(2) funds appropriated to such functions for 
such period of time as may reasonably be needed to 
facilitate the orderly implementation of this section. 
(d) LIAISON OFFICE
TO ENSURE COORDINATION 
WITH THE DEPARTMENT OF HOMELAND SECURITY.— 
The Director shall establish a liaison office within the 
Agency to ensure adequate coordination with the Depart-
ment of Homeland Security during an actual or potential 
terrorist incident. 
SEC. 106. PERSONNEL AND OTHER TRANSFERS. 
(a) PERSONNEL PROVISIONS.— 
(1) APPOINTMENTS.—The Director may ap-
point and fix the compensation of such officers and 
employees, including investigators, attorneys, and 
administrative law judges, as may be necessary to 
carry out the respective functions transferred under 
section 105. Except as otherwise provided by law, 
such officers and employees shall be appointed in ac-
cordance with the civil service laws and their com-
pensation fixed in accordance with title 5, United 
States Code. 
(2) EXPERTS AND CONSULTANTS.—The Direc-
tor may obtain the services of experts and consult-
ants in accordance with section 3109 of title 5, 
United States Code, and compensate such experts 
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and consultants for each day (including traveltime) 
during which they are engaged in the actual per-
formance of such services at rates not in excess of 
the rate of pay for level IV of the Executive Sched-
ule under section 5315 of such title. The Director 
may pay experts and consultants who are serving 
away from their homes or regular place of business, 
travel expenses and per diem in lieu of subsistence 
at rates authorized by sections 5702 and 5703 of 
such title for persons in Government service em-
ployed intermittently. 
(b) DELEGATION AND ASSIGNMENT.—Except where 
otherwise expressly prohibited by law or otherwise pro-
vided by this title, the Director may delegate any of the 
functions transferred to the Director by section 105 and 
any function transferred or granted to the Director after 
the date of the transfers by section 105 to such officers 
and employees of the Agency as the Director may des-
ignate and may authorize successive redelegations of such 
functions as may be necessary or appropriate. No delega-
tion of functions by the Director under this subsection or 
under any other provision of this title shall relieve the Di-
rector of responsibility for the administration of such func-
tions. 
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(c) REORGANIZATION.—The Director may allocate or 
reallocate any function transferred under section 105 
among the officers of the Agency, and may establish, con-
solidate, alter, or discontinue such organizational entities 
in the Agency as may be necessary or appropriate if the 
Director, on or before the 30th day preceding the date 
of the allocation or reallocation, provides to the Committee 
on Transportation and Infrastructure of the House of 
Representatives and the Committee on Homeland Security 
and Governmental Affairs of the Senate written notice of 
the allocation or reallocation. 
(d) RULES.—The Director may prescribe, in accord-
ance with the provisions of chapters 5 and 6 of title 5, 
United States Code, such rules and regulations as the Di-
rector determines necessary or appropriate to administer 
and manage the functions of the Agency. 
(e) TRANSFER AND ALLOCATIONS OF APPROPRIA-
TIONS AND PERSONNEL.—Except as otherwise provided 
in this title, the personnel employed in connection with, 
and the assets, liabilities, contracts, property, records, and 
unexpended balances of appropriations, authorizations, al-
locations, and other funds employed, used, held, arising 
from, available to, or to be made available in connection 
with the functions transferred by section 105, subject to 
section 1531 of title 31, United States Code, shall be 
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transferred to the Agency. Unexpended funds transferred 
pursuant to this subsection shall be used only for the pur-
poses for which the funds were originally authorized and 
appropriated. 
(f) INCIDENTAL TRANSFERS.—The Director of the 
Office of Management and Budget, in consultation with 
the Director, may make such determinations as may be 
necessary with regard to the functions transferred by sec-
tion 105, and may make such additional incidental disposi-
tions of personnel, assets, liabilities, grants, contracts, 
property, records, and unexpended balances of appropria-
tions, authorizations, allocations, and other funds held, 
used, arising from, available to, or to be made available 
in connection with such functions, as may be necessary 
to carry out the provisions of this title. The Director of 
the Office of Management and Budget shall provide for 
the termination of the affairs of all entities terminated by 
this title and for such further measures and dispositions 
as may be necessary to effectuate the purposes of this 
title. 
