[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3418 Enrolled Bill (ENR)]
S.3418
One Hundred Sixteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and twenty
An Act
To amend the Robert T. Stafford Disaster Relief and Emergency Assistance
Act to allow the Administrator of the Federal Emergency Management
Agency to provide capitalization grants to States to establish revolving
funds to provide hazard mitigation assistance to reduce risks from
disasters and natural hazards, and other related environmental harm.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Safeguarding Tomorrow through
Ongoing Risk Mitigation Act'' or the ``STORM Act''.
SEC. 2. GRANTS TO ENTITIES FOR ESTABLISHMENT OF HAZARD MITIGATION
REVOLVING LOAN FUNDS.
Title II of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5131 et seq.) is amended by adding at the end
the following:
``SEC. 205. GRANTS TO ENTITIES FOR ESTABLISHMENT OF HAZARD
MITIGATION REVOLVING LOAN FUNDS.
``(a) General Authority.--
``(1) In general.--The Administrator may enter into agreements
with eligible entities to make capitalization grants to such
entities for the establishment of hazard mitigation revolving loan
funds (referred to in this section as `entity loan funds') for
providing funding assistance to local governments to carry out
eligible projects under this section to reduce disaster risks for
homeowners, businesses, nonprofit organizations, and communities in
order to decrease--
``(A) the loss of life and property;
``(B) the cost of insurance; and
``(C) Federal disaster payments.
``(2) Agreements.--Any agreement entered into under this
section shall require the participating entity to--
``(A) comply with the requirements of this section; and
``(B) use accounting, audit, and fiscal procedures
conforming to generally accepted accounting standards.
``(b) Application.--
``(1) In general.--To be eligible to receive a capitalization
grant under this section, an eligible entity shall submit to the
Administrator an application that includes the following:
``(A) Project proposals comprised of local government
hazard mitigation projects, on the condition that the entity
provides public notice not less than 6 weeks prior to the
submission of an application.
``(B) An assessment of recurring major disaster
vulnerabilities impacting the entity that demonstrates a risk
to life and property.
``(C) A description of how the hazard mitigation plan of
the entity has or has not taken the vulnerabilities described
in subparagraph (B) into account.
``(D) A description about how the projects described in
subparagraph (A) could conform with the hazard mitigation plan
of the entity and of the unit of local government.
``(E) A proposal of the systematic and regional approach to
achieve resilience in a vulnerable area, including impacts to
river basins, river corridors, watersheds, estuaries, bays,
coastal regions, micro-basins, micro-watersheds, ecosystems,
and areas at risk of earthquakes, tsunamis, droughts, severe
storms, and wildfires, including the wildland-urban interface.
``(2) Technical assistance.--The Administrator shall provide
technical assistance to eligible entities for applications under
this section.
``(c) Entity Loan Fund.--
``(1) Establishment of fund.--An entity that receives a
capitalization grant under this section shall establish an entity
loan fund that complies with the requirements of this subsection.
``(2) Fund management.--Except as provided in paragraph (3),
entity loan funds shall--
``(A) be administered by the agency responsible for
emergency management; and
``(B) include only--
``(i) funds provided by a capitalization grant under
this section;
``(ii) repayments of loans under this section to the
entity loan fund; and
``(iii) interest earned on amounts in the entity loan
fund.
``(3) Administration.--A participating entity may combine the
financial administration of the entity loan fund of such entity
with the financial administration of any other revolving fund
established by such entity if the Administrator determines that--
``(A) the capitalization grant, entity share, repayments of
loans, and interest earned on amounts in the entity loan fund
are accounted for separately from other amounts in the
revolving fund; and
``(B) the authority to establish assistance priorities and
carry out oversight activities remains in the control of the
entity agency responsible for emergency management.
``(4) Entity share of funds.--
``(A) In general.--On or before the date on which a
participating entity receives a capitalization grant under this
section, the entity shall deposit into the entity loan fund of
such entity, an amount equal to not less than 10 percent of the
amount of the capitalization grant.
``(B) Reduced grant.--If, with respect to a capitalization
grant under this section, a participating entity deposits in
the entity loan fund of the entity an amount that is less than
10 percent of the total amount of the capitalization grant that
the participating entity would otherwise receive, the
Administrator shall reduce the amount of the capitalization
grant received by the entity to the amount that is 10 times the
amount so deposited.
``(d) Apportionment.--
``(1) In general.--Except as otherwise provided by this
subsection, the Administrator shall apportion funds made available
to carry out this section to entities that have entered into an
agreement under subsection (a)(2) in amounts as determined by the
Administrator.
