[House Report 115-32]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 115-32
======================================================================
DISASTER SIMPLIFIED ASSISTANCE VALUE ENHANCEMENT ACT
_______
March 9, 2017.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Shuster, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 1214]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 1214) to require the Administrator
of the Federal Emergency Management Agency to conduct a program
to use simplified procedures to issue public assistance for
certain projects under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act, and for other purposes, having
considered the same, report favorably thereon without amendment
and recommend that the bill do pass.
CONTENTS
Page
Purpose of Legislation........................................... 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 4
Legislative History and Consideration............................ 4
Committee Votes.................................................. 5
Committee Oversight Findings..................................... 5
New Budget Authority and Tax Expenditures........................ 5
Congressional Budget Office Cost Estimate........................ 5
Performance Goals and Objectives................................. 6
Advisory of Earmarks............................................. 6
Duplication of Federal Programs.................................. 6
Disclosure of Directed Rule Makings.............................. 7
Federal Mandate Statement........................................ 7
Preemption Clarification......................................... 7
Advisory Committee Statement..................................... 7
Applicability of Legislative Branch.............................. 7
Section-by-Section Analysis of Legislation....................... 7
Changes in Existing Law Made by the Bill, as Reported............ 7
PURPOSE OF LEGISLATION
H.R. 1214 would require the Administrator of the Federal
Emergency Management Agency (FEMA) to conduct a program to use
simplified procedures when providing public assistance for
certain projects under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act.
BACKGROUND AND NEED FOR LEGISLATION
Federal Emergency Management Agency: History
FEMA was established in 1979 by Executive Order 12148 by
President Jimmy Carter in response to a number of massive
disasters in the 1960's and 1970's. As a result of states
trying to manage these disasters, the National Governors
Association and others made a proposal to streamline and cut
the number of agencies states were required to work with
following a disaster. Prior to the creation of FEMA, the
federal government's emergency response mechanisms were
scattered among many agencies throughout government. The
creation of FEMA helped to centralize these authorities and the
coordination of the federal government's response to a
disaster. The Disaster Relief Act of 1974 (P.L. 93-288), which
constituted the statutory authority for most federal disaster
response activities, especially of FEMA, was later amended by
the Robert T. Stafford Disaster Relief and Emergency Assistance
Act, also known as the Stafford Act (P.L. 100-707).
Following more than two decades as an independent agency,
the Homeland Security Act of 2002 (P.L. 107-296) created the
Department of Homeland Security (DHS), placed FEMA within DHS,
and FEMA's functions were dispersed among various offices and
directorates within DHS. In 2006, following Hurricanes Katrina
and Rita and the subsequent intensive Congressional
investigations and oversight, Congress enacted the Post-Katrina
Emergency Management Reform Act of 2006 (PKEMRA) (P.L. 109-
295), which addresses key response roles and authorities and
put FEMA back together again within DHS. PKEMRA authorized the
National Preparedness System and FEMA for the first time in
legislation. Most recently, Congress enacted the Sandy Recovery
Improvement Act (SRIA) (P.L. 113-2), on January 29, 2013, in
the wake of Hurricane Sandy's impact to the East Coast. SRIA
provided additional authorities to expedite and streamline
Hurricane Sandy recovery efforts, reduce costs, and improve the
effectiveness of several disaster assistance programs
authorized by the Stafford Act.
Disaster response and recovery
When the President declares a major disaster or emergency,
the official declaration triggers certain federal response
authorities and financial disaster assistance. In particular,
when such a declaration is made, the President is authorized to
direct any federal agency, with or without reimbursement, to
assist state, tribal, and local governments and protect life
and property. FEMA is responsible for coordinating federal
agency response and ensuring the necessary federal capabilities
are deployed at the appropriate place and time. In addition,
FEMA provides direct support and financial assistance to
states, tribal, and local governments and individuals as
authorized under the Stafford Act. Once the President issues a
declaration, federal resources are deployed in support of
state, tribal, and local response efforts.
FEMA's major Stafford Act programs for disaster response
and recovery in the aftermath of a major disaster are in the
Public Assistance Program and the Individual Assistance
Program. Under both of these programs FEMA assistance may not
duplicate other benefits or insurance, assistance is not
intended to make ``one whole,'' and for-profit companies are
generally ineligible for assistance.
