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RS20372: Disaster Mitigation Bills in the 106th
Congress:
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| Summary The Robert T. Stafford Disaster Relief and Emergency Assistance Act authorizes the President to declare that an emergency or major disaster exists that overwhelms state and local resources. Legislation before the 106th Congress (H.R. 707 and S. 1691) would, among other matters, amend the Act to: (1) fund hazard mitigation projects designed to reduce future disaster losses; (2) add conditions to assistance; and (3) consolidate provisions governing the distribution of aid to disaster victims. This report compares provisions of the two bills, and will be updated as legislative action occurs. |
Background
The Administration and Congress generally agree that federal policy should shift to give priority to mitigation efforts before disasters occur, rather than relying primarily on disaster relief. Mitigation activities include structural or nonstructural projects or adaptations that eliminate or reduce threats. Examples of structural activities include the installation of automatic sprinklers in buildings and modifications to structures in earthquake zones so they will better withstand shaking. Nonstructural mitigation activities include land use planning and rigorous enforcement of local building codes.
The Robert T. Stafford Disaster Relief and Emergency Assistance Act(1) authorizes the President to declare that a major disaster or an emergency exists when a catastrophic flood, fire, storm, or similar event overwhelms state and local resources. Authority to implement much of the Stafford Act has been delegated to the Federal Emergency Management Agency (FEMA), an independent agency.(2)
Comparison of Selected Provisions
To a great extent, H.R. 707, passed by the House on March 4, 1999, and S. 1691 resemble each other. Both bills contain three titles that would accomplish generally similar objectives. Title I adds hazard mitigation provisions to the Stafford Act; Title II consolidates the grant-in-aid provisions authorizing assistance to individual disaster victims; and Title III changes definitions, eligibility criteria for public safety officer death benefits, and other miscellaneous matters. Most provisions in Title III would make technical changes that do not affect administration of the Stafford Act.
Title I: Hazard Mitigation. To a great extent, both bills contain similar hazard mitigation provisions. They establish a new program of assistance for predisaster hazard mitigation and increase the share of funds to be provided to states under the Hazard Mitigation Grant Program (Section 404 of the Stafford Act). They also require private sector involvement in such activities and the assessment of hazards to be addressed under the new program.
Some differences exist within the proposed hazard mitigation provisions. The House bill authorizes $80 million for the program in FY2000, while the Senate bill establishes a fund in the U.S. Treasury comprised of appropriations and gifts. S. 1691 would require that the President identify hazard mitigation zones, in which: hazards are to be identified; professional building construction standards will be applied to federal buildings; and nonfederal building owners will be given incentives for using those standards. (See Table 1.) Due to the level of detail contained in the legislation, the section references in Table 1 pertinent to the proposed authority for the new hazard mitigation program pertain to the Stafford Act, not the section numbers for H.R. 707 and S. 1691.
Table 1. Comparison of Hazard
Mitigation Provisions in H.R.
