Quarterly State Floodplain Management & Mitigation Call / Web Meeting - NOTES

September 4, 2012 12:00pm CT

AGENDA

1. Welcome and call instructions Click here for Attendee list

2. NFIP Reform It will take time for FEMA to evaluate and implement the provisions of the legislation. FEMA is weighing priorities on which provisions to act first. A NFIP reform update will be added to the regular call agenda.

3. CRS Task Force – interested? Currently, the CRS Task Force has an opening for a state seat for a State Emergency Manager. If you are SHMO or a SHMO staff member and are interested in having ASFPM submit your name to FEMA as a nominee, please contact Diane Brown at diane@floods.org to express interest. If you have questions about serving on the CRS Task Force, please contact:

• Bill Lesser bill.lesser@dhs.gov • Bill Trakimas wtrakimas@iso.com • Greg Main gmain@dnr.in.gov • Chad Berginnis Cberginnis@floods.org

4. Risk MAP & Agenda Items survey, How do you learn about Risk MAP projects in your state?

ASFPM will be sending out a survey.

5. Next call

Next call scheduled for Tuesday, November 6, 2012 at 12:00pm Central Time (1:00pm Eastern, 10:00AM Pacific)

QUESTIONS SUBMITTED:

Q: How does the "grandfathering" rule apply if there will be 20% increase over 5 years for new zone premium? Wendy Blackwell, NM SHMO A: Bruce Bender, ASFPM Insurance Committee Co-Chair babender@cox.net to connect with the Insurance Committee

Q: can you post the slides and the bill online or email them? A: We'll email the slides with notes to all invitees and attendees within the next week or so. Bill and summary can be found here: http://www.floods.org/index.asp?menuID=651

Q: Does anyone know how they are going to track the cumulative damage? Most communities don't track that cumulative damage? A: --unanswered--TBD

Q: Can we get copies of the presentation? A: We'll be sending out copies of the slides with notes within the next week or so to all attendees/invitees.

Q: There are many fee increases - would it make sense that they will appear in the May 2013 update fo the insurance manual? A: --unanswered-- TBD

Quarterly State Floodplain Management & Mitigation Call / Web Meeting - 9/4/2012

September 4, 2012 @ 12:00pm CT

Total Attended 43

First N

ame

Last N

ame

Email

What is

your r

ole

within th

e stat

e?

State

Elizabeth Ashby eashby@dps.state.nv.us SHMO NV

Jessica Baker jbaker@halff.com ASFPM Region VI Director TX

Charley Banks charley.banks@dcr.virginia.gov NFIP Coordinator VA

Chad Berginnis cberginnis@floods.org ASFPM Executive Director WI

Wendy Blackwell wendy.blackwell@state.nm.us SHMO NM

Michael Borengasser michael.borengasser@arkansas.gov NFIP Coordinator AR

Gavin Brady jgbrady@owrb.ok.gov NFIP State Coordinator OK

Diane Brown diane@floods.org Communications & Events Manager WI

John Brubaker dan.brubaker@ncdps.gov NFIP Engineer NC

Michelle Burnett michelle.f.burnett@us.army.mil State NFIP Coordinator, ASFPM Region 1 Director RI

Bill Cappuccio bill.cappuccio@dnr.iowa.gov NFIP State Coordinator IA

Dave Carlton david.carlton@atkinsglobal.com ASFPM Natural & Beneficial Functions Committee Co-Chair WA

Brian Cosson btcosson@azwater.gov ADWR NFIP Coordinator AZ

Kim Davis kadavis@water.nv.gov NFIP Coordinator NV

Jim DeAngelo jfdeangelo@gmail.com ASFPM Region 2 Director NJ

Joy Duperault joy.duperault@em.myflorida.com State NFIP Coordinator, ASFPM Secretary FL

Steve Ferryman saferryman@dps.state.oh.us SHMO, ASFPM Mitigation Committee Co-Chair OH

John Gerber john.gerber@ncdps.gov NFIP Coordinator NC

Jennifer Gilbert jennifer.gilbert@nh.gov State NFIP Coordinator NH

Dave Guignet dguignet@mde.state.md.us State NFIP Coordinator MD

Gary Heinrichs gary.heinrichs@wi.gov NFIP Coordinator, ASFPM Insurance Committee Co-Chair WI

Bo Juza boj@dhi.us ASFPM Int'l Committee Co-Chair NY

Maria Lamm coxm@dnr.sc.gov State Coordinator SC

Sarah Land sarah.land@state.sd.us State NFIP Coordinator SD

Larry Larson larry@floods.org ASFPM Director Emeritus - Sr. Policy Advisor WI

Quarterly State Floodplain Management & Mitigation Call / Web Meeting - 9/4/2012

September 4, 2012 @ 12:00pm CT

Total Attended 43

First N

ame

Last N

ame

Email

What is

your r

ole

within th

e stat

e?

