[House Report 111-83]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     111-83
======================================================================
 
                  PRE-DISASTER MITIGATION ACT OF 2009

                                _______
                                

 April 23, 2009.--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. 1746]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 1746) to amend the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act to 
reauthorize the pre-disaster mitigation program of the Federal 
Emergency Management Agency, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                       Purpose of the Legislation

    H.R. 1746, the ``Pre-Disaster Mitigation Act of 2009'', 
reauthorizes the Pre-Disaster Mitigation (PDM) program for 
three years, at a level of $250 million for each of fiscal 
years 2010 through 2012. 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 PDM Mitigation program is the successor to the 
Project Impact pilot program.
    The PDM program was first authorized in section 102 of the 
Disaster Mitigation Act of 2000.\1\ The program is administered 
by FEMA through its Mitigation Division. It is currently 
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, 2009, unless Congress reauthorizes 
the program.\3\
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    \1\See Disaster Mitigation Act of 2000, Pub. L. No. 106-390, 
Sec. 102, 114 Stat. 1552, 1553 (2000).
    \2\See 42 U.S.C. Sec. 5133 (2008).
    \3\42 U.S.C. Sec. 5133(m)(2008).
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    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 PDM project costs is up to 
75 percent, or up to 90 percent for small or impoverished 
communities.
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    \4\42 U.S.C. Sec. 5133(f)(2008).
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    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\ In 2008, 45 States, five Tribal 
governments, and one Territory submitted 485 applications 
requesting $318.6 million--almost three times the available 
funding of $114 million. In 2009, 46 States, six Tribal 
governments, and six Territories submitted 485 applications 
requesting $310.3 million--more than three times the available 
funding of $90 million.\6\
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    \5\Congressional Budget Office (CBO), Potential Cost Savings from 
the Pre-Disaster Mitigation Program (2007), at 1 (hereinafter CBO 
Report). This report was prepared pursuant to Sec. 209 of the Disaster 
Mitigation Act of 2000, as amended.
    \6\Source: FEMA.
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    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 (``Council''), an advisory body of the 
National Institute of Building Sciences, found that ``a dollar 
spent on mitigation saves society an average of $4.''\7\ The 
Council found that flood mitigation measures yield even greater 
savings.\8\
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    \7\Multihazard Mitigation Council, National Institute of Building 
Sciences, Natural Hazard Mitigation Saves: An Independent Study to 
Assess the Future Savings from Mitigation Activities, 5 (2005). 
Congress mandated this report pursuant to the Departments of Veterans 
Affairs, Housing and Urban Development, and Independent Agencies 
Appropriations Act of 2000; Pub. L. No. 106-74 (2000); see also Senate 
Report 106-161.
    \8\Id.
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    In 2007, the Congressional Budget Office estimated the 
reduction in Federal disaster assistance that is likely to 
result from the PDM program.\9\ 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).\10\ 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.''\11\
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    \9\See note 5, supra.
    \10\Id. at 2.
    \11\Id. at 1.
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                       Summary of the Legislation

Section 1. Short title
    Section 1 designates the short title of the Act as the 
``Pre-Disaster Mitigation Act of 2009''.
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 PDM 
program of $250 million for each of fiscal years 2010, 2011, 
and 2012. This subsection also eliminates the provision in 
section 203(m) of the Stafford Act to sunset the PDM program on 
September 30, 2009.
    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 PDM 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 PDM program, when local 
governments do not have the resources to perform this function 
on the PNPs behalf. 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 a PNP, an appropriate State agency may do so on its 
behalf.
    One of the few criticisms of the PDM program has been the 
time that it takes for FEMA to obligate PDM funds.\12\ 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 PDM Mitigation 
Program from grant administration and other requirements 
imposed in the Implementing Recommendations of the 9/11 
Commission Act of 2007 (Public Law 110-53), to avoid additional 
administrative requirements that would slow down the 
disbursement of funds.
---------------------------------------------------------------------------
    \12\Francis X. McCarthy, Congressional Research Service, Pre-
Disaster Mitigation Program (2008).
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    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 continue 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.
    FEMA has begun a multi-year effort to harmonize 
administrative requirements for all of FEMA's hazard mitigation 
programs; these include the all hazards PDM program and HMGP 
authorized by the Stafford Act, as well as flood mitigation 
programs (Flood Mitigation Assistance, Repetitive Flood Loss, 
and Severe Repetitive Loss). FEMA's goal is to unify the 
administrative requirements of hazard mitigation assistance 
programs by using common systems and tools, and by simplifying 
and streamlining the application and eligibility determination 
process. FEMA expects this will improve program implementation, 
management and close-out. The focus is on simplifying the 
process for both FEMA and the communities they serve. The 
Committee supports these efforts.
    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.

