[House Report 108-340]
[From the U.S. Government Publishing Office]
108th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 108-340
======================================================================
PREDISASTER MITIGATION PROGRAM REAUTHORIZATION ACT OF 2003
_______
November 4, 2003.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Young of Alaska, from the Committee on Transportation and
Infrastructure, submitted the following
R E P O R T
[To accompany H.R. 3181]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 3181) to amend the Robert T.
Stafford Disaster Relief and Emergency Assistance Act to
reauthorize the predisaster mitigation program, and for other
purposes, having considered the same, report favorably thereon
without amendment and recommend that the bill do pass.
Purpose of the Legislation
The purpose of H.R. 3181, the Predisaster Mitigation
Program Reauthorization Act of 2003, is to reauthorize the
Predisaster Mitigation Program (PDM) for three years; increase
the percentage of Hazard Mitigation Grant Program (HMGP) funds
to 15%; allow the President to offer additional home repair
assistance to disaster victims; and require the completion,
within 2 years of a Congressional Budget Office (CBO) study of
the cost-effectiveness of the program.
Background and Need for the Legislation
At its inception, the Federal Emergency Management Agency
was created to consolidate and coordinate the efforts of over
15 different agencies and departments that were responsible for
responding to and preparing for disasters. Created by President
Carter through Executive Order 12148 in 1979, FEMA was tasked
with carrying out the authorities contained in the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. Sec. 5121 et. seq., as amended) (Stafford Act), which is
an amalgamation of previous disaster acts, including the
National Flood Insurance Act of 1968, the Disaster Relief Acts
of 1970 and 1974, the Flood Disaster Protection Act of 1973,
and the Federal Fire Prevention and Control Act of 1974.
In 2002, the authorities contained in the Stafford Act, as
well as the personnel and assets of FEMA were incorporated into
the newly created Department of Homeland Security (DHS) as a
part of the reorganization of the federal government mandated
by the Homeland Security Act of 2002 (P.L. 107-296). As a part
of this reorganization, FEMA was merged with 21 other
departments and agencies; however, an amendment to the
legislation required that the new department retain the
statutory mission of FEMA.
The Homeland Security Act of 2002 transferred all of the
statutory functions under the Stafford Act from the Director of
FEMA to the Secretary of DHS. However, these functions have
been delegated to the Undersecretary for Emergency Preparedness
and Response (EP&R). The Emergency Preparedness and Response
Directorate within DHS contains most of the functions that were
previously housed within FEMA, and includes some new
authorities that were previously held by other Departments.
Additionally, other offices within DHS now administer some
programs previously administered by FEMA.
Since 1976 there have been nearly 1,000 presidential
disaster declarations in the United States and the Insular
Territories. These disasters have been caused by every natural
disaster imaginable, from wildfires on the west coast,
snowstorms on the east coast, flooding in the Midwest,
earthquakes in Alaska, tsunamis in the Pacific, and hurricanes
in the Atlantic. These storms have caused hundreds of billions
of dollars in damages and taken an untold numbers of lives.
Between 1980 and 2000, the estimated cost of natural
disasters has increased dramatically. In 1990, the estimated
cost (in 1994 dollars) of hurricane damage was $16.5 billion;
by the year 2000, the estimated cost of hurricanes was $35
billion. Similarly, the cost to the federal government
increased over this same time period, though the government's
cost increase has been much more dramatic. From 1979 until
1989, total obligations from the Disaster Relief Fund (DRF)
were $4 billion; from 1989 until 1999, that number increased to
$21 billion. Prior to 1989 only one disaster event (Hurricane
Agnes in 1972) cost over $500 million; since 1989, every year,
except 1991, has had at least one disaster event costing more
than $500 million in federal assistance.
The Stafford Act establishes the basis for federal
assistance to state and local governments impacted by a
significant disaster or emergency. EP&R is primarily
responsible for administering such assistance. The Stafford Act
not only provides funding for post-disaster recovery, but it
also provides funding for cost-effective hazard mitigation
projects. Hazard mitigation includes any action taken to reduce
or eliminate the risk to people and property from hazards and
their effects before the disaster occurs. Examples of
mitigation activities include the seismic strengthening of
buildings and infrastructure, construction of levees,
relocation of buildings out of floodplains, installing shutters
and shatter resistant windows in hurricane-prone areas, and
building ``safe rooms'' in houses and other buildings to
protect against high winds.
