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[House Report 115-417]
[From the U.S. Government Publishing Office]

115th Congress   }                                     {        Report
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                     {       115-417

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       COMMUNITY EMPOWERMENT FOR MITIGATED PROPERTIES ACT OF 2017

                                _______
                                

 November 21, 2017.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 1735]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 1735) to direct the Administrator 
of the Federal Emergency Management Agency to issue guidance 
regarding implementation of certain buy-outs or the acquisition 
of property for open space as a flood mitigation measure, and 
for other purposes, having considered the same, report 
favorably thereon with amendments and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     4
Legislative History and Consideration............................     5
Committee Votes..................................................     5
Committee Oversight Findings.....................................     5
New Budget Authority and Tax Expenditures........................     5
Congressional Budget Office Cost Estimate........................     5
Performance Goals and Objectives.................................     6
Advisory of Earmarks.............................................     6
Duplication of Federal Programs..................................     6
Disclosure of Directed Rule Makings..............................     7
Federal Mandate Statement........................................     7
Preemption Clarification.........................................     7
Advisory Committee Statement.....................................     7
Applicability of Legislative Branch..............................     7
Section-by-Section Analysis of Legislation.......................     7
Changes in Existing Law Made by the Bill, as Reported............     7

    The amendments (stated in terms of the page and line 
numbers of the introduced bill) are as follows:
  Page 2, line 5, strike ``a buy-out or''.

  Page 2, line 10, strike ``a buy-out or'' and insert ``an''.

  Page 2, line 13, strike ``buy-out or''.

  Page 2, line 15, strike ``buy-out or''.

  Page 2, line 17, strike ``buy-out or''.

  Page 2, line 21, strike ``buy-out or''.

  Page 2, line 23, strike ``model''.

  Page 3, line 5, after ``project,'' insert ``consistent with 
section 404 (including related regulations, standards, and 
guidance) and''.

  Page 3, line 21, strike ``location of a buy-out or'' and 
insert ``property subject to the''.

  Page 4, line 5, insert ``and'' after the semicolon.

  Page 4, strike lines 6 through 8, and insert the following:

                  (C) the applicable Regional Administrator of the 
                Federal Emergency Management Agency.
    Amend the title so as to read:
    A bill to direct the Administrator of the Federal Emergency 
Management Agency to issue guidance regarding the acquisition 
of property for open space as a flood mitigation measure, and 
for other purposes.

                         PURPOSE OF LEGISLATION

    H.R. 1735, as amended, directs the Administrator of the 
Federal Emergency Management Agency (FEMA) to issue guidance 
regarding the acquisition of property for open space as a flood 
mitigation measure.

                  BACKGROUND AND NEED FOR LEGISLATION

Federal Emergency Management Agency: History

    FEMA was established in 1979 by Executive Order 12148 by 
President Jimmy Carter in response to a number of massive 
disasters in the 1960's and 1970's. As a result of individual 
states trying to manage these disasters, the National Governors 
Association and others made a proposal to streamline and cut 
the number of agencies states were required to work with 
following a disaster. Prior to the creation of FEMA, the 
federal government's emergency response mechanisms were 
scattered among many agencies throughout government. The 
creation of FEMA helped to centralize these authorities and the 
coordination of the federal government's response to a 
disaster. The Disaster Relief Act of 1974 (Public Law 93-288), 
which constituted the statutory authority for most federal 
disaster response activities, especially of FEMA, was later 
amended by the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act, also known as the Stafford Act (P.L. 100-707).
    Following more than two decades as an independent agency, 
the Homeland Security Act of 2002 (Public Law 107-296) created 
the Department of Homeland Security (DHS) and placed FEMA 
within DHS, dispersing FEMA's functions among various offices 
and directorates within DHS. In 2006, following Hurricanes 
Katrina and Rita and the intensive Congressional investigations 
and oversight, Congress enacted the Post-Katrina Emergency 
Management Reform Act of 2006 (P.L. 109-295), which addressed 
key response roles and authorities and reconstituted FEMA 
within DHS.

