[House Report 110-725]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 110-725
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PRE-DISASTER MITIGATION ACT OF 2008
_______
June 19, 2008.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Oberstar, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 6109]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 6109) to amend the Robert T.
Stafford Disaster Relief and Emergency Assistance Act to
reauthorize the pre-disaster hazard mitigation program, and for
other purposes, having considered the same, report favorably
thereon without amendment and recommend that the bill do pass.
Purpose of the Legislation
H.R. 6109, the ``Pre-Disaster Mitigation Act of 2008'',
reauthorizes the Pre-Disaster Mitigation (``PDM'') program for
three years, at a level of $250 million for each of fiscal
years 2009 through 2011. The bill increases the minimum amount
that each State can receive under the program from $500,000 to
$575,000, and codifies the competitive selection process of the
program as currently administered by the Federal Emergency
Management Agency (``FEMA'').
Background and Need for Legislation
In the 1990s, under the leadership of FEMA Administrator
James Lee Witt, FEMA developed a pre-disaster mitigation pilot
program known as ``Project Impact''. Congress appropriated
funds for Project Impact in each of fiscal years 1997 through
2001. The Pre-Disaster Mitigation program is the successor to
the Project Impact pilot program.
The PDM program was first authorized in the Disaster
Mitigation Act of 2000 (P.L. 106-390).\1\ The program is
administered by FEMA through its Mitigation Division. It is
authorized under section 203 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (``Stafford Act'').\2\
Pursuant to section 203(m) of the Stafford Act, the PDM program
terminates on September 30, 2008, unless Congress reauthorizes
the program.\3\
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\1\Section 102 of P.L. 106-390.
\2\42 U.S.C. 5133.
\3\Section 203(m) of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act; 42 U.S.C. 5133(m).
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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 costs of PDM projects is
up to 75 percent, or up to 90 percent for small or impoverished
communities.
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\4\Section 203(f) of the Stafford Act; 42 U.S.C. 5133(f).
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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\
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\5\Potential Cost Savings from the Pre-Disaster Mitigation Program,
Congressional Budget Office, September 2007, p. 1.
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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, an advisory body of the National Institute
of Building Sciences, found ``that a dollar spent on mitigation
saves society an average of $4.''\6\ The Council found that
flood mitigation measures yield even greater savings.\7\
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\6\Natural Hazard Mitigation Saves: An Independent Study to Assess
the Future Savings from Mitigation Activities, Multihazard Mitigation
Council, National Institute of Building Sciences, 2005, p. 5. Congress
mandated this report pursuant to the Departments of Veterans Affairs,
Housing and Urban Development, and Independent Agencies Appropriations
Act of 2000; Senate Report 106-161.
\7\Id.
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Pursuant to section 209 of the Disaster Mitigation Act of
2000, as amended, the Congressional Budget Office (``CBO'')
completed a study in September 2007 estimating the reduction in
Federal disaster assistance that is likely to result from the
PDM program.\8\ CBO estimated that PDM-funded projects from
2004 to June 2007 had total costs of almost $500 million and
that the reduction in future losses associated with those
projects is $1.6 billion (present value).\9\ According to CBO,
``on average, future losses are reduced by about $3 (measured
in discounted present value) for each $1 spent on those
projects, including both federal and nonfederal spending.''\10\
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\8\Potential Cost Savings from the Pre-Disaster Mitigation Program,
Congressional Budget Office, September 2007, p. 1.
\9\Id., p. 2.
\10\Id., p. 1.
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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 2008''.
Section 2. Pre-Disaster Hazard Mitigation
Subsection (a) amends Section 203(f) of the Stafford Act.
This subsection increases the minimum allocation that each
State receives from $500,000 under current law to $575,000, but
maintains that each State shall receive the lesser of this
amount or one percent of the total funds appropriated for the
fiscal year. The section codifies the competitive aspects of
the program as currently administered by FEMA, and retains a
provision that any State may not receive more than 15 percent
of the total funds appropriated for the fiscal year.
Subsection (b) authorizes appropriations for the Pre-
Disaster Mitigation program of $250,000,000 for each of fiscal
years 2009, 2010, and 2011. This subsection also eliminates the
provision in Section 203(m) of the Stafford Act to sunset the
PDM program on September 30, 2008.
Subsection (c) changes references in Section 203 of the
Stafford Act from ``Predisaster'' to ``Pre-Disaster,''
consistent with how FEMA refers to the program.
Additional Matters
On April 30, 2008, the Subcommittee on Economic
Development, Public Buildings, and Emergency Management held a
hearing on FEMA's Pre-Disaster Mitigation program. At this
hearing, there was a discussion of the important role of
building codes in reducing damage to buildings from natural
hazards. The Committee reminds FEMA that adoption and
enforcement of appropriate building codes should be considered
under section 203(g)(2).