(g) EFFECT ON PERSONNEL.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided by this title, the transfer pursuant to this title 
of full-time personnel (except special Government 
employees) and part-time personnel holding perma-
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nent positions shall not cause any such employee to 
be separated or reduced in grade or compensation 
for one year after the date of transfer of such em-
ployee under this title. 
(2) EXECUTIVE SCHEDULE POSITIONS.—Except 
as otherwise provided in this title, any person who, 
on the day preceding the date of the transfers of 
functions under section 105, held a position com-
pensated in accordance with the Executive Schedule 
prescribed in chapter 53 of title 5, United States 
Code, and who, without a break in service, is ap-
pointed in the Agency to a position having duties 
comparable to the duties performed immediately pre-
ceding such appointment shall continue to be com-
pensated in such new position at not less than the 
rate provided for such previous position, for the du-
ration of the service of such person in such new po-
sition. 
SEC. 107. SAVINGS PROVISIONS. 
(a) SAVINGS PROVISIONS.— 
(1) CONTINUING
EFFECT
OF
LEGAL
DOCU-
MENTS.—All orders, determinations, rules, regula-
tions, permits, agreements, grants, contracts, certifi-
cates, licenses, registrations, privileges, and other 
administrative actions— 
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(A) which have been issued, made, grant-
ed, or allowed to become effective by the Presi-
dent, any Federal agency or official thereof, or 
by a court of competent jurisdiction, in the per-
formance of functions that are transferred 
under section 105; and 
(B) which are in effect on the date of the 
transfers of functions under section 105, or 
were final before such date and are to become 
effective on or after such date, shall continue in 
effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in 
accordance with law by the President, the Di-
rector, or other authorized official, a court of 
competent jurisdiction, or by operation of law. 
(2) PROCEEDINGS NOT AFFECTED.—The provi-
sions of this title shall not affect any proceedings, 
including notices of proposed rulemaking, or any ap-
plication for any license, permit, certificate, or finan-
cial assistance pending before the Agency on the 
date of the transfers of functions under section 105, 
with respect to functions transferred by section 105 
but such proceedings and applications shall continue. 
Orders shall be issued in such proceedings, appeals 
shall be taken therefrom, and payments shall be 
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made pursuant to such orders, as if this title had 
not been enacted, and orders issued in any such pro-
ceedings shall continue in effect until modified, ter-
minated, superseded, or revoked by a duly author-
ized official, by a court of competent jurisdiction, or 
by operation of law. Nothing in this paragraph shall 
be deemed to prohibit the discontinuance or modi-
fication of any such proceeding under the same 
terms and conditions and to the same extent that 
such proceeding could have been discontinued or 
modified if this title had not been enacted. 
(3) SUITS NOT AFFECTED.—The provisions of 
this title shall not affect suits commenced before the 
date of the transfers of functions under section 105, 
and in all such suits, proceedings shall be had, ap-
peals taken, and judgments rendered in the same 
manner and with the same effect as if this title had 
not been enacted. 
(4) NONABATEMENT OF ACTIONS.—No suit, ac-
tion, or other proceeding commenced by or against 
the Agency, or by or against any individual in the 
official capacity of such individual as an officer of 
the Agency, shall abate by reason of the enactment 
of this title. 
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(5) ADMINISTRATIVE
ACTIONS
RELATING
TO 
PROMULGATION OF REGULATIONS.—Any administra-
tive action relating to the preparation or promulga-
tion of a regulation by the Agency relating to a 
function transferred under section 105 may be con-
tinued by the Agency with the same effect as if this 
title had not been enacted. 