State

Kait Laufenberg kait@floods.org ASFPM Training & Chapter Coordinator WI

Jen Marcy jennifer.marcy@atkinsglobal.com ASFPM Training & Outreach Committee Co-Chair NY

Sally McConkey sally@illinois.edu CTP, ASFPM Chair IL

Mary McGown mary.mcgown@idwr.idaho.gov State Coordinator ID

Alison Meehan alison.meehan@dcr.virginia.gov NFIP Coordinator, ASFPM Region 3 Director VA

Ginni Melton ginni.melton@wyo.gov NFIP Coordinator WY

Tom Morey tom.morey@kda.ks.gov NFIP Coordinator KS

John Moyle john.moyle@dep.state.nj.us NFIP Coordinator NJ

Bill Nechamen wsnecham@gw.dec.state.ny.us Floodplain Management Coordinator, ASFPM Vice Chair NY

Emily Pysh emily.pysh@ct.gov Emergency Mgmt/HMGP CT

George Riedel george.riedel@mbakercorp.com ASFPM Floodproofing Committee Co-Chair MO

Matthew Rollins mjrollins@owrb.ok.gov State Coordinating agency OK

Joseph Ruggeri joseph.ruggeri@dep.state.nj.us NFIP Coordinator, ASFPM Treasurer NJ

Steve Samuelson steve.samuelson@kda.ks.gov NFIP Technical Support KS

Traci Sears tsears@mt.gov NFIP Coordinator MT

Christine Shirley christine.shirley@state.or.us NFIP Coordinator OR

Mark Stephensen mstephensen@bhs.idaho.gov SHMO IDJessica Stimson jessica.r.stimson@us.army.mil Floodplain Mapping Coordinator RI

Ceil Strauss ceil.strauss@state.mn.us State Floodplain Manager, ASFPM Region 5 Director MN

Ernest Szabo erszabo@pa.gov State Hazard Mitigation Planner PA

Maureen Towne mctowne@azwater.gov RiskMAP Coordinator AZ

Brian Varrella bvarrella@fcgov.com ASFPM Region 8 Director CO

Joseph Young joseph.young@maine.gov Mapping Coordinator, ASFPM Mapping & Engineering Committee Co-Chair ME

Richard Zingarelli richard.zingarelli@state.ma.us NFIP Coordinator and SHMO MA

9/4/2012

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State Floodplain Management & Mitigation Call / Web Meeting

TOPICS: NFIP Reform

Sep 4, 201212pm Central Time (1pm Eastern, 10am Pacific)

Dial: 218-936-4700Access Code: 35663

Agenda

1. Welcome and call instructions (10 min.)

2. NFIP Reform (40 min.)

3. CRS Task Force – interested? (2 min.)

4. Risk MAP survey, How do you learn about Risk MAP projects in your state? (3 min)

5. Agenda ideas needed. (3 min)

6. Next call (2 min.)

9/4/2012

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Purpose

• Provide a facilitated forum for exchange of information between State Floodplain Managers and Hazard Mitigation Officers

• Identify issues that might be taken up by ASFPM

Protocol

• Calls will be held quarterly and will be one hour

• Call topics to be determined by polling State Floodplain Managers and Hazard Mitigation Officers

9/4/2012

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Ground Rules

• Participate! • One person talks at a time. • Monitor time – allow everyone a chance to talk.• Safe Room - Everyone’s input is honored, no one

trashed.• Don’t make it personal, don’t take it personally.

Your ideas are not you.• What is discussed here stays here – UNLESS

the group agrees that it be shared outside the group.

• Have fun!Courtesy of Tom Hirt, FEMA’s EMI

Agenda

1. Welcome and call instructions (10 min.)

2. NFIP Reform (40 min.)

3. CRS Task Force – interested? (2 min.)

4. Risk MAP survey, How do you learn about Risk MAP projects in your state? (3 min)

5. Agenda ideas needed. (3 min)

6. Next call (2 min.)

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(compiled by ASFPM Vice Chair Bill Nechamen and Merrie Inderfurth, Washington Liaison – using Congressional committee Section-by-Section) in addition to bill language.

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Removes subsidized rates (pre-FIRM rates) for the following classes of structures and allows rates to increase by 25% per year until actuarial rates are achieved: The effective date is July 1, 2012.

• Any residential property that is not the primary residence of an individual• Any severe repetitive loss property• Any property that has incurred flood related damages that cumulatively exceed the fair

market value of the property• Any business property• Any property that after the date of the Bill has incurred substantial damage or has

experienced “substantial improvement exceeding 30 percent of the fair market value of the property.