            Legislative History and Committee Consideration

    In 2000, Congress enacted the Disaster Mitigation Act of 
2000 (Public Law 106-390). In 2005, Congress reauthorized the 
program through fiscal year 2008 (Public Law 109-139). In 2008, 
Congress extended the program's authorization for one year 
(Public Law 110-329). Under current law, the PDM program 
terminates on September 30, 2009, 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. On June 19, 2008, the Committee reported the 
bill to the House (H. Rept. 110-275). On June 23, 2008, the 
House passed H.R. 6109 by voice vote with a quorum present. No 
further action was taken on the bill.
    On July 30, 2008, Chairman James L. Oberstar introduced 
H.R. 6658, the ``Disaster Response, Recovery and Mitigation 
Enhancement Act of 2008'', which included reauthorization of 
the PDM program. On July 31, 2008, the Committee ordered H.R. 
6658 reported favorably to the House by voice vote with a 
quorum present. No further action was taken on the bill.
    On March 26, 2009, Chairman James L. Oberstar introduced 
H.R. 1746, the ``Pre-Disaster Mitigation Act of 2009''. On 
April 2, 2009, the Committee on Transportation and 
Infrastructure met in open session to consider H.R. 1746. 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 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 consideration 
of H.R. 1746 or ordering the bill reported. A motion to order 
H.R. 1746 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. 1746 
from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 16, 2009.
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. 1746, the Pre-
Disaster Mitigation Act of 2009.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Daniel 
Hoople.
            Sincerely,
                                         Robert A. Sunshine
                                        (For Douglas W. Elmendorf).
    Enclosure.

H.R. 1746--Pre-Disaster Mitigation Act of 2009

    Summary: H.R. 1746 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 earthquake zones. CBO estimates 
that implementing H.R. 1746 would cost $700 million over the 
2010-2014 period and $50 million in later years, assuming 
appropriation of the specified amounts. Enacting H.R. 1746 
would not affect direct spending or revenues.
    H.R. 1746 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. 1746 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--
                                                    ------------------------------------------------------------
                                                       2010      2011      2012      2013      2014    2010-2014
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level                                       250       250       250         0         0        750
Estimated Outlays                                          25       100       200       225       150        700
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: Under current law, FEMA is authorized 
through 2009 to provide grants and technical assistance to 
state and localities to implement measures that prevent damage 
in areas frequented by natural disasters. This legislation 
would extend this authority through 2012 and authorize the 
appropriation of $250 million in each year over the 2010-2012 
period, an increase of $160 million over the 2009 appropriation 
level of $90 million (as provided in Public Law 110-329). CBO's 
estimate of outlays is based on historical spending patterns 
for such grants.
    Intergovernmental and private-sector impact: H.R. 1746 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, and 
tribal governments. Assuming appropriation of authorized 
amounts, those governments would benefit from $700 million in 
grants over the 2010-2014 period for pre-disaster mitigation 
activities. Any costs to those governments, including matching 
funds, would be incurred voluntarily.
    Estimate prepared by: Federal costs: Daniel Hoople; 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. 1746 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. 1746 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) In general.--The President shall award financial 
        assistance under this section on a competitive basis 
        and in accordance with the criteria in subsection (g).
          (2) Minimum and maximum amounts.--In providing 
        financial assistance under this section, the President 
        shall ensure that the amount of financial assistance 
        made available to a State (including amounts made 
        available to local governments of the State) for a 
        fiscal year--
                  (A) is not less than the lesser of--
                          (i) $575,000; or
                          (ii) the amount that is equal to one 
                        percent of the total funds appropriated 
                        to carry out this section for the 
                        fiscal year; and
                  (B) does not exceed the amount that is equal 
                to 15 percent of the total 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, 2009.]
  (m) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $250,000,000 for each 
of fiscal years 2010, 2011, and 2012.

           *       *       *       *       *       *       *


                                  
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