[DOCID: f:hr387.110]
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110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-387
======================================================================
HURRICANES KATRINA AND RITA RECOVERY FACILITATION ACT OF 2007
_______
October 18, 2007.--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. 3247]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
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, report favorably
thereon with an amendment and recommend that the bill as
amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Hurricanes Katrina and Rita Recovery
Facilitation Act of 2007''.
SEC. 2. DEFINITIONS.
In this Act, the following definitions apply:
(1) Covered hurricane damages.--The term ``covered hurricane
damages'' means damages suffered in the States of Louisiana and
Mississippi as a result of Hurricanes Katrina and Rita.
(2) President.--The term ``President'' means the President
acting through the Administrator of the Federal Emergency
Management Agency.
(3) Stafford act.--The term ``Stafford Act'' means the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5121 et seq.).
SEC. 3. SPECIAL RULES FOR COVERED HURRICANE DAMAGES.
(a) In Lieu Contributions.--In providing contributions under section
406(c) of the Stafford Act (42 U.S.C. 5172(c)) for covered hurricane
damages, the President shall substitute 90 percent for the otherwise
applicable percentage specified in paragraphs (1)(A) and (2)(A) of such
section.
(b) Participation in Pilot Projects.--The States of Louisiana and
Mississippi and local governments in such States shall be eligible to
participate in the pilot program established by section 689j of the
Department of Homeland Security Appropriations Act, 2007 (6 U.S.C. 777)
with respect to covered hurricane damages.
(c) Alternative Dispute Resolution Procedures.--
(1) In general.--Notwithstanding section 423 of the Stafford
Act (42 U.S.C. 5189a) or any regulation, the President is
authorized and encouraged to use alternative dispute resolution
procedures for appeals of decisions made under sections 403,
406, and 407 of the Stafford Act (42 U.S.C. 5179b, 5172, and
5173) regarding the award or denial of assistance, or the
amount of assistance, provided to a State, local government, or
owner or operator of a private facility for covered hurricane
damages.
(2) Denials of requests.--
(A) Written notice.--If a State, local government, or
owner or operator of a private facility requests the
use of alternative dispute resolution procedures for an
appeal pursuant to paragraph (1) and the President
denies the request, the President shall provide to the
State, local government, or owner or operator written
notice of the denial, including the reasons for the
denial.
(B) Quarterly reports.--The President shall submit to
the Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on
Homeland Security and Governmental Affairs of the
Senate, on at least a quarterly basis, a report
containing information on any denial described in
subparagraph (A) made by the President during the
period covered by the report, including the reasons for
the denial.
(3) Applicability.--Paragraph (1) shall apply to an appeal
made by a State, local government, or owner or operator of a
private facility within 60 days after the date on which the
State, local government, or owner or operator is notified of
the decision that is the subject of the appeal.
(4) Report to congress.--Not later than one year after the
date of enactment of this Act, the President shall submit to
the Committee on Transportation and Infrastructure of the House
of Representatives and the Committee on Homeland Security and
Governmental Affairs of the Senate a report containing a
description of how alternative dispute resolution procedures
are being used pursuant to this subsection and recommendations
on whether the President should be given the authority to use
such procedures under the Stafford Act on a permanent basis.
(d) Essential Assistance.--In providing assistance under section 403
of the Stafford Act for covered hurricane damages, the President may
provide assistance for the re-interment of human remains at a
privately-owned or private nonprofit cemetery.
(e) Use of Simplified Procedures.--For covered hurricane damages, the
President may use, if requested by a State or local government or the
owner or operator of a private nonprofit facility, section 422 of the
Stafford Act (42 U.S.C. 5189) for a project for which the Federal
estimate of the cost is less than $100,000.
(f) Use of Temporary Housing Units To Provide Housing to
Volunteers.--
(1) In general.--In providing assistance under title IV of
the Stafford Act (42 U.S.C. 5170 et seq.) for covered hurricane
damages, the President may provide temporary housing units
purchased under section 408 of the Stafford Act (42 U.S.C.
5174) to State and local governments and appropriate private
nonprofit entities for the purpose of providing housing to
volunteers assisting in the recovery from such damages.
(2) Feasibility determination.--The President may provide
temporary housing units for the purposes described in paragraph
(1) only if the President determines that such assistance is
appropriate, cost effective, and would not unduly interfere
with the ability of the Federal Emergency Management Agency to
provide housing for individuals and households with respect to
other major disasters.
