(c) USE OF FUNDS.— 
(1) TYPES OF OVERSIGHT ACTIVITIES.—Over-
sight funds may be used for the following types of 
oversight activities related to Agency mission assign-
ments: 
(A) Monitoring, tracking, and auditing ex-
penditures of funds. 
(B) Ensuring that sufficient management 
and internal control mechanisms are available 
so that Agency funds are spent appropriately 
and in accordance with all applicable laws and 
regulations. 
(C) Reviewing selected contracts and other 
activities. 
(D) Investigating allegations of fraud in-
volving Agency funds. 
(E) Conducting and participating in fraud 
prevention activities with other Federal, State, 
and local government personnel and contrac-
tors. 
(2) OTHER MISSION ASSIGNMENTS.—Oversight 
funds may be expended for oversight activities re-
lated to a disaster mission assignment other than 
the mission assignment for which the funds were ini-
tially provided. 
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(3) PROGRESS REPORTS.—Oversight funds may 
be used to produce progress reports required under 
subsection (e). 
(d) RESTRICTION ON USE OF FUNDS.—Oversight 
funds may not be used to finance existing and inherent 
agency oversight responsibilities related to direct agency 
appropriations used for disaster response, relief, and re-
covery activities. 
(e)
FEDERAL
DISASTER
ASSISTANCE
ACCOUNT-
ABILITY REPORTS.—A Federal agency receiving oversight 
funds under this section shall submit annually to the Di-
rector and the appropriate committees of Congress a con-
solidated report regarding the use of such funds, including 
information summarizing oversight activities and the re-
sults achieved. 
(f) OVERSIGHT FUNDS.—In this section, the term 
‘‘oversight funds’’ means funds referred to in subsection 
(b) that are designated for use in performing oversight 
activities. 
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TITLE
III—COMPREHENSIVE 
EMERGENCY PREPAREDNESS 
SYSTEM 
SEC. 301. NATIONAL EMERGENCY PREPAREDNESS. 
(a) IN GENERAL.—The Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5122 et 
seq.) is amended— 
(1) by redesignating title VII as title VIII; 
(2) by redesignating sections 701 through 705 
as sections 801 through 805, respectively; and 
(3) by inserting after title VI the following: 
‘‘TITLE
VII—COMPREHENSIVE 
EMERGENCY PREPAREDNESS 
SYSTEM 
‘‘SEC. 701. DEFINITIONS. 
‘‘In this title, the definitions contained in section 602 
and the following definitions apply: 
‘‘(1) CAPABILITY.—The term ‘capability’ means 
the ability to provide the means to accomplish one 
or more tasks under specific conditions and to spe-
cific performance standards. A capability may be de-
livered with any combination of properly planned, or-
ganized, equipped, trained, and exercised personnel 
that achieves the intended outcome. 
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‘‘(2)
COVERED
GRANT.—The
term
‘covered 
grant’ means a grant referred to in section 708 and 
any other emergency preparedness grant adminis-
tered by the Federal Emergency Management Agen-
cy. 
‘‘(3) MISSION ASSIGNMENT.—The term ‘mission 
assignment’ means a work order issued to a Federal 
agency by the Federal Emergency Management 
Agency, directing completion by that agency of a 
specified task and setting forth funding, other mana-
gerial controls, and guidance. 
‘‘(4)
OPERATIONAL
READINESS.—The
term 
‘operational readiness’ means the capability of an or-
ganization, an asset, a system, or equipment to per-
form the missions or functions for which it is orga-
nized or designed. 
‘‘(5) PERFORMANCE MEASURE.—The term ‘per-
formance measure’ means a quantitative or quali-
tative characteristic used to gauge the results of an 
outcome compared to its intended purpose. 
‘‘(6) PERFORMANCE METRIC.—The term ‘per-
formance metric’ means a particular value or char-
acteristic used to measure the outcome that is gen-
erally expressed in terms of a baseline and a target. 
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‘‘SEC. 702. NATIONAL EMERGENCY PREPAREDNESS GOAL. 
‘‘(a)
ESTABLISHMENT.—The
President,
acting 
through the Director, shall establish and revise as nec-
essary a national emergency preparedness goal that de-
fines the target level of emergency preparedness to ensure 
the Nation’s ability to respond to, recover from, and miti-
gate against all hazards, including major disasters and 
other emergencies. 
