Floodplain Management and Wetlands Protection Updates

Summary

On October 2, 2023, the Federal Emergency Management Agency (FEMA) published a notice of proposed rulemaking (NPRM) and supplementary policy that proposed to implement the Federal Flood Risk Management Standard (FFRMS) and update the agency's 8-step decision- making process for floodplain reviews by changing how FEMA defines a floodplain with respect to certain actions and how FEMA uses natural systems, ecosystem processes, and nature-based approaches when developing alternatives to locating a proposed action in the floodplain. After a careful review of the public comments received, FEMA is now issuing a final rule that implements the proposed rule, with some minor amendments.

Compliance Requirements

1. #1

   FEMA must apply the Federal Flood Risk Management Standard (FFRMS) to all actions it directly takes and to all actions it funds through grants to eligible State, local, Tribal, and territorial (SLTT) governments, certain private non-profits, and individuals and households for pre- and post-emergency or disaster-related projects; For actions subject to the FFRMS, FEMA must update the definition of 'floodplain' to use the definition in the Revised Guidelines, allowing establishment of the floodplain using any of the following approaches: Climate-Informed Science Approach (CISA), Freeboard Value Approach (FVA), 0.2-percent-annual-chance Flood Approach (0.2PFA), or any other method identified in an update to the FFRMS; FEMA must use natural systems, ecosystem processes, and nature-based approaches where possible when developing alternatives to locating a proposed agency action in the floodplain; FEMA must apply the 8-step decision-making process to any action it takes in floodplains to ensure avoidance of long- and short-term adverse impacts associated with the occupancy and modification of floodplains, and to avoid direct or indirect support of floodplain development wherever there is a practicable alternative; FEMA must update monetary thresholds in § 9.5 of 44 CFR Part 9; FEMA must incorporate the use of the internet in public notice requirements in § 9.8; FEMA must consolidate temporary housing requirements in § 9.13; FEMA must add the National Park Service to the best available information sources list at 44 CFR 9.7(c)(3); FEMA must incorporate the use of Indigenous Knowledge by adding Indian Tribal governments to the best available information sources list at 44 CFR 9.7(c)(3)

   Deadline: 2024-09-09(September 9, 2024)

Market Impacts

• Implementation of FFRMS creates higher elevation and floodproofing requirements for federally funded projects, increasing compliance barriers for construction firms working on FEMA grant projects; New requirements for climate-informed science approaches and nature-based solutions create market opportunities for specialized engineering firms, data providers, and green infrastructure suppliers; Expanded floodplain definition using CISA, FVA, or 0.2PFA approaches restricts development options and increases requirements for projects in areas previously considered developable; Mandatory use of Climate-Informed Science Approach (CISA) as primary method requires specialized technical expertise and data analysis capabilities for all FEMA-funded projects; Final rule incorporates Indigenous Knowledge by adding Indian Tribal governments to best available information sources list, creating market opportunities for Tribal environmental consulting services; Increased technical requirements and compliance costs may create barriers to entry for smaller construction firms and local contractors without specialized flood resilience expertise

Validated Company Impacts