49–006 

109TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 109–364 

GULF COAST RECOVERY ACT OF 2005 

DECEMBER 22, 2005.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. YOUNG of Alaska, from the Committee on Transportation and 

Infrastructure, submitted the following 

R E P O R T 

[To accompany H.R. 4438] 

The Committee on Transportation and Infrastructure, to whom 

was referred the bill (H.R. 4438) to establish special rules with respect to certain disaster assistance provided for Hurricane Katrina 

and Hurricane Rita, having considered the same, report favorably 

thereon without amendment and recommend that the bill do pass. 

PURPOSE OF THE LEGISLATION

The purpose of H.R. 4438 is to establish special rules with respect to certain disaster assistance provided for Hurricanes Katrina 

and Rita to ensure an effective and expeditious recovery of the Gulf 

region. 

BACKGROUND AND NEED FOR THE LEGISLATION

On August 23rd, the National Weather Service began tracking a 

tropical depression centered in the Southeastern Bahamas. On August 24th, Tropical Depression #12 became Tropical Storm Katrina, 

with sustained winds above 40 miles per hour (mph). Hurricane 

strength of Category 1 was achieved on August 25th as Hurricane 

Katrina (Katrina) sustained winds over 75 mph. 

Once the storm reached the Gulf of Mexico, Hurricane Katrina 

intensified and sped up, achieving Category 3 status (sustained 

wind speeds exceeding 111 mph) on August 26th. On August 28th, 

one day before landfall on the Gulf Coast, Katrina became a Category 5 hurricane, with wind speeds in excess of 150 mph. As the 

storm moved into shallower waters closer to land, wind speeds decreased and Katrina was downgraded to a Category 4 hurricane. 

Katrina eventually made landfall in Southeastern Louisiana with 

sustained winds over 140 mph at the eye of the storm, and wind 


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gusts over 100 mph in the city of New Orleans, just west of the 

eye of the storm. Katrina also resulted in rainfall exceeding 8–10 

inches over much of the storm’s path. Direct storm damage was felt 

in Louisiana, Mississippi, Alabama, Georgia, Florida, and Tennessee, though Louisiana and Mississippi received the brunt of the 

storm. 

When Hurricane Katrina finally dissipated over Tennessee, it left 

in its wake catastrophic devastation. Covering an area estimated to 

be near 90,000 square miles, the storm ravaged four states, caused 

damage in surrounding states, and impacted the entire country. 

While neither the most powerful, nor most deadly storm to hit 

the United States, its combined wind speed, storm surge, flooding 

effect, and deadliness make it one of the worst natural disasters in 

American history. The impact of Katrina on human life was immense. The storm caused the deaths of over 1,300 people, the overwhelming majority of whom were in Louisiana and Mississippi, 

with known deaths also in Florida, Alabama, Georgia and Tennessee. 

Katrina caused flooding in 6 states, mostly from storm surge and 

the high rate of rainfall. However, in Louisiana, the worst flooding 

was in the New Orleans area, caused by the breaching of a number 

of levees. At least 80 percent of the City of New Orleans was at 

some point underwater, though the flooding ranged from as little 

as one or two feet in areas such as the French Quarter to over 20 

feet in the Lower Ninth Ward. Portions of Mississippi and Mobile, 

Alabama were underwater as a result of a 20 to 30-foot storm 

surge from the Gulf of Mexico and Mobile Bay. While just three 

weeks after Katrina, many of the breaks in the levees surrounding 

New Orleans had been repaired and much of the city had been 

drained, several of the temporary repairs were damaged or destroyed by Hurricane Rita, again causing flooding in New Orleans. 

The economic impact from Hurricane Katrina and Hurricane 

Rita on the Gulf region has been substantial. Flooding and storm 

surge damaged hundreds of thousands of homes, leaving many people homeless. Additionally, the disaster displaced thousands of employers, leaving a significant number of people unemployed. With 

the displacement of hundreds of thousands of people, many parishes, counties, cities, and towns have lost their resident tax base, 

including property and sales taxes, which are typically the primary 

source of revenue for local governments. While some state and local 

governments had maintained emergency reserves, these funds have 

largely been depleted, forcing widespread layoffs of municipal employees. 

A successful recovery requires the provision of essential governmental services. For most governments in the affected region, this 

will mean the need for more manpower than has existed since the 

storm and in some circumstances, more than what existed prior to 

the storm. With depleted reserve resources and limited tax revenue, local governments are struggling to provide the level of governmental services required to recover from the hurricanes. 

SECTION-BY-SECTION OF THE LEGISLATION

Section 1. This section provides that the short title for the legislation is the Gulf Coast Recovery Act of 2005. 


