Got this via email from FEMA yesterday:

"Announcement on NIMS Compliance and AFG Applicants
NIMS Compliance Not Required at Time of Application Submission
Re-Statement of Current Policy

This is to re-state FEMA’s current policy that AFG applicants are NOT required to be in compliance with the National Incident Management System (NIMS) either to apply for AFG funding or to successfully receive an AFG award.

The AFG application contains a question that asks whether the applicant organization is currently in compliance with NIMS because compliance is required of all Federal grantees. However, the fact that an applicant may not yet be in compliance with NIMS at the time of application does not mean that the applicant is ineligible, nor will it impact the applicant’s chances of being awarded.
Any department that receives a FY 2012 award will have until the end of that grant’s period of performance to achieve the necessary NIMS compliance level.

Applicants that need NIMS training may request funding for training through the Training Activity in the AFG Operations and Safety Grant application. However, many online NIMS training courses are available free of charge through the Emergency Management Institute.
Additional detailed information on NIMS can be obtained from the NIMS Resource Center on the FEMA website.

AFG Help Desk Support: If you have questions about the FY 2012 AFG application and NIMS, call the AFG Help Desk at 1-866-274-0960, or send an e-mail to firegrants@fema.dhs.gov."