[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3418 Reported in Senate (RS)]
<DOC>
Calendar No. 511
116th CONGRESS
2d Session
S. 3418
[Report No. 116-249]
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 9, 2020
Mr. Peters (for himself, Mr. Johnson, Mr. Lankford, and Ms. Stabenow)
introduced the following bill; which was read twice and referred to the
Committee on Homeland Security and Governmental Affairs
August 10, 2020
Reported by Mr. Johnson, with amendments
[Omit the part struck through and insert the part printed in italic]
_______________________________________________________________________
A BILL
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 of 2020'' 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 risk 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, and wildfires.
``(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, and wildfires; 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 tribal 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 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 (16 U.S.C. 470 et seq.) (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 carry 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;
``(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 s 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.
``(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 Tribe, 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 such the entity loan fund
established under subsection (b) (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 (f) (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.--The 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) Liability Protections.--The Federal Emergency Management
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.
``(k) 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 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.
``(l) Authorization of Appropriations.--There are authorized to be
appropriated $100,000,000 for each of fiscal years 2021 through 2023 to
carry out this section.''.
Calendar No. 511
116th CONGRESS
2d Session
S. 3418
[Report No. 116-249]
_______________________________________________________________________
A BILL
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.
_______________________________________________________________________
August 10, 2020
Reported with amendments