Hurricane Protection: Statutory and Regulatory Framework for	 
Levee Maintenance and Emergency Response for the Lake		 
Pontchartrain Project (15-DEC-05, GAO-06-322T). 		 
                                                                 
The greatest natural threat posed to the New Orleans area is from
hurricane-induced storm surges, waves, and rainfalls. To protect 
the area from this threat, the U.S. Army Corps of Engineers	 
(Corps) was authorized by Congress in 1965 to design and	 
construct a system of levees as part of the Lake Pontchartrain	 
and Vicinity, Louisiana Hurricane Protection Project. Although	 
federally authorized, the project was a joint federal, state, and
local effort. For the levees in the project, the Corps was	 
responsible for design and construction, with the federal	 
government paying 70 percent of the costs and state and local	 
interests paying 30 percent. As requested, GAO is providing	 
information on the (1) level of protection authorized by Congress
for the Lake Pontchartrain project; (2) authorities, roles, and  
responsibilities of the Corps and local sponsors with respect to 
the operation, maintenance, repair, replacement, and		 
rehabilitation of the levees; (3) procedures in place to ensure  
that responsible parties maintain the levees in accordance with  
the authorized protection level; (4) authorities, roles, and	 
responsibilities of the Corps and local parties when levees fail 
or are damaged; and (5) plans, capabilities, and activities that 
have been developed by the Corps to ensure an adequate emergency 
response when levees fail. GAO is not making any recommendations 
at this time. The Corps is authorized to prepare for emergency	 
response when levees fail by undertaking disaster preparedness,  
advance measures, and hazard mitigation activities. The Corps'	 
New Orleans district has developed an all hazards emergency	 
response plan for the New Orleans area. 			 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-06-322T					        
    ACCNO:   A43279						        
  TITLE:     Hurricane Protection: Statutory and Regulatory Framework 
for Levee Maintenance and Emergency Response for the Lake	 
Pontchartrain Project						 
     DATE:   12/15/2005 
  SUBJECT:   Disaster relief aid				 
	     Emergency preparedness				 
	     Emergency response 				 
	     Federal regulations				 
	     Flood control					 
	     Hurricanes 					 
	     Inspection 					 
	     Intergovernmental relations			 
	     Hurricane Katrina					 
	     Lake Pontchartrain Hurricane Protection		 
	     Project						 
                                                                 
	     New Orleans (LA)					 

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GAO-06-322T

Testimony

Before the Committee on Homeland Security and Governmental Affairs, U.S.
Senate

United States Government Accountability Office

GAO

Not to Be Released Before 10:00 a.m. EST

Thursday, December 15, 2005

HURRICANE PROTECTION

Statutory and Regulatory Framework for Levee Maintenance and Emergency
Response for the Lake Pontchartrain Project

Statement for the Record by Anu K. Mittal, Director Natural Resources and
Environment

GAO-06-322T

Madam Chairman and Members of the Committee:

As you requested, this statement discusses the legislative and statutory
framework governing levee maintenance and emergency response activities
for the Lake Pontchartrain and Vicinity, Louisiana Hurricane Protection
Project. This project, first authorized in 1965, is a joint federal,
state, and local effort designed to protect the lowlands in the Lake
Pontchartrain tidal basin within the greater New Orleans area from
flooding by hurricane-induced sea surges and rainfall. As you know, the
effects of Hurricane Katrina breached some of the approximately 125 miles
of levees that are part of this project and flooded a large part of New
Orleans. The breaches raised numerous questions about the design,
construction, operation, and maintenance of the project levees and flood
walls. In addition, the human suffering and loss of life resulting from
Hurricane Katrina raised questions about the emergency response activities
taken before, during, and after the flooding.

For this statement, we did not assess the extent to which the U.S. Army
Corps of Engineers (Corps) and local sponsors have complied with the
legislative and regulatory requirements. Some aspects of these assessments
will be part of our larger ongoing review of the federal response to the
Hurricane Katrina disaster, including the levees, which we plan to report
on in 2006. Specifically, this statement discusses the (1) level of
protection authorized by Congress for the Lake Pontchartrain project; (2)
authorities, roles, and responsibilities of the Corps and local sponsors
with respect to the operation, maintenance, repair, replacement, and
rehabilitation (OMRR&R) of the levees; (3) procedures required to ensure
that responsible parties maintain the levees in accordance with the
protection level authorized by Congress; (4) authorities, roles, and
responsibilities of the Corps and local parties when levees fail or are
damaged; and (5) plans, capabilities, and activities that have been
developed by the Corps to ensure an adequate emergency response when
levees fail. To conduct this work, we obtained and reviewed applicable
laws, regulations, guidance, intergovernmental agreements, and other
documents. We interviewed Corps personnel from headquarters, the
Mississippi Valley Division, and the New Orleans District to obtain their
perspectives on these issues. We performed the work reflected in this
statement between October and December 2005 in accordance with generally
accepted government auditing standards.

In summary:

           o  The Lake Pontchartrain project was authorized in 1965 to
           protect New Orleans and the surrounding area from flooding
           associated with a "standard project hurricane." A standard project
           hurricane was expected to occur once in 200 years and represented
           the most severe combination of meteorological conditions
           considered characteristic for the region. When Congress authorized
           the Lake Pontchartrain project, the current Saffir-Simpson Scale
           used by the National Weather Service to categorize hurricanes by
           intensity did not exist. According to the Corps, a standard
           project hurricane is roughly equivalent to a fast-moving category
           3 hurricane on the Saffir-Simpson Scale.

           o  Agreements between the Corps and local sponsors of the Lake
           Pontchartrain project specify that, when a project unit is
           complete, it will be turned over to the local sponsors for
           operation, maintenance, repair, replacement, and rehabilitation.
           According to the Corps, prior to Katrina, all but three sections
           of the project that make up the Lake Pontchartrain project had
           been completed and turned over to the local sponsors for operation
           and maintenance.

           o  The Corps has the authority to repair or rehabilitate a flood
           control project if (1) deficiencies are identified that are the
           result of the original construction or (2) damage occurred from a
           flood and the project is active in the Corps' Rehabilitation
           Inspection Program. The Lake Pontchartrain project was active in
           the Rehabilitation Inspection Program prior to Hurricane Katrina.

