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Staff Contact: Russ Vought (x68581) September 29, 2006

**Appropriations Policy Brief**

**H.R. 5441 --- Homeland Security Appropriations Act for FY 2007**

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[**Earmarks:**]{.underline}

**Note:** The following earmarks are located in the Joint Explanatory
Statement (under "alteration of bridges" on pg. 67). Under H.Res. 1000,
the conferees are required to either include a list of all earmarks (and
the requesting Member) "airdropped" or added in conference *or* include
a statement that no earmarks were added that were neither passed by the
House nor the Senate. The conferees provided the latter, asserting that
any earmarks within the conference report had already passed the House
or the Senate. Included in the Conference Report are the following
earmarks:

-   \$7 million for the Fourteen Mile Bridge in Mobile, AL

-   \$3 million for Chelsea Street Bridge in Chelsea, MA

-   \$2 million for the Canadian Pacific Railway Bridge in LaCrosse, WI

-   \$1 million for the Burlington Northern Railroad Bridge in
    Burlington, IA

-   \$1 million for the Elgin, Joliet, and Eastern Railway Company
    Bridge in Morris, IL

-   \$2 million for the Galveston Causeway Bridge in Galveston, TX

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**[Items of Note]{.underline}:**

**Aviation Security Fee Increase**: The Committee did **NOT** include
the Administration's proposal to increase passenger aviation security
fees. This proposal would have provided \$1.2 billion and mostly
accounts for the difference between H.R. 5441's funding levels and the
request.

**Border Security Supplemental Spending**: Includes \$1.8 billion in
supplemental spending to fund border security, namely a fence along the
U.S. and Mexico border. This spending is designated as funding for
Contingency Operations Related to the Global War on Terror (GWOT), and
therefore does not count against what the conferees are sanctioned to
spend under the budget resolution.

**Port Container Screening and Secure Border Initiative**: Requires DHS
to submit a comprehensive port, container, and cargo security strategic
plan that requires screening all inbound cargo, doubles the percentage
of inbound cargo currently inspected, and sets minimum standards for
securing inbound cargo. In addition, the legislation requires DHS to
submit the Secure Border Initiative multi-year strategic plan to
Congress. The conference report would withhold appropriations for
failure to submit these reports.

**Gulf Coast Rebuilding Coordinator:** Provides \$3 million for the
Office of the Federal Coordinator for Gulf Coast Rebuilding, but
withholds a third of the funding until a FY 2007 expenditure plan is
received by the Appropriations Committees.

**DHS Headquarters**: Provides no funding for the Coast Guard to move
their headquarters to the St. Elizabeths complex. The conferees provide
the full \$8.2 million requested to complete renovations at the DHS
headquarters on Nebraska Avenue, but none for the proposed consolidation
of DHS activities to the St. Elizabeths complex. According to the Joint
Explanatory Statement, DHS "is unable to elaborate on the reasons why
St. Elizabeths is the best location for a permanent DHS headquarters,
what other sites have been considered, which specific components would
move to that site, the total space requirement for DHS headquarters, and
the total costs associated with using the St. Elizabeths site as a
headquarters location."

**Passenger Screening and Government Officials**: Requires that Members
of Congress, including Leadership, heads of federal agencies, and senior
members of the Executive Office of the President, including the OMB
Director, be subject to passenger and baggage screening at airports.

**Oath of Allegiance:** Prohibits funds from being used to amend the
oath of allegiance required of prospective citizens under the
Immigration and Nationality Act.

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**Outsourcing/A-76 Activities**: Prohibits funds from being used under
OMB Circular A-76 (governing the federal government's outsourcing
policies) "to process or approve a competition" with regard to employees
of the Citizenship and Immigration Services.

**Dredging Costs in LA**: Requires the DHS to consider the Hancock
County Port and Harbor Commission in Mississippi eligible for FEMA
public assistance for all costs incurred dredging the navigation
channel, in Little Lake, LA, of sediment from Hurricane George in 1998.

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**Drug Reimportation:** Prohibits funds from being used for Customs and
Border Protection to prevent an individual (who is not in the business
of importing prescription drugs as defined by current law) from
importing prescription drugs. An individual could only transport, on
their person, a 90-day supply for their own use.

