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                                                       Calendar No. 284
107th Congress                                                   Report
                                 SENATE
 1st Session                                                    107-124

======================================================================



 
    DISASTER MITIGATION ASSISTANCE FOR STATES AND LOCAL GOVERNMENTS

                                _______
                                

               December 13, 2001.--Ordered to be printed

                                _______
                                

   Mr. Jeffords, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [to accompany S. 1632]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred a bill (S. 1632), to amend the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act to extend the 
deadline for submission of State recommendations of local 
governments to receive assistance for pre-disaster hazard 
mitigation and to authorize the President to provide additional 
repair assistance to individuals and households, having 
considered the same, reports favorably thereon and recommends 
that the bill do pass.

                               Background

    Section 203 of the Stafford Act establishes a pre-disaster 
mitigation grant program. The program provides technical and 
financial assistance to State and local governments to assist 
in the implementation of pre-disaster hazard mitigation 
measures. The section allows State governors to submit 
recommendations for eligible communities. The deadline for 
these recommendations was October 1, 2001, and every October 1 
thereafter. Prior to the deadline, the Federal Emergency 
Management Agency (FEMA) requested an extension of the 
deadline. The agency requested an amendment to the Stafford Act 
extending the recommendation deadline until 60 days after the 
enactment of the appropriation to implement this program. 
S.1632 incorporates this request.
    Section 408 of the Stafford Act establishes a program for 
federal assistance to individuals and households affected by a 
disaster. Specifically, section 408(c)(2) authorizes the 
President to provide financial assistance for the repair of 
owner-occupied private residences, utilities, and residential 
infrastructure damaged by a major disaster, and to make hazard 
mitigation grants. Repair assistance may not exceed $5,000. The 
Stafford Act limits the total federal assistance to individuals 
and households available under section 408 to $25,000.
    FEMA has requested an amendment to the Stafford Act 
eliminating the $5,000 cap on repair assistance imposed by 
section 408(c)(2)(C). S.1632 incorporates this request.

                      Section-by-Section Analysis

Section 1. Deadline for Submission of State Recommendations for Pre-
        disaster Hazard Mitigation

                                Summary

    Section 1 amends the Stafford Act and extends the deadline 
for State recommendation of certain local governments for pre-
disaster mitigation funding.

                               Discussion

    This section extends the State recommendation deadline for 
pre-disaster mitigation funding until 60 days after the 
appropriation of funds for the pre-disaster mitigation grant 
program. In subsequent fiscal years, States must make 
recommendations by October 1, or at such later date as the 
President may determine.
Section 2. Additional Repair Assistance for Individuals and Households

                                Summary

    Section 2 amends the Stafford Act and eliminates the $5,000 
cap on household repair assistance imposed by section 
408(c)(2)(C).

                               Discussion

    This waiver would only apply to homeowners who do not meet 
Small Business Administration requirements for low interest 
loans and other assistance. Recipients of repair grants under 
section 408(c)(2) must still show that insurance proceeds 
cannot meet their needs. Recipients are still subject to the 
$25,000 cap for total assistance available under section 408. 
Eliminating the assistance limits gives FEMA the flexibility to 
keep qualifying repair recipients in their own homes rather 
other temporary housing alternatives.

                          Legislative History

    Senator James M. Jeffords introduced S. 1632 on November 5, 
2001. The Senate Committee on Environment and Public Works 
reported the bill by voice vote on November 8, 2001.

                                Hearings

    On November 1, 2001, the committee held a hearing to 
consider several legislative proposals including a proposal to 
extend the deadline for submission of State recommendations of 
local governments to receive assistance for predisaster 
mitigation and to authorize the President to provide additional 
repair assistance to individuals and households. Testifying at 
the hearing were the following individuals: Michael Brown, 
Deputy Director, Federal Emergency Management Agency, 
Washington, DC; Joe Moravec, Commissioner, Public Building 
Service, General Services Administration, Washington, DC; Dr. 
David Sampson, Assistant Secretary for Economic Development, 
Economic Development Administration, U.S. Department of 
Commerce, Washington, DC; Richard Meserve, Chairman, Nuclear 
Regulatory Commission, Rockville, MD; Herbert Mitchell, 
Associate Administrator for Disaster Assistance, Small Business 
Administration, Washington, DC; and Marianne L. Horinko, 
Assistant Administrator Office of Solid Waste and Emergency 
Response, Environmental Protection Agency, Washington, DC.

                             Rollcall Votes

    The Committee on Environment and Public Works met to 
consider S.1632 on November 8, 2001, and reported S. 1632 by 
voice vote.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes evaluation of 
the regulatory impact of the reported bill.
    The bill does not create any additional regulatory burdens, 
nor will it cause any adverse impact on the personal privacy of 
individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the Committee finds that S.1632 would 
impose no unfunded mandates on local, State, or tribal 
governments.

