[Senate Report 110-471]
[From the U.S. Government Publishing Office]
110th Congress
2d Session SENATE Report
110-471
_______________________________________________________________________
Calendar No. 1031
HURRICANES KATRINA AND RITA RECOVERY FACILITATION ACT OF 2008
__________
R E P O R T
of the
COMMITTEE ON
HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
H.R. 3247
TO IMPROVE THE PROVISION OF DISASTER ASSISTANCE FOR HURRICANES KATRINA
AND RITA, AND FOR OTHER PURPOSES
September 18 (legislative day September 17), 2008.--Ordered to be
printed
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii TED STEVENS, Alaska
THOMAS R. CARPER, Delaware GEORGE V. VOINOVICH, Ohio
MARK L. PRYOR, Arkansas NORM COLEMAN, Minnesota
MARY L. LANDRIEU, Louisiana TOM COBURN, Oklahoma
BARACK OBAMA, Illinois PETE V. DOMENICI, New Mexico
CLAIRE McCASKILL, Missouri JOHN WARNER, Virginia
JON TESTER, Montana JOHN E. SUNUNU, New Hampshire
Michael L. Alexander, Staff Director
Kevin J. Landy, Chief Counsel
Mary Beth Schultz, Counsel
Donny Ray Williams Jr., Staff Director,
Ad Hoc Subcommittee on Disaster Recovery
Brandon L. Milhorn, Minority Staff Director and Chief Counsel
Asha A. Mathew, Minority Senior Counsel
Trina Driessnack Tyrer, Chief Clerk
C O N T E N T S
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Page
I. Purpose and Summary.............................................1
II. Background and Need..............................................1
III. Legislative History..............................................3
IV. Section by Section Analysis......................................4
V. Evaluation of Regulatory Impact..................................5
VI. Congressional Budget Office Cost Estimate........................5
VII. Changes in Existing Law Made by the Bill, as Reported............7
Calendar No. 1031
110th Congress Report
SENATE
2d Session 110-471
======================================================================
HURRICANES KATRINA AND RITA RECOVERY FACILITATION ACT OF 2008
_______
September 18 (legislative day, September 17), 2008.--Ordered to be
printed
_______
Mr. Lieberman, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany H.R. 3247]
The Committee on Homeland Security and Governmental
Affairs, to which was referred the bill (H.R. 3247) to improve
the provision of disaster assistance for Hurricanes Katrina and
Rita, and for other purposes, having considered the same,
reports favorably thereon with an amendment and recommends that
the bill do pass.
I. PURPOSE AND SUMMARY
The purpose of this legislation is to eliminate obstacles
which have delayed the recovery and rebuilding of areas
impacted by Hurricanes Katrina and Rita in order to improve and
expedite the recovery and rebuilding process.
II. BACKGROUND AND NEED FOR THE LEGISLATION
As the flood waters receded from Hurricanes Katrina and
Rita, the challenge of the rebuilding effort became immediately
evident. Hurricane Katrina, which hit the Gulf Coast on August
29, 2005, devastated some 90,000 square miles of public
infrastructure and destroyed thousands of homes. Hurricane Rita
was another catastrophic storm that hit the Gulf Coast less
than a month later, reopening levees that were under repair and
causing significant damage to Southwestern Louisiana and Texas.
Destruction to public buildings, roads, bridges, firehouses and
other public infrastructure caused by these hurricanes reached
an extraordinary level and the Gulf Coast continues to struggle
to repair and restore this infrastructure. The Committee
believes the recovery from Hurricanes Katrina and Rita is
moving too slowly and is concerned that this is due, in part,
to problems in the administration of disaster recovery programs
under the Federal Emergency Management Agency (FEMA). The
Committee therefore finds that legislation is needed to provide
a more efficient and practical approach to administering
certain aspects of FEMA's programs in order to speed the Gulf
Coast recovery.
Rebuilding such a large number of public structures
requires a massive collaborative effort from state, local, and
federal officials. The Robert T. Stafford Disaster Relief and
Emergency Assistance Act (the ``Stafford Act'') authorizes the
federal government to provide assistance after a disaster in
various forms through FEMA, which can act with the assistance
of other federal agencies. For example, during the aftermath of
a disaster, federal assistance can be provided such as
supplying food and water for victims, buses to evacuate
victims, and equipment and personnel for search and rescue
missions. The Stafford Act also authorizes FEMA to provide
assistance to households who suffered eligible losses or
damages. Finally, for State and local governments, the Stafford
Act authorizes FEMA to provide assistance to repair or replace
public and certain non-profit infrastructure through the Public
Assistance program.
