[ FEMA Home | FEMA Feedback | FEMA Library | FEMA Privacy Policy | FEMA Search | FEMA Site Help | FEMA Site Index ]

INTRODUCTION

• I would like to thank Bill West and Dean Robbins for inviting me to join you today.
• Being here on South Padre Island, with its wide ocean and rich shore life, brings back memories of summers long ago.
• It reminds me how beautiful and varied a place Texas is -- from Big Bend to the Big Thicket and the Red to the Rio Grande.
• As a "temporarily displaced" Texan, it gives me a dose of the beauty and hospitality that Texans are known for.

FAGAN BOOK

• Being in "the water business" – whether we are trying to conserve it or prepare for too much of it -- we share a common interest in helping our citizens prepare for periods of drought and flood.
• And they are inevitable. As Brian Fagan points out is his new book, "Floods, Famines and Emperors", anomalies in the climate have been disrupting weather patterns throughout history, and taking their toll on civilizations.
• The book was given to me when I spoke at a recent River Authority meeting in San Marcos. I would recommend it to all in this field, as it puts what we do in a larger historical context.
• Fagan plots major climatic events against historical events and finds that those cultures that learn to adapt successfully are sustained. He shows that climate shifts have been a major -- and hitherto unrecognized – force in history, claiming, for example, that El Nino-driven weather patterns have brought on the collapse of dynasties in Egypt; caused historic famines in India; and destroyed whole civilizations in Peru.

TEXAS FLOODING

• We here in Texas know that, while water may be an essential part of our planet’s biosphere, it is possible to have too much of a good thing!
• Texas is one of the highest risk states for flooding:

  -- In the last 10 years, there have been 19 Presidentially-declared disasters for weather events, costing FEMA almost $480 million.
  -- The three flooding events of last fall alone – Tropical Storms Charlie and Francis and the October/November Floods – destroyed or damaged almost 23,000 homes.
  -- These storms resulted in the provision of over $168 million in disaster relief. The State of Texas and local jurisdictions also spent substantial sums for emergency response and repair.
  -- As could see from the news photos from Del Rio – where there was little insurance coverage -- the families of too many flood victims were torn apart because they lost:

  -- a loved one;
  -- their home and personal possessions, some of which can never be replaced;
  -- or their life’s hopes and dreams.

  -- Unfortunately, these events will continue to occur in Texas and elsewhere, with ever-mounting losses, for:

  -- scientists expect more dramatic meteorological events, and
  -- the population boom here in Texas, especially in Coastal areas, exposes more people and property to the hazards.

• These periods of shortage and excess come and go. We have little control over that. But we do have some control over how we prepare for and respond to them.

MAJOR SHIFT IN EMERGENCY PREPAREDNESS AND FLOODPLAIN MANAGEMENT

• We are now celebrating the 30^th Anniversary of the National Flood Insurance Program. It has been a time to look back at what we have learned, how the field of emergency management has changed, and look forward to the millennium.
• I am fortunate to serve as Federal Insurance Administrator with James Lee Witt at the helm of FEMA. Under his leadership, the Agency has changed from what was once referred to as a "patient in triage" to, in the words of the Vice President, "a model of effectiveness in serving the American people".
• It is truly an exciting time – for there has been a "sea change" in how we are looking at flooding and other natural hazards.
• There is a growing concern about the cost of natural disasters and what can be done about it. A National Science Foundation-funded study recently estimated total dollar losses from natural hazards during the past two decades to be $500 billion – over 80% of which resulted from climatic events.
• Although this includes all natural hazards, whether they rise to the level of a "disaster", it is a staggering figure!
• The U.S. Army Corps of Engineers estimates that floods cost the nation an average of $5.1 billion in damage each year.
• There is a growing consensus that:

  -- Rather than simply picking up the pieces after disasters, we can adopt policies to prevent – or "mitigate" – damage beforehand.
  -- And that mitigating damage from natural disasters can goes hand in hand with wise management of our natural resources and economic and social resiliency. This is the concept of "sustainable hazard mitigation".
  -- Structural approaches to flood control, so prevalent in the past, building dams and levees and channelization, are giving way to non-structural approaches – such as buying out repeatedly flooded homes and returning floodplains to their natural state. These non-structural approaches are now viewed as more effective over the long term.
  -- There is a coming together of interests, and a recognition that we can prevent people from becoming disaster victims and protect our environment at the same time.
  -- It is this resiliency that Brian Fagan found to have protected people throughout history from the vagaries of weather. Successful civilizations were able to adapt to the natural changes.

FEMA’s PROGRAMS

• With that said as context, I would like to highlight 5 major FEMA programs that assist those at risk of, or damaged by, floods.
• Handout provides greater detail.
• The first two are grant programs that contribute to flood mitigation:

  -- The Flood Mitigation Assistant Program, funded by policyholders’ premiums, designed to reduce or eliminate the frequency and severity of NFIP claims.
  -- The Hazard Mitigation Grant Program, which comes into play after a disaster in order to reduce the risk of damage and loss in the NEXT one.