(b) REFERENCES.—Any reference in any other Fed-
eral law, Executive order, rule, regulation, or delegation 
of authority, or any document of or pertaining to a depart-
ment, agency, or office from which a function is trans-
ferred by section 105— 
(1) to the head of such department, agency, or 
office is deemed to refer to the head of the depart-
ment, agency, or office to which such function is 
transferred; or 
(2) to such department, agency, or office is 
deemed to refer to the department, agency, or office 
to which such function is transferred. 
SEC. 108. CONFORMING AND TECHNICAL AMENDMENTS. 
(a) CHIEF FINANCIAL OFFICER.—Section 901(b)(2) 
of title 31, United States Code, is amended by adding at 
the end the following: 
‘‘(H) The Federal Emergency Management 
Agency.’’. 
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(b) RECOMMENDED LEGISLATION.— 
(1) IN GENERAL.—After consultation with the 
appropriate committees of Congress and the Direc-
tor of the Office of Management and Budget, the 
Director shall prepare recommended legislation con-
taining technical and conforming amendments to re-
flect the changes made by this title. 
(2) SUBMISSION TO CONGRESS.—Not later than 
90 days after the last day of the transition period 
referred to in section 105(b), the Director shall sub-
mit to Congress a report containing the rec-
ommended legislation. 
(c) REPEALS.—The following provisions of the 
Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) 
are repealed: 
(1) Section 503(1). 
(2) Section 507. 
Subtitle B—Federal Emergency 
Management Agency Personnel 
SEC. 121. WORKFORCE DEVELOPMENT. 
(a) IN GENERAL.—Subpart I of part III of title 5, 
United States Code, is amended by adding at the end the 
following: 
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‘‘CHAPTER 101—FEDERAL EMERGENCY 
MANAGEMENT AGENCY PERSONNEL 
‘‘Sec. 
‘‘10101. Definitions. 
‘‘10102. Human capital strategy. 
‘‘10103. Recruitment bonuses for the Federal Emergency Management Agency. 
‘‘10104. Retention bonuses for the Federal Emergency Management Agency. 
‘‘10105. Disaster workforce reserve cadre. 
‘‘§ 10101. Definitions 
‘‘For purposes of this chapter— 
‘‘(1) the term ‘Federal Emergency Management 
Agency’ or ‘Agency’ shall be considered to refer to 
the Federal Emergency Management Agency estab-
lished under section 101 of the RESPOND Act of 
2006; and 
‘‘(2) the term ‘Director of the Federal Emer-
gency Management Agency’ or ‘Director’ shall be 
considered to refer to the Director of the Federal 
Emergency Management Agency appointed under 
section 103 of the RESPOND Act of 2006. 
‘‘§ 10102. Human capital strategy 
‘‘(a) IN GENERAL.—The Director of the Federal 
Emergency Management Agency shall develop a human 
capital strategy to ensure that the Agency has a workforce 
of the appropriate size and with the appropriate skills and 
training to effectively carry out the mission and respon-
sibilities of the Agency, consistent with the policies and 
plans developed pursuant to this section. 
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‘‘(b) CONTENT.—The strategy shall include, at a 
minimum— 
‘‘(1) a workforce development strategy for the 
Agency; 
‘‘(2) an assessment of the workforce character-
istics and future needs of the Agency; 
‘‘(3) an analysis of how the Agency’s human re-
sources policies and programs align with the Agen-
cy’s mission, strategic goals, and performance out-
comes; and 
‘‘(4) any other elements that the Director deter-
mines necessary to develop and maintain a human 
capital strategy, including elements described in sec-
tion 1402. 
‘‘(c) SCHEDULE.—The Director shall transmit to 
Congress— 
‘‘(1) the strategy developed under this section 
not later than 6 months after the date of enactment 
of this chapter; and 
‘‘(2) periodic updates to the strategy referred to 
in paragraph (1). 