``(2) Reservation of funds.--The Administrator shall reserve
not more than 2.5 percent of the amount made available to carry out
this section for the Federal Emergency Management Agency for--
``(A) administrative costs incurred in carrying out this
section;
``(B) providing technical assistance to participating
entities under subsection (b)(2); and
``(C) capitalization grants to insular areas under
paragraph (4).
``(3) Priority.--In the apportionment of capitalization grants
under this subsection, the Administrator shall give priority to
entity applications under subsection (b) that--
``(A) propose projects increasing resilience and reducing
risk of harm to natural and built infrastructure;
``(B) involve a partnership between two or more eligible
entities to carry out a project or similar projects;
``(C) take into account regional impacts of hazards on
river basins, river corridors, micro-watersheds, macro-
watersheds, estuaries, lakes, bays, and coastal regions and
areas at risk of earthquakes, tsunamis, droughts, severe
storms, and wildfires, including the wildland-urban interface;
or
``(D) propose projects for the resilience of major economic
sectors or critical national infrastructure, including ports,
global commodity supply chain assets (located within an entity
or within the jurisdiction of local governments, insular areas,
and Indian tribal governments), power and water production and
distribution centers, and bridges and waterways essential to
interstate commerce.
``(4) Insular areas.--
``(A) Apportionment.--From any amount remaining of funds
reserved under paragraph (2), the Administrator may enter into
agreements to provide capitalization grants to insular areas.
``(B) Requirements.--An insular area receiving a
capitalization grant under this section shall comply with the
requirements of this section as applied to participating
entities.
``(e) Environmental Review of Revolving Loan Fund Projects.--The
Administrator may delegate to a participating entity all of the
responsibilities for environmental review, decision making, and action
pursuant to the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.), and other applicable Federal environmental laws
including the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.)
and the National Historic Preservation Act of 1966 (54 U.S.C. 300101 et
seq.) that would apply to the Administrator were the Administrator to
undertake projects under this section as Federal projects so long as
the participating entity carries out such responsibilities in the same
manner and subject to the same requirements as if the Administrator
carried out such responsibilities.
``(f) Use of Funds.--
``(1) Types of assistance.--Amounts deposited in an entity loan
fund, including loan repayments and interest earned on such
amounts, may be used--
``(A) to make loans, on the condition that--
``(i) such loans are made at an interest rate of not
more than 1 percent;
``(ii) annual principal and interest payments will
commence not later than 1 year after completion of any
project and all loans made under this subparagraph will be
fully amortized--
``(I) not later than 20 years after the date on
which the project is completed; or
``(II) for projects in a low-income geographic
area, not later than 30 years after the date on which
the project is completed and not longer than the
expected design life of the project;
``(iii) the loan recipient of a loan under this
subparagraph establishes a dedicated source of revenue for
repayment of the loan;
``(iv) the loan recipient of a loan under this
subparagraph has a hazard mitigation plan that has been
approved by the Administrator; and
``(v) the entity loan fund will be credited with all
payments of principal and interest on all loans made under
this subparagraph;
``(B) for mitigation efforts, in addition to mitigation
planning under section 322 not to exceed 10 percent of the
capitalization grants made to the participating entity in a
fiscal year;
``(C) for the reasonable costs of administering the fund
and conducting activities under this section, except that such
amounts shall not exceed $100,000 per year, 2 percent of the
capitalization grants made to the participating entity in a
fiscal year, or 1 percent of the value of the entity loan fund,
whichever amount is greatest, plus the amount of any fees
collected by the entity for such purpose regardless of the
source; and
``(D) to earn interest on the entity loan fund.
``(2) Prohibition on determination that loan is a
duplication.--In carrying out this section, the Administrator may
not determine that a loan is a duplication of assistance or
programs under this Act.
``(3) Projects and activities eligible for assistance.--Except
as provided in this subsection, a participating entity may use
funds in the entity loan fund to provide financial assistance for
projects or activities that mitigate the impacts of natural hazards
including--
``(A) drought and prolonged episodes of intense heat;
``(B) severe storms, including hurricanes, tornados, wind
storms, cyclones, and severe winter storms;
``(C) wildfires;
``(D) earthquakes;
``(E) flooding, including the construction, repair, or
replacement of a non-Federal levee or other flood control
structure, provided that the Administrator, in consultation
with the Army Corps of Engineers (if appropriate), requires an
eligible entity to determine that such levee or structure is
designed, constructed, and maintained in accordance with sound
engineering practices and standards equivalent to the purpose
for which such levee or structure is intended;
``(F) shoreline erosion;
``(G) high water levels; and
``(H) storm surges.
