[Congressional Record Volume 166, Number 208 (Wednesday, December 9, 2020)]
[Senate]
[Pages S7375-S7377]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   SAFEGUARDING TOMORROW THROUGH ONGOING RISK MITIGATION ACT OF 2020

  Mr. INHOFE. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 511, S. 3418.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The senior assistant legislative clerk read as follows:

       A bill (S. 3418) 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.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Homeland Security and 
Governmental Affairs with an amendment as follows:
  (The parts of the bill intended to be stricken are shown in boldface 
brackets and the parts of the bill intended to be inserted are shown in 
italics.

                                S. 3418

       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

[[Page S7376]]

     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

[[Page S7377]]

       ``(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.''.
  Mr. INHOFE. I ask unanimous consent that the committee-reported 
amendments be withdrawn, the Peters substitute amendment at the desk be 
considered and agreed to; the bill, as amended, be considered read a 
third time and passed and that the motion to reconsider be considered 
made and laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee-reported amendments were withdrawn.
  The amendment (No. 2697), in the nature of a substitute, was agreed 
to, as follows:
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The bill (S. 3418), as amended, was ordered to be engrossed for a 
third reading, was read the third time, and passed.

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