Conflicting Federal Policies Complicate Flood Insurance and Safety Measures for Communities
Conflicting federal policies are creating significant challenges for residents in flood-prone areas, potentially leading to higher flood insurance costs or inadequate awareness of risks posed by upstream dams, according to an Associated Press review of federal records and data.
The issue arises from a tangled web of flood management policies and national security measures implemented following the September 11, 2001, terrorist attacks. To qualify for optimal discounts on flood insurance, the Federal Emergency Management Agency (FEMA) requires communities to identify all homes, businesses, and critical facilities at risk from potential dam failures and to communicate these risks to the public. However, this task is complicated by restrictions from other federal agencies that limit the release of dam-related information due to security concerns.
This longstanding problem, despite being flagged to federal officials, remains unresolved. A January 2020 presentation to FEMA’s National Dam Safety Review Board highlighted that current dam information-sharing procedures lead to reduced scores for communities in FEMA’s rating system, increased insurance costs for homeowners, and potentially compromised public safety.
In response to this issue, the U.S. Army Corps of Engineers has begun to publicly share maps indicating areas at risk from dam failures. However, similar transparency is lacking from other agencies, such as the Federal Energy Regulatory Commission (FERC), which oversees about 1,800 power-generating dams, and the U.S. Bureau of Reclamation, which manages approximately 430 dams in the western U.S. The Bureau of Reclamation plans to enhance its information-sharing policies by 2025, though it acknowledges that complete implementation may take over eight years.
FEMA is currently soliciting public comments on potential updates to its Community Rating System, which offers flood insurance discounts to communities that proactively manage flood risks. During a recent FEMA hearing, Phoenix’s floodplain administrator, Nazar Nabaty, criticized the conflicting federal policies that hinder efforts to secure better insurance discounts for residents.
Sacramento, California, a city with significant flood risks due to its proximity to major dams like the Folsom Dam, has also struggled with these information-sharing restrictions. Despite achieving a high score in FEMA’s rating system, Sacramento County was unable to secure top insurance discounts due to restricted information about potential dam failures.
The complexity of obtaining and using dam inundation data can result in missed insurance discounts, costing homeowners around $100 annually and potentially leading to millions in additional costs citywide. Beyond financial implications, the lack of information can prevent residents from being adequately informed about the dangers of living near dams.
As climate change increases the frequency and severity of storms, which in turn heightens the risk of dam failures, the urgency of addressing these policy conflicts becomes more critical. Since 2000, floods in the U.S. have caused approximately $108 billion in damage, underscoring the need for effective flood risk management.
FEMA’s National Flood Insurance Program, available in nearly 23,000 communities, provides coverage to about 4.7 million policyholders. The Community Rating System, established in 1990, incentivizes flood risk reduction with premium discounts ranging from 5% to 45%. However, only 1,500 communities participate in this voluntary program, with only two—Roseville, California, and Tulsa, Oklahoma—achieving the highest discount level.
Roseville managed to meet the requirements for some federal agencies by creating its own inundation maps. Still, it faced difficulties in sharing this information due to federal restrictions. The city’s solution involved presenting combined flood potential data without specifying individual dam failures, a strategy not feasible for many jurisdictions.
Security concerns, heightened post-9/11, continue to influence federal policies on dam information sharing. The Federal Energy Regulatory Commission and the Bureau of Reclamation have both implemented non-disclosure agreements for dam inundation data, although the Army Corps of Engineers has begun releasing such information online after reassessing the risks.
FEMA’s efforts to update the Community Rating System and improve flood risk communication are ongoing, with no anticipated changes until 2026. Meanwhile, some local officials argue that the system’s complexity and costs are prohibitive, and that more straightforward, actionable information could enhance community safety and insurance affordability.
For communities like Thurston County, Washington, and Bucoda, the challenges of navigating these policies can lead to substantial financial and safety impacts. The high costs of flood insurance and the difficulties in accessing vital safety information highlight the need for improved coordination and transparency among federal agencies to better protect at-risk communities.