[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3418 Engrossed in Senate (ES)]

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116th CONGRESS
  2d Session
                                S. 3418

_______________________________________________________________________

                                 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.''.

            Passed the Senate December 9, 2020.

            Attest:

                                                             Secretary.
116th CONGRESS

  2d Session

                                S. 3418

_______________________________________________________________________

                                 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.