At the hearing, emergency management representatives also
suggested that private non-profits (``PNPs'') be allowed to be
sub-applicants and sub-grantees for the Pre-Disaster Mitigation
program, when local governments do not have the resources to
perform this function on behalf of the PNPs. The Committee is
not aware of any specific cases of this problem, and believes
that if a local government is unable to serve as the sub-
applicant and sub-grantee on behalf of an PNP, an appropriate
State agency may do so on its behalf.
One of the few criticisms of the Pre-Disaster Mitigation
program has been the time that it takes for FEMA to obligate
PDM funds.\11\ The Committee notes that FEMA is taking steps to
streamline grant processes and encourages FEMA to use all
appropriate flexibility. The Committee reminds the Department
of Homeland Security that Congress specifically exempted the
Pre-Disaster Mitigation Program from grant administration and
other requirements imposed in P.L. 110-53, the ``Implementing
Recommendations of the 9/11 Commission Act of 2007'', to avoid
additional administrative requirements that would slow down the
disbursement of funds.
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\11\Congressional Research Service, Pre-Disaster Mitigation
Program, Francis X. McCarthy, June 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 develop a streamlined application process and continue
to seek ways by which small communities can make the most
efficient use of their limited resources during the application
process.
The Committee recognizes that some communities have less
capability than others to develop competitive hazard mitigation
applications, and that some States are less able than others to
build and maintain the capacity to provide needed technical
assistance. The Committee encourages FEMA to continue to make
available technical assistance, and allow States the greatest
flexibility permitted to provide technical assistance, to
communities that require such assistance and capacity building
to identify and develop applications in accordance with the
specifications of the nationally competitive program.
The Committee notes the clear purpose of the Pre-Disaster
Mitigation program to reduce injuries, loss of life, and damage
to property from natural disasters and the program's broad
statutory authority to provide Federal assistance for projects,
such as tornado warning sirens, which serve this purpose. Given
the sudden nature and extreme destructive power of tornados,
the Committee believes warning sirens are a cost-effective
measure for mitigating injuries and loss of life from tornados.
The Committee believes that Section 203 of the Stafford Act
clearly authorizes mitigation assistance for tornado warning
sirens. Indeed, a number of States have recognized the problem
of tornados in their Hazard Mitigation Plans submitted to FEMA,
pursuant to the Stafford Act. FEMA has provided mitigation
grant funding for tornado warning systems in a number of
states, including Kentucky and Mississippi. In addition, FEMA
highlights the value of these warning systems in its own
Mitigation Best Practices database. The Committee believes that
providing funding for mitigation projects such as warning
sirens is consistent with the intent of the PDM program to help
reduce injuries and loss of life.
Legislative History and Committee Consideration
In 2000, Congress enacted the Disaster Mitigation Act of
2000 (P.L. 106-390). In 2005, Congress reauthorized the program
through fiscal year 2008 (P.L. 109-139). Under current law, the
Pre-Disaster Mitigation program terminates on September 30,
2008, unless Congress reauthorizes the program.
On April 30, 2008, the Subcommittee on Economic
Development, Public Buildings, and Emergency Management held a
hearing on FEMA's Pre-Disaster Mitigation program.
On May 21, 2008, Chairman James L. Oberstar introduced H.R.
6109, the ``Pre-Disaster Mitigation Act of 2008''.
On May 22, 2008, the Committee on Transportation and
Infrastructure met in open session to consider H.R. 6109. The
Committee ordered the bill reported favorably to the House by
voice vote with a quorum present.
Record Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against. There were no recorded votes taken in connection
with ordering H.R. 6109 reported. A motion to order H.R. 6109
reported favorably to the House was agreed to by voice vote
with a quorum present.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
Cost of Legislation
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Compliance With House Rule XIII
1. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
308(a) of the Congressional Budget Act of 1974, the Committee
references the report of the Congressional Budget Office
included in the report.
2. With respect to the requirement of clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, the
performance goals and objectives of this legislation are to
reauthorize the Pre-Disaster Mitigation program for three
years.
3. With respect to the requirement of clause 3(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has received the enclosed cost estimate for H.R. 6109
from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 5, 2008.
Hon. James L. Oberstar,
Chairman, Committee on Transportation and Infrastructure, House of
Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 6109, the Pre-
Disaster Mitigation Act of 2008.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Daniel
Hoople and Jeffrey LaFave.
Sincerely,
Robert A. Sunshine
(For Peter R. Orszag, Director).
Enclosure.
H.R. 6109--Pre-Disaster Mitigation Act of 2008
Summary: H.R. 6109 would authorize appropriations to the
Federal Emergency Management Agency (FEMA) for grants to states
and localities for pre-disaster mitigation programs such as
constructing levies, relocating homes from flood-prone areas,
and retrofitting buildings in areas prone to earthquakes. CBO
estimates that implementing H.R. 6109 would cost $700 million
over the 2009-2013 period and $50 million after 2013, assuming
appropriation of the specified amounts. Enacting H.R. 6109
would not affect direct spending or revenues.
H.R. 6109 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 6109 is shown in the following table.
The costs of this legislation fall within budget function 450
(community and regional development).