(g) Contributions for Public Facilities Used To Host Public Events.--
(1) In general.--Notwithstanding sections 403 and 406 of the
Stafford Act (42 U.S.C. 5170b and 5172), the President may make
contributions to the State of Louisiana for--
(A) costs incurred for the repair or restoration of a
public facility used to host public events if the
facility was damaged as a result of use in conducting
response activities for Hurricane Katrina or Rita;
(B) costs incurred because response activities for
Hurricane Katrina or Rita precluded the normal use of
the facility for public events; and
(C) costs incurred for necessary materials provided
to evacuees in a public facility used to host public
events.
(2) Limitations.--
(A) Contributions for repair and restoration costs.--
Contributions made under paragraph (1)(A) shall be
limited to repair and restoration costs associated with
damages described in paragraph (1)(A) that occurred--
(i) in the case of damages related to
Hurricane Katrina, on or before October 27,
2005; and
(ii) in the case of damages related to
Hurricane Rita, on or before November 23, 2005.
(B) Contributions for costs incurred for cancelled
events.--
(i) Event requirements.--Contributions made
under paragraph (1)(B) shall be limited to
costs that are documented for an event--
(I) for which there was a binding
commitment for use of the facility in
effect prior to August 29, 2005; and
(II) that was scheduled to be held on
or before December 31, 2005, at the
facility.
(ii) Lost revenues.--Contributions under
paragraph (1)(B) shall not be made for any lost
revenues.
(3) Costs recoverable from other sources.--Costs that may be
recovered by the State of Louisiana from any other program or
from insurance or another source shall not be eligible for
assistance under this subsection.
(4) Limitation on statutory construction.--Nothing in this
section shall be construed to affect eligibility for assistance
under section 403 or 406 of the Stafford Act (42 U.S.C. 5170b
or 5172), except to the extent that such assistance would
result in a duplication of benefits.
(5) Federal share.--The Federal share of assistance under
this subsection shall be 100 percent of the eligible costs.
(6) Funding.--Amounts appropriated to carry out sections 403
and 406 of the Stafford Act (42 U.S.C. 5170b and 5172) shall be
available to carry out this section, including amounts
appropriated before the date of enactment of this Act.
(h) Status Report.--Not later than 180 days after the date of
enactment of this Act, the President shall submit to the Committee on
Transportation and Infrastructure of the House of Representatives and
the Committee on Homeland Security and Government Affairs of the Senate
a report regarding the status of recovery for the States of Louisiana
and Mississippi from Hurricanes Katrina and Rita.
(i) Hazard Mitigation Projects.--
(1) In general.--A project for covered hurricane damages
initiated by the State of Louisiana or Mississippi in the
period beginning on August 29, 2005, and ending on the date of
enactment of this Act may contribute toward the non-Federal
share of assistance under section 404 of the Stafford Act (42
U.S.C. 5170c) if the project--
(A) complies with all applicable Federal laws
governing assistance under such section, and
(B) otherwise is eligible to contribute to the non-
Federal share of assistance under such section,
notwithstanding any requirement for approval of the eligibility
and compliance of a project by the President prior to the
initiation of the project contributing toward the non-Federal
share.
(2) Applications.--The States of Louisiana and Mississippi
may submit an application to the President under section 404 of
the Stafford Act with respect to any project described in
paragraph (1).
PURPOSE OF THE LEGISLATION
H.R. 3247, as amended, the ``Hurricanes Katrina and Rita
Recovery Facilitation Act of 2007'', provides relief for
problems associated with recovery efforts specific to
Hurricanes Katrina and Rita. The bill authorizes changes to
Robert T. Stafford Disaster Relief and Emergency Assistance Act
(``Stafford Act'') programs exclusively for the recovery from
Hurricanes Katrina and Rita, and applies these changes
retroactively. Specifically, the bill increases the Federal
share from 75 percent to 90 percent for ``alternate projects''
for Hurricanes Katrina and Rita, to allow money designated for
a specific facility to be used toward another facility for the
same purposes; permits a public assistance pilot program
authorized in Public Law 109-295 to apply retroactively to
Hurricanes Katrina and Rita; allows for third parties to review
and speed up public assistance appeals through the use of
alternative dispute resolution procedures; allows use of
temporary housing for volunteers; increases the ``small
project'' limit from $55,000 to $100,000; authorizes re-
interment of remains in private cemeteries; and provides
additional flexibility for the projects that count toward the
non-Federal share for Stafford Act hazard mitigation programs.