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**Attorney Fees/Pending Litigation**: Prohibits the use of funds to
reimburse L.B.& B. Associates, Inc. or Olgoonik Logistics, LLC (or both)
for attorneys fees related to pending litigation against Local 30 of the
International Union of Operating Engineers.

**Unlawful Border Crossings/Tunnels**: Increases the penalties for
constructing tunnels and subterranean passages that serve as unlawful
international border crossings between the U.S. and another country. Any
person who knowingly constructs or finances the construction would fined
and imprisoned for up to 20 years. Any person who knowingly disregards
the construction or use of such a tunnel would be fined and imprisoned
for up to 10 years. Any person who uses such a tunnel to smuggle an
alien, goods, weapons of mass destruction, would be subject to a maximum
term of imprisonment that is twice the maximum term of imprisonment that
would have applied had the tunnel not been used to carry out the
unlawful activity.

**Firearms Policy in Disaster Areas**: Bars officers and employees of
the U.S., participating in relief efforts after a major disaster, from
temporarily or permanently seizing any firearm whose possession is
legally permitted under current law (federal, state, and local law),
requiring a registration which is not required under current law, or
prohibit the carrying of firearms by any person otherwise authorized to
carry firearms under current law.

**National Emergency Management:** Includes the text of the Post-Katrina
Emergency Management Reform Act. Below are the *highlights*:

***Subtitle A---Federal Emergency Management Agency***

-   Defines FEMA's primary mission as reducing the loss of life and
    property and protecting the nation from all hazards, including
    natural disasters, acts of terrorism, and other man made disasters,
    by leading and supporting the nation in a comprehensive emergency
    management system of preparedness, protection, response, recovery,
    and mitigation.

-   States that FEMA's Administrator would be the principal advisor to
    the President, Secretary of Homeland Security, and the Homeland
    Security Council on all matters relating to emergency management in
    the U.S. Accordingly, the Administrator must have a demonstrated
    ability in and knowledge of emergency management and homeland
    security and at least five years of executive leadership and
    management experience. The Administrator would report directly to
    the Secretary. In the event of a natural disaster, act of terrorism,
    or other man-made disaster, the President would have the option of
    designating the Administrator to serve as a Member of the Cabinet.

-   Transfers all of the functions, personnel, assets, components,
    authorities, grant programs, and liabilities of the Directorate of
    Preparedness to FEMA, except the Office of Infrastructure
    Protection, the National Communications System, the National
    Cybersecurity Division, and the Office of the Chief Medical Officer.

-   Ensures that FEMA will remain a distinct entity within DHS and that
    its responsibilities, authorities, and functions may not be
    substantially changed or reduced by the Secretary.

-   Establishes ten FEMA regional offices, each headed by a Regional
    Administrator with a demonstrated ability in and knowledge of
    homeland security and emergency management. The Regional
    Administrator must also be familiar with the geographic area and
    demographic characteristics of the population to be served. The bill
    requires that, within the appropriate regional office, there be
    specific offices for the Pacific, the Caribbean, and Alaska.

-   Requires each Regional Administrator to establish Regional Advisory
    Councils to offer advice on specific emergency management issues,
    including any weaknesses or deficiencies in preparedness,
    mitigation, etc. In addition, each Regional Administrator would
    oversee a multi-agency Regional Office Strike Team, consisting of a
    federal coordinating officer, personnel trained in incident
    management, public affairs and communications support personnel,
    liaisons to other agencies, and individuals from other agencies with
    primary responsibility for each emergency support function in the
    National Response Plan.

-   Requires the FEMA Administrator to appoint a National Advisory
    Council to provide advice on all aspects of emergency management.
    Appointees would serve terms of three years.

-   Establishes a National Infrastructure Simulation and Analysis Center
    as a clearinghouse of expertise, modeling, and analysis designed to
    protect critical infrastructure. Each federal agency with such
    responsibilities would be required to cooperate with the Center and
    share information.

-   Directs DHS to provide grants through the State Homeland Security
    Grant Program to State and local governments to develop mass
    evacuation plans and prepare for executing such plans (for instance,
    stockpiling supplies and shelters).

-   Creates a position---a Disability Coordinator---to ensure that the
    needs of individuals with disabilities are being addressed in the
    emergency preparedness plans.

