Senate Commerce, Science & Transportation Committee Issues Report on National Earthquake Hazards Reduction Program Reauthorization Act

WASHINGTON, Sept. 8 -- The Senate Commerce, Science and Transportation Committee issued a report (S.Rpt. 115-336) on legislation (S. 1768) to reauthorize and amend the National Earthquake Hazards Reduction Program. The report was advanced by Sen. John Thune, R-South Dakota, on Sept. 6.

Excerpts of the report follow:

Purpose of the Bill

The purpose of S. 1768, as reported, is to authorize various seismological research and warning systems, including those under the National Earthquake Hazards Reduction Program (NEHRP).

Background and Needs

The NEHRP is a multi-disciplinary and interagency program created under the Earthquake Hazards Reduction Act of 1977 (EHRA)1 which celebrated its 40th anniversary on October 7, 2017. It was created to facilitate private research, planning, decision-making, and mitigation efforts related to seismic activity. Although the NEHRP has received 11 authorizations from Congress, the program has been operating without authorization since fiscal year (FY) 2009,2 which has weakened its effectiveness. For example, stakeholders have noted there has been a drop-off in interagency coordination, and certain agency grants under the program have not been awarded.

1Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7701 et seq.).

2National Earthquake Hazard Reduction Program Reauthorization Act of 2004, P.L. 108-360; 118 Stat. 1668.

The following four agencies contribute to the NEHRP: the National Institute of Standards and Technology (NIST), which is the lead agency and responsible for NEHRP planning and coordination; the Federal Emergency Management Agency (FEMA), which promotes the implementation of research results and best practices as well as earthquake preparedness, response, and public awareness efforts; the National Science Foundation (NSF), which supports seismology and other geological research; and the United States Geological Survey (USGS), which provides earthquake monitoring and notification services in addition to post-earthquake investigations and other research. The enacted NEHRP budgets for these agencies totaled $138.9 million in FY 2017.3 The Trump administration's budget request for FY 2018 totaled $124.1 million.4

3National Earthquake Hazards Reduction Program, 2005-2017 NEHRP Agency Budgets, accessed on December 7, 2017 (http://www.nehrp.gov/pdf/ 2005-2017_NEHRP_Agency_ Budgets_for_website_15Aug2017.pdf). Specifically, NIST contributed $5.2 million, FEMA contributed $8.5 million, NSF contributed $54.2 million, and USGS contributed $67 million in FY16.

4National Earthquake Hazard Reduction Program, 2018 Requested Funding for NEHRP Agencies, accessed on December 8, 2017 (http:// www.nehrp.gov/pdf/2018_Requested_ Funding_for_NEHRPAgencies_15Aug2017.pdf).

While it has been decades since a major earthquake has struck an urban area of the United States, the cost and national impact of such an earthquake could be devastating. Experts predict that a single major earthquake in California, the Pacific Northwest, the western and central United States, or parts of the Atlantic seaboard, could result in $100 billion to $150 billion in damages.5 This risk is due in part to significant population growth and urban development in earthquake-prone regions of the country, the vulnerability of older buildings and infrastructure, and the increased interdependency and interconnectedness of society and the economy.6 Describing the scale of the exposure, experts cite that half of the U.S. population and $59 trillion in building- related assets are located in portions of 42 States that could experience damaging ground shaking levels within the next 50 years.7

5Advisory Committee on Earthquake Hazards Reduction, "Effectiveness of the National Earthquake Hazards Reduction Program" (September 2017) (http://www.nehrp.gov/pdf/ ACEHR%20report_11Sept2017.pdf).

6Id.

7Id.

Summary of Provisions

If enacted, S. 1768, as reported, would do the following:

Reauthorize NIST as the lead agency of the NEHRP.

Require annual meetings of the Interagency Coordinating Committee (ICC) instead of three times per year.

Require the ICC report every 2 years instead of annually.

Change data sharing requirements between agencies and improve coordination between Federal and State agencies in the case of an earthquake disaster.

Require the NSF, to the extent practicable, to specifically note in any notice of program funding or other grant announcement that the funds used are part of the NEHRP, and to track spending on research that would contribute to all aspects of earthquake science.

Explicitly authorize the USGS to issue earthquake warnings and other earthquake awareness products, and update language on the Advanced National Seismic System (ANSS).

Direct FEMA to return to a directly-funded, State-based program for earthquake risk mitigation, planning, education, and preparedness efforts.

Remove or update outdated statutory language, including references to earthquake prediction, seismic systems that are no longer operational, and outdated authorization levels.