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Section 2. Section 2 authorizes the president to provide federal 

assistance under Sections 402 and 403 of the Robert T. Stafford 

Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170a; 

5170b) (Stafford Act) to eligible state and local governments for 

base and overtime pay for essential recovery personnel. 

Eligibility is determined by a showing of loss exceeding 25 percent of annual operating revenue of the state or local government, 

no later than June 30, 2006. To determine eligibility, FEMA must 

look at the most recent full fiscal year prior to the date of the disaster declarations made for Hurricane Katrina and Hurricane Rita 

on or after August 29, 2005. Losses attributable to Hurricanes 

Katrina and Rita through June 30, 2006 must equal or exceed 25 

percent of that prior full fiscal year’s operating revenue. 

After eligibility is determined, reimbursement may be made for 

base pay and overtime expenses incurred from January 1, 2006, 

through June 30, 2006. Assistance is provided on a 75/25 Federal/ 

non-Federal basis. This section is not intended to alter the cost 

share for expenses, including overtime expenses, otherwise eligible 

for reimbursement under the Stafford Act. 

Under this section, state and local governments are eligible for 

assistance in providing fire, law enforcement, emergency medical, 

public works, emergency management, planning, and building code 

services. State and local governments may provide these services 

directly, or by contract or mutual aid agreement. It is the Committee’s expectation that ‘‘building code services’’ includes staff involved in the permitting and the inspection process, including the 

enforcement of a building code, regulation, or ordinance pertaining 

to construction, development, or floodplain management. 

Section 3. This section amends Section 2(a) of Public law 109–

88, the Community Disaster Loan Act of 2005 to raise the cap on 

Community Disaster Loans from 25 percent to 50 percent of the operating budget of the applicant. This provision will allow some local 

communities to borrow additional funds to support basic government activities. 

Section 4. This section sets the federal assistance for debris removal at 100 percent for disaster declarations made for Hurricanes 

Katrina and Rita on or after August 29, 2005, to eliminate the current disincentive for local governments to utilize cost-effective, preexisting debris removal contracts. 

The two hurricanes caused significant amounts of debris across 

the region, including downed trees, damaged cars, and construction 

materials. Under the Stafford Act, debris removal assistance may 

be provided for all public property and some private property in 

areas designated by the disaster declaration. Following the disaster 

declarations, the president authorized 100 percent federal assistance for debris removal for the first 30 days, followed by a series 

of extensions. The level of assistance is uncertain for future federal 

debris removal beyond the current extensions. 

Local governments have three options for the removal of debris 

following a disaster declaration; remove the debris using their own 

resources, contract for removal with the private sector, or contract 

with the U.S. Army Corp of Engineers (USACE) for debris removal. 

FEMA reimburses the local government at the designated rate regardless of who carries out the work. 


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However, the federal cost share may vary depending upon who 

conducts the work. For example, when the work is performed by 

the local government or by private contractors, the federal cost 

share is determined at the time the cost is incurred. This means 

the local cost share may increase if the president reduces the federal share at a later point in the disaster. In contrast, if the work 

is carried out by the USACE, the federal share is determined at 

the time the contract is signed. This policy creates a strong incentive for local governments to contract with the USACE early in the 

disaster when the federal share is set at 100 percent to guarantee 

their cost share. 

Given the potential for the president to lower the federal share 

from 100 percent to 75 percent, local governments have a strong financial incentive to contract with the USACE even if the Corps’ price is substantially higher than their local contractors. Due to 

this loophole in FEMA policy, local governments are canceling costeffective, pre-existing contracts with private contractors and contracting with the USACE to guarantee the 100 percent federal assistance. As a result, local and private contractor involvement is 

limited, increasing the total cost to the federal government. 

This section requires a 100 percent cost share for the life of the 

disaster, which will allow local governments to choose the most 

cost-effective means of debris removal, regardless of who provides 

the work. 

Section 5. Section 5 modifies the federal share for the Hazard 

Mitigation Grant Program (HMGP) with respect to disaster declarations for Hurricanes Katrina and Rita made on or after August 

29, 2005. The federal cost share for HMGP projects is set at a minimum of 75 percent for those measures approved within a one-year 

period from the date of enactment. This provision provides the 

president with the discretion to adjust the federal share up to 100 

percent, but prohibits the federal cost share from falling below 75 

percent. It is the Committee’s expectation that the president will 

utilize this authority to waive the state and local cost share requirements to ensure that, to the greatest extent practicable, costeffective mitigation projects are incorporated into the initial rebuilding of Gulf Coast communities. 

