[House Report 110-725]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-725

======================================================================



 
                  PRE-DISASTER MITIGATION ACT OF 2008

                                _______
                                

 June 19, 2008.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Oberstar, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 6109]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 6109) to amend the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act to 
reauthorize the pre-disaster hazard 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

    H.R. 6109, the ``Pre-Disaster Mitigation Act of 2008'', 
reauthorizes the Pre-Disaster Mitigation (``PDM'') program for 
three years, at a level of $250 million for each of fiscal 
years 2009 through 2011. The bill increases the minimum amount 
that each State can receive under the program from $500,000 to 
$575,000, and codifies the competitive selection process of the 
program as currently administered by the Federal Emergency 
Management Agency (``FEMA'').

                  Background and Need for Legislation

    In the 1990s, under the leadership of FEMA Administrator 
James Lee Witt, FEMA developed a pre-disaster mitigation pilot 
program known as ``Project Impact''. Congress appropriated 
funds for Project Impact in each of fiscal years 1997 through 
2001. The Pre-Disaster Mitigation program is the successor to 
the Project Impact pilot program.
    The PDM program was first authorized in the Disaster 
Mitigation Act of 2000 (P.L. 106-390).\1\ The program is 
administered by FEMA through its Mitigation Division. It is 
authorized under section 203 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (``Stafford Act'').\2\ 
Pursuant to section 203(m) of the Stafford Act, the PDM program 
terminates on September 30, 2008, unless Congress reauthorizes 
the program.\3\
---------------------------------------------------------------------------
    \1\Section 102 of P.L. 106-390.
    \2\42 U.S.C. 5133.
    \3\Section 203(m) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act; 42 U.S.C. 5133(m).
---------------------------------------------------------------------------
    The PDM program provides cost-effective technical and 
financial assistance to state and local governments to reduce 
injuries, loss of life, and damage to property caused by 
natural hazards. Examples of mitigation activities include the 
seismic strengthening of buildings and infrastructure, 
acquiring repetitively flooded homes, installing shutters and 
shatter resistant windows in hurricane-prone areas, and the 
building of ``safe rooms'' in houses and other buildings to 
protect from high winds. For instance, in 2005, FEMA provided 
PDM program funds to finance roll-down storm shutter systems at 
five fire stations in Broward County, Florida. Soon after 
completion of the project, Hurricane Wilma struck Florida. The 
retrofitted fire stations were not damaged and were able to 
operate effectively during and after the storm.
    The PDM program provides grants to States, Territories, 
Tribal governments, and local communities on a competitive 
basis, with each State receiving a statutory minimum of 
$500,000, or one percent, of the funds appropriated, whichever 
is less.\4\ The Federal share of the costs of PDM projects is 
up to 75 percent, or up to 90 percent for small or impoverished 
communities.
---------------------------------------------------------------------------
    \4\Section 203(f) of the Stafford Act; 42 U.S.C. 5133(f).
---------------------------------------------------------------------------
    In 2007, 47 States, seven Tribal governments, and three 
Territories submitted applications for 430 communities 
requesting $292 million--about three times the available 
funding of $100 million.\5\
---------------------------------------------------------------------------
    \5\Potential Cost Savings from the Pre-Disaster Mitigation Program, 
Congressional Budget Office, September 2007, p. 1.
---------------------------------------------------------------------------
    FEMA's mitigation programs, including the PDM program and 
the post-disaster Hazard Mitigation Grant Program (``HMGP'') 
authorized by section 404 of the Stafford Act, are effective in 
accomplishing their goals of reducing the risk of future 
damage, hardship, and loss from all hazards. A number of 
reports, including two mandated by Congress, have cited the 
cost-effectiveness of these programs. In 2005, the Multihazard 
Mitigation Council, an advisory body of the National Institute 
of Building Sciences, found ``that a dollar spent on mitigation 
saves society an average of $4.''\6\ The Council found that 
flood mitigation measures yield even greater savings.\7\
---------------------------------------------------------------------------
    \6\Natural Hazard Mitigation Saves: An Independent Study to Assess 
the Future Savings from Mitigation Activities, Multihazard Mitigation 
Council, National Institute of Building Sciences, 2005, p. 5. Congress 
mandated this report pursuant to the Departments of Veterans Affairs, 
Housing and Urban Development, and Independent Agencies Appropriations 
Act of 2000; Senate Report 106-161.
    \7\Id.
---------------------------------------------------------------------------
    Pursuant to section 209 of the Disaster Mitigation Act of 
2000, as amended, the Congressional Budget Office (``CBO'') 
completed a study in September 2007 estimating the reduction in 
Federal disaster assistance that is likely to result from the 
PDM program.\8\ CBO estimated that PDM-funded projects from 
2004 to June 2007 had total costs of almost $500 million and 
that the reduction in future losses associated with those 
projects is $1.6 billion (present value).\9\ According to CBO, 
``on average, future losses are reduced by about $3 (measured 
in discounted present value) for each $1 spent on those 
projects, including both federal and nonfederal spending.''\10\
---------------------------------------------------------------------------
    \8\Potential Cost Savings from the Pre-Disaster Mitigation Program, 
Congressional Budget Office, September 2007, p. 1.
    \9\Id., p. 2.
    \10\Id., p. 1.
---------------------------------------------------------------------------