Direct the completion of a comprehensive assessment of the Nation's earthquake risk reduction process, as called for by the Advisory Committee on Earthquake Hazards Reduction in its 2015 report.

Convene a group of experts to examine buildings and critical infrastructure.

Provide authorizations of appropriations for FY 2018 through FY 2022.

Legislative History

S. 1768 was introduced on September 6, 2017, by Senator Feinstein (for herself and Senators Cantwell, Gardner, Harris, Merkley, Murkowski, Murray, and Wyden). Senators Heinrich and Sullivan are also cosponsors of the bill. On December 13, 2017, the Committee met in open Executive Session and, by voice vote, ordered S. 1768 reported favorably with an amendment (in the nature of a substitute).

Senator Gardner offered a substitute amendment, which made several changes to the bill, including the addition of a 5-year authorization of appropriations from FY 2018 through FY 2022.

Estimated Costs

In accordance with paragraph 11(a) of rule XXVI of the Standing Rules of the Senate and section 403 of the Congressional Budget Act of 1974, the Committee provides the following cost estimate, prepared by the Congressional Budget Office:

S. 1768--National Earthquake Hazards Reduction Program Reauthorization Act of 2017

Summary: S. 1768 would amend the Earthquake Hazards Reduction Act of 1977 to make changes to the National Earthquake Hazards Reduction Program (NEHRP), an interagency program focused on reducing earthquake-related risks to life and property. The bill would authorize the appropriation of $735 million over the 2018-2022 period for the United States Geological Survey (USGS), the National Science Foundation (NSF), the Federal Emergency Management Agency (FEMA), and the National Institute of Standards and Technology (NIST) to continue the program.

Assuming appropriation of the authorized amounts, CBO estimates that implementing S. 1768 would cost $596 million over the 2018-2022 period. Enacting the bill would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.

CBO estimates that enacting S. 1768 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028.

S. 1768 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA).

Estimated cost to the Federal Government: The estimated budgetary effect of S. 1768 is shown in the following table. The costs of this legislation fall within budget functions 250 (general science, space, and technology), 300 (natural resources and environment), 370 (commerce and housing credit), and 450 (community and regional development).

(TABLE OMITTED)

Basis of estimate: For this estimate, CBO assumes that S. 1768 will be enacted near the beginning of calendar year 2018 and that the authorized amounts will be appropriated for each year. Estimated outlays are based on historical spending patterns for this program.

NEHRP is a nationwide program that aims to reduce risks to life and property in the United States that result from earthquakes. The main goals of the program include:

Developing effective practices and policies for earthquake loss reduction and accelerating their implementation,

Improving techniques for reducing the earthquake vulnerabilities of facilities and systems,

Improving earthquake hazard identification and risk assessment methods, and

Improving the understanding of earthquakes and their effects.

In 2017, $139 million was allocated to NEHRP. The bill would authorize the appropriation of $735 million over the 2018-2022 period for USGS, NSF, FEMA, and NIST to continue the program. CBO estimates that implementing S. 1768 would cost $596 million over the 2018-2022 period and $139 million in years after 2022.

Pay-As-You-Go considerations: None.

Increase in long-term direct spending and deficits: CBO estimates that enacting S. 1768 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028.

Mandates: S. 1768 contains no intergovernmental or private- sector mandates as defined in UMRA.

Estimate prepared by: Federal Costs: Robert Reese; Mandates: Jon Sperl.

Estimate approved by: H. Samuel Papenfuss, Deputy Assistant Director for Budget Analysis.

Regulatory Impact Statement

In accordance with paragraph 11(b) of rule XXVI of the Standing Rules of the Senate, the Committee provides the following evaluation of the regulatory impact of the legislation, as reported:

number of persons covered

The Committee does not anticipate a change in the number of individuals and businesses covered under the existing NEHRP as a result of this legislation because the bill's program updates would primarily focus on improving the administrative and interagency coordination efforts of Federal agencies.

economic impact

The Committee anticipates a positive economic impact from this legislation given that the bill would focus on improving earthquake risk mitigation, planning, education, and preparedness efforts.

privacy

The Committee does not anticipate a detrimental impact on the personal privacy of individuals as a result of this legislation because the bill's updates would primarily focus on improving the administrative and interagency coordination efforts of Federal agencies.

paperwork

The Committee does not anticipate a significant increase in paperwork burdens resulting from this legislation because there would not be any significant paperwork requirements added to the existing NEHRP.

Congressionally Directed Spending

In compliance with paragraph 4(b) of rule XLIV of the Standing Rules of the Senate, the Committee provides that no provisions contained in the bill, as reported, meet the definition of congressionally directed spending items under the rule.

