    [United States Statutes at Large, Volume 134, 116th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 116-284
    116th Congress

    An Act

    To amend the Robert T. Stafford Disaster Relief and Emergency Assistance
    Act to allow the Administrator of the Federal Emergency Management
    Agency to provide capitalization grants to States to establish revolving
    funds to provide hazard mitigation assistance to reduce risks from
    disasters and natural hazards, and other related