[House Report 109-364]
[From the U.S. Government Publishing Office]
109th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 109-364
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GULF COAST RECOVERY ACT OF 2005
_______
December 22, 2005.--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. 4438]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 4438) to establish special rules
with respect to certain disaster assistance provided for
Hurricane Katrina and Hurricane Rita, 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. 4438 is to establish special rules with
respect to certain disaster assistance provided for Hurricanes
Katrina and Rita to ensure an effective and expeditious
recovery of the Gulf region.
Background and Need for the Legislation
On August 23rd, the National Weather Service began tracking
a tropical depression centered in the Southeastern Bahamas. On
August 24th, Tropical Depression #12 became Tropical Storm
Katrina, with sustained winds above 40 miles per hour (mph).
Hurricane strength of Category 1 was achieved on August 25th as
Hurricane Katrina (Katrina) sustained winds over 75 mph.
Once the storm reached the Gulf of Mexico, Hurricane
Katrina intensified and sped up, achieving Category 3 status
(sustained wind speeds exceeding 111 mph) on August 26th. On
August 28th, one day before landfall on the Gulf Coast, Katrina
became a Category 5 hurricane, with wind speeds in excess of
150 mph. As the storm moved into shallower waters closer to
land, wind speeds decreased and Katrina was downgraded to a
Category 4 hurricane.
Katrina eventually made landfall in Southeastern Louisiana
with sustained winds over 140 mph at the eye of the storm, and
wind gusts over 100 mph in the city of New Orleans, just west
of the eye of the storm. Katrina also resulted in rainfall
exceeding 8-10 inches over much of the storm's path. Direct
storm damage was felt in Louisiana, Mississippi, Alabama,
Georgia, Florida, and Tennessee, though Louisiana and
Mississippi received the brunt of the storm.
When Hurricane Katrina finally dissipated over Tennessee,
it left in its wake catastrophic devastation. Covering an area
estimated to be near 90,000 square miles, the storm ravaged
four states, caused damage in surrounding states, and impacted
the entire country.
While neither the most powerful, nor most deadly storm to
hit the United States, its combined wind speed, storm surge,
flooding effect, and deadliness make it one of the worst
natural disasters in American history. The impact of Katrina on
human life was immense. The storm caused the deaths of over
1,300 people, the overwhelming majority of whom were in
Louisiana and Mississippi, with known deaths also in Florida,
Alabama, Georgia and Tennessee.
Katrina caused flooding in 6 states, mostly from storm
surge and the high rate of rainfall. However, in Louisiana, the
worst flooding was in the New Orleans area, caused by the
breaching of a number of levees. At least 80 percent of the
City of New Orleans was at some point underwater, though the
flooding ranged from as little as one or two feet in areas such
as the French Quarter to over 20feet in the Lower Ninth Ward.
Portions of Mississippi and Mobile, Alabama were underwater as a result
of a 20 to 30-foot storm surge from the Gulf of Mexico and Mobile Bay.
While just three weeks after Katrina, many of the breaks in the levees
surrounding New Orleans had been repaired and much of the city had been
drained, several of the temporary repairs were damaged or destroyed by
Hurricane Rita, again causing flooding in New Orleans.
The economic impact from Hurricane Katrina and Hurricane
Rita on the Gulf region has been substantial. Flooding and
storm surge damaged hundreds of thousands of homes, leaving
many people homeless. Additionally, the disaster displaced
thousands of employers, leaving a significant number of people
unemployed. With the displacement of hundreds of thousands of
people, many parishes, counties, cities, and towns have lost
their resident tax base, including property and sales taxes,
which are typically the primary source of revenue for local
governments. While some state and local governments had
maintained emergency reserves, these funds have largely been
depleted, forcing widespread layoffs of municipal employees.
A successful recovery requires the provision of essential
governmental services. For most governments in the affected
region, this will mean the need for more manpower than has
existed since the storm and in some circumstances, more than
what existed prior to the storm. With depleted reserve
resources and limited tax revenue, local governments are
struggling to provide the level of governmental services
required to recover from the hurricanes.
