Document ID: FEMA-2010-0021-0002
Agency: fema
Document Type: Rule
Title: National Flood Insurance Program, Policy Wording Correction
Posted Date: 2011-02-10T05:00Z

[Federal Register Volume 76, Number 28 (Thursday, February 10, 2011)]
[Rules and Regulations]
[Pages 7508-7510]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-2942]

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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: Final rule.

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

DATES: This rule is effective March 14, 2011.

ADDRESSES: The Notice of Proposed Rulemaking is part of Docket ID: 
FEMA-2010-0021 and is available online by going to http://www.regulations.gov, inserting FEMA-2010-0021 in the ``Keyword'' box, 
and then clicking ``Search''. The Docket is also available for 
inspection or copying at FEMA, 500 C Street, SW., Room 840, Washington, 
DC 20472.

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. Background and Purpose

    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), 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

[[Page 7509]]

(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: * * *

    On May 31, 2000, FEMA published a Notice of Proposed Rulemaking 
(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 May 31, 2000 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, on September 3, 2010, FEMA published an NPRM 
entitled National Flood Insurance Program, Policy Wording Correction in 
the Federal Register (75 FR 54076), to clarify and ensure consistency 
with the other paragraphs in Appendix A. FEMA proposed 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 change, it will be clear 
on its face that the paragraph discusses the limitations of coverage 
for these certain types of items.

II. Discussion of Comments and Changes

    FEMA received no comments on the September 3, 2010 NPRM. No public 
meeting was requested, and none was held. Therefore, in this final rule 
FEMA is amending 44 CFR with the language that was proposed in the NPRM 
without change.

III. Regulatory Analyses

A. Executive Order 12866, Regulatory Planning and Review

    This final 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 final 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 Number, 1660-0006. The expiration date for 1660-0006 
is August 31, 2013.

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 final 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 final 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

[[Page 7510]]

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 final rule will have a disproportionately 
high and adverse human health or environmental effect on any segment of 
the population.

H. Executive Order 12988, Civil Justice Reform

    This final 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 final 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 final 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.

L. Congressional Review of Agency Rulemaking

    FEMA has sent this final rule to Congress and to the Government 
Accountability Office under the Congressional Review of Agency 
Rulemaking Act (Act), Public Law 104-121, 110 Stat. 873 (Mar. 29, 1996) 
(5 U.S.C. 804). The 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 prices for consumers, individual industries, Federal, 
State, or local government agencies, or geographic regions. FEMA does 
not expect that it will have significant adverse effects on 
competition, employment, investment, productivity, innovation, or on 
the ability of United States-based enterprises to compete with foreign-
based enterprises.

List of Subjects in 44 CFR Part 61

    Flood insurance, Reporting and recordkeeping requirements.
    For the reasons stated in the preamble, FEMA amends 44 CFR chapter 
I as set forth below:

PART 61--INSURANCE COVERAGE AND RATES

0
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]

0
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: February 4, 2011.
W. Craig Fugate,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2011-2942 Filed 2-9-11; 8:45 am]
BILLING CODE 9110-12-P