STATE OF CALIFORNIA Budget Change Proposal - Cover Sheet DF-46 (REV 10/20) Fiscal Year Business Unit Department Priority No. 2021-22 0690 Governor’s Office of Emergency Services Budget Request Name Program Subprogram 0690-111-BCP-2021-MR 0385-Special Programs and Grant Management Budget Request Description Long Term Recovery Support Budget Request Summary The Governor’s Office of Emergency Services requests $37.818 million ongoing ($22.128 million Federal Fund and $15.690 million General Fund) to support the increasing workload associated with long-term recovery efforts. This includes permanent funding to support 104 permanent positions provided in 2018-19 with three-year funding and 110 new positions. Requires Legislation Code Section(s) to be Added/Amended/Repealed ☐ Yes ☒ No Does this BCP contain information technology Department CIO Date (IT) components? ☐ Yes ☒ No If yes, departmental Chief Information Officer must sign. For IT requests, specify the project number, the most recent project approval document (FSR, SPR, S1BA, S2AA, S3SD, S4PRA), and the approval date. Project No.Click or tap here to enter text. Project Approval Document: Approval Date: If proposal affects another department, does other department concur with proposal? ☐ Yes ☐ No Attach comments of affected department, signed and dated by the department director or designee. Prepared By Date Reviewed By Date Budget Office 5/14/2021 Heather Carlson 5/14/2021 Department Director Date Agency Secretary Date Lisa Ann L. Mangat 5/14/2021 Department of Finance Use Only Additional Review: ☐ Capital Outlay ☐ ITCU ☐ FSCU ☐ OSAE ☐ Dept. of Technology PPBA Date submitted to the Legislature Stephen Benson 5/14/2021 A. Budget Request Summary The Governor’s Office of Emergency Services (Cal OES) requests $37.818 million ongoing ($22.128 million Federal Fund and $15.690 million General Fund) to support the increasing workload associated with long-term recovery efforts. This includes permanent funding to support 104 permanent positions provided in 2018-19 with three-year funding and 110 new positions. B. Background/History Over the past 5 years, the state has experienced an unprecedented number of emergencies and disasters—including severe drought, catastrophic wildfires, power grid/outage challenges, earthquakes, intensive storms with severe flooding, civil unrest, and COVID-19. In fact, 15 of the most destructive fires in the state’s history have occurred since 2015 and five of the six most destructive fires in state history occurred in August and September of 2020. California will be recovering from these complex disasters for at least the next decade, while continuing to respond to and recover from future disasters. The recovery phase of a disaster starts during response but can take many years and even decades to complete depending on the severity of the event. Immediately after a federal disaster, the Recovery Directorate (Recovery) provides staffing and management for the Joint Field Office (JFO) that is established to ensure coordination with the Federal Emergency Management Agency (FEMA). In addition to assisting local and tribal governments, special districts, certain private nonprofit organizations, individuals, businesses, and agricultural communities impacted by disasters, Recovery supports state agencies and local governments in receiving FEMA reimbursement for emergency protective measures, response, and recovery for each disaster. This helps state agencies and local entities recoup the costs of emergency services and ensures they can continue providing regular programmatic services. Recovery acts as the recipient for all federal grants and all the entities Recovery serves statewide are “subrecipients.” Recovery also prepares and coordinates recovery and mitigation efforts through projects, provides grants for mitigation of future hazards and threats, and supports California communities before, during, and after disasters. Figure 1, below, shows the number of federally declared disasters in California1. As shown in Figure 1, the number of all federally declared disasters in California has increased over the last 17 fiscal years. Since the beginning of 2018-19, Cal OES has responded to a total of 57 federal and state disasters. That increase is anticipated to continue because of climate change, longer wildfire season, and earthquake history. Recovery must continue to help California communities rebuild structures and the economy and mitigate future disasters. 