                       Summary of the Legislation


Section 1. Short title

    Section 1 designates the short title of the Act as the 
``Pre-Disaster Mitigation Act of 2008''.

Section 2. Pre-Disaster Hazard Mitigation

    Subsection (a) amends Section 203(f) of the Stafford Act. 
This subsection increases the minimum allocation that each 
State receives from $500,000 under current law to $575,000, but 
maintains that each State shall receive the lesser of this 
amount or one percent of the total funds appropriated for the 
fiscal year. The section codifies the competitive aspects of 
the program as currently administered by FEMA, and retains a 
provision that any State may not receive more than 15 percent 
of the total funds appropriated for the fiscal year.
    Subsection (b) authorizes appropriations for the Pre-
Disaster Mitigation program of $250,000,000 for each of fiscal 
years 2009, 2010, and 2011. This subsection also eliminates the 
provision in Section 203(m) of the Stafford Act to sunset the 
PDM program on September 30, 2008.
    Subsection (c) changes references in Section 203 of the 
Stafford Act from ``Predisaster'' to ``Pre-Disaster,'' 
consistent with how FEMA refers to the program.

                           Additional Matters

    On April 30, 2008, the Subcommittee on Economic 
Development, Public Buildings, and Emergency Management held a 
hearing on FEMA's Pre-Disaster Mitigation program. At this 
hearing, there was a discussion of the important role of 
building codes in reducing damage to buildings from natural 
hazards. The Committee reminds FEMA that adoption and 
enforcement of appropriate building codes should be considered 
under section 203(g)(2).
    At the hearing, emergency management representatives also 
suggested that private non-profits (``PNPs'') be allowed to be 
sub-applicants and sub-grantees for the Pre-Disaster Mitigation 
program, when local governments do not have the resources to 
perform this function on behalf of the PNPs. The Committee is 
not aware of any specific cases of this problem, and believes 
that if a local government is unable to serve as the sub-
applicant and sub-grantee on behalf of an PNP, an appropriate 
State agency may do so on its behalf.
    One of the few criticisms of the Pre-Disaster Mitigation 
program has been the time that it takes for FEMA to obligate 
PDM funds.\11\ The Committee notes that FEMA is taking steps to 
streamline grant processes and encourages FEMA to use all 
appropriate flexibility. The Committee reminds the Department 
of Homeland Security that Congress specifically exempted the 
Pre-Disaster Mitigation Program from grant administration and 
other requirements imposed in P.L. 110-53, the ``Implementing 
Recommendations of the 9/11 Commission Act of 2007'', to avoid 
additional administrative requirements that would slow down the 
disbursement of funds.
---------------------------------------------------------------------------
    \11\Congressional Research Service, Pre-Disaster Mitigation 
Program, Francis X. McCarthy, June 2008.
---------------------------------------------------------------------------
    The Committee is aware of the difficulties that several 
small localities in Minnesota faced when attempting to apply 
for PDM grants, due in part to the limited application 
timeframes. In addition, the Committee is aware of the 
challenges that communities in Minnesota and other small 
communities around the country have faced in completing well-
developed applications due to the time-consuming requirement of 
using FEMA's eGrants application system. The Committee urges 
FEMA to develop a streamlined application process and continue 
to seek ways by which small communities can make the most 
efficient use of their limited resources during the application 
process.
    The Committee recognizes that some communities have less 
capability than others to develop competitive hazard mitigation 
applications, and that some States are less able than others to 
build and maintain the capacity to provide needed technical 
assistance. The Committee encourages FEMA to continue to make 
available technical assistance, and allow States the greatest 
flexibility permitted to provide technical assistance, to 
communities that require such assistance and capacity building 
to identify and develop applications in accordance with the 
specifications of the nationally competitive program.
    The Committee notes the clear purpose of the Pre-Disaster 
Mitigation program to reduce injuries, loss of life, and damage 
to property from natural disasters and the program's broad 
statutory authority to provide Federal assistance for projects, 
such as tornado warning sirens, which serve this purpose. Given 
the sudden nature and extreme destructive power of tornados, 
the Committee believes warning sirens are a cost-effective 
measure for mitigating injuries and loss of life from tornados. 
The Committee believes that Section 203 of the Stafford Act 
clearly authorizes mitigation assistance for tornado warning 
sirens. Indeed, a number of States have recognized the problem 
of tornados in their Hazard Mitigation Plans submitted to FEMA, 
pursuant to the Stafford Act. FEMA has provided mitigation 
grant funding for tornado warning systems in a number of 
states, including Kentucky and Mississippi. In addition, FEMA 
highlights the value of these warning systems in its own 
Mitigation Best Practices database. The Committee believes that 
providing funding for mitigation projects such as warning 
sirens is consistent with the intent of the PDM program to help 
reduce injuries and loss of life.

