Document ID: FEMA-2010-0021-0001
Agency: fema
Document Type: Proposed Rule
Title: National Flood Insurance Program: Policy Wording Correction
Posted Date: 2010-09-03T04:00Z

[Federal Register: September 3, 2010 (Volume 75, Number 171)]
[Proposed Rules]               
[Page 54076-54078]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03se10-31]                         

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Part 61

[Docket ID: FEMA-2010-0021]
RIN 1660-AA70

 
National Flood Insurance Program, Policy Wording Correction

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Proposed rule; request for comments.

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SUMMARY: By this Notice of Proposed Rulemaking, the Federal Emergency 
Management Agency (FEMA) is proposing a technical correction to the 
FEMA, Federal Insurance and Mitigation Administration, Standard Flood 
Insurance Policy regulations. In this proposed rule, FEMA intends to 
increase the clarity of one of the provisions of the Standard Flood 
Insurance Policy by adding in two unintentionally omitted words.

DATES: Comments must be submitted on or before November 2, 2010.

ADDRESSES: You may submit comments, identified by Docket ID: FEMA-2010-
0021, by one of the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    E-mail: FEMA-RULES@dhs.gov. Include Docket ID: FEMA-2010-0021 in 
the subject line of the message.
    Fax: (703) 483-2999.
    Mail/Hand Delivery/Courier: Office of Chief Counsel, Federal 
Emergency Management Agency, Room 835, 500 C Street, SW., Washington, 
DC 20472-3100.
    To avoid duplication, please use only one of these methods. All 
comments received will be posted without change to http://
www.regulations.gov, including any personal information provided. For 
instructions on submitting comments, See the Public Participation 
portion of the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: Edward L. Connor, Acting Federal 
Insurance and Mitigation Administrator, DHS/FEMA, 1800 South Bell 
Street, Arlington, VA 20598-3010. Phone: (202) 646-3429. Facsimile: 
(202) 646-7970. E-mail: Edward.Connor@dhs.gov.

SUPPLEMENTARY INFORMATION:

I. Public Participation

    Interested persons are invited to participate in this rulemaking by 
submitting written data, views, or arguments on all aspects of this 
Notice of Proposed Rulemaking (NPRM). Comments that will provide the 
most assistance to the Federal Emergency Management Agency (FEMA) in 
developing this rule will refer to a specific provision of the NPRM, 
explain the reason for any comments, and include other information or 
authority that supports such comments. All comments received will be 
posted, without change, to http://www.regulations.gov and will include 
any personal information you have provided. If you submit a comment,

[[Page 54077]]

please include the Docket ID for this rulemaking, FEMA-2010-0021, 
indicate the specific section of this document to which each comment 
applies, and provide a reason for each suggestion or recommendation.

A. Privacy Act

    Please be aware that anyone is able to search the electronic form 
of all comments received into any of our dockets by the name of the 
individual who submitted the comment (or signed the comment, if 
submitted on behalf of an association, business, labor union, etc.) You 
may want to review the Federal Docket Management System system of 
records notice published in the Federal Register on March 24, 2005 (70 
FR 15086).

B. Submission of Sensitive Information

    Do not submit comments that include trade secrets, confidential 
commercial or financial information to the public regulatory docket. 
Please submit such comments separately from other comments on the rule. 
Comments containing this type of information should be appropriately 
marked as containing such information and submitted by mail to the 
address specified in the ADDRESSES section of this NPRM. If FEMA 
receives a request to examine or copy this information, FEMA will treat 
it as any other request under the Freedom of Information Act (FOIA), 5 
U.S.C. 552, and the Department of Homeland Security's FOIA regulation 
found in 6 CFR part 5 and FEMA's regulations found in 44 CFR part 5.

C. Public Meeting

    FEMA does not plan to hold a public meeting on this NPRM, but you 
may submit a request for one at the address specified in the ADDRESSES 
section of this NPRM explaining why one would be beneficial. If FEMA 
determines that a public meeting would aid this rulemaking, FEMA will 
hold one at a time and place announced by a notice in the Federal 
Register.