Disaster mitigation

    Disaster mitigation includes actions taken to reduce loss 
of life and property by lessening the impact of disasters. 
Effective mitigation acts to minimize the potential loss from a 
disaster based on identifying and understanding the risks in a 
given area or community. Mitigation can encompass a wide 
variety of activities, including preparation and planning, 
elevating or moving structures prone to flooding, hardening 
structures to mitigate effects of hurricanes or earthquakes, 
and establishing building codes and zoning ordinances.
    Mitigation not only saves lives but has been shown to also 
reduce disaster costs by minimizing damage from a disaster. For 
example, pursuant to a requirement of the Disaster Mitigation 
Act of 2000, the Congressional Budget Office (CBO) completed an 
analysis of the reduction in federal disaster assistance as a 
result of mitigation efforts.\1\ That study examined mitigation 
projects funded from 2004 to mid-2007. CBO found that of the 
nearly $500 million invested through Pre-Disaster Mitigation 
(PDM) grants, future losses were reduced by $1.6 billion for an 
overall ratio of 3 to 1. In essence, for every dollar invested 
in mitigation, $3 was saved. CBO's analysis reaffirmed a prior 
study commissioned by FEMA and conducted by the Multihazard 
Mitigation Council of the National Institute of Building 
Sciences that concluded, in 2005 that each dollar spent on 
mitigation saves $4 in future losses due to disasters.\2\
---------------------------------------------------------------------------
    \1\``Potential Cost Savings from the Pre-Disaster Mitigation 
Program,'' Congressional Budget Office, September 2007.
    \2\``Natural Hazard Mitigation Saves: An Independent Study to 
Assess the Future Savings from Mitigation Activities,'' Multihazard 
Mitigation Council, National Institute of Building Sciences, 2005.
---------------------------------------------------------------------------
    Federal programs such as FEMA's Hazard Mitigation Grant 
Program (HMGP) and PDM help provide some of the investment 
needed to help communities undertake disaster mitigation. HMGP 
provides grants to state and local governments to rebuild after 
a disaster in ways that are cost-effective and that reduce the 
risk of future damage, hardship, and loss from all hazards. 
FEMA also provides grants under HMGP to assist families in 
reducing the risk to their homes from future disasters, through 
such steps as elevating the home or purchasing the home to 
remove it from the floodplain.

Community empowerment for Mitigated Properties Act of 2017

    H.R. 1735, as amended, addresses a prevalent source for 
complaints and miscommunications among municipal authorities in 
flood prone regions where numerous properties have been 
purchased, razed, and are maintained as open space. It is of 
critical importance that all entities involved at the county 
and community level receive effective communication as to why 
the State, in partnership with FEMA, is undertaking flood 
mitigation property buyouts and how the land can be used and 
maintained in the future.
    Currently FEMA works with State grantees and county 
governments are provided with the details of properties 
identified for buyout. H.R. 1735, as amended, ensures that 
municipal authorities receive the same details. This 
legislation requires FEMA to provide guidance to States on 
providing local governments with a framework for the upkeep of 
these properties and how to facilitate memorandums of 
understanding between local governing bodies regarding property 
maintenance and upkeep standards, consistent with the 
requirements of the local community and neighborhood, as well 
as the Hazard Mitigation Assistance Program.

                        HEARINGS AND ROUNDTABLES

    The Subcommittee on Economic Development, Public Buildings, 
and Emergency Management, held the following hearings and 
roundtable discussions on subjects related to matters contained 
in H.R. 1735, as amended, during the 114th and 115th 
Congresses:
          ``Rebuilding after the Storm: Lessening Impacts and 
        Speeding Recovery'' held on January 27, 2015. The 
        purpose of the hearing was to launch an assessment of 
        the rising costs of disasters, the cost effectiveness 
        of disaster assistance, strategies to reduce disaster 
        losses, and the appropriate roles of government and the 
        private sector, and to consider reforms to save lives 
        through improved alerts and warning systems and search 
        and rescue.
          ``What is Driving the Increasing Costs and Rising 
        Losses from Disasters?'' held on March 18, 2015. The 
        purpose of the roundtable was to examine and discuss 
        data related to disaster costs, the trends observed 
        over time, and the projections for the future given the 
        policies in place today.
          ``The State of Pennsylvania and FEMA Region III are 
        Leaders in Mitigating Disaster Costs and Losses'' held 
        on May 28, 2015. The purpose of the roundtable was to 
        examine disaster costs and losses, focus on hazards 
        impacting Pennsylvania and the region, and identify 
        best practices for mitigating and avoiding disaster 
        impacts.
          ``Federal Disaster Assistance: Roles, Programs, and 
        Coordination'' held on June 17, 2015. The purpose of 
        the roundtable was to examine and discuss federal 
        disaster assistance programs, the requirements and 
        effectiveness of those programs, and coordination among 
        various agencies and stakeholders.
          ``Controlling the Rising Cost of Federal Responses to 
        Disaster'' held on May 12, 2016. The purpose of the 
        hearing was to explore potential solutions and the 
        principles that should be driving solutions to lower 
        the overall costs of disasters and to help avoid 
        devastating losses.
          ``Building a 21st Century Infrastructure for America: 
        Mitigating Damage and Recovering Quickly from 
        Disasters'' held on April 27, 2017. The purpose of the 
        hearing was to examine how to protect infrastructure 
        against future disaster damage, how to lower the 
        overall disaster costs, and to identify challenges 
        facing FEMA in responding to, recovering from, and 
        mitigating against disasters, both natural and man-
        made.