                          Cost of Legislation

    Section 403 of the Congressional Budget and Impoundment 
control Act requires that a statement of the cost of the 
reported bill, prepared by the Congressional Budget Office, be 
included in the report. That statement follows:
                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, December 11, 2001.

Hon. James Jeffords, Chairman,
Committee on Environment and Public Works,
U.S. Senate, Washington, DC.

Dear Mr. Chairman: The Congressional Budget Office has prepared 
the enclosed cost estimate for S. 1632, a bill to amend the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act 
to extend the deadline for submission of state recommendations 
of local governments to receive assistance for predisaster 
hazard mitigation and to authorize the President to provide 
additional repair assistance to individuals and households.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Julie 
Middleton, who can be reached at 226-2860.
            Sincerely,
                                             Dan L. Crippen
                              ----------                              

S. 1632, A bill to amend the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act to extend the deadline for submission 
        of state recommendations of local governments to receive 
        assistance for predisaster hazard mitigation and to authorize 
        the President to provide additional repair assistance to 
        individuals and households, as ordered reported by the Senate 
        Committee on Environment and Public Works on November 8, 2001
    S. 1632 would authorize the Federal Emergency Management 
Agency (FEMA) to extend a reporting deadline for certain state 
funding recommendations. In addition, the bill would authorize 
FEMA to increase the type of assistance provided to homeowners 
who have received disaster assistance funds to repair their 
homes, but who are in need of additional money and cannot get 
that additional money through insurance proceeds or loans. 
Based on information from FEMA, CBO estimates that implementing 
S. 1632 would cost about $7 million a year, assuming 
appropriation of the necessary funds. Under current 
law,disaster victims (including households or individuals) are 
eligible to receive housing assistance up to $5,000. Disaster 
victims can seek additional assistance for housing repairs by 
applying for a disaster loan from the Small Business 
Administration. If a household does not qualify for a loan, no 
other housing repair assistance is available from the federal 
government. Under S. 1632, the cap of $5,000 for housing 
repairs would be removed. Based on information from FEMA, an 
average of 4,000 disaster victims can be expected to have 
housing repairs in excess of $5,000 who would not qualify for 
disaster loans. Information from FEMA indicates that disaster 
victims would seek an average of $1,800 in additional housing 
repair assistance.
    S. 1632 would not affect direct spending or receipts; 
therefore, pay-as-you-go procedures would not apply. S. 1632 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and would impose no 
costs on the budgets of state, local, or tribal governments.
    The CEO staff contact for this estimate is Julie Middleton, 
who can be reached at 226-2860. The estimate was approved by 
Peter H. Fontaine, Deputy Assistant Director for Budget 
Analysis.

                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, 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:
                              ----------                              


  THE ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT

            [As Amended Through P.L. 106-580, Dec. 29, 2000]

    AN ACT Entitled the ``Disaster Relief Act Amendments of 1974''.

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Robert T. Stafford Disaster 
Relief and Emergency Assistance Act''.

           *       *       *       *       *       *       *


SEC. 203. PREDISASTER HAZARD MITIGATION.

    (a) Definition of Small Impoverished Community.--In this 
section, the term ``small impoverished community'' means a 
community of 3,000 or fewer individuals that is economically 
disadvantaged, as determined by the State in which the 
community is located and based on criteria established by the 
President.
    (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 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 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).
    (d) State Recommendations.--
            (1) In general.--
                    (A) Recommendations.--The Governor of each 
                State may recommend to the President not fewer 
                than five local governments to receive 
                assistance under this section.
                    (B) Deadline for submission.--The 
                recommendations under subparagraph (A) shall be 
                submitted to the President [not later than 
                October 1, 2001, and each October 1st 
                thereafter or such later date in the year as 
                the President may establish.] not later than--
                            (i) in the case of fiscal year 
                        2002, 60 days after the date on which 
                        funds are made available to carry out 
                        the program established under this 
                        section; and
                            (ii) in the case of each fiscal 
                        year thereafter, October 1 or such 
                        later date as the President may 
                        determine.

           *       *       *       *       *       *       *


SEC. 408. FEDERAL ASSISTANCE TO INDIVIDUALS AND HOUSEHOLDS.

