[House Report 110-466]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-466
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LEVEE-LIKE STRUCTURE CONSIDERATION ACT OF 2007
_______
December 4, 2007.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Frank of Massachusetts, from the Committee on Financial Services,
submitted the following
R E P O R T
[To accompany H.R. 4050]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 4050) to require the Administrator of the
Federal Emergency Management Agency to issue guidance providing
a process for consideration of the flood protections afforded
by certain structures for purposes of the national flood
insurance program, having considered the same, report favorably
thereon without amendment and recommend that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
Performance Goals and Objectives................................. 4
New Budget Authority, Entitlement Authority, and Tax Expenditures 4
Committee Cost Estimate.......................................... 4
Congressional Budget Office Estimate............................. 4
Federal Mandates Statement....................................... 5
Advisory Committee Statement..................................... 5
Constitutional Authority Statement............................... 5
Applicability to Legislative Branch.............................. 6
Earmark Identification........................................... 6
Section-by-Section Analysis of the Legislation................... 6
PURPOSE AND SUMMARY
H.R. 4050, the Levee-Like Structure Consideration Act of
2007, provides for equity in the flood mapping process under
the National Flood Insurance Program (``NFIP''), administered
by the Federal Emergency Management Administration (``FEMA''),
by requiring FEMA to issue guidelines on levee-like structures
similar to the guidelines it has issued on levees.
BACKGROUND AND NEED FOR LEGISLATION
FEMA and the NFIP are currently engaged in a multi-year
flood map modernization. Instituted by Presidential initiative
and subsequently funded by Congress, the NFIP Flood Map
Modernization (``Map Mod'') initiative contributes to better
floodplain management, flood risk reduction, and improved
public safety. Before the Map Mod initiative, many of the flood
maps in use in the United States dated to the NFIP's inception
more than 30 years ago. As a result of changes in climate,
topography, watershed development, and technology many of the
existing flood maps do not accurately reflect the flood risk
both to properties required to participate in the NFIP and to
properties not currently required to participate in the NFIP.
The five-year, $1 billion dollar Map Mod initiative is intended
to update and reissue flood maps that more accurately identify
the risk of flood to properties that previously participated in
the NFIP, as well as to properties not previously required to
participate in the NFIP.
During the NFIP's history, some flood insurance rate maps
(``FIRMs'') have identified natural or manmade structures
including non-levee structures, expected to impact the
retention or flow of water during a flood. In 2005, after
questioning the protective value of non-levee structures, FEMA
decided to include only accredited levees on the updated,
digital FIRMs (``DFIRMs'') issued through the Map Mod process.
Consequently, there are levee-like structures that appear on
current FIRMs that are not included on updated DFIRMs, even
though those structures may have the effect of restraining or
diverting floodwaters.
To be an accredited levee, the levee owner must certify
that the structure meets certain levee-specific criteria. In
guidelines issued mid-way through the Map Mod initiative, FEMA
created a process for provisionally accrediting levees that
were previously recognized on FIRMs as having an impact on
flood risk and were likely to meet criteria deemed equivalent
to accreditation by the Corps of Engineers. Under this process,
called the Provisionally Accredited Levee (``PAL'') process, a
community can be granted up to 24 months to produce the
documentation necessary to certify a levee. During the 24-month
review period, a levee under review is designated as a PAL on
any DFIRM issued through the Map Mod process and affected areas
are not required to purchase flood insurance. In the meantime,
the rest of the community risk map, except for the PAL area,
becomes effective and is used to guide new development and is
used as a basis for flood insurance rates.
While the PAL guidelines provide a process by which
communities can be granted time to document that a levee has
been designed, built, operated, and maintained to provide an
adequate level of protection, the guidelines do not establish a
similar process to allow communities to provide documentation
for levee-like structures, even if those structures were shown
on previous FIRMs as having an impact on flood risk. Examples
of levee-like structures previously identified on FIRMs include
railroad berms, highway berms, and irrigation canals.
Currently, FEMA does not have a process to allow communities
with levee-like structures to offer evidence that previously-
recognized levee-like structures continue to impact flood risk.
Recently, FEMA acknowledged the inequity in its treatment of
levees and levee-like structures and began negotiations with
officials of a community with levee-like structures to allow
that community to present evidence of the levee-like
structures' protective value.
H.R. 4050 requires FEMA to issue guidelines that afford
communities with flood risk affected in whole or in part by a
levee-like structure that was previously recognized on a FIRM,
the opportunity to demonstrate the actual effect of that
structure on flood risk, and for such data to be incorporated
into DFIRMs issued through the Map Mod process. A community can
demonstrate the nature and extent of the flood protection
afforded by the structure or feature through scientific and
technical information compiled and submitted to FEMA at the
community's expense, consistent with the PAL process. The
Committee on Financial Services recognizes that in the course
of its remapping initiative, FEMA may wish to take into
consideration the ability of a community to finance scientific
and technical studies and provide financial assistance where
appropriate.