BACKGROUND AND NEED FOR LEGISLATION
Hurricane Katrina made landfall on August 29, 2005, and
proved to be the costliest natural disaster in American
history. The storm had a massive physical impact on the land,
affecting 90,000 square miles, which is an area the size of
Great Britain. More than 80 percent of the City of New Orleans
flooded, an area comparable to seven times the size of
Manhattan. Under the authority granted to the President in the
Stafford Act (42 U.S.C. 5121-5207), the President declared a
Major Disaster in the States of Mississippi and Louisiana on
the date the storm made landfall.
The Stafford Act authorizes disaster assistance that the
Federal Emergency Management Agency (``FEMA'') provides after a
major disaster. While the authority of the Stafford Act is very
broad and flexible, it does not anticipate every circumstance
that can arise in a disaster such as Hurricane Katrina.
Historically, when catastrophic or unusual disasters strike,
FEMA and Congress work cooperatively to identify areas where
FEMA needs specific authority or direction. However,
circumstances were different in dealing with Hurricane Katrina.
When Katrina struck, FEMA was no longer a flexible or
independent government agency. Rather, FEMA was an organization
within the large bureaucracy of the Department of Homeland
Security. FEMA no longer had direct access to the President and
Congress. FEMA's lack of autonomy was magnified by the
unprecedented scope and magnitude of this hurricane.
At a hearing of the Subcommittee on Economic Development,
Public Buildings, and Emergency Management on May 10, 2007,
Members testified on issues that are still affecting and
hindering recovery in their Congressional Districts, even
though two years have elapsed since Katrina. At the hearing,
Members proposed specific solutions to the problems identified.
The provisions of this bill draw on the findings and
recommendations from this hearing.
SUMMARY OF THE LEGISLATION
Section 1. Short title
Section 1 of the bill states that the short title of the
Act is the ``Hurricanes Katrina and Rita Recovery Facilitation
Act of 2007''.
Section 2. Definitions
Section 2 defines ``Covered Hurricane Damages'' and
clarifies that this bill only applies to damages from
Hurricanes Katrina and Rita in Louisiana and Mississippi. The
section further defines ``President'' as the President acting
through the Administrator of FEMA and defines ``Stafford Act''
as the Robert T. Stafford Disaster Relief and Emergency
Assistance Act.
Section 3. Special rules for covered hurricane damages
Subsection (a) increases the Federal share for large in-
lieu projects, also known as ``alternate projects'' from 75
percent to 90 percent for Hurricanes Katrina and Rita for both
public and private non-profit facilities. Under the Stafford
Act, the Federal share is currently 75 percent for public and
private non-profit facilities damaged by Hurricanes Katrina and
Rita. Subsequent to these hurricanes, Congress increased the
Federal share to 90 percent for public facilities. This
provision will help communities, which have had multiple
facilities destroyed by these hurricanes, rebuild facilities
and reestablish services in a manner that will best suit their
needs.
Subsection (b) gives the Administrator of FEMA the
discretion to make public assistance programs for Hurricanes
Katrina and Rita in Louisiana and Mississippi eligible under an
existing public assistance pilot program authorized in section
689j of the Post-Katrina Emergency Management Reform Act (P.L.
109-295). This pilot program increases flexibility in FEMA's
administration of program regulations to expedite the provision
of assistance to States. The Committee recognizes that FEMA
historically has applied changes to the Stafford Act and its
regulations prospectively to disasters declared on or after the
effective date of the change, unless expressly provided
otherwise. In most circumstances, this approach is prudent
because it provides clarity and stability in implementing
assistance. However, as was discussed in the May 10, 2007
hearing of the Subcommittee on Economic Development, Public
Buildings, and Emergency Management, Hurricanes Katrina and
Rita posed and continue to pose unique challenges in complexity
and magnitude. By authorizing programs for Hurricanes Katrina
and Rita to be eligible for participation in the pilot program
retroactively, the Committee anticipates this provision will
help facilitate the recovery in the Gulf Coast.