           o  Corps district and division employees are to oversee the OMRR&R
           activities of the local sponsors through annual inspections. If,
           in the course of these oversight activities, the Corps finds that
           a local sponsor is not properly maintaining the levees, Corps
           regulations outline a series of steps that the Corps can take to
           bring the local sponsor back into compliance. These steps include
           notifying the local sponsor or state governor, or initiating legal
           action against the local sponsor if other steps do not result in
           compliance. Based on Corps inspection reports from 2001 through
           2004, all completed project units of the Lake Pontchartrain
           project were inspected annually and considered in acceptable
           condition.

           o  In the event that levees fail or are damaged, the Corps has
           authority to provide a variety of emergency response actions.
           These actions include emergency operations, such as providing
           personnel and materials needed for flood fighting, and
           rehabilitation of damaged levees.

           o  The Corps is also authorized to take actions in advance of
           disasters to ensure an adequate emergency response if levees fail.
           These actions are (1) disaster preparedness, including developing
           emergency response plans and training personnel to respond to
           emergencies; (2) advance measures, including providing supplies,
           equipment, and contracting for the construction of temporary and
           permanent flood control projects; and (3) hazard mitigation
           activities, which are intended to help prevent or reduce the
           possibility of a disaster, or reduce its damaging effects by
           identifying lessons learned after the event. Although we have not
           evaluated the Corps' efforts, Corps officials told us that they
           employed these authorities in preparing for the potential flooding
           that was predicted from Hurricane Katrina. In addition, after the
           levees were breached, the Corps used its response and
           rehabilitation authorities to provide flood-fighting assistance
           and to begin the repair and restoration of the levees.

           Since its founding in 1718, the city of New Orleans and its
           surrounding areas have been subject to numerous floods from the
           Mississippi River and hurricanes. The greater New Orleans area,
           composed of Orleans, Jefferson, St. Charles, St. Bernard, and St.
           Tammany Parishes, sits in the tidal lowlands of Lake Pontchartrain
           and is bordered generally on its southern side by the Mississippi
           River. Lake Pontchartrain, a tidal basin of some 640 square miles,
           is connected with the Gulf of Mexico through Lake Borgne and the
           Mississippi Sound.

           The greatest natural threat posed to the New Orleans area is from
           hurricane-induced storm surges, waves, and rainfalls. Because of
           this threat, a series of control structures, concrete flood walls,
           and levees was proposed for the area along Lake Pontchartrain in
           the 1960s. Congress first authorized the construction of the Lake
           Pontchartrain and Vicinity, Louisiana Hurricane Protection Project
           in the Flood Control Act of 19651 to provide hurricane protection
           to areas around the lake in Orleans, Jefferson, St. Bernard, and
           St. Charles Parishes. Although federally authorized, the project
           was a joint federal, state, and local effort. The Corps was
           responsible for project design and construction of the
           approximately 125 miles of levees, with the federal government
           paying 70 percent of the costs, and state and local interests
           paying 30 percent. Each of the four parishes protected by the
           project is associated with a local levee district that is
           generally composed of state-appointed officials and is considered
           a state entity. Specifically, Orleans Parish is associated with
           the Orleans Levee District, Jefferson Parish is associated with
           the East Jefferson Levee District, St. Bernard Parish is
           associated with the Lake Borgne Levee District, and St. Charles
           Parish is associated with the Pontchartrain Levee District. These
           levee districts are the local sponsors of the project, and their
           responsibilities include ensuring the integrity of the levee
           system in their districts throughout the year.

           Congress authorized the Lake Pontchartrain project in 1965,
           substantially in accordance with a Chief of Engineers report, to
           protect the areas around the lake from flooding caused by storm
           surge or rainfall associated with a standard project hurricane.
           For the coastal region of Louisiana, a standard project hurricane
           was expected to have a frequency of occurrence of once in about
           200 years, and represented the most severe combination of
           meteorological conditions considered reasonably characteristic for
           the region. According to the Chief of Engineers report, a standard
           project hurricane was selected as the design hurricane because of
           the urban nature of the area.2

           When Congress authorized the Lake Pontchartrain project, the 1
           through 5 scale-known as the Saffir-Simpson Scale-that is
           currently used by the National Weather Service to categorize
           hurricanes from lowest to highest intensity did not yet exist.
           According to the Corps, the standard project hurricane used for
           the Lake Pontchartrain project would roughly equal a fast-moving
           category 3 hurricane on the Saffir-Simpson Scale. In fact, the
           standard project hurricane for coastal Louisiana approximates the
           storm surge of a category 3 hurricane, the wind speed of a
           category 2 hurricane, and the barometric pressure at the center of
           a category 4 hurricane.3 Table 1 compares the coastal Louisiana
           standard project hurricane parameters to which the Lake
           Pontchartrain project was designed with the parameters for
           category 2, 3, and 4 hurricanes on the Saffir-Simpson Scale.

                                   Background

1Pub. L. No. 89-298, S: 204, 79 Stat. 1073, 1077 (1965).

                   Level of Protection Authorized by Congress

2H.R. Doc. No. 231, 89th Cong., 1st Sess. (1965).

3Barometric pressure is a key indicator of a hurricane's intensity. The
lower a hurricane's barometric pressure, the greater the wind speed and,
therefore, the storm surge.

Table 1: Comparison of Standard Project Hurricane Parameters for Coastal
Louisiana with Category 2, 3, and 4 Hurricane Parameters

               Standard project  Saffir-Simpson Saffir-Simpson Saffir-Simpson 
               hurricane for     category 2     category 3     category 4     
               coastal Louisiana hurricane      hurricane      hurricane      
Central     27.6 Hg           28.50-28.91 Hg 27.91-8.47 Hg  27.17-27.88 Hg 
pressurea                                                   
Wind speedb 100 mph           96-110 mph     111-130 mph    131-155 mph    
Radius of   30 miles          N/A            N/A            N/A            
maximum                                                     
windsc                                                      
Average     6 knots           N/A            N/A            N/A            
forward                                                     
speedc                                                      
Storm surge 11.2-13 feetd     6-8 feet       9-12 feet      13-18 feet     

Source: GAO analysis of Corps and National Oceanic and Atmospheric
Administration data.