During the community's appeal, a two-year moratorium would
apply to prevent rate increases or an extension of the
mandatory purchase requirement based on the updated DFIRMs. The
purpose of H.R. 4050 is to ensure that DFIRMs portray the true
flood risk in a community with the greatest possible accuracy.
In so doing, H.R. 4050 contributes to the overall effort to
provide better risk identification data for flood risk
reduction and public safety.
HEARINGS
No hearings were held on this legislation in the 110th
Congress.
COMMITTEE CONSIDERATION
The Committee on Financial Services met in open session on
November 7, 2007, and ordered H.R. 4050, the Levee-Like
Structure Consideration Act of 2007, favorably reported to the
House by a voice vote.
COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. No
record votes were taken in conjunction with the consideration
of this legislation. A motion by Mr. Frank to report the bill
to the House with a favorable recommendation was agreed to by a
voice vote.
COMMITTEE OVERSIGHT FINDINGS
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee has held hearings and
made findings that are reflected in this report.
PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee establishes the
following performance related goals and objectives for this
legislation:
H.R. 4050, the Levee-Like Structure Consideration Act of
2007, requires FEMA to issue guidelines on levee-like
structures with the goal of providing a more accurate flood
mapping process and more accurate flood insurance rates paid by
homeowners.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
COMMITTEE COST ESTIMATE
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
November 20, 2007.
Hon. Barney Frank,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4050, the Levee-
Like Structure Consideration Act of 2007.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Daniel
Hoople.
Sincerely,
Peter R. Orszag.
Enclosure.
H.R. 4050--Levee-Like Structure Consideration Act of 2007
H.R. 4050 would direct the Federal Emergency Management
Agency (FEMA) to create a process to include certain levee-like
structures (including any natural or man-made structures that
provide some mitigating effect on flood risk but do not meet
the definition of a levee set forth by the agency) on updated
Flood Insurance Rate Maps (FIRMS). As a part of its current map
modernization efforts, FEMA only includes levees on updated
FIRMs. Because FEMA uses the maps to determine the premium
rates for flood insurance, including levee-like structures
could affect direct spending; however, CBO estimates that the
net effect would be insignificant over the next 10 years.
Enacting the bill would not affect revenues.
H.R. 4050 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
Under the process established by the bill, a community
participating in the National Flood Insurance Program (NFIP)
could request that an updated flood map include a levee-like
structure if the corresponding map in effect on January 2003
also included the structure. Following such a request, the bill
would require that FEMA grant provisional accreditation to the
structure for a two-year period and issue an updated flood map
recognizing the designation. During this time period, the NFIP
would charge its policyholders in the affected area a premium
for flood insurance that takes into account the amount of flood
protection previously attributed to the levee-like structure.
Depending on the final determination of FEMA, such structure
may or may not be included on any final flood map issued after
the two-year period.
CBO estimates that this legislation would likely reduce net
income to the flood insurance program. Including levee-like
structures on flood maps would lower premium rates for owners
of property located near those structures due to a lower
estimate of flood risk. Lower rates would decrease receipts to
the program, while actual claims would be unaffected--resulting
in a net loss to the flood insurance program relative to
current law. CBO does not have sufficient information to
estimate the number of levee-like structures that would be
included in updated FIRMs, and thus cannot estimate the
possible magnitude of such premium losses.
However, CBO estimates that the net effect of any such
changes on net outlays of the NFIP would be insignificant over
the 2008-2017 period because of the current financial
conditions of the flood insurance program. The NFIP may only
use premium income and borrowing authority to cover its
expenses. The borrowing authority will probably be exhausted in
the next few years, and the premium income is not sufficient to
cover all likely new claims. Thus, any net loss to the program
over the next 10 years would result in a larger backlog of
claims relative to current law but would have no net effect on
spending over this period.
The CBO staff contact for this estimate is Daniel Hoople.
This estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
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.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
CONSTITUTIONAL AUTHORITY STATEMENT
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional Authority of Congress to enact this legislation
is provided by Article 1, section 8, clause 1 (relating to the
general welfare of the United States) and clause 3 (relating to
the power to regulate interstate commerce).
APPLICABILITY TO 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.
EARMARK IDENTIFICATION
H.R. 4050 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
This section establishes the short title of the bill, the
``Levee-Like Structure Consideration Act of 2007.''
Section 2. Consideration of structures not certifiable as levees in
flood insurance mapping
This section requires FEMA to issue and make effective
notice of guidelines on levee-like structures within 90 days of
enactment of the bill. This section also provides that
insurance requirements and rates shall remain unchanged for 24
months while the flood risk impact of a levee-like structure is
reviewed.