[House Report 117-275]
[From the U.S. Government Publishing Office]


117th Congress     }                                  {      Report
                        HOUSE OF REPRESENTATIVES
 2d Session        }                                  {      117-275

======================================================================



 
    SAFEGUARDING TOMORROW THROUGH ONGOING RISK MITIGATION TECHNICAL 
                            CORRECTIONS ACT

                                _______
                                

 March 24, 2022.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. DeFazio, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 5673]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 5673) to amend the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act to make 
technical corrections to the hazard mitigation revolving loan 
fund program, and for other purposes, having considered the 
same, reports favorably thereon without amendment and 
recommends that the bill do pass.

                                CONTENTS

                                                                  Pages
Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Legislative History and Consideration............................     2
Committee Votes..................................................     3
Committee Oversight Findings.....................................     4
New Budget Authority and Tax Expenditures........................     4
Congressional Budget Office Cost Estimate........................     5
Performance Goals and Objectives.................................     5
Duplication of Federal Programs..................................     5
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     5
Federal Mandates Statement.......................................     5
Preemption Clarification.........................................     6
Advisory Committee Statement.....................................     6
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis of the Legislation...................     6
Changes in Existing Law Made by the Bill, as Reported............     6

                         Purpose of Legislation

    The purpose of H.R. 5673 is to amend the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act to make technical 
corrections to the hazard mitigation revolving loan fund 
program.

                  Background and Need for Legislation

    H.R. 5673 makes several technical corrections to the hazard 
mitigation revolving loan fund program authorized in Sec. 205 
of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (Stafford Act, P.L. 93-288, as amended). 
Stafford Sec. 205 was created with enactment of the 
Safeguarding Tomorrow through Ongoing Risk Mitigation (STORM) 
Act (P.L. 116-284).
    The STORM Act (H.R. 3779, 116th Congress) was originally 
marked up and passed the Committee on September 19, 2019. Later 
the Senate introduced S. 3418 as companion legislation. S. 3418 
was ultimately enacted in law. Subsequently, technical 
corrections to S. 3418 were identified.
    The technical corrections to S. 3418 made by H.R. 5673 are 
reflective of the original bipartisan and bicameral agreement 
for the STORM Act. The corrections include removing reference 
to insular areas; striking the study and creation of 
agricultural risk compensation districts as an eligible use of 
capitalization grants to implement zoning and land use planning 
changes; and clarifying that this Act should be used to 
implement, not establish, building codes.

                                Hearings

    For the purposes of rule XIII, clause 3(c)(6)(A) of the 
117th Congress, the following hearings were used to develop or 
consider H.R. 5673:
    On March 18, 2021, the Subcommittee on Economic 
Development, Public Buildings, and Emergency Management held a 
hearing titled ``Building Smarter: The Benefits of Investing in 
Resilience and Mitigation.'' The Subcommittee received 
testimony from Mr. Russell ``Russ'' Strickland, Executive 
Director, Maryland Emergency Management Agency, State of 
Maryland, testifying on behalf of the National Emergency 
Management Association; Mr. Roy E. Wright, President and Chief 
Executive Officer (CEO), Insurance Institute for Business and 
Home Safety; Ms. Velma Smith, Senior Government Relations 
Officer, Flood Prepared Communities Initiative, Pew Charitable 
Trusts; Mr. Ben Harper, Head of Corporate Sustainability, 
Zurich North America Insurance Company; and Mr. John ``Chuck'' 
Fowke, Chairman, National Association of Home Builders. This 
hearing examined the current and future capacities in emergency 
management, mitigation and resilience, insurance, and 
construction.

                 Legislative History and Consideration

    H.R. 5673 was introduced in the House on October 21, 2021, 
by Ms. Titus of Nevada and Mr. Webster of Florida and referred 
to the Committee on Transportation and Infrastructure. Within 
the Committee, H.R. 5673 was referred to the Subcommittee on 
Economic Development, Public Buildings, and Emergency 
Management.
    The Subcommittee on Economic Development, Public Buildings, 
and Emergency Management was discharged from further 
consideration of H.R. 5673 on October 27, 2021.
    The Committee considered H.R. 5673 on October 27, 2021, and 
ordered the measure to be reported to the House with a 
favorable recommendation, without amendment, by a record vote 
of 60 yeas and 2 nays (Roll Call Vote No. 81).
    The following amendments were offered:
    An amendment offered by Mr. Perry (#1); Strike all after 
the enacting clause and insert the following: ``Sec. 1. Grants 
to Entities for Establishment of Hazard Mitigation Revolving 
Loan Funds''; was NOT AGREED TO by a record vote of 59 nays and 
5 yeas (Roll Call Vote No. 80).
    An amendment offered by Mr. Perry (#2); At the end of the 
bill, add the following: Sec. 11. ``GAO Report on Corruption in 
Zoning Agencies''; was WITHDRAWN.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against.