Notes: The shaded areas indicate those parameters on the Saffir-Simpson
Scale that are most closely aligned with those for the standard project
hurricane.

aCentral pressure is measured in inches of mercury (Hg) or millibars.

bWind speed for the standard project hurricane was measured as the maximum
5-minute average wind speed. The Saffir-Simpson Scale uses the maximum
1-minute average wind speed, a lower threshold.

cThe Corps estimated the radius of maximum winds and the average forward
speed for a standard project hurricane, and the Saffir-Simpson Scale does
not take either of these parameters into account.

dThe standard project hurricane calculated maximum surge heights for
different geographic areas within the Lake Pontchartrain area. The maximum
surge height for the South Shore of Lake Pontchartrain-where the 17th
Street, London, and Industrial Canals are located-was estimated at 11.2
feet.

At landfall, which was approximately 60 miles southeast of New Orleans,
Hurricane Katrina had a central pressure of 27.17 Hg and a wind speed of
140 mph. Wind speeds in New Orleans, which was west of the eye of
Hurricane Katrina, reached just over 100 mph. According to the National
Oceanic and Atmospheric Administration's National Climatic Data Center,
data on other Hurricane Katrina parameters are not readily available for
several reasons, including the destruction of certain buildings and
monitoring equipment and would have been used to measure storm surge.

Authorities, Roles, and Responsibilities for Operating and Maintaining the
                                     Levees

Consistent with federal law, agreements between the Corps and local
sponsors of the Lake Pontchartrain project specify that local sponsors are
responsible for operation, maintenance, repair, replacement, and
rehabilitation of the levees when the construction of the project, or a
project unit, is complete.4 However, the Corps has authority to (1) repair
the project if deficiencies are the result of the original construction5
and (2) rehabilitate the project, if damage resulted from a flood and the
project is active in the Corps' Rehabilitation Inspection Program.6 Corps
district and division employees are to oversee OMRR&R activities performed
by the local sponsors on an annual basis.

Once construction of Lake Pontchartrain project units were completed, the
Corps was to transfer these project units to the local sponsors for
OMRR&R. These sponsors include the Orleans, East Jefferson, Lake Borgne,
and Pontchartrain levee districts. Although the Corps has not yet provided
us with dates on when the project units for the Lake Pontchartrain project
were completed, after Hurricane Katrina, the Corps' New Orleans District
and the Department of Defense's Task Force Guardian determined, based on
three criteria, that almost the entire Lake Pontchartrain hurricane
project had been turned over to local sponsors for ongoing OMRR&R
responsibilities. The criteria used to make this determination were (1) if
the project unit was completed in accordance with the designed level of
protection specified in the project decision document, (2) if the project
unit was being operated and maintained by the local sponsor, and (3) if
the project unit had passed the annual Inspection of Completed Works in
accordance with Corps regulations. Based on this evaluation, the task
force determined that only three project units-a bridge over the 17th
Street canal, a project unit in Jefferson Parish, and a project unit in
St. Charles Parish-had not yet been completed and turned over to the local
sponsors. Figure 1 shows the three project units that have not been
completed and turned over to the local sponsors.

433 U.S.C. S: 2213(j).

5Corps Regulation No. ER 1165-2-119.

6Corps Regulation No. ER 500-1-1.

Figure 1: Status of Completion and Turnover for Project Units in the Lake
Pontchartrain and Vicinity Project

While the assurances signed by local sponsors do not define project
completion, internal Corps regulations provide that completed projects or
completed project units will normally be turned over when all
construction, cleanup work, and testing of mechanical, electrical, and
other equipment are complete and the project is in proper condition for
the assumption of operation and maintenance by the local sponsors.7
Transfer is to be accomplished through a formal notice from the Corps to
the local sponsor that includes a transfer date determined by the Corps'
district engineers. According to Corps officials, the formal notice
generally is in the form of a letter to the local sponsor.

According to internal Corps regulations, upon transfer of a completed
project to the local sponsors, the Corps may no longer expend federal
funds on construction or project improvements.8 If the Corps determines
that unsatisfactory conditions have developed as a result of the original
levee construction, the Corps may undertake corrective action.9 For
example, a Corps district official responsible for operations and
maintenance oversight told us that if settlement of a completed levee
occurs, this is not considered a design or construction flaw. Instead,
this is considered a condition that should be addressed by the local
sponsors as part of their normal operations and maintenance
responsibilities.

Local sponsors' responsibilities for OMRR&R of the completed portions of
the Lake Pontchartrain project were established through local assurances
signed by the levee districts and the Corps. For the Lake Pontchartrain
hurricane project as constructed, these assurances were signed, and
subsequently accepted by the federal government for the Orleans Levee
District on June 21, 1985; the Pontchartrain Levee District on August 7,
1987; the East Jefferson Levee District on December 21, 1987; and the Lake
Borgne Basin Levee District on December 7, 1977. The formal assurances
commit the local sponsors to, among other things, operate and maintain all
features of the project in accordance with Corps regulations. Also, in
accordance with internal Corps regulations, the Corps is required to
provide local sponsors with an operations and maintenance manual at the
time of, or at the earliest practicable date after, the transfer of OMRR&R
responsibilities from the Corps to local sponsors for a completed project
or project unit. The manual is intended to assist the responsible local
authorities in carrying out their operation and maintenance obligations.
According to Corps officials, the OMRR&R responsibilities for levees are
straightforward, and the manual that the Corps provides local sponsors is
a one-page document that outlines the requirements as described by federal
regulations.10 Specifically, federal regulations require local sponsors to
ensure that the structure is operating as intended and to continuously
patrol the structure during flood periods to ensure that no conditions
exist that might endanger the structure and to take immediate steps to
control any condition that might endanger it. For maintenance, the
regulations require local sponsors to ensure at all times that the
structure is serviceable in times of flood. The regulations also require
periodic inspections and maintenance measures, including the following:

7Corps Regulation No. ER 1150-2-301.

8Corps Regulation No. ER 1150-2-301.