‘‘§ 10103. Recruitment bonuses for the Federal Emer-
gency Management Agency 
‘‘(a) IN GENERAL.—The Director of the Federal 
Emergency Management Agency may pay a bonus to an 
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individual in order to recruit the individual for a position 
within the Agency that would otherwise be difficult to fill 
in the absence of such a bonus. 
‘‘(b) BONUS AMOUNT.— 
‘‘(1) IN
GENERAL.—The amount of a bonus 
under this section shall be determined by the Direc-
tor, but may not exceed 25 percent of the annual 
rate of basic pay of the position involved. 
‘‘(2) FORM OF PAYMENT.—A bonus under this 
section shall be paid in the form of a lump-sum pay-
ment and shall not be considered to be part of basic 
pay. 
‘‘(c) SERVICE AGREEMENTS.—Payment of a bonus 
under this section shall be contingent upon the employee 
entering into a written service agreement with the Federal 
Emergency Management Agency. The agreement shall in-
clude— 
‘‘(1) the period of service the individual shall be 
required to complete in return for the bonus; and 
‘‘(2) the conditions under which the agreement 
may be terminated before the agreed-upon service 
period has been completed, and the effect of the ter-
mination. 
‘‘(d) ELIGIBILITY.—A bonus under this section may 
not be paid to recruit an individual for— 
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‘‘(1) a position to which an individual is ap-
pointed by the President, by and with the advice and 
consent of the Senate; 
‘‘(2) a position in the Senior Executive Service 
as a noncareer appointee (as defined in section 
3132(a)); or 
‘‘(3) a position which has been excepted from 
the competitive service by reason of its confidential, 
policy-determining, policy-making, or policy-advo-
cating character. 
‘‘(e) TERMINATION.—The authority to pay bonuses 
under this section shall terminate 5 years after the date 
of enactment of this chapter. 
‘‘§ 10104. Retention bonuses for the Federal Emer-
gency Management Agency 
‘‘(a) AUTHORITY.—The Director of the Federal 
Emergency Management Agency may pay, on a case-by- 
case basis, a bonus under this section to an employee of 
the Agency if— 
‘‘(1) the unusually high or unique qualifications 
of the employee or a special need of the Agency for 
the employee’s services makes it essential to retain 
the employee; and 
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‘‘(2) the Director determines that, in the ab-
sence of such a bonus, the employee would be likely 
to leave— 
‘‘(A) the Federal service; or 
‘‘(B) for a different position in the Federal 
service. 
‘‘(b) SERVICE AGREEMENT.—Payment of a bonus 
under this section is contingent upon the employee enter-
ing into a written service agreement with the Agency to 
complete a period of service with the Agency. Such agree-
ment shall include— 
‘‘(1) the period of service the individual shall be 
required to complete in return for the bonus; and 
‘‘(2) the conditions under which the agreement 
may be terminated before the agreed-upon service 
period has been completed, and the effect of the ter-
mination. 
‘‘(c) BONUS AMOUNT.— 
‘‘(1) IN
GENERAL.—The amount of a bonus 
under this section shall be determined by the Direc-
tor, but may not exceed 25 percent of the annual 
rate of basic pay of the position involved. 
‘‘(2) FORM OF PAYMENT.—A bonus under this 
section shall be paid in the form of a lump-sum pay-
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ment and shall not be considered to be part of basic 
pay. 
‘‘(d) LIMITATION.—A bonus under this section may 
not be based on any period of service which is the basis 
for a recruitment bonus under section 10103. 
‘‘(e) TERMINATION OF AUTHORITY.—The authority 
to grant bonuses under this section shall expire 5 years 
after the date of enactment of this chapter. 
‘‘§ 10105. Disaster workforce reserve cadre 
‘‘(a) ESTABLISHMENT.—There is established within 
the Federal Emergency Management Agency a disaster 
workforce reserve cadre to meet the Agency’s surge re-
quirements during periods of emergency, as determined by 
the Director of the Federal Emergency Management 
Agency. 
