[Congressional Record (Bound Edition), Volume 152 (2006), Part 13]
[Extensions of Remarks]
[Pages 18581-18582]
[From the U.S. Government Publishing Office, www.gpo.gov]




    ``FLOOD INSURANCE COMMUNITY OUTREACH GRANT PROGRAM ACT OF 2006''

                                 ______
                                 

                          HON. DORIS O. MATSUI

                             of california

                    in the house of representatives

                      Tuesday, September 19, 2006

  Ms. MATSUI. Mr. Speaker, one year after Hurricanes Katrina and Rita, 
it is clear that more needs to be done to protect and prepare 
homeowners from future catastrophic flooding. Which is why I have 
introduced the ``Flood Insurance Community Outreach Grant Program Act 
of 2006.'' The intent of this legislation is to increase the overall 
participation in the National Flood Insurance Program (NFIP) while 
moving the program toward long-term stability and solvency.
  My legislation will forge a stronger partnership between the federal 
government and local floodplain managers. It will: Create a grant 
program within FEMA to educate property owners about their flood risk 
and about the importance of flood insurance; and Funds this grant 
program at $50 million dollars annually over five years.
  People at risk of flooding need to know their options and our local 
floodplain managers are our best partners in this effort. To put it 
quite simply, with 20,000 participating communities in NFIP--one size 
does not fit all. Our local partners know the risks, they know the 
landscape and in many cases they know the people. They know how to 
reach out to the people in their flood plain.
  They can focus on the estimated 20 to 25 percent of property owners 
who have fallen through the cracks of our flood insurance system. 
People who are supposed to carry flood insurance, but do not carry it. 
Or use the money for an educational campaign directed towards people 
living in areas protected by levees, but not subject to the federal 
flood insurance requirement. Spreading the message: Levees can fail or 
overtop in severe weather. So it is common sense to carry flood 
insurance, even if the federal government no longer requires it.
  This program can work.
  Last year, with the support of a $162,000 FEMA grant, my local flood 
protection body, the Sacramento Area Flood Control Agency (SAFCA), 
conducted just such a flood insurance outreach initiative.
  SAFCA reached out to more than 45,000 National Flood Insurance 
Program (NFIP) policyholders in the American River floodplain. In 
February 2005, this densely populated region was released from the 
Federal flood insurance requirement.
  SAFCA's efforts yielded impressive results.
  More than one year after SAFCA conducted outreach, 74 percent of the 
45,000 NFIP policyholders who were removed from the Federal requirement 
had maintained their flood insurance protection.
  Of this group, 43 percent now carry Preferred Risk flood insurance. 
Preferred Risk Policies provide property owners, who have been released 
from the federal requirement, but remain at risk of flooding, with full 
flood insurance protection for about half the price of a Standard flood 
policy. Because of their lower cost, it is likely that these Preferred 
Risk Policies will result in a higher level of policy retention over 
time.
  Through this partnership with SAFCA, FEMA was able to retain a high 
number of flood insurance policies in the Sacramento region--a region 
that accounts for nearly 1 in 4 of all flood insurance policies in 
California.
  Increasing the number of people who carry and hold on to their flood 
insurance will only strengthen the National Flood Insurance Program. 
And as Katrina made painfully clear: We need a strong and functional 
program to be there for our constituents in times of crisis.

[[Page 18582]]

  While this grant program would be funded at $50 million annually and 
authorized for 5 years, I want to emphasize that this grant program has 
an excellent return on its investment.
  For FEMA to recoup its initial grant to SAFCA, 550 Preferred Risk 
Policies had to be sold to property owners who otherwise would have 
canceled their flood insurance. SAFCA accomplished this . . . more than 
20 times over.
  Because of the FEMA and SAFCA partnership, more than 35,000 property 
owners who did not have to carry flood insurance stayed in the federal 
flood insurance pool. What is more, nearly 13,000 policyholders in the 
American River floodplain switched to Preferred Risk Policies.
  In short, FEMA got its money's worth. And this says nothing of the 
Sacramento premiums that will continue to come into the Federal flood 
insurance pool each year these policyholders maintain their flood 
insurance.
  Again, most of these policyholders no longer have to buy flood 
insurance. They do so because it is the safe thing to do. Because SAFCA 
has alerted them to the ongoing flood risk in their community. And 
because they saw what happened on the Gulf Coast.
  If we can have this type of success in Sacramento, I am confident it 
can be replicated across the country.
  These local outreach efforts will augment and benefit FEMA's existing 
marketing program by targeting property owners who are most likely to 
leave the NFIP--those who have been or will be released from the 
Federal flood insurance requirement.
  The lesson learned here is that people whose houses, apartments and 
businesses are vulnerable to flooding are willing to enter and stay in 
the National Flood Insurance Program when they are informed of the risk 
they face and the options available to them.
  Let me be clear; I speak from experience. When it comes to flood 
risk, my district of Sacramento is the most at-risk river city in the 
Nation.
  My highest priority is to provide the city of Sacramento, my 
neighbors and my constituents with the best flood protection possible. 
We are making strides in strengthening and reinforcing the levees in 
Sacramento and making improvements to Folsom Dam--but whenever I talk 
about these efforts, I remind my constituents, ``If you live behind a 
levee, you should purchase flood insurance.''
  Finally, I am encouraged by the efforts we are making as a Nation to 
develop a comprehensive flood protection agenda.
  FEMA is in the process of implementing their Map Modernization 
Program that will update our Nation's flood maps.
  Additionally, the Army Corps of Engineers is conducting a national 
levee inventory. When completed, this inventory will provide 
communities with a greater understanding of their flooding 
vulnerabilities. It will also provide us with a good indication as a 
country as to what long-term investments need to be made toward our 
flood protection infrastructure.
  Both the FEMA Remapping Initiative and the levee inventory are 
important to the long-term safety and economic security of our country. 
The ``Flood Insurance Community Outreach Grant Program Act of 2006'' 
would be an excellent resource for communities to augment these 
initiatives.
  This bill is a step in the right direction in providing for 
comprehensive flood protection for property owners and communities. I 
urge my colleagues to support this important legislation.