9Corps Regulation No. ER 1165-2-119.

           o  promoting the growth of sod, including routine mowing of the
           grass and weeds;

           o  exterminating burrowing animals;

           o  removing drift material or wild growth from the levee (such as
           brush and trees); and

           o  repairing any damage to the levee caused by erosion.

           Repair, replacement, and rehabilitation are also considered part
           of the local sponsors' maintenance responsibilities, as outlined
           in internal Corps regulations. Repair refers to routine activities
           that maintain the project in well-kept condition; replacement
           refers to replacing worn-out elements; and rehabilitation refers
           to activities necessary to bring a deteriorated project back to
           its original condition. According to internal Corps' regulations,
           local sponsors' maintenance is considered to be deficient when
           these requirements have not fulfilled.11

           Corps employees are to oversee local sponsors' OMRR&R activities
           to ensure compliance and project integrity. Corps employees are
           required to work directly with local sponsors to conduct annual
           compliance inspections; review local sponsors' semiannual
           compliance reports; and respond to engineering concerns,
           maintenance questions, and reports of problems. A Corps district
           official responsible for operations and maintenance oversight told
           us that generally the Lake Pontchartrain project's local sponsors
           have performed their operations and maintenance responsibilities
           as required and have been responsive to the Corps' concerns.
           Because the New Orleans district is part of the Mississippi Valley
           Division of the Corps, the division also has responsibility for
           managing and overseeing the periodic inspections conducted by
           district engineers; reviewing and approving district engineers'
           inspection reports; maintaining a database of information on
           inspections and remedial measures taken; and receiving annual
           OMRR&R summary reports from the districts under its command,
           aggregating these reports, and sending them to Corps headquarters.

           Federally authorized flood control projects, such as the Lake
           Pontchartrain project, are eligible for 100 percent federal
           rehabilitation if damaged by a flood as long as these projects are
           active in the Corps' Rehabilitation Inspection Program
           (rehabilitation program).12 To maintain active status in this
           program, the Lake Pontchartrain project's levees are required to
           pass an annual OMRR&R inspection conducted jointly by the Corps,
           the local sponsor, the state Department of Transportation and
           Development, and other stakeholders, as appropriate.13 According
           to the Corps' inspection reports from 2001 through 2004, all
           completed project units of the Lake Pontchartrain project were
           inspected each year and had received an acceptable rating.

           Both local sponsors and the Corps are required to conduct
           oversight activities to ensure that levees are properly
           maintained. If, in the course of these oversight activities, the
           Corps finds that the local sponsors are not properly maintaining
           the levees, internal Corps regulations outline a series of steps
           that the Corps can take until the local sponsor comes into
           compliance.

           Federal regulations require that local levee districts are to
           appoint a permanent committee, headed by a superintendent, that
           will be responsible for all levee operation and maintenance
           activities and inspections of federally constructed flood control
           projects.14 The superintendent of the levee district is
           responsible for performing periodic inspections of the levee to
           ensure that routine maintenance responsibilities have been
           effectively completed and that no hazards to the levee exist.
           Typically, these inspections take place prior to the flood or
           hurricane season, immediately following a high-water period, and
           at other intermediate periods throughout the year. During an
           inspection, the superintendent is required to examine and be
           certain, among other things, that

           o  drainage systems are in good working condition and not becoming
           clogged;

           o  no unusual settlement or material loss of grade or levee cross
           section has taken place;

           o  cattle guards and gates are in good condition;

           o  the protective walls surrounding the levee have not been washed
           out or removed;

           o  the levee crown is shaped to drain readily;

           o  no unauthorized vehicular traffic or cattle grazing has
           occurred;

           o  no water seepage or saturated areas are occurring; and

           o  levee access roads are being properly maintained.

           If, during these inspections, the superintendent discovers any
           levee portion to be in substandard condition, it is the levee
           district's responsibility to take immediate actions to correct the
           inadequacy. The superintendent is required to submit a report
           twice a year to the Corps District Engineer covering inspection,
           maintenance, and operation activities of the levee district. At
           this time, we have not examined the extent to which these steps
           were taken by the local sponsors, and the Corps has not provided
           us any documentation of such activities.

           The Corps is responsible for overseeing the OMRR&R activities of
           the Lake Pontchartrain project's local sponsors through an annual
           compliance inspection program-known as the Inspection of Completed
           Works program-and reviewing the local sponsors' semiannual reports
           on OMRR&R activities submitted to the district office. According
           to internal Corps regulations, the primary purposes of the
           Inspection of Completed Works program are to prevent loss of life
           and catastrophic damages, preserve the value of the federal
           investment, and encourage local sponsors to bear responsibility
           for their own protection. According to Corps officials, for the
           Lake Pontchartrain project, the New Orleans District typically
           completes this annual compliance inspection prior to the hurricane
           season, in mid-May to early-June of each year. Our review of Corps
           inspection reports for 2001 through 2004 indicate that while
           inspections of the Lake Pontchartrain hurricane protection levees
           in the Orleans and St. Bernard Parishes were generally conducted
           in May of each year, the inspections of the levees in Jefferson
           and St. Charles Parishes were generally conducted in the September
           to November timeframe.15 According to the Corps, these inspections
           are to cover the following items:

           o  level of protection,

           o  erosion control,

           o  slope stability,

           o  animal control,

           o  unwanted vegetative growth,

           o  concrete surfaces, and

           o  structural foundations.

           Based on the results of these inspections, the district and
           division are to characterize the inspected units on a scale from 1
           to 3, where 1 means that the project units have been maintained in
           accordance with the agreement between the Corps and the local
           sponsors and are expected to perform as designed, and 3 means that
           the project units have maintenance deficiencies such that the
           project would probably fail during floods of project design or
           lesser magnitudes. Within 120 days of an inspection, the district
           is expected to prepare an inspection report and provide it to its
           commanding unit. For example, the New Orleans District should
           prepare an inspection report for the Lake Pontchartrain project
           and forward it to the Mississippi Valley Division for review and
           approval. Reports that indicate maintenance deficiencies are also
           to be submitted annually to headquarters. All of the completed
           units of the Lake Pontchartrain hurricane levees passed with an
           acceptable rating for the period 2001 through 2004.

