                                                                                and relative fiscal
                                                                                capacity with
                                                                                comparably-sized
                                                                                States or the
                                                                                Nation.
                                                                                Download Data: $11--   Download Data and
                                                                                In year 1, FEMA will   Update Files:
                                                                                spend 10-15 minutes    $2,323--In year 1,
                                                                                retrieving and         States will spend a
                                                                                storing Treasury       total of
                                                                                data (including all    approximately 58
                                                                                State data in one      hours retrieving and
                                                                                retrieval).            storing Treasury
                                                                                data and updating
                                                                                templates to
                                                                                accommodate the new
                                                                                data.

                                                                                $11--In subsequent     $464--In subsequent
                                                                                years, FEMA will       years, States will
                                                                                spend 10-15 minutes    spend a total of
                                                                                retrieving and         approximately 12
                                                                                storing Treasury       hours retrieving and
                                                                                data (including all    storing Treasury
                                                                                State data in one      data for their
                                                                                retrieval).            respective state.
                                                                                No new costs are       No new costs are
                                                                                included for           included for
                                                                                reviewing the data.    reviewing the data.
                                                                                FEMA review of this    FEMA assumes that
                                                                                data is offset by no   State review of this
                                                                                longer having to       data is offset by no
                                                                                review median          longer having to
                                                                                household income.      review median
                                                                                household income.
                                                                                Familiarization:
                                                                                $577--In year 1,
                                                                                States will spend a
                                                                                total of
                                                                                approximately 7.3
                                                                                hours reading the
                                                                                new rule as it
                                                                                relates to Treasury
                                                                                data.
                                                                                $288--In subsequent
                                                                                years, States will
                                                                                spend a total of
                                                                                approximately 3.6
                                                                                hours re-reading the
                                                                                rule.
    Gross Domestic Product (GDP)    New.............................             n/a  Training: $911--In     Training: $3,468--In   Informs States that
     by State 44 CFR Sec.                                                              year 1, FEMA will      year 1, States will    FEMA may assess
     206.48(b)(1)(i)(B).                                                               spend approximately    spend a total of       State fiscal
                                                                                12.7 hours to          approximately 58       capacity with this
                                                                                develop, review, and   hours participating    data point when TTR
                                                                                conduct training on    in the fiscal          data is not
                                                                                the new factor and 0   capacity factor        available or if the
                                                                                hours and $0 in        training, and 0        TTR data don't
                                                                                subsequent years.      hours and $0 in        reflect current
                                                                                subsequent years.      fiscal capacity due
                                                                                to the two-year lag
                                                                                in the data.
                                                                                Download Data: $11--   Download Data and
                                                                                FEMA will spend 10-    Update Files:
                                                                                15 minutes a year      $2,323--In year 1,
                                                                                for retrieving and     States will spend a
                                                                                storing BEA GDP data   total of
                                                                                (including all State   approximately 58
                                                                                and Territory data     hours retrieving and
                                                                                in one retrieval).     storing BEA GDP data
                                                                                and updating
                                                                                templates to
                                                                                accommodate the new
                                                                                data.
                                                                                $11--In subsequent     $464--In subsequent
                                                                                years, FEMA will       years, States will
                                                                                spend 10-15 minutes    spend a total of
                                                                                retrieving and         approximately 12
                                                                                storing BEA GDP data   hours a year for
                                                                                (including all State   retrieving and
                                                                                and Territory data     storing BEA GDP data
                                                                                in one retrieval).     for their respective
                                                                                state.
                                                                                No new costs are       No new costs are
                                                                                included for           included for
                                                                                reviewing the data.    reviewing the data.
                                                                                FEMA review of this    FEMA assumes that
                                                                                data is offset by no   State review of this
                                                                                longer having to       data is offset by no
                                                                                review median          longer having to
                                                                                household income.      review median
                                                                                household income.
                                                                                Familiarization:
                                                                                $577--In year 1,
                                                                                States will spend a
                                                                                total of
                                                                                approximately 7.3
                                                                                hours reading the
                                                                                new rule as it
                                                                                relates to BEA GDP
                                                                                data.
                                                                                $288--In subsequent
                                                                                years, States will
                                                                                spend a total of
                                                                                approximately 3.6
                                                                                hours re-reading the
                                                                                rule.
    Per Capita Personal Income by   New.............................             n/a  Training: $1,682--In   Training: $6,403--In   Provides FEMA the
     Local Area, 44 CFR Sec.                                                           year 1, FEMA will      year 1, States will    flexibility to use
     206.48(b)(1)(i)(C).                                                               spend approximately    spend a total of       information on the
                                                                                24 hours to develop,   approximately 108      local fiscal
                                                                                review, and conduct    hours participating    capacity
                                                                                training on the new    in the fiscal          characteristics to
                                                                                factor and 0 hours     capacity factor        judge IA needs in
                                                                                and $0 in subsequent   training and 0 hours   disaster affected
                                                                                years.                 and $0 in subsequent   areas.
                                                                                years.

