[Senate Report 110-240]
[From the U.S. Government Publishing Office]



110th Congress 
 1st Session                     SENATE                          Report
                                                                110-240
_______________________________________________________________________
                                                       Calendar No. 531
 
    STREAMLINING MITIGATION ACTIONS AND RECOVERY TOOLS AND REGIONAL 
 EVACUATION AND SHELTERING PLANNING OF OVERARCHING NETWORKS FOR SEVERE 
                  EMERGENCIES ACT (SMART RESPONSE ACT)

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 2445


 TO PROVIDE FOR THE FLEXIBILITY OF CERTAIN DISASTER RELIEF FUNDS, AND 
      FOR IMPROVED EVACUATION AND SHELTERING DURING DISASTERS AND 
                              CATASTROPHES




               December 11, 2007.--Ordered to be printed
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TED STEVENS, Alaska
THOMAS R. CARPER, Delaware           GEORGE V. VOINOVICH, Ohio
MARK L. PRYOR, Arkansas              NORM COLEMAN, Minnesota
MARY L. LANDRIEU, Louisiana          TOM COBURN, Oklahoma
BARACK OBAMA, Illinois               PETE V. DOMENICI, New Mexico
CLAIRE McCASKILL, Missouri           JOHN WARNER, Virginia
JON TESTER, Montana                  JOHN E. SUNUNU, New Hampshire

                  Michael L. Alexander, Staff Director
                     Kevin J. Landy, Chief Counsel
                       Mary Beth Schultz, Counsel
Donny R. Williams, Jr., Staff Director, Ad Hoc Subcommittee on Disaster 
                                Recovery
     Brandon L. Milhorn, Minority Staff Director and Chief Counsel
                Asha A. Mathew, Minority Senior Counsel
                  Trina Driessnack Tyrer, Chief Clerk
                            C O N T E N T S

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................1
III. Legislative History..............................................3
 IV. Section by Section Analysis......................................3
  V. Evaluation of Regulatory Impact..................................4
 VI. Congressional Budget Office Cost Estimate........................4
VII. Changes in Existing Law Made by the Bill, as Reported............6
                                                       Calendar No. 531
110th Congress                                                   Report
                                 SENATE
 1st Session                                                    110-240

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


    STREAMLINING MITIGATION ACTIONS AND RECOVERY TOOLS AND REGIONAL 
 EVACUATION AND SHELTERING PLANNING OF OVERARCHING NETWORKS FOR SEVERE 
                  EMERGENCIES ACT (SMART RESPONSE ACT)

                                _______
                                

               December 11, 2007.--Ordered to be printed

                                _______
                                

Mr. Lieberman, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 2445]

    The Committee on Homeland Security and Governmental Affairs 
reports the original bill (S. 2445) to provide for the 
flexibility of certain disaster relief funds, and for improved 
evacuation and sheltering during disasters and catastrophes, 
having considered the same reports favorably thereon and 
recommends that the bill do pass.

                         I. PURPOSE AND SUMMARY

    The purpose of this bill is to eliminate obstacles to the 
rebuilding efforts in Louisiana after the catastrophic impact 
of Hurricanes Katrina and Rita by providing flexibility for the 
expenditure of certain Hazard Mitigation Grant Program (HMGP) 
funds, as well as to develop regional evacuation and sheltering 
plans.

