Document ID: FEMA-2015-0012-0002
Agency: fema
Document Type: Rule
Title: Adoption of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; States and Tribal MAdoption of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; States and Tribal Mitigation Planning Regulations Change
Posted Date: 2015-10-02T04:00Z

[Federal Register Volume 80, Number 191 (Friday, October 2, 2015)]
[Rules and Regulations]
[Pages 59549-59551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-24584]

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 Rules and Regulations
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  Federal Register / Vol. 80, No. 191 / Friday, October 2, 2015 / Rules 
and Regulations  

[[Page 59549]]

DEPARTMENT OF HOMELAND SECURITY

2 CFR Part 3002

Federal Emergency Management Agency

44 CFR Parts 13, 78, 79, 152, 201, 204, 206, 207, 208, 304, 360, 
and 361

[Docket ID: FEMA-2015-0012]
RIN 1601-AA71

Adoption of Uniform Administrative Requirements, Cost Principles, 
and Audit Requirements for Federal Awards; States and Tribal Mitigation 
Planning Regulations Change

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Final rule.

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

SUMMARY: On December 19, 2014, all Federal award-making agencies, 
including the Department of Homeland Security (DHS) and its component, 
the Federal Emergency Management Agency (FEMA), published a joint 
interim final rule implementing the Office of Management and Budget 
(OMB)'s Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards. DHS and FEMA now adopt, with one 
change, the interim final rule as final. The change restores language 
in the FEMA State and Tribal mitigation planning regulations that was 
inadvertently removed by the interim final rule.

DATES: Effective Date: November 2, 2015.

FOR FURTHER INFORMATION CONTACT: Andrea Brandon, Director, Financial 
Assistance Policy and Oversight (FAPO), Office of the Chief Financial 
Officer (OCIO), DHS, at (202) 447-0675 or Andrea.Brandon@hq.dhs.gov. 
Paul Huang, Acting Division Director, Risk Analysis Division, Federal 
Insurance and Mitigation Administration, DHS/FEMA, at (202) 646-3252 or 
Paul.Huang@fema.dhs.gov.

SUPPLEMENTARY INFORMATION:

I. Background

    On November 23, 2009, the President issued Executive Order 13520 
(``Reducing Improper Payments and Eliminating Waste in Federal 
Programs''). On February 28, 2011, the President issued a Presidential 
Memorandum (``Administrative Flexibility, Lower Costs, and Better 
Results for State, Local, and Tribal Governments''). These documents 
directed OMB to work with Executive Branch agencies to potentially 
establish reforms on Federal grant policies.
    In response, on October 27, 2011, OMB established the Council on 
Financial Assistance Reform, an interagency group of Executive Branch 
officials tasked with creating an accountable structure to coordinate 
financial assistance, streamline Federal grant-making requirements, 
ease administrative burdens, and strengthen Federal fund oversight to 
reduce risks of waste, fraud, and abuse.
    On February 28, 2012, OMB published an Advanced Notice of Proposed 
Guidance. See 77 FR 11778. On February 1, 2013, OMB published a Notice 
of Proposed Guidance. See 78 FR 7282. Both documents solicited public 
comment on ideas for reforming the requirements that govern the 
management of Federal financial assistance awards. On December 26, 
2013, OMB published the Uniform Guidance, which added Part 200 (``OMB 
Guidance'') to Title 2 (``Grants and Agreements'') of the Code of 
Federal Regulations. See 79 FR 75871. The Uniform Guidance included:
     The consolidation of eight previously-issued OMB Circulars 
on grants and awards;
     A uniform set of administrative requirements for grant 
recipients;
     A focus on grantee performance over compliance for 
accountability;
     An emphasis on efficient uses of information technology 
and shared services;
     A uniform set of cost principles that treats costs 
transparently and consistently;
     A limitation on allowable costs in order to make best uses 
of Federal resources;
     The standardization of business processes using consistent 
data element definitions;
     An emphasis on oversight by reviewing risks prior to 
awarding grants; and
     A uniform set of audit requirements that prioritizes 
identifying the risks of fraud, waste, and abuse.
    The Uniform Guidance required Federal agencies to implement the 
policies and procedures applicable to Federal awards by promulgating a 
regulation to be effective by December 26, 2014. See 2 CFR 200.110.
    On December 19, 2014, all Federal award-making agencies promulgated 
a joint interim final rule implementing the Uniform Administrative 
Requirements, Cost Principles, and Audit Requirements for Federal 
Awards. See 79 FR 75871. In the interim final rule, DHS adopted OMB's 
Guidance as DHS's own via 2 CFR part 3002, and FEMA removed 44 CFR part 
13 (FEMA's grant administration regulations). Also, throughout Title 
44, FEMA replaced all references to Part 13 with corresponding 
references to 2 CFR parts 200 and 3002, as applicable.
    During the joint interim final rule's comment period, OMB received 
61 comments from individuals and organizations. No comments OMB 
received referenced DHS or FEMA. Thus, DHS and FEMA are adopting the 
interim final rule as final, with one change.