           If a project receives a rating of 3 as a result of an inspection,
           internal Corps regulations16 outline a progression of steps that
           the Corps can take to ensure that local sponsors fulfill their
           OMRR&R responsibilities and bring the levees back up to the
           designed level of protection. The steps are as follows:

           o  Notify the sponsor orally of the deficiencies.

           o  Notify the sponsor in writing.

           o  Write a letter to the governor and the appropriate state
           agencies-which, in the case of the Lake Pontchartrain project, is
           the Department of Transportation and Development in Louisiana-to
           enlist state participation to resolve the problem.

           o  Notify the Federal Emergency Management Agency (FEMA) of the
           condition of the project.

           o  If acceptable actions are not taken by the nonfederal sponsor,
           take actions to remove the project from eligibility for federal
           emergency rehabilitation.

           o  Initiate legal action against the local sponsor to enforce
           OMRR&R obligations as outlined in local assurances.

           o  Transmit a report to the Congress recommending authorization of
           a new sponsor or reauthorization of the project along with
           measures to eliminate hazards.

           Although not documented in the annual inspection reports,
           according to Corps officials, almost all past Lake Pontchartrain
           project deficiencies have been resolved upon oral notification of
           the local levee district. The official responsible for the
           Inspection of Completed Works program in New Orleans only could
           recall one or two instances when the Corps wrote a letter to a
           local sponsor requesting that the sponsor commit resources to
           repair a deficiency, which resulted in full compliance by the
           local sponsor. Internal Corps regulations specifically prohibit
           the use of federal funds to correct problems caused by a lack of
           adequate local maintenance.

           The Corps has authority to provide a variety of emergency response
           actions when levees fail or are damaged. Section 5 of the Flood
           Control Act of 1941, as amended, commonly referred to as Public
           Law 84-99, authorizes the Corps to conduct emergency operations
           and rehabilitation activities when levees fail or are damaged.17
           In addition, under the Robert T. Stafford Disaster Relief and
           Emergency Assistance Act (Stafford Act), as amended, the Corps and
           other federal agencies may be tasked by FEMA to provide disaster
           response, recovery, and mitigation assistance to state and local
           governments.18 Furthermore, a Department of Defense Manual for
           Civil Emergencies assigns responsibilities, prescribes procedures,
           and provides guidance by which the Department of Defense responds
           to all hazards in accordance with the Stafford Act.19 Although we
           have not evaluated the Corps' efforts, Corps officials told us
           that after the levees were breached the Corps used its response
           and rehabilitation authorities to provide flood-fighting
           assistance and to begin the repair and restoration of the levees.
           State and local roles and responsibilities when levees fail are
           similar to the Corps' responsibilities and are also described in
           federal regulations.20

           Public Law 84-99 authorizes the Corps to conduct emergency
           operations and rehabilitation activities when levees fail or are
           damaged during storms or other events. Federal regulations specify
           that assistance is limited to providing emergency assistance to
           save lives and protect property, such as public
           facilities/services and residential, commercial, or industrial
           developments.21 This emergency assistance may be provided during
           and following a flood or coastal storm. However, under federal
           regulations, nonfederal interests must fully utilize their own
           resources, including manpower, supplies, equipment, and funds
           before Corps assistance may be provided.22 The National Guard, as
           part of the state's resources when it is under state control, must
           be fully utilized as part of the nonfederal response. According to
           federal regulations, the Corps is not to use funds to reimburse
           local authorities for the costs of these emergency activities.23

           To implement flood response operation authorities under Public Law
           84-99, internal Corps regulations specify that Corps district
           commanders must issue a Declaration of Emergency. The Declaration
           of Emergency may initially be verbal, but must be made in writing
           and reported in the district's situation report within 24 hours.
           Authority to issue a Declaration of Emergency has been delegated
           to deputy district engineers and includes all supervisors in the
           chain of command, from the district commander to the chief of
           emergency management.

           Emergency operations include flood response and postflood response
           activities.

           o  Flood response includes activities such as flood fighting and
           rescue operations. These activities include providing technical
           assistance, such as review and recommendations in support of state
           and local efforts and help determining feasible solutions to
           uncommon situations, and direct assistance by

                        o  issuing supplies;

                        o  conducting rescue operations;

                        o  directing flood-fighting operations; and

                        o  contingency contracting for emergency operations.

           Corps assistance during flood-fighting operations is to be
           temporary to meet the immediate threat and to supplement state and
           local efforts. This assistance is not intended to provide
           permanent solutions to flood problems and should be terminated
           when the emergency is over-for example, when flood waters have
           receded sufficiently.
           o  Postflood response includes emergency debris removal, temporary
           restoration of critical transportation routes and public services
           and utilities, and after action review and reporting.

           Rehabilitation activities include the repair and restoration of
           eligible flood control projects and federally constructed
           hurricane or shore protection projects. Rehabilitation assistance
           is limited to federal and nonfederal flood control works that are
           in active status-those found to be properly maintained during
           inspections-in the Corps' Rehabilitation Inspection Program at the
           time of the hurricane, storm, or flood event.24 Rehabilitation
           assistance is limited to repair or restoration of a flood control
           work to its predisaster condition and level of protection (e.g.,
           the actual elevation of the levee, allowing for normal
           settlement).25 Any damage to federally constructed levees are
           repaired with 100 percent of the cost borne by the federal
           government; and damage to nonfederally constructed levees are
           repaired with 80 percent of the cost borne by the federal
           government and 20 percent by the local sponsor.26 Because the Lake
           Pontchartrain project is federally constructed and was active in
           the Corps' Rehabilitation Inspection Program, the Corps is
           authorized to rehabilitate any levees that failed or were damaged
           as a result of Hurricane Katrina, using this authority.
           Additionally, in the aftermath of Hurricane Katrina, the Assistant
           Secretary of the Army for Civil Works agreed to rehabilitate all
           of the damaged Lake Pontchartrain and other hurricane and flood
           control structures in the New Orleans area without any local cost
           share, under emergency authority provided in statute.27 Further,
           the federal government will fund the acquisition of lands,
           easements, rights-of-way, and disposal or borrow areas not owned
           or under control of the nonfederal sponsor, as well as the
           performance of relocations, that are needed for the rehabilitation
           and that are normally local responsibilities. The Corps estimates
           that funding these activities for the Lake Pontchartrain project
           will cost the federal government an additional $10 million and
           over $248 million in total for all damaged levee systems in the
           New Orleans area.