              II. BACKGROUND AND NEED FOR THE LEGISLATION

    Hurricane Katrina made landfall in Louisiana on August 29, 
2005 and swept across the Southern Gulf Coast states, 
decimating 90,000 square miles of public infrastructure and 
destroying homes in numbers never before seen in modern 
American history. The Katrina waters sat for about three weeks, 
and were beginning to recede when Hurricane Rita made landfall 
heavily impacting parts of Southwest Louisiana, and reopening 
the temporarily repaired levees, refilling parts of New Orleans 
with water. All told, the housing stock in Louisiana suffered 
historic levels of devastation. Statewide, some 204,467 owner-
occupied homes suffered either major damage or were completely 
destroyed.
    Rebuilding the housing stock in Louisiana is crucial to 
restoring the state's cultural, economic, and social vitality. 
Congress appropriated funds through the Department of Housing 
and Urban Development's Community Development Block Grant 
(CDBG) Fund for the rebuilding of the Hurricane Katrina and 
Rita impacted regions. As a result of the catastrophic impact 
of Hurricanes Katrina and Rita on Louisiana, the rebuilding 
process has been very slow on nearly all fronts, particularly 
with regard to efforts to rebuild residential homes in 
devastated areas. Part of the delay is attributed to the delays 
in providing assistance to homeowners. Louisiana used CDBG 
money to fund its state homeowner assistance program, called 
the Road Home Program. In order to encourage the residents and 
spur economic activity, the program offers favorable treatment 
to those rebuilding in the affected area by penalizing 
recipients of program funds who leave the state, but provides 
exemptions from this penalty for senior citizens.
    Another important federal disaster assistance tool offered 
by the federal government is the Federal Emergency Management 
Agency's (FEMA) Hazard Mitigation Grant Program (HMGP). The 
purpose of the HMGP is to reduce the loss of life and property 
during future disasters and to enable mitigation measures to be 
implemented during the immediate disaster recovery. HMGP 
provides grants to States and local governments to implement 
hazard mitigation measures after a major disaster declaration. 
FEMA's mitigation grants are provided to eligible applicants 
(States/Tribes/Territories) which, in turn, provide sub-grants 
which can be awarded for numerous projects, including approved 
mitigation projects by private homeowners.
    In designing the Road Home Program, Louisiana chose to use 
its HMGP funds in conjunction with the Road Home Program in 
order to allow HMGP and Road Home funds to be distributed to 
applicants in one process. This would enable individuals--who 
might be required to elevate their homes to meet flood zoning 
requirements or to perform other important mitigation efforts 
to prevent future loss of life or property--to use HMGP funds 
within their overall rebuilding effort, thereby streamlining 
activities, making the rebuilding process more efficient and 
effective, and helping to ensure mitigation practices are 
incorporated into the rebuilding process to the greatest extent 
possible to help reduce potential damages from future 
disasters.
    FEMA, however, has prohibited the use of HMGP dollars 
within the Road Home Program because it considers the Road Home 
Program's penalty against those who leave the state and penalty 
exemption for individuals over 60 to be discriminatory based 
upon its interpretation of Section 308 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act, which 
prohibits the agency from discriminating when distributing 
disaster assistance. FEMA's prohibition of the use of HMGP 
funds within the State of Louisiana's Road Home Program has 
caused significant delays in the overall process of getting its 
citizens back into their homes.
    Under this bill, the FEMA Administrator may not prohibit or 
restrict the use by the State of Louisiana through the Road 
Home Program of HMGP funds specified in the bill based upon the 
existence of certain penalties in the Road Home Program. The 
specified penalties include restrictions which limit or reduce 
the amount made available to an eligible homeowner who does not 
agree to remain an owner or occupant of a home in Louisiana or 
any waiver of such penalty for homeowners who are elderly or 
senior citizens. The bill, however, leaves intact all other 
rules governing HMGP and ensures that Road Home applicants use 
the specific HMGP funds only for approved hazard mitigation 
activities.
    The bill also addresses other problems that are 
significantly delaying the recovery and rebuilding process by 
including provisions allowing things such as programmatic cost-
benefit analysis, streamlined environmental reviews, and 
providing HMGP funds for approved projects before a project is 
completed, instead of on a reimbursement basis.
    Additionally, the bill directs FEMA, in coordination with 
other appropriate federal agencies with responsibilities under 
the National Response Plan, states, local governments, and 
appropriate nongovernmental organizations to develop regional 
evacuation and sheltering planning. Catastrophic disasters can 
overwhelm state resources and prompt displacement beyond a 
single state's borders. Given the evacuation issues raised by 
Hurricanes Katrina and Rita, improved regional evacuation and 
sheltering planning is needed.

                        III. LEGISLATIVE HISTORY

    S. 2445 was introduced as an original Committee bill by 
Senator Landrieu on August 1, 2007 in the Senate Committee on 
Homeland Security and Governmental Affairs.
    On August 1, 2007, the Committee considered S. 2445.
    The Committee adopted two amendments. The first amendment 
was offered by Senator Landrieu. It was an amendment in the 
nature of a substitute that made minor modifications to the 
bill. The amendment was adopted by voice vote.
    The second amendment was offered by Senator Coleman and co-
sponsored by Senator Landrieu. This amendment allowed eligible 
grantees to receive HMGP funds for approved projects in advance 
of completing the process, rather than on the reimbursement 
basis as under existing law. The amendment was adopted by voice 
vote.
    By a voice vote, the Committee ordered the bill as amended 
favorably reported to the full Senate.

                    IV. SECTION-BY-SECTION ANALYSIS

Section 1. Short title

Section 2. Definitions

Section 3. Flexibility of Federal funds for Road Home Program

    Under this section the Administrator of FEMA may not 
prohibit or restrict the use by the State of Louisiana under 
the Road Home Program of the HMGP funds specified in the bill 
based upon the existence of certain penalties under the Road 
Home Program. The specified penalties include restrictions 
which limit or reduce the amount made available to an eligible 
homeowner who does not agree to remain an owner or occupant of 
a home in Louisiana or any waiver of such penalty for 
homeowners who are elderly or senior citizens. All other 
provisions of the HMGP program outlined in section 404 of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act 
would apply to the use of funds. This section also requires the 
FEMA Administrator to transfer the specified funds as soon as 
practicable to the State of Louisiana and to simplify 
requirements of the program, including by streamlining cost-
benefit analyses and environmental reviews, to ensure the 
expedited distribution of such funds under the program. The 
section also allows a grant recipient to receive funds for 
approved projects prior to the completion of the project, 
instead of on a reimbursement basis, if proper certifications 
regarding use of the money are received. Finally, it allows the 
FEMA Administrator to design and implement audit procedures as 
necessary.

