NU Online News Service, Sept. 8, 3:08 p.m.EDT

Legislation reauthorizing the National Flood Insurance Programuntil Sept. 30, 2016 was reported to the Senate floor today by theSenate Banking Committee.

It appears that it is so different from the House bill that afinal bill, passed by both houses of Congress and signed by thepresident by Sept. 30, may be in jeopardy.

Key provisions include mandating a phase-out of subsidies at amuch quicker pace than called for in the companion House bill.

At the same time, the final bill deletes a provision containedin an earlier draft that would have forgiven the program's debt.The debt-forgiveness provision was removed earlier this week,according to several industry officials.

Currently, according to a March 2011 analysis by the GovernmentAccountability Office, the program is running a $17.8 billiondeficit.

The bill has strong bipartisan support and was drafted by thecommittee leadership, Sen. Tim Johnson, D-S.D., chairman of thecommittee, and Sen. Richard Shelby, R-Ala., ranking minority memberof the Senate panel.

Johnson, Shelby and Sen. Roger Wicker, R-Miss., entered into anagreement to work on further changes to Wicker's COASTAL Act amendment as the legislation moves to theSenate floor.

The amendment would split the difference on the sensitive"wind-vs.-water" issue and create a "standardized loss-allocation"system to distribute losses between the National Flood InsuranceProgram and private or residual-market wind insurers following thetotal loss of any property that carries both flood and windcoverage.

The committee adopted amendments by Senator Mike Johanns,R-Neb., which requires the GAO to study low-participation rates ofNative Americans on tribal lands, and an amendment by Sen. JerryMoran, R-Kansas, to provide relief to communities behindlevees.

It gives the Federal Emergency Management Agency (FEMA) greatleeway in setting rates, especially in areas subject to mandatedflood insurance through new mapping.

Another provision would require FEMA to tighten its controlsover the Write-Your-Own program, which has been heavily criticizedby the GAO as poorly managed.

The Johnson-Shelby bill does not add business interruption andadditional living expenses to the program. Those provisions wereadded to the House bill during the amendment process and survivedan effort by Rep. Jeff Flake, R-Ariz., to delete them during theHouse flood debate.

A maximum four-year phase-in of actuarial rates would berequired under the Shelby bill. By contrast, the House bill isquite different, phasing in actuarial rates five years.

At the same time, the Shelby bill adds a requirement for FEMA toallow customers that do not already have their premiums escrowedevery month to pay their policies in installments, "providing amore affordable option for consumers purchasing insurance." TheHouse bill allows quarterly payments for people whose premiums arenot escrowed.

Currently, FEMA requires a single, annual payment.

The Senate bill would also allow FEMA to raise rates up to 15percent annually; the House bill limits annual increases to 10percent.

And while the House bill calls for a strong local role inremapping, the Shelby Senate bill would leave the matter toprofessionals.

The Senate bill does include a provision added by amendment tothe House bill that requires FEMA to set up a reserve fund aimed atensuring that the NFIP has the ability to pay off losses duringheavy flood periods.