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Statement of Need: The proposed changes implement new statutory authorities and incorporate necessary clarifications and corrections to streamline and improve the Public Assistance Program. Portions of FEMA’s Public Assistance regulations have become out-of-date and do not reflect current statutory requirements and authorities. These inconsistencies and deficiencies inhibit FEMA’s ability to clearly articulate its regulatory requirements, and the Public Assistance applicants’ understanding of the program. The proposed changes are intended to improve the efficiency and consistency of the Public Assistance Program.

Summary of the Legal Basis: The legal authority for the changes in this proposed rule is contained in the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121-5207 as amended by the Post-Katrina Emergency Management Reform Act of 2006, 6 U.S.C. 701 et seq., the Security and Accountability for Every Port Act of 2006, 6 U.S.C. 901 note, the Local Community Recovery Act of 2006, Public Law 109-218, 120 Stat. 333, and the Pets Evacuation and Transportation Standards Act of 2006, Public Law 109-308, 120 Stat. 1725.

Alternatives: The alternative would be to not implement the new authorities provided to FEMA through post-Katrina legislation, and not take independent steps to improve upon the Public Assistance Program. FEMA does not deem this an acceptable alternative.

Anticipated Costs and Benefits: FEMA is in the process of drafting a complete economic analysis for this proposed rulemaking. Although the economic analysis is not yet complete, the proposed rule is expected to have economic impacts on the public, Grantees, subgrantees, and FEMA. The expected benefits are a reduction in property damages, societal losses, and losses to local businesses, as well as improved efficiency and consistency of the Public Assistance Program. The expected cost impact of the proposed rule is mainly the costs to FEMA in administering the Public Assistance Program. The total economic impact of the proposed rule is estimated at approximately $100 million per year. These costs are expected to accrue from the inclusion of education to the list of eligible private nonprofit critical services; expansion of force account labor cost eligibility; the inclusion of durable medical equipment; the evacuation, care, and sheltering of pets; as well as precautionary evacuation measures; etc. However, most of the proposed changes are not expected to result in any additional cost to FEMA or any changes in the eligibility of assistance. For example, the proposed rule would provide for accelerated Federal assistance and expedited payment of Federal share for debris removal. These are expected to improve the agency’s ability to quickly provide funding to Grantees and subgrantees without affecting Public Assistance funding amounts.

Risks: This action does not adversely affect public health, safety, or the environment.