• Together, these programs are the main tools we have to deal with repetitive loss properties – one of the major challenges we face in the Flood Program.
• While the Hazard Mitigation Grant Program may be used for all hazards, the Flood Mitigation Assistance Program is specifically targeted at flooding since it is supported by our policyholder’s premiums and is used to mitigate insurable structures.
• Although the allocation of funds differs, the process of getting funds to the communities is similar:

  -- The State puts a plan in place, establishes funding priorities, and provides technical assistance to applicants
  -- After applications are received by communities, the State selects projects based on the plan and priorities, and submits them to FEMA.
  -- FEMA reviews the proposed projects for eligibility, cost-effectiveness and environmental requirements, and approves them.
  -- FEMA transfers funds to the State for approved projects and oversees their completion.

• These programs are an investment in the future.
• They are our principal vehicles to address repetitive losses – one of the Agency’s top priorities.
• Repetitive loss properties represent a small proportion of our properties – about 80,000 out of 4 million – have accounted for a third of our losses. They drain the Flood Fund of about $200 million per year and increase the need for borrowing.
• The State of Texas has the second highest number of repetitive loss properties in the Nation, with 10% of the total.
• Many Texans experience devastation time and time again. These grant programs give them a way out, voluntarily. They have provided funding for elevation, acquisition, relocation and demolition of 23,000 homes nationwide and 500 here in Texas.
• Our experience has shown that dollars expended save at least $2 in reduce future disaster losses.

THE NATIONAL FLOOD INSURANCE PROGRAM

• The next program, the National Flood Insurance Program, is one of the largest property and casualty insurers in the Nation. In fact, it is the largest single-line insurer, with over 4 million policies in force Nationwide, with over $484 billion in coverage.
• It protects property owners from financial disaster since homeowners’ policies don’t offer flood coverage, and reduces the burden on taxpayers who would otherwise provide disaster assistance to the uninsured flood victim.
• One unique aspect of this Federal program is that it is self-supporting from premium income, not taxpayer dollars.
• It is sold largely through 85 private companies under a partnership arrangement with the government. The Federal Insurance Administration sets the premium rates, but relies on these private companies to sell and service the policies and adjust claims.
• The claims process is similar to other property casualty insurers:

  -- Policyholder reports loss to insurance company or agent.
  -- Claims adjuster is assigned.
  -- Policyholder files a proof of loss.
  -- Claims payments are made directly to policyholders by the insurance company or agent.

• There are about 316,000 policies in force in Texas, with over $38 billion in coverage. This makes Texas the fourth largest State in terms of policies -- behind Florida, California and Louisiana.
• The average cost of a policy here in Texas is about $380.
• More Texans need to protect themselves. Only 1/3 of structures in Special Flood Hazard Areas are insured. And you don’t have to be in a high risk area to need insurance; about 25% of our claims come from low- to moderate- risk areas.
• To make their citizens eligible to purchase the insurance, about 19,000 communities Nation-wide and 976 communities in Texas participate in the program.
• Participating communities agree to adopt and enforce a floodplain management ordinance to regulate new development in flood hazard areas. In exchange, policyholders subsidize insurance on existing buildings, built before flood hazards were known (so-called "Pre-FIRM" buildings). Owners of new buildings, built after FEMA has identified the flood hazards ("post-FIRM"), pay actuarial rates for insurance that fully reflect the risk.
• Through the Community Rating System, premium discounts are available to residents of communities that go beyond these minimum floodplain management requirements.
• The program depends on accurate mapping of flood hazards to support flood hazard determinations and set insurance rates – a continuing challenge!
• Maps must be continually updated to reflect changed conditions and new areas that will be undergoing development.
• The maps are aging – 45% are at least 10 years old, and 70% are 5 years or older.

  -- For example, the tremendous development in Texas within 60 miles of the Gulf Coast and along the Rio Grande Valley as a result of NAFTA, and the subsidence that has occurred in Harris County, are not fully and accurately reflected on the flood maps.
  -- They are not up to date with current in Geographic Information Systems (GIS) technology. 

• FEMA’s has a Map Modernization Initiative will use state-of-the-art digital engineering, mapping, information technology to improve the accuracy and utility of the maps.
• We don’t have enough money to do the job that needs to be done. Current rates of funding support updating only 2 – 3% of the map panels a year.
• To date, the costs of flood mapping have been born by flood policyholders. We are looking for the broader group of users to bear more of the costs in the future.
• We hope to obtain more resources from Congress. While there is broad consensus that something needs to be done about the maps, there is not yet consensus on how to pay for it.
• In the meantime, partnership is key. We are looking to work with community and State organizations to facilitate the conduct of flood studies.

  -- We have recently initiated a major re-study of Harris County watersheds, using the latest in sensing technology (LIDAR), surveying technology (GPS), and computer software (GIS).
  -- FEMA is also working closely with the North Central Texas Council of Governments on a major initiative called "The Common Vision" to revise the maps for Denton, Dallas and Terrence Counties.