-   Allows the President to appoint up to four FEMA Deputy
    Administrators, an Assistant Secretary for Cybersecurity and
    Communications, a Chief Medical Officer (with a demonstrated
    expertise in public health), and an Administrator of the U.S. Fire
    Administration.

***Subtitle B---Personnel Reforms and Emergency Management
Capabilities***

-   Requires the Administrator to develop and submit to Congress, within
    six months of enactment, a strategic human capital plan to improve
    FEMA's workforce, including critical skills needed, expected losses
    due to retirement and attrition, and current gaps in the workforce,
    among other things.

-   Directs the Administrator to ensure that all FEMA personnel are
    provided an opportunity to acquire the education, training, and
    experience needed to be promoted within the Agency and to make the
    different career paths are published.

-   Allows the Administrator (for five years after enactment) to offer
    recruitment and retention bonuses to fill positions that would
    otherwise be difficult to fill. The bonus may not exceed 25% of the
    position's annual rate of pay. (Such a bonus may not be extended to
    a Senate-confirmed Presidential appointee.)

-   **Establishes a DHS Homeland Security Program** to provide middle
    and senior level employees the opportunity to broaden their
    knowledge (through best practices) and build professional
    relationships throughout DHS. In addition, the bill would
    **establish a Homeland Security Education Program** to provide
    educational opportunities to senior officials (federal, state,
    local, and tribal) with homeland security and emergency management
    responsibilities.

-   Requires FEMA to establish a Surge Capacity Force, within six months
    of enactment, to rapidly deploy highly-trained individuals to
    respond to disasters. Individuals would not have to be FEMA
    employees, freeing the Force to tap employees throughout all federal
    agencies.

-   Requires states to adopt Catastrophic Incident Annexes to their
    State Emergency Management Plans that are modeled after that of the
    National Response Plan.

-   Directs FEMA to provide evacuation preparedness technical assistance
    to States and localities, including hurricane evacuation studies and
    storm surge estimates.

-   Establishes at least three national Emergency Response Teams and
    "sufficient" regional Emergency Response Teams, consisting of
    adequate numbers of properly trained, organized, and equipped
    personnel.

-   Authorizes an Urban Search and Rescue Response System (at "an amount
    equal to the amount appropriated for the system for fiscal year 2007
    and an additional \$20,000,000") and a **Metropolitan Medical
    Response Grant Program** (at "an amount equal to the amount
    appropriated for the system for fiscal year 2007 and an additional
    \$30,000").

-   Requires FEMA to preposition standardized emergency equipment in at
    least 11 locations to sustain and replenish critical assets used in
    disaster response.

-   Establishes Hurricanes Katrina and Rita recovery offices to provide
    all federal assistance to affected individuals in an expeditious and
    consistent manner. FEMA may establish these offices in MI, LA, AL,
    and TX. Each recovery office would be required to coordinate with
    faith-based and other relief entities. The Administrator would have
    the discretion as to when each office was terminated; the bill
    contains no firm sunset for these offices.

-   Directs FEMA to coordinate with the Chief Information Officer of DHS
    to update the information technology systems of the Agency.

-   Allows FEMA to disclose information to law enforcement agencies
    regarding sex offenders in the event of an evacuation or mass
    relocation.

***Subtitle C---Comprehensive Preparedness System***

-   Establishes a national preparedness goal and a national preparedness
    system to prepare for natural disasters and acts of terrorism,
    including a target level of preparedness. This goal should be
    consistent with the National Response Plan. They system would
    include: 1) target capabilities, 2) equipment and training
    standards, 3) a comprehensive assessment system, 4) training and
    exercises, 5) a remedial action management program, 6) federal
    response capability inventory, 7) reporting requirements, and 8)
    federal preparedness requirements.

-   **Authorizes \$4 million for FY 2008 for FEMA to provide grants** to
    administer the Emergency Management Assistance Compact.

-   Authorizes funding for the Emergency Management Performance Grants
    Program for FY 2008 at the FY 2007 appropriated amount.

-   Transfers the Noble Training Center to the Center for Domestic
    Preparedness.

-   **Establishes a National Exercise Simulation Center** for training
    and exercises at the operational level.