II. Change to December 19, 2014 Interim Final Rule

    FEMA's mitigation planning regulations are located at 44 CFR part 
201, and set forth instructions on the policies and procedures for 
State, Tribal, and local hazard mitigation planning. Hazard mitigation 
is any sustained action taken to reduce or eliminate long-term risk to 
people and property from natural hazards and their effects. The purpose 
of hazard mitigation planning is to identify policies and actions that 
can be implemented over the long-term to reduce risk and future losses. 
State, Indian Tribal, and local governments are required to develop a 
hazard mitigation plan as one of the conditions for establishing 
eligibility for certain types of Federal non-emergency disaster 
assistance and FEMA mitigation grants.
    The December 19, 2014 joint interim final rule contained an 
inadvertent error

[[Page 59550]]

to FEMA's Standard State Mitigation Planning regulations at 44 CFR 
201.4(c)(7) and to FEMA's Tribal Mitigation Planning regulations at 44 
CFR 201.7(c)(6). Prior to the December 19, 2014 joint interim final 
rule, these sections read as published in Title 44 of the Code of 
Federal Regulations, revised as of October 1, 2014.
    In the December 19, 2014 joint interim final rule, FEMA revised the 
first sentences of 44 CFR 201.4(c)(7) and 44 CFR 201.7(c)(6) with a 
general citation to 2 CFR parts 200 and 3002. However, FEMA 
unintentionally removed the second sentence of these sections and thus 
inadvertently removed a procedure by which States and Indian Tribal 
governments amend their mitigation plans when necessary to reflect 
changes in State, Indian Tribal, or Federal laws or regulations. In 
this final rule, FEMA is reinserting this provision.
    While FEMA previously referenced 44 CFR 13.11(d) in both 44 CFR 
201.4(c)(7) and in 44 CFR 201.7(c)(6), FEMA, as noted above, removed 44 
CFR part 13 and replaced all references to Part 13 with corresponding 
references to 2 CFR parts 200 and 3002, as applicable. There are no 
corresponding pinpoint cites in 2 CFR part 200 or Part 3002 that 
replace the requirements found at 44 CFR 13.11(d). Thus, FEMA cannot 
carry this reference over to the revised regulations. FEMA regulations 
have included the procedure for States and Indian Tribal governments 
since 2002 and 2007, respectively, to amend their plans to reflect 
changes in State, Indian Tribal, or Federal laws, statutes and 
regulations, as applicable. As FEMA is simply reinserting an 
inadvertently removed and longstanding provision, this change does not 
create new program requirements. FEMA also describes these provisions 
in various guidance materials and is revising the references as 
applicable.\1\
---------------------------------------------------------------------------

    \1\ State Multi-Hazard Planning Guidance, effective through 
March 5, 2016, https://www.fema.gov/media-library/assets/documents/103285; State Mitigation Plan Review Guide, effective on March 6, 
2016, https://www.fema.gov/media-library/assets/documents/101659; 
Tribal Multi-Hazard Planning Guidance, https://www.fema.gov/media-library/assets/documents/18355.
---------------------------------------------------------------------------

III. Regulatory Analyses

A. Executive Order 12866 Determination

    Pursuant to Executive Order 12866, as amended, OMB's Office of 
Information and Regulatory Affairs (OIRA) has designated this final 
rule to be not significant.