Committee on Transportation and Infrastructure Roll Call Vote No. 80

    On: Agreeing to Amendment #1 offered by Mr. Perry
    Not Agreed to: 5 yeas and 59 nays.

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. DeFazio.....................................          Nay   Mr. Graves of MO..................          Nay
Ms. Norton......................................          Nay   Mr. Young.........................  ............
Ms. Johnson of TX...............................          Nay   Mr. Crawford......................          Nay
Mr. Larsen of WA................................          Nay   Mr. Gibbs.........................          Nay
Mrs. Napolitano.................................          Nay   Mr. Webster.......................          Nay
Mr. Cohen.......................................          Nay   Mr. Massie........................          Yea
Mr. Sires.......................................  ............  Mr. Perry.........................          Yea
Mr. Garamendi...................................          Nay   Mr. Rodney Davis of IL............          Nay
Mr. Johnson of GA...............................          Nay   Mr. Katko.........................          Nay
Mr. Carson......................................          Nay   Mr. Babin.........................          Yea
Ms. Titus.......................................          Nay   Mr. Graves of LA..................          Nay
Mr. Maloney of NY...............................          Nay   Mr. Rouzer........................          Nay
Mr. Huffman.....................................          Nay   Mr. Bost..........................          Nay
Ms. Brownley....................................          Nay   Mr. Weber of TX...................          Yea
Ms. Wilson of FL................................          Nay   Mr. LaMalfa.......................          Nay
Mr. Payne.......................................          Nay   Mr. Westerman.....................          Nay
Mr. Lowenthal...................................          Nay   Mr. Mast..........................          Nay
Mr. DeSaulnier..................................          Nay   Mr. Gallagher.....................          Nay
Mr. Lynch.......................................          Nay   Mr. Fitzpatrick...................          Nay
Mr. Carbajal....................................          Nay   Miss Gonzalez-Colon...............          Nay
Mr. Brown.......................................          Nay   Mr. Balderson.....................          Nay
Mr. Malinowski..................................  ............  Mr. Stauber.......................          Nay
Mr. Stanton.....................................          Nay   Mr. Burchett......................          Nay
Mr. Allred......................................          Nay   Mr. Johnson of SD.................          Nay
Ms. Davids of KS................................          Nay   Mr. Van Drew......................          Nay
Mr. Garcia of IL................................          Nay   Mr. Guest.........................          Nay
Mr. Delgado.....................................          Nay   Mr. Nehls.........................          Yea
Mr. Pappas......................................          Nay   Ms. Mace..........................  ............
Mr. Lamb........................................          Nay   Ms. Malliotakis...................          Nay
Mr. Moulton.....................................          Nay   Ms. Van Duyne.....................  ............
Mr. Auchincloss.................................          Nay   Mr. Gimenez.......................          Nay
Ms. Bourdeaux...................................          Nay   Mrs. Steel........................          Nay
Mr. Kahele......................................          Nay
Ms. Strickland..................................          Nay
Ms. Williams of GA..............................          Nay
Ms. Newman......................................          Nay
Mr. Carter......................................          Nay
----------------------------------------------------------------------------------------------------------------

Committee on Transportation and Infrastructure Roll Call Vote No. 81

    On: Agreeing on passage of H.R. 5673
    Agreed to: 60 yeas and 2 nays.