According to FEMA officials, as of August 2008, FEMA had
obligated $11 billion to Alabama, Louisiana, Mississippi, and
Texas state and local governments through the Public Assistance
program for damages from Hurricanes Katrina and Rita. Much of
this Public Assistance funding, however, is yet to be actually
spent to aid in the recovery. Although the Stafford Act is
generally flexible, parts of the Stafford Act, as well as the
regulations and FEMA policies implementing and administering
the Stafford Act, have proven to be inadequate to deal with
catastrophes on the size and scale of Hurricanes Katrina and
Rita, and have contributed to the delay in rebuilding areas
impacted by the hurricanes and in spending the Public
Assistance funding that has been obligated for Hurricanes
Katrina and Rita. Thus, legislation is needed to provide a more
efficient and practical approach to administering some FEMA
programs for Hurricanes Katrina and Rita damages. For example,
in many localities throughout the Gulf Coast, firehouses,
police stations, and criminal justice facilities remain in the
damaged conditions wrought by the storm, in part due to highly
detailed requirements in FEMA's Public Assistance Program that
normally serve to document each project individually. In
addition, the requirements impose penalties against otherwise
available Stafford Act payments if a State chooses to rebuild a
structure differently than the previously existing structure.
In the case of Hurricanes Katrina and Rita, where many
communities have lost all, or nearly all of their public
infrastructure, these detailed requirements have unreasonably
delayed progress on rebuilding. Previously, the same
difficulties plagued the rebuilding of schools. To address this
problem, the Consolidated Appropriations Act for fiscal year
2008 (Sec. 552 in P.L. 110-161) created a process to allow
payments to be made to a group of schools, instead of one by
one, in order to speed up the rebuilding process. That
provision also capped the penalty for failure to obtain flood
insurance and eliminated penalties for rebuilding structures
differently than the previously existing structures. The bill
as amended by the Committee applies that framework to the
rebuilding of firehouses, police stations, and other criminal
justice facilities.
The legislation also opens up the process for resolving
disputes regarding FEMA's estimates of the cost of repairing or
replacing public buildings, infrastructure, or privately owned
facilities. State of Louisiana officials believe that many of
FEMA's estimates are far below the actual costs of the eligible
damages and have appealed some of the estimates. However,
FEMA's practice of allowing appeals to be reviewed by the same
individuals that made the original determinations is
problematic in some situations. This bill, as amended by
Committee, addresses this concern by expanding the procedures
for resolving disputes under the Public Assistance program by
authorizing and encouraging the President to use alternative
dispute resolution procedures to facilitate the resolution of
appeals in a timely and fair manner.
As a final example of measures designed to speed recovery
in the Gulf Coast in this bill, the Committee believes that a
measure included in the Post-Katrina Emergency Management Act
of 2006 (the ``Post-Katrina Act''), P.L. 109-295, may prove
useful in resolving current rental housing shortages. This
measure, section 689i of the Post-Katrina Act, authorized the
President to provide for the reconstruction or renovation of
certain rental property to house individuals displaced by
disasters. Nearly three years after Hurricanes Katrina and Rita
made landfall, even though a housing shortfall remains in many
places along the Gulf Coast, empty, damaged rental properties
can be found in the Gulf Coast region. This bill as amended by
the Committee therefore extends Section 689i to FEMA's
administration of recovery programs for Hurricanes Katrina and
Rita.
The examples mentioned above are just a few of the measures
the Committee has included in the bill as amended by Committee
in order to speed the recovery of the Gulf Coast.
III. LEGISLATIVE HISTORY
H.R. 3247 was introduced in the U.S. House of
Representatives by Delegate Eleanor Holmes Norton on July 31,
2007. The bill was referred to the House Committee on
Transportation and Infrastructure, Subcommittee on Economic
Development, Public Buildings and Emergency Management, and was
voted to be reported out favorably by voice vote from the
Subcommittee to the Full Committee on August 1, 2007. It was
reported out of the House Transportation and Infrastructure
Full Committee favorably on October 18, 2007 and passed the
House of Representatives by suspension of the rules on October
29, 2007.
