How can a municipality prepare for potential future disasters?

Preparing for potential future disasters will likely include the following priorities:

• Assessments of disaster response capacity and evaluations of internal structures, processes, and systems that may be able to support the preparation for, response to, and recovery from a disaster;
• Increased public health monitoring;
• Renewed focus on business continuity and emergency operations support;
• Dedication to and investments in infrastructure resilience;
• Identification of potential funding sources;
• Efforts to mitigate long-term economic impacts; and
• Preparation of After-Action Reports or Mid-Action Assessments of the successes/challenges/opportunities for the next pandemic and/or disaster.

The Federal Emergency Management Agency (“FEMA”) has published a report describing how communities can prepare for disasters by developing pre-disaster recovery plans.[1] FEMA states:

Effective pre-disaster planning is an important process that allows a comprehensive and integrated understanding of community objectives. Pre-disaster planning also connects community plans to guide post-disaster decisions and investments. This guide will aid in understanding the key considerations and process that a local government can use to build a community’s recovery capacity and develop a pre-disaster recovery plan.[2]

When identifying potential funding sources, municipalities should monitor any carried insurance policies that may cover some of the effects of a disaster to ensure adequate coverage. Since insurance coverage would need to be exhausted prior to FEMA Public Assistance (“FEMA PA”) funding, understanding insurance coverage available may be a key pre-disaster planning activity.

There are several potential avenues for municipalities to receive funding and assistance both pre- and post-disaster. As an initial step, municipalities should identify all available funding to create a strategy that defines when and how funds should be used. Municipalities should consider: (i) which funding sources are more restrictive vs. less restrictive; and (ii) the short-term and long-term fiscal impact of fund uses.

More restrictive funding can be prioritized for initial use over more flexible funding where reasonable. For example, utilizing FEMA PA funding for all eligible activities before using Coronavirus Relief Funds (“CRF”) derived from the Coronavirus Aid, Relief, and Economic Security Act of 2020 (“CARES”) for expenditures that are ineligible for FEMA reimbursement may result in a more efficient and effective use of federal funding. Additionally, FEMA PA funding typically is not capped or competitive; thus, prioritizing FEMA PA funding may help maximize overall federal funding. In addition, any cost share requirements should also be considered.

The American Rescue Plan Act of 2021 (“ARP”) funding is intended to support recipients in responding to the impact of COVID-19. Some activities eligible for Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) assistance may also support long-term disaster preparedness. Municipalities should conduct reviews to determine eligibility of proposed uses of funds.

The U.S. Department of the Treasury’s (“Treasury”) Final Rule discusses water, sewer, and broadband infrastructure projects as eligible uses of CSLFRF funds.[3] Although these projects are not specifically defined as preparedness activities, municipalities could apply CSLFRF funds to complete projects that would effectively make water, sewer, stormwater, and broadband infrastructure more resilient in the event of potential future disasters. The Final Rule limits all investments in water, sewer, and broadband infrastructure to those that are considered “necessary” investments, meaning those that are:

(1) responsive to an identified need to achieve or maintain an adequate minimum level of service, which may include a reasonable projection of increased need, whether due to population growth or otherwise and (2) a cost-effective means for meeting that need, taking into account available alternatives.[4]

CSLFRF can be used on water and sewer infrastructure projects that are eligible under the Environmental Protection Agency (“EPA”)’s Drinking Water State Revolving Fund (“DWSRF”) program and Clean Water State Revolving Fund (“CWSRF”) program,[5] in addition to other projects meeting the requirements to be considered “necessary” under the Final Rule.[6] For example, Treasury notes in the Final Rule that “some floodplain management and flood mitigation infrastructure projects, including green infrastructure designed to protect treatment works from flood waters and flood impact are currently eligible under the CWSRF and therefore continue to be eligible under the final rule.”[7]

FEMA has authorized several hazard mitigation programs that communities will find useful in planning for future disasters. FEMA’s Building Resilient Infrastructure and Communities (“BRIC”) program is a pre-disaster program that is authorized by the Stafford Act.[8] The BRIC program provides guidance for communities to develop plans to facilitate post-disaster resilient reconstruction.[9]

The Stafford Act includes other FEMA pre-disaster mitigation provisions. The Stafford Act authorizes FEMA to provide increased amounts of hazard mitigation assistance to communities that develop hazard mitigation plans before major disasters occur.[10] These FEMA authorities will be useful for communities that recognize the need for pre-disaster planning.

In addition, the Stafford Act authorizes FEMA to provide several sources of funds for hazard mitigation projects through sections 404 and 406 including:

• Some portion of communities’ costs to implement hazard mitigation projects after major disasters occur[11]
• A portion of the costs of hazard mitigation measures which will reduce future disaster damage[12]
• Hazard mitigation measures specifically at facilities which have already been damaged by major disasters[13]

Although these two authorities are not available before presidential major disaster declarations, they can be useful sources of assistance following disasters.

Last Revised: February 16, 2022