HAZARD MITIGATION GRANT PROGRAM
Section 404 of the Stafford Act--also known as Hazard
Mitigation Grant Program (HMGP)--authorizes the President to
contribute ``up to 75 percent of the cost of hazard mitigation
measures * * * which substantially reduce the risk of future
damage, hardship, loss, or suffering in any area affected by a
major disaster.'' The total amount of Federal spending under
the HMGP is limited to 15 percent of the aggregate amount of
federal assistance grants made under the Stafford Act with
respect to a specific disaster in a specific area. Thus, after
a disaster is declared and an area receives federal recovery
assistance, the disaster area is also eligible to receive an
additional 15 percent in federal funding to be used for hazard
mitigation projects. This amount was reduced to 7.5 percent in
the Consolidated Appropriations Resolution FY2003 (P.L. 108-7).
FEMA has subsequently interpreted this section to allow the
funding of mitigation projects in any part of the state in
which the disaster occurred. State or local governments must
pay at least 25 percent of the cost of any mitigation project
funded under the HMGP.
PREDISASTER MITIGATION PROGRAM
During the 106th Congress, FEMA underwent a comprehensive
reauthorization. The Disaster Mitigation Act of 2000 (P.L. 106-
390) implemented a number of cost-savings and streamlining
provisions that were intended to increase predisaster hazard
mitigation activities and reduce the cost of providing post-
disaster assistance. To achieve this, P.L. 106-390 created a
pilot predisaster hazard mitigation program that was to last
for three years and authorized $105 million for the program in
the first two years and then from available funds through
Section 404. This program allowed for the distribution of
grants to states to carry out approved disaster mitigation
plans. These plans would be created to identify areas in which
assistance could be used to reduce the vulnerability from
future disasters.
Prior to the creation of this pilot program, such disaster
mitigation funds were only available to states in the immediate
aftermath of a disaster declaration in the form of HMGP funds.
However, due to the delayed implementation of the PDM program,
there is very little data on how the program has been used, how
effective it has been, and to what extent the program has
achieved key goals, including saving money on disasters.
Studies
In order that the nation's emergency personnel are
adequately prepared to respond to any disaster, the Committee
requests that the Department, in conjunction with the
University of Akron, conduct a feasibility study on the Ravenna
Arsenal in Ravenna, Ohio to determine its adequacy to serve as
a facility for all-hazards training. Such a study should be
completed at the earliest possible time, but the findings
should be reported to the Committee not later than January 31,
2004.
In order that the nation's emergency personnel are
adequately equipped to respond to any disaster, the Committee
requests that the Department conduct a feasibility study on
MidAmerica Airport, in Mascoutah, Illinois to determine its
adequacy to serve as a terminal logistics center. Such a study
should be completed at the earliest possible time, but the
findings should be reported to the Committee not later than
January 31, 2004.
Summary of the Legislation
SECTION 1: SHORT TITLE
This section designates the legislation as the
``Predisaster Mitigation Program Reauthorization Act of 2003''.
SECTION 2: PREDISASTER HAZARD MITIGATION
This section amends Section 203(m) of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5133(m)) to reauthorize the Predisaster Mitigation
Program for an additional three years. The underlying statute
authorizes such sums as may be necessary for the program.
SECTION 3: HAZARD MITIGATION
This section amends Section 404(a) of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5170c(a)) by striking ``7.5'' and inserting ``15'' as
the percentage of assistance available to states following a
disaster. This section also makes this provision retroactive to
apply to all disasters declared by the President after
September 30, 2002.
The Consolidated Appropriations Resolution for FY 2003,
passed by the Congress in January of 2003, changed this
provision; though the authorizing committees of the House of
Representatives and the Senate were never given an opportunity
to consider the matter. This provision restores the percentage
to the level in effect prior to passage of that resolution.
SECTION 4: REPAIR ASSISTANCE TO INDIVIDUALS AND HOUSEHOLDS
This section amends Section 408(c)(2) of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5174(c)(2)) to make additional assistance available for
home repair. Currently the amount of home repair assistance is
capped at $5,000. This section would designate this amount as
``initial assistance'' and authorizes the President to offer
additional assistance to an individual or household unable to
complete repairs using insurance, loans or other financial
assistance from the Small Business Administration.