Section-by-Section of the Legislation
Section 1. This section provides that the short title for
the legislation is the Gulf Coast Recovery Act of 2005.
Section 2. Section 2 authorizes the president to provide
federal assistance under Sections 402 and 403 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5170a; 5170b) (Stafford Act) to eligible state and local
governments for base and overtime pay for essential recovery
personnel.
Eligibility is determined by a showing of loss exceeding 25
percent of annual operating revenue of the state or local
government, no later than June 30, 2006. To determine
eligibility, FEMA must look at the most recent full fiscal year
prior to the date of the disaster declarations made for
Hurricane Katrina and Hurricane Rita on or after August 29,
2005. Losses attributable to Hurricanes Katrina and Rita
through June 30, 2006 must equal or exceed 25 percent of that
prior full fiscal year's operating revenue.
After eligibility is determined, reimbursement may be made
for base pay and overtime expenses incurred from January 1,
2006, through June 30, 2006. Assistance is provided on a 75/25
Federal/non-Federal basis. This section is not intended to
alter the cost share for expenses, including overtime expenses,
otherwise eligible for reimbursement under the Stafford Act.
Under this section, state and local governments are
eligible for assistance in providing fire, law enforcement,
emergency medical, public works, emergency management,
planning, and building code services. State and local
governments may provide these services directly, or by contract
or mutual aid agreement. It is the Committee's expectation that
``building code services'' includes staff involved in the
permitting and the inspection process, including the
enforcement of a building code, regulation, or ordinance
pertaining to construction, development, or floodplain
management.
Section 3. This section amends Section 2(a) of Public law
109-88, the Community Disaster Loan Act of 2005 to raise the
cap on Community Disaster Loans from 25 percent to 50 percent
of the operating budget of the applicant. This provision will
allow some local communities to borrow additional funds to
support basic government activities.
Section 4. This section sets the federal assistance for
debris removal at 100 percent for disaster declarations made
for Hurricanes Katrina and Rita on or after August 29, 2005, to
eliminate the current disincentive for local governments to
utilize cost-effective, pre-existing debris removal contracts.
The two hurricanes caused significant amounts of debris
across the region, including downed trees, damaged cars, and
construction materials. Under the Stafford Act, debris removal
assistance may be provided for all public property and some
private property in areas designated by the disaster
declaration. Following the disaster declarations, the president
authorized 100 percent federal assistance for debris removal
for the first 30 days, followed by a series of extensions. The
level of assistance is uncertain for future federal debris
removal beyond the current extensions.
Local governments have three options for the removal of
debris following a disaster declaration; remove the debris
using their own resources, contract for removal with the
private sector, or contract with the U.S. Army Corp of
Engineers (USACE) for debris removal. FEMA reimburses the local
government at the designated rate regardless of who carries out
the work.
However, the federal cost share may vary depending upon who
conducts the work. For example, when the work is performed by
the local government or by private contractors, the federal
cost share is determined at the time the cost is incurred. This
means the local cost share may increase if the president
reduces the federal share at a later point in the disaster. In
contrast, if the work is carriedout by the USACE, the federal
share is determined at the time the contract is signed. This policy
creates a strong incentive for local governments to contract with the
USACE early in the disaster when the federal share is set at 100
percent to guarantee their cost share.
Given the potential for the president to lower the federal
share from 100 percent to 75 percent, local governments have a
strong financial incentive to contract with the USACE even if
the Corps' price is substantially higher than their local
contractors. Due to this loophole in FEMA policy, local
governments are canceling cost-effective, pre-existing
contracts with private contractors and contracting with the
USACE to guarantee the 100 percent federal assistance. As a
result, local and private contractor involvement is limited,
increasing the total cost to the federal government.
This section requires a 100 percent cost share for the life
of the disaster, which will allow local governments to choose
the most cost-effective means of debris removal, regardless of
who provides the work.