This section also urges the president to assist the state and local 

governments in the HMGP program, from initial planning stages 

through final project approval, and expedite the process. 

Additionally, Section 5(b) amends Section 404(a) of the Stafford 

Act to restore the Hazard Mitigation Grant Program percentage 

from 7.5 percent to its historic level of 15 percent. This provision 

was included in H.R. 3181 and was approved by the House of Representatives during the 108th Congress. 

The Committee encourages FEMA to include ‘‘demolition and rebuild’’ among mitigation activities eligible under the mitigation 

grant programs authorized by the Stafford Act, particularly with 

respect to assistance provided pursuant to disaster declarations 

made for Hurricane Katrina or Hurricane Rita on or after August 

29, 2005. Demolition and rebuild should be an eligible activity only 

when it is necessary to meet a community’s overall goals, when it 

encourages safe and livable housing, and when it is determined to 

be feasible and cost-effective. The Committee expects FEMA to provide guidance to the field within 90 days of enactment for ‘‘demoliVerDate Aug 31 2005 03:39 Jan 06, 2006 Jkt 049006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\HR364.XXX HR364

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tion and rebuild’’ project implementation. The Committee recognizes that some flood hazard areas, such as floodways, pose significant risks to residential structures and expects the guidance to 

avoid use of ‘‘demolish and rebuild’’ in such high risk areas. 

U.S. 90 in Mississippi was severely damaged by Hurricane 

Katrina. The St. Louis Bay and Biloxi Bay bridges of U.S. 90 were 

destroyed by the hurricane. U.S. 90 is a Federal-aid highway eligible for Emergency Relief (ER) funding under section 125 of Title 

23, United States Code. Under the Emergency Relief program, 

where a temporary structure or an alternate existing route is not 

reasonable or practical as a temporary connection, construction of 

a temporary ferry service (ferryboat, ferry operation and maintenance, docking and loading facilities) is eligible for ER funds. ER 

participation in the ferryboat is limited to acquisition costs, less resale value, or to a reasonable rental fee. Emergency Relief Manual 

(August 2003), Chapter 2, section (B)(2). The Committee understands that Mississippi may need to use Emergency Relief funds to 

institute a temporary ferry service until the destroyed U.S. 90 

bridges are replaced. The Committee strongly supports the use of 

ER funds to institute such a ferry service. 

Section 6. This section extends the Disaster Unemployment Assistance (‘‘DUA’’) Program with respect to disaster declarations for 

Hurricane Katrina and Hurricane Rita made on or after August 29, 

2005, to 52 weeks after the date of the disaster declaration. The 

section also sets the minimum level of assistance for individuals at 

not less than 50 percent of the national average of weekly unemployment benefits. 

Section 7. This section amends the Stafford Act by adding Section 630. Section 630 creates an emergency equipment grant program under the direction of the Director of the Federal Emergency 

Management Agency (FEMA) to improve response capabilities of 

states and local governments in the event of a major disaster or 

other emergency. The grant program is intended to provide grants 

to state and local governments for the purchase or improvement of 

emergency communications systems to facilitate interoperability 

and better coordination between emergency communication systems, including satellite phones and satellite communication equipment. Grants through this program are also available to purchase 

mobile equipment to generate emergency power and train first responders and emergency personnel on the communication and mobile power equipment. Technical assistance related to the procurement, installation and use of this equipment is also allowable as 

needed by the state and local governments. The program is authorized to be appropriated $200,000,000 for fiscal years 2006, 2007, 

and 2008. 

LEGISLATIVE HISTORY AND COMMITTEE CONSIDERATION

The Subcommittee on Economic Development, Public Buildings, 

and Emergency Management held a series of hearings in connection with Hurricane Katrina. These hearings focused on the many 

different aspects of the response and recovery of the Gulf region. 

On October 6, 2005, the Subcommittee held an oversight hearing 

to examine FEMA’s ability to manage a successful recovery of the 

region. On October 18, the Subcommittee held a joint hearing with 

the Subcommittee on Water Resources and Environment on options 


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for and the feasibility of rebuilding New Orleans. On November 3, 

the Subcommittee held a hearing to consider legislative proposals 

relating to Hurricane Katrina recovery operations. 

On December 6, 2005, Mr. Shuster, Ms. Norton, Mr. Young of 

Alaska, and Mr. Oberstar introduced H.R. 4438, which was referred to the Committee on Transportation and Infrastructure. On 

December 7, 2005, the Full Committee met in open session to consider H.R. 4438. A motion by Mr. Shuster to order H.R. 4438 favorably reported to the House was agreed to by the Full Committee 

by voice vote with a quorum present. There were no recorded votes 

taken during Committee consideration of H.R. 4438. 

