WikiLeaks Document Release
http://wikileaks.org/wiki/CRS-RS22253
February 2, 2009
Congressional Research Service
Report RS22253
Regulatory Waivers and Extensions Pursuant to Hurricane
Katrina
Curtis W. Copeland, Government and Finance Division
September 19, 2005
Abstract. for certain reports and applications to assist victims of Hurricane Katrina and to ease the economic
effects of the storm. Most of the actions were permitted by agency or program-specific authorizing statutes.
More generally, though, Section 301 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act
permits agencies to modify or waive administrative conditions for federal assistance in the wake of a major
disaster upon the request of state or local authorities. This report identifies some (but not all) of those
Katrina-related waivers and extensions,
Order Code RS22253
Updated September 19, 2005
CRS Report for Congress
Received through the CRS Web
Regulatory Waivers and Extensions Pursuant
to Hurricane Katrina
Curtis W. Copeland
Specialist in American National Government
Government and Finance Division
Summary
http://wikileaks.org/wiki/CRS-RS22253
Federal agencies have waived a number of regulatory requirements and extended
the deadlines for certain reports and applications to assist victims of Hurricane Katrina
and to ease the economic effects of the storm. Most of the actions were permitted by
agency or program-specific authorizing statutes. More generally, though, Section 301
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act permits
agencies to modify or waive administrative conditions for federal assistance in the wake
of a major disaster upon the request of state or local authorities. This report identifies
some (but not all) of those Katrina-related waivers and extensions, and will not be
updated.
In the wake of Hurricane Katrina, a number of federal agencies waived certain
regulatory requirements or extended the deadlines for certain reports or applications. The
purposes of these actions varied, but they often centered on making it easier to assist
victims of Hurricane Katrina or to ease the economic effects of the storm. In most cases,
agency or program-specific federal statutes gave the agencies the authority to take those
actions on their own with regard to specific regulatory issues. In other cases, though,
waivers required actions by the President or Congress. For example, on September 8,
2005, President Bush issued a proclamation suspending application of the Davis-Bacon
Act wage requirements on federal reconstruction projects in areas of Alabama, Florida,
Mississippi, and Louisiana that had been adversely affected by the hurricane.1 The
Department of Labor could not, on its own, have taken that action.
One statutory provision is particularly notable in this circumstance because it is not
focused on a specific agency or program. Section 301 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (P.L. 93-288, codified at 42 U.S.C. 5141), says the
following:
1
The Davis-Bacon Act sets certain minimum labor standards for workers employed in federal
contract construction. For more on the act, see CRS Report 94-408, The Davis-Bacon Act:
Institutional Evolution and Public Policy, by William G. Whittaker. For a copy of the
proclamation, see [http://www.whitehouse.gov/news/releases/2005/09/20050908-5.html].
Congressional Research Service ~ The Library of Congress
CRS-2
Any Federal agency charged with the administration of a Federal assistance program
may, if so requested by the applicant State or local authorities, modify or waive, for
a major disaster, such administrative conditions for assistance as would otherwise
prevent the giving of assistance under such programs if the inability to meet such
conditions is a result of a major disaster.
It is unclear how many of the agencies' regulatory waivers in the wake of Hurricane
Katrina were prompted by this provision, because agencies do not always cite the impetus
for or statutory authority underlying their actions.2
Regulatory Waivers and Extensions
The regulatory waivers and extensions listed below were identified by searching the
Federal Register, agencies' websites, and published news accounts, but should not be
considered a compendium of all such waivers. No comprehensive, governmentwide
listing of such actions is currently available, and new waivers are being developed daily.3
The waivers are generally presented in chronological order, and citations to either the
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formal waiver actions or press statements are provided for each.
! On August 30, the Internal Revenue Service (IRS) announced that
taxpayers in the Presidential Disaster Areas struck by Hurricane Katrina
will have until October 31, 2005, to file late tax returns and submit tax
payments without penalties or interest.4
! On August 30, the Environmental Protection Agency (EPA) granted an
emergency fuel waiver for Florida, Louisiana, Alabama, and Mississippi.
Specifically, EPA allowed, until September 15, all parties in the fuel
distribution system to supply gasoline meeting a less stringent, higher
vapor-pressure standard than is usually allowed, and to supply diesel fuel
to the states with a sulfur content greater than previously allowed.5
! On August 31, the Secretary of the Department of Health and Human
Services (HHS) declared a federal public health emergency for Louisiana,
Alabama, Mississippi, and Florida, allowing the Centers for Medicare
and Medicaid Services (CMS) to waive certain requirements under
Medicare, Medicaid, and other federal statutes. Texas was added to the
list on September 4. The Secretary issued a waiver under Section 1135
of the Social Security Act on September 1, 2005. According to press
reports, health care providers providing medical services but unable to
2
For more information on this statute, see CRS Report RL33053, Federal Stafford Act Disaster
Assistance: Presidential Declarations, Eligible Activities, and Funding, by Keith Bea.