                                                                                Download Data: $21--   Download Data and
                                                                                In year 1, and         Update Files:
                                                                                subsequent years,      $4,289--In year 1,
                                                                                FEMA will spend        States will spend a
                                                                                approximately 15-30    total of
                                                                                minutes to             approximately 108
                                                                                retrieving and         hours retrieving and
                                                                                storing BEA Per        storing BEA Per
                                                                                Capita Personal        Capita Personal
                                                                                Income data            Income data and
                                                                                (including data on     updating templates
                                                                                all local areas in     to accommodate the
                                                                                one retrieval).        new data.
                                                                                No new costs are       $858--In subsequent
                                                                                included for           years, States will
                                                                                reviewing the data.    spend a total of
                                                                                FEMA review of this    approximately 21.5
                                                                                data is offset by no   hours a year for
                                                                                longer having to       retrieving and
                                                                                review median          storing BEA Per
                                                                                household income.      Capita Personal
                                                                                Income data for
                                                                                their respective
                                                                                state.
                                                                                No new costs are
                                                                                included for
                                                                                reviewing the data.
                                                                                FEMA assumes that
                                                                                the review of this
                                                                                data is offset by no
                                                                                longer having to
                                                                                review median
                                                                                household income.
                                                                                Familiarization:
                                                                                $1,065--In year 1,
                                                                                States will spend a
                                                                                total of
                                                                                approximately 13.4
                                                                                hours reading the
                                                                                new rule as it
                                                                                relates to BEA PCPI
                                                                                data.
                                                                                $532--In subsequent
                                                                                years, States will
                                                                                spend a total of
                                                                                approximately 6.7
                                                                                hours re-reading the
                                                                                rule.
    Other Factors, 44 CFR Sec.      New.............................             n/a  FEMA's time will vary  State time will vary   Provides flexibility
     206.48(b)(1)(i)(D).                                                               and data will be       and data will be       to use any other
                                                                                used on a case-by-     used on a case-by-     data or information
                                                                                case basis as          case basis as          on a State or local
                                                                                needed. Costs not      needed. Costs not      area's fiscal
                                                                                estimated.             estimated.             capacity to judge
                                                                                disaster needs in
                                                                                affected areas.
Resource Availability:
    State Tribal and Local          76 of 85 total..................              89  $0--No change in time  $0--No change in time  Clarification of
     Governmental Organizations                                                        burden due to          burden due to          current practice in
     (NGO) and Private Sector                                                          current compliance.    current compliance.    regulation.
     Activity, 44 CFR Sec.
     206.48(b)(1)(ii)(A).
    Cumulative Effect of Recent     77 of 85 total..................              91  $0--No change in time  $0--No change in time  Clarification of
     Disasters, 44 CFR Sec.                                                            burden due to          burden due to          current practice in
     206.48(b)(1)(ii)(B).                                                              current compliance.    current compliance.    regulation.
Uninsured Home and Personal
 Property Losses:
    The cause of damage, 44 CFR     85 of 85 total..................             100  $0--No change in time  $0--No change in time  Clarification of
     Sec.   206.48(b)(2)(i).                                                           burden due to          burden due to          current practice in
                                                                                current compliance.    current compliance.    regulation.
    The jurisdictions impacted and  84 of 85 total..................              99  $0--No change in time  $0--No change in time  Clarification of
     concentration of damage, 44                                                       burden due to          burden due to          current practice in
     CFR Sec.   206.48(b)(2)(ii).                                                      current compliance.    current compliance.    regulation.
    The number of homes impacted    76 of 85 total..................              89  $0--No change in time  $0--No change in time  Clarification of
     and degree of damage, 44 CFR                                                      burden due to          burden due to          current practice in
     Sec.   206.48(b)(2)(iii).                                                         current compliance.    current compliance.    regulation.
    The estimated cost of           73 of 85 total..................              86  $0--No change in time  $0--No change in time  Clarification of
     assistance, 44 CFR Sec.                                                           burden due to          burden due to          current practice in
     206.48(b)(2)(iv).                                                                 current compliance.    current compliance.    regulation.
    The homeowner-ship rate of      54 of 85 total..................              64  $0--No change in time  $0--No change in time  Clarification of
     impacted homes, 44 CFR Sec.                                                       burden due to          burden due to          current practice in
     206.48(b)(2)(v).                                                                  current compliance.    current compliance.    regulation.
    The percentage of affected      68 of 85 total..................              80  $0--No change in time  $0--No change in time  Clarification of
     households with insurance                                                         burden due to          burden due to          current practice in
     coverage appropriate to the                                                       current compliance.    current compliance.    regulation.
     peril, 44 CFR Sec.
     206.48(b)(2)(vi).
                                   --------------------------------------------------========================

