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National Flood Insurance Program (NFIP); Group Flood Insurance Policy (GFIP)

Note: EPA no longer updates this information, but it may be useful as a reference or resource.

 [Federal Register: September 30, 2002 (Volume 67, Number 189)]
[Rules and Regulations]
[Page 61460-61462]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30se02-20]

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FEDERAL EMERGENCY MANAGEMENT AGENCY
44 CFR Part 61
RIN 3067-AD31
 
National Flood Insurance Program (NFIP); Group Flood Insurance 
Policy (GFIP)

AGENCY: Federal Emergency Management Agency (FEMA).
ACTION: Interim final rule.

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SUMMARY: We (the Federal Insurance and Mitigation Administration of 
FEMA) are amending the Group Flood Insurance Policy (GFIP), as a result 
of the consolidation of sections 408 and 411 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (the Stafford Act) by the 
Disaster Mitigation Act of 2000, which created a new disaster 
assistance program.

DATES: Effective Date: This rule is effective September 30, 2002.

[[Page 61461]]

    Applicability Date: This rules applies to Emergencies and Major 
Disasters declared on or after October 15, 2002.
    Comment Date: Please submit written comments on or before April 15, 
2003.

ADDRESSES: Please send your comments to the Rules Docket Clerk, Office 
of the General Counsel, Federal Emergency Management Agency, 500 C 
Street, SW., Room 840, Washington, DC 20472, (facsimile) 202-646-4536, 
or (e-mail) rules@fema.gov.

FOR FURTHER INFORMATION CONTACT: Suzan M. Krowel, Federal Emergency 
Management Agency, Federal Insurance Administration, (202) 646-3423, 
(facsimile) (202) 646-4327, or (e-mail) Suzan.Krowel@fema.gov.

SUPPLEMENTARY INFORMATION: FEMA established the GFIP in the mid-1990's 
to address the need for recipients of Individual and Family Grant (IFG) 
disaster assistance under section 411 of the Stafford Act to purchase 
flood insurance as a condition of their receipt of the IFG assistance.
    The purpose of the GFIP was to provide a temporary mechanism for 
the recipients of the IFG grants--generally low-income persons--to have 
flood insurance coverage for a period of thirty-seven months following 
a flood loss so that they would have time to recover from the disaster 
and be in better position to buy flood insurance for themselves after 
the expiration of the GFIP.
    Section 408 of the Stafford Act, 42 U.S.C. 5174, entitled 
``Temporary Housing Assistance,'' and section 411 of the Stafford Act, 
42 U.S.C. 5178, entitled ``Individual and Family Grant Programs,'' have 
been effectively combined into a revised section 408 of the Stafford 
Act by section 206 of the Disaster Mitigation Act of 2000, Pub. L. 106-
390, to establish a single program called the Federal Assistance to 
Individuals and Households Program (IHP). The maximum IFG assistance 
was $14,800. The maximum IHP assistance is $25,000. Therefore, we (the 
Federal Insurance and Mitigation Administration of FEMA) must make 
revisions to the GFIP.
    The coverage will now be in the amount of $25,000. The premium for 
this coverage will be a flat fee of $600. The deductible will remain at 
$200, which is applicable separately to real property (building) and 
personal property (contents). The GFIP term will be 36 months. 
Previously the term had been increased to 37 months, because one state 
needed additional time to work with its GFIP certificate holders to 
make arrangements to buy and maintain flood insurance beyond the GFIP 
term of 36 months. The extra time is no longer necessary.
    The purpose of the new GFIP policy is the same as the previous GFIP 
policy: to provide a temporary mechanism for the recipients of the IHP 
grants--generally low-income persons--to have flood insurance coverage 
for a period of three years following a flood loss so that they will 
have time to recover from the disaster and be in a better position to 
buy flood insurance for themselves after the expiration of their three-
year policy term.
    We intend to continue analyzing the GFIP to make further 
adjustments in premium charges as warranted.
    FEMA is considering allowing the states to renew the GFIP policy 
after the 36 month expiration, provided the states pay the premium. We 
invite comments on this proposal.

National Environmental Policy Act

    This interim final rule falls within the exclusion category 44 CFR 
Part 10.8(d)(2)(ii), which addresses the preparation, revision, and 
adoption of regulations, directives, and other guidance documents 
related to actions that qualify for categorical exclusions. Qualifying 
for this exclusion and because no other extraordinary circumstances 
have been identified, this interim final rule will not require the 
preparation of either an environmental assessment or environmental 
impact statement as defined by the National Environmental Policy Act.

Executive Order 12866, Regulatory Planning and Review

    We have prepared and reviewed this rule under the provisions of 
E.O. 12866, Regulatory Planning and Review. Under Executive Order 
12866, 58 FR 51735, October 4, 1993, a significant regulatory action is 
subject to OMB review and the requirements of the Executive Order. The 
Executive Order defines ``significant regulatory action'' as one that 
is likely to result in a rule that may:
    (1) have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities;
    (2) create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    For the reasons that follow we have concluded that this rule is 
neither an economically significant nor a significant regulatory action 
under the Executive Order.
    The rule will accomplish one primary purpose: revise the GFIP as a 
result of the changes in the Stafford Act. The Office of Management and 
Budget has not reviewed this rule under the principles of Executive 
Order 12866.