B. Administrative Procedure Act

    The Administrative Procedure Act (APA) provides that an agency may 
dispense with notice and comment rulemaking procedures when it 
promulgates an interpretive rule, a general statement of policy, or a 
rule of agency organization, procedure, or practice. See 5 U.S.C. 
553(b)(A). DHS is issuing this change to reinstate FEMA procedures 
inadvertently removed in the interim final rule, related to ensuring 
mitigation plan compliance with applicable laws and regulations. Thus, 
DHS finds that this part of the final rule relates to agency procedures 
and is exempt from notice and comment.
    In addition, the APA provides that an agency may dispense with 
notice and comment rulemaking procedures when an agency, for good 
cause, finds those procedures are impracticable, unnecessary, or 
contrary to the public interest. See 5 U.S.C. 553(b)(B). DHS is 
reinserting two provisions concerning mitigation plan compliance with 
applicable laws and regulations, a requirement that was already present 
in 44 CFR 201.4(c)(7) and 44 CFR 201.7(c)(6). Thus, DHS finds that 
notice and comment is unnecessary and that this part of the final rule 
is exempt from notice and comment.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires an agency that is 
issuing a final rule to provide a final regulatory flexibility analysis 
or to certify that the rule will not have a significant economic impact 
on a substantial number of small entities. This final rule imposes no 
cost as the common interim rule implemented OMB final guidance issued 
on December 26, 2013, and did not have a significant economic impact 
beyond the impact of the December 2013 guidance.

D. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995, Public Law 104-4, 109 
Stat. 48 (Mar. 22, 1995) (2 U.S.C. 1501 et seq.), requires Federal 
agencies to assess the effects of their discretionary regulatory 
actions that may result in the expenditure by a State, local, or Tribal 
government, in the aggregate, or by the private sector of $100,000,000 
or more in any one year. As the final rule would not have an impact 
greater than $100,000,000 or more in any one year, it is not an 
unfunded Federal mandate.

E. Paperwork Reduction Act (PRA) of 1995

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Ch. 3506; 5 CFR Appendix A.1) (PRA), DHS and FEMA reviewed this final 
rule and have determined that there are no new collections of 
information contained therein.

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

    Executive Order 13175, ``Consultation and Coordination With Indian 
Tribal Governments,'' (65 FR 67249, Nov. 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. Under this Executive Order, to the extent 
practicable and permitted by law, no agency shall promulgate any 
regulation that has Tribal implications, that imposes substantial 
direct compliance costs on Indian Tribal governments, and that is not 
required by statute, unless funds necessary to pay the direct costs 
incurred by the Indian Tribal government or the Tribe in complying with 
the regulation are provided by the Federal Government, or the agency 
consults with Tribal officials. DHS and FEMA have determined that this 
final rule does not have any Tribal implications.

G. Executive Order 13132 Determination

    DHS and FEMA have determined that this final rule does not have any 
federalism implications, as required by Executive Order 13132.

List of Subjects

2 CFR Part 3002

    Accounting, Administrative practice and procedure, Adult education, 
Aged, Agriculture, American Samoa, Bilingual education, Blind, Business 
and industry, Civil rights, Colleges and universities, Communications, 
Community development, Community facilities, Copyright, Credit, 
Cultural exchange programs, Educational facilities, Educational 
research, Education, Education of disadvantaged, Education of 
individuals with disabilities, Educational study programs, Electric 
power, Electric power rates, Electric utilities, Elementary and 
secondary education, Energy conservation, Equal educational 
opportunity, Federally affected areas, Government contracts, Grant 
programs, Grant programs-agriculture, Grant programs-business and 
industry, Grant programs-communications, Grant