1 Includes Fire Management Assistance Grants (FMAGs), Emergency Declarations, and Major Disaster Declarations (DRs) Analysis of Problem Figure 1: Federal Disaster Declarations Figure 1 Table: Federal Disaster Declarations Fiscal Year Fire Health Earthquake Storms Other Total 2003 4 0 1 0 1 6 2004 17 0 0 2 0 19 2005 8 0 0 2 1 11 2006 12 0 0 0 1 13 2007 12 0 0 0 0 12 2008 6 0 0 0 0 6 2009 9 0 1 1 0 11 2010 6 0 1 1 0 8 2011 4 0 0 0 0 4 2012 6 0 0 0 0 6 2013 8 0 0 0 0 8 2014 13 0 1 0 0 14 2015 10 0 0 0 0 10 2016 9 0 0 4 0 13 2017 28 0 0 0 0 28 2018 14 0 0 2 0 16 2019 10 2 1 0 0 13 2020 21 0 0 0 0 21 Recovery’s three sections: Interagency Recovery Coordination (IRC), Recovery Operations, and Hazard Mitigation are collectively responsible for administering billions of dollars in state and federal grant funds made available to hundreds of eligible jurisdictions and subrecipients statewide. Recovery currently manages one state and ten different federal funding sources for past disasters and non-disaster grant programs. The $6.6 billion in funds currently awarded to California and obligated on behalf of the subrecipients for all open disasters spanning the last decade include: Analysis of Problem • $4.9 billion: FEMA – Public Assistance Program (PA) Funds any emergency or permanent work for a building, public works, system, equipment, or natural feature. Eligible costs include labor, equipment, materials, contract work, as well as direct and indirect administrative costs. • $756.6 million: FEMA – Hazard Mitigation Grant Program (HMGP) Funds any sustainable action that reduces or eliminates long-term risk to people and property from future natural hazard events or disasters. • $702.9 million: Cal OES – California Disaster Assistance Act (CDAA) Grants Similar to FEMA PA grants, funds emergency and permanent work with state funds. This is for state-only disasters that did not reach the threshold for federal declaration or the state match for federal funds. • $493.9 million: FEMA – Fire Management Assistance Grants (FMAG) Funds 75 percent of the mitigation, management, and control of fires on publicly or privately owned forests or grasslands, which threaten such destruction as would constitute a major disaster. The FMAG grants can be federally funded only or as a combination of federal and state funding. • $27 million: FEMA – Pre-Disaster Mitigation (PDM) Grants Funds hazard mitigation projects, reducing the risks they face from disasters and natural hazards. This pertains to PDM grants that are still open. BRIC, noted below is replacing this program going forward. • $6.7 million: US Department of Health and Human Services Immediate Services Program (ISP) Grant Provides immediate, short-term disaster relief and crisis counseling services for up to 60 days after a major disaster declaration. • $3.5 million: FEMA – Legislative Pre-Disaster Mitigation (L-PDM) Funds cost-effective hazard mitigation activities that complement comprehensive mitigation programs, and reduce injuries, loss of life, and damage and destruction of property. L-PDM is a pre-disaster grant program. L-PDM funding is the same as the ear marked funding that will be provided this year. • $3 million: FEMA – Flood Mitigation Assistance (FMA) Grants Funds projects that reduce or eliminate the risk of repetitive flood damage to buildings insured by the National Flood Insurance Program. • $263,000: FEMA – National Earthquake Hazards Reduction Program (NEHRP) NEHRP is a pre-disaster grant program to reduce the human, economic, and societal losses caused by earthquakes. • $206,000: US Department of Transportation Hazardous Materials Emergency Preparedness (HMEP) Grants Allows grantees the flexibility to implement training and planning programs that address differing needs for each location based on demographics, emergency response capabilities, commodity flow studies, and hazard analysis. • FEMA – Building Resilient Infrastructure and Communities (BRIC) Grants New program. Application review still in process. California submitted 29 projects to the national competition for $343 million. Each state is guaranteed $600,000, and the total available funding is $500 million. BRIC funding available in future years is expected to increase substantially. As noted above BRIC is replacing the PDM grants. Additionally, Cal OES advocates for individuals and households that are eligible for direct federal funding and facilitates coordination between these individuals and appropriate federal agencies. One example is the Individuals and Households Program (IHP) from FEMA, Analysis of Problem which provides financial and other services directly to eligible individuals and households affected by a disaster, who have uninsured or under-insured necessary expenses and serious needs. The PA recovery and mitigation federal funding streams are extraordinarily complex and follow a set of phases known as the Grants Management Life Cycle. Depending on the grant, the Grants Management Life cycle can take years to complete. The following outlines the phases for a FEMA grant as an example: • Pre-Award: After a disaster, initial assessments take place before California can apply for federal funds. During the first 30 days after a declaration, Cal OES PA works with the subrecipients and FEMA to develop the award package for a grant. Cal OES provides an extensive series of trainings and applicant briefings to ensure projects are viable and will maximize federal funding. If the events do not qualify for federal funds, the data is used for state-funded projects. In Hazard Mitigation Assistance (HMA) program the technical assistance and program outreach represents a significant portion of pre grant work and can take approximately nine months.