707 and S. 1691,
106th Congress
| H.R. 707 | S. 1691 |
| Authority and purpose | |
| The President may establish a financial aid program for state and local governments to fund cost effective activities that substantially reduce future risks. No more than 10% of funds may be used to disseminate information. Proposed Sec. 203(a, b) | The FEMA Director may establish a technical and financial aid program for state and local governments to reduce future losses. Public-private partnerships must be formed and hazards identified. Identifies four alternative uses of funds. Proposed Sec. 203(a, c) |
| Allocation | |
| Allocates at least the greater of $500,000 or 1% of funds to each state, with a limit of 15% of total funds. Proposed Sec. 203(c) | No similar provision |
| Funding | |
| Caps federal share at 75% of cost (90% for poor communities). Authorizes $80 million for FY2000, allows use of HMGP funds. Proposed Sec. 203 (g, h, i) | Caps federal share at 75% of cost. Would establish a National Predisaster Mitigation Fund, to be comprised of appropriations and gifts. Proposed Sec. 203 (e, f, g) |
| Requirements | |
| Applicants must identify: outcomes, consistency with state programs, maximum benefits, nonfederal funding, public-private partnerships, aid for "small impoverished communities," and other criteria to be developed. Proposed Sec. 204(d, f) | Awards are to be based on the identification and extent of hazards and the commitment of state and local resources and support. Does not contain provisions regarding small impoverished communities. Sec. 203(b, d) |
| Application and selection | |
| Each governor may recommend at least five communities to receive grants. The President must select from this list in choosing grantees, except under extraordinary circumstances. Proposed Sec. 203(e) | No similar provision |
| Natural Disaster Mitigation Zones | |
| No similar provision | Requires designation of Natural Disaster Mitigation Zones, coordination of information on hazards, and provision of data to the public. Authorizes the President to identify mitigation policies for the zones and links building standards to federal policies. Requires new federal buildings in the zones to be constructed pursuant to the standards. Authorizes federal incentives for nonfederal building owners, including reductions in flood insurance premiums or loan costs. Sec. 104 |
| Other provisions | |
| Requires report on transferring administrative authority for the new hazard mitigation program to the states. Proposed Sec. 203(j) | No similar provision |
| Requires establishment of an interagency task force to coordinate the new hazard mitigation program. Sec. 105 | Requires establishment of an interagency task force to coordinate all federal hazard mitigation programs. Sec. 105 |
| Increases funding for Section 404 Hazard Mitigation Grant Program (HMGP) authority from 15% to 20% of assistance provided per state, effective for disasters declared after Jan. 1, 1997. Sec. 106 | Similar provision, effective for disasters declared after enactment. Sec. 103 |
Title II: Consolidation and Cost Provisions. Both bills would consolidate authorities to reduce federal expenditures and improve program administration. They authorize the President to establish rates for state and local management activities and require owners of nonprofit facilities to apply to the Small Business Administration (SBA) for loans before applying for most FEMA grants. On the other hand, only S. 1691 calls for the President to issue regulations requiring applicants to acquire property insurance, subject to state certifications. Only H.R. 707 allows victims, regardless of the availability of other aid, to apply for the replacement of owner-occupied residences ($10,000 limit) and for the construction of permanent housing in insular areas. By comparison, S. 1691 requires that victims seek other federal aid first from the SBA or other federal agencies, except for temporary housing assistance. (See Table 2.)
Table 2. Consolidation and Cost
Provisions Compared in H.R.
707 and S. 1691,
106th Congress
| H.R. 707 | S. 1691 |
| Insurance | |
| No similar provision | Requires that regulations be issued to require Stafford Act applicants to obtain property insurance, subject to state certification. Specifies elements to be included in the regulations. Sec. 201 |
| Management costs | |
| Requires the President to establish management cost rates for grantees. Costs specified to include administrative costs, auditing and reporting costs, and overtime pay for employees. Repeals "associated expenses" portion of Stafford Act, 42 U.S.C. 4172(f). Sec. 201, Sec. 202(e(1)) | Similar provision, but does not specify components of cost rates and requires President to issue regulations defining costs to be included. Does not repeal "associated expenses" provision in current law. Sec. 202 |
| Public facilities | |
| Amends current law by requiring owners of nonprofit facilities to first seek assistance from the SBA, and requires that the facility provide "critical services" as defined by the President. Sec. 202(a) | Similar provision. Prohibits the President from considering SBA assistance in determining whether a major disaster exists, and from considering the amount of the loan provided by the SBA in determining the amount of aid to be provided to owners of nonprofit facilities. Sec. 203(a) |
