o The Borough of Olyphant, PA submitted an application through Pennsylvania Emergency Management Agency (PEMA) for HMGP funding of a land purchase for construction of a floodwall and levee by the United States Army Corps of Engineers (USACE). The project was not approved, and a 1st level appeal was denied by Region III.
• Reason for Denial
o Issues contributing to the denial by Region III involved cost-share requirements and the potential for induced flooding in neighboring communities as a result of the planned flood control structures.
o 44 CFR 206.434 HMGP Eligibility; 44 CFR 206.440 Appeals
o PEMA submitted a 2nd appeal on behalf of the Borough of Olyphant to overturn the 1st appeal denial. New information that had not been available to the Regional Office was provided by the USACE during review of the 2nd appeal.
• FEMA Findings
o The 2nd appeal decision verified validity of issues leading to the 1st appeal denial, but overturned the 1st appeal denial and provided conditional approval for HMGP funding of the project. Conditions of approval included completion of an environmental review and a benefit-cost analysis, and the request by Olyphant of a conditional letter of map revision (CLOMR) to comply with Parts 60 and 65 of the National Flood Insurance Program regulations.
o The rationale for the 2nd appeal decision was that the new information and documentation submitted by USACE provided verification that the project was eligible for HMGP funding. The new information verified that the proposed project would not induce flooding in neighboring communities. However, the report raised additional eligibility concerns, identifying hazardous materials sites in the proposed project area. USACE provided written assurance that HMGP funds would not be used to acquire contaminated land or as a non-Federal match by the Borough of Olyphant.
o Reference(s): 44 CFR 206.434 HMGP Eligibility; 44 CFR 206.440 Appeals