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[House Report 115-32]
[From the U.S. Government Publishing Office]

115th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                     {       115-32

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

 
          DISASTER SIMPLIFIED ASSISTANCE VALUE ENHANCEMENT ACT

                                _______
                                

 March 9, 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. 1214]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 1214) to require the Administrator 
of the Federal Emergency Management Agency to conduct a program 
to use simplified procedures to issue public assistance for 
certain projects under the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act, and for other purposes, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     4
Legislative History and Consideration............................     4
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

                         PURPOSE OF LEGISLATION

    H.R. 1214 would require the Administrator of the Federal 
Emergency Management Agency (FEMA) to conduct a program to use 
simplified procedures when providing public assistance for 
certain projects under the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act.

                  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 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 (P.L. 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 (P.L. 107-296) created the 
Department of Homeland Security (DHS), placed FEMA within DHS, 
and FEMA's functions were dispersed among various offices and 
directorates within DHS. In 2006, following Hurricanes Katrina 
and Rita and the subsequent intensive Congressional 
investigations and oversight, Congress enacted the Post-Katrina 
Emergency Management Reform Act of 2006 (PKEMRA) (P.L. 109-
295), which addresses key response roles and authorities and 
put FEMA back together again within DHS. PKEMRA authorized the 
National Preparedness System and FEMA for the first time in 
legislation. Most recently, Congress enacted the Sandy Recovery 
Improvement Act (SRIA) (P.L. 113-2), on January 29, 2013, in 
the wake of Hurricane Sandy's impact to the East Coast. SRIA 
provided additional authorities to expedite and streamline 
Hurricane Sandy recovery efforts, reduce costs, and improve the 
effectiveness of several disaster assistance programs 
authorized by the Stafford Act.

Disaster response and recovery

    When the President declares a major disaster or emergency, 
the official declaration triggers certain federal response 
authorities and financial disaster assistance. In particular, 
when such a declaration is made, the President is authorized to 
direct any federal agency, with or without reimbursement, to 
assist state, tribal, and local governments and protect life 
and property. FEMA is responsible for coordinating federal 
agency response and ensuring the necessary federal capabilities 
are deployed at the appropriate place and time. In addition, 
FEMA provides direct support and financial assistance to 
states, tribal, and local governments and individuals as 
authorized under the Stafford Act. Once the President issues a 
declaration, federal resources are deployed in support of 
state, tribal, and local response efforts.
    FEMA's major Stafford Act programs for disaster response 
and recovery in the aftermath of a major disaster are in the 
Public Assistance Program and the Individual Assistance 
Program. Under both of these programs FEMA assistance may not 
duplicate other benefits or insurance, assistance is not 
intended to make ``one whole,'' and for-profit companies are 
generally ineligible for assistance.
    The Public Assistance Program, authorized primarily by 
sections 403, 406, and 407 of the Stafford Act, reimburses 
state, tribal, and local emergency response costs and provides 
grants to state, tribal, and local governments, as well as 
certain private non-profits to rebuild facilities. The Public 
Assistance Program generally does not provide direct services 
to citizens.

Disaster Simplified Assistance Value Enhancement Act or ``Disaster 
        SAVE''

