23874 Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Proposed Rules

when conveyed to VA unless someone

properly in possession by virtue of a

redemption period occupies it or VA

otherwise directs the holder. This

document also withdraws the proposal

to amend the loan guaranty regulations

that was published in the Federal

Register on March 2, 1994 (59 FR 9944).

In the March 2, 1994 document, we

proposed to change the regulations by

requiring that the mortgage holder

provide notice to VA when refusing to

accept partial payment on a loan in

default and to clarify when a veteran is

liable to VA for a loss due to a loan

default. We are reconsidering the issues

raised in both proposed rules in light of

changes that have occurred in the

industry since the proposals were

promulgated. These issues may be the

subject of a future rulemaking

proceeding.

FOR FURTHER INFORMATION CONTACT: Mr.

Richard Fyne, Assistant Director for

Loan Management (261), Loan Guaranty

Service, Veterans Benefits

Administration, Department of Veterans

Affairs, 810 Vermont Avenue, NW.,

Washington, DC 20420, phone (202)

273–7380. (This is not a toll-free

number.)

Approved: February 15, 2001.

Anthony J. Principi,

Secretary of Veterans Affairs.

[FR Doc. 01–11745 Filed 5–9–01; 8:45 am]

BILLING CODE 8320–01–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 62

[Region 2 Docket No. NY46–217b, FRL–

6977–3]

Approval and Promulgation of State

Plans For Designated Facilities; New

York

AGENCY: Environmental Protection

Agency (EPA)

ACTION: Proposed rule.

SUMMARY: EPA is proposing to approve

the New York supplementary submittal

for meeting EPA’s conditional approval

of the New York State Plan for

regulating existing Municipal Solid

Waste Landfills. The supplemental

submittal documents that, except for

two landfills, all are in compliance. A

Title V permit containing a compliance

schedule with all five federally

enforceable increments of progress has

been provided for one landfill and the

other landfill is undergoing an

applicability determination. In the

‘‘Rules and Regulations’’ section of this

Federal Register, EPA is approving the

State’s State Plan submittal, as a direct

final rule without prior proposal

because the Agency views this as a

noncontroversial submittal and

anticipates no adverse comments. A

detailed rationale for the approval is set

forth in the direct final rule. If EPA

receives no adverse comments, EPA will

not take further action on this proposed

rule. If EPA receives adverse comments,

EPA will withdraw the direct final rule

and it will not take effect. EPA will

address all public comments in a

subsequent final rule based on this

proposed rule. The EPA will not

institute a second comment period on

this action. Any parties interested in

commenting on this action should do so

at this time.

DATES: Written comments must be

received on or before June 11, 2001.

ADDRESSES: All comments should be

addressed to: Raymond Werner, Chief,

Air Programs Branch, Environmental

Protection Agency, Region 2 Office, 290

Broadway, New York, New York 10007–

1866.

Copies of the State submittal are

available at the following addresses for

inspection during normal business

hours:

Environmental Protection Agency,

Region 2 Office, 290 Broadway, 25th

Floor, New York, New York 10007–

1866.

New York State Department of

Environmental Conservation, Division

of Air Resources, 50 Wolf Road,

Albany, New York 12233.

FOR FURTHER INFORMATION CONTACT:

Craig Flamm, Air Programs Branch,

Environmental Protection Agency, 290

Broadway, 25th Floor, New York, New

York 10278, (212) 637–4021.

SUPPLEMENTARY INFORMATION: For

additional information see the direct

final rule which is located in the Rules

Section of this Federal Register.

Dated: April 19, 2001.

William J. Muszynski,

Acting Regional Administrator Region 2.

[FR Doc. 01–11830 Filed 5–9–01; 8:45 am]

BILLING CODE 6560–50–P

FEDERAL EMERGENCY

MANAGEMENT AGENCY

44 CFR Part 62

RIN 3067–AD23

National Flood Insurance Program;

Assistance to Private Sector Property

Insurers

AGENCY: Federal Emergency

Management Agency (FEMA).

ACTION: Proposed rule.

SUMMARY: Based on recent cost

information, we (FEMA) propose to

adjust the expense allowance under the

Financial Assistance/Subsidy

Arrangement between the Federal

Insurance Administrator and the private

sector insurers that sell and service

flood insurance.

DATES: Comments on this proposed rule

should be received on or before June 11,

2001.

ADDRESSES: Please submit any written

comments to the Rules Docket Clerk,

Office of the General Counsel, Federal

Emergency Management Agency, 500 C

Street, SW., room 840, Washington, DC

20472, (facsimile) 202–646–4536, or

(email) rules@fema.gov.

