[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.

                                
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