3
The Department of Homeland Security compiled a listing of waivers authorized for Hurricane
Katrina response as of September 12, but the listing does not include all such actions. See
[http://www.dhs.gov/dhspublic/interapp/editorial/editorial_0718.xml].
4
For a copy of this waiver, see [http://www.irs.gov/newsroom/article/0,,id=147055,00.html].
5
For a copy of this waiver, see [http://www.epa.gov/katrina/activities.html#aug30waiver].
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comply with certain program requirements will still be paid for their
good-faith services and will be exempt from sanctions for
noncompliance. For example, the waiver suspended the requirement that
doctors and other health care professionals hold licenses in the state in
which they provide services. CMS also reportedly said it will relax
requirements under the State Children's Health Insurance Programs, the
Heath Insurance Portability and Accountability Act, and the Emergency
Medical Treatment and Active Labor Act.6
! On August 31, the Department of Transportation's (DOT) Federal Motor
Carrier Safety Administration (FMCSA) temporarily eased hours of
service regulations until September 14 for certain carriers to allow fuel
transportation services to continue. As a result, covered drivers may
drive longer hours than would otherwise be permitted. Drivers must
have a copy of the Declaration of Regional Emergency in their
possession.7
! EPA said on August 31 that it will waive until September 15 volatility
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and sulfur standards for gasoline and diesel fuels nationwide to ensure
that fuel is available throughout the country, to address public health
issues, and to ensure emergency vehicle supply needs are met.8
! On September 1 and 2, the Federal Communications Commission (FCC)
issued several notices and orders providing telecommunications carriers,
wireless, and satellite operators in Katrina-affected areas more time to
file their regular reports and providing assistance in restoring operations.
For example, FCC granted a 90-day waiver of its rules, through
November 27, to allow carriers and their numbering administrators to
"port" telephone numbers geographically outside of their rate centers. It
also suspended rules (until November 1) that prohibit noncommercial
educational radio and television stations in and around New Orleans from
airing commercial programming. 9
! IRS announced on September 2 that it will not impose a tax penalty when
dyed diesel fuel (normally used for purposes exempt from excise tax,
such as distribution to farmers for farming and to local governments for
busses) is sold for use or used on the highway during the period of
6
See [http://www.cms.hhs.gov/media/press/release.asp?Counter=1546]. For a copy of the Sept.
1, 2005, waiver, see [http://www.cms.hhs.gov/katrina/1135ssa.pdf].
7
See [http://www.fmcsa.dot.gov/about/news/news-releases/2005/083105.htm].
8
EPA also granted gasoline waivers for particular areas (e.g., Richmond, VA, and Atlanta, GA).
F o r mo r e i nf or mat i on on t h e s e a n d t h e n a t i o n w i d e w a i ve r , s e e
[http://www.epa.gov/katrina/waivers.html].
9
For a copy of the Sept. 1 waiver, see
[http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-161A1.pdf]. For the Sept. 2 action,
see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2410A1.pdf].
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expected shortages of clear diesel fuel caused by Hurricane Katrina. The
relief applies until September 15, 2005.10
! The same day, the Department of the Treasury and IRS said they would
waive rules that prohibit owners of low-income housing from providing
housing to victims of the hurricane who do not qualify as low-income.
The waiver suspends income limitation and non-transient requirements
nationwide.11
! On September 2, the Department of Agriculture's Food and Nutrition
Service (FNS) announced a series of Katrina-related waivers in effect
through September 30, 2005. For example, the agency said state
agencies may waive institution application requirements and designate
any appropriate facility as an emergency shelter where significant
numbers of persons are being temporarily housed. Also, households
certified for emergency food stamps are automatically eligible for free
meals in centers or family day care homes.12
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! On September 2, DOT allowed foreign air carriers to participate in
evacuation and relief processes. Specifically, DOT granted exemptions
under 49 U.S.C. 40109 to permit certain air carriers to engage in foreign
air transportation of persons and property (for compensation) between
any point not in the U.S. and any point in the U.S., for the evacuation of
persons from affected areas, and to carry personnel relief supplies in
support of the relief efforts. DOT also granted special authorization
under 14 C.F.R. 375.70 to permit foreign air carriers to carry evacuees
and other persons and relief supplies without charge.13
! On September 2, the Transportation Security Administration granted a
temporary exemption from the requirements for the issuance of a
hazardous materials endorsement in 49 C.F.R. 1572.13(b)(1) in support
of disaster recovery efforts from the effects of Hurricane Katrina. The
exemption is valid through December 1, 2005, and applies only to the
issuance of new endorsements.14
! On September 2, the Securities and Exchange Commission (SEC)
announced that it would soon publish a notice extending the filing
deadlines for those affected by the disaster, and said it was working to
10
See [http://www.irs.gov/newsroom/article/0,,id=147221,00.html].