           The Stafford Act, as amended, authorizes federal agencies,
           including the Corps, to take emergency response actions when the
           President has issued a major disaster declaration. Under the act,
           a presidential declaration may be made after receiving a request
           from the governor of the affected state.28 FEMA, within the
           Department of Homeland Security, is responsible for administering
           the major provisions of the Stafford Act. Actions taken under this
           authority include disaster response, recovery, and mitigation
           assistance to supplement state and local efforts.

           To meet its obligations for emergency response, the Department of
           Homeland Security developed a National Response Plan, which
           describes the roles and responsibilities of various federal
           agencies.29 Within the National Response Plan, the Department of
           Defense has responsibility for Emergency Support Function
           #3-Public Works and Engineering. The plan designates the Corps as
           the operating agent for this function, to include planning,
           preparedness, and response, with assistance to be provided by
           other branches of the Department of Defense, as needed.

           The National Response Plan lists the following activities for the
           Corps:

           o  coordination and support of infrastructure risk and
           vulnerability assessments;

           o  participation in preincident activities, such as prepositioning
           assessment teams and contractors;

           o  participation in postincident assessments of public works and
           infrastructure to help determine critical needs and potential work
           loads;

           o  implementation of structural and nonstructural mitigation
           measures to minimize adverse effects or fully protect resources
           prior to an incident;

           o  execution of emergency contracting support for life-saving and
           life-sustaining services, to include providing potable water, ice,
           emergency power, and other emergency commodities and services;

           o  providing assistance in monitoring and stabilizing damaged
           structures, and demolishing structures designated as immediate
           hazards to public health and safety, and providing structural
           specialist expertise to support inspection of mass care facilities
           and urban search and rescue operations;

           o  providing emergency repair of damaged infrastructure and
           critical public facilities, and supporting the restoration of
           critical navigation, flood control, and other water infrastructure
           systems;

           o  managing, monitoring, and providing technical advice in the
           clearance, removal, and disposal of debris from public property
           and the re-establishment of ground and water routes into impacted
           areas; and

           o  implementing and managing FEMA's Public Assistance Program and
           other recovery programs involving federal, state, and tribal
           officials, including efforts to permanently repair, replace, or
           relocate damaged or destroyed public facilities and
           infrastructure.

           A Department of Defense Manual For Civil Emergencies assigns
           responsibilities, prescribes procedures, and provides guidance by
           which the Department of Defense responds to all hazards in
           accordance with the Stafford Act. The policy states that
           commanders may conduct disaster relief operations when a serious
           emergency or disaster is so imminent that waiting for instructions
           from higher authority would preclude effective response. According
           to the policy, commanders may do what is required and justified to
           save human life, prevent immediate human suffering, or lessen
           major property damage or destruction. Action taken in accordance
           with the policy is limited to 10 days. A Corps commander providing
           assistance to civil authorities under this guidance is not
           required to obtain an agreement for reimbursement from the
           requesting agency before providing assistance.

           The Corps is authorized by Public Law 84-99 to prepare for
           emergency response when levees fail by undertaking disaster
           preparedness, advance measures, and hazard mitigation activities.
           Although we have not evaluated the Corps' efforts, Corps officials
           told us that they took action in advance of Hurricane Katrina to
           prepare for the potential flooding that was predicted. As part of
           this effort, according to Corps officials, the Corps' New Orleans
           district used a draft hurricane preparedness plan for the New
           Orleans area.

           Corps division and district commanders are responsible for
           providing immediate and effective response and assistance prior
           to, during, and after emergencies and disasters. Although we have
           not reviewed the extent to which the Corps undertook these
           initiatives during the Katrina disaster, the Corps is responsible
           for the following:

           The Corps may take advance measures prior to a flooding event to
           protect against loss of life and significant damages to urban
           areas and public facilities.30 In the case of imminent danger of
           levee failure or overtopping, the Corps can also take corrective
           actions to ensure the stability, integrity, and safety of the
           levee.31 Advance measures include the following:

                        1. Creating an emergency management organization.
                        Division and district commanders are expected to
                        provide adequate staffing for a readiness/emergency
                        management organization to accomplish the
                        preparedness mission. In addition, divisions and
                        districts should have teams readily available to
                        provide assistance under the Corps' authorities for
                        flood emergencies and other natural disasters;
                        execute responsibilities and missions under the
                        Stafford Act and the National Response Plan; staff a
                        Crisis Management Team, consisting of an Emergency
                        Manager and senior representatives from technical and
                        functional areas to provide guidance and direction
                        during emergency situations; and staff a Crisis
                        Action Team, consisting of the personnel necessary to
                        operate an emergency operations center.
                        2. Establishing and maintaining plans and procedures.
                        Corps headquarters, divisions, and districts are
                        expected to prepare and maintain plans for
                        emergencies and disasters, establishing an alternate
                        emergency operations center, and reconstituting the
                        district. These operation plans should cover
                        emergency/disaster assistance procedures under all
                        applicable authorities and potential mission
                        assignments. Each division and district should have,
                        at a minimum, an operation plan that provides
                        procedures for generic disasters within the division
                        and district. The plan should include general topics,
                        such as activating, staffing, and operating the
                        emergency operations center; reporting requirements;
                        notification and alert rosters; and organizing for
                        response to disasters. The plan should also have one
                        or more appendixes that specifically address the
                        disasters most likely to impact the division and
                        district. Operation plans are reviewed and updated
                        annually to reflect administrative changes. The
                        division/district's generic or principal disaster
                        operation plan is supposed to be reviewed, revised,
                        and republished biennially.
                        3. Training personnel for response. Divisions and
                        districts are expected to ensure that personnel who
                        are assigned emergency assistance responsibilities
                        have been properly trained.
                        4. Conducting exercises. Exercises are to be
                        conducted at least once every two years, consistent
                        with available funding. This requirement may be
                        waived if an actual emergency response was conducted
                        during the two-year period that was of sufficient
                        magnitude to have adequately trained emergency team
                        members and other personnel.
                        5. Establishing adequate command and control
                        facilities. Divisions, districts, and other Corps
                        groups should provide a dedicated facility for an
                        emergency operations center that will be able to
                        provide command and control for emergency/disaster
                        response and recovery activities.
                        6. Maintaining supplies, tools, and equipment.
                        Divisions and districts are expected to maintain
                        equipment and supplies that can be readily available
                        for use by the emergency operations center, disaster
                        field offices, disaster field teams, planning
                        response teams, and similar entities. Equipment
                        should be stockpiled for use during emergency
                        operations and exercises.
                        7. Managing inspections of flood control projects.
                        The Corps is responsible for ensuring that the levees
                        are properly maintained to perform as designed during
                        flood events.