Section 5. Section 5 modifies the federal share for the
Hazard Mitigation Grant Program (HMGP) with respect to disaster
declarations for Hurricanes Katrina and Rita made on or after
August 29, 2005. The federal cost share for HMGP projects is
set at a minimum of 75 percent for those measures approved
within a one-year period from the date of enactment. This
provision provides the president with the discretion to adjust
the federal share up to 100 percent, but prohibits the federal
cost share from falling below 75 percent. It is the Committee's
expectation that the president will utilize this authority to
waive the state and local cost share requirements to ensure
that, to the greatest extent practicable, cost-effective
mitigation projects are incorporated into the initial
rebuilding of Gulf Coast communities.
This section also urges the president to assist the state
and local governments in the HMGP program, from initial
planning stages through final project approval, and expedite
the process.
Additionally, Section 5(b) amends Section 404(a) of the
Stafford Act to restore the Hazard Mitigation Grant Program
percentage from 7.5 percent to its historic level of 15
percent. This provision was included in H.R. 3181 and was
approved by the House of Representatives during the 108th
Congress.
The Committee encourages FEMA to include ``demolition and
rebuild'' among mitigation activities eligible under the
mitigation grant programs authorized by the Stafford Act,
particularly with respect to assistance provided pursuant to
disaster declarations made for Hurricane Katrina or Hurricane
Rita on or after August 29, 2005. Demolition and rebuild should
be an eligible activity only when it is necessary to meet a
community's overall goals, when it encourages safe and livable
housing, and when it is determined to be feasible and cost-
effective. The Committee expects FEMA to provide guidance to
the field within 90 days of enactment for ``demolition and
rebuild'' project implementation. The Committee recognizes that
some flood hazard areas, such as floodways, pose significant
risks to residential structures and expects the guidance to
avoid use of ``demolish and rebuild'' in such high risk areas.
U.S. 90 in Mississippi was severely damaged by Hurricane
Katrina. The St. Louis Bay and Biloxi Bay bridges of U.S. 90
were destroyed by the hurricane. U.S. 90 is a Federal-aid
highway eligible for Emergency Relief (ER) funding under
section 125 of Title 23, United States Code. Under the
Emergency Relief program, where a temporary structure or an
alternate existing route is not reasonable or practical as a
temporary connection, construction of a temporary ferry service
(ferryboat, ferry operation and maintenance, docking and
loading facilities) is eligible for ER funds. ER participation
in the ferryboat is limited to acquisition costs, less resale
value, or to a reasonable rental fee. Emergency Relief Manual
(August 2003), Chapter 2, section (B)(2). The Committee
understands that Mississippi may need to use Emergency Relief
funds to institute a temporary ferry service until the
destroyed U.S. 90 bridges are replaced. The Committee strongly
supports the use of ER funds to institute such a ferry service.
Section 6. This section extends the Disaster Unemployment
Assistance (``DUA'') Program with respect to disaster
declarations for Hurricane Katrina and Hurricane Rita made on
or after August 29, 2005, to 52 weeks after the date of the
disaster declaration. The section also sets the minimum level
of assistance for individuals at not less than 50 percent of
the national average of weekly unemployment benefits.
Section 7. This section amends the Stafford Act by adding
Section 630. Section 630 creates an emergency equipment grant
program under the direction of the Director of the Federal
Emergency Management Agency (FEMA) to improve response
capabilities of states and local governments in the event of a
major disaster or other emergency. The grant program is
intended to provide grants to state and local governments for
the purchase or improvement of emergency communications systems
to facilitate interoperability and better coordination between
emergency communication systems, including satellite phones and
satellite communication equipment. Grants through this program
are also available to purchase mobile equipment to generate
emergency power and train first responders and emergency
personnel on the communication and mobile power equipment.
Technical assistance related to the procurement, installation
and use of this equipment is also allowable as needed by the
state and local governments. The program is authorized to be
appropriated $200,000,000 for fiscal years 2006, 2007, and
2008.
Legislative History and Committee Consideration
The Subcommittee on Economic Development, Public Buildings,
and Emergency Management held a series of hearings in
connection with Hurricane Katrina. These hearings focused on
the many different aspects of the response and recovery of the
Gulf region. On October 6, 2005, the Subcommittee held an
oversight hearing to examine FEMA's ability to manage a
successful recovery of the region. On October 18, the
Subcommittee held a joint hearing with the Subcommittee on
Water Resources and Environment on options for and the
feasibility of rebuilding New Orleans. On November 3, the
Subcommittee held a hearing to consider legislative proposals
relating to Hurricane Katrina recovery operations.