Paperwork Reduction Act

    This interim final rule does not contain a collection of 
information and it is therefore not subject to the provisions of the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Executive Order 13132, Federalism

    Executive Order 13132, Federalism, dated August 4, 1999, sets forth 
principles and criteria that agencies must adhere to in formulating and 
implementing policies that have federalism implications, that is, 
regulations that have substantial direct effects on the States, or on 
the distribution of power and responsibilities among the various levels 
of government. Federal agencies must closely examine the statutory 
authority supporting any action that would limit the policymaking 
discretion of the States, and to the extent practicable, must consult 
with State and local officials before implementing any such action.
    We have reviewed this rule under E.O. 13132 and have concluded that 
the rule does not have federalism implications as defined by the 
Executive Order. We have determined that the rule does not 
significantly affect the rights, roles, and responsibilities of States, 
and involves no preemption of State law nor does it limit State 
policymaking discretion.

Executive Order 12778, Civil Justice Reform

    This final rule meets the applicable standards of Sec.  2(b)(2) of 
E.O. 12778.

Administrative Procedure Act Statement

    In general, FEMA publishes a rule for public comment before issuing 
a final rule, under the Administrative Procedure Act, 5 U.S.C. 533 and 
44 CFR 1.12. The Administrative Procedure Act, however, provides an 
exception from that general rule where the agency for good cause finds 
the procedures for comment and response contrary to public interest. 
Section 206 of the Disaster Mitigation Act of 2000 has

[[Page 61462]]

combined sections 408 and 411, respectively, of the Stafford Act, into 
a revised section 408. The grant amount has been increased to $25,000 
and a single grant program has been established, titled the Federal 
Assistance to Individuals and Households Grant Program (IHP).
    The GFIP was established to provide flood insurance for all 
individuals named by the State as recipients under the Stafford Act 
grant program award for flood damage as a result of a major disaster 
declaration by the President. This interim final rule revises the GFIP 
to meet the new limits stated in the revised Stafford Act grant 
program. The revisions to the GFIP must coincide with the revisions to 
the Stafford Act.
    The public benefit of this rule is the continuation of the GFIP 
without interruption, the increase in the amount of coverage provided, 
and the deductible remaining at $200.
    Therefore, we believe it is contrary to the public interest to 
delay the benefits of this rule. In accordance with the Administrative 
Procedure Act, 5 U.S.C. 553 (d)(3), we find that there is good cause 
for the interim final rule to take effect immediately upon publication 
in the Federal Register in order to coincide with the revisions to the 
Stafford Act.
    In addition, we believe that, under the circumstances, delaying the 
effective date of this rule until after a comment period would not 
further the public interest. For these reasons, we believe we have good 
cause to publish an interim final rule.

List of Subjects in 44 CFR Part 61

    Flood insurance.

    Accordingly, we amend 44 CFR Part 61 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.

    2. Revise paragraphs (a) (b) (c) (d) and (h) of Sec.  61.17 to read 
as follows:

Sec.  61.17  Group Flood Insurance Policy.

    (a) A Group Flood Insurance Policy (GFIP) is a policy covering all 
individuals named by a State as recipients under section 408 of the 
Stafford Act (42 U.S.C. 5174) of an Individuals and Households Program 
(IHP) award for flood damage as a result of major disaster declaration 
by the President.
    (b) The premium for the GFIP is a flat fee of $600 per insured. We 
may adjust the premium to reflect NFIP loss experience and any 
adjustment of benefits under the IHP program.
    (c) The amount of coverage is equivalent to the maximum grant 
amount established under section 408 of the Stafford Act (42 U.S.C. 
5174).
    (d) The term of the GFIP is for 36 months and begins 60 days after 
the date of the disaster declaration.
* * * * *
    (h) We will send a notice to the GFIP certificate holders 
approximately 60 days before the end of the thirty-six month term of 
the GFIP. The notice will encourage them to contact a local insurance 
agent or producer or a private insurance company selling NFIP policies 
under the Write Your Own program of the NFIP Standard Flood Insurance 
Policy, and advise them as to the amount of coverage they must maintain 
in order not to jeopardize their eligibility for future disaster 
assistance. The IHP program will provide the NFIP the amount of flood 
insurance coverage to be maintained by certificate holders.

    (Catalog of Federal Domestic Assistance No. 83.100, ``Flood 
Insurance''; No. 83.516, ``Disaster Assistance'')
    Dated: September 25, 2002.
Anthony S. Lowe,
Administrator, , Federal Insurance and Mitigation Administration.
[FR Doc. 02-24734 Filed 9-27-02; 8:45 am]
BILLING CODE 6718-03-P

 
 

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