FOR FURTHER INFORMATION CONTACT:

Edward L. Connor, Federal Emergency

Management Agency, Federal Insurance

Administration, 500 C Street SW.,

Washington, DC 20472, 202–646–3443,

(facsimile) 202–646–3445, (email)

Edward.Connor@fema.gov.

SUPPLEMENTARY INFORMATION: Under the

Financial Assistance/Subsidy

Arrangement between the Federal

Insurance Administrator and the private

sector insurers that sell and service

flood insurance under the Write Your

Own (WYO) program, participating

insurers are entitled to an expense

allowance—a portion of the flood

premiums from the policies that the

insurers sell. The expense allowance is

based on data for the property/casualty

industry published, as of March 15 of

the prior Arrangement year, in Part III

of the Insurance Expense Exhibit in

A.M. Best Company’s Aggregates and

Averages for five property coverages.

Based on our analysis of recent

expense information from the

companies, we conclude that we should

increase the current expense allowance

under the Arrangement. We are

therefore proposing a change in the

expense allowance to reflect this new

cost information.

National Environmental Policy Act

(NEPA)

NEPA imposes requirements for

considering the environmental impacts

of agency decisions. It requires that an

agency prepare an Environmental

Impact Statement (EIS) for ‘‘major

federal actions significantly affecting the

quality of the human environment.’’ If

an action may or may not have a

significant impact, the agency must

prepare an environmental assessment

(EA). If, as a result of this study, the

agency makes a Finding of No

Significant Impact (FONSI), no further

Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Proposed Rules 23875

action is necessary. If it will have a

significant effect, then the agency uses

the EA to develop an EIS.

Categorical Exclusions. Agencies can

categorically identify actions (for

example, repair of a building damaged

by a disaster) that do not normally have

a significant impact on the environment.

The purpose of this proposed rule is to

adjust the expense allowance under the

Financial Assistance/Subsidy

Arrangement between the Federal

Insurance Administrator and the private

sector insurers that sell and service

flood insurance.

Accordingly, we have determined that

this rule is excluded from the

preparation of an environmental

assessment or environmental impact

statement under 44 CFR 10.8(d)(2)(ii),

where the rule is related to actions that

qualify for categorical exclusion under

44 CFR 10.8(d)(2)(i), which addresses

the preparation, revision, and adoption

of regulations, directives, and other

guidance documents related to actions

that qualify for categorical exclusions.

We have not prepared an environmental

assessment or environmental impact

statement as defined by NEPA.

Executive Order 12866, Regulatory

Planning and Review

We have prepared and reviewed this

proposed rule under the provisions of

E.O. 12866, Regulatory Planning and

Review. Under Executive Order 12866,

58 FR 51735, October 4, 1993, a

significant regulatory action is subject to

OMB review and the requirements of

the Executive Order. The Executive

Order defines ‘‘significant regulatory

action’’ as one that is likely to result in

a rule that may:

(1) Have an annual effect on the

economy of $100 million or more or

adversely affect in a material way the

economy, a sector of the economy,

productivity, competition, jobs, the

environment, public health or safety, or

State, local, or tribal governments or

communities;

(2) Create a serious inconsistency or

otherwise interfere with an action taken

or planned by another agency;

(3) Materially alter the budgetary

impact of entitlements, grants, user fees,

or loan programs or the rights and

obligations of recipients thereof; or

(4) Raise novel legal or policy issues

arising out of legal mandates, the

President’s priorities, or the principles

set forth in the Executive Order.

For the reasons that follow we have

concluded that the proposed rule is

neither an economically significant nor

a significant regulatory action under the

Executive Order. The rule would adjust

the expense allowance under the

Financial Assistance/Subsidy

Arrangement between the Federal

Insurance Administrator and the private

sector insurers that sell and service

flood insurance. The adjustment would

increase by approximately $14 million

the expense allowance paid to the WYO

private sector insurers. It would not

have an annual effect on the economy

of $100 million or more or adversely

affect in a material way the economy,

the insurance sector, competition, or

other sectors of the economy. It would

create no serious inconsistency or

otherwise interfere with an action taken

or planned by another agency. It would

not materially alter the budgetary

impact of entitlements, grants, user fees,

or loan programs or the rights and

obligations of recipients thereof. Nor

does it raise novel legal or policy issues

arising out of legal mandates, the

President’s priorities, or the principles

set forth in the Executive Order.

The Office of Management and Budget

has not reviewed this proposed rule

under the principles of Executive Order

12866.

Paperwork Reduction Act

This rule does not contain a collection

of information and is therefore not

subject to the provisions of the

Paperwork Reduction Act.

Regulatory Flexibility Act

Under the Regulatory Flexibility Act

agencies must consider the impact of

their rulemakings on ‘‘small entities’’

(small businesses, small organizations

and local governments). When 5 U.S.C.

