Senators seek to add measure delaying flood insurance hikes to pending defense bill

By Bruce Alpert, NOLA.com | Times-Picayune 
on November 19, 2013 at 10:52 AM, updated November 19, 2013

WASHINGTON - Senate backers of legislation to delay flood insurance premium increases for four years Tuesday announced a new strategy: They'll try to add their legislation to a pending defense authorization bill.

Their prospects are iffy, if best.

The amendment, at least initially, is likely to be brought up under a process that requires unanimous consent of members.

Sen. Mary Landrieu, D-La, a co-sponsor of the delaying legislation, tried to add a similar measure delaying the premium hikes for five years to a water resources bill in May, but was blocked by Sen. Pat Toomey, R-Pa. Toomey said he didn't want to delay reforms designed to make the flood insurance program more fiscally sound, given that they were only adopted by Congress one year ago as part of the Biggert-Waters Act.

If a member objects, there can't be a vote on the amendment -- unless leaders agree to bring it up under a process that would require 60 votes. But sponsors of the defense authorization bill may not want a lengthy delay on their legislation - especially over an issue not related to defense

Still, the bill, mandating a four-year delay in increases, has considerable Democratic and Republican support, not unexpected given that premium increases are drawing opposition from officials and residents in 27 states. As of last count, in addition to lead sponsor Sen. Robert Menendez, D-N.J., the bill has 22 co-sponsors, including Landrieu and Sen. David Vitter, R-La. Fifteen of the co-sponsors are Democrats, seven Republicans.

Fifteen of the sponsors, led by Menendez, introduced the bill Tuesday as an amendment to the Senate defense authorization bill.

"We have a strong, growing coalition of bipartisan House and Senate members from across the country, business groups, non-profits and local leaders who agree that this legislation is the fix we need," Landrieu said. "I urge my colleagues to support this amendment so we can fix the flawed Biggert-Waters Act and build a future that Louisianians can count on, where they can safely and affordably live where they have for generations providing the energy our country needs, keeping commerce flowing and making the products we need to grow our economy,"

Landrieu said the delay would allow the Federal Emergency Management Agency to complete an affordability study and determine how to keep the flood insurance program affordable for homeowners who need the protection.

Some policyholders say they've been told to expect a doubling, tripling and in some cases, a 10-fold increase in their annual premiums as a result of the 2012 Biggert-Waters Act.

According to the Association of State Floodplain Managers, 19.3 percent of the 5.6 million National Flood Insurance Program policyholders receive subsidized policies, providing a 40 to 45 percent discount over actuarial rates. Many of those discounts will be eliminated, either immediately or phased in over five years.

"We have an opportunity for an amendment on the defense bill," Landrieu said during a colloquy on the Senate floor with backers of the delaying proposal. "If not, we'll be looking for the next possible opportunity."

Michael Hecht, president and CEO of Greater New Orleans Inc., said Congress needs to act soon.

"We are dealing with a problem of profound unintended consequences," Hecht's prepared testimony reads. "A three-way confluence of the Biggert-Waters Act, incomplete FEMA maps that artificially inflate risk, and questionable actuarial calculations, has led to premium increases of up to 3,000 percent and more -- including massive rate increases for policyholders who have built as the government told them and have no history of flooding."

Menendez said supporters of the delaying legislation, which now includes Rep. Maxine Waters, D-Calif., co-sponsor of the Biggert-Waters flood insurance legislation, are determined to protect homeowners.

"Many homeowners will have to pay premiums they simply cannot afford, forcing them to either sell or abandon their homes," Menendez said in introducing the bill last month.
"These are hardworking middle class families, who played by the rules, purchased flood insurance responsibly, and are now being priced out of their own home.  We must stop this man-made disaster from doing more damage, take a time-out and assess the impact these premium hikes will have on homeowners and the communities they live in." 

Louisiana co-sponsors of the legislation include Reps. Steve Scalise, R-Jefferson,Cedric Richmond, D-New Orleans and Bill Cassidy, R-Baton Rouge.