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. DeFazio.....................................          Yea   Mr. Graves of MO..................          Yea
Ms. Norton......................................          Yea   Mr. Young.........................  ............
Ms. Johnson of TX...............................          Yea   Mr. Crawford......................          Yea
Mr. Larsen of WA................................          Yea   Mr. Gibbs.........................          Yea
Mrs. Napolitano.................................          Yea   Mr. Webster.......................          Yea
Mr. Cohen.......................................          Yea   Mr. Massie........................          Nay
Mr. Sires.......................................  ............  Mr. Perry.........................          Nay
Mr. Garamendi...................................          Yea   Mr. Rodney Davis of IL............          Yea
Mr. Johnson of GA...............................          Yea   Mr. Katko.........................          Yea
Mr. Carson......................................          Yea   Mr. Babin.........................          Yea
Ms. Titus.......................................          Yea   Mr. Graves of LA..................          Yea
Mr. Maloney of NY...............................          Yea   Mr. Rouzer........................          Yea
Mr. Huffman.....................................          Yea   Mr. Bost..........................          Yea
Ms. Brownley....................................          Yea   Mr. Weber of TX...................          Yea
Ms. Wilson of FL................................          Yea   Mr. LaMalfa.......................          Yea
Mr. Payne.......................................          Yea   Mr. Westerman.....................          Yea
Mr. Lowenthal...................................          Yea   Mr. Mast..........................          Yea
Mr. DeSaulnier..................................          Yea   Mr. Gallagher.....................          Yea
Mr. Lynch.......................................          Yea   Mr. Fitzpatrick...................          Yea
Mr. Carbajal....................................          Yea   Miss Gonzalez-Colon...............  ............
Mr. Brown.......................................          Yea   Mr. Balderson.....................          Yea
Mr. Malinowski..................................  ............  Mr. Stauber.......................          Yea
Mr. Stanton.....................................          Yea   Mr. Burchett......................          Yea
Mr. Allred......................................          Yea   Mr. Johnson of SD.................          Yea
Ms. Davids of KS................................          Yea   Mr. Van Drew......................          Yea
Mr. Garcia of IL................................          Yea   Mr. Guest.........................          Yea
Mr. Delgado.....................................          Yea   Mr. Nehls.........................          Yea
Mr. Pappas......................................          Yea   Ms. Mace..........................  ............
Mr. Lamb........................................          Yea   Ms. Malliotakis...................          Yea
Mr. Moulton.....................................          Yea   Ms. Van Duyne.....................  ............
Mr. Auchincloss.................................  ............  Mr. Gimenez.......................          Yea
Ms. Bourdeaux...................................          Yea   Mrs. Steel........................          Yea
Mr. Kahele......................................          Yea
Ms. Strickland..................................          Yea
Ms. Williams of GA..............................          Yea
Ms. Newman......................................          Yea
Mr. Carter......................................          Yea
----------------------------------------------------------------------------------------------------------------

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               New Budget Authority and Tax Expenditures

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received a cost estimate for this bill from the 
Director of Congressional Budget Office. The Committee has 
requested but not received from the Director of the 
Congressional Budget Office a statement as to whether this bill 
contains any new budget authority, spending authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures. The Chairman of the Committee shall cause such 
estimate and statement to be printed in the Congressional 
Record upon its receipt by the Committee.

               Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives, a cost 
estimate provided by the Congressional Budget Office pursuant 
to section 402 of the Congressional Budget Act of 1974 was not 
made available to the Committee in time for the filing of this 
report. The Chairman of the Committee shall cause such estimate 
to be printed in the Congressional Record upon its receipt by 
the Committee.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goal and objective of this legislation is to 
correct technical errors in the enacted language of the 
Safeguarding Tomorrow through Ongoing Risk Mitigation (STORM) 
Act (P.L. 116-284).

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 5673 establishes or reauthorizes a program of the 
federal government known to be duplicative of another federal 
program, a program that was included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with clause 9 of rule XXI of the Rules of the 
House of Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule 
XXI.

                       Federal Mandates Statement

    An estimate of federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee finds that H.R. 5673 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section provides that this measure may be cited as the 
``Safeguarding Tomorrow through Ongoing Risk Mitigation 
Technical Corrections Act''.

Sec. 2. Technical corrections to hazard mitigation revolving loan fund 
        program

    This section makes several technical corrections to the 
hazard mitigation revolving loan fund program authorized in 
Sec. 205 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (Stafford Act, P.L. 93-288, as 
amended).

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

    ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT




           *       *       *       *       *       *       *
TITLE II--DISASTER PREPAREDNESS AND MITIGATION ASSISTANCE

           *       *       *       *       *       *       *


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; and
                  (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] local governments and 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)] (B) 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)] (C) 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] Implementing and carrying out 
        building code enforcement.--A participating entity may 
        use capitalization grants under this section to enable 
        units of local government to [establish] implement and 
        carry out the latest 2 published editions of relevant 
        building codes, specifications, and standards, 
        including any amendments made by State, local, Tribal, 
        or territorial governments to such 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. ]
          (3) Eligible entity.--The term ``eligible entity'' 
        means a State or an Indian tribal government that has 
        received a major disaster declaration pursuant to 
        section 401.
          (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)] (5) 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)] (6) Participating entity.--The term 
        ``participating entity'' means an eligible entity that 
        has entered into an agreement under this section.
          [(8)] (7) 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)] (8) 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)] (9) 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.

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