553 requires an agency to publish a

notice of proposed rulemaking, the Act

requires a regulatory flexibility analysis

for both the proposed rule and the final

rule if the rulemaking could ‘‘have a

significant economic impact on a

substantial number of small entities.’’

The Act also provides that if a

regulatory flexibility analysis is not

required, the agency must certify in the

rulemaking document that the

rulemaking will not ‘‘have a significant

economic impact on a substantial

number of small entities.’’

This proposed rule revises the NFIP

regulations to adjust the expense

allowance under the Financial

Assistance/Subsidy Arrangement

between the Federal Insurance

Administrator and the private sector

insurers that sell and service flood

insurance. Therefore, I certify that a

regulatory flexibility analysis is not

required for this rule because it would

not have a significant economic impact

on a substantial number of small

entities.

Executive Order 13132, Federalism

Executive Order 13132 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, 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.

We have reviewed this proposed rule

under E.O.13132 and have determined

that the rule does not have federalism

implications as defined by the Executive

Order. The rule would adjust the

expense allowance under the Financial

Assistance/Subsidy Arrangement

between the Federal Insurance

Administrator and the private sector

insurers that sell and service flood

insurance. The rule in no way that we

foresee affects the distribution of power

and responsibilities among the various

levels of government or limits the

policymaking discretion of the States.

List of Subjects in 44 CFR Part 62

Flood insurance.

Accordingly, amend 44 CFR Part 62 as

follows:

PART 62—INSURANCE COVERAGE

AND RATES

1. The authority citation for part 62

continues to read as follows:

Authority: 42 U.S.C. 4001 et seq.;

Reorganization Plan No. 3 of 1978, 43 FR

41943, 3 CFR, 1978 Comp., p. 329; E.O.

12127 of Mar. 31, 1979, 44 FR 19367, 3 CFR,

1979 Comp., p. 376.

2. Revise Article III.B of appendix A

to part 62 to read as follows:

Appendix A to Part 62—Federal

Emergency Management Agency,

Federal Insurance Administration,

Financial Assistance/Subsidy

Arrangement

* * * * *

Article III—Loss Costs, Expenses, Expense

Reimbursement, and Premium Refunds

* * * * *

B. The Company may withhold as

operating and administrative expenses, other

than agents’ or brokers’ commissions, an

amount from the Company’s written

premium on the policies covered by this

Arrangement in reimbursement of all of the

Company’s marketing, operating, and

administrative expenses, except for allocated

23876 Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Proposed Rules

and unallocated loss adjustment expenses

described in C. of this article. This amount

will equal the sum of the average of industry

expense ratios for ‘‘Other Acq.’’, ‘‘Gen. Exp.’’,

and ‘‘Taxes’’ calculated by aggregating

premiums and expense amounts for each of

five property coverages using direct premium

and expense information to derive weighted

average expense ratios. For this purpose, we

(the Federal Insurance Administration) will

use data for the property/casualty industry

published, as of March 15 of the prior

Arrangement year, in Part III of the Insurance

Expense Exhibit in A.M. Best Company’s

Aggregates and Averages for the following

five property coverages: Fire, Allied Lines,

Farmowners Multiple Peril, Homeowners

Multiple Peril, and Commercial Multiple

Peril (non-liability portion). In addition, this

amount will be increased by one percentage

point to reimburse expenses beyond regular

property/casualty expenses.

The Company may retain fifteen percent

(15%) of the Company’s written premium on

the policies covered by this Arrangement as

the commission allowance to meet

commissions or salaries of their insurance

agents, brokers, or other entities producing

qualified flood insurance applications and

other related expenses.

The amount of expense allowance retained

by the Company may increase a maximum of

two percentage points, depending on the

extent to which the Company meets the

marketing goals for the Arrangement year

contained in marketing guidelines

established pursuant to Article II.G. We will

pay the company the amount of any increase

after the end of the Arrangement year.

The Company, with the consent of the

Administrator as to terms and costs, may use

the services of a national rating organization,

licensed under state law, to help us

undertake and carry out such studies and

investigations on a community or individual

risk basis, and to determine equitable and

accurate estimates of flood insurance risk

premium rates as authorized under the

National Flood Insurance Act of 1968, as

amended. We will reimburse the Company

for the charges or fees for such services under

the provisions of the WYO Accounting

Procedures Manual.

* * * * *

(Catalog of Federal Domestic Assistance No.

83.100, ‘‘Flood Insurance’’)

Dated: May 1, 2001.

Howard Leikin,

Acting Administrator, Federal Insurance

Administration.

[FR Doc. 01–11365 Filed 5–9–01; 8:45 am]

BILLING CODE 6718–03–P