                 LEGISLATIVE HISTORY AND CONSIDERATION

    On March 27, 2017, Congressman Brian Babin (R-TX) 
introduced H.R. 1735, a bill to ensure the upkeep of property 
within communities where hazard mitigation funds were used to 
purchase the entity.
    On July 27, 2017, the Committee on Transportation and 
Infrastructure met in open session to consider H.R. 1735. The 
Committee considered an amendment offered by Congressman Lou 
Barletta (R-PA), which was agreed to by voice vote. The 
Committee ordered the bill, as amended, reported favorably to 
the House by voice vote with a quorum present.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules 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 consideration of H.R. 1735, as amended, or ordering the 
measure reported. A motion to order H.R. 1735, 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.

               NEW BUDGET AUTHORITY AND TAX EXPENDITURES

    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.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    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. 1735, as amended, 
from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 16, 2017.
Hon. Bill Shuster,
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. 1735, the 
Community Empowerment for Mitigated Properties Act of 2017.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Robert Reese.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 1735--Community Empowerment for Mitigated Properties Act of 2017

    H.R. 1735 would require the Federal Emergency Management 
Agency (FEMA) to update its guidance on acquiring property for 
open space as a disaster mitigation measure. Under current law, 
FEMA provides grants to states and localities to buy structures 
(and the underlying land) that are at risk of severe flooding. 
FEMA most recently issued guidance for this process in 2007.
    Based on the cost of creating similar guidance, CBO 
estimates that implementing H.R. 1735 would have no significant 
effect on the federal budget.
    Enacting H.R. 1735 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply. CBO 
estimates that enacting H.R. 1679 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2028.
    H.R. 1679 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.
    The CBO staff contact for this estimate is Robert Reese. 
The estimate was approved by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                    PERFORMANCE GOALS AND OBJECTIVES

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goal and objective of this legislation is to ensure 
that FEMA provides guidance to States on providing notification 
to local governments on mitigation property buyout activities 
and facilitating memorandums of understanding for the use and 
maintenance of the resulting open space.

                          ADVISORY OF EARMARKS

    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(e), 9(f), and 9(g) of 
rule XXI of the Rules of the House of Representatives. No 
provision in the bill, as amended, includes an earmark, limited 
tax benefit, or limited tariff benefit under clause 9(e), 9(f), 
or 9(g) of rule XXI.

                    DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 1735, as amended, establishes or reauthorizes a program 
of the federal government known to be duplicative of another 
federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

                  DISCLOSURE OF DIRECTED RULE MAKINGS

    Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017), 
the Committee finds that enacting H.R. 1735, as amended, does 
not direct the completion of a specific rule making within the 
meaning of section 551 of title 5, United States Code.

                       FEDERAL MANDATE 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. 1735, 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 OF 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).

               SECTION-BY-SECTION ANALYSIS OF LEGISLATION

Section 1. Short title

    This section designates the short title as the ``Community 
Empowerment for Mitigated Properties Act of 2017.''

Section 2. Guidance on hazard mitigation assistance

    This section articulates the guidance the Administrator 
shall issue regarding the acquisition of property under section 
404 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    H.R. 1735, as amended, makes no changes in existing law.

                                  [all]
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