            Legislative History and Committee Consideration

    In 2000, Congress enacted the Disaster Mitigation Act of 
2000 (P.L. 106-390). In 2005, Congress reauthorized the program 
through fiscal year 2008 (P.L. 109-139). Under current law, the 
Pre-Disaster Mitigation program terminates on September 30, 
2008, unless Congress reauthorizes the program.
    On April 30, 2008, the Subcommittee on Economic 
Development, Public Buildings, and Emergency Management held a 
hearing on FEMA's Pre-Disaster Mitigation program.
    On May 21, 2008, Chairman James L. Oberstar introduced H.R. 
6109, the ``Pre-Disaster Mitigation Act of 2008''.
    On May 22, 2008, the Committee on Transportation and 
Infrastructure met in open session to consider H.R. 6109. The 
Committee ordered the bill reported favorably to the House by 
voice vote with a quorum present.

                              Record Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record 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 recorded votes taken in connection 
with ordering H.R. 6109 reported. A motion to order H.R. 6109 
reported favorably to the House was agreed to by voice vote 
with a quorum present.

                      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 in the report.
    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 objectives of this legislation are to 
reauthorize the Pre-Disaster Mitigation program for three 
years.
    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 enclosed cost estimate for H.R. 6109 
from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 5, 2008.
Hon. James L. Oberstar, 
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. 6109, the Pre-
Disaster Mitigation Act of 2008.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Daniel 
Hoople and Jeffrey LaFave.
            Sincerely,
                                         Robert A. Sunshine
                                   (For Peter R. Orszag, Director).
    Enclosure.

H.R. 6109--Pre-Disaster Mitigation Act of 2008

    Summary: H.R. 6109 would authorize appropriations to the 
Federal Emergency Management Agency (FEMA) for grants to states 
and localities for pre-disaster mitigation programs such as 
constructing levies, relocating homes from flood-prone areas, 
and retrofitting buildings in areas prone to earthquakes. CBO 
estimates that implementing H.R. 6109 would cost $700 million 
over the 2009-2013 period and $50 million after 2013, assuming 
appropriation of the specified amounts. Enacting H.R. 6109 
would not affect direct spending or revenues.
    H.R. 6109 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 6109 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--
                                                         -------------------------------------------------------
                                                            2009     2010     2011     2012     2013   2009-2013
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level.....................................      250      250      250        0        0        50
Estimated Outlays.......................................       25      100      200      225      150       700
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: Under current law, FEMA is authorized 
through 2008 to provide grants to states and localities to help 
prevent damage in areas frequented by disasters. H.R. 6109 
would extend this authority through 2011 and authorize the 
appropriation of $250 million per year over the 2009-2011 
period, an increase of $136 million over the 2008 appropriation 
level of $114 million (see Public Law 110-161). CBO's estimate 
of spending is based on historical spending patterns for such 
grants.
    Intergovernmental and private-sector impact: H.R. 6109 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. Assuming appropriation of authorized 
amounts, those governments would benefit from $700 million in 
grants over the 2009-2013 period for mitigation activities. Any 
costs to those governments, including matching funds, would be 
incurred voluntlarily.
    Estimate prepared by: Federal Costs: Daniel Hoople and 
Jeffrey LaFave; Impact on State, Local, and Tribal Governments: 
Melissa Merrell; Impact on the Private Sector: Paige Piper/
Bach.
    Estimate approved by: Peter H. Fontaine, Assistant Director 
for Budget Analysis.