The Public Assistance Program, authorized primarily by
sections 403, 406, and 407 of the Stafford Act, reimburses
state, tribal, and local emergency response costs and provides
grants to state, tribal, and local governments, as well as
certain private non-profits to rebuild facilities. The Public
Assistance Program generally does not provide direct services
to citizens.
Disaster Simplified Assistance Value Enhancement Act or ``Disaster
SAVE''
As part of the Disaster Mitigation Act of 2000 (P.L. 106-
390), Congress authorized FEMA to expedite assistance based on
estimates for certain projects through simplified procedures in
order to lower the cost of administering small repair projects.
Prior to February, 2014, FEMA was able to approve and obligate
funds based on estimates for public assistance projects
estimated to cost below $68,500. Under SRIA, Congress directed
FEMA to review the threshold, report to Congress and provided
authority for FEMA to increase the threshold in the future.
FEMA examined data indicating that if the threshold were
increased to $120,000, 93 percent of the total number of
projects issued for disaster recovery could be covered through
these simplified, expedited procedures; an increase to $190,000
would cover 95 percent of the projects and an increase to
$400,000 would encompass 98 percent of the number of all
projects issued for disaster recovery.\1\ After examining this
and other factors such as cost savings and reporting the
results to Congress, FEMA published notice in the Federal
Register increasing the threshold to $120,000, to be adjusted
annually with the Consumer Price Index.\2\ As required by SRIA,
FEMA will review the threshold every three years.
---------------------------------------------------------------------------
\1\Federal Emergency Management Agency. Determination on the Public
Assistance Simplified Procedures Thresholds. (January 29, 2014)
available at http://www.fema.gov/media-library-data/1391095896799-
50f74acda8e6de05dac297db1aad5669/
FY14+Public+Assistance+Simplified+Procedures+Thresholds.pdf.
\2\79 Fed. Reg. 10685.
---------------------------------------------------------------------------
The Committee continues to hear that a significant amount
of Public Assistance projects are administered by FEMA in an
inefficient and ineffective way. H.R. 1214 would increase the
threshold to $500,000 for a period of four years. Raising the
threshold to this amount would capture over 98 percent of the
number of recovery projects FEMA administers. FEMA is required
to report on cost-effectiveness, speed of recovery, capacity of
grantees, past performance and accountability measures, in
order to inform Congress as to the benefits of continuing or
the need to allow the program to sunset in 2021, as provided in
the legislation.
FEMA testified on January 27, 2015, that increasing the
simplified procedures threshold would result in lower
administrative costs, faster project completions, and eliminate
federal responsibility for project cost overruns.\3\ The
Committee requests FEMA provide periodic updates throughout the
four years on savings realized, the rate of appeals, the rate
of deobligations, and other matters of congressional oversight
interest.
---------------------------------------------------------------------------
\3\Committee on Transportation and Infrastructure. ``Rebuilding
after the Storm: Lessening Impacts and Speeding Recovery,'' January 27,
2015.
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HEARINGS
The Subcommittee on Economic Development, Public Buildings,
and Emergency Management, held the following hearings and
roundtable discussions on subjects related to matters contained
in H.R. 1214 during the 114th Congress:
``Rebuilding after the Storm: Lessening Impacts and
Speeding Recovery'' held on January 27, 2015. The purpose of
the hearing was to launch an assessment of the rising costs of
disasters, the cost effectiveness of disaster assistance,
strategies to reduce disaster losses, the appropriate roles of
government and the private sector, and to consider reforms to
save lives through improved alerts and warning systems and
search and rescue.
``What is Driving the Increasing Costs and Rising Losses
from Disasters?'' held on March 18, 2015. The purpose of the
roundtable was to examine and discuss data related to disaster
costs, the trends observed over time, and the projections for
the future given the policies in place today.
``The State of Pennsylvania and FEMA Region III are Leaders
in Mitigating Disaster Costs and Losses'' held on May 28, 2015.
The purpose of the roundtable was to examine disaster costs and
losses, focus on hazards impacting Pennsylvania and the region,
and identify best practices for mitigating and avoiding
disaster impacts.
