[House Report 119-319]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-319
======================================================================
PROMOTING RESILIENT BUILDINGS ACT OF 2025
_______
October 3, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Graves, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 501]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 501) to amend certain laws relating
to disaster recovery and relief with respect to the
implementation of building codes, and for other purposes,
having considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
CONTENTS
Page
Purpose of Legislation........................................... 3
Background and Need for Legislation.............................. 3
Hearings......................................................... 3
Legislative History and Consideration............................ 4
Committee Votes.................................................. 4
Committee Oversight Findings and Recommendations................. 4
New Budget Authority and Tax Expenditures........................ 4
Congressional Budget Office Cost Estimate........................ 4
Performance Goals and Objectives................................. 6
Duplication of Federal Programs.................................. 6
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 6
Federal Mandates Statement....................................... 6
Preemption Clarification......................................... 6
Advisory Committee Statement..................................... 7
Applicability to Legislative Branch.............................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 7
Committee Correspondence......................................... 00
Supplemental, Minority, Additional, or Dissenting Views.......... 00
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Promoting Resilient Buildings Act of
2025''.
SEC. 2. PREDISASTER HAZARD MITIGATION.
Section 203 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5133) is amended by adding at the end the
following:
``(m) Latest Published Editions.--For purposes of subsections
(e)(1)(B)(iv) and (g)(10), the term `latest published editions' means,
with respect to relevant consensus-based codes, specifications, and
standards, the 2 most recently published editions.''.
SEC. 3. HAZARD MITIGATION REVOLVING LOAN FUND PROGRAM.
Section 205(f) of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5135(f)) is amended--
(1) by striking paragraph (5); and
(2) by redesignating paragraphs (6), (7), and (8) as
paragraphs (5), (6), and (7), respectively.
SEC. 4. RESIDENTIAL RETROFIT AND RESILIENCE PILOT PROGRAM.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Federal Emergency Management Agency.
(2) Residential resilient retrofits.--The term ``residential
resilient retrofits''--
(A) means a project that--
(i) is designed to increase the resilience of
an existing home or residence using mitigation
measures that the Administrator determines
reduce damage and impacts from natural disaster
hazards and risks that are most likely to occur
in the area where the home is located; and
(ii) to the extent applicable, are consistent
with the 2 most recently published editions of
relevant consensus-based codes, specifications,
and standards, including any amendments made by
State, local, Tribal, or territorial
governments to those codes, specifications, and
standards that incorporate the latest hazard-
resistant designs and establish criteria for
the design, construction, and maintenance of
residential structures and facilities that may
be eligible for assistance under the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.) for the
purpose of protecting the health, safety, and
general welfare of users of the buildings
against disasters; and
(B) includes--
(i) elevations of homes and elevations of
utilities within and around structures to
mitigate damages;
(ii) floodproofing measures;
(iii) the construction of tornado safe rooms;
(iv) seismic retrofits;
(v) wildfire retrofit and mitigation
measures;
(vi) wind retrofits, including roof
replacements, hurricane straps, and tie-downs;
and
(vii) any other measures that meet the
requirements of subparagraph (A), as determined
by the Administrator.
(b) Establishment.--The Administrator shall carry out a residential
resilience pilot program through the program established under section
203 of the Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5133) to make available assistance to States and local
governments for the purpose of providing grants to individuals for
residential resilience retrofits.
(c) Amount of Funds.--The Administrator may use not more than 10
percent of the assistance made available to applicants on an annual
basis under section 203 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5133) to provide assistance under
this section.
(d) Timeline.--The Administrator shall establish the pilot program
under this section not later than 1 year after the date of enactment of
this Act and the program shall terminate on September 30, 2030.
(e) Priority.--In carrying out the pilot program under this section,
the Administrator shall ensure that a State or local government
receiving assistance under the program provides grants to individuals
that demonstrate financial need.
(f) Report.--Not later than 6 years after the date of enactment of
this Act, the Administrator 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 includes--
(1) a summary of the grant awards and projects carried out
under this section;
(2) a detailed compilation of results achieved by the grant
awards and projects carried out under this section, including
the number of homes receiving retrofits, the types and average
costs of retrofits, and demographic information for
participants in the pilot program;
(3) an estimate of avoidance in disaster impacts and Federal
disaster payments as a result of the grant investments carried
out under this section, and whether that avoidance is different
than other mitigation projects funded through section 203 of
the Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5133); and
(4) any identified implementation challenges and
recommendations for improvements to the pilot program.