On December 6, 2005, Mr. Shuster, Ms. Norton, Mr. Young of
Alaska, and Mr. Oberstar introduced H.R. 4438, which was
referred to the Committee on Transportation and Infrastructure.
On December 7, 2005, the Full Committee met in open session to
consider H.R. 4438. A motion by Mr. Shuster to order H.R. 4438
favorably reported to the House was agreed to by the Full
Committee by voice vote with a quorum present. There were no
recorded votes taken during Committee consideration of H.R.
4438.
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 connection with ordering H.R.
4438 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(d)(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 not been received. The Congressional Budget Office has
informed the Committee that it expects H.R. 4438 will result in
an increase in direct spending by $465,000,000 for the fiscal
year 2006. Spending will decrease by a total of $465,000,000
over the three year period of 2013, 2014, and 2015, producing
no net increase in funding over the next ten years.
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
provide a successful, safe, efficient, and timely recovery for
the Gulf Region.
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 expects H.R. 4438 will result in an increase in
direct spending by $465,000,000 for the fiscal year 2006.
Spending will decrease by a total of $465,000,000 over the
three year period of 2013, 2014, and 2015, producing no net
increase in funding over the next ten years.
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. 4438 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):
SECTION 2 OF THE COMMUNITY DISASTER LOAN ACT OF 2005
SEC. 2. DISASTER LOANS.
(a) Essential Services.--Of the amounts provided in Public
Law 109-62 for ``Disaster Relief'', up to $750,000,000 may be
transferred to the Disaster Assistance Direct Loan Program for
the cost of direct loans as authorized under section 417 of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5184) to be used to assist local governments in
providing essential services: Provided, That such transfer may
be made to subsidize gross obligations for the principal amount
of direct loans not to exceed $1,000,000,000 under section 417
of the Stafford Act: Provided further, That notwithstanding
section 417(b) of the Stafford Act, the amount of any such loan
issued pursuant to this section may exceed $5,000,000: Provided
further, That notwithstanding section 417(c)(1) of the Stafford
Act, such loans may not be canceled: Provided further, That the
cost of modifying such loans shall be as defined in section 502
of the Congressional Budget Act of 1974 (2 U.S.C. 661a):
Provided further, That notwithstanding section 417(b) of the
Stafford Act such a loan may not exceed 50 percent of the
operating budget of the local government to which the loan is
made for the fiscal year in which the disaster occurs.
* * * * * * *
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ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT
* * * * * * *
TITLE IV--MAJOR DISASTER ASSISTANCE PROGRAMS
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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.
* * * * * * *
TITLE VI--EMERGENCY PREPAREDNESS
* * * * * * *
Subtitle B--General Provisions
* * * * * * *
SEC. 630. EMERGENCY EQUIPMENT ASSISTANCE.
(a) Grants.--The Director shall carry out a program to make
grants to States and local governments--
(1) to purchase or improve commercially available
interoperable communications equipment that--
(A) complies with, where applicable, national
voluntary consensus standards;
(B) facilitates interoperability,
coordination, and integration between and among
emergency communications systems (including
satellite phone and satellite communications
equipment); and
(C) ensures that first responders, government
officials, and emergency personnel are able to
adequately and effectively communicate with
each other in the event of a major disaster or
other emergency;
(2) to purchase mobile equipment to generate
emergency power; and
(3) to train first responders and emergency personnel
on how best to use effectively such equipment.
(b) Purpose.--The purpose of the program shall be to improve
the response capabilities of States and local governments in
the event of a major disaster or other emergency.
(c) Applications.--A State or local government seeking a
grant under this section shall submit an application to the
Director at such time, in such manner, and accompanied by such
information as the Director may require.
(d) Technical Assistance.--The Director shall provide to
States and local governments technical assistance with respect
to the procurement, installation, and use of equipment under
subsection (a)(1).
(e) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $200,000,000 for each
of fiscal years 2006, 2007, and 2008.
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