| Federal share | |
| Limits federal share to not less than 75% of eligible costs. Sec. 202(b) | Similar provision, but requires regulations to be issued to reduce the federal share for facilities previously damaged by similar disasters, and to which mitigation improvements have not been made. Sec.203(b) |
| Large in-lieu contributions | |
| Current law provides a grant of up to 90% if a destroyed public or nonprofit facility should not be replaced. H.R. 707 would reduce federal share to 75%, but allow 90% for areas with soil instability for public facilities. Requires the President to modify the federal share discretion to reduce federal costs within the range of 50% to 90% of cost. Sec. 202(c) | Similar provision, but does not provide for soil instability exception. Prohibits funding for public and nonprofit facilities in "regulatory floodways" or for uninsured facilities in a flood hazard area. Does not allow President to modify the federal share. Sec. 202(c) |
| Net eligible cost | |
| Current law establishes that, "at a minimum," the net eligible cost is the cost of restoring a damaged facility to its predisaster condition, consistent with current standards. H.R. 707 strikes "at a minimum," and sets the cost estimate as the eligible cost. Also, grants the President authority to modify the cost if actual costs are greater than 120%, or less than 80%, of the estimate. Requires reimbursement if federal grant exceeds eligible costs, but allows applicants to use surplus funds, within limits, for mitigation purposes. Requires establishment of an expert panel to develop procedures for cost estimates. Sec. 202(d) | Similar provision. Requires federal estimate of eligible cost to be based on the work of an expert panel. Allows the President to modify the cost if actual costs are more than 100%, but less than 121%, of the estimated cost. If actual costs reach 121% or more of the estimate, authorizes the President to identify the actual cost to be the eligible cost. Does not provide for use of surplus funds. House bill generally applies provision to funds appropriated after enactment, Senate bill after date of enactment. Sec. 202(d) |
| Individual and household assistance | |
| Generally consolidates provisions in current law (42 U.S.C. 5174, 5178) that authorize temporary housing assistance and cash grants to victims of disasters. Limits grants to $25,000, adjusted annually. Allows victims to apply to FEMA for housing aid regardless of the availability of other federal aid, except applicants for housing repair grants must first apply to the SBA or other agency. Authorizes aid for the replacement of owner-occupied residences, not to exceed $10,000. Authorizes construction of permanent housing in insular areas. Specifies that cash grants are to be limited to medical, dental, funeral, personal property, transportation or other necessary expenses. Sec. 203 | Similar provision, but with differences. Requires that applicants seek housing aid from other sources first, with the exception of temporary housing assistance (rental assistance, recreational vehicles, or prefabricated units). Gives priority to state and local governments for the sale of temporary housing units. Maintains current provision authorizing mortgage or rental payments for those threatened with eviction because of a declared disaster; H.R. 707 does not. Sec. 204 |
| Repeals | |
| Repeals existing authority (42 U.S.C. 5184) to provide loans to local governments that suffer tax revenue losses, and for simplified procedure grants (42 U.S.C. 5189) for losses under $35,000. Sec. 204 | No similar provision. Retains existing provisions, but limits each loan to $5 million and requires local government to repay loans to retain eligibility. Sec. 209 |
| Other provisions | |
| Allows states to apply to administer the Section 404 HMGP authority and, on a demonstration basis, the Section 406 public facilities authority. Sec. 205, 206 | Provides for state administration of HMGP, but not public facilities program. Sec. 205 |
| Requires studies on cost reduction, aid to rural areas, and public infrastructure insurance. Sec. 207-209 | Similar provision regarding study on cost reduction. Sec. 206 |
| Adds to Stafford Act a requirement that FEMA provide for public comment before adopting new policies, and prohibits adoption of policies that retroactively reduce aid. Sec. 210 | Similar provision, but requires the President to solicit view of grantees of policy changes and specifies that no legal right of action exists. Sec. 208 |
| Amends fire suppression grant authority (42 U.S.C. 5187) to authorize grants to local governments. Sec. 303 | Similar provision, but also allows "essential assistance" [42 U.S.C. 5170b] to be used for fire suppression grants. Sec. 207 |
Footnotes
1. (back)P.L. 93-288, the Disaster Relief Act of 1974, as amended, 42 U.S.C. 5121 et seq.
2. (back)For information on FEMA see: U.S. Library of Congress, Congressional Research Service, FEMA's Mission: Policy Directives for the Federal Emergency Management Agency, by Keith Bea, CRS Report RS20272 (Washington: July 21, 1999), p. 6.
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