                                                                                -----------------------                       ---------------------
    The percentage of the           71 of 85 total..................              84  $0--No change in time  $0--No change in time  Clarification of
     population for whom poverty                                                       burden due to          burden due to          current practice in
     status is determined, 44 CFR                                                      current compliance,    current compliance,    regulation.
     Sec.   206.48(b)(3)(i).                                                           data collected in      data collected in
                                                                                PDA process.           PDA process.
    The percentage of the           **4 of 85 total.................               5  $0--No change in time  $0--No change in time  Clarification of
     population already receiving                                                      burden due to          burden due to          current practice in
     government assistance such as                                                     current compliance,    current compliance,    regulation.
     Supplemental Security Income                                                      data collected in      data collected in
     and Supplemental Nutrition                                                        PDA process.           PDA process.
     Assistance Program benefits,
     44 CFR Sec.
     206.48(b)(3)(ii).
    The pre-disaster unemployment   58 of 85 total..................              68  $0--No change in time  $0--No change in time  Clarification of
     rate, 44 CFR Sec.                                                                 burden due to          burden due to          current practice in
     206.48(b)(3)(iii).                                                                current compliance,    current compliance,    regulation.
                                                                                data collected in      data collected in
                                                                                PDA process.           PDA process.
    The percentage of the           69 of 85 total..................              81  $0--No change in time  $0--No change in time  Clarification of
     population that is 65 years                                                       burden due to          burden due to          current practice in
     old and older, 44 CFR Sec.                                                        current compliance,    current compliance,    regulation.
     206.48(b)(3)(iv).                                                                 data collected in      data collected in
                                                                                PDA process.           PDA process.
    The percentage of the           **15 of 85 total................              18  $0--No change in time  $0--No change in time  Clarification of
     population 18 years old and                                                       burden due to          burden due to          current practice in
     younger, 44 CFR Sec.                                                              current compliance,    current compliance,    regulation.
     206.48(b)(3)(v).                                                                  data collected in      data collected in
                                                                                PDA process.           PDA process.
    The percentage of the           57 of 85 total..................              67  $0--No change in time  $0--No change in time  Clarification of
     population with a disability,                                                     burden due to          burden due to          current practice in
     44 CFRSec.   206.48(b)(3)(vi).                                                    current compliance,    current compliance.    regulation.
                                                                                data collected in
                                                                                PDA process.
    The percentage of the           **6 of 85 total.................               7  $0--No change in time  $0--No change in time  Clarification of
     population who speak a                                                            burden due to          burden due to          current practice in
     language other than English                                                       current compliance,    current compliance,    regulation.
     and speak English less than                                                       data collected in      data collected in
     ``very well'', 44 CFR Sec.                                                        PDA process.           PDA process.
     206.48(b)(3)(vii).
    Any unique considerations       **15 of 85 total................              18  $0--No change in time  $0--No change in time  Clarification of
     regarding American Indian and                                                     burden due to          burden due to          current practice in
     Alaskan Native Tribal                                                             current compliance.    current compliance.    regulation.
     populations that may not be
     reflected in the U.S. Census
     Bureau data, 44 CFR Sec.
     206.48(b)(3)(viii).
Impact to Community
 Infrastructure:
    Life Saving and Life            71 of 85 total..................              84  $0--No change in time  $0--No change in time  Clarification of
     Sustaining Services, 44 CFR                                                       burden due to          burden due to          current practice in
     Sec.   206.48(b)(4)(i).                                                           current compliance.    current compliance.    regulation.
    Essential Community Services,   70 of 85 total..................              82  $0--No change in time  $0--No change in time  Clarification of
     44 CFR Sec.                                                                       burden due to          burden due to          current practice in
     206.48(b)(4)(ii).                                                                 current compliance.    current compliance.    regulation.
    Transportation Infrastructure   73 of 85 total..................              86  $0--No change in time  $0--No change in time  Clarification of
     and Utilities, 44 CFR Sec.                                                        burden due to          burden due to          current practice in
     206.48(b)(4)(iii).                                                                current compliance.    current compliance.    regulation.
Casualties: The number of missing,  59 of 85 total..................              69  $0--No change in time  $0--No change in time  Clarification of
 injured, or deceased individuals,                                                     burden due to          burden due to          current practice in
 44 CFR Sec.   206.48(b)(5).                                                           current compliance.    current compliance.    regulation.

Disaster Related Unemployment: The  **34 of 85 total................              40  $0--No change in time  $0--No change in time  Clarification of
 number of disaster survivors who                                                      burden due to          burden due to          current practice in
 lost work or became unemployed                                                        current compliance.    current compliance.    regulation.
 due to a disaster and who do not
 qualify for standard unemployment
 insurance, 44 CFR Sec.
 206.48(b)(6).
Summary of All Factors, 44 CFR      ................................  ..............  $3,546 in year 1 and   $24,494 in year 1 and  Informs States with
 Sec.   206.48(b).                                                                     $43 in subsequent      $2,896 in subsequent   the information
                                                                                annual reoccurring     annual reoccurring     that FEMA considers
                                                                                costs--Increased       costs--Increased       when deciding
                                                                                time burden due to     time burden due to     whether to
                                                                                the new factor,        the new factor,        recommend an IA
                                                                                downloading and        downloading and        declaration to the
                                                                                storing data, and      storing data and       President
                                                                                training (year 1       updating files,
                                                                                only).                 familiarization, and
                                                                                training (year 1
                                                                                only).
                                   --------------------------------------------------
                                         Baseline: 85 total declaration requests
                                                        examined.
                                       Marginal Effect of Final Rule: 4 New and 23
                                                  Previously Considered
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Activity Cost per Year captures training costs (development and presentation by FEMA; attendance by States) for both the NPRM outreach webinars and
  the final rule training webinars. FEMA is providing outreach and training webinars in response to a public comment requesting training on the new rule
  once finalized. Thus, FEMA has added the cost for these webinars to the analysis of this final rule. An Activity Cost per Year that is listed as
  ``$0'' represents the incremental cost associated with codifying the factor in the final rule. As stated throughout, these factors were previously
  considered; thus, there is $0 new cost, i.e. no marginal cost associated with codifying the factor.
** These factors are specific to demographic components that States do not frequently include in their disaster declaration requests. FEMA believes that
  when these factors are included in a request, it is because the affected State focuses on the vulnerability of that demographic component and its
  needs. For example, the population under 18 years of age is often included when schools have been damaged and special assistance is requested. Tribal
  concerns and the population that speaks English less than ``very well'' often are not included because these populations were not specifically focused
  on by the State. Post-disaster unemployment is often not included unless a specific industry which is key in the disaster impact area was severely
  affected. FEMA does not expect States to include every factor in every request, and anticipates States will continue to include these factors only
  where appropriate for the type and level of disaster.