This provision is effective upon enactment.
SECTION 5: STUDY REGARDING COST REDUCTION
This section amends Section 209 of the Disaster Mitigation
Act of 2000 (42 U.S.C. 5121 note; 114 Stat. 1571) to extend the
deadline for completion of a study by the Congressional Budget
Office (CBO) until September 30, 2005. This study was
originally due by September 30, 2003, but due to the delayed
implementation of the Predisaster Mitigation Program, was not
able to be completed for lack of information.
Legislative History and Committee Consideration
The Subcommittee on Economic Development, Public Buildings
and Emergency Management met on Wednesday, September 24, 2003
to receive testimony on Emergency Preparedness Issues,
including Reauthorization of the Predisaster Mitigation
Program. The Subcommittee received testimony from the
Department of Homeland Security, Association of State
Floodplain Managers, and the American Public Works Association.
On September 24, 2003, the Subcommittee met in open session
and considered draft legislation to reauthorize the predisaster
mitigation program, and for other purposes. On a motion by Mrs.
Norton, the draft bill was ordered favorably reported to the
Full Committee, by voice vote, with a quorum present. Mr.
LaTourette and Mrs. Norton introduced H.R. 3181 on September
25, 2003, a bill identical to the draft considered by the
Subcommittee.
On October 1, 2003, the Full Committee considered H.R.
3181. A motion by Mr. LaTourette, to order H.R. 3181 favorably
reported to the House was agreed to by the Full Committee
unanimously, by voice vote, with a quorum present. There were
no recorded votes taken during Committee consideration of H.R.
3181.
Rollcall Votes
Clause 3(b) of rule XIII of the House of Representatives
requires each committee report to include the total number of
votes cast for and against on each rollcall vote on a motion to
report and on any amendment offered to the measure or matter,
and the names of those members voting for and against. There
were no rollcall votes taken in ordering H.R. 3181 favorably
reported to the House.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
Cost of Legislation
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Compliance With House Rule XIII
1. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
308(a) of the Congressional Budget Act of 1974, the Committee
references the report of the Congressional Budget Office
included below.
2. With respect to the requirement of clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, the
performance goals and objective of this legislation are to
reduce the cost of disaster relief efforts by promoting cost
effective disaster mitigation, provide for additional home
repair assistance, increase the percentage of HMGP funds
available following a disaster, and study the cost savings
produced from predisaster mitigation efforts.
3. With respect to the requirement of clause 3(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R.
3181 from the Director of the Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, October 21, 2003.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3181, the
Predisaster Mitigation Program Reauthorization Act of 2003. If
you wish further details on this estimate, we will be pleased
to provide them. The CBO staff contact is Lanette J. Walker.
Sincerely,
Douglas Holtz-Eakin,
Director.
Enclosure.
H.R. 3181--Predisaster Mitigation Program Reauthorization Act of 2003
Summary: H.R. 3181 would authorize the Federal Emergency
Management Agency (FEMA), within the Department of Homeland
Security, to provide grants to states and localities for
predisaster mitigation programs such as constructing levies,
relocating homes from flood plains, and retrofitting buildings
in earthquake areas. Under current law, authority for this
program expires on December 31, 2003. The bill would extend the
authorization for the predisaster mitigation program until
September 30, 2006. CBO estimates that implementing H.R. 3181
would cost $280 million over the 2004-2008 period, assuming
appropriation of the necessary amounts. Enacting H.R. 3181
would have no impact on direct spending or revenues.
H.R. 3181 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would benefit state, local, and tribal governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 3181 is shown in the following table.
The costs of this legislation fall within budget function 450
(community and regional development).
------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------
2003 2004 2005 2006 2007 2008
------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending under current law for
predisaster mitigation
grants:
Budget authority \1\...... 150 150 0 0 0 0
Estimated outlays......... 30 75 90 75 30 0
Proposed changes:
Estimated authorization 0 0 154 158 0 0
level....................
Estimated outlays......... 0 0 31 78 93 78
Spending under H.R. 3181 for
predisaster mitigation
grants:
Estimated authorization 150 150 154 158 0 0
level \1\................
Estimated outlays......... 30 75 121 153 123 78
------------------------------------------------------------------------
\1\ The 2003 and 2004 levels are the amounts appropriated for those
years.