(g) Applicability.--This section shall only apply to amounts
appropriated on or after the date of enactment of this Act.
SEC. 5. RULE OF CONSTRUCTION.
Nothing in this Act or the amendments made by this Act shall be
construed to affect any program other than the predisaster hazard
mitigation program or the hazard mitigation revolving loan fund program
established under section 203 or 205 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5133, 5135),
respectively.
Purpose of Legislation
The purpose of H.R. 501, as amended, is to amend certain
laws relating to disaster recovery and relief with respect to
the implementation of building codes, and for other purposes.
Background and Need for Legislation
H.R. 501, as amended, makes technical corrections to the
Robert T. Stafford Disaster Relief and Emergency Assistance Act
(Stafford Act) by clarifying that `latest published editions'
includes the latest two published editions of building codes
and allows states to have flexibility to address risks specific
to their regions. This will ensure that `latest published
editions' is consistent with the definition passed in the
Disaster Recovery Reform Act (DRRA) of 2018, which expired last
year. Specifically, it will ensure that the Federal Emergency
Management Agency (FEMA) continues to consider the two latest
published editions of building codes when providing assistance
authorized by section 203 of the Stafford Act.
This legislation strikes language in section 205 of the
Stafford Act that authorized participating entities to use
FEMA's hazard mitigation revolving loan fund to establish or
carry out building code enforcement. H.R. 501, as amended, also
establishes a pilot program for states to provide pre-disaster
mitigation assistance to individual homeowners to reduce the
impact and costs of future disasters.
Hearings
For the purposes of rule XIII, clause 3(c)(6)(A) of the
118th Congress, the following hearing was used to develop or
consider H.R. 501.
On September 25, 2024, the Subcommittee on Economic
Development, Public Buildings and Emergency Management of the
Committee on Transportation and Infrastructure held a hearing
entitled, ``Examining the Role and Effectiveness of Building
Codes in Mitigating Against Disasters.'' The Subcommittee
received testimony from: Mr. Russell J. Strickland, President
of the National Emergency Management Association, Mr. Buddy
Hughes, First Vice Chairman of the National Association of Home
Builders, Mr. Jordan Krahenbuhl, Executive Director of the
Plumbing Heating Cooling Contractors of Nevada, and Ms. Cindy
L. Davis, on behalf of the International Code Council.
Legislative History and Consideration
H.R. 501 was introduced in the United States House of
Representatives on January 16, 2025, by Mr. Edwards of North
Carolina and referred to the Committee on Transportation and
Infrastructure. Within the Committee on Transportation and
Infrastructure, H.R. 501 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. 501 on February 26, 2025.
The Committee considered H.R. 501 on February 26, 2025, and
ordered the measure to be reported to the House with a
favorable recommendation, with amendment, by voice vote. The
following amendments were offered:
An Amendment in the Nature of a Substitute to H.R. 501
offered by Mr. Graves of Missouri, was AGREED TO by voice vote.
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.
No record votes were requested during consideration of H.R.
501.
Committee Oversight Findings and Recommendations
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
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
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 and section
402 of the Congressional Budget Act of 1974, the Committee has
received the enclosed cost estimate for H.R. 501, as amended,
from the Director of the Congressional Budget Office:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 501 would authorize the Federal Emergency Management
Agency (FEMA) to establish a pilot program and award grants to
state and tribal governments designed to mitigate the effects
of future disasters on residential properties by reducing
damage from flooding, wind, wildfire, and seismic activity.
Under the bill, the agency could allocate up to 10 percent of
funds set aside each year for the Building Resilient
Infrastructure and Communities (BRIC) program for the new
grants. The BRIC program is funded through amounts that the
agency sets aside within the Disaster Relief Fund. The new
grant program would terminate after 2030.
The legislation also would require FEMA to report to the
Congress within six years of enactment, summarizing the awards
made under the pilot program, including an estimate of the
amount of damage avoided under the program.
Over the 2020-2024 period, FEMA set aside an average of
about $500 million annually for the BRIC program, not including
amounts related to the coronavirus pandemic or provided by the
Infrastructure Investment and Jobs Act. For this estimate, CBO
assumes that FEMA will continue to set aside the same amount
each year and that the agency would allocate the full 10
percent of that amount allowed under the legislation for new
grants. Thus, CBO expects that under H.R. 501, FEMA would
allocate $50 million annually each year over the 2025-2030
period for the pilot program.