8. Regulatory Alternatives
    FEMA includes the regulatory alternatives to the rule and FEMA's
reasons for not choosing each alternative in the following discussion.
FEMA's decision on each alternative was based on qualitative factors
and not on a quantitative analysis of these alternatives. When
possible, FEMA acknowledges if a given alternative could have an impact
on transfer payments or costs.
a. Voluntary, Faith and Community Based Organizations Resources
    FEMA considered removing the factor under which FEMA would consider
the availability of resources from voluntary, faith-based, and
community-based organizations during disasters. Commenters suggested
removing this factor because the available data about these resources
may not accurately reflect actual resource availability for any given
disaster. For instance, the availability of voluntary, faith-based, and
community-based organizations may be limited by such organizations'
financial circumstances, their donors' economic situations, and the
circumstances of their volunteers. FEMA recognizes this concern, but
believes that information on the activities of these organizations is
generally valuable because it can enhance the picture of disaster needs
at a local level and may offset or reveal a need for supplemental
Federal assistance. FEMA also recognizes that these organizations have
limited resources and considers this point when determining the need
for an IA declaration.
    FEMA anticipates there could be impacts on transfer payments due to
changes in the number of disaster declarations if resources available
from voluntary, faith, and community based organizations were no longer
considered. If FEMA were to remove this factor from consideration in
major disaster declaration requests for IA, it could potentially result
in either a decrease or an increase in transfer payments, depending on
the situation. For example, if a State's voluntary agencies are
overwhelmed, but the State declines to provide this information to FEMA
as part of its declaration request, then FEMA might be less likely to
find that Federal assistance is warranted. And if a State's voluntary
agencies are providing ample assistance but the State declines to
provide this information to FEMA as part of its declaration request,
FEMA might be more likely than it otherwise would to find that Federal
assistance is warranted.
b. Maintain the 44 CFR 206.48(b)(6) Table
    FEMA evaluated the usefulness of the table at current 44 CFR
206.48(b)(6), which lists the average amount of IA based on State size.
FEMA ultimately determined that the table causes confusion with
stakeholders, sometimes resulting in the misimpression that the
averages function as a threshold for whether a State should request IA.
FEMA never intended the table to set a threshold of eligibility for IA.
Rather, it is intended as guidance to States and voluntary agencies as
they develop plans and programs to meet the needs of disaster
survivors. Furthermore, the table has been interpreted by States to
suggest that State population is the main factor, or the only factor,
in determining State capability or fiscal capacity. Under this rule,
FEMA will continue to consider various factors when making its
recommendation. FEMA did not quantify the potential impacts of
implementing this alternative, but assumed there would not be economic
impacts from maintaining the table because other factors are already
considered. FEMA has chosen to remove the table for clarification
purposes.

c. Automatically Trigger Contiguous Counties and States
    Based on public comments, FEMA considered whether to include a
provision that would allow contiguous affected counties and States to
be automatically eligible for assistance under a major disaster
declaration after an event that crosses the borders of a declared
State, county, or parish. FEMA recognizes that governmental boundaries
do not bind disaster events geographically. When considering whether to
recommend a declaration in a particular area, FEMA must consider the
damages in the area, as well as the capabilities of the jurisdictional
governments. The Stafford Act requires that a Governor's request for a
major disaster declaration be 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 to effectively respond. 42 U.S.C.
5170(a). Thus, FEMA is maintaining the requirement that each State must
request a major disaster declaration after determining that the
disaster damages and impacts are beyond the capabilities of the
affected area's State or local government. FEMA cannot automatically
grant a major disaster declaration based on a request from the State's
Governor and an area's proximity to other declared areas without
evidence that the disaster damage and impacts are beyond the affected
area's capabilities.
    FEMA did not quantify the potential impacts of implementing this
alternative, but acknowledges there could be an increase in transfer
payments if FEMA automatically declared affected counties and States
contiguous to a declared State or county. FEMA believes this
alternative would increase transfer payments because specifics about
damage information and resource capabilities of nearby counties would
not be considered and contiguous counties could be provided assistance
based on geographic proximity rather than demonstrated need.
d. Considering Negative Impact on Businesses
    Commenters also recommended that FEMA consider including the impact
of an incident on businesses in affected areas due to the potential
loss of family income and the direct correlation to communities'
recovery. Consistent with the proposed rule, FEMA included a factor in
this rule that considers the impact to businesses by capturing the
negative impacts to employers and employees who are disaster survivors.
See 44 CFR 206.48(b)(6). As part of information provided under this
factor, the State may provide an estimate of the number of disaster
survivors who lost work or became unemployed due to a disaster and who
do not qualify for standard unemployment insurance, as well as
information regarding major employers affected. The negative impact on
the survivors may affect a community's ability to recover. This impact
is captured in the Disaster Unemployment Assistance (DUA) factor, which
provides information on the potential need for 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. See id.; see also 44 CFR 206.141.
    Business losses alone 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, if disaster survivors lose work or become unemployed due to
business impacts from a disaster, this information may highlight an
increased need for DUA. In addition, the SBA has separate statutory
authority and programs, which may be available to assist businesses
regardless of whether the President has issued a major disaster
declaration.
    FEMA did not quantify the impacts of the alternative considering
business losses separately from business impacts to disaster survivors
because FEMA cannot provide assistance for business losses.
e. Linking Individual Assistance Cost Factor With Public Assistance
(PA) Cost Factor
    Commenters also recommended that FEMA consider aligning the
financial indicators for IA and PA major disaster declarations.
Commenters asked why a financial indicator could not be used for IA
since FEMA evaluates whether a State is eligible for PA based on a
financial indicator. Currently, FEMA evaluates the need for a PA major
disaster declaration using the estimated cost of Federal and non-
Federal public assistance per capita (i.e., against the statewide
population). 44 CFR 206.48(a)(1). That factor also establishes a $1
million threshold, based on the proposition that even States with the
smallest populations have the capability to cover that level of
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.
    Since the per capita indicator was initially adopted in 1986, it
has lost its relation to both of the metrics upon which it was first
calculated. In 1986, per capita personal income (PCPI) in the United
States was $11,687. By 2015, PCPI had risen to $48,112, an increase of
over 300 percent. FEMA has applied inflation adjustments since 1999,
and the per capita indicator has risen by just 41 percent over that
same period.
    The Public Assistance per capita indicator has also fallen short of
keeping pace with State general fund expenditures. According to the
National Association of State Budget Officers (NASBO), State general
fund spending in 2015 totaled $759.4 billion. Collectively, the States'
per capita indicators equaled $435.3 million in 2015. Consequently, the
relation of the per capita indicator to State general fund expenditures
is just 57 percent of what it was in 1986.
    The failure of the per capita indicator to keep pace with changing
economic conditions and the increasing frequency and costs of disasters
has led to criticism of the per capita indicator. Those critiques have
emphasized that the per capita indicator is artificially low. Many have
called for FEMA to find ways to decrease the frequency of disaster
declarations and Federal disaster costs, by increasing the per capita
indicator to transfer costs back to State and local jurisdictions.
These have included recommendations from GAO, reports of the DHS OIG,
and proposed legislation. FEMA is currently evaluating possible
alternatives to the per capita indicator. See, e.g., 82 FR 4064 (Jan.
12, 2017).
    FEMA chose not to use the PA per capita indicator measure and
instead chose to use the fiscal capacity factor as the indicator of a
State's fiscal capability to meet the needs of individuals after an
event. FEMA considers multiple factors and does not believe a set
limit, even based on estimated damages and population, is an
appropriate indicator for IA due to the varying needs and circumstances
of disaster survivors. FEMA did not quantify the impact of this
alternative, but assumes it could have an impact on transfer payments
given that it could potentially change the number of major disaster
declarations that authorize IA.
f. Use of Factor Thresholds
    Some stakeholders indicated they would prefer specific ``hard''
thresholds that indicate whether a State would be eligible to receive a
major disaster declaration authorizing IA. The