[[Page 59551]]

programs-education, Grant programs-energy, Grant programs-health, Grant 
programs-housing and community development, Grant programs-social 
programs, Grant administration, Guam, Home improvement, Homeless, 
Hospitals, Housing, Human research subjects, Indians, Indians-
education, Infants and children, Insurance, Intergovernmental 
relations, International organizations, Inventions and patents, Loan 
programs, Loan programs social programs, Loan programs-agriculture, 
Loan programs-business and industry, Loan programs-communications, Loan 
programs-energy, Loan programs-health, Loan programs-housing and 
community development, Manpower training programs, Migrant labor, 
Mortgage insurance, Nonprofit organizations, Northern Mariana Islands, 
Pacific Islands Trust Territories, Privacy, Renewable Energy, Reporting 
and recordkeeping requirements, Rural areas, Scholarships and 
fellowships, School construction, Schools, Science and technology, 
Securities, Small businesses, State and local governments, Student aid, 
Teachers, Telecommunications, Telephone, Urban areas, Veterans, Virgin 
Islands, Vocational education, Vocational rehabilitation, Waste 
treatment and disposal, Water pollution control, Water resources, Water 
supply, Watersheds, Women.

44 CFR Part 13

    Accounting, Grant programs, Indians, Intergovernmental relations, 
Reporting and recordkeeping requirements.

44 CFR Part 78

    Flood insurance, Grant programs.

44 CFR Part 79

    Flood insurance, Grant programs.

44 CFR Part 152

    Fire prevention, Grant programs, Reporting and recordkeeping 
requirements.

44 CFR Part 201

    Administrative practice and procedure, Disaster assistance, Grant 
programs, Reporting and recordkeeping requirements.

44 CFR Part 206

    Administrative practice and procedure, Coastal zone, Community 
facilities, Disaster assistance, Fire prevention, Grant programs-
housing and community development, Housing, Insurance, 
Intergovernmental relations, Loan programs-housing and community 
development, Natural resources, Penalties, Reporting and recordkeeping 
requirements.

44 CFR Part 207

    Administrative practice and procedure, Disaster assistance, Grant 
programs, Reporting and recordkeeping requirements.

44 CFR Part 208

    Disaster assistance, grant programs.

44 CFR Part 304

    American Samoa, Civil defense, Grant programs-National defense, 
Guam, Northern Mariana Islands, Reporting and recordkeeping 
requirements, Virgin Islands.

44 CFR Part 360

    Civil defense, Disaster assistance, Education, Grant programs-
education, Intergovernmental relations, Reporting and recordkeeping 
requirements.

44 CFR Part 361

    Disaster assistance, Grant programs-housing and community 
development, Reporting and recordkeeping requirements.

    Accordingly, the interim final rule amending 2 CFR part 3002 and 44 
CFR parts 13, 78, 79, 152, 201, 204, 206, 207, 208, 304, 360, and 361, 
which was published in the Federal Register at 79 FR 75871 on December 
19, 2014, is adopted as final with the following changes:

Title 44--Emergency Management and Assistance

PART 201--MITIGATION PLANNING

0
1. The authority citation for Part 201 continues to read as follows:

    Authority: Robert T. Stafford Disaster Relief and Emergency 
Assistance Act, 42 U.S.C. 5121 through 5207; Reorganization Plan No. 
3 of 1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; Homeland Security 
Act of 2002, 6 U.S.C. 101; E.O. 12127, 44 FR 19367, 3 CFR, 1979 
Comp., p. 376; E.O. 12148, 44 FR 43239, 3 CFR, 1979 Comp., p. 412; 
E.O. 13286, 68 FR 10619, 3 CFR, 2003 Comp., p. 166.

0
2. Section 201.4 is amended by adding a sentence to the end of 
paragraph (c)(7) to read as follows:

Sec.  201.4  Standard State Mitigation Plans.

* * * * *
    (c) * * *
    (7) * * * The State will amend its plan whenever necessary to 
reflect changes in State or Federal statutes and regulations.
* * * * *

0
3. Section 201.7 is amended by adding a sentence to the end of 
paragraph (c)(6) to read as follows:

Sec.  201.7  Tribal Mitigation Plans.

* * * * *
    (c) * * *
    (6) * * * The Indian Tribal government will amend its plan whenever 
necessary to reflect changes in Tribal or Federal laws and statutes.
* * * * *

    Dated: September 22, 2015.
Jeh Charles Johnson,
Secretary of Homeland Security.
[FR Doc. 2015-24584 Filed 10-1-15; 8:45 am]
 BILLING CODE 9111-66-P, 9110-17-P