Section-by-Section Analysis

Section 1. Short title; table of contents.

This section would provide that the Act may be cited as the "National Earthquake Hazards Reduction Program Reauthorization Act of 2017."

Section 2. Modifications of findings and purpose.

This section would modify the congressional findings and purposes of the EHRA to direct the NEHRP to increase the resilience of communities and reduce the adverse effects of earthquakes to individuals and communities. This section would add Oregon and Tennessee to the list of States explicitly cited in the findings section as having major or moderate seismic risk. This section also would add a new finding on the durability of the built environment and general lack of its suitability for operational use post-earthquake. This section would add another new finding highlighting the results of a 2011 National Research Council report, which called for 18 tasks focused on research, preparedness, and mitigation, as well as proposing an estimated annual funding to improve national earthquake resilience.8

8National Research Council, National Earthquake Resilience: Research, Implementation, and Outreach, (2011) accessed on December 8, 2017 (https://www.nap.edu/catalog/13092/national-earthquake-resilience- research-implementation-and-outreach).

Section 3. Modification of National Earthquake Hazards Reduction Program.

This section would add mapping of active faults and folds, liquefaction susceptibility, and susceptibility for earthquake- induced landslides and other hazards to the activities of the NEHRP. It would clarify that the Director of the ICC is a member of the ICC, and would require the ICC to develop and consistently update a strategic plan and a management plan for the program. The ICC would be required to develop an interagency budget to be submitted to the Office of Management and Budget, develop memorandums of understanding with relevant Federal agencies on data sharing and resource commitment, and enhance coordination with other Federal departments and agencies, including the National Oceanic and Atmospheric Administration, the National Aeronautics and Space Administration, the Department of Agriculture, the Department of the Interior, the Department of Transportation, and the Department for Housing and Urban Development.

This section would update the responsibilities for the agencies administering the NEHRP, including to emphasize NIST's role in research and development to improve community resilience through building codes and standards, and practices for structures and lifelines. This section would reemphasize FEMA's role in continuing to operate a State grant program with a 25 percent cost-share provided by each State; to support a comprehensive earthquake education, outreach, and awareness program; to work on performance-based design features; and to enter into agreements related to demonstration projects. This section would clarify the authority of the USGS to issue earthquake early warnings and add a reporting requirement for NSF to ensure, to the extent practicable, that the program is noted in announcements for funding and that research awards are tracked. FEMA and the USGS would be required to increase coordination with the Director of NIST.

Section 4. Review of risks posed by earthquakes to the United States.

This section would require the Government Accountability Office to undertake a review of the effectiveness of the NEHRP and to identify gaps in the national earthquake risk reduction strategy. The review would include an examination of the risks and hazards posed to the United States from earthquakes, the effectiveness of NIST and FEMA in resiliency plan adoption, the progress made by NIST and the ICC related to NEHRP coordination and program success, the adoption of recommendations by governments and communities, the extent that research has led to action, and what legislative or administrative action may be appropriate to improve both the NEHRP and resiliency in general. A report on the review would be required to be completed and submitted to Congress no later than 3 years after the date of enactment of this Act.

Section 5. Seismic standards.

This section would require NIST and FEMA to jointly convene a committee of experts to review existing building design features and recommend options for improving the built environment. This section also would require a report on that committee's findings to be completed and submitted to Congress no later than June 30, 2020.

Section 6. Management plan for Advanced National Seismic System.

This section would require, no later than 1 year after the date of enactment of the bill, the USGS to complete a 5-year management plan of the ANSS. This section also would require the plan to include strategies to continue development of an earthquake early warning system, an approach to securing partnerships with State and regional earthquake monitoring entities, a plan to encourage and support the integration of geospatial data products into earthquake monitoring systems, and a plan to include diverse and active leadership of the ANSS.

Section 7. Authorization of appropriations.

This section would amend section 12 of the EHRA9 to include authorizations of appropriations at NIST, FEMA, the NSF, and the USGS for FY 2018 through FY 2022.

942 U.S.C. 7706.

Section 8. Technical corrections.

This section would make technical corrections, such as replacing incorrect references to the "Director" of FEMA with the accurate title of "Administrator" and simplifying language relating to the ANSS.

Changes in Existing Law

In compliance with paragraph 12 of rule XXVI of the Standing Rules of the Senate, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new material is printed in italic, existing law in which no change is proposed is shown in roman):

EARTHQUAKE HAZARDS REDUCTION ACT OF 1977

The full text of the report is found at: https://www.congress.gov/congressional-report/115th-congress/senate-report/336/1?r=1

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