stakeholders felt established thresholds give States a clear idea of
what level of damage and need the State must have before requesting
assistance. Further, the stakeholders believed thresholds 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.
    FEMA rejected a threshold indicator because it is inconsistent with
the principles of Section 320 of the Stafford Act which prohibits the
denial of assistance to a geographic area based solely on the use of an
arithmetic formula or a sliding scale based on income or population. 42
U.S.C. 5163. 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. FEMA also decided to
not pursue using thresholds because they are too restrictive for
determining whether disaster survivors need assistance after an event
and are not flexible enough to assess the various scenarios that
demonstrate the State's need for a declaration authorizing IA. FEMA
assumes this alternative could have an impact on transfer payments due
to changes in the number of declarations and could reduce States' costs
if they chose not to pursue a declaration request for IA.
g. Homes in Foreclosure
    Some stakeholders expressed concern that if an area with a high
foreclosure rate is affected by a disaster, then these homes would be a
greater burden to the State during the recovery process. Stakeholders
believed that homes in foreclosure (either abandoned or owned by the
bank) are not taken care of as well as homes that are owner-occupied.
When the home is owned by the bank, there may be little incentive to
quickly make the repairs. When it is abandoned, there is no incentive
to make the repairs and the properties are often abated by the
community through code enforcement, which likely translates to
additional costs and time burden on the community.
    FEMA recognizes that high levels of foreclosure may be associated
with economic difficulties in the affected area and this could
negatively impact a community's ability to recover. However, FEMA's IA
programs do not provide any form of assistance for foreclosed homes;
repair assistance is available only for owner-occupied primary
residences. If a State believes the number of homes in foreclosure will
impact their capability to respond to the disaster, then the State may
articulate this concern in the narrative portion of its declaration
request. FEMA considers all relevant information provided in a State's
request. See 44 CFR 206.48. However, FEMA believes other factors,
including poverty level, pre-disaster unemployment, and per capita
personal income are adequate indicators of economic health. For this
reason, FEMA chose to not include home foreclosure rates as an
evaluation factor.
h. Do Not Include Fiscal Capacity Indicators
    FEMA considered the alternative of not including fiscal capacity
indicators. FEMA chose to include the fiscal capacity indicators for
the reasons set forth above. The Stafford Act is premised upon State
and local governments handling response and recovery to disasters that
are within their capability, with the Federal government only stepping
in with supplemental assistance for events that are beyond local and
then State capability. This necessarily requires an examination of the
capability of the State government. Given that the supplemental
assistance that FEMA provides is overwhelmingly in the form of
financial assistance, it is important to determine whether a given
event is within, or should be within, the State's fiscal capacity. If
FEMA were not to include the fiscal capacity indicators it would be
forced to rely on population as a proxy. In addition, FEMA would
continue to utilize the inadequate and outdated table found at 44 CFR
206.48(b)(6) which divides States into three buckets (small, medium,
and large) based solely on population size instead of a more
individualized look at each State's fiscal resources and capability. In
this alternative, the Federal cost of the final rule is estimated to
decrease by approximately $43 a year, based on FEMA no longer having to
retrieve BEA and Treasury data. The cost to States is estimated to
decrease by approximately $8,935 in year 1 and $1,787 in each
subsequent year for the same reason.

B. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq.,
as amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (Pub. L. 104-121, 110 Stat. 857), FEMA must consider the impact of
this rule on small entities. The term ``small entities'' includes small
businesses; not-for-profit organizations that are independently owned
and operated and are not dominant in their fields; and governmental
jurisdictions with populations of less than 50,000. When the
Administrative Procedure Act requires an agency to publish a notice of
proposed rulemaking under 5 U.S.C. 553, the RFA requires a regulatory
flexibility analysis for both the proposed rule and the final rule.
This requirement does not apply if the head of the agency certifies
that the rule will not, if promulgated, have a significant economic
impact on a substantial number of small entities. 5 U.S.C. 605(b). Such
certification must include a statement providing the factual basis for
such certification.
    This final rule provides States with factors FEMA will consider
when making a recommendation on a major disaster declaration that
authorizes IA. The rule codifies many factors that are currently
considered, but are not adequately captured in 44 CFR 206.48(b). This
rule will not directly impact small businesses, small not-for-profit
organizations, or small governmental jurisdictions. States are not
considered small entities under the RFA because they have populations
of more than 50,000.\62\ Hence, FEMA certifies under 5 U.S.C. 605(b)
that this final rule will not have a significant economic impact on a
substantial number of small entities.
---------------------------------------------------------------------------

    \62\ The District of Columbia, Puerto Rico, the Virgin Islands,
Guam, American Samoa, and the Commonwealth of the Northern Mariana
Islands, which are considered States under 44 CFR 206.2(a)(22), all
have populations greater than 50,000.
---------------------------------------------------------------------------

C. Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 658, 1501-1504,
1531-1536, 1571, pertains to any notice of proposed rulemaking which
implements any rule that includes a Federal mandate that may result in
the expenditure by State, local, and Tribal governments, in the
aggregate, or by the private sector, of $100 million (adjusted annually
for inflation) or more in any one year. If the rulemaking includes a
Federal mandate, the Act requires an agency to prepare an assessment of
the anticipated costs and benefits of the Federal mandate. FEMA has
determined this rule can be excluded from this assessment because the
rule meets the criteria set forth in 2 U.S.C. 1503(4), which states,
``This chapter shall not apply to . . . any provision in a proposed or
final Federal regulation that . . . (4) provides for emergency
assistance or relief at the request of any State, local, or tribal
government or any official of a State, local, or tribal

government.'' Therefore, no actions are deemed necessary under the
provisions of the Unfunded Mandates Reform Act of 1995.

D. National Environmental Policy Act

    Under the National Environmental Policy Act of 1969 (NEPA), as
amended, 42 U.S.C. 42 U.S.C. 4321 et. seq., an agency must prepare an
environmental assessment or environmental impact statement for any
rulemaking that significantly affects the quality of the human
environment. FEMA has determined that this rulemaking does not
significantly affect the quality of the human environment and
consequently has not prepared an environmental assessment or
environmental impact statement.
    Rulemaking is a major Federal action subject to NEPA. Categorical
exclusion A3 included in the list of exclusion categories at Department
of Homeland Security Instruction Manual 023-01-001-01, Revision 01,
Implementation of the National Environmental Policy Act, Appendix A,
issued November 6, 2014, covers the promulgation of rules, issuance of
rulings or interpretations, and the development and publication of
policies, orders, directives, notices, procedures, manuals, and
advisory circulars if they meet certain criteria provided in A3(a-f).
This final rule amends an existing regulation without changing its
environmental effect, which meets Categorical Exclusion A3(d).
    In addition, this final rule revises the criteria that FEMA
considers when recommending an area eligible for IA under a major
disaster declaration. This activity amounts to information and data
gathering and reporting in support of emergency and disaster response
and recovery activities. Therefore, the activity this final rule
applies to meets Categorical Exclusion M11 in Department of Homeland
Security Instruction Manual 023-01-001-01, Revision 01, Implementation
of the National Environmental Policy Act, Appendix A, issued November
6, 2014. Because no other extraordinary circumstances have been
identified, this rule does not require the preparation of either an EA
or an EIS as defined by NEPA. See Department of Homeland Security
Instruction Manual 023-01-001-01, Revision 01, Implementation of the
National Environmental Policy Act, section (V)(B)(2).

E. Paperwork Reduction Act of 1995

    As required by the Paperwork Reduction Act of 1995 (PRA), Public
Law 104-13, 109 Stat. 163, (May 22, 1995) (44 U.S.C. 3501 et seq.),
FEMA may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the collection of
information displays a valid control number.
    In this final rule, FEMA is seeking a revision to the already
existing collection of information, OMB Control Number 1660-0009,
because FEMA has refined its estimate of the paperwork burden
associated with 1660-0009. FEMA submitted the information collection
abstracted below to the Office of Management and Budget for review and
clearance.
Collection of Information
    Title: The Declaration Process: Requests for Preliminary Damage
Assessment (PDA), Requests for Supplemental Federal Disaster
Assistance, Appeals, and Requests for Cost Share Adjustments.
    Type of information collection: Revision of a currently approved
collection.
    OMB Number: 1660-0009.
    Form Titles and Numbers: FEMA Form 010-0-13, Request for
Presidential Disaster Declaration Major Disaster or Emergency; FEMA
Form 009-0-140.
    Abstract: When a disaster occurs in a State, the Governor of the
State or the Acting Governor in his/her absence, may request a major
disaster declaration or an emergency declaration. The Governor should
submit the request to the President through the appropriate Regional
Administrator to ensure prompt acknowledgement and processing. The
information obtained by joint Federal, State, and local preliminary
damage assessments will be analyzed by FEMA regional senior level
staff. The regional summary and the regional analysis and
recommendation will include a discussion of State and local resources
and capabilities, and other assistance available to meet the disaster
related needs. The Administrator of FEMA provides a recommendation to
the President and also provides a copy of the Governor's request. In
the event the information required by law is not contained in the
request, the Governor's request cannot be processed and forwarded to
the White House. In the event the Governor's request for a major
disaster declaration or an emergency declaration is not granted, the
Governor may appeal the decision.
    Affected Public: State, local, or Tribal Government.
    Estimated Number of Respondents: 623.
    Estimated Number of Responses: 356.
    Estimated Total Annual Burden Hours: 11,792.8.
    The previously approved Total Annual Burden Hours was 11,748 hours.
Based on the final rule's minor increase in burden, the new estimated
Total Annual Burden Hours is 11,792.8 hours. This increase of 44.8
hours is attributed to the additional fiscal capacity information FEMA
anticipates States may provide to help evaluate the need for a major
disaster declaration that authorizes IA.
    Table A.12 provides estimates of annualized cost to respondents for
the hour burdens for the collection of information.