‘‘(b) NATIONAL INCIDENT MANAGEMENT SYSTEM 
AND NATIONAL RESPONSE PLAN.—The national emer-
gency preparedness goal, to the greatest extent prac-
ticable, shall be consistent with the national incident man-
agement system and national response plan. 
‘‘SEC.
703.
ESTABLISHMENT
OF
THE
NATIONAL
EMER-
GENCY PREPAREDNESS SYSTEM. 
‘‘(a)
ESTABLISHMENT.—The
President,
acting 
through the Director, shall establish a national emergency 
preparedness system to enable the Nation to meet the na-
tional emergency preparedness goal. 
‘‘(b) COMPONENTS.—The national emergency pre-
paredness system includes the following components: 
‘‘(1) NATIONAL PLANNING SCENARIOS.— 
‘‘(A) IN GENERAL.—The Director, in co-
ordination with the heads of other appropriate 
Federal agencies and the Task Force estab-
lished under section 707(a), may develop plan-
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ning scenarios to reflect the relative risk re-
quirements presented by all hazards in order to 
provide the foundation for the flexible and 
adaptive development of target capabilities and 
the identification of target capability levels to 
meet the national emergency preparedness goal. 
‘‘(B) DEVELOPMENT.—In developing na-
tional planning scenarios, the Director shall en-
sure that the scenarios— 
‘‘(i) reflect the relative risk of all haz-
ards and illustrate the potential scope, 
magnitude, and complexity of a broad 
range of representative hazards; and 
‘‘(ii) provide the minimum number of 
representative scenarios necessary to iden-
tify and define the tasks and target capa-
bilities required to respond to all hazards. 
‘‘(2) TARGET CAPABILITIES AND EMERGENCY 
PREPAREDNESS PRIORITIES.— 
‘‘(A) ESTABLISHMENT OF GUIDELINES ON 
TARGET
CAPABILITIES.—Not later than 180 
days after the date of enactment of the Restor-
ing Emergency Services to Protect Our Nation 
From Disasters Act of 2006, the Director, in 
coordination with the heads of other appro-
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priate Federal agencies, including the National 
Council on Disability, and the Task Force es-
tablished under section 707(a), shall update 
and revise as necessary guidelines to define the 
risk-based target capabilities for Federal, State, 
and local government emergency preparedness 
that enables the Nation to respond to, recover 
from, and mitigate against all hazards, includ-
ing major disasters and other emergencies. 
‘‘(B)
DISTRIBUTION
OF
GUIDELINES.— 
The Director shall ensure that the guidelines 
are provided promptly to Congress and the 
States. The States are encouraged to make the 
guidelines available to local governments within 
their jurisdictions. 
‘‘(C) OBJECTIVES.—The Director shall en-
sure that the guidelines established under sub-
paragraph (A) meet the following objectives: 
‘‘(i)
SPECIFICITY.—The
guidelines 
specifically describe the training, planning, 
personnel, and equipment that Federal, 
State, and local governments need to pos-
sess, or to which they need to have access, 
in order to meet the national emergency 
preparedness goal. 
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‘‘(ii)
FLEXIBILITY.—The
guidelines 
are sufficiently flexible to allow Federal, 
State, and local government officials to set 
priorities based on particular needs, while 
achieving nationally determined emergency 
preparedness levels within a specified time 
period. 
‘‘(iii)
MEASURABILITY.—The
guide-
lines are designed to enable measurement 
of progress toward specific emergency pre-
paredness levels. 
‘‘(D) EMERGENCY PREPAREDNESS PRIOR-
ITIES.—In establishing the guidelines under 
subparagraph (A), the Director shall establish 
emergency preparedness priorities that appro-
priately balance the risk of all hazards, includ-
ing major disasters and other emergencies with 
the resources required to respond to, recover 
from, and mitigate against them. 
‘‘(E)
MUTUAL
AID
AGREEMENTS.—The 
Director may provide support for the develop-
ment of mutual aid agreements within States. 