• Any new policy or lapsed policy, or any policy for a newly purchased property.• Any policy for which the owner has refused a FEMA mitigation offer under HMGP, or for a

repetitive loss property or severe repetitive loss property.o Severe Repetitive Loss means four or more claims payments of over $5,000 or two

claims that exceed the value of the property.

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Increases the limit for annual rate increases within any risk classification of structures from 10 percent to 20 percent. Effective date is July 1, 2012.

Defines Severe Repetitive Loss properties for single family residences as 4 or more claims, each for more than $5,000 and cumulatively more than $20,000. For multi-family residences, the Director may provide a definition by regulation.

Allows for premium payments either annually or in more frequent installations.

Places limits on a bank’s force placement of flood insurance. Forced placed insurance would be cancelled and the premiums refunded upon proof of a borrower’s existing flood insurance coverage.

When flood maps change, a property that has higher rates as a result of a new map shall have the new rates phased in over a five-year period at 20% per year. .Premium rate adjustments due to map changes take effect on the effective date of the new map.

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Lender penalties for non-compliance with mandatory flood insurance purchase requirements is increased from $350 to $2000 per violation, and the limit of fines for any lending institution over a calendar year is removed. It was $100,000.

Minimum annual deductibles on claims are changed to $1500 for coverage up to $100,000 and $2000 for coverage over $100,000 for pre-FIRM properties, and $1,000 and $1,250 for below and above $100,000 coverage for post-FIRM properties.

Rates must be set to cover the average historical loss year, including catastrophic loss years, in accordance with generally accepted actuarial principles. (That would also increase rates since the increase in flood damages has meant that rates do not cover the historical average loss year.)

Requires FEMA to establish a National Flood Insurance Reserve Fund of at least one percent of the total potential loss exposure. This fund would be built by 7.5% of the reserve ratio required each year. Allows FEMA to report to Congress if such goals cannot be met and to explain the reasons

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Requires a ten-year repayment plan for the current insurance fund debt and also requires a report and repayment plan whenever FEMA has to borrow funds to pay NFIP claims..

Clarifies that private flood insurance may satisfy flood insurance coverage requirements if it meets certain standards..

Allows state sponsored nonbinding mediation of flood insurance claims disputes, and would require NFIPrepresentatives to participate.

Amends the Real Estate Settlement Procedures Act (RESPA) to require explanation of the availability of flood insurance under the NFIP or through private insurance for properties both in and out of Standard Flood Hazard Areas (SFHAs).

Establishes reporting requirements associated with reimbursement of expenses for Write Your Own (WYO) insurance companies. Directs the FEMA Administrator to develop a methodology for calculating expense reimbursement within 180 days and to issue a rule within 12 months.

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Establishes a process involving the National Oceanographic and Atmospheric Administration (NOAA) to allocate tropical storm and hurricane damages between wind and water damage. (This is Subtitle B of Title III and is entitled “Alternative Loss Allocation”. This is derived from previously introduced legislation known as “The Coastal Act”. It’s provisions are found on pages 576-585.)

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Establishes a Technical Mapping Advisory Council with membership coming from a wide range of professions, including federal agencies and state and local mapping partners. The Council would advise FEMA on improving accuracy, on standards that should be adopted for flood maps, data and map maintenance and on funding needs and strategy. It would also develop recommendations within 1 year for future conditions mapping, including impacts of sea level rise and future development on flood risk. FEMA is required to incorporate such recommendations into the ongoing review and updating of flood maps.

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Establishes an on-going National Flood Mapping Program. Requires that flood maps show 100-year and 500-year floodplains for all populated areas and areas of possible population growth, as well as areas with residual risk behind levees or below dams. Also requires mapping of the level of protection provided by flood control structures. Requires that new flood maps use the most accurate topography and elevation data available. Also requires acquisition of new ground elevation data when necessary. Requires development of flood data on a watershed basis.

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Requires FEMA to notify property owners when their properties are included in, or are removed from an area covered my mandatory insurance purchase requirements. Also requires notification of Senators and House Members whose States or Districts are affected by map changes.

There is an authorization of $400,000,000 for flood mapping per year for fiscal years 2013 –2017. (This is an authorization level – not to be confused with actual annual appropriations.)

Formalizes a Scientific Resolution Panel to arbitrate when a community has received an unsatisfactory ruling with respect to an appeal of a revised flood insurance rate map. Appeals must be based on technical or scientific data.