Subsection (c) encourages alternative dispute resolution
procedures for appeals of public assistance decisions by FEMA
for Hurricanes Katrina and Rita. The Committee is concerned
about the speed of the implementation of the public assistance
program for Hurricanes Katrina and Rita and the impact of the
delays on recovery in the Gulf Coast. In a hearing of the
Subcommittee on Economic Development, Public Buildings, and
Emergency Management, several Members of Congress testified
about delays in the public assistance appeals process. In
particular, Members were concerned about the same officials
reviewing both first and second appeals in the public
assistance program and about delays in processing of appeals.
This provision permits the Administrator to use alternative
dispute resolution procedures to facilitate the review of
appeals in a timely and fair manner. Applicants are permitted
to elect alternative dispute resolution for either first or
second appeals, but are only allowed to do so once, and only if
FEMA concurs. In implementing this pilot program, the
Administrator is encouraged to use FEMA's Office of Alternative
Dispute Resolution as well as resources outside of FEMA. Under
this provision, FEMA is not required to use alternative dispute
resolution when requested by applicants, but if the
Administrator rejects such a request, he must provide a written
notice of the denial including the reasons for the denial. This
provision requires FEMA to report to the Committee on denials
and to report within one year whether this authority should be
granted permanently.
Subsection (d) authorizes FEMA to provide assistance under
section 403 of the Stafford Act to reimburse expenses incurred
for the re-interment of human remains at privately-owned or
private non-profit cemeteries following Hurricanes Katrina and
Rita. As a result of these storms, hundreds of bodies were
washed away from public and private cemeteries, and in many
cases, no one claimed the bodies. In Cameron Parish, nearly 350
bodies, crypts, and caskets had to be re-interred. Because FEMA
does not usually provide assistance directly to privately-owned
facilities, the Committee recommends that privately-owned and
private non-profit cemeteries applying for assistance under
this provision apply through the State, if the State agrees to
apply on their behalf. The Committee does not intend for this
process to preclude cemeteries from receiving assistance. In
providing this assistance, FEMA should apply similar
eligibility criteria for expenses incurred for the re-interment
of human remains at publicly-owned cemeteries under the
provisions of the disaster-specific guidance dated October 29,
2005.
Subsection (e) allows the Administrator of FEMA to apply
the Simplified Procedure, under section 422 of the Stafford
Act, for the administration of ``small projects'' for projects
up to $100,000. The current limit is $55,000. Small projects
are allowed to begin based on cost estimates.
Subsection (f) allows FEMA to provide temporary housing
units for use by volunteers assisting in recovery and
reconstruction on the Gulf Coast. At the May 10, 2007 hearing
of the Subcommittee on Economic Development, Public Buildings,
and Emergency Management, the lack of volunteer housing was
cited as an impediment to the use of volunteers in the Gulf
Coast and, as a result, a hindrance to recovery.
Subsection (g) authorizes the reimbursement of certain
facilities that housed evacuees after Hurricanes Katrina and
Rita. The Committee is concerned that two years after
Hurricanes Katrina and Rita, a number of arenas and other
similar facilities in the State of Louisiana that housed
evacuees in the immediate aftermath of the storms have not been
adequately reimbursed for costs incurred in hosting those
evacuees including repair or restoration of those facilities.
These facilities include the Baton Rouge River Center,
facilities of the Recreation and Park Commission for the Parish
of East Baton Rouge, the Lamar-Dixon Expo Center in Ascension
Parish, and the Cajundome in Lafayette. In providing this
assistance, the Committee expects FEMA will require similar
documentation and procedures as it does for the public
assistance program. Subsection (g)(3) provides that assistance
shall not be provided if reimbursement is available from any
other program, insurance, or any other source. In implementing
this specific requirement, the Committee intends that FEMA use
the same guidelines applicable under section 312 of the
Stafford Act.
Subsection (g)(1)(C) allows reimbursement for costs
incurred for necessary materials provided to evacuees in a
public facility used to host public events. The necessary
materials include supplies provided directly to or for the
benefit of children who were evacuees including school supplies
(such as backpacks, water bottles, and lunch bags), recreation
materials, and art supplies. The Committee recognizes the
extraordinary circumstances children faced while in shelters
and the efforts made to provide as much support and comfort as
possible to these young evacuees.