                                              Table A.12--Estimated Annualized Burden Hours and Costs \63\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             Number of        Average
                                       Form name/form        Number of     responses per    burden per     Total annual       Average      Total annual
        Type of respondent                 number           respondents     respondent     response  (in    burden  (in     hourly wage     respondent
                                                                               \64\           hours)          hours)         rate \65\         cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
State, Local or Tribal Government.  Request for                      623            .571               9           3,204          $79.22     $253,820.88
                                     Presidential
                                     Disaster
                                     Declaration Major
                                     Disaster or
                                     Emergency/FEMA Form
                                     010-0-13.

State, Local or Tribal Government.  Initial Data                     623            .571          24.126         8,588.8           39.89      342,607.23
                                     Gathering for
                                     Governor's Request/
                                     No Form.
                                                         -----------------------------------------------------------------------------------------------
    Total.........................  ....................             623  ..............  ..............        11,792.8  ..............      596,428.11
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The ``Avg. Hourly Wage Rate'' for each respondent includes a 1.46 multiplier to reflect a fully-loaded wage rate.
Note: Numbers in the table are rounded up due to rounding in ROCIS. Also ``Initial Data Gathering for Governor's Request/No Form'' total burden hours is
  rounded to 8,588.8 to align with Factors Considered When Evaluating a Governor's Request for Individual Assistance for a Major Disaster Final Rule.

    Estimated Cost: $596,428.11.
---------------------------------------------------------------------------

    \63\ Note: Numbers rounded due to rounding in ROCIS.
    \64\ Note: The number of responses per respondent for entering
in Request for Presidential Disaster Declaration Major Disaster or
Emergency/FEMA Form 010-0-13 has been updated to 0.571. FEMA
recalculated this number to more accurately reflect the change in
the final rule. FEMA calculated 0.571 based on the previous
supporting statement's total number of response hours, 3,195,
divided by the number of hours, 9.062, resulting in 356, and then
divided by 623.
    \65\ Note: The ``Avg. Hourly Wage Rate'' for each respondent
includes a 1.46 multiplier to reflect a fully-loaded wage rate.
---------------------------------------------------------------------------

    Estimated Respondents' Operation and Maintenance Costs: FEMA does
not anticipate that there will be any annual costs to respondents'
operations and maintenance costs for technical services.
    Estimated Respondents' Capital and Start-Up Costs: There are no
annual start-up or capital costs.
    Estimated Total Annual Cost to the Federal Government: The cost to
the Federal government is $3,188,919.80.

F. Privacy Act

    Under the Privacy Act of 1974, 5 U.S.C. 552a, an agency must
determine whether implementation of a proposed regulation will result
in a system of records. A ``record'' is any item, collection, or
grouping of information about an individual that is maintained by an
agency, including, but not limited to, his/her education, financial
transactions, medical history, and criminal or employment history and
that contains his/her name, or the identifying number, symbol, or other
identifying particular assigned to the individual, such as a finger or
voice print or a photograph. See 5 U.S.C. 552a(a)(4). A ``system of
records'' is a group of records under the control of an agency from
which information is retrieved by the name of the individual or by some
identifying number, symbol, or other identifying particular assigned to
the individual. An agency cannot disclose any record which is contained
in a system of records except by following specific procedures.
    FEMA completed a Privacy Threshold Analysis for this final rule.
Any information will be collected in existing FEMA Forms 010-0-13 and
009-0-140 and will still only include the Governor's point of contact
and general office phone number as well as other State specific and
disaster specific information of a non-personally[hyphen]identifiable
nature. The information received through the form is neither retrieved
nor retrievable by personally identifiable information (PII). Any
retrieval would be done by utilizing State specific or disaster
specific information of a non[hyphen]identifiable nature. FEMA Form
010-0-13 is currently covered under the DHS/FEMA/PIA-013 Grants
Management PIA. This rulemaking does not impact FEMA's collection of
PII in the disaster declarations process and form and no System of
Records Notice is required at this time.

