M. CASEY RODGERS, District Judge.
The Federal Emergency Management Agency ("FEMA") previously obligated hazard mitigation grant funds to assist the State of Florida in amounts initially totaling over $400 million after four major hurricanes impacted the State in 2004 and 2005. Plaintiff Rebuild Northwest Florida, Inc. ("Rebuild") was a subgrantee, approved to receive more than $7 million under the various grants for wind retrofit projects designed to make homes less vulnerable to future storms. The time for Rebuild to perform under its subgrants expired in 2016, but additional original grant money ($16,758,60,916) remained available to the State for distribution to subgrantees until 2017, when FEMA decided to deobligate those remaining funds.
Rebuild brings suit, under the Administrative Procedure Act ("APA"), 5 U.S.C. §§ 702-706, and the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the "Stafford Act"), 42 U.S.C. §§ 5121-5208, asserting in the Second Amended Complaint that the deobligation decision was improper agency action. Rebuild seeks declaratory relief to establish that the grant funds in the amount of $16,758,60,916 remain available to the State for distribution and, in turn, to Rebuild as a subgrantee. FEMA moves to dismiss, see Fed. R. Civ. P. 12(b)(1), (6), challenging the Court's subject matter jurisdiction and alternatively arguing that the complaint fails to state a claim. ECF No. 47. After careful review, the motion will be granted and the case dismissed for lack of jurisdiction.
In the span of a little over one year, Florida was hit by four major hurricanes: Hurricane Charley in August of 2004, Hurricanes Ivan and Jeanne in September of 2004, and Hurricane Wilma in October of 2005. At the request of Florida's Governor and pursuant to the president's discretionary authority under the Stafford Act, 42 U.S.C. § 5170, then-President George W. Bush declared each hurricane a "major disaster" and directed FEMA to provide Florida with disaster relief under the Hazard Mitigation Grant Program ("HMGP"), 42 U.S.C. § 5170c. To carry out this directive, FEMA and the State of Florida then executed "FEMA-State Agreements" for each hurricane, by which FEMA agreed to grant the State through the Florida Division of Emergency Management ("FDEM") (grantee) "funds in the amount specified on the obligating document." ECF No. 1-1 at 7. The FEMA-State Agreements imposed "binding obligations" on both parties and subgrantees under the Stafford Act's implementing regulations.
The HMGP implementing regulations required FDEM to develop plans for administering and managing the grant funds. See 44 C.F.R. § 206.437. The relevant FDEM "State Administrative Plans" included terms and procedures by which eligible subgrantees could apply to the State for funds to be used in approved mitigation work, subject to final approval by FEMA.
In 2017, more than ten years after the major disaster hurricane declarations at issue in 2004 and 2005, FEMA decided to "deobligate" the remaining original unused HMGP funds previously obligated to the State under the FEMA-State Agreements but which were never disbursed. According to Rebuild, this totaled $16,758,609, as of June 27, 2017.
In the Second Amended Compliant, Rebuild references the Stafford Act as the authorization for the binding agreements and the HMGP funds and cites the APA as the basis for jurisdiction and the waiver of sovereign immunity.
The limitations placed on a federal court's subject-matter jurisdiction serve the important institutional interest of keeping federal courts within the bounds prescribed by the Constitution and Congress. Allapattah Servs., Inc. v. Exxon Corp., 362 F.3d 739, 753 (11th Cir. 2004) (quoting Ruhrgas AG v. Marathon Oil Co., 526 U.S. 574, 583 (1999)). Thus, "[i]t is axiomatic that the United States may not be sued without its consent and that the existence of consent is a prerequisite for jurisdiction." United States v. Mitchell, 463 U.S. 206, 212 (1983).