• Sustainable hazard mitigation will never eliminate the need for assistance to help those devastated by disaster.
• Two major assistance programs in Presidentially-declared disasters are Individual Assistance and Public Assistance.
• Funds for these two assistance programs are appropriated into the Disaster Relief Fund.
• Individual assistance is a collection of assistance provided by FEMA, other Federal agencies and private groups under FEMA’s overall coordination. It includes:

  -- temporary housing
  -- low interest loans (through the Small Business Administration and U.S. Dept. of Agriculture)
  -- Disaster grants averaging $2,500 for those unable to repay loans.

• FEMA takes applications by phone, with a single application used for all types of assistance.

  -- Under FEMA’s temporary housing program, assistance is available for transient accommodations, home repair and mortgage and rental assistance.
  -- After FEMA inspectors verify the loss, temporary housing checks are sent to recipients within 7 –10 business days.

• FEMA submits applications to the Small Business Administration to determine if applicants qualify for home or business loans.

  -- If they do, and the applicant agrees, SBA processes the loan application, prepares a loan agreement, and issues a check.

• If declined for a loan, individuals may qualify for an Individual Family Grant for medical or funeral expenses, transportation, home repair, replacement of personal property, or other serious needs caused by the disaster.
• The average IFG grant is $2,500. IFG checks are sent out by the State, which administers the program.
• We are trying to get people to accept greater responsibility for insuring themselves against loss. The National Flood Insurance Reform Act has given impetus to this by strengthening the "Mandatory Purchase Requirement". It requires recipients of Federal disaster assistance in Special Flood Hazard Areas to purchase and maintain flood insurance in order to qualify for future assistance.
• To assist those who may not be able to afford the insurance, a three-year Group Flood Insurance is purchased on behalf of recipients of Individual and Family Assistance.
• Public Assistance – the final program I will discuss – was redesigned by FEMA last year to improve customer service and expedite assistance.
• It provides for the repair of infrastructure and public facilities and emergency measures to save lives and protect health, safety and property.

  -- [Examples are debris removal, emergency protective measures, and repair of road systems and bridges, water control facilities, public buldings, utilities and parks and recreational facilities.]

• After the Presidential declaration:

  -- applicants submit a request to the State Division of Emergency Management, which administers the program.
  -- A FEMA Public Assistance Coordinator is assigned to manage the case.
  -- Applicants prepare Project Worksheets detailing the work to be done and the cost. These Worksheets are validated by FEMA and/or State officials.
  -- The worksheets are sent to FEMA by the State.
  -- FEMA reviews and approves the Worksheets, and has the FEMA Regional Office in Denton allocate funds to the State.

• The State sub-grants and transfers funds to the applicant, and oversee the project through to completion.

PROJECT IMPACT

• No discussion of FEMA programs would be complete without mentioning Project Impact.
• This initiative is aimed at making the Nation disaster resistant one community at a time.
• At the core of Project Impact are two concepts:

  -- The first is preventing damage by building stronger, safer communities before disaster strikes.
  -- The second is partnership. No community can successfully become disaster resistant without everyone getting involved. Citizens, community organizations, business and industry, all levels of government and the media all are working together to make Harris County and other Project Impact communities safer places to live.

• We now have 118 Project Impact communities and more than 680 corporate and business partners supporting the approach.
• Harris County and the cities of Houston, Bellaire and Webster (with about half of the State’s repetitive loss properties) have recently been designated as a Project Impact community.

BLUE RIBBON PANEL

• As you can see from this discussion, there are three State agencies involved in managing these five FEMA program.
• It is quite a coordination challenge !!

  -- [Water Development Board -- FMA Div. of Emergency Mgmt. – HMGP, IA & PATNRCC - houses the NFIP State Coordinator]

• Good coordination enables us to deal with flood risks in a comprehensive and integrated fashion, and better serve our customers.
• The Legislature recognized this, passing Senate Concurrent Resolution No. 68 calling for a Blue Ribbon Study to:

  -- examine ways to improve coordination in mitigating damage before, and providing damage assistance after, flooding and other natural disasters; and, -- streamlining the provision of disaster assistance, including the use of cost-effective technologies to facilitate service.

• The Resolution calls for involvement in the Study by each of these agencies of State Government, with the LBJ School as a resource.
• We look forward to the results of the Study. It should make a real difference not only here in Texas, but nationwide.

CLOSING REMARKS

• These assistance programs are the principal vehicles by which FEMA helps communities adapt -- to use Brian Fagan’s terminology – to the vagaries of the weather.
• We can’t stop the storm, but we can reduce the risk. Let’s work together to fix it.
• For more specific information on them, you are invited to visit our website at: WWW.FEMA.GOV/NFIP.
• You are also invited to our next annual National Flood Conference in Austin, May 7 – 10, 2000. It will be an opportunity to learn more about the National Flood Insurance Program, as well as have a great time!