National Flood Policy—ASFPM 2015 Recommendations Q. Partnerships & Incentives Recommendation Explanation/rationale Q.2. Congress should amend the Disaster Relief Act to apportion costs, responsibilities, and roles among federal, state, local governments, and the public commensurate with risk (for example, a sliding cost share could be used as an incentive for state and local governments; to reward them for actions that reduce flood risk). The same type of incentive could be provided in the flood insurance policy for actions by property owners that reduce flood risk and claims to their building. Also see R.1– 13; S1–15; T.1–12 [Congress] Q.4. Make receipt of any federal disaster assistance from flooding (public or private) contingent upon taking appropriate mitigation measures and the purchase of flood insurance, regardless of flood zone. [MitFLG—FEMA] Create financial incentives for communities, such as: basing all federal flood-related assistance to states and localities on a sliding cost-share: the more mitigation, the smaller the non-federal share; nonstructural measures and those that retain/enhance natural systems should always get a larger federal share. A set formula, based on savings to the federal taxpayer would be established so state and local governments can calculate their return on investment. Move to Dis mgt Sect O Continually using federal taxpayer monies to pay again and again for damages to the same building of infrastructure without requiring flood insurance or cost effective mitigation to break the cycle is not good public policy Q.5. Make Public Assistance (PA) grant eligibility contingent on NFIP participation and compliance HMA eligibility is contingent on NFIP and on maintaining flood insurance or proof of participation. state or community self-insurance [FEMA/Congress] PA is not Q.7. Amend existing law so that communities would be allowed to bank mitigation expenditures as non-federal share of next disaster [Congress] The mitigation measures would have to meet existing BCA and other requirements Q.8. Make all flood related mitigation funding from any federal agency (including levee and dam funds) contingent on having a local comprehensive flood mitigation plan that will lead to community resilience/sustainability. [MitFLG; Congress] The first important step in reducing risk a community must do is to identify and assess its risk. Once that is done, actions post or predisaster can be addressed without having to deal with the planning in an emergency. Q.9. Support and fund incentives for sustainable uses of floodprone agricultural lands-[USDA/EPA] Q.10. Explore the impacts of modifying how flood losses are covered in the Multiple Peril Crop insurance to incentivize appropriate and sustainable ag and land uses within floodplain lands and to minimize the chance that farmed These can range from sustainable crops to permanent floodplain easements. There is a delicate balance between avoiding residential and commercial development in floodplains and allowing suitable and sustainable agricultural use of flood prone lands while ensuring the continued use of flood prone lands NFPPR policy rec and explanations Page 1 of 3 Section Q—partners-incentives draft 11-20-14 National Flood Policy—ASFPM 2015 Recommendations floodplain land is not converted to residential/commercial development. Continue to tie all such taxpayer support to producer conservation compliance as well as compliance with all applicable federal and state regulations. [USDA] to provide natural functions that reduce flood losses and provide multiple ecosystem benefits. Q.13. Modify EMAC (Emergency Mgt Assistance Compact) to ensure mutual aid is available for hard hit communities to obtain assistance for substantial damage and rebuilding permit assistance. [Congress; FEMA] EMAC covers response but does not cover critical mutual aid assistance for communities to make substantial damage assessments or issue permits for hundreds or thousands of building in the post disaster and immediate recovery stage. Q.14. Delegate (with monitoring) to qualified states the administration of flood mapping, HMGP, FMA, CAP, and environmental reviews for mitigation projects Also see H [FEMA] This is necessary to eliminate duplication of effort and to provide knowledgeable localized expertise that will streamline and speed up mapping, mitigation and assistance to communities. Q.15. Explore use of true delegation model to move responsibility for NFIP activities to qualified states (mapping, monitoring communities for compliance, technical assistance, training, etc.) Move to S or not? Q.16. Make CAP funding contingent upon the state’s provision of one fully funded professional full-time position in floodplain management—who should be a CFM (Certified Floodplain Manager) [FEMA] Other agencies, such as EPA and DOT fully delegate programs to qualified states; then the federal agency monitors and evaluates the work by the state to determine if the delegation should continue. Exceptions could be made only if the state can demonstrate it is spending and equivalent or greater amount of funding for state staff on other actions that FEMA agrees reduce flood risk Q. 17. Encourage market-driven private-sector incentives for mitigation [MitFLG; Congress] This can be done with building codes recognized by private insurance carriers or other means R. 20. Provide incentives (CRS, disaster relief and other grants) for all state and local FP managers to be CFMs. [FEMA; USACE;NOAA; HUD] Agree is this should move here, not R Q. 19. Federal agencies should encourage/incentivize integration of certification programs for the International Codes and for floodplain management (CFM) {FEMA; HSS] Local floodplain managers had limited training and status prior to the Certified Floodplain Manager program. Having that trained program at the local level helps communities make better flood risk decisions to support community resilience Too often local building officials and the permit officials who issue floodplain permits are stove piped at the state and local level, whereas close collaboration saves money and time. Q. 20. Deny subsidized assistance for public infrastructure that would encourage development in currently undeveloped flood risk areas [MitFLGUSACE; OMB; FEMA] Current guidance for USACE projects, such as levees supposedly have this condition, although there have been projects that violate those provisions. NFPPR policy rec and explanations Page 2 of 3 Section Q—partners-incentives draft 11-20-14 National Flood Policy—ASFPM 2015 Recommendations R. 22. Create incentives in federal programs (CRS, disaster relief, grants, etc) to States that develop and enact sufficient enabling authority for regions and communities to develop stormwater utilities or similar mechanisms that can provide tools, assistance and resources for an array of flood risk management and loss reduction actions. [MitFLG; Administration; FEMA: USACE; EPA;] Too many states recreate the federal stove pipes for programs dealing with water quantity and water quality, and that is a barrier to effective management of both. The federal government cannot dictate this, but can provide incentives or make it a condition of grants, etc. Q. 22.Reform the casualty loss deduction to better target the deduction as well as incentivize mitigation. For example, limits could be set as to the number of times a person could claim the deduction without first mitigating as well as a means tested system to target claimants who truly need assistance. [Congress] The casualty loss deduction for flooding costs taxpayers lots of money(add $), with much of it going to higher income property owners in very high value building in high risk areas such as coastal areas. The concept here is to remove incentives for people to build in these high risk areas where they can externalize their cost to the taxpayers. The concept is to provide a means where a property owner can save for or get a tax credit for actions that mitigate their hazard risk. As flood insurance rates move toward full risk rates, property owners can easily determine their return on investment for such actions. If a community or state provides mitigation funding that meets the federal BCA standards to reduce future taxpayer costs that grant funding should be exempt from federal taxes. Q. 23. Develop a hazard mitigation tax credit much like energy efficiency tax credits that are given to property owners. Additionally or alternatively, allow for tax advantaged disaster savings accounts [Congress] Q. 24. Provide specific IRS guidance more broadly exempting cost effective mitigation assistance and funding from federal taxes. Currently only FEMA mitigation programs have a specific tax exemption in federal law. [Congress] NFPPR policy rec and explanations Agree to put here, not R Page 3 of 3 Section Q—partners-incentives draft 11-20-14