11
See [http://www.irs.gov/newsroom/article/0,,id=147239,00.html].
12
See [http://www.fns.usda.gov/cnd/Care/Regs-Policy/PolicyMemos/2005-09-02.pdf].
13
See [http://www.dot.gov/katrina/order200591.pdf].
14
Copy available from the author on request.
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ensure that individuals have access to representatives of securities firms
that hold their assets.15
! On September 3, the Forest Service temporarily rescinded the fee
requirement and the 14-day stay limit for 106 campgrounds in certain
forests to assist survivors of Hurricane Katrina.16
! On September 5, the Department of Housing and Urban Development's
(HUD) Assistant Secretary for Community Planning and Development
suspended the requirements of the Housing and Community
Development Act of 1974 that limit expenditures to 15% of the grantee's
most recent CDBG allocation plus program income. The suspension was
available only to grantees for purposes related to Hurricane Katrina
assistance efforts, and communities exercising the waiver were asked to
notify HUD in writing as soon as possible.17
! On September 6, DOT granted carriers licensed under 14 C.F.R. Part 125
emergency exemption authority from the provisions of 14 U.S.C. 4110.
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The exemption will allow those carriers to provide assistance in the
carriage of freight and people affected by Katrina, and the transport into
the affected areas of relief and personnel supplies.18
! On September 7, the Secretary of the Department of Homeland Security
waived "coastwise laws" under the Merchant Marine Act of 1920 (the
"Jones Act") that (among other things) provide that only vessels built and
owned by citizens of the U.S. and flagged in the U.S. can carry
merchandise between U.S. ports. The waiver applies for the
transportation of petroleum and refined petroleum products until
September 19, 2005. The Secretary also waived the coastwise laws
generally for the transportation of petroleum released from the Strategic
Petroleum Reserve.19
! On September 8, the Federal Energy Regulatory Commission (FERC)
announced that it was allowing Katrina-affected transmission providers
to delay compliance with certain reporting requirements until September
30. (Normally, providers are required to report any deviation from
standards of conduct within 24 hours.) FERC also extended until
15
See [http://www.sec.gov/news/press/2005-125.htm].
16
For a copy of the news release accompanying this action, see
[http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1RD?printable=true&contentidonly=tr
ue&contentid=2005/09/0348.xml].
17
See [http://www.hud.gov/offices/cpd/library/katrina/revkatpswaive.pdf].
18
See [http://www.dot.gov/katrina/order200592.pdf].
19
For a copy of this notice, see
[http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/0
5-17829.pdf].
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September 30 any non-statutory deadlines occurring before that date if
participants need those extensions because of the hurricane.20
! On September 8, DOT's Federal Railroad Administration (FRA)
established a temporary emergency relief docket and procedures for
handling petitions for relief from regulatory requirements. FRA said its
existing procedures "do not lend themselves to quick and immediate
decisions" by the agency, and said the emergency procedures (e.g., a 72-
hour comment period on waiver petitions) would be in place for the next
nine months.21
! On September 9, the Department of Education announced an extension
of the deadline dates for specific filing and reporting activities by
educational institutions, applicants, and other parties under certain
assistance programs (e.g., Federal Pell Grants, William D. Ford Federal
Direct Loan program). The new dates (often moving from September 30
to December 1) apply only to institutions or other parties located in
federally declared disaster areas affected by Hurricane Katrina, and
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applicants adversely affected by the hurricane.22
! On September 9, HUD's Assistant Secretary for Public and Indian
Housing extended the September 2 submission deadline date for the
Fiscal Year 2004 HOPE VI Main Street Grants for applicants in Katrina-
affected areas, but only until September 7. (The extension was limited
because funding for this program expires on September 30.)23
! The same day, HUD's Assistant Secretary for Community Planning and
Development waived a number of requirements in connection with the
Department's HOME program (e.g., citizen participation requirements
for consolidated plan amendment, source documentation requirements
for income determination, and rent and property standards for tenant-
based rental assistance).24
20
For a copy of this notice, see
[http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/E
5-4871.pdf].
21
For a copy of this notice, see
[http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/0
5-17840.pdf].
22
For a copy of this notice, see
[http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/0
5-18034.pdf].
23
For a copy of this notice, see
[http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/0
5-17728.pdf].
24
See [http://www.hud.gov/offices/cpd/library/katrina/HOMEwaiver.pdf]. The Assistant
Secretary waived the citizen participation requirements earlier, on Sept. 5, 2005.