A bill to authorize the construction and maintenance of levees on property acquired under hazard mitigation grant programs of the Federal Emergency Management Agency.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``FEMA Common Sense and Cost 
Effectiveness Act of 2011''.

SEC. 2. CONSTRUCTION AND MAINTENANCE OF LEVEES.

    (a) Stafford Act.--
            (1) Predisaster mitigation program.--Section 203(e) of the 
        Robert T. Stafford Disaster Relief and Emergency Assistance Act 
        (42 U.S.C. 5133(e)) is amended by adding at the end the 
        following:
            ``(3) Construction of levees on acquired lands.--Subject to 
        paragraph (4), and notwithstanding any requirement that 
        property acquired or accepted under this section be dedicated 
        and maintained in perpetuity as open space for the conservation 
        of natural flood plain functions, if financial assistance 
        provided under this section is used to acquire or accept 
        property for open space purposes, the President may permit the 
        construction or maintenance on the property of--
                    ``(A) a levee that is federally owned and operated;
                    ``(B) a permanent levee that is federally 
                constructed and non-federally operated and maintained;
                    ``(C) a levee--
                            ``(i) that is federally constructed as a 
                        nonpermanent levee;
                            ``(ii) that a non-Federal entity desires to 
                        operate and maintain as a permanent levee; and
                            ``(iii) the owners of which--
                                    ``(I) are participating in the 
                                emergency response to natural disasters 
                                program established under section 5 of 
                                the Act entitled `An Act authorizing 
                                the construction of certain public 
                                works on rivers and harbors for flood 
                                control, and for other purposes', 
                                approved August 18, 1941 (33 U.S.C. 
                                701n); or
                                    ``(II) begin participating in the 
                                program described in subclause (I) 
                                within a reasonable period of time, as 
                                determined by the President, after the 
                                date on which the levee is constructed; 
                                and
                    ``(D) a non-Federal levee the owners of which are 
                participating in the program described in subparagraph 
                (C)(iii)(I).
            ``(4) Downstream communities.--The President may deny an 
        application to construct or maintain a levee described in 
        paragraph (3) if the levee poses a significant threat of harm 
        to downstream communities.''.
            (2) Hazard mitigation grant program.--Section 404(b) of the 
        Robert T. Stafford Disaster Relief and Emergency Assistance Act 
        (42 U.S.C. 5170c(b)) is amended--
                    (A) in paragraph (2)(B)--
                            (i) in clause (i), by inserting ``except 
                        for the construction or maintenance of a 
                        structure described in clause (ii) (including a 
                        levee),'' before ``any property''; and
                            (ii) in clause (ii)--
                                    (I) in subclause (II), by striking 
                                ``or'' at the end;
                                    (II) by redesignating subclause 
                                (III) as subclause (IV); and
                            (iii) by inserting after subclause (II) the 
                        following:
                                    ``(III) subject to paragraph (5), a 
                                levee described in paragraph (4); or''; 
                                and
                    (B) by adding at the end the following:
            ``(4) Levees.--A levee described in this paragraph is--
                    ``(A) a levee that is federally owned and operated;
                    ``(B) a permanent levee that is federally 
                constructed and non-federally operated and maintained;
                    ``(C) a levee--
                            ``(i) that is federally constructed as a 
                        nonpermanent levee;
                            ``(ii) that a non-Federal entity desires to 
                        operate and maintain as a permanent levee; and
                            ``(iii) the owners of which--
                                    ``(I) are participating in the 
                                emergency response to natural disasters 
                                program established under section 5 of 
                                the Act entitled `An Act authorizing 
                                the construction of certain public 
                                works on rivers and harbors for flood 
                                control, and for other purposes', 
                                approved August 18, 1941 (33 U.S.C. 
                                701n); or
                                    ``(II) begin participating in the 
                                program described in subclause (I) 
                                within a reasonable period of time, as 
                                determined by the President, after the 
                                date on which the levee is constructed; 
                                and
                    ``(D) a non-Federal levee the owners of which are 
                participating in the program described in subparagraph 
                (C)(iii)(I).
            ``(5) Downstream communities.--The President may deny an 
        application to construct or maintain a levee described in 
        paragraph (4) if the levee poses a significant threat of harm 
        to downstream communities.''.
    (b) Construction of Levees Under Hazard Mitigation Programs 
Relating to Floods.--
            (1) Flood mitigation assistance.--Section 1366 of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is 
        amended by adding at the end the following:
    ``(n) Construction of Levees on Acquired Lands.--
            ``(1) In general.--Subject to paragraph (2), and 
        notwithstanding any requirement that property acquired or 
        accepted under this section be dedicated and maintained in 
        perpetuity as open space for the conservation of natural flood 
        plain functions, if the mitigation activities funded under 
        subsection (a) include the acquisition or acceptance of 
        property for open space purposes, the Administrator may permit 
        the construction or maintenance on the property of--
                    ``(A) a levee that is federally owned and operated;
                    ``(B) a permanent levee that is federally 
                constructed and non-federally operated and maintained;
                    ``(C) a levee--
                            ``(i) that is federally constructed as a 
                        nonpermanent levee;
                            ``(ii) that a non-Federal entity desires to 
                        operate and maintain as a permanent levee; and
                            ``(iii) the owners of which--
                                    ``(I) are participating in the 
                                emergency response to natural disasters 
                                program established under section 5 of 
                                the Act entitled `An Act authorizing 
                                the construction of certain public 