When a party challenges the court's subject-matter jurisdiction pursuant to Rule 12(b)(1), the challenge may be either facial or factual. McElmurray v. Consol. Gov't of Augusta — Richmond Cnty, 501 F.3d 1244, 1251 (11th Cir. 2007) (citing Williamson v. Tucker, 645 F.2d 404, 412 (5th Cir. 1981)
FEMA is a federal agency, mandated to provide federal relief to victims of natural disasters when a disaster is declared by the president. Sovereign immunity shields the federal government and its agencies from suit in the absence of an express waiver. FDIC v. Meyer, 510 U.S. 471, 475 (1994). The Stafford Act does not include its own waiver of sovereign immunity. To the contrary, the Stafford Act expressly precludes a challenge to discretionary functions of the agency, stating: "The Federal Government shall not be liable for any claim based upon the exercise or performance of or the failure to exercise or perform a discretionary function or duty . . . in carrying out the provisions of this chapter." 42 U.S.C. § 5148; see Burgos-Montes v. Municipality of Yauco, 294 F.Supp.2d 141, 142 (D.P.R. 2003) (stating, Congress has "passed legislation expressly immunizing the agency from suit"). Notably, the Eleventh Circuit has stated that, "[b]y enacting [§] 5148, Congress indicated its intent to preclude judicial review of all disaster relief claims based upon the discretionary actions of federal employees." Rosas v. Brock, 826 F.2d 1004, 1008 (11th Cir. 1987). The Eleventh Circuit in Rosas acknowledged that not every claim under the Stafford Act involves discretionary agency action, and so, not every claim is barred; that said, the court made clear that an agency's eligibility decision or similar act for which the "Act does not contain any guidelines" involves "the sort of exercise of discretion that Congress intended to insulate from judicial review."
Rebuild argues that Rosas does not apply because it is not challenging a discretionary decision of FEMA but, rather, agency action contrary to the FEMA-State Agreements and State Administrative Plans, which are considered to have created binding obligations under the Stafford Act. Rebuild argues that by these agreements, FEMA created a binding obligation to provide all of the grant money to the State, which is enforceable under the APA. In the circumstances presented, the Court disagrees. While these agreements undoubtedly contain binding obligations between the parties (FEMA and the State), they are legally binding on terms that do not apply here. Rebuild does not identify any provision in the Stafford Act or the applicable agreements that precludes FEMA from deobligating grant funds after more than ten years have passed, as in this case. The agreements themselves were terminable on seven days' notice by either party, and were also subject to POP limits, which should only total five years from the date of the original grant.
Rebuild argues nonetheless that the Court has jurisdiction under the APA to enforce FEMA's Stafford Act contractual funding obligations, relying on Bowen v. Massachusetts, 487 U.S. 879 (1988), for support. The Court finds this reliance misplaced. In Bowen, the Supreme Court found APA jurisdiction to review a final agency order refusing reimbursement to a state for expenses under a Medicaid program. While it is accurate to say that here, similar to Bowen, the plaintiff seeks to enforce a funding obligation rather than to obtain money damages, Bowen is easily distinguishable. The decision in Bowen was premised on the existence of a federal statute that mandated reimbursement of the costs at issue—the state had incurred costs and was seeking to enforce its right to reimbursement under the statute. See 487 U.S. at 885-86, 893-94, 900-01. That is a far cry from this case, where the disputed grant funds had never been disbursed to Rebuild or disallowed, and nothing in the Stafford Act mandated payment of the funds after expiration of the period of performance. Rebuild's argument assumes that FEMA's funding obligations continued in perpetuity and were not subject to a discretionary deobligation. As noted above, however, deobligation in the circumstances alleged was expressly authorized under the FEMA-approved State Administrative Plans, in which FDEM agreed that, "in keeping with the program regulations . . . any funds not disbursed by the grantee within the approved POP will be deobligated and returned to FEMA."
As an alternative ground for dismissal, the Court notes a concern with Rebuild's standing to bring suit. Rebuild has made only a conclusory allegation that it is aggrieved by the challenged agency action. Rebuild does not allege that it applied for these remaining HMGP funds or that it incurred any costs for which the statute or the governing documents require reimbursement.
Accordingly, the Federal Emergency Management Agency and Brock Long's Motion to Dismiss, ECF No. 47, is