‘‘(b) REVIEW.—Not later than 90 days after the date 
of enactment of this chapter, the Director shall conduct 
a comprehensive review of the current disaster workforce 
reserves for the purpose of identifying areas for redevelop-
ment. As part of the review, the Director shall review and 
redevelop the disaster workforce to create a capable cadre 
by— 
‘‘(1) providing for the effective utilization of the 
disaster workforce; 
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‘‘(2) establishing consistent and shorter disaster 
workforce mobilization times; 
‘‘(3) establishing standards to meet mission re-
quirements; 
‘‘(4) establishing a robust credentialing system 
for the disaster workforce to integrate capabilities 
and skill sets into job descriptions for a more effec-
tive and faster response capability; 
‘‘(5) establishing employment protections for 
disaster workforce reservists; and 
‘‘(6) establishing a streamlined deployment sys-
tem. 
‘‘(c) ANNUITANTS.—If an individual receiving an an-
nuity from the Civil Service Retirement and Disability 
Fund becomes temporarily reemployed pursuant to this 
section, such annuity shall not be discontinued thereby. 
An individual so reemployed shall not be considered an 
employee for the purposes of chapter 83 or 84. 
‘‘(d) EXPENSES.—The Director may provide mem-
bers of the disaster workforce reserve cadre transportation 
and per diem in lieu of subsistence, in accordance with 
applicable provisions of this title, for the purpose of par-
ticipating in any training that relates to service as a mem-
ber of the disaster workforce reserve cadre.’’. 
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(b) CONFORMING AMENDMENT.—The table of chap-
ters for subpart I of part III of title 5, United States 
Code, is amended by adding at the end the following: 
‘‘101. Federal Emergency Management Agency personnel ...................... 10101’’. 
TITLE II—STRENGTHENING THE 
FEDERAL EMERGENCY MAN-
AGEMENT AGENCY 
SEC. 201. CATASTROPHIC PLANNING PROGRAM. 
Subtitle A of title VI of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 U.S.C. 
5196 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 616. CATASTROPHIC PLANNING PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Director shall establish 
a program to assist States and local governments rep-
resenting areas at substantial risk for a catastrophic inci-
dent, and other Federal agencies as appropriate, in devel-
oping a comprehensive program to prepare for a cata-
strophic incident. 
‘‘(b) ACTIVITIES.—The program may include plan-
ning, training, exercises, and such other activities as the 
Director considers necessary. 
‘‘(c) SITE SELECTION.—In conducting the program, 
the Director, in coordination with a State or local govern-
ment, shall select sites within the jurisdiction of such 
State or local government that are at substantial risk for 
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a catastrophic incident and require additional prepared-
ness activities to ensure an effective response and recov-
ery. 
‘‘(d) CATASTROPHIC INCIDENT.—In this section, the 
term ‘catastrophic incident’ means any natural or man-
made incident, including terrorism, that results in extraor-
dinary levels of mass casualties, damage, or disruption se-
verely affecting the population, infrastructure, environ-
ment, economy, national morale, or government functions. 
‘‘(e) REPORT.—The Director shall submit to the 
Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Home-
land Security and Governmental Affairs of the Senate a 
report on the preparedness levels of participating jurisdic-
tions. 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section 
$30,000,000 for fiscal year 2007, $32,000,000 for fiscal 
year 2008, $34,000,000 for fiscal year 2009, and such 
sums as are necessary for each fiscal year thereafter. Such 
sums shall remain available until expended.’’. 
SEC. 202. EMERGENCY RESPONSE TEAMS. 
Section 303 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5144) is 
amended— 
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(1) by striking the section heading and all that 
follows through ‘‘The President shall’’ and inserting 
the following: 
‘‘SEC. 303. EMERGENCY SUPPORT AND RESPONSE TEAMS. 