Removes limitations on state contributions to updated flood mapping. (Previously, there was a limit of a50% state contribution to the costs of new flood maps. This has resulted in some states in states developing mapping data but FEMA being unable to use it to produce new maps.)

Requires a study on federal interagency coordination of flood mapping, including collection and utilization of data among all governmental users.

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Consolidates NFIP funded mitigation programs (Repetitive Flood Claims, Severe Repetitive Loss Properties, Flood Mitigation Assistance) into a single program. The combined National Flood Mitigation Fund is to be funded at $90 million per year. (While the old Flood Mitigation Assistance and pilot Severe Repetitive Loss program were funded at up to $40 million per year each and the Repetitive Flood Claims program at up to $10 million, the SRL program has never been fully utilized in part due to its complexity. The new program simplifies and combines the three previous programs and includes the following:• Allows the required Flood Mitigation Plan to be part of a community’s multi-hazard mitigation plan. • Removes beach nourishment as an allowed mitigation activity.• Adds elevation, relocation or floodproofing of utilities as allowed mitigation activities.• Adds demolition and rebuild as an allowed mitigation activity.

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Specifically notes the capacity for “direct” grants if the Administrator, after consulting with the State and community, determines that neither has the capacity to manage the mitigation grant.

Caps the use of mitigation grant funds for state mitigation plan development at $50,000 and at $25,000 for a community.

Provides for denial of grant funds if not obligated (paid out) in 5 years. (This is due to Congressional concern about unobligated balances.) Specifically restates 2004 Reform bill provision prohibiting offsetting collections to fund these mitigation programs.

Restructures federal share requirement:

• Up to 100% for severe repetitive loss structures. (4+ Claims of over $5000 or 2+ claims exceeding value of structure)

• Up to 90% for repetitive loss structures. (2 claims over 10 years averaging at least 25% of value of structure)

• Up to 75% for other approved mitigation activities.

22

Establishes a Flood Protection Structure Accreditation Task Force in cooperation with the Corps of Engineers. The Task Force is charged with better aligning the information collected by the Corps of Engineers’ Inspection of Completed Works Program with FEMA’s flood protection structure accreditation requirements. The Task Force must develop a process that allows data collected for either purpose to be used interchangeably, and to allow data collected by the Corps of Engineers under the Completed Works Program to be used to satisfy the FEMA accreditation requirements. (This is not meant to reduce the level of public safety and flood control provided by accredited levees. However the Task Force is charged with considering changes to the information collected by the Corps of Engineers and the FEMA flood protection accreditation requirements.) FEMA and the Corps of Engineers must implement the measures developed by the Task Force within one year and complete implementation within two years.

Allows for flood insurance premiums to reflect premiums in fully protected areas in communities that are deemed to have made adequate progress in the reconstruction or improvement of a flood protection system.

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FEMA is required to develop a process for determining when a flood event has commenced for the purpose of flood insurance coverage. (Generally a new policy becomes active in 30 days unless purchased as part of a real estate closing. Due to recent long lasting floods, particularly in the Mississippi and Missouri basins, where flooding can begin upstream more than a month before downstream areas flood, there has been confusion as to the meaning of “flood in progress” as related to coverage under newly purchased flood insurance policies.)

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COMMUNITY RATING SYSTEM TASK FORCE ~~ MISSION STATEMENT

The Community Rating System Task Force (CRSTF) shall meet periodically and make recommendations to the Federal Insurance Administrator (a.k.a. Mitigation Division Director). The CRSTF's responsibilities shall include, but are not limited to, the following activities:• The CRSTF shall review and analyze application and field verification results; evaluate feedback

on the CRS process from interested parties; resolve conflicting or alternative implementation of CRS activities to assure uniform application of CRS standards; review weights of credits for activities for actuarial fairness to ensure consistency with program goals and objectives; make recommendations on refinements to the existing program and future activities including credit criteria and model programs; assist in the review of CRS internal/external educational and training materials; and make recommendations on the direction of priorities and work efforts.

• The CRSTF shall provide periodic recommendations to the Federal Insurance Administrator (Mitigation Division) and WYO Companies on the Mitigation Division approved CRS current and proposed budgets, and on the financial performance of the firm implementing the CRS. The Budget and Audit Committees of the CRSTF shall each continue to be chaired by a FEMA employee.

• The CRS incorporates all aspects of the NFIP. Therefore, at the discretion of the Administrator, the CRSTF may also assist on NFIP peripheral issues should the multi-disciplinary advice from this established group be needed.

• The CRSTF shall continue to meet periodically, maintaining its annual schedule of three meetings, with supplemental ad hoc meetings as needed. Meeting locations will vary but shall include some regional office cities to acknowledge the value of, and gain input from, experience from FEMA regional office staff.

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