Basis of estimate: FEMA is authorized to provide
predisaster mitigation grants to states and localities to help
prevent damage in areas frequented by disasters until December
2003. H.R. 3181 would extend this authority until September 30,
2006. CBO estimates that extension would cost $280 million over
the five-year period, subject to appropriation of the necessary
amounts. This estimate assumes that appropriations for 2005 and
2005 would be equivalent to the amounts appropriated for 2004,
adjusted for anticipated inflation. (The 2004 appropriation for
disaster mitigation grants was $150 million.) CBO's estimate of
spending is based on historical spending patterns for such
grants. Mitigation grants could reduce the severity of damages
causes by future natural disasters and thus could affect the
amount and timing of spending for disaster assistance. CBO has
no basis, however, to estimate any significant change in the
need for disaster assistance over the next several years due to
the reauthorization of disaster mitigation grants.
Intergovernmental and private-sector impact: H.R. 3181
contains no intergovernmental or private-sector mandates as
defined in UMRA and would benefit state, local, and tribal
governments. It would reauthorize grants for disaster
mitigation, and any cost to those governments would be incurred
voluntarily as conditions of federal aid.
Estimate prepared by: Federal Costs: Lanette J. Walker.
Impact on State, Local, and Tribal Governments: Melissa
Merrell. Impact on the Private Sector: Jean Talarico.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Constitutional Authority Statement
Pursuant to clause (3)(d)(1) of rule XIII of the Rules of
the House of Representatives, committee reports on a bill or
joint resolution of a public character shall include a
statement citing the specific powers granted to the Congress in
the Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.
Federal Mandates Statement
The Committee adopts as its own the estimate of federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act. (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local or
tribal law. The Committee states that H.R. 3181 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act. (Public Law
104-1).
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT
* * * * * * *
TITLE II--DISASTER PREPAREDNESS AND MITIGATION ASSISTANCE
* * * * * * *
SEC. 203. PREDISASTER HAZARD MITIGATION.
(a) * * *
* * * * * * *
(m) Termination of Authority.--The authority provided by this
section terminates [December 31, 2003] September 30, 2006.
* * * * * * *
TITLE IV--MAJOR DISASTER ASSISTANCE PROGRAMS
* * * * * * *
SEC. 404. HAZARD MITIGATION.
(a) In General.--The President may contribute up to 75
percent of the cost of hazard mitigation measures which the
President has determined are cost-effective and which
substantially reduce the risk of future damage, hardship, loss,
or suffering in any area affected by a major disaster. Such
measures shall be identified following the evaluation of
natural hazards under section 322 and shall be subject to
approval by the President. Subject to section 322, the total of
contributions under this section for a major disaster shall not
exceed [7.5] 15 percent of the estimated aggregate amount of
grants to be made (less any associated administrative costs)
under this Act with respect to the major disaster.
* * * * * * *
SEC. 408. FEDERAL ASSISTANCE TO INDIVIDUALS AND HOUSEHOLDS.
(a) * * *
* * * * * * *
(c) Types of Housing Assistance.--
(1) * * *
(2) Repairs.--
(A) * * *
(B) Relationship to other assistance.--A
recipient of initial assistance provided under
this paragraph shall not be required to show
that the assistance can be met through other
means, except insurance proceeds.
(C) Maximum amount of initial assistance.--
The amount of initial assistance provided to a
household under this paragraph shall not exceed
$5,000, as adjusted annually to reflect changes
in the Consumer Price Index for All Urban
Consumers published by the Department of Labor.
(D) Additional assistance.--Subject to the
limitation contained in subsection (h), the
President may provide additional repair
assistance under this paragraph to an
individual or household that is unable to
complete the repairs described in subparagraph
(A) using insurance proceeds, loans, or other
financial assistance, including assistance from
the Small Business Administration.
* * * * * * *
----------
SECTION 209 OF THE DISASTER MITIGATION ACT OF 2000
SEC. 209. STUDY REGARDING COST REDUCTION.
Not later than [3 years after the date of the enactment of
this Act] September 30, 2005, the Director of the Congressional
Budget Office shall complete a study estimating the reduction
in Federal disaster assistance that has resulted and is likely
to result from the enactment of this Act.