On that basis, and using historical spending patterns, CBO
estimates that implementing H.R. 501 would cost $190 million
over the 2025-2030 period and an additional $110 million after
2030.
The costs of the legislation, detailed in Table 1, fall
within budget function 450 (community and regional
development).
TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 501
----------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
----------------------------------------------------------
2025 2026 2027 2028 2029 2030 2025-2030
----------------------------------------------------------------------------------------------------------------
Estimated Authorization.............................. 50 50 50 50 50 50 300
Estimated Outlays.................................... * 13 31 46 50 50 190
----------------------------------------------------------------------------------------------------------------
* = between zero and $500,000
The CBO staff contact for this estimate is Jon Sperl. The
estimate was reviewed by H. Samuel Papenfuss, Deputy Director
of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
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 make
changes to how FEMA interprets building code definitions to
provide clarity within its disaster mitigation programs.
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. 501, as amended, 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
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
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. 501, as amended,
does not preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the definition of Section
5(b) of the appendix to Title 5, United States Code, are
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 designates the short title of the Act as the
``Promoting Resilient Buildings Act of 2025''.
Section 2. Predisaster hazard mitigation
This section extends a building code definition from the
DRRA of 2018 and amends section 203 of the Stafford Act
regarding the use of funds for predisaster mitigation. It
defines the latest published editions of building codes to mean
the two latest published editions of such codes.
Section 3. Hazard mitigation revolving loan fund program
This section strikes paragraph (5) of section 205(f) of the
Stafford Act.
Section 4. Residential retrofit and resilience pilot program
This section directs FEMA to establish a residential
resilience pilot program under Section 203 of the Stafford Act
and make available assistance to States and local governments
for the purpose of providing grants to individuals for
residential resilience retrofits.
Section 5. Rule of construction
This section directs that nothing in this Act or the
amendments made by this Act shall be construed to affect any
program other than the predisaster hazard mitigation program or
the hazard mitigation revolving loan fund program established
under Section 203 or 205 of the Stafford Act.
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):
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. 203. PREDISASTER HAZARD MITIGATION.
(a) Definition of Small Impoverished Community.--In this
section, the term ``small impoverished community'' means a
community of 3,000 or fewer individuals that is economically
disadvantaged, as determined by the State in which the
community is located and based on criteria established by the
President.
(b) Establishment of Program.--The President may establish a
program to provide technical and financial assistance to States
and local governments to assist in the implementation of
predisaster hazard mitigation measures that are cost-effective
and are designed to reduce injuries, loss of life, and damage
and destruction of property, including damage to critical
services and facilities under the jurisdiction of the States or
local governments.
(c) Approval by President.--If the President determines that
a State or local government has identified natural disaster
hazards in areas under its jurisdiction and has demonstrated
the ability to form effective public-private natural disaster
hazard mitigation partnerships, the President, using amounts in
the National Public Infrastructure Predisaster Mitigation Fund
established under subsection (i) (referred to in this section
as the ``Fund''), may provide technical and financial
assistance to the State or local government to be used in
accordance with subsection (e).
(d) State Recommendations.--
(1) In general.--
(A) Recommendations.--The Governor of each
State may recommend to the President not fewer
than five local governments to receive
assistance under this section.
(B) Deadline for submission.--The
recommendations under subparagraph (A) shall be
submitted to the President not later than
October 1, 2001, and each October 1st
thereafter or such later date in the year as
the President may establish.
(C) Criteria.--In making recommendations
under subparagraph (A), a Governor shall
consider the criteria specified in subsection
(g).
(2) Use.--
(A) In general.--Except as provided in
subparagraph (B), in providing assistance to
local governments under this section, the
President shall select from local governments
recommended by the Governors under this
subsection.
(B) Extraordinary circumstances.--In
providing assistance to local governments under
this section, the President may select a local
government that has not been recommended by a
Governor under this subsection if the President
determines that extraordinary circumstances
justify the selection and that making the
selection will further the purpose of this
section.
(3) Effect of failure to nominate.--If a Governor of
a State fails to submit recommendations under this
subsection in a timely manner, the President may
select, subject to the criteria specified in subsection
(g), any local governments of the State to receive
assistance under this section.
