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are laws and/or policies that are aimed at reducing damage to the private sector and accelerating post-
               earthquake economic recovery.” The commission added that:

                  It is imperative that appropriate policies be adopted and implemented so that California's
                  businesses and industries … can recover rapidly from any damage they may incur as a
                  result of the next major earthquake. The failure to do so can result in California's economy
                  taking a severe blow, both due to small businesses not being able to recover and
                  reestablish themselves and by larger companies relocating to other states or even
                                                                              xi
                  countries which are constantly attempting to lure them away.

                                                                        A lot has been learned from earthquake
                                                              1
                     HAZUS Annualized Earthquake Loss (AEL)
                                                                        models since the Northridge quake. We
                 Rank              Region              AEL in millions   now understand much more about
                   1             Los Angeles             $1,312.3       seismicity, ground motion and

                   2            San Francisco            $781.0         engineering, and these advances in
                                                                        technology have allowed us to identify
                   3       Riverside/San Bernardino      $396.5
                                                                        threats based not only on geography –
                   4               San Jose              $276.7         i.e., proximity to fault lines and soil

                   5               Seattle               $243.9         composition – but also by building
                                                                                      xii
                   6              San Diego              $155.2         characteristics.
                   7              Portland               $137.1         The Federal Emergency Management
                   8               Oxnard                $111.0         Agency has adopted Geographic
                                                                        Information System (GIS) technology to
                   9         Santa Rosa/Petaluma          $68.6
                                                                        estimate physical, economic and social
                   10           St. Louis, MO             $58.5         impacts of disasters such as
                                                                        earthquakes. This nationally applied
               standard, called HAZUS, has put Los Angeles at the top of the list for annualized earthquake damage
                                  xiii
               from an earthquake.  These calculations are based on seismic hazard, the likelihood of damage to
               buildings and other structures and direct and indirect losses resulting from this damage.

               Seismic retrofitting of vulnerable structures is critical to reducing risk, a Federal Emergency
                                              xiv
               Management Agency study found.

               “It’s important for protecting the lives and assets of building occupants and the continuity of their
               work,” FEMA reported. “On the whole, communities with more retrofitted structures can recover from
               earthquakes more rapidly.”
               It’s not just a matter of saving lives, guarding against injury and preserving property. In instances where
               an earthquake of significant magnitude causes widespread damage to buildings, the federal agency
               found, retrofits can protect against economic devastation as well.










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