In the Senate, the House bill was referred to the Committee
on Homeland Security and Governmental Affairs. At the
Committee's April 10, 2008 business meeting, Senator Landrieu
offered a substitute amendment to H.R. 3247, which omitted some
provisions included in the House bill, maintained, and in some
cases modified, some other House provisions, and added three
new provisions.
The three new provisions in the Landrieu substitute
amendment included provisions which authorized use of the
following in the recovery from Hurricanes Katrina and Rita: (1)
provisions to expedite reconstruction of fire stations, police
stations, and criminal justice facilities; (2) case management
services authorized in the Post-Katrina Act; and (3) a pilot
program that funds repairs for certain rental units authorized
in the Post-Katrina Act. The Landrieu substitute included
modified versions of provisions included in H.R. 3247 which
authorized use of the following in the recovery from Hurricanes
Katrina and Rita: (1) increasing the federal in-lieu
contribution from 75% to 90% for the cost of rebuilding a
facility that will be replaced instead of repaired; (2)
simplified procedures for certain Stafford Act projects if the
federal estimate of costs is less than $100,000; and (3)
temporary housing units for volunteers.
The Landrieu substitute amendment omitted some provisions
that were included in H.R. 3247 to reflect both the changing
needs of the Gulf Coast recovery since the passage of the House
bill and the need for compromise as there was significant
opposition to certain provisions. The omitted provisions
included authorization of use of the following in the recovery
from Hurricanes Katrina and Rita: (1) the public assistance
pilot project authorized in the Post-Katrina Act; (2)
provisions related to the reimbursement to several different
for-profit entities for lost profits associated with the
aftermath of Hurricanes Katrina and Rita, as well as other
related costs; and (3) use of Community Development Block Grant
(CDBG) funds to count towards the 25% state cost share for
eligible Hazard Mitigation Grant (HMGP) Program projects.
Members adopted the Landrieu substitute to the House bill
by a roll call vote of 13 yeas and 3 nays and favorably
reported the bill by a roll call vote of 8 yeas and 2 nays.
H.R. 3247, Hurricanes Katrina and Rita Recovery Facilitation Act of
2007
Results: Ordered reported favorably by roll call vote of 8
yeas and 2 nays (no instruction from Obama) as amended by the
Landrieu Substitute Amendment.
Yeas: Lieberman, Levin, Akaka, Carper, Landrieu, McCaskill,
Tester, Collins.
Nays: Voinovich, Sununu.
Yeas by Proxy: Pryor, Stevens, Coleman, Domenici, Warner.
Nays by Proxy: Coburn.
A. Landrieu Substitute Amendment to H.R. 3247
Results: Adopted by roll call vote of 13 yeas and 3 nays
(no instruction from Obama).
Yeas: Lieberman, Levin, Akaka, Carper, Landrieu, McCaskill,
Tester, Collins.
Nays: Voinovich, Sununu.
Yeas by Proxy: Pryor, Stevens, Coleman, Domenici, Warner.
Nays by Proxy: Coburn.
IV. SECTION-BY-SECTION ANALYSIS
Section 1. Short title
This section of the bill states that the short title of the
Act is the ``Hurricanes Katrina and Rita Recovery Facilitation
Act of 2008''.
Section 2. Definitions
This section of the bill defines the following terms:
``Covered Hurricane Damages'', ``Major Disaster'',
``President'' and ``Stafford Act''.
Section 3. Special rules for covered hurricane damages
This section authorizes use of the following for Hurricane
Katrina and Rita-related recovery:
Subsection (a) increases the federal in-lieu contribution
from 75% to 90% for the cost of rebuilding a facility that will
be replaced instead of repaired.
Subsection (b) authorizes use of a pilot program included
in the Post-Katrina Act through which the President can provide
for the renovation or reconstruction of certain rental
properties used to house individuals displaced by disasters.
Subsection (c) authorizes and encourages the FEMA
Administrator to use alternative dispute resolution procedures
to facilitate the review of appeals of certain Stafford Act
Public Assistance project decisions. The provision also
requires FEMA to submit a report to Congress on use of
alternative dispute resolution.
Subsection (d) expands the use of simplified procedures for
the administration of certain Stafford Act projects where the
estimates for the cost of the project is less than $100,000, an
increase from the current limit of $55,000.
Subsection (e) authorizes the FEMA Administrator in some
instances to provide temporary housing units for volunteers
assisting in the recovery from Hurricanes Katrina and Rita.
Subsection (f) requires FEMA to report in 180 days on the
status of the recovery from Hurricanes Katrina and Rita in
Louisiana and Mississippi.
