NU Online News Service, May 15, 3:15 p.m.EDT

Rep. Judy Biggert, R-Ill., plans to introduce a bill in theHouse that would extend the National Flood Insurance Program forone month, pushing the program's expiration date back to June30.

The bill does not have a number yet.

Mike Becker, assistant vice president, federal affairs for theNational Association of Professional Insurance Agents, says theone-month extension could allow for additional time for the Senateto act on a longer-term extension.

Separate industry sources also say the bill is aimed at buyingmore time for Senate action on a long-term extension. One sourceadds that the House, which has already passed a five-year NFIPextension with reforms, is trying to pressure the Senate to do thesame.

The source notes that the Senate is getting pressure fromelsewhere as well. The insurance industry joined other industries in an effort called "Flood the Hill"designed to get an NFIP extension done, and Senators David Vitter,R-La., and Jon Tester, D-Mont. held a hearing last week to discussthe program.

Biggert's one-month extension would be one of severalNFIP-extension plans proposed. The industry has expressed the mostsupport for a five-year extension with reforms, although theindustry source says the top priority is avoiding a lapse in theprogram.

The Federal Emergency Management Agency has proposed a two-year extension that would give Congress time toflesh out meaningful reforms. However, MattGannon, assistant vice president of federalaffairs for the National Association of Mutual InsuranceCompanies, says that plan is not in play, as the House is seekingto "keep the Senate's feet to the fire," and so is unwilling to doa mid-term extension that would push the issue into the background.For the same reason, Gannon says a Vitter proposal that would extend the current program toDecember is also off the table for the Senate.

Aside from a one-month extension, Biggert's bill wouldincorporate some aspects of the House's longer-term extension bill.For example, the bill would require FEMA and theGovernment Accountability Office to conduct separate studies to"assess a broad range of options, methods and strategies forprivatizing the national flood insurance program."

A separate requirement calls on FEMA to "assess the capacity ofthe private reinsurance, capital, and financial markets by seekingproposals to assume a portion of the program's insurance risk."

Gannon says this is part of the House's strategy. He explainsthat the House is only willing to do temporary extensions on ashort-term basis, and only if they include incremental reforms.Biggert's bill does both.

The Senate leadership, however, is not in favor of such aprocess, Gannon notes. He says the House will likely pass Biggert'sbill, but the Senate may look for just a clean 30-day extensionwithout the reforms.

Or, Gannon says, the Senate could vote on its five-yearextension bill, prompting the House to pass a clean 30-dayextension while the House and Senate reconcile their long-termextensions.

Gannon says a long-term extension is close. He says in theSenate, both Republicans and Democrats have signaled support for along-term extension with reforms. "That's the frustration," hesays, regarding the reality that an extension has not happened yet."There are people on both sides of the aisle…that support a reformbill."

Regarding Biggert's expected bill, Becker says, "PIA shares Rep.Biggert's frustrations. We are so close to getting what is reallyneeded, a five-year reauthorization with reforms."

He adds that Vitter, who "is a strong supporter of a five-yearreauthorization," has filed one-month and two-month extension billsas part of the same effort to allow the Senate more time to act ona longer extension.

"While a one- or two-month extension will also keep the issue infront of Congress, PIA's main objective remains seeing a long termbill enacted," Becker says.

Ben McKay, senior vice president of federal government relationsfor the Property Casualty Insurers Association of America, says heis glad the House is moving to prevent a lapse on May 31. But headds, "However, this patch does not alleviate the need for Congressto refocus on passing a long-term reauthorization and reform billas soon as possible.

"We applaud Senators Tester and Vitter for convening a hearinglast week in the Senate to underscore the urgency of a long-termsolution for the flood program," adds McKay. "Now, we urge theSenate to make the NFIP reauthorization and reform bill a toppriority when they return after Memorial Day and we enter intohurricane season."

Gannon says the insurance and real estate industries will bemaking the case over the near term about what a lapse would meanfor the already struggling real estate market.