36610 Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Rules and Regulations 

adopted by voluntary consensus 

standards bodies. 

This rule does not use technical 

standards. Therefore, we did not 

consider the use of voluntary consensus 

standards. 

Environment 

We have analyzed this rule under 

Department of Homeland Security 

Management Directive 023–01 and 

Commandant Instruction M16475.lD, 

which guide the Coast Guard in 

complying with the National 

Environmental Policy Act of 1969 

(NEPA) (42 U.S.C. 4321–4370f), and 

have concluded this action is one of a 

category of actions which do not 

individually or cumulatively have a 

significant effect on the human 

environment. This rule is categorically 

excluded, under figure 2–1, paragraph 

(34)(g), of the Instruction because this 

rule establishes a safety zone. 

An environmental analysis checklist 

and a categorical exclusion 

determination are available in the 

docket where indicated under 

ADDRESSES. 

List of Subjects in 33 CFR Part 165 

Harbors, Marine safety, Navigation 

(water), Reporting and recordkeeping 

requirements, Security measures, 

Waterways. 

■ For the reasons discussed in the 

preamble, the Coast Guard amends 33 

CFR part 165 as follows: 

PART 165—REGULATED NAVIGATION 

AREAS AND LIMITED ACCESS AREAS 

■ 1. The authority citation for part 165 

continues to read as follows: 

Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. 

Chapter 701, 3306, 3703; 50 U.S.C. 191, 195; 

33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5; 

Public Law 107–295; 116 Stat. 2064; 

Department of Homeland Security Delegation 

No. 0170.1. 

■ 2. Add a new temporary section 

§ 165.T11–224 to read as follows: 

§ 165.T11–224 Safety Zone; Naval Training 

August and September, San Clemente 

Island, CA. 

(a) Location. The following area is a 

safety zone: All navigable waters of the 

Pacific Ocean, from surface to bottom, at 

the north end of San Clemente Island 

bounded by lines connecting the 

following points: Beginning at 33°01.09′ 

N, 118°36.34′ W; thence to 32°59.95′ N, 

118°39.77′ W; thence running parallel to 

the shoreline at a distance of 

approximately 3 NM to 33°02.81′ N, 

118°30.65′ W; thence to 33°01.29′ N, 

118°33.88′ W; thence along the 

shoreline returning to 33°01.09′ N, 

118°36.34′ W. These coordinates are 

based on NAD 83. 

(b) Effective Period. This section is 

effective from August 1, 2009 through 

September 30, 2009 during naval 

training exercises. If training is 

concluded prior to the scheduled 

termination time, the COTP will cease 

enforcement of this safety zone and will 

announce that fact via Broadcast Notice 

to Mariners. 

(c) Definitions. The following 

definitions apply to this section: 

Designated representative, means any 

Commissioned, Warrant, or Petty 

Officers of the Coast Guard, Coast Guard 

Auxiliary, or local, state, and federal 

law enforcement vessels who have been 

authorized to act on the behalf of the 

COTP; non-authorized personnel and 

vessels, means any civilian boats, 

fishermen, divers, and swimmers. 

(d) Regulations. (1) Entry into, transit 

through or anchoring within this safety 

zone is prohibited unless authorized by 

the COTP San Diego or his designated 

representative. 

(2) Non-authorized personnel and 

vessels requesting permission to transit 

through the safety zone may request 

authorization to do so from the COTP 

San Diego or his designated 

representative. They may be contacted 

on VHF–FM Channel 16, or at telephone 

number (619) 278–7033. 

(3) Naval units involved in the 

exercise are allowed in confines of the 

established safety zone. 

(4) All persons and vessels shall 

comply with the instructions of the 

Coast Guard COTP or his designated 

representative. 

(5) Upon being hailed by U.S. Coast 

Guard or other official personnel by 

siren, radio, flashing light, or other 

means, the operator of a vessel shall 

proceed as directed. 

(6) The Coast Guard may be assisted 

by other federal, state, or local agencies 

including the U.S. Navy. 

Dated: June 15, 2009. 

T.H. Farris, 

Captain, U.S. Coast Guard, Captain of the 

Port San Diego. 

[FR Doc. E9–17746 Filed 7–23–09; 8:45 am] 

BILLING CODE 4910–15–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 3 

RIN 2900–AK95 

Recoupment of Severance Pay From 

VA Compensation; Correction 

AGENCY: Department of Veterans Affairs. 