(e) Uses of Technical and Financial Assistance.--
(1) In general.--Technical and financial assistance
provided under this section--
(A) shall be used by States and local
governments principally to implement
predisaster hazard mitigation measures that are
cost-effective and are described in proposals
approved by the President under this section;
and
(B) may be used--
(i) to support effective public-
private natural disaster hazard
mitigation partnerships;
(ii) to improve the assessment of a
community's vulnerability to natural
hazards;
(iii) to establish hazard mitigation
priorities, and an appropriate hazard
mitigation plan, for a community; or
(iv) to establish and carry out
enforcement activities and implement
the latest published editions of
relevant consensus-based codes,
specifications, and standards that
incorporate the latest hazard-resistant
designs and establish minimum
acceptable criteria for the design,
construction, and maintenance of
residential structures and facilities
that may be eligible for assistance
under this Act for the purpose of
protecting the health, safety, and
general welfare of the buildings' users
against disasters.
(2) Dissemination.--A State or local government may
use not more than 10 percent of the financial
assistance received by the State or local government
under this section for a fiscal year to fund activities
to disseminate information regarding cost-effective
mitigation technologies.
(f) Allocation of Funds.--
(1) In general.--The President shall award financial
assistance under this section on a competitive basis
for mitigation activities that are cost effective and
in accordance with the criteria in subsection (g).
(2) Minimum and maximum amounts.--In providing
financial assistance under this section, the President
shall ensure that the amount of financial assistance
made available to a State (including amounts made
available to local governments of the State) for a
fiscal year--
(A) is not less than the lesser of--
(i) $575,000; or
(ii) the amount that is equal to 1
percent of the total funds appropriated
to carry out this section for the
fiscal year; and
(B) does not exceed the amount that is equal
to 15 percent of the total funds appropriated
to carry out this section for the fiscal year.
(3) Redistribution of unobligated amounts.--The
President may--
(A) withdraw amounts of financial assistance
made available to a State (including amounts
made available to local governments of a State)
under this subsection that remain unobligated
by the end of the third fiscal year after the
fiscal year for which the amounts were
allocated; and
(B) in the fiscal year following a fiscal
year in which amounts were withdrawn under
subparagraph (A), add the amounts to any other
amounts available to be awarded on a
competitive basis pursuant to paragraph (1).
(g) Criteria for Assistance Awards.--In determining whether
to provide technical and financial assistance to a State or
local government under this section, the President shall
provide financial assistance only in States that have received
a major disaster declaration in the previous 7 years, or to any
Indian tribal government located partially or entirely within
the boundaries of such States, and take into account--
(1) the extent and nature of the hazards to be
mitigated;
(2) the degree of commitment of the State or local
government to reduce damages from future natural
disasters;
(3) the degree of commitment by the State or local
government to support ongoing non-Federal support for
the hazard mitigation measures to be carried out using
the technical and financial assistance;
(4) the extent to which the hazard mitigation
measures to be carried out using the technical and
financial assistance contribute to the mitigation goals
and priorities established by the State;
(5) the extent to which the technical and financial
assistance is consistent with other assistance provided
under this Act;
(6) the extent to which prioritized, cost-effective
mitigation activities that produce meaningful and
definable outcomes are clearly identified;
(7) if the State or local government has submitted a
mitigation plan under section 322, the extent to which
the activities identified under paragraph (6) are
consistent with the mitigation plan;
(8) the opportunity to fund activities that maximize
net benefits to society;
(9) the extent to which assistance will fund
mitigation activities in small impoverished
communities;
(10) the extent to which the State, local, Indian
tribal, or territorial government has facilitated the
adoption and enforcement of the latest published
editions of relevant consensus-based codes,
specifications, and standards, including amendments
made by State, local, Indian tribal, or territorial
governments during the adoption process that
incorporate the latest hazard-resistant designs and
establish criteria for the design, construction, and
maintenance of residential structures and facilities
that may be eligible for assistance under this Act for
the purpose of protecting the health, safety, and
general welfare of the buildings' users against
disasters;
(11) the extent to which the assistance will fund
activities that increase the level of resiliency; and
(12) such other criteria as the President establishes
in consultation with State and local governments.
(h) Federal Share.--
(1) In general.--Financial assistance provided under
this section may contribute up to 75 percent of the
total cost of mitigation activities approved by the
President.