``Federal Disaster Assistance: Roles, Programs and
Coordination'' held on June 17, 2015. The purpose of the
roundtable was to examine and discuss federal disaster
assistance programs, the requirements and effectiveness of
those programs, and coordination among various agencies and
stakeholders.
``Controlling the Rising Cost of Federal Responses to
Disaster'' held on May 12, 2016. The purpose of the hearing was
to begin exploring potential solutions and the principles that
should be driving solutions to lower the overall costs of
disasters and to help avoid devastating losses.
LEGISLATIVE HISTORY AND CONSIDERATION
On February 24, 2017, Subcommittee on Economic Development,
Public Buildings, and Emergency Management Chairman Lou
Barletta (R-PA) introduced H.R. 1214, a bill to require the
Administrator of the Federal Emergency Management Agency to
conduct a program to use simplified procedures to issue public
assistance for certain projects under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act.
On February 28, 2017, the Committee on Transportation and
Infrastructure met in open session to consider H.R. 1214. The
Committee ordered the bill reported favorably to the House by
voice vote with a quorum present.
COMMITTEE 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 consideration of H.R. 1214 or ordering the measure
reported. A motion to order H.R. 1214 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.
NEW BUDGET AUTHORITY AND TAX EXPENDITURES
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.
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
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. 1214 from the
Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, March 6, 2017.
Hon. Bill Shuster,
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. 1214, the Disaster
SAVE Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Robert Reese.
Sincerely,
Keith Hall.
Enclosure.
H.R. 1214--Disaster SAVE Act
H.R. 1214 would require the Federal Emergency Management
Agency (FEMA) to increase the threshold for what constitutes a
small disaster relief project under the Public Assistance (PA)
Grant Program. Under the bill, the definition of the cost of a
small project would increase from $123,000 to $500,000. That
increase would allow more projects to be designated as small.
Small projects receive a larger share of their funding up-front
relative to large projects; however, under H.R. 1214 the total
amount of funding disbursed by FEMA would not change. The bill
also would require FEMA to submit a report to the Congress on
the cost-effectiveness of the PA program. Finally, the bill
would expire on September 30, 2021, at which point FEMA could
adjust the threshold through regulations.
Based on information provided by FEMA on the administrative
costs associated with approving and managing PA grants and
collecting information necessary to complete the report, CBO
estimates that the cost to implement H.R. 1214 would not exceed
$500,000 in any year and over the 2018-2022 period; such
spending would be subject to the availability of appropriated
funds.
Enacting H.R. 1214 would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply. CBO
estimates that enacting H.R. 1214 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2028.
H.R. 1214 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.
The CBO staff contact for this estimate is Robert Reese.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
PERFORMANCE GOALS AND OBJECTIVES
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goal and objective of this legislation is to
require the Administrator of the Federal Emergency Management
Agency to conduct a program to use simplified procedures when
providing public assistance for certain projects under the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act.
ADVISORY OF EARMARKS
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee is required to include a list
of congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of
rule XXI of the Rules of the House of Representatives. No
provision in the bill includes an earmark, limited tax benefit,
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of
rule XXI.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee finds that no provision
of H.R. 1214 establishes or reauthorizes a program of the
federal government known to be duplicative of another federal
program, a program that was included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
DISCLOSURE OF DIRECTED RULE MAKINGS
Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017),
the Committee finds that enacting H.R. 1214 does not direct the
completion of a specific rule making within the meaning of
section 551 of title 5, United States Code.
FEDERAL MANDATE 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. 1214 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 OF 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).
SECTION-BY-SECTION ANALYSIS OF LEGISLATION
Section 1: Short title
Section 1 designates the short title as the ``Disaster
Simplified Assistance Value Enhancement Act'' or the ``Disaster
SAVE Act''.
Section 2: Simplified Procedure Program
This section directs the Administrator of FEMA to raise the
simplified procedures small projects threshold under Section
422 of the Stafford Act (42 U.S.C. 5189) to $500,000 for a
period of 4 years, to sunset on September 30, 2021. The
Administrator must also provide a report to Congress on the
increase.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
H.R. 1214 makes no changes in existing law.
[all]