II. Background

    Under the authority of sections 1304 and 1345 of the National Flood 
Insurance Act of 1968, Public Law 90-448, 82 Stat. 574, as amended (42 
U.S.C. 4011, 4081), 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.
    The policy sold is the FEMA Standard Flood Insurance Policy (SFIP), 
which is published in 44 CFR part 61, Appendix A. The SFIP has six 
parts, the Dwelling Form (App A(1)), General Property Form (App A(2)), 
Residential Condominium Building Association Policy (App A(3)), 
Endorsement to Dwelling Form (App A(4)), Endorsement to General 
Property Form (App A(5)), and the Endorsement to Residential 
Condominium Building Association Policy (App A(6)). The language in the 
Dwelling Form and the General Property Form are similar with respect to 
their discussion of the property covered. For example, the paragraph at 
44 CFR part 61 Appendix A(1) III.B.3 contains the same substance as the 
paragraph at 44 CFR part 61 Appendix A(2) III.B.4.
    However, 44 CFR part 61 Appendix A(2) III.B.4 reads:

    Items of property in a building enclosure below the lowest 
elevated floor of an elevated post-FIRM building located in zones 
A1-A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE, or 
in a basement, regardless of the zone, is limited to the following 
items, if installed in their functioning locations and, if necessary 
for operation, connected to a power source: * * *

    While 44 CFR part 61 Appendix A(1) III.B.3 reads:

    Coverage for items of property in a building enclosure below the 
lowest elevated floor of an elevated post-FIRM building located in 
zones A1-A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or 
VE, or in a basement, regardless of the zone, is limited to the 
following items, if installed in their functioning locations and, if 
necessary for operation, connected to a power source: * * *

III. Discussion of Rule

    On May 31, 2000, FEMA published an NPRM at 65 FR 34823 that 
proposed to revise the SFIP so that it would conform to ``plain 
language'' standards. The rule also proposed changes that would bring 
the three forms of the SFIP more in line with the format of the 
insurance industry's homeowners policy. FEMA also proposed changes in 
the coverage.
    On October 12, 2000, FEMA published a final rule at 65 FR 60757. 
The final rule changed the SFIP so that it was in ``plain language'' 
and restructured the format to resemble the homeowners policy. FEMA 
also made changes in the policy's coverage and addressed the comments 
received after the publication of the NPRM.
    The SFIP General Property Form is missing ``Coverage for'' at the 
beginning of 44 CFR part 61 Appendix A(2) III.B.4. This omission 
started in the NPRM. However, the omission did not affect 44 CFR until 
the final rule's effective date of December 31, 2000. The words 
``Coverage for'' do not substantively change the effect of the 
paragraph in question, as FEMA has always interpreted the substance of 
the paragraph as discussing those items which are or are not covered by 
the policy. However, to clarify and ensure consistency with the other 
paragraphs in Appendix A, FEMA is proposing to correct the paragraph by 
adding the words ``Coverage for'' at the beginning of 44 CFR part 61 
Appendix A(2) III.B.4. With this proposed change, it would be clear on 
its face that the paragraph discusses the limitations of coverage for 
these certain types of items.

IV. Regulatory Analyses

A. Executive Order 12866, Regulatory Planning and Review

    This proposed rule is not a ``significant regulatory action'' under 
section 3(f) of Executive Order 12866, ``Regulatory Planning and 
Review'' (58 FR 51735, Oct. 4, 1993), accordingly FEMA has not 
submitted it to the Office of Management and Budget (OMB) for review. 
This rule is solely adding two unintentionally omitted words to the 
SFIP and will not affect the way that FEMA interprets or applies the 
policy. FEMA expects that this change would have no economic impact.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612) requires that 
special consideration be given to the effects of proposed regulations 
on small entities. This rule will not have an economic impact on the 
regulated public. Therefore, FEMA certifies that this will not have a 
significant economic impact on a substantial number of small entities.