‘‘(a) EMERGENCY SUPPORT TEAMS.—The President 
shall’’; and 
(2) by adding at the end the following: 
‘‘(b) EMERGENCY RESPONSE TEAMS.— 
‘‘(1) ESTABLISHMENT.—In carrying out sub-
section (a), the President, acting through the Direc-
tor of the Federal Emergency Management Agency, 
shall establish at a minimum 3 national response 
teams and sufficient regional and other response 
teams as may be necessary to meet the incident 
management responsibilities of the Federal Govern-
ment. 
‘‘(2) TARGET CAPABILITY LEVEL.—The Direc-
tor shall ensure that specific target capability levels, 
as defined pursuant to the guidelines established 
under section 703(b)(2)(A), are established for Fed-
eral emergency response teams. 
‘‘(3) 
PERSONNEL.—The 
President, 
acting 
through the Director, shall ensure that the Federal 
emergency response teams consist of adequate num-
bers of properly planned, organized, equipped, 
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trained, and exercised personnel to achieve the es-
tablished target capability levels. 
‘‘(4) READINESS
REPORTING.—The Director 
shall evaluate team readiness on a regular basis and 
report team readiness levels in the report required 
under section 703(b)(8)(A).’’. 
SEC. 203. EMERGENCY OPERATIONS CENTERS. 
(a) NATIONAL.—The Director shall maintain and op-
erate within the Federal Emergency Management Agency 
a national emergency operations center to support Federal 
emergency operations. 
(b) REGIONAL.—The Director shall ensure that each 
region of the Agency maintains and operates an emer-
gency operations center to support Federal emergency op-
erations. 
(c) TARGET CAPABILITY LEVELS.—The Director 
shall ensure that specific target capability levels, as de-
fined pursuant to the guidelines established under section 
703(b)(2)(A) of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (as added by this Act), are 
established for national and regional emergency operations 
centers. 
(d) PERSONNEL.—The Director shall ensure that the 
national and regional emergency operations centers consist 
of adequate numbers of properly planned, organized, 
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equipped, trained, and exercised personnel to achieve the 
established target capability levels. 
(e) READINESS REPORTING.—The Director shall 
evaluate the readiness of the emergency operations centers 
on a regular basis and report readiness levels in the report 
required under section 703(b)(8)(A) of such Act. 
SEC. 204. LOGISTICS. 
(a) IN GENERAL.—The Director shall develop an effi-
cient, transparent, and flexible logistics system for pro-
curement and delivery of goods and services necessary for 
an effective and timely response to major disasters and 
other emergencies and for real-time visibility of items at 
each point throughout the logistics system. 
(b) SYSTEM DEVELOPMENT.—The Director shall en-
sure that the logistics system is developed through the use 
of in-house, private sector, and other Federal agency logis-
tics capabilities (or a combination thereof). 
(c) STATE AND LOCAL CONTRACTS.—The Director 
shall encourage State and local governments to establish 
contracts with private sector vendors for disaster relief 
supplies in advance of major disasters and other emer-
gencies. 
SEC. 205. COMMUNICATIONS. 
(a) COMMUNICATIONS CAPABILITY.—The Director 
shall establish and maintain a durable, deployable, oper-
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able, and interoperable communications capability within 
the Agency in order to gain and retain incident manage-
ment communications in areas that have lost regular com-
munications systems during major disasters and other 
emergencies. 
(b) RECONNAISSANCE TEAMS.—The Director shall 
establish self-sustaining reconnaissance teams to relay in-
formation back to Agency headquarters to improve situa-
tional awareness and incident management coordination. 
SEC. 206. EMERGENCY EQUIPMENT ASSISTANCE. 
Subtitle B of title VI of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 U.S.C. 
5197 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 630. EMERGENCY EQUIPMENT ASSISTANCE. 
‘‘(a) GRANTS.—The Director shall carry out a pro-
gram to make grants to States and local governments to 
improve the response capabilities of the States and local 
governments in the event of a major disaster or other 
emergency. 
‘‘(b) USE OF FUNDS.—Grants amounts received by 
a State or local government under this section shall be 
used— 
‘‘(1) to purchase or improve commercially avail-
able interoperable communications equipment that— 
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