(2) Small impoverished communities.--Notwithstanding
paragraph (1), the President may contribute up to 90
percent of the total cost of a mitigation activity
carried out in a small impoverished community.
(i) National Public Infrastructure Predisaster Mitigation
Assistance.--
(1) In general.--The President may set aside from the
Disaster Relief Fund, with respect to each major
disaster, an amount equal to 6 percent of the estimated
aggregate amount of the grants to be made pursuant to
sections 403, 406, 407, 408, 410, 416, and 428 for the
major disaster in order to provide technical and
financial assistance under this section and such set
aside shall be deemed to be related to activities
carried out pursuant to major disasters under this Act.
(2) Estimated aggregate amount.--Not later than 180
days after each major disaster declaration pursuant to
this Act, the estimated aggregate amount of grants for
purposes of paragraph (1) shall be determined by the
President and such estimated amount need not be
reduced, increased, or changed due to variations in
estimates.
(3) No reduction in amounts.--The amount set aside
pursuant to paragraph (1) shall not reduce the amounts
otherwise made available for sections 403, 404, 406,
407, 408, 410, 416, and 428 under this Act.
(j) Multihazard Advisory Maps.--
(1) Definition of multihazard advisory map.--In this
subsection, the term ``multihazard advisory map'' means
a map on which hazard data concerning each type of
natural disaster is identified simultaneously for the
purpose of showing areas of hazard overlap.
(2) Development of maps.--In consultation with
States, local governments, and appropriate Federal
agencies, the President shall develop multihazard
advisory maps for areas, in not fewer than five States,
that are subject to commonly recurring natural hazards
(including flooding, hurricanes and severe winds, and
seismic events).
(3) Use of technology.--In developing multihazard
advisory maps under this subsection, the President
shall use, to the maximum extent practicable, the most
cost-effective and efficient technology available.
(4) Use of maps.--
(A) Advisory nature.--The multihazard
advisory maps shall be considered to be
advisory and shall not require the development
of any new policy by, or impose any new policy
on, any government or private entity.
(B) Availability of maps.--The multihazard
advisory maps shall be made available to the
appropriate State and local governments for the
purposes of--
(i) informing the general public
about the risks of natural hazards in
the areas described in paragraph (2);
(ii) supporting the activities
described in subsection (e); and
(iii) other public uses.
(k) Report on Federal and State Administration.--Not later
than 18 months after the date of the enactment of this section,
the President, in consultation with State and local
governments, shall submit to Congress a report evaluating
efforts to implement this section and recommending a process
for transferring greater authority and responsibility for
administering the assistance program established under this
section to capable States.
(l) Prohibition on Earmarks.--
(1) Definition.--In this subsection, the term
``congressionally directed spending'' means a statutory
provision or report language included primarily at the
request of a Senator or a Member, Delegate or Resident
Commissioner of the House of Representatives providing,
authorizing, or recommending a specific amount of
discretionary budget authority, credit authority, or
other spending authority for a contract, loan, loan
guarantee, grant, loan authority, or other expenditure
with or to an entity, or targeted to a specific State,
locality, or Congressional district, other than through
a statutory or administrative formula-driven or
competitive award process.
(2) Prohibition.--None of the funds appropriated or
otherwise made available to carry out this section may
be used for congressionally directed spending.
(3) Certification to congress.--The Administrator of
the Federal Emergency Management Agency shall submit to
Congress a certification regarding whether all
financial assistance under this section was awarded in
accordance with this section.
(m) Latest Published Editions.--For purposes of subsections
(e)(1)(B)(iv) and (g)(10), the term ``latest published
editions'' means, with respect to relevant consensus-based
codes, specifications, and standards, the 2 most recently
published editions.
* * * * * * *
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).
(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 and Tribal governments), power and
water production and distribution centers, and
bridges and waterways essential to interstate
commerce.
(e) Environmental Review of Revolving Loan Fund Projects.--
The Administrator may delegate to a participating entity all of
the responsibilities for environmental review, decision making,
and action pursuant to the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.), and other applicable Federal
environmental laws including the Endangered Species Act of 1973
(16 U.S.C. 1531 et seq.) and the National Historic Preservation
Act of 1966 (54 U.S.C. 300101 et seq.) that would apply to the
Administrator were the Administrator to undertake projects
under this section as Federal projects so long as the
participating entity carries out such responsibilities in the
same manner and subject to the same requirements as if the
Administrator carried out such responsibilities.