                     Compliance with House Rule XXI

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, H.R. 6109 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI 
of the Rules of the House of Representatives.

                   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. 6109 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] PRE-DISASTER HAZARD MITIGATION.

  (a) * * *

           *       *       *       *       *       *       *

  (b) Establishment of Program.--The President may establish a 
program to provide technical and financial assistance to States 
and local governments to assist in the implementation of 
[predisaster] pre-disaster hazard mitigation measures that are 
cost-effective and are designed to reduce injuries, loss of 
life, and damage and destruction of property, including damage 
to critical services and facilities under the jurisdiction of 
the States or local governments.
  (c) Approval by President.--If the President determines that 
a State or local government has identified natural disaster 
hazards in areas under its jurisdiction and has demonstrated 
the ability to form effective public-private natural disaster 
hazard mitigation partnerships, the President, using amounts in 
the National [Predisaster] Pre-Disaster Mitigation Fund 
established under subsection (i) (referred to in this section 
as the ``Fund''), may provide technical and financial 
assistance to the State or local government to be used in 
accordance with subsection (e).

           *       *       *       *       *       *       *

  (e) Uses of Technical and Financial Assistance.--
          (1) In general.--Technical and financial assistance 
        provided under this section--
                  (A) shall be used by States and local 
                governments principally to implement 
                [predisaster] pre-disaster hazard mitigation 
                measures that are cost-effective and are 
                described in proposals approved by the 
                President under this section; and

           *       *       *       *       *       *       *

  [(f) Allocation of Funds.--The amount of financial assistance 
made available to a State (including amounts made available to 
local governments of the State) under this section for a fiscal 
year--
          [(1) shall be not less than the lesser of--
                  [(A) $500,000; or
                  [(B) the amount that is equal to 1.0 percent 
                of the total funds appropriated to carry out 
                this section for the fiscal year;
          [(2) shall not exceed 15 percent of the total funds 
        described in paragraph (1)(B); and
          [(3) shall be subject to the criteria specified in 
        subsection (g).]
  (f) Allocation of Funds.--
          (1) Base amount.--The amount of financial assistance 
        made available to a State (including amounts made 
        available to local governments of the State) under this 
        section for a fiscal year--
                  (A) shall be not less than the lesser of--
                          (i) $575,000; or
                          (ii) the amount that is equal to 1.0 
                        percent of the total funds appropriated 
                        to carry out this section for the 
                        fiscal year; and
                  (B) shall be subject to the criteria 
                specified in subsection (g).
          (2) Competitive program.--Other than the amounts 
        described in paragraph (1), financial assistance made 
        available to a State (including amounts made available 
        to local governments of the State) under this section 
        shall be awarded on a competitive basis subject to the 
        criteria in subsection (g).
          (3) Maximum amount.--The amount of financial 
        assistance made available to a State (including amounts 
        made available to local governments of the State) for a 
        fiscal year shall not exceed 15 percent of the total 
        amount of funds appropriated to carry out this section 
        for the fiscal year.

           *       *       *       *       *       *       *

  (i) National [Predisaster] Pre-disaster Mitigation Fund.--
          (1) Establishment.--The President may establish in 
        the Treasury of the United States a fund to be known as 
        the ``National [Predisaster] Pre-Disaster Mitigation 
        Fund'', to be used in carrying out this section.
          (2) Transfers to fund.--There shall be deposited in 
        the Fund--
                  (A) * * *
                  (B) sums available from gifts, bequests, or 
                donations of services or property received by 
                the President for the purpose of [predisaster] 
                pre-disaster hazard mitigation.

           *       *       *       *       *       *       *

  [(m) Termination of Authority.--The authority provided by 
this section terminates September 30, 2008.]
  (m) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $250,000,000 for each 
of fiscal years 2009, 2010, and 2011.

           *       *       *       *       *       *       *


                                  
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