‘‘(3) EQUIPMENT.— 
‘‘(A) EQUIPMENT STANDARDS.— 
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‘‘(i) IN GENERAL.—The Director, in 
coordination with the heads of other appro-
priate
Federal
agencies
and
the
Task 
Force established under section 707(a), 
shall develop, promulgate, and update as 
necessary
national
voluntary
consensus 
standards for first responder equipment 
for use in the field. In developing such 
standards, the Director shall— 
‘‘(I) ensure that the standards 
encourage
and
support
nationwide 
interoperability
and
operability
of 
equipment and other capabilities con-
sistent with the national emergency 
preparedness goal, including the safe-
ty and health of first responders; 
‘‘(II)
to
the
maximum
extent 
practicable, ensure that the standards 
are consistent with any existing vol-
untary consensus standards; 
‘‘(III) to the maximum extent 
practicable, ensure that the standards 
use technologies already certified by 
other Federal agencies of the United 
States; 
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‘‘(IV) take into account, as ap-
propriate, threats that may not have 
been contemplated when such existing 
standards were developed; and 
‘‘(V) focus on maximizing inter-
operability,
operability,
interchange-
ability,
durability,
flexibility,
effi-
ciency, efficacy, portability, sustain-
ability, and safety of equipment. 
‘‘(ii) DEADLINE.—Not later than 180 
days after the date of enactment of the Re-
storing Emergency Services to Protect Our 
Nation From Disasters Act of 2006, the 
Director shall promulgate standards under 
this subparagraph. 
‘‘(B)
CONSULTATION
WITH
STANDARDS 
ORGANIZATIONS.—Before issuing standards, the 
Director shall also consult with relevant public 
and private sector standards organizations. 
‘‘(4) TRAINING AND EXERCISES.— 
‘‘(A) PROGRAM.—Not later than 180 days 
after the date of enactment of the Restoring 
Emergency Services to Protect Our Nation 
From Disasters Act of 2006, the Director, in 
coordination with the heads of other appro-
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priate Federal agencies, including the National 
Council on Disability, and the Task Force es-
tablished under section 707(a), shall establish 
and maintain a comprehensive training program 
for all levels of government to implement the 
national emergency preparedness goal, national 
incident management system, and national re-
sponse plan. 
‘‘(B) TRAINING STANDARDS.—The Direc-
tor shall develop and update as necessary, na-
tional voluntary consensus standards for the 
training program established under subpara-
graph (A). 
‘‘(C) EXERCISES.—The Director, in coordi-
nation with the heads of other appropriate Fed-
eral agencies and the Task Force established 
under section 707(a), shall establish and main-
tain a program, including risk-based scenarios 
that stress the emergency management system, 
to conduct emergency preparedness-related ex-
ercises that reinforce identified training stand-
ards, provide for evaluation of emergency pre-
paredness, and support the national emergency 
preparedness goal, national incident manage-
ment system, and national response plan. 
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‘‘(5) COMPREHENSIVE ASSESSMENT SYSTEM.— 
‘‘(A) ESTABLISHMENT.—The Director, in 
coordination with the National Council on Dis-
ability and the Task Force established under 
section 707(a), shall establish a comprehensive 
system to assess on an ongoing basis, the Na-
tion’s overall emergency preparedness, including 
operational readiness. 
‘‘(B) PERFORMANCE METRICS AND MEAS-
URES.—The Director shall ensure that each 
component of the national emergency prepared-
ness system, national incident management sys-
tem, and national response plan is developed 
with
clear
and
quantifiable
performance 
metrics, measures, and outcomes. 
‘‘(C) CONTENTS.—The assessment system 
established under subparagraph (A) shall as-
sess— 
‘‘(i)
compliance
with
the
national 
emergency preparedness system, national 
incident management system, and national 
response plan to achieve a consistent ap-
proach to national emergency preparedness 
and response; 
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‘‘(ii) capability levels at the time of 
assessment against target capability levels 
defined pursuant to the guidelines estab-
lished under paragraph (2)(A); 
‘‘(iii) resource needs to meet the de-
sired target capability levels defined pursu-
ant to the guidelines established under 
paragraph (2)(A); and 
‘‘(iv) performance of training, exer-
cises, and operations. 
‘‘(6)
BEST
PRACTICES,
AFTER
ACTION
RE-
VIEWS, AND REMEDIAL ACTION PROGRAM.— 
‘‘(A) IN GENERAL.—The Director, in co-
ordination with the National Council on Dis-
ability and the Task Force established under 
section 707(a), shall establish a system for 
identifying best practices and conducting after 
action reviews of incidents and exercises. 
‘‘(B) REMEDIAL
ACTION.—The Director, 
in coordination with the National Council on 
Disability and the Task Force established under 
section 707(a), shall ensure through a remedial 
action program that the best practices and after 
action reviews identified under subparagraph 
(A) are used to revise and update the national 
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emergency preparedness system, national inci-
dent management system, and national re-
sponse plan on a continual basis. 