G. Executive Order 13175, Consultation and Coordination With Indian
Tribal Governments

    Executive Order 13175, ``Consultation and Coordination with Indian
Tribal Governments,'' 65 FR 67249, November 9, 2000, applies to agency
regulations that have Tribal implications, that is, regulations that
have substantial direct effects on one or more Indian tribes, on the
relationship between the Federal Government and Indian Tribes, or on
the distribution of power and responsibilities between the Federal
Government and Indian Tribes.
    FEMA has reviewed this final rule under Executive Order 13175 and
has determined that this rule does not have a substantial direct effect
on one or more Indian tribes, on the relationship between the Federal
Government and Indian Tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian Tribes. The
disaster assistance granted by a major disaster declaration addressed
by this final rule is provided to individuals and families, and would
not have tribal implications.
    Moreover, this rule finalizes revisions to regulations intended to
address a State's request for an IA declaration. Although Section 1110
of SRIA authorizes Indian Tribal governments to request a declaration
directly, SRIA charged FEMA to implement that authority separately by
rulemaking. FEMA is implementing Section 1110 through a separate
process, which involves extensive consultation with Tribes, issuance of
pilot guidance, see 82 FR 3016 (Jan. 10, 2017), and eventually,
regulations.

H. Executive Order 13132, Federalism

    Executive Order 13132, ``Federalism,'' 64 FR 43255, August 10,
1999, sets forth principles and criteria that agencies must adhere to
in formulating and implementing policies that have federalism
implications, that is, regulations that have ``substantial direct
effects on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.'' Federal
agencies must closely examine the statutory authority supporting any
action that would limit the policymaking discretion of the States, and
to the extent practicable, must consult with State and local officials
before implementing any such action.
    As we noted in the proposed rule, FEMA has determined that this
rule does not have a substantial direct effects on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government, and therefore does not have federalism implications as
defined by the Executive

Order. The disaster assistance granted by a major disaster declaration
addressed by this final rule is provided to individuals and families,
and would not have federalism implications. No commenters disagreed
with our determination.

I. Executive Order 11988, Floodplain Management

    Pursuant to Executive Order 11988, as amended by Executive Order
13690, ``each agency must provide leadership and take action to reduce
the risk of flood loss and to minimize the impact of floods on human
safety, health and welfare. In addition, each agency must restore and
preserve the natural and beneficial values served by floodplains in
carrying out its responsibilities for (1) acquiring, managing, and
disposing of Federal lands and facilities; (2) providing Federally
undertaken, financed, or assisted construction and improvements; and
(3) conducting Federal activities and programs affecting land use,
including but not limited to water and related land resources planning,
regulating, and licensing activities. In carrying out these
responsibilities, each agency must evaluate the potential effects of
any actions it may take in a floodplain; ensure that its planning
programs and budget requests reflect consideration of flood hazards and
floodplain management; and prescribe procedures to implement the
policies and requirements of the Executive Order.
    Before promulgating any regulation, an agency must determine
whether the proposed regulations will affect a floodplain(s), and if
so, the agency must consider alternatives to avoid adverse effects and
incompatible development in the floodplain(s). If the head of the
agency finds that the only practicable alternative consistent with the
law and with the policy set forth in Executive Order 11988 is to
promulgate a regulation that affects a floodplain(s), the agency must,
prior to promulgating the regulation, design or modify the regulation
in order to minimize potential harm to or within the floodplain,
consistent with the agency's floodplain management regulations and
prepare and circulate a notice containing an explanation of why the
action is proposed to be located in the floodplain.
    The requirements of Executive Order 11988 apply in the context of
the provision of Federal financial assistance relating to, among other
things, construction and property improvement activities, as well as
conducting Federal programs affecting a floodplain(s). The changes in
this final rule will not have an effect on floodplain management. This
final rule revises the criteria that FEMA considers when recommending
an area eligible for IA under a major disaster declaration. A major
disaster declaration recommendation to the President is an
administrative action for FEMA's IA Program. When FEMA undertakes
specific actions in administering IA that may have effects on
floodplain management (e.g., placement of manufactured housing units on
FEMA-constructed group sites; permanent or semi-permanent housing
construction; Multi-Family Lease and Repair; financial assistance for
privately owned roads and bridges), FEMA follows the procedures set
forth in 44 CFR part 9 to assure compliance with this Executive Order.
The notice that is required by the E.O. is provided separately at the
time FEMA undertakes the specific action.

J. Executive Order 11990, Protection of Wetlands

    Executive Order 11990, ``Protection of Wetlands,'' 42 FR 26961, May
24, 1977, sets forth that each agency must provide leadership and take
action to minimize the destruction, loss or degradation of wetlands,
and to preserve and enhance the natural and beneficial values of
wetlands in carrying out the agency's responsibilities for (1)
acquiring, managing, and disposing of Federal lands and facilities; and
(2) providing Federally undertaken, financed, or assisted construction
and improvements; and (3) conducting Federal activities and programs
affecting land use, including but not limited to water and related land
resources planning, regulating, and licensing activities. Each agency,
to the extent permitted by law, must avoid undertaking or providing
assistance for new construction located in wetlands unless the head of
the agency finds (1) that there is no practicable alternative to such
construction, and (2) that the proposed action includes all practicable
measures to minimize harm to wetlands which may result from such use.
In making this finding the head of the agency may take into account
economic, environmental and other pertinent factors.
    In carrying out the activities described in Executive Order 11990,
each agency must consider factors relevant to a proposal's effect on
the survival and quality of the wetlands. Among these factors are:
Public health, safety, and welfare, including water supply, quality,
recharge and discharge; pollution; flood and storm hazards; and
sediment and erosion; maintenance of natural systems, including
conservation and long term productivity of existing flora and fauna,
species and habitat diversity and stability, hydrologic utility, fish,
wildlife, timber, and food and fiber resources; and other uses of
wetlands in the public interest, including recreational, scientific,
and cultural uses.
    The requirements of Executive Order 11990 apply in the context of
the provision of Federal financial assistance relating to, among other
things, construction and property improvement activities, as well as
conducting Federal programs affecting land use. The changes in this