                        1. Technical assistance: providing technical review,
                        advice, and recommendations to state and local
                        agencies before an anticipated flood event. For
                        example, the Corps may provide personnel to inspect
                        existing flood control works to identify potential
                        problems and solutions, evaluate conditions to
                        determine the requirements for additional flood
                        control protection, and recommend the most expedient
                        construction methods; provide hydraulic, hydrologic,
                        and geotechnical analysis; and provide information
                        readily available at Corps districts to local
                        entities for use in the preparation of local
                        evacuation and contingency flood plans.
                        2. Direct assistance: providing supplies, equipment,
                        and contracting for the construction of temporary and
                        permanent flood control projects. Examples of
                        emergency contracting work include the construction
                        of temporary levees; the repair, strengthening, or
                        temporary raising of levees or other flood control
                        works; shore protection projects; and removal of
                        stream obstructions, including channel dredging of
                        federal projects to restore the design flow.

           Advance measures taken by the Corps are intended to supplement
           ongoing or planned state and local efforts, and are designed to
           deal with a specific threat. To implement advanced measures, the
           governor should make a written request to the Corps. The local
           sponsor for the advance measure assistance must agree to execute a
           cooperative agreement and, at no cost to the Corps, when the
           operation is over, remove all temporary work constructed by the
           Corps or agree to upgrade the work to standards acceptable to the
           Corps. In addition, the local sponsor is responsible for providing
           traditional items of local cooperation, such as lands, easements,
           rights-of-way, and disposal areas necessary for the work. Advance
           measures assistance is temporary and must be terminated no later
           than when the flood threat ends.

           Hazard mitigation activities are intended to help prevent or
           reduce the possibility of a disaster or reduce its damaging
           effects. The Corps is required to participate on a FEMA-led hazard
           mitigation team to identify postdisaster mitigation opportunities
           and establish a framework for recovery. According to the Corps'
           hazard mitigation policy, division commanders are to appoint
           primary and alternate representatives to serve on the hazard
           mitigation team; establish procedures for quick and effective
           response to the requirements of the team; ensure essential
           information and data necessary to assess mitigation opportunities
           are available or capable of being obtained quickly; ensure
           division hazard mitigation team representatives are trained in
           flood hazard mitigation concepts and techniques; and provide
           reports to FEMA and Corps headquarters. Recommendations of the
           hazard mitigation team are intended to reduce or avoid federal
           expenditures resulting from flood situations.32

           The Corps' New Orleans District has a draft hurricane preparedness
           plan that defines the district's role and responsibilities in the
           event of an emergency due to a hurricane.33 The plan outlines the
           essential functions of the district before, during, and after a
           hurricane. These functions include pre-event planning,
           organization, response, and recovery in order to minimize the
           potential hazards to life and property. As part of this plan, the
           district defines emergency organizational staffing to support
           emergency operations. Selected personnel are assigned to specific
           teams or offices that, in the event of a disaster, are to provide
           the necessary liaison with federal, state, or local emergency
           management agencies; make decisions relative to Corps'
           capabilities and assignments; perform preliminary damage
           assessments; or accomplish specific missions. According to the
           plan, a New Orleans District Emergency Operations Center should be
           staffed to respond to an emergency, and the center is to become
           the focal point for collecting data, analyzing situations,
           allocating resources, furnishing reports to higher headquarters,
           and providing overall management and control of all district
           activities. With the activation of the emergency operations
           center, a crisis management team becomes responsible for
           coordinating and directing district activities in the crisis
           situation. A crisis action team is responsible for executing the
           activities as directed by the crisis management team. According to
           the plan, if a slow-moving category 3 or higher hurricane is
           approaching the area, the team should be activated and deployed at
           the direction of the commander. The plan does not contain any
           specific guidance on how the district would respond to a levee
           failure.

           In closing, Madam Chairman, the legislative and regulatory
           framework guiding the operations and maintenance of the levees
           divides this responsibility among a number of partners, depending
           upon specific circumstances. Similarly, the responsibilities for
           emergency preparedness and response are dependent on a variety of
           laws and regulations. As a result, the regulatory framework for
           these activities is complex and oftentimes unclear. Whether these
           responsibilities were appropriately fulfilled or played a role in
           the flooding of New Orleans in the wake of Hurricane Katrina in
           August 2005 is still to be determined.

           For further information on this testimony, please contact Anu
           Mittal at (202) 512-3841 or mittala@gao.gov. Individuals making
           contributions to this testimony included Ed Zadjura, Assistant
           Director; Allison Bawden; Kevin Bray; Kisha Clark; John Delicath;
           Doreen Feldman; Jessica Marfurt; Barbara Patterson; and Barbara
           Timmerman.

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1033 C.F.R. S: 208.10. According to Corps officials, the Corps has
provided local sponsors with specific operations and maintenance manuals
for the Bienvenue and Dupre floodgate structures in the Lake Pontchartrain
project.

11Corps Regulation No. ER 1130-2-530.

            Procedures to Ensure That Levees Are Properly Maintained

Local Sponsors' Oversight Activities

12Locally authorized flood control projects can also participate in the
rehabilitation program. If active, locally authorized projects are damaged
in a flood emergency, the cost of rehabilitation is shared between the
local authority and the federal government-20 percent and 80 percent,
respectively. 33 C.F.R. S: 203.82(f).

13For projects other than levees that have mechanical or electrical parts,
such as locks, floodgates, drainage structures, and pumping stations,
periodic engineering inspections are also performed.