Section 4. Public assistance program
This section requires the President to provide a single
payment for any eligible costs under section 406 of the
Stafford Act for police stations, firehouses, and criminal
justice facilities. It eliminates alternate project penalties
and limits flood insurance deductions to $1 million per
facility type for which a local government is receiving
assistance.
Section 5. Case management
This section authorizes use of case management services
authorized in the Post-Katrina Act.
V. EVALUATION OF REGULATORY IMPACT
Pursuant to the requirement of paragraph 11(b)(1) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory impact of this bill. CBO states that
the bill contains no intergovernmental or private sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
VI. ESTIMATED COST OF LEGISLATION
May 15, 2008.
Hon. Joseph I. Lieberman,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3247, the
Hurricane Katrina and Rita Recovery Facilitation Act of 2008.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Daniel
Hoople.
Sincerely,
Peter R. Orszag.
Enclosure.
H.R. 3247--Hurricanes Katrina and Rita Recovery Facilitation Act of
2008
H.R. 3247 would authorize the Federal Emergency Management
Agency (FEMA) to increase the amount of assistance provided to
certain areas affected by Hurricanes Katrina and Rita. Funding
for the additional assistance made available by H.R. 3247 would
come from funds already appropriated to the Disaster Relief
Fund (DRF) for Hurricanes Katrina and Rita. As of April 2008,
$40 billion had been allocated for the two hurricanes, of which
about $8.4 billion remained unspent, CBO estimates. We expect
that enacting H.R. 3247 could lead to some reallocation of
existing funds in the DRF but that the rate of spending of such
balances would not change significantly. Because CBO does not
expect that the proposed changes would have a significant
effect on the pace of federal expenditures from the DRF, we
estimate that enacting H.R. 3247 would have no significant
effect on direct spending. Enacting the bill would not affect
revenues.
H.R. 3247 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
Under current law, Gulf Coast states are eligible to
receive from FEMA 100 percent of the funds needed to repair or
replace public infrastructure damaged by the 2005 hurricanes.
If, however, the affected areas choose to relocate such
buildings or other structures, the federal cost share falls to
75 percent. H.R. 3247 would increase the federal cost share to
100 percent for relocated fire and police stations and criminal
justice facilities, and to 90 percent for all other relocated
infrastructure projects. In addition, FEMA would be prohibited
from reducing the amount of public assistance provided for such
facilities that were not adequately covered by flood insurance
at the time of the disaster. (Current law requires FEMA to
reduce the federal cost share by an amount equal to the value
of the facility on the date of damage, or the proceeds the
facility would have received from the National Flood Insurance
Program, whichever is less.)
Allowing states to receive a higher portion of their
reconstruction costs from the federal government could
accelerate the expenditure of previously appropriated funds,
which would increase direct spending. Based on information from
FEMA, CBO estimates that this legislation would affect a
handful of projects that have applied to the agency for
assistance. Other factors affecting the speed of reconstruction
projects (for example, the supply and demand of contractors and
construction supplies), however, would remain unchanged. As
such, CBO estimates that increasing the federal cost share of
those projects would not significantly affect the overall pace
of expenditures from the DRF--resulting in no estimated effect
on direct spending.
H.R. 3247 also would extend the pilot program for
individual and household assistance established under the
Department of Homeland Security Appropriations Act, 2007
(Public Law 109-295), to include areas affected by the 2005
hurricanes. To date, FEMA has not created such a program under
the authority granted by the 2007 law for any disaster area. If
a pilot program is implemented in the near future, CBO
estimates that expanding its eligibility under this legislation
would have no significant effect on the pace of federal
expenditures as the authority to operate the pilot program
would expire in December 2008.
On September 24, 2007, CBO transmitted a cost estimate for
H.R. 3247, the Hurricanes Katrina and Rita Recovery
Facilitation Act of 2007, as ordered reported by the House
Committee on Transportation and Infrastructure on August 2,
2007. That version of H.R. 3247 would authorize some different
types of assistance for areas affected by the 2005 hurricanes.
However, CBO estimates that both versions of the legislation
would have no significant effect on the pace of federal
expenditures.
Estimate approved by Peter H. Fontaine, Assistant Director
for Budget Analysis.
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
Because this legislation would not repeal or amend any
provision of current law, it would make no changes in existing
law within the meaning of clauses (a) and (b) of paragraph 12
of rule XXVI of the Standing Rules of the Senate.