``(4) Zoning and land use planning changes.--A participating
entity may use not more than 10 percent of a capitalization grant
under this section to enable units of local government to implement
zoning and land use planning changes focused on--
``(A) the development and improvement of zoning and land
use codes that incentivize and encourage low-impact
development, resilient wildland-urban interface land management
and development, natural infrastructure, green stormwater
management, conservation areas adjacent to floodplains,
implementation of watershed or greenway master plans, and
reconnection of floodplains;
``(B) the study and creation of agricultural risk
compensation districts where there is a desire to remove or
set-back levees protecting highly developed agricultural land
to mitigate for flooding, allowing agricultural producers to
receive compensation for assuming greater flood risk that would
alleviate flood exposure to population centers and areas with
critical national infrastructure;
``(C) the study and creation of land use incentives that
reward developers for greater reliance on low impact
development stormwater best management practices, exchange
density increases for increased open space and improvement of
neighborhood catch basins to mitigate urban flooding, reward
developers for including and augmenting natural infrastructure
adjacent to and around building projects without reliance on
increased sprawl, and reward developers for addressing wildfire
ignition; and
``(D) the study and creation of an erosion response plan
that accommodates river, lake, forest, plains, and ocean
shoreline retreating or bluff stabilization due to increased
flooding and disaster impacts.
``(5) Establishing and carrying out building code
enforcement.--A participating entity may use capitalization grants
under this section to enable units of local government to establish
and carry out the latest published editions of relevant building
codes, specifications, and standards for the purpose of protecting
the health, safety, and general welfare of the building's users
against disasters and natural hazards.
``(6) Administrative and technical costs.--For each fiscal
year, a participating entity may use the amount described in
paragraph (1)(C) to--
``(A) pay the reasonable costs of administering the
programs under this section, including the cost of establishing
an entity loan fund; and
``(B) provide technical assistance to recipients of
financial assistance from the entity loan fund, on the
condition that such technical assistance does not exceed 5
percent of the capitalization grant made to such entity.
``(7) Limitation for single projects.--A participating entity
may not provide an amount equal to or more than $5,000,000 to a
single hazard mitigation project.
``(8) Requirements.--For fiscal year 2022 and each fiscal year
thereafter, the requirements of subchapter IV of chapter 31 of
title 40, United States Code, shall apply to the construction of
projects carried out in whole or in part with assistance made
available by an entity loan fund authorized by this section.
``(g) Intended Use Plans.--
``(1) In general.--After providing for public comment and
review, and consultation with appropriate government agencies of
the State or Indian tribal government, Federal agencies, and
interest groups, each participating entity shall annually prepare
and submit to the Administrator a plan identifying the intended
uses of the entity loan fund.
``(2) Contents of plan.--An entity intended use plan prepared
under paragraph (1) shall include--
``(A) the integration of entity planning efforts, including
entity hazard mitigation plans and other programs and
initiatives relating to mitigation of major disasters carried
out by such entity;
``(B) an explanation of the mitigation and resiliency
benefits the entity intends to achieve by--
``(i) reducing future damage and loss associated with
hazards;
``(ii) reducing the number of severe repetitive loss
structures and repetitive loss structures in the entity;
``(iii) decreasing the number of insurance claims in
the entity from injuries resulting from major disasters or
other natural hazards; and
``(iv) increasing the rating under the community rating
system under section 1315(b) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4022(b)) for communities
in the entity;
``(C) information on the availability of, and application
process for, financial assistance from the entity loan fund of
such entity;
``(D) the criteria and methods established for the
distribution of funds;
``(E) the amount of financial assistance that the entity
anticipates apportioning;
``(F) the expected terms of the assistance provided from
the entity loan fund; and
``(G) a description of the financial status of the entity
loan fund, including short-term and long-term goals for the
fund.
``(h) Audits, Reports, Publications, and Oversight.--
``(1) Biennial entity audit and report.--Beginning not later
than the last day of the second fiscal year after the receipt of
payments under this section, and biennially thereafter, any
participating entity shall--
``(A) conduct an audit of the entity loan fund established
under subsection (c); and
``(B) provide to the Administrator a report including--
``(i) the result of any such audit; and
``(ii) a review of the effectiveness of the entity loan
fund of the entity with respect to meeting the goals and
intended benefits described in the intended use plan
submitted by the entity under subsection (g).