ACTION: Correcting Amendment. 

SUMMARY: This document contains a 

correction to the regulation of the 

Department of Veterans Affairs (VA) 

that governs recoupment of lump-sum 

readjustment pay from disability 

compensation. This correction is 

required in order to amend an authority 

citation in the regulation. No 

substantive change to the content of the 

regulation is being made by this 

correcting amendment. 

DATES: Effective: July 24, 2009. 

FOR FURTHER INFORMATION CONTACT: 

James E. Figliozzi, Office of Regulation 

Policy and Management (02REG), 

Department of Veterans Affairs, 810 

Vermont Ave., NW., Washington, DC 

20420, (202) 461–4902. 

SUPPLEMENTARY INFORMATION: VA 

published an amendment to a final rule 

in the Federal Register on September 

27, 2002 (See 67 FR 60868), that, among 

other things, added 10 U.S.C. 1174(h)(2) 

and 10 U.S.C. 1212(c) as authority 

citations for 38 CFR 3.700(a)(2)(iii). The 

citation to 10 U.S.C. 1212(c) is incorrect, 

because that statute governs the 

recoupment of disability severance pay. 

A subsequent amendment to the final 

rule on June 5, 2009 (See 74 FR 26957) 

retained this incorrect authority 

citation. This document corrects that 

error. Because the citation to 10 U.S.C. 

1174(h)(2) is correct, it remains 

unchanged. 

List of Subjects in 38 CFR Part 3 

Administrative practice and 

procedure, Claims, Disability benefits, 

Health care, Pensions, Veterans, 

Vietnam. 

■ Accordingly, 38 CFR part 3 is 

corrected by making the following 

correcting amendment: 

PART 3—ADJUDICATION 

■ 1. The authority citation for part 3, 

subpart A continues to read as follows: 

Authority: 38 U.S.C. 501(a), unless 

otherwise noted. 

■ 2. In § 3.700, revise the authority 

citation after paragraph (a)(2)(iii) to read 

as follows: 

§ 3.700 General. 

* * * * * 

(a) * * * 

(2) * * * 

(iii) * * * 


rmajette on DSK29S0YB1PROD with RULES
Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Rules and Regulations 36611 

(Authority: 10 U.S.C. 1174(h)(2)) 

* * * * * 

William F. Russo, 

Director of Regulations Management. 

[FR Doc. E9–17308 Filed 7–23–09; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF HOMELAND 

SECURITY 

Federal Emergency Management 

Agency 

44 CFR Part 62 

[Docket ID FEMA–2008–0001] 

RIN 1660–AA58 

National Flood Insurance Program 

(NFIP); Assistance to Private Sector 

Property Insurers; Write-Your-Own 

Arrangement 

AGENCY: Federal Emergency 

Management Agency, DHS. 

ACTION: Final rule. 

SUMMARY: This rule adopts as final, 

without change, an interim rule 

published on April 3, 2008. The interim 

rule amended portions of the Federal 

Emergency Management Agency, 

Federal Insurance Administration, 

Financial Assistance/Subsidy 

Arrangement between Write-Your-Own 

Companies and FEMA. The added 

language assisted WYO Companies by 

recognizing each party’s duties under 

the Arrangement and amended the way 

FEMA communicates changes to the 

Unallocated Loss Adjustment Expenses 

compensation rate to WYO Companies. 

DATES: This rule is effective August 24, 

2009. 

FOR FURTHER INFORMATION CONTACT: 

Edward L. Connor, Acting Federal 

Insurance Administrator, Federal 

Emergency Management Agency, 500 C 

Street, SW., Washington, DC 20472, 

(202) 646–3429 (Phone), (202) 646–3445 

(facsimile), or Edward.Connor@dhs.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Under the authority of sections 1304 

and 1345 of the National Flood 

Insurance Act of 1968, Public Law 90– 

448, 82 Stat. 476, as amended (42 U.S.C. 

4011, 4081), the Federal Emergency 

Management Agency (FEMA) provides 

insurance protection against flood 

damage to homeowners, businesses, and 

others by means of the National Flood 

Insurance Program (NFIP). The sale of 

flood insurance is largely implemented 

by private insurance companies that 

participate in the NFIP Write-Your-Own 

(WYO) program. Through the WYO 

program, insurance companies enter 

into agreements with FEMA to sell and 

service flood insurance policies and 

adjust claims after flood losses. 