    (a) In General.--
            (1) Provision of assistance.--In accordance with 
        this section, the President, in consultation with the 
        Governor of a State, may provide financial assistance, 
        and, if necessary, direct services, to individuals and 
        households in the State who, as a direct result of a 
        major disaster, have necessary expenses and serious 
        needs in cases in which the individuals and households 
        are unable to meet such expenses or needs through other 
        means.
            (2) Relationship to other assistance.--Under 
        paragraph (1), an individual or household shall not be 
        denied assistance under paragraph (1), (3), or (4) of 
        subsection (c) solely on the basis that the individual 
        or household has not applied for or received any loan 
        or other financial assistance from the Small Business 
        Administration or any other Federal agency.
    (b) Housing Assistance.--
            (1) Eligibility.--The President may provide 
        financial or other assistance under this section to 
        individuals and households to respond to the disaster-
        related housing needs of individuals and households who 
        are displaced from their predisaster primary residences 
        or whose predisaster primary residences are rendered 
        uninhabitable as a result of damage caused by a major 
        disaster.
            (2) Determination of appropriate types of 
        assistance.--
                    (A) In general.--The President shall 
                determine appropriate types of housing 
                assistance to be provided under this section to 
                individuals and households described in 
                subsection (a)(1) based on considerations of 
                cost effectiveness, convenience to the 
                individuals and households, and such other 
                factors as the President may consider 
                appropriate.
                    (B) Multiple types of assistance.--One or 
                more types of housing assistance may be made 
                available under this section, based on the 
                suitability and availability of the types of 
                assistance, to meet the needs of individuals 
                and households in the particular disaster 
                situation.
    (c) Types of Housing Assistance.--
            (1) Temporary housing.--
                    (A) Financial assistance.--
                            (i) In general.--The President may 
                        provide financial assistance to 
                        individuals or households to rent 
                        alternate housing accommodations, 
                        existing rental units, manufactured 
                        housing, recreational vehicles, or 
                        other readily fabricated dwellings.
                            (ii) Amount.--The amount of 
                        assistance under clause (i) shall be 
                        based on the fair market rent for the 
                        accommodation provided plus the cost of 
                        any transportation, utility hookups, or 
                        unit installation not provided directly 
                        by the President.
                    (B) Direct assistance.--
                            (i) In general.--The President may 
                        provide temporary housing units, 
                        acquired by purchase or lease, directly 
                        to individuals or households who, 
                        because of a lack of available housing 
                        resources, would be unable to make use 
                        of the assistance provided under 
                        subparagraph (A).
                            (ii) Period of assistance.--The 
                        President may not provide direct 
                        assistance under clause (i) with 
                        respect to a major disaster after the 
                        end of the 18-month period beginning on 
                        the date of the declaration of the 
                        major disaster by the President, except 
                        that the President may extend that 
                        period if the President determines that 
                        due to extraordinary circumstances an 
                        extension would be in the public 
                        interest.
                            (iii) Collection of rental 
                        charges.--After the end of the 18-month 
                        period referred to in clause (ii), the 
                        President may charge fair market rent 
                        for each temporary housing unit 
                        provided.
            (2) Repairs.--
                    (A) In general.--The President may provide 
                financial assistance for--
                            (i) the repair of owner-occupied 
                        private residences, utilities, and 
                        residential infrastructure (such as a 
                        private access route) damaged by a 
                        major disaster to a safe and sanitary 
                        living or functioning condition; and
                            (ii) eligible hazard mitigation 
                        measures that reduce the likelihood of 
                        future damage to such residences, 
                        utilities, or infrastructure.
                    [(B) Relationship to other assistance.--A 
                recipient of assistance provided under this 
                paragraph shall not be required to show that 
                the assistance can be met through other means, 
                except insurance proceeds.
                    [(C) Maximum amount of assistance.--The 
                amount of assistance provided to a household 
                under this paragraph shall not exceed $5,000, 
                as adjusted annually to reflect changes in the 
                Consumer Price Index for All Urban Consumers 
                published by the Department of Labor.]
                    (B) Initial assistance.--
                            (i) Relationship to other 
                        assistance.--A recipient of initial 
                        assistance described in subparagraph 
                        (A) shall not be required to show that 
                        the need for the initial assistance 
                        cannot be met through other means, 
                        except that a recipient shall be 
                        required to show that the need cannot 
                        be met through insurance proceeds.
                            (ii) Maximum amount of initial 
                        assistance.--The amount of initial 
                        assistance provided to a household 
                        under this subparagraph shall not 
                        exceed $5,000, as adjusted annually to 
                        reflect changes in the Consumer Price 
                        Index for All Urban Consumers published 
                        by the Department of Labor.
                    (C) Additional assistance.--Subject to 
                subsection (h), the President may provide 
                additional repair assistance to an individual 
                or household that is unable to complete the 
                repairs described in subparagraph (A)(i) 
                through use of insurance proceeds, loans, or 
                other means, including assistance from the 
                Small Business Administration.

           *       *       *       *       *       *       *