Subsection (h) requires the Administrator to report to the
Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Homeland Security and
Government Affairs of the Senate on the status of recovery for
the States of Louisiana and Mississippi from Hurricanes Katrina
and Rita within 180 days. The Committee intends the report to
include the following issues:
Coastal High Hazard Areas
The Committee is concerned about FEMA's recent guidance
concerning the restrictions on construction in Coastal High
Hazard Areas for public assistance. Flood plain management
regulations permit construction in Coastal High Hazard Areas as
long as the construction complies with elevation, wave-load
standards, and free-of-obstruction requirements. For 21 months,
FEMA cooperated with the State of Mississippi and local
officials to approve public assistance projects to rebuild
schools and other public facilities inside Coastal High Hazard
Areas. On June 5, 2007, FEMA issued a memorandum that
reinterpreted its previous guidance and declared that no new
construction is permitted in Coastal High Hazard Areas. This
sudden change of policy is causing significant delay and
difficulty for school districts and local governments that were
forced to relocate and redesign projects.
Public utilities
The Committee instructs FEMA to report on the requirements
that apply to contracts for clearing the rights-of-way of
eligible utilities for the purpose of restoring services after
a disaster. The Committee has received reports that FEMA has
advised eligible utilities that it will reimburse contracts on
the basis of time and materials or time and equipment for the
first 72 hours after a disaster, but after 72 hours, the
contracts must be rebid to conform to the standard debris
removal contract payable by the cubic yard. Utilities hire
contractors to clear their rights-of-way as quickly as possible
to restore services to communities. The Committee is concerned
that this practice to reopen public utility right-of-way
clearance contracts after 72 hours and to reimburse these
contracts according to volume rather than according to
reasonable time and equipment costs stands to greatly increase
the government's costs while delaying the restoration of
utility services.
Schools
The Committee is very concerned about the slow pace of
reconstruction of schools in Mississippi and Louisiana. Many
students are in their third school year in temporary
classrooms. The Committee instructs FEMA to report on the
status of each proposed school facility project in the Bay St.
Louis-Waveland School District, the Pass Christian School
District, and the Hancock County School District in
Mississippi, with an explanation of any disputes that have
delayed approval of the project.
Building to code
According to local governments in Louisiana and
Mississippi, the Federal share of public assistance to rebuild
or repair a damaged facility may not account for additional
costs to comply with modern building codes, accessibility
requirements, environmental standards, and other construction
requirements. The Committee is concerned to learn this,
especially in light of FEMA's regulations under 44 CFR
206.226(d), which addresses eligibility of additional costs due
to compliance with current codes. FEMA estimates the Federal
share of public assistance based on the cost of restoring or
replacing a facility to its condition before the disaster.
However, many older facilities are not fully compliant with
current building codes and standards. Sometimes, the additional
costs that are required to comply with building codes,
accessibility requirements, environmental standards, and other
building requirements are not within the scope of work for
FEMA's determination of the Federal share. The Committee
instructs FEMA to identify and report on the status of any
pending project in which the difference between the cost to
restore or replace a facility to its pre-disaster condition is
less than 75 percent of the estimated cost to rebuild or repair
the facility to current codes and standards.
Subsection (i) waives the pre-certification requirement for
a State's non-Federal share for Stafford Act hazard mitigation
projects. The Hazard Mitigation Grant Program (``HMGP'') is
designed to provide funds to mitigate future loss of property
and life. The program requires States to provide at least 25
percent of the cost of eligible projects to access Federal
funds. This State matching requirement may be made through in-
kind projects (also referred to as ``global match'') funded
with non-Federal dollars. The language in this subsection
allows in-kind projects initiated in the recovery efforts after
Hurricanes Katrina and Rita to contribute the non-Federal share
in an HMGP application, if FEMA can determine that the project
meets all eligibility and compliance requirements that apply to
HMGP projects. This provision simply waives the requirement for
pre-approval of a project that is intended for use as the non-
Federal share of an HMGP project, and is not intended to waive
any substantive eligibility or compliance requirement. This
language allows for the review and determination by FEMA to
occur after project implementation.
LEGISLATIVE HISTORY AND COMMITTEE CONSIDERATION
In the 110th Congress, the Subcommittee on Economic
Development, Public Buildings, and Emergency Management held a
hearing on May 10, 2007, entitled ``Legislative Fixes for
Lingering Problems that Hinder Katrina Recovery''. At the
hearing Members of Congress from Louisiana and Mississippi
testified regarding issues that communities and citizens still
face in recovering from Hurricane Katrina.
On July 31, 2007, Subcommittee Chairwoman Norton introduced
H.R. 3247, the ``Hurricanes Katrina and Rita Recovery
Facilitation Act of 2007''.
