Pursuant to 44 C.F.R. § 10.4(a) FEMA is required to “act with care to assure that, in carrying out its responsibilities, including disaster planning, response and recovery and hazard mitigation and flood insurance, it does so in a manner consistent with national environmental policies.” The Applicant has failed to comply with the grant requirement to operate under a valid permit at all times, or the measures it agreed to implement to satisfy permit requirements. Pursuant to 44 C.F.R. § 206.44, the arrangement between FEMA and a grantee is embodied in the FEMA-State Agreement, which sets forth the understandings, commitments, and conditions for the receipt of PA funding. Per 44 C.F.R. §13.43 FEMA can take enforcement action in the event that a “grantee or subgrantee materially fails to comply with any term of an award…” The legally binding requirements of the PA grant are embodied in FEMA regulation, the FEMA-State Agreement, and PW 610. FEMA properly exercised its discretionary authority in deobligating funding.

: FEMA properly deobligated funding based on the Grantee and Applicant’s noncompliance with permit requirements and the Applicant’s inability to establish that it operated under a valid permit authorization. Additionally, FEMA properly exercised its discretion by deobligating funding.

44 C.F.R. § 10.4(a). 44 C.F.R. § 206.44. 44 C.F.R. § 13.43. City of Fort Pierre, FEMA-1984-DR-SD, at 4.