    As part of the Disaster Mitigation Act of 2000 (P.L. 106-
390), Congress authorized FEMA to expedite assistance based on 
estimates for certain projects through simplified procedures in 
order to lower the cost of administering small repair projects. 
Prior to February, 2014, FEMA was able to approve and obligate 
funds based on estimates for public assistance projects 
estimated to cost below $68,500. Under SRIA, Congress directed 
FEMA to review the threshold, report to Congress and provided 
authority for FEMA to increase the threshold in the future. 
FEMA examined data indicating that if the threshold were 
increased to $120,000, 93 percent of the total number of 
projects issued for disaster recovery could be covered through 
these simplified, expedited procedures; an increase to $190,000 
would cover 95 percent of the projects and an increase to 
$400,000 would encompass 98 percent of the number of all 
projects issued for disaster recovery.\1\ After examining this 
and other factors such as cost savings and reporting the 
results to Congress, FEMA published notice in the Federal 
Register increasing the threshold to $120,000, to be adjusted 
annually with the Consumer Price Index.\2\ As required by SRIA, 
FEMA will review the threshold every three years.
---------------------------------------------------------------------------
    \1\Federal Emergency Management Agency. Determination on the Public 
Assistance Simplified Procedures Thresholds. (January 29, 2014) 
available at http://www.fema.gov/media-library-data/1391095896799-
50f74acda8e6de05dac297db1aad5669/
FY14+Public+Assistance+Simplified+Procedures+Thresholds.pdf.
    \2\79 Fed. Reg. 10685.
---------------------------------------------------------------------------
    The Committee continues to hear that a significant amount 
of Public Assistance projects are administered by FEMA in an 
inefficient and ineffective way. H.R. 1214 would increase the 
threshold to $500,000 for a period of four years. Raising the 
threshold to this amount would capture over 98 percent of the 
number of recovery projects FEMA administers. FEMA is required 
to report on cost-effectiveness, speed of recovery, capacity of 
grantees, past performance and accountability measures, in 
order to inform Congress as to the benefits of continuing or 
the need to allow the program to sunset in 2021, as provided in 
the legislation.
    FEMA testified on January 27, 2015, that increasing the 
simplified procedures threshold would result in lower 
administrative costs, faster project completions, and eliminate 
federal responsibility for project cost overruns.\3\ The 
Committee requests FEMA provide periodic updates throughout the 
four years on savings realized, the rate of appeals, the rate 
of deobligations, and other matters of congressional oversight 
interest.
---------------------------------------------------------------------------
    \3\Committee on Transportation and Infrastructure. ``Rebuilding 
after the Storm: Lessening Impacts and Speeding Recovery,'' January 27, 
2015.
---------------------------------------------------------------------------

                                HEARINGS

    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. 1214 during the 114th Congress:
    ``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, 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 begin exploring potential solutions and the principles that 
should be driving solutions to lower the overall costs of 
disasters and to help avoid devastating losses.

                 LEGISLATIVE HISTORY AND CONSIDERATION

    On February 24, 2017, Subcommittee on Economic Development, 
Public Buildings, and Emergency Management Chairman Lou 
Barletta (R-PA) introduced H.R. 1214, a bill to require the 
Administrator of the Federal Emergency Management Agency to 
conduct a program to use simplified procedures to issue public 
assistance for certain projects under the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act.
    On February 28, 2017, the Committee on Transportation and 
Infrastructure met in open session to consider H.R. 1214. The 
Committee ordered the bill 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. 1214 or ordering the measure 
reported. A motion to order H.R. 1214 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. 1214 from the 
Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, March 6, 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. 1214, the Disaster 
SAVE Act.
    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.
    Enclosure.

H.R. 1214--Disaster SAVE Act

    H.R. 1214 would require the Federal Emergency Management 
Agency (FEMA) to increase the threshold for what constitutes a 
small disaster relief project under the Public Assistance (PA) 
Grant Program. Under the bill, the definition of the cost of a 
small project would increase from $123,000 to $500,000. That 
increase would allow more projects to be designated as small. 
Small projects receive a larger share of their funding up-front 
relative to large projects; however, under H.R. 1214 the total 
amount of funding disbursed by FEMA would not change. The bill 
also would require FEMA to submit a report to the Congress on 
the cost-effectiveness of the PA program. Finally, the bill 
would expire on September 30, 2021, at which point FEMA could 
adjust the threshold through regulations.
    Based on information provided by FEMA on the administrative 
costs associated with approving and managing PA grants and 
collecting information necessary to complete the report, CBO 
estimates that the cost to implement H.R. 1214 would not exceed 
$500,000 in any year and over the 2018-2022 period; such 
spending would be subject to the availability of appropriated 
funds.
    Enacting H.R. 1214 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply. CBO 
estimates that enacting H.R. 1214 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2028.
    H.R. 1214 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 
require the Administrator of the Federal Emergency Management 
Agency to conduct a program to use simplified procedures when 
providing public assistance for certain projects under the 
Robert T. Stafford Disaster Relief and Emergency Assistance 
Act.

                          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 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. 1214 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. 1214 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. 1214 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

    Section 1 designates the short title as the ``Disaster 
Simplified Assistance Value Enhancement Act'' or the ``Disaster 
SAVE Act''.

Section 2: Simplified Procedure Program

    This section directs the Administrator of FEMA to raise the 
simplified procedures small projects threshold under Section 
422 of the Stafford Act (42 U.S.C. 5189) to $500,000 for a 
period of 4 years, to sunset on September 30, 2021. The 
Administrator must also provide a report to Congress on the 
increase.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    H.R. 1214 makes no changes in existing law.

                                  [all]
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