Date: 1981-07-31
Speaker: ST GERMAIN (democrat)
Chamber: H

and the distinguished ranking member. Mr. STANTON Of Ohio. have skillfully represented the House in prolonged discussions with the iother body. and I fully support the product of their efforts. I would specifically like to address the provision in the Budget Act pertaining to the national flood Insurance program and undeveloped coastal barriers on the Atlantic and Gulf of Mexico coasts of the United States. As a conferee from the Banking Committee. and a coauthor of this language along with the distinguished chairman. Mr. ST GERMAIN. it Is Important to firmly establish the legislative intent of the sponsors of the provision. My comments have been cleared with the chairman and ranking member and represent our joint Interpretation of the flood insurance provision. Section 1321 of title III. chapter 4 of the Housepassed version of the Omnibus Budget Reconciliation Act of 1981 prohibited the sale of Federal flood insurance for new construction or substantial Improvements of str~xctures 1ocated on undeveloped coastal barriers on the Atlantic and gulf coasts. The Secretary of the Interior was given 90 days to designate the affected areas pursuant to several criteria contained in the statute. and the prohibition of Federal flood insurance would have been effective immediately thereafter. The Senate had no comparable language In their version of the Budget Act. In conference. Members of the House and Senate Banking Committees adopted a compromise which established October 1. 1983. as the effective date of the prohibition on flood Insurance. The Secretary of Interior will have 1 year. rather than 90 days. to designate undeveloped coastal barriers. I believe this is a fair compromise. It establishes a date certain to end Federal involvement and taxpayers subsidies in coastal barrier flood insurance. yet it allows a transition period of 2 years for those who have purchased coastal barrier properties with the expectation of receiving Federal flood Insurance. In the following remarks I set forth a more detail explanation of the provision adopted by the Conferees. Section 1321(a) provides that as of October 1. 1983. there will be a prohibition on the sale of Federal flood insurance for new construction or substantial improvements of structures on undeveloped coastal barriers on the Atlantic and gulf coasts as designated by the Secretary of Interior. The terms new construction and substantial improvements are standard terms defined In regulations Issued by the Federal Insurance Administration (44 CFR 59.1). Prior to October 1. 1983. any structures which may be erected In an area designated as an undeveloped coastal barrier will still be eligible for Federal flood insurance. Section 1321(b) establishes three standards to guide the Secretary in designating undeveloped coastal barriers. Before describing those standards. it is important to note that the Department of the Interior has. for several years. conducted an ongoing Inventory and classification of coastal barriers on the Atlantic and gulf coasts of the United States. In1981. in response to a request from the Congress. the Department developed a list of undeveloped coastal barriers which met criteria indentical to those specified In section 1321(b). It is the intent of the authors of section 1321 that this inventory. which is presently being reviewed by State and local government officials and other Interested parties. will provide the basis for designations by the Secretary. It Is expected. of course. that the Secretary will refine the existing inventory after having reviewed this section. Section 1321(b)(1) the House adopted. and the Senate agreed to. a provision stipulating a definition of the term coastal barrier which only includes true barrier islands. as weli as closely related geologic features such as bay barriers. spits. and tombolos. A coastal barrier is defined as a geologic feature that consists of unconsolidated sedimentary materials. Is subject to wave. tidal. and wind energies. and protects landward aquatic habitats from direct wave attack. Consistent with the Departments ongoing inventory. Including the list developed In 1981. It Is not the Intent of the authors JulyYl. 1981 that this definition Include areas such as the interiors of large embayments such as the Chesapeake Bay. Regarding the determination of which coastal barriers are undeveloped. the House adopted. and the Senate agreed to. section 1321(b)(2) which requires that an undeveloped coastal barrier shall be treated as such only if there are few peoplemade structures on the barrier. or portion of a barrier. at that these structures and human activities on the barrier do not significantly impede geomorphic and ecological processes. In interpreting the first aspect of this standard. the authors Intend that the Department use the same standard which they have used In their ongoing Inventory of coastal barriers. That Is. an area which averages less than one structure per 5 acres should be considered undeveloped. We also expect. and this was noted in the report from the Banking Committee. that the Department will take into account the level of infrastructureroads. water. sewers. electric lines. Jetties. and so forthin place in making this determination. For example. the presence of scattered structures with no associated Infrastructure suggests that an area Is not developed. On the other hand. an area which has a full complement of Infrastructure: that is. some combination of the abovementioned items. but no structures. should be considered as being already developed. Consistent with the Departments ongoing inventory. we expect that in designating undeveloped portions of coastal barriers that such units will be at least onequarter mile in length. The last of the three criteria guiding the Secretarys designations is contained in section 1321(b)(3). This paragraph provides that a coastal barrier which is included within the boundaries of an area established under Federal. State. or local law. or held by a qualified nonprofit organization. primarily for wildlife refuge. sanctuary. recreational. or natural resource conservation purposes shall not be designated as an undeveloped coastal barrier for purposes of denying Federal flood insurance. As is noted in the conference report. our intention Is that a qualified nonprofit organization is one which has the Intent and capability to maintain the natural character of coastal barrier ecosystems. Section 1321(c) codifies an opinion of the General Counsel of the Federal Emergency Management Agency that a federally related lending institution. such as a bank or a savings and loun association. may make loans secured by structures which are not eligible for flood Insurance by reason of subsection (a) of this section. In other words. this provision severs the linkage between Federal flood insurance and the availablity of mortgage money where flood Insurance has been denied on undeveloped coastal barriers. Finally. section 1321(d) requires that the Secretary conduct a study for the purpose of designating undeveloped coastal barriers and. not later than 1 year from the date of enactment. transmit to the Congress a report of the findings and conclusions of such study together with any recommendations regarding the definition of the term coastal barrier as used in this section. Although the Secretary is required to report to the Congress on these matters. the Secretarys designations of undeveloped coastal barriers shall be effective unless altered by act of Congress. Since the prohibition on flood insurance does not take effect until October 1. 1983. it is the Intent of the authors that structures which are erected after an area has been designated as an undeveloped coastal barrierbut before October 1. 1983will be eligible for Federal flood Insurance. Mr. Speaker. this concludes the Interpretation of the authors of the provision in the Budget Act pertaining to flood Insurance on undeveloped coastal barriers. As the coauthor of this provision with my distinguished colleague from Rhode Island. Mr. ST GEmAiN. I am pleased at the compromise which has been agreed to by the conferees and it has my full support.