Under the WYO program, 88 private 

sector property insurers issue flood 

insurance policies and adjust flood 

insurance claims under their own 

names based on the Financial 

Assistance/Subsidy Arrangement 

(Arrangement). The Arrangement is 

published at 44 CFR part 62, Appendix 

A and defines the duties and 

responsibilities of insurers that sell, 

service, and market insurance under the 

WYO program. The Arrangement also 

identifies the responsibilities of the 

Government to provide financial and 

technical assistance to these insurers. 

The Arrangement is renewed yearly 

through written agreement between the 

WYO Companies and FEMA. 

FEMA published an interim final rule 

on April 3, 2008, (73 FR 18182) in 

which it made three changes to the 

Arrangement. These changes either 

clarified existing practices or clarified 

how FEMA communicates certain 

information to WYO Companies. 

First, Article II, section G.3., was 

added to require the WYO Companies to 

notify their agents of the requirement to 

comply with State regulations regarding 

flood insurance agent education, notify 

them of flood insurance training 

opportunities needed to meet the 

minimum NFIP training requirements 

called for in section 207 of the BunningBereuter-Blumenauer Flood Insurance 

Reform Act of 2004, Public Law 108– 

264, 118 Stat. 727 (42 U.S.C. 4011 note), 

and assist FEMA in periodic assessment 

of agent training needs. Although WYO 

Companies were already undertaking 

these efforts, they were added to the 

Arrangement to formalize the 

commitment. 

Second, FEMA revised Article VII, 

section A. to provide additional 

clarification that there is no requirement 

that WYO Companies use their own 

funds to pay NFIP claims when there 

are no funds available in the National 

Flood Insurance Fund (NFIF) to be 

drawn down through the company letter 

of credit. In such circumstances, the 

Federal Insurance Administrator would 

suspend the NFIP’s payment of claims 

until funds are again available in the 

Treasury, and the WYO Companies 

would not be required to pay claims 

from their own funds in the event of 

such a suspension. This change was 

consistent with pre-existing FEMA 

policy. 

Finally, FEMA revised Article III, 

section C.1. of the Arrangement which 

deals with the Unallocated Loss 

Adjustment Expense (ULAE) for which 

WYO Companies receive reimbursement 

under the Arrangement. ULAE is 

intended to cover those claim handling 

expenses that are not associated with 

specific claims, such as maintaining the 

home office claims staff and establishing 

and running on-site claims field offices. 

Before the interim final rule, the ULAE 

rate was an expense reimbursement of 

3.3 percent of the incurred loss (except 

that it does not include ‘‘incurred but 

not reported’’). The effect of the interim 

final rule was to remove the ULAE 

compensation percentage from the 

Arrangement. Instead, the percentage is 

now communicated by FEMA to the 

WYO Companies through a formula that 

is not written into the Arrangement. For 

fiscal year 2009, the formula was sent to 

each WYO Company as part of their 

offer to renew their Financial 

Assistance/Subsidy Arrangement. 

Although the interim final rule was 

focused on the manner in which the 

ULAE formula is communicated to the 

WYO Companies, and not the actual 

ULAE rate itself, FEMA sought data to 

use in its efforts to revise the formula, 

and suggestions for ways to tailor the 

formula to ensure that it would 

accurately reimburse WYO Companies 

for their actual loss. WYO Companies 

were encouraged to submit actual ULAE 

data during the comment period of the 

interim final rule to assist FEMA in 

continuing to refine the formula. 

II. Discussion of Public Comments 

FEMA received no comments from 

the public regarding the interim final 

rule. All previously published 

rulemaking documents, including the 

interim final rule which contains an indepth explanation for the changes made, 

and supporting data are available in the 

public docket for this rulemaking. The 

public docket for this rulemaking is 

available online by conducting a search 

for Docket ID FEMA–2008–0001, at the 

Federal e-Rulemaking Portal at http:// 

www.regulations.gov. 

III. Regulatory Requirements 

Congressional Review of Agency 

Rulemaking 

FEMA has sent this final rule to the 

Congress and to the Government 

Accountability Office under the 

Congressional Review of Agency 

Rulemaking Act, 5 U.S.C. 801–808. As 

discussed in depth below in the 

Executive Order 12866 analysis, this 

rule is not a ‘‘major rule’’ within the 

meaning of that Act and will not result 

in an annual effect on the economy of 

$100,000,000 or more. Moreover, it will 

not result in a major increase in costs or 


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