‘‘(7) FEDERAL RESPONSE CAPABILITY INVEN-
TORY.— 
‘‘(A) IN
GENERAL.—Not later than 180 
days after the date of enactment of the Restor-
ing Emergency Services to Protect Our Nation 
From Disasters Act of 2006, the Director, in 
coordination with the heads of other appro-
priate Federal agencies, shall develop and main-
tain a Federal response capability inventory 
that includes the performance parameters of 
the capability, the timeframe within which the 
capability can be brought to bear on an inci-
dent, and the readiness of such capability to re-
spond to all hazards, including major disasters 
and other emergencies. 
‘‘(B)
DEPARTMENT
OF
DEFENSE.—The 
Director, in coordination with the Secretary of 
Defense, shall develop a list of organizations 
and functions within the Department of De-
fense that may be used, pursuant to the author-
ity provided under sections 402, 403, and 502 
of this Act, to provide support to civil authori-
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ties during major disasters and other emer-
gencies. 
‘‘(8) REPORTING REQUIREMENTS.— 
‘‘(A) FEDERAL
EMERGENCY
PREPARED-
NESS REPORT.— 
‘‘(i) IN GENERAL.—Not later than 12 
months after the date of enactment of the 
Restoring Emergency Services to Protect 
Our Nation From Disasters Act of 2006, 
and annually thereafter, the Director, in 
coordination with the heads of other appro-
priate Federal agencies, shall submit to the 
Committee on Transportation and Infra-
structure of the House of Representatives 
and the Committee on Homeland Security 
and Governmental Affairs of the Senate a 
report on the Nation’s level of emergency 
preparedness. 
‘‘(ii) CONTENTS.—Each report shall 
include— 
‘‘(I) an assessment of how Fed-
eral emergency preparedness assist-
ance supports the national emergency 
preparedness system; 
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‘‘(II) an assessment of compli-
ance with the national emergency pre-
paredness system, national incident 
management system, and national re-
sponse plan; 
‘‘(III) an assessment of current 
Federal and State capability levels 
and a description of target capability 
levels defined pursuant to the guide-
lines
established
under
paragraph 
(2)(A); 
‘‘(IV) an assessment of perform-
ance of training, exercises, and oper-
ations; 
‘‘(V) information on the use of 
mutual aid agreements; 
‘‘(VI) a review of the inventory 
described in paragraph (7)(A); and 
‘‘(VII) an assessment of resource 
needs to meet target capability levels 
defined pursuant to the guidelines es-
tablished under paragraph (2)(A), in-
cluding— 
‘‘(aa)
an
estimate
of
the 
amount of Federal, State, and 
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local expenditures required to at-
tain the target capability levels; 
and 
‘‘(bb) the extent to which 
target capability levels were cre-
ated or enhanced as the result of 
using covered grant funds during 
the preceding fiscal year. 
‘‘(B) STATE EMERGENCY PREPAREDNESS 
REPORT.— 
‘‘(i) IN GENERAL.—Not later than 15 
months after the date of enactment of the 
Restoring Emergency Services to Protect 
Our Nation From Disasters Act of 2006, 
and annually thereafter, a State receiving 
a covered grant shall submit a report to 
the Director on the State’s level of emer-
gency preparedness. 
‘‘(ii) CONTENTS.—Each report shall 
include— 
‘‘(I) an assessment of State com-
pliance with the national emergency 
preparedness system, national incident 
management system, and national re-
sponse plan; 
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‘‘(II) an assessment of current 
capability levels and a description of 
target capability levels; 
‘‘(III) an assessment of State 
performance
of
training,
exercises, 
and operations; 
‘‘(IV) information on the use of 
mutual aid agreements; 
‘‘(V) information on the distribu-
tion by the State of the guidelines es-
tablished by paragraph (2)(A) to local 
governments within its jurisdiction; 
and 
‘‘(VI) an assessment of resource 
needs to meet target capability levels 
defined pursuant to the guidelines es-
tablished under paragraph (2)(A), in-
cluding— 
‘‘(aa)
an
estimate
of
the 
amount of expenditures required 
to attain the target capability lev-
els; and 
‘‘(bb) the extent to which 
target capability levels were cre-
ated or enhanced as the result of 
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