``(2) Publication.--A participating entity shall publish and
periodically update information about all projects receiving
funding from the entity loan fund of such entity, including--
``(A) the location of the project;
``(B) the type and amount of assistance provided from the
entity loan fund;
``(C) the expected funding schedule; and
``(D) the anticipated date of completion of the project.
``(3) Oversight.--
``(A) In general.--The Administrator shall, at least every
4 years, conduct reviews and audits as may be determined
necessary or appropriate by the Administrator to carry out the
objectives of this section and determine the effectiveness of
the fund in reducing natural hazard risk.
``(B) GAO requirements.--A participating entity shall
conduct audits under paragraph (1) in accordance with the
auditing procedures of the Government Accountability Office,
including generally accepted government auditing standards.
``(C) Recommendations by administrator.--The Administrator
may at any time make recommendations for or require specific
changes to an entity loan fund in order to improve the
effectiveness of the fund.
``(i) Regulations or Guidance.--The Administrator shall issue such
regulations or guidance as are necessary to--
``(1) ensure that each participating entity uses funds as
efficiently as possible;
``(2) reduce waste, fraud, and abuse to the maximum extent
possible; and
``(3) require any party that receives funds directly or
indirectly under this section, including a participating entity and
a recipient of amounts from an entity loan fund, to use procedures
with respect to the management of the funds that conform to
generally accepted accounting standards.
``(j) Waiver Authority.--Until such time as the Administrator
issues final regulations to implement this section, the Administrator
may--
``(1) waive notice and comment rulemaking, if the Administrator
determines the waiver is necessary to expeditiously implement this
section; and
``(2) provide capitalization grants under this section as a
pilot program.
``(k) Liability Protections.--The Agency shall not be liable for
any claim based on the exercise or performance of, or the failure to
exercise or perform, a discretionary function or duty by the Agency, or
an employee of the Agency in carrying out this section.
``(l) GAO Report.--Not later than 1 year after the date on which
the first entity loan fund is established under subsection (c), the
Comptroller General of the United States shall submit to the Committee
on Homeland Security and Governmental Affairs of the Senate and the
Committee on Transportation and Infrastructure of the House of
Representatives a report that examines--
``(1) the appropriateness of regulations and guidance issued by
the Administrator for the program, including any oversight of the
program;
``(2) a description of the number of the entity loan funds
established, the projects funded from such entity loan funds, and
the extent to which projects funded by the loan funds adhere to any
applicable hazard mitigation plans;
``(3) the effectiveness of the entity loan funds to lower
disaster related costs; and
``(4) recommendations for improving the administration of
entity loan funds.
``(m) Definitions.--In this section, the following definitions
apply:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Federal Emergency Management Agency.
``(2) Agency.--The term `Agency' means the Federal Emergency
Management Agency.
``(3) Eligible entity.--The term `eligible entity' means--
``(A) a State; or
``(B) an Indian tribal government that has received a major
disaster declaration during the 5-year period ending on the
date of enactment of the STORM Act.
``(4) Hazard mitigation plan.--The term `hazard mitigation
plan' means a mitigation plan submitted under section 322.
``(5) Insular area.--The term `insular area' means Guam,
American Samoa, the Commonwealth of the Northern Mariana Islands,
and the United States Virgin Islands.
``(6) Low-income geographic area.--The term `low-income
geographic area' means an area described in paragraph (1) or (2) of
section 301(a) of the Public Works and Economic Development Act of
1965 (42 U.S.C. 3161(a)).
``(7) Participating entity.--The term `participating entity'
means an eligible entity that has entered into an agreement under
this section.
``(8) Repetitive loss structure.--The term `repetitive loss
structure' has the meaning given the term in section 1370 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4121).
``(9) Severe repetitive loss structure.--The term `severe
repetitive loss structure' has the meaning given the term in
section 1366(h) of the National Flood Insurance Act of 1968 (42
U.S.C. 4104c(h)).
``(10) State.--The term `State' means any State of the United
States, the District of Columbia, and Puerto Rico.
``(11) Wildland-urban interface.--The term `wildland-urban
interface' has the meaning given the term in section 101 of the
Healthy Forests Restoration Act of 2003 (16 U.S.C. 6511).
``(n) Authorization of Appropriations.--There are authorized to be
appropriated $100,000,000 for each of fiscal years 2022 through 2023 to
carry out this section.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.