	Introduction

Congressional awareness of issues associated with locally owned and operated levees is increasing, largely because of the nationwide remapping of floodplains by the Federal Emergency Management Agency (FEMA) and efforts to reauthorize the FEMA's National Flood Insurance Program (NFIP) which expires on September 30, 2011. Most notably, FEMA coordinates updates to Flood Insurance Rate Maps (FIRM) and issues levee accreditations that waive the mandatory purchase requirement for homeowners who reside in areas protected by levees. In certain limited situations discussed later in this report, the U.S. Army Corps of Engineers (Corps) may certify the data submitted to FEMA for accreditation purposes. Levees are located throughout the country and are found in approximately 22% of U.S. counties, where almost half of the U.S. population resides. Nationally, average economic damage from floods in leveed areas ranges between $5 billion and $10 billion annually. One estimate puts the five-year level of investment for new construction or maintenance needed for the nation's existing levees at $50 billion. Congress has considered in recent years whether and how to change the current division of levee responsibilities and their costs, and whether to modify existing levee-related federal programs. The report first discusses the role of levees in flood risk reduction, the shared responsibilities for levees in the United States, and the role of three agencies: FEMA, the Corps, and the Natural Resources Conservation Service (NRCS) of the U.S. Department of Agriculture (USDA). Finally, the report outlines policy options for locally operated levees that might be considered by the 112 th Congress. 1570) declared some flood control a "proper" federal activity:
It is hereby recognized that destructive floods upon the rivers of the United States, upsetting orderly processes and causing loss of life and property, including the erosion of lands and impairing and obstructing navigation, highways, railroads, and other channels of commerce between the States, constitute a menace to national welfare; that it is the sense of Congress that flood control on navigational waters or their tributaries is a proper activity of the Federal Government in cooperation with States, their political sub-divisions and localities thereof; that investigations and improvements of rivers and other waterways, including watersheds thereof, for flood-control purposes are in the interest of the general welfare; that the Federal Government should improve or participate in the improvement of navigable waters or their tributaries including watersheds thereof, for flood-control purposes if the benefits to whomsoever they may accrue are in excess of the estimated costs, and if the lives and social security of people are otherwise adversely affected. NRCS provides some funds for repair of damaged levees through its Small Watershed Program. However, expanding the Corps' role in NFIP data certification and post-construction improvements of locally operated levees is being discussed as part of the policy debate on how to manage flood risk and promote risk reduction nationally. Costs of Obtaining Levee Accreditation

Owners of locally operated levees are responsible for the costs associated with seeking and maintaining FEMA's levee accreditation. Some levee owners have expressed concerns about the costs and process for obtaining accreditation. In 2005, FEMA increased the information requirements needed to accredit a levee. FEMA has had little involvement in levee planning and construction. Approximately 2,000 projects, representing 14,000 miles of levees, participate in RIP—2,250 miles of locally constructed and operated levees; 9,650 miles of Corps-constructed, locally operated levees; and 2,100 miles of Corps operated levees. There is debate regarding the extent to which FEMA hazard mitigation assistance programs can be used for levee construction and betterment, if at all. The table clarifies that the Corps is the main federal partner in the construction of locally operated levees. Table 5 shows that there are no general federal authorities for assistance with the regular operation and maintenance of locally operated levees. These include, but are not limited to, maintaining the status quo, adopting the recommendations of the congressionally established National Committee on Levee Safety, creating a new grant program, supplementing existing grant programs, or reducing the federal role in levee funding. The NCLS draft proposes, among other investments:
a new levee safety grant program to assist states in achieving strong levee safety programs, at $113 million annually in federal appropriations; a National Levee Rehabilitation, Improvement, and Flood Mitigation Fund to address both structural and nonstructural levee rehabilitation needs, at $600 million annually in federal appropriations; and authority for the Corps to perform a one-time inspection of all locally operated levees (not only federally constructed levees or those participating in RIP) to support the development of the National Levee Database, at $125 million annually for the next five years.
Locally operated levees and the federal programs that assist and accredit them are receiving increasing congressional attention. Congressional authorization of the National Flood Insurance Program (NFIP), managed by the Federal Emergency Management Agency (FEMA), expires on September 30, 2011. The pending reauthorization has increased congressional awareness of the link between the condition of locally operated levees, FEMA's Flood Insurance Rate Maps (FIRMs) and levee accreditation (which determine which NFIP requirements and premiums apply in an area), and programs providing federal disaster assistance for these levees. Congress is considering whether and how to change current programs, federal funding, and the existing division of levee responsibilities. Options are complicated by the desire to promote state, local, and individual decisions and investments that reduce flood risk; concerns about the local costs associated with NFIP purchase and levee accreditation requirements; and consideration of whether to expand federal responsibilities and potential liability. Even though similar issues also exist for some of the federally operated levees, this report focuses on locally operated levees since these dominate the national levee portfolio.
Approximately 22% of U.S. counties across the country, representing almost half of the U.S. population, contain levees. Economic damage from floods in leveed areas ranges between $5 billion and $10 billion annually. Levees play an important role in protecting property against flood damage. More than 100,000 miles of levees may exist, with the federal government operating roughly 2,100 miles. One estimate puts the five-year level of investment needed for new construction or maintenance of the nation's levees at $50 billion.
FEMA is updating FIRMs and deciding whether to accredit levees which will determine whether they appear on those maps. There is some debate regarding the extent to which FEMA should assist with levees investment through its hazard mitigation programs. FEMA often cites overlap with activities of the U.S. Army Corps of Engineers (Corps) and the Natural Resources Conservation Services (NRCS) in the U.S. Department of Agriculture as justification for not funding levee activities.
The Corps is the main federal partner for construction of locally operated levees. Pursuant to congressional authorizations, the Corps participates in cost-shared planning and construction of levees. No general federal authorities exist for the Corps to assist with the regular operation and maintenance of locally operated levees; that is, local levee owners are responsible for operation, maintenance, and improvement. However, there are multiple authorities enacted by Congress for flood fighting, flood mitigation, and levee repair of damages caused by natural events. Since 2005, the Corps has had limited involvement in the data collected and certified to inform FEMA accreditation of locally operated levees. The Corps has limited authority to assist local levee owners in obtaining NFIP levee accreditation. Policymakers in recent years have considered whether to expand the Corps' role in NFIP data certification and post-construction improvements for locally operated levees. NRCS has limited authority to assist in the construction of smaller levees and to repair small, mostly rural levees damaged by a natural event.
Congressional options for assisting with levees include, but are not limited to, maintaining the status quo, adopting the recommendations of the National Committee on Levee Safety (such as federal support to develop new state levee safety programs), modifying federal programs, or creating new federal programs.