(f) Use of Funds.--
(1) Types of assistance.--Amounts deposited in an
entity loan fund, including loan repayments and
interest earned on such amounts, may be used--
(A) to make loans, on the condition that--
(i) such loans are made at an
interest rate of not more than 1
percent;
(ii) annual principal and interest
payments will commence not later than 1
year after completion of any project
and all loans made under this
subparagraph will be fully amortized--
(I) not later than 20 years
after the date on which the
project is completed; or
(II) for projects in a low-
income geographic area, not
later than 30 years after the
date on which the project is
completed and not longer than
the expected design life of the
project;
(iii) the loan recipient of a loan
under this subparagraph establishes a
dedicated source of revenue for
repayment of the loan;
(iv) the loan recipient of a loan
under this subparagraph has a hazard
mitigation plan that has been approved
by the Administrator; and
(v) the entity loan fund will be
credited with all payments of principal
and interest on all loans made under
this subparagraph;
(B) for mitigation efforts, in addition to
mitigation planning under section 322 not to
exceed 10 percent of the capitalization grants
made to the participating entity in a fiscal
year;
(C) for the reasonable costs of administering
the fund and conducting activities under this
section, except that such amounts shall not
exceed $100,000 per year, 2 percent of the
capitalization grants made to the participating
entity in a fiscal year, or 1 percent of the
value of the entity loan fund, whichever amount
is greatest, plus the amount of any fees
collected by the entity for such purpose
regardless of the source; and
(D) to earn interest on the entity loan fund.
(2) Prohibition on determination that loan is a
duplication.--In carrying out this section, the
Administrator may not determine that a loan is a
duplication of assistance or programs under this Act.
(3) Projects and activities eligible for
assistance.--Except as provided in this subsection, a
participating entity may use funds in the entity loan
fund to provide financial assistance for projects or
activities that mitigate the impacts of natural hazards
including--
(A) drought and prolonged episodes of intense
heat;
(B) severe storms, including hurricanes,
tornados, wind storms, cyclones, and severe
winter storms;
(C) wildfires;
(D) earthquakes;
(E) flooding, including the construction,
repair, or replacement of a non-Federal levee
or other flood control structure, provided that
the Administrator, in consultation with the
Army Corps of Engineers (if appropriate),
requires an eligible entity to determine that
such levee or structure is designed,
constructed, and maintained in accordance with
sound engineering practices and standards
equivalent to the purpose for which such levee
or structure is intended;
(F) shoreline erosion;
(G) high water levels; and
(H) storm surges.
(4) Zoning and land use planning changes.--A
participating entity may use not more than 10 percent
of a capitalization grant under this section to enable
units of local government to implement zoning and land
use planning changes focused on--
(A) the development and improvement of zoning
and land use codes that incentivize and
encourage low-impact development, resilient
wildland-urban interface land management and
development, natural infrastructure, green
stormwater management, conservation areas
adjacent to floodplains, implementation of
watershed or greenway master plans, and
reconnection of floodplains;
(B) the study and creation of agricultural
risk compensation districts where there is a
desire to remove or set-back levees protecting
highly developed agricultural land to mitigate
for flooding, allowing agricultural producers
to receive compensation for assuming greater
flood risk that would alleviate flood exposure
to population centers and areas with critical
national infrastructure;
(C) the study and creation of land use
incentives that reward developers for greater
reliance on low impact development stormwater
best management practices, exchange density
increases for increased open space and
improvement of neighborhood catch basins to
mitigate urban flooding, reward developers for
including and augmenting natural infrastructure
adjacent to and around building projects
without reliance on increased sprawl, and
reward developers for addressing wildfire
ignition; and
(D) the study and creation of an erosion
response plan that accommodates river, lake,
forest, plains, and ocean shoreline retreating
or bluff stabilization due to increased
flooding and disaster impacts.
[(5) Establishing and carrying out building code
enforcement.--A participating entity may use
capitalization grants under this section to enable
units of local government to establish and carry out
the latest published editions of relevant building
codes, specifications, and standards for the purpose of
protecting the health, safety, and general welfare of
the building's users against disasters and natural
hazards.]
[(6)] (5) 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)] (6) 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)] (7) 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 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) 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)).
(6) Participating entity.--The term ``participating
entity'' means an eligible entity that has entered into
an agreement under this section.
(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).
(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)).
(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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