Section 4. Evacuation and sheltering

    This section directs the Administrator of FEMA to 
coordinate with appropriate Federal Agencies, state and local 
governments, and nongovernmental organizations to develop 
regional evacuation and sheltering plans, create a national 
database of available shelters, and conduct an analysis 
comparing the costs, benefits, and health and safety concerns 
of evacuating individuals with special needs during an 
incident, as compared to the costs, benefits, and health and 
safety concerns of sheltering such people in the area where 
they are located when an incident occurs. The section also 
requires the Administrator to obtain and share information from 
the Evacuation Traffic Information System, a system managed by 
the Department of Transportation that is designed to monitor 
traffic flow during an incident.

                   V. EVALUATION OF REGULATORY IMPACT

    Pursuant to the requirement of paragraph 11(b)(1) of rule 
XXVI of the Standing Rules of the Senate the Committee has 
considered the regulatory impact of this bill. CBO states that 
the bill 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.

                   VI. ESTIMATED COST OF LEGISLATION

                                                 November 16, 2007.
Hon. Joseph I. Lieberman,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for the SMART RESPONSE Act.
    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.

SMART RESPONSE Act

    Summary: The legislation would direct the Federal Emergency 
Management Agency (FEMA) to develop and implement regional 
evacuation and sheltering plans for use following a major 
disaster. In addition, the bill would direct FEMA to create a 
database of available shelters that can be shared with state 
and local governments. Based on information from FEMA, CBO 
estimates that implementing those provisions would cost about 
$39 million over the 2008-2012 period, assuming appropriation 
of the estimated amounts.
    The legislation also would prohibit FEMA from restricting 
the use of $1.17 billion in hazard mitigation funding provided 
to Louisiana following the 2005 Gulf Coast hurricanes. The 
state wants to use those funds for grants to homeowners to 
elevate their homes; however, FEMA has denied funding for those 
projects because of provisions in the state's overall recovery 
program. CBO estimates that implementing this provision would 
not affect the pace of federal expenditures for hazard 
mitigation projects nor would it increase the need for 
additional disaster relief funding in the future. Enacting this 
legislation would not affect direct spending or revenues.
    The bill 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 this legislation 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--
                                                                    --------------------------------------------
                                                                       2008     2009     2010     2011     2012
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level......................................       17        6        6        5        5
Estimated Outlays..................................................       16        6        6        6        5
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted in early 2008 and that the necessary 
amounts will be appropriated for each fiscal year.

Evacuation and sheltering plans and database

    The legislation would direct FEMA to develop and implement 
regional evacuation and sheltering plans for use following a 
major disaster. Such plans would incorporate all modes of 
transportation and identify shelters capable of housing 
evacuees in any part of the United States. CBO estimates that 
FEMA would need to hire additional staff in each of its 11 
offices to complete the plans within the 360-day period 
specified in the bill. We estimate that this work would cost 
about $15 million in 2008 and $38 million over the 2008-2012 
period, assuming appropriation of the necessary amounts.
    The bill also would direct FEMA to create a database of 
available shelters that could be used following a disaster. 
Information from this database, as well as information from the 
Evacuation Traffic Information System (managed by the Federal 
Highway Administration), would be made available to state and 
local governments. CBO estimates that implementing this 
provision would cost about $1 million in 2008.

Elimination of restrictions on hazard mitigation funding

    The legislation would allow Louisiana to use certain funds 
for hazard mitigation in tandem with disaster recovery funds 
provided by the Community Development Block Grant (CDBG) 
program of the Department of Housing and Urban Development. 
Following Hurricanes Katrina and Rita, Louisiana received $1.5 
billion in grants through FEMA's Hazard Mitigation Grant 
Program (HMGP). The state has requested to use $1.17 billion of 
those amounts for elevation grants to homeowners under the 
terms of the Road Home program. (The Road Home program is 
Louisiana's plan for using CDBG funds provided in response to 
the 2005 hurricanes.) FEMA has denied this request because it 
believes that provisions of the Road Home program violate the 
authorizing statute for mitigation funds. The bill would 
prohibit FEMA from restricting the use of HMGP funds for those 
reasons.
    CBO estimates that implementing this provision would have 
no cost to the federal government. The bill would not authorize 
additional mitigation funding for Louisiana. Moreover, FEMA has 
already allocated the maximum amount of HMGP funds that the 
state may receive under current law. (For disasters of the 
magnitude of Hurricane Katrina, for example, this amount is 7.5 
percent of the agency's estimate of other funds it will provide 
for disaster relief.)
    Intergovernmental and private-sector impact: This bill 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. It would provide greater flexibility for 
Louisiana to use federal assistance to help homeowners recover 
from Hurricanes Katrina and Rita. It also would authorize the 
administrator to provide technical assistance to state and 
local governments to develop and implement evacuation and 
sheltering plans. Any costs to those governments would be 
incurred voluntarily as a condition of participating in a 
federal program.
    Estimate prepared by: Federal Costs: Daniel Hoople; Impact 
on State, Local, and Tribal Governments: Melissa Merrell; 
Impact on the Private Sector: Justin Hall.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

      VIII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    No changes to existing law are made by this bill.

                                  
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