NU Online News Service, July 21, 2:01 p.m.EDT

An intense effort is underway to have the Senate BankingCommittee drop a provision in flood-insurance legislation thatwould require homeowners and businesses to purchase federal floodinsurance even if their properties are protected by levees.

A letter from the 13 senators of both parties contends that amandatory purchase requirement for those protected by healthyflood-control infrastructure inequitably targets only particulartypes of flood risk.

“Areas protected by properly constructed and maintained levees,dams, and other flood control infrastructure should not bearbitrarily declared areas of special flood hazard,” the lettersays.

Some outside observers, however, disagree. Ray Lehmann, a vicepresident of the Heartland Institute, which consults with theinsurance industry on catastrophe issues, says levees and othermitigation structures sometimes fail, and it is irresponsiblepublic policy not to recognize this reality.

“We saw the devastating consequence of doing so mostacutely in the wake of Hurricane Katrina, when scores of homeownersfound they were inadequately insured because they faced norequirement to purchase flood protection,” Lehmann says.

“While we are sympathetic to the senators' concerns, the reformlegislation already includes creation of a public commission toassess the strength and viability of mitigation structures, andthat information should be used to set rates commensurate with theresidual risks faced by those who live behind such structures,” headds.

The senators' letter asks Senate Banking Committee leadership toremove the provision in the Senate's version of a long-term NFIPextension, “The Flood Insurance Reform and Modernization Act.”

The bill passed the committee Sept. 8, but floor action has beenheld up because the Senate leadership of both parties are using thebill as an engine to attach unrelated provisions.

The problem with that, according to industry lobbyists, is thatthe unrelated provisions are controversial, or at least opposed byeither Democrats or Republicans.

Both the Senate bill, and the House bill, H.R. 1309, the FloodInsurance Reform Act of 2011, would extend the NFIP until Sept. 30,2016.

The letter was sent to Senators Tim Johnson, D-S.D. and RichardShelby, R-Ala., the chairman and ranking member, respectively, ofthe Senate Banking Committee.

The lead signers are Sen. Thad Cochran, R-Miss., and Mark Pryor,D-Ark. Others who signed include Senators Roy Blunt, R-Mo.,John Boozman, R-Ark., Kent Conrad, D-N.D., John Cornyn, R-Texas,Mike Enzi, R-Wyo., Al Franken, D-Minn., Kay Bailey Hutchison,R-Texas, Amy Klobuchar, D-Minn., Claire McCaskill, D-Mo., PatRoberts, R-Kan. and Ron Wyden, D-Ore.