On August 1, 2007, the Subcommittee on Economic
Development, Public Buildings, and Emergency Management met in
open session to consider H.R. 3247. The Subcommittee favorably
recommended the bill to the Committee on Transportation and
Infrastructure by voice vote.
On August 2, 2007, the Committee on Transportation and
Infrastructure met in open session to consider H.R. 3247. An
amendment to add subsection (i) to the bill, to waive the pre-
certification requirement for a State's non-Federal share for
Stafford Act hazard mitigation grant program projects, was
adopted by voice vote. The Committee on Transportation and
Infrastructure ordered the bill, as amended, reported favorably
to the House by voice vote with a quorum present.
RECORD VOTES
Clause 3(b) of rule XIII 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 the amendment
offered to H.R. 3247 or ordering H.R. 3247 reported. A motion
to order H.R. 3247, as amended, 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
authorize assistance for the recovery from Hurricanes Katrina
and Rita.
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.
3247, as amended, from the Director of the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 24, 2007.
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. 3247, the
Hurricanes Katrina and Rita Recovery Facilitation Act of 2007.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Daniel
Hoople.
Sincerely,
Robert A. Sunshine
(For Peter R. Orszag, Director).
Enclosure.
H.R. 3247--Hurricanes Katrina and Rita Recovery Facilitation Act of
2007
H.R. 3247 would authorize the Federal Emergency Management
Agency (FEMA) to provide additional forms of assistance to
certain areas affected by Hurricanes Katrina and Rita. Funding
for such assistance would come from the $43.5 billion already
appropriated to FEMA's Disaster Relief Fund (DRF) for the
hurricanes. Because CBO does not expect that the proposed
changes in this legislation would have a significant effect on
the pace or amount 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, states choose to relocate such buildings or other
structures, the federal cost share falls to 75 percent. H.R.
3247 would raise the federal cost share on relocated
infrastructure to 90 percent. Allowing states to receive a
higher portion of their reconstruction costs from the federal
government could affect the rate of spending from previously
appropriated funds, but CBO expects that the pace of such
expenditures would not change significantly because other
factors that affect the speed of reconstruction activities
would remain unchanged.
H.R. 3247 also would authorize some new types of assistance
to areas of Louisiana and Mississippi affected by Hurricanes
Katrina and Rita. The legislation would authorize FEMA to
provide temporary housing units (for example, trailers and
mobile homes) to state and local governments and nonprofit
organizations to house volunteers working in the Gulf Coast
region. In view of FEMA's decision to suspend the sale and
donation of its trailer units pending a further investigation
into the safety of those units, it is unclear how FEMA might
use this authority. However, CBO estimates that if sales and
donations resume, implementing this provision would not lead to
a significant acceleration of spending or a net impact on
expenditures from the DRF. Moreover, H.R. 3247 would authorize
FEMA to provide assistance for re-interment in private
cemeteries and for the compensation of business losses
(excluding losses in revenue) stemming from events that were
scheduled to be held in public facilities damaged by the 2005
Gulf Coast hurricanes.
Funding for the assistance authorized by H.R. 3247 would
come from the $43.5 billion appropriated thus far to the DRF
for Hurricanes Katrina, Rita, and Wilma. CBO estimates that
about $13.5 billion of such funding remains unspent as of July
2007. We expect that enacting H.R. 3247 could lead to some
reallocation of those existing funds, but that the rate of
spending such balances would not change significantly under the
bill.
The CBO staff contact for this estimate is Daniel Hoople.
This estimate was 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, the Committee is required to include a list
of 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. The
Committee has required Members of Congress to comply with all
requirements of clause 9(d), (9(e), or 9(f) of rule XXI. The
following table provides the list of such provisions included
in the Committee Report:
------------------------------------------------------------------------
Section Subject Requested by
------------------------------------------------------------------------
Committee Report............ Baton Rouge Richard H. Baker
River Center,
Baton Rouge,
Louisiana.
Committee Report............ Recreation and Richard H. Baker
Park
Commission,
East Baton
Rouge Parish,
Louisiana,.
Committee Report............ Lamar Dixon Charlie Melancon
Expo Center,
Ascension
Parish,
Louisiana.
Committee Report............ Cajundome, Charles W. Boustany, Jr.
Lafayette,
Louisiana.
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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. 3247, as amended,
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
H.R. 3247 makes no changes to existing law.
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