***Subtitle D---Emergency Communications***

-   Establishes an Office of Emergency Communications at DHS, headed by
    a Director for Emergency Communications. The Director is tasked with
    various duties designed to enhance and maintain interoperable
    emergency communications capabilities. The bill would consolidate
    under this Office the SAFECOM Program, the Integrated Wireless
    Network, and the Interoperable Communications Technical Assistance
    Program.

-   Requires the Director to develop a National Emergency Communications
    Plan to provide recommendations on how the U.S. should (1) support
    the ability of emergency response providers to communicate in the
    event of a disaster and (2) accelerate interoperable emergency
    communications.

-   Directs DHS to ensure that grant guidelines for assistance relating
    to interoperable emergency communications are consistent with the
    National Emergency Communications Plan.

-   Establishes a Regional Emergency Communications Working Group in
    each FEMA region to assess the interoperability of local emergency
    communications.

-   **Establishes an Emergency Communications Preparedness Center** to
    serve as the focal point for interagency efforts and a clearinghouse
    for all participating federal departments to promote interoperable
    emergency communications and the ability of emergency response
    providers to communicate in the event of a disaster.

-   **Creates a research, development, testing, and evaluation program**
    to support interoperable emergency communications and the ability of
    emergency response providers at DHS' Office of Interoperability and
    Compatibility.

***Subtitle E---Stafford Act Amendments***

-   Directs the President to issue guidelines to assist Governors in
    requesting a declaration of an emergency in advance of a disaster.

-   Requires FEMA to develop a National Disaster Recovery and Housing
    Strategy to clearly define the role, programs, authorities, and
    responsibilities of each federal agency that may provide disaster
    relief.

-   Increases the cap on assistance for hazard mitigation programs.

-   Removes the \$5,000 cap on individual assistance to a household for
    repairs to an owner-occupied residence.

-   Allows the President to appoint a single, federal coordinating
    officer for a multi- state area affected by a disaster.

-   Requires FEMA to promulgate guidelines for addressing the needs of
    individuals with disabilities, including the accessibility of
    shelters, first aid stations and toilets.

-   Ensures that individuals cannot be denied disaster assistance
    because of a disability or a lack of proficiency in English.

-   Establishes a National Emergency Child Locater Center and a National
    Emergency Family Registry and Locator System to enable individuals
    to receive information about displaced children or adults.

-   Allows FEMA's financial assistance to individuals or households to
    be used for the cost of utilities, excluding phone service.

-   Authorizes the President to provide transportation assistance to
    evacuees returning to their homes and case management services to
    states and localities.

-   Establishes a FEMA position titled the Small State and Rural
    Advocate to advocate for the fair treatment of small states and
    rural communities in the provision of Stafford Act assistance.

-   **Creates a pilot program** designed to make better use of existing
    rental housing located in an area of a major disaster.

-   **Creates a pilot program** designed to reduce costs to the federal
    government in providing debris removal assistance and reconstructing
    public facilities. For instance, under the program, the federal
    share for debris removal would increase (and thereby provide an
    incentive) if a state had already locked-in rates with a removal
    contractor *before* the onset of a major disaster.

***Subtitle F---Prevention of Waste, Fraud, and Abuse***

-   Requires FEMA to enter into one or more contracts for each type of
    good and service that the Agency is capable of contracting for in
    advance of a natural disaster.

-   Instructs DHS to issue regulations to minimize the excessive use of
    subcontractors or "tiers" of subcontractors to perform the principle
    work of the contract. At minimum, the regulations would preclude a
    contractor from using subcontracts for more than 65 percent of the
    cost of a contract or the cost of any individual task.

-   Allows FEMA to direct up to one percent of its total budget for
    oversight efforts.

-   Requires preference to be given in federal contracting for debris
    removal, supply distribution, and other activities (to the extent
    practicable and feasible) to those organizations, firms, and
    individuals residing or doing business primarily in the area
    affected by the major disaster or emergency.

-   Instructs DHS to issue regulations to limit the use of sole source
    or non-competitive contracts.

-   Establishes a federal registry of contractors who are willing to
    perform debris removal, to distribute supplies, perform
    reconstruction, etc.

-   **Establishes a fraud prevention program at FEMA**.

***Subtitle G---Authorization of Appropriations***

-   Authorizes funding for FEMA for FY 2008-2010 at the FY 2007
    appropriated plus a ten percent increase each year.