ROLLCALL 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 rollcall 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 rollcall votes 

taken in connection with ordering H.R. 4438 favorably reported to 

the House. 

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(d)(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 not been 

received. The Congressional Budget Office has informed the Committee that it expects H.R. 4438 will result in an increase in direct 

spending by $465,000,000 for the fiscal year 2006. Spending will 

decrease by a total of $465,000,000 over the three year period of 

2013, 2014, and 2015, producing no net increase in funding over 

the next ten years. 

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 below. 

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 objective of this legislation are to provide a successful, safe, efficient, and timely recovery for the Gulf Region. 

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 expects H.R. 

4438 will result in an increase in direct spending by $465,000,000 

for the fiscal year 2006. Spending will decrease by a total of 


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$465,000,000 over the three year period of 2013, 2014, and 2015, 

producing no net increase in funding over the next ten years. 

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. 4438 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

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

SECTION 2 OF THE COMMUNITY DISASTER LOAN ACT 

OF 2005 

SEC. 2. DISASTER LOANS. 

(a) ESSENTIAL SERVICES.—Of the amounts provided in Public 

Law 109–62 for ‘‘Disaster Relief’’, up to $750,000,000 may be transferred to the Disaster Assistance Direct Loan Program for the cost 

of direct loans as authorized under section 417 of the Robert T. 

Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 

5184) to be used to assist local governments in providing essential 


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services: Provided, That such transfer may be made to subsidize 

gross obligations for the principal amount of direct loans not to exceed $1,000,000,000 under section 417 of the Stafford Act: Provided 

further, That notwithstanding section 417(b) of the Stafford Act, 

the amount of any such loan issued pursuant to this section may 

exceed $5,000,000: Provided further, That notwithstanding section 

417(c)(1) of the Stafford Act, such loans may not be canceled: Provided further, That the cost of modifying such loans shall be as defined in section 502 of the Congressional Budget Act of 1974 (2 

U.S.C. 661a): Provided further, That notwithstanding section 417(b) 

of the Stafford Act such a loan may not exceed 50 percent of the operating budget of the local government to which the loan is made 

for the fiscal year in which the disaster occurs. 

* * * * * * * 

ROBERT T. STAFFORD DISASTER RELIEF AND 

EMERGENCY ASSISTANCE ACT 

* * * * * * * 

TITLE IV—MAJOR DISASTER 

ASSISTANCE PROGRAMS 

* * * * * * * 

SEC. 404. HAZARD MITIGATION. 

(a) IN GENERAL.—The President may contribute up to 75 percent 

of the cost of hazard mitigation measures which the President has 

determined are cost-effective and which substantially reduce the 

risk of future damage, hardship, loss, or suffering in any area affected by a major disaster. Such measures shall be identified following the evaluation of natural hazards under section 322 and 

shall be subject to approval by the President. Subject to section 

322, the total of contributions under this section for a major disaster shall not exceed ø7.5¿ 15 percent of the estimated aggregate 

amount of grants to be made (less any associated administrative 

costs) under this Act with respect to the major disaster. 

* * * * * * * 

TITLE VI—EMERGENCY PREPAREDNESS 

* * * * * * * 

Subtitle B—General Provisions 

* * * * * * * 

SEC. 630. EMERGENCY EQUIPMENT ASSISTANCE. 

(a) GRANTS.—The Director shall carry out a program to make 

grants to States and local governments— 

(1) to purchase or improve commercially available interoperable communications equipment that— 


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(A) complies with, where applicable, national voluntary 

consensus standards; 

(B) facilitates interoperability, coordination, and integration between and among emergency communications systems (including satellite phone and satellite communications equipment); and 

(C) ensures that first responders, government officials, 

and emergency personnel are able to adequately and effectively communicate with each other in the event of a major 

disaster or other emergency; 

(2) to purchase mobile equipment to generate emergency 

power; and 

(3) to train first responders and emergency personnel on how 

best to use effectively such equipment. 

(b) PURPOSE.—The purpose of the program shall be to improve the 

response capabilities of States and local governments in the event 

of a major disaster or other emergency. 

(c) APPLICATIONS.—A State or local government seeking a grant 

under this section shall submit an application to the Director at 

such time, in such manner, and accompanied by such information 

as the Director may require. 

(d) TECHNICAL ASSISTANCE.—The Director shall provide to States 

and local governments technical assistance with respect to the procurement, installation, and use of equipment under subsection 

(a)(1). 

(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $200,000,000 for each of 

fiscal years 2006, 2007, and 2008. 

* * * * * * * 

Æ 


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