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By fiscal year, in millions of dollars--
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2009 2010 2011 2012 2013 2009-2013
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level..................................... 250 250 250 0 0 50
Estimated Outlays....................................... 25 100 200 225 150 700
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Basis of estimate: Under current law, FEMA is authorized
through 2008 to provide grants to states and localities to help
prevent damage in areas frequented by disasters. H.R. 6109
would extend this authority through 2011 and authorize the
appropriation of $250 million per year over the 2009-2011
period, an increase of $136 million over the 2008 appropriation
level of $114 million (see Public Law 110-161). CBO's estimate
of spending is based on historical spending patterns for such
grants.
Intergovernmental and private-sector impact: H.R. 6109
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments. Assuming appropriation of authorized
amounts, those governments would benefit from $700 million in
grants over the 2009-2013 period for mitigation activities. Any
costs to those governments, including matching funds, would be
incurred voluntlarily.
Estimate prepared by: Federal Costs: Daniel Hoople and
Jeffrey LaFave; Impact on State, Local, and Tribal Governments:
Melissa Merrell; Impact on the Private Sector: Paige Piper/
Bach.
Estimate approved by: Peter H. Fontaine, Assistant Director
for Budget Analysis.
Compliance with House Rule XXI
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, H.R. 6109 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI
of the Rules of the House of Representatives.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, committee reports on a bill or joint
resolution of a public character shall include a statement
citing the specific powers granted to the Congress in the
Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt State, local,
or tribal law. The Committee states that H.R. 6109 does not
preempt any State, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT
* * * * * * *
TITLE II--DISASTER PREPAREDNESS AND MITIGATION ASSISTANCE
* * * * * * *
SEC. 203. [PREDISASTER] PRE-DISASTER HAZARD MITIGATION.
(a) * * *
* * * * * * *
(b) Establishment of Program.--The President may establish a
program to provide technical and financial assistance to States
and local governments to assist in the implementation of
[predisaster] pre-disaster hazard mitigation measures that are
cost-effective and are designed to reduce injuries, loss of
life, and damage and destruction of property, including damage
to critical services and facilities under the jurisdiction of
the States or local governments.
(c) Approval by President.--If the President determines that
a State or local government has identified natural disaster
hazards in areas under its jurisdiction and has demonstrated
the ability to form effective public-private natural disaster
hazard mitigation partnerships, the President, using amounts in
the National [Predisaster] Pre-Disaster Mitigation Fund
established under subsection (i) (referred to in this section
as the ``Fund''), may provide technical and financial
assistance to the State or local government to be used in
accordance with subsection (e).
* * * * * * *
(e) Uses of Technical and Financial Assistance.--
(1) In general.--Technical and financial assistance
provided under this section--
(A) shall be used by States and local
governments principally to implement
[predisaster] pre-disaster hazard mitigation
measures that are cost-effective and are
described in proposals approved by the
President under this section; and
* * * * * * *
[(f) Allocation of Funds.--The amount of financial assistance
made available to a State (including amounts made available to
local governments of the State) under this section for a fiscal
year--
[(1) shall be not less than the lesser of--
[(A) $500,000; or
[(B) the amount that is equal to 1.0 percent
of the total funds appropriated to carry out
this section for the fiscal year;
[(2) shall not exceed 15 percent of the total funds
described in paragraph (1)(B); and
[(3) shall be subject to the criteria specified in
subsection (g).]
(f) Allocation of Funds.--
(1) Base amount.--The amount of financial assistance
made available to a State (including amounts made
available to local governments of the State) under this
section for a fiscal year--
(A) shall be not less than the lesser of--
(i) $575,000; or
(ii) the amount that is equal to 1.0
percent of the total funds appropriated
to carry out this section for the
fiscal year; and
(B) shall be subject to the criteria
specified in subsection (g).
(2) Competitive program.--Other than the amounts
described in paragraph (1), financial assistance made
available to a State (including amounts made available
to local governments of the State) under this section
shall be awarded on a competitive basis subject to the
criteria in subsection (g).
(3) Maximum amount.--The amount of financial
assistance made available to a State (including amounts
made available to local governments of the State) for a
fiscal year shall not exceed 15 percent of the total
amount of funds appropriated to carry out this section
for the fiscal year.
* * * * * * *
(i) National [Predisaster] Pre-disaster Mitigation Fund.--
(1) Establishment.--The President may establish in
the Treasury of the United States a fund to be known as
the ``National [Predisaster] Pre-Disaster Mitigation
Fund'', to be used in carrying out this section.
(2) Transfers to fund.--There shall be deposited in
the Fund--
(A) * * *
(B) sums available from gifts, bequests, or
donations of services or property received by
the President for the purpose of [predisaster]
pre-disaster hazard mitigation.
* * * * * * *
[(m) Termination of Authority.--The authority provided by
this section terminates September 30, 2008.]
(m) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $250,000,000 for each
of fiscal years 2009, 2010, and 2011.
* * * * * * *