1433 C.F.R. S: 208.10(a)(2).

The Corps' Oversight Activities

15According to Corps officials, the majority of the protection in the
Jefferson and St. Charles Parishes is flood protection along the
Mississippi River as opposed to hurricane protection. Therefore,
inspections are done prior to the high-water period on the Mississippi
River.

16Corps Regulation No. ER 1130-2-530.

           Authorities, Roles, and Responsibilities When Levees Fail

Public Law 84-99

1733 U.S.C. S: 701n. The Corps' administrative policies, guidance, and
operating procedures for natural disaster preparedness, response, and
recovery activities are set out in 33 C.F.R. part 203.

1842 U.S.C. S: 5121 et seq.

19DOD 3025.1-M (June 1994).

2033 C.F.R. S: 203.14.

2133 C.F.R. S: 203.32. The regulations also specify that the Corps is not
authorized to provide assistance to individual homeowners and businesses.

2233 C.F.R. S: 203.14.

2333 C.F.R. S: 203.32.

2433 C.F.R. S: 203.41.

25Corps Regulation No. ER 500-1-1.

26Corps Regulation No. ER 500-1-1.

Stafford Act

2733 U.S.C. S: 701n. According to the Corps, local sponsors requested that
the Corps undertake this work at full federal expense due to the
unprecedented damage and impacts to local governments and the inability of
the local sponsors to finance their share of the costs. According to the
Corps, the Assistant Secretary of the Army for Civil Works approved the
request with the concurrence of the Office of Management and Budget and
notified the House and Senate Appropriations Subcommittees on Energy and
Water Development.

2842 U.S.C. S: 5170.

29The Department of Homeland Security developed the National Response Plan
in response to a presidential directive, HSPD-5.

Department of Defense Manual for Civil Emergencies

                     Planned Emergency Response Activities

Disaster Preparedness

Advance Measures

30Corps Regulation Nos. ER 500-1-1 and EP 500-1-1.

Hazard Mitigation

31Corps Regulation Nos. ER 500-1-1 and EP 500-1-1.

New Orleans District's Hurricane Preparedness Plan

32Corps Regulation No. ER 500-1-1.

33The district's hurricane preparedness plan is in draft form. According
Corps officials, however, the draft plan was used to prepare and respond
to Hurricane Katrina. Corps District Regulation No. DR 500-1-3.

                     GAO Contact and Staff Acknowledgments

(360646)

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Highlights of GAO-06-322T, a statement for the record to the Committee on
Homeland Security and Governmental Affairs, U.S. Senate

December 15, 2005

HURRICANE PROTECTION

Statutory and Regulatory Framework for Levee Maintenance and Emergency
Response for the Lake Pontchartrain Project

The greatest natural threat posed to the New Orleans area is from
hurricane-induced storm surges, waves, and rainfalls. To protect the area
from this threat, the U.S. Army Corps of Engineers (Corps) was authorized
by Congress in 1965 to design and construct a system of levees as part of
the Lake Pontchartrain and Vicinity, Louisiana Hurricane Protection
Project. Although federally authorized, the project was a joint federal,
state, and local effort. For the levees in the project, the Corps was
responsible for design and construction, with the federal government
paying 70 percent of the costs and state and local interests paying 30
percent.

As requested, GAO is providing information on the (1) level of protection
authorized by Congress for the Lake Pontchartrain project; (2)
authorities, roles, and responsibilities of the Corps and local sponsors
with respect to the operation, maintenance, repair, replacement, and
rehabilitation of the levees; (3) procedures in place to ensure that
responsible parties maintain the levees in accordance with the authorized
protection level; (4) authorities, roles, and responsibilities of the
Corps and local parties when levees fail or are damaged; and (5) plans,
capabilities, and activities that have been developed by the Corps to
ensure an adequate emergency response when levees fail.

GAO is not making any recommendations at this time.

Congress authorized the Lake Pontchartrain project to protect the New
Orleans area from flooding caused by storm surge or rainfall associated
with a hurricane that had the chance of occurring once in 200 years. This
was termed as the "standard project hurricane" and represented the most
severe combination of meteorological conditions considered reasonable for
the region. As hurricanes are currently characterized, the Corps' standard
project hurricane approximately equals a fast-moving category 3 hurricane,
according to the Corps.

Agreements between the Corps and four New Orleans levee districts-the
local sponsors for the Lake Pontchartrain project-specify that the local
sponsors are responsible for operation, maintenance, repair, replacement,
and rehabilitation of the levees after construction of the project, or a
project unit, is complete. Pre-Katrina, according to the Corps, most of
the levees included in the Lake Pontchartrain project had been completed
and turned over to the local sponsors for operations and maintenance. The
Corps has authority to repair or rehabilitate completed flood control
projects if (1) deficiencies are related to the original construction or
(2) damage is caused by a flood and the project is active in the Corps'
Rehabilitation Inspection Program. According to internal Corps
regulations, federal funds cannot be used for regular operations and
maintenance activities.

Both local sponsors and the Corps are required to conduct regular
inspections to ensure that levees are properly maintained. If the Corps
finds that local sponsors are not properly maintaining the levees,
internal Corps regulations outline a series of steps, such as notifying
the governor or taking legal action, that the Corps can take to bring the
local sponsor in to compliance. Corps inspection reports for 2001-2004
indicate that the completed portions of the Lake Pontchartrain project
were maintained at an acceptable level.

When levees fail or are damaged, the Corps has authority to provide a
variety of emergency response actions. Specifically, the Corps is
authorized to undertake emergency operations and rehabilitation activities
and, if tasked by the Federal Emergency Management Agency, to provide
disaster response, recovery, and mitigation assistance to state and local
governments, as needed. In addition, a Department of Defense manual
assigns responsibilities, prescribes procedures, and provides guidance for
responding to hazards. State and local roles and responsibilities when
levees fail are similar to the Corps' responsibilities and are described
in federal regulations.

The Corps is authorized to prepare for emergency response when levees fail
by undertaking disaster preparedness, advance measures, and hazard
mitigation activities. The Corps' New Orleans district has developed an
all hazards emergency response plan for the New Orleans area.
*** End of document. ***