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1 1 (June 14, 2024)

handle is hein.crs/govepgl0001 and id is 1 raw text is: Congressional Research Service Informing the Iegisl9tive debate s~nco 1914 0 June 14, 2024 Recovering Funds from Parties Liable: Stafford Act Authorities Introduct on The Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Stafford Act; P.L. 93-288, as amended, 42 U.S.C. §§5121 et seq.) authorizes the President to provide federal response, recovery, and mitigation assistance for emergencies and major disasters. The President has delegated most Stafford Act authorities to the Federal Emergency Management Agency (FEMA). Section 317(a) of the Stafford Act enables the federal government to recover funds from parties liable for an emergency or major disaster, as follows: Party Liable-Any person who intentionally causes a condition for which Federal assistance is provided under this Act or under any other Federal law as a result of a declaration of a major disaster or emergency under this Act shall be liable to the United States for the reasonable costs incurred by the United States in responding to such disaster or emergency to the extent that such costs are attributable to the intentional act or omission of such person which caused such condition. Such action for reasonable costs shall be brought in an appropriate United States district court (Section 317(a); 42 U.S.C. §5160(a)). Some recent disasters have renewed interest in authorities like Section 317(a) that establish financial liability for disaster-related losses. Background and Legislative History The federal government did not have specific statutory authority to recover funds from liable parties responsible for major disasters declared under the Disaster Relief Act of 1960 (which preceded the Stafford Act). This caused controversy when President John F. Kennedy declared major disasters under that act to provide assistance to remove a barge transporting liquid chlorine abandoned by Wyandotte Transportation Co. The federal government sued Wyandotte Transportation Co. to recover funds expended on the barge removal and cleanup. In ,389 U.S. 191, Wyandotte argued, and the U.S. Supreme Court agreed, that the Disaster Relief Act of 1960 did not authorize the government to reclaim funds from parties found liable for a presidentially-declared disaster. The Court held that the U.S. could recover its clean-up expenses in this case under a different statute, the Rivers and Harbors Act of 1899. The issue of financial liability for emergencies and disasters regained momentum after President Jimmy Carter declared emergencies for several man-made incidents, including the chemical contamination of the Love Canal community by Hooker Chemical Company in 1978-79. The enactment of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA, P.L. 96-510) established financial liability for certain parties held responsible for releases of hazardous substances into the environment. While CERCLA established a liability framework for releases of hazardous substances, debate continued over the unresolved issue of liability for the full scope of disasters declared under the Disaster Relief Act. The language in Section 317(a) first appeared in 1981 (S. 1216, 97th Congress). Then-FEMA Director Louis 0. Giuffrida testified that the bill would solidify the ability of the Federal Government to recover Federal funds where disaster situations have been caused or aggravated by attributable entities (Committee on Environment and Public Works, Hearing on S. 1216, S. 1217 and S. 2250, 97th Congress, 1t session, July 16 and 21, 1981). However, some raised concerns that proposals like S. 1216 could enable the federal government to hold state or local governments liable for failure to mitigate known hazards, or for their efforts during the course of disaster response. Following seven years of debate, Section 317(a) was enacted on November 23, 1988, as part of the suite of revisions codified as the Stafford Act. A second provision, 317(b), specified that a person providing care or assistance in response to a disaster could not be held liable for the results of those actions, and was intended to redress the concerns that nonfederal governments might be held liable for inadequate response measures (42 U.S.C. §5160(b)). Imp ementat on To recover costs under Section 317(a) from a potentially liable party, the United States must file a claim in an appropriate federal court. The U.S. Government Accountability Office (GAO) reported that FEMA's Office of Chief Counsel considers a number of factors before pursuing a claim, including * Whether an intentional act (or omission) can be shown to have caused an emergency or major disaster. FEMA reports that the agency relies on federal investigations to determine cause and intentionality. * The time and cost of litigation vs. the likelihood and size of a potential award. * How recovered assistance may affect survivors and/or the agency. For example, FEMA may consider the solvency of the alleged responsible party and how that may affect recovery of funds. (GAO-24-106558) FEMA could also recover funds from entities who received Stafford Act assistance in certain cases. FEMA reported to CRS that in cases where there is a party liable for causing disaster-related damages, the onus is on the entity or

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