C. Paperwork Reduction Act of 1995

    As required by the Paperwork Reduction Act of 1995 (PRA) Public Law 
104-13 (44 U.S.C. 3501 et seq.), as amended, an agency 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 OMB 
control number.
    Although this proposed regulatory change will not result in a new 
collection of information affected by the PRA, the collection of 
information for the National Flood Insurance Program Policy Forms is 
approved under OMB

[[Page 54078]]

Number, 1660-0006. The expiration date for 1660-0006 is August 31, 
2012.

D. Executive Order 13132, Federalism

    A rule has implications for federalism under Executive Order 13132, 
``Federalism'' (64 FR 43255, Aug. 10, 1999), if it has a substantial 
direct effect on State or local governments and would either preempt 
State law or impose a substantial direct cost of compliance on them. 
FEMA has analyzed this proposed rule under Executive Order and 
determined that it does not have implications for federalism.

E. Unfunded Mandates Reform Act of 1995

    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 this proposed rule will not have a 
substantive effect on the public, this rule is not an unfunded Federal 
mandate.

F. Executive Order 12630, Taking of Private Property

    This rule will not effect a taking of private property or otherwise 
have taking implications under Executive Order 12630, ``Governmental 
Actions and Interference with Constitutionally Protected Property 
Rights'' (53 FR 8859, Mar. 18, 1988).

G. Executive Order 12898, Environmental Justice

    Under Executive Order 12898, as amended ``Federal Actions To 
Address Environmental Justice in Minority Populations and Low-Income 
Populations'' (59 FR 7629, Feb. 16, 1994), FEMA incorporates 
environmental justice into its policies and programs. Executive Order 
12898 requires each Federal agency to conduct its programs, policies, 
and activities that substantially affect human health or the 
environment, in a manner that ensures that those programs, policies, 
and activities do not have the effect of excluding persons from 
participation in, denying persons the benefit of, or subjecting persons 
to discrimination because of their race, color, or national origin or 
income level.
    No action that FEMA can anticipate under this proposed rule will 
have a disproportionately high and adverse human health or 
environmental effect on any segment of the population. Accordingly, the 
requirements of Executive Order 12898 do not apply to this proposed 
rule.

H. Executive Order 12988, Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and 
3(b)(2) of Executive Order 12988, ``Civil Justice Reform'' (61 FR 4729, 
Feb. 7, 1996), to minimize litigation, eliminate ambiguity, and reduce 
burden.

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

    This proposed rule does not have tribal implications under 
Executive Order 13175, ``Consultation and Coordination With Indian 
Tribal Governments'' (65 FR 67249, Nov. 9, 2000), because it 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.

J. Executive Order 13045, Protection of Children From Environmental 
Health Risks and Safety Risks

    This proposed rule will not create environmental health risks or 
safety risks for children under Executive Order 13045, Protection of 
Children From Environmental Health Risks and Safety Risks (62 FR 19885, 
Apr. 23, 1997).

K. National Environmental Policy Act

    Rulemaking is a major Federal action subject to the National 
Environmental Policy Act of 1969, Public Law 91-190, 83 Stat. 852 (Jan. 
1, 1970) (42 U.S.C. 4321 et seq.), as amended. The List of exclusion 
categories at 44 CFR 10.8(d)(2)(ii) excludes the preparation, revision, 
and adoption of regulations from the preparation of an environmental 
assessment or environmental impact statement, where the rule relates to 
actions that qualify for categorical exclusions. Technical corrections 
to a rulemaking are categorically excluded under 44 CFR 10.8(d)(2)(i) 
and no extraordinary circumstances exist requiring the need to develop 
an environmental assessment or environmental impact statement. Thus, 
the preparation, revision, and adoption of regulations related to this 
action is categorically excluded.

List of Subjects in 44 CFR Part 61

    Flood insurance, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, FEMA proposes to amend 44 
CFR chapter I as follows:

PART 61--INSURANCE COVERAGE AND RATES

    1. The authority citation for part 61 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.

Appendix A(2) to Part 61--[AMENDED]

    2. Amend Appendix A(2) to part 61, by removing ``Items'' and adding 
``Coverage for items'' in its place in paragraph III.B.4.

    Dated: August 27, 2010.
W. Craig Fugate,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2010-22045 Filed 9-2-10; 8:45 am]
BILLING CODE 9110-12-P