                                works on rivers and harbors for flood 
                                control, and for other purposes', 
                                approved August 18, 1941 (33 U.S.C. 
                                701n); or
                                    ``(II) begin participating in the 
                                program described in subclause (I) 
                                within a reasonable period of time, as 
                                determined by the Administrator, after 
                                the date on which the levee is 
                                constructed; and
                    ``(D) a non-Federal levee the owners of which are 
                participating in the program described in subparagraph 
                (C)(iii)(I).
            ``(2) Downstream communities.--The Administrator may deny 
        an application to construct or maintain a levee described in 
        paragraph (1) if the levee poses a significant threat of harm 
        to downstream communities.''.
            (2) Grants for repetitive insurance claim properties.--
        Section 1323 of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4030) is amended by adding at the end the following:
    ``(c) Construction of Levees on Acquired Lands.--
            ``(1) In general.--Subject to paragraph (2), and 
        notwithstanding any requirement that property acquired or 
        accepted under this section be dedicated and maintained in 
        perpetuity as open space for the conservation of natural flood 
        plain functions, if the mitigation activities funded under 
        subsection (a) include the acquisition or acceptance of 
        property for open space purposes, the Administrator may permit 
        the construction or maintenance on the property of--
                    ``(A) a levee that is federally owned and operated;
                    ``(B) a permanent levee that is federally 
                constructed and non-federally operated and maintained;
                    ``(C) a levee--
                            ``(i) that is federally constructed as a 
                        nonpermanent levee;
                            ``(ii) that a non-Federal entity desires to 
                        operate and maintain as a permanent levee; and
                            ``(iii) the owners of which--
                                    ``(I) are participating in the 
                                emergency response to natural disasters 
                                program established under section 5 of 
                                the Act entitled `An Act authorizing 
                                the construction of certain public 
                                works on rivers and harbors for flood 
                                control, and for other purposes', 
                                approved August 18, 1941 (33 U.S.C. 
                                701n); or
                                    ``(II) begin participating in the 
                                program described in subclause (I) 
                                within a reasonable period of time, as 
                                determined by the Administrator, after 
                                the date on which the levee is 
                                constructed; and
                    ``(D) a non-Federal levee the owners of which are 
                participating in the program described in subparagraph 
                (C)(iii)(I).
            ``(2) Downstream communities.--The Administrator may deny 
        an application to construct or maintain a levee described in 
        paragraph (1) if the levee poses a significant threat of harm 
        to downstream communities.''.
            (3) Severe repetitive loss program.--Section 1361A(g) of 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4102a(g)) 
        is amended--
                    (A) in paragraph (1), by striking the period at the 
                end and inserting the following: ``, including that, 
                subject to paragraph (5), and notwithstanding any 
                requirement that property acquired or accepted under 
                this section be dedicated and maintained in perpetuity 
                as open space for the conservation of natural flood 
                plain functions, the Administrator may permit the 
                construction or maintenance on such property of--
                    ``(A) a levee that is federally owned and operated;
                    ``(B) a permanent levee that is federally 
                constructed and non-federally operated and maintained;
                    ``(C) a levee--
                            ``(i) that is federally constructed as a 
                        nonpermanent levee;
                            ``(ii) that a non-Federal entity desires to 
                        operate and maintain as a permanent levee; and
                            ``(iii) the owners of which--
                                    ``(I) are participating in the 
                                emergency response to natural disasters 
                                program established under section 5 of 
                                the Act entitled `An Act authorizing 
                                the construction of certain public 
                                works on rivers and harbors for flood 
                                control, and for other purposes', 
                                approved August 18, 1941 (33 U.S.C. 
                                701n); or
                                    ``(II) begin participating in the 
                                program described in subclause (I) 
                                within a reasonable period of time, as 
                                determined by the Administrator, after 
                                the date on which the levee is 
                                constructed; and
                    ``(D) a non-Federal levee the owners of which are 
                participating in the program described in subparagraph 
                (C)(iii)(I).''; and
                    (B) by adding at the end the following:
            ``(5) Downstream communities.--The Administrator may deny 
        an application to construct or maintain a levee described in 
        paragraph (1) if the levee poses a significant threat of harm 
        to downstream communities.''.
    (c) Applicability of Amendments.--The amendments made by this 
section shall apply to all property acquired or accepted pursuant to 
section 203 or 404 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5133 and 5170c) or section 1323, 
1366, or 1361A of the National Flood Insurance Act of 1968 (42 U.S.C. 
4030, 4104c, and 4102a) before, on, or after the date of enactment of 
this Act.

Summary: FEMA Common Sense and Cost Effectiveness Act of 2011 - Amends the Robert T. Stafford Disaster Relief and Emergency Assistance Act and the National Flood Insurance Act of 1968 to authorize the construction and maintenance of levees on property acquired under the Federal Emergency Management Agency's (FEMA's) hazard mitigation grant programs, including: (1) a levee that is federally owned and operated; (2) a permanent levee that is federally constructed and nonfederally operated and maintained; (3) a levee that is federally constructed as a nonpermanent levee, that a nonfederal entity desires to operate and maintain as a permanent levee, and the owners of which are participating in, or, in a specified period after the date on which the levee is constructed, will begin participating in, the emergency response to natural disasters program; and (4) a nonfederal levee the owners of which are participating in the program.

Authorizes an application to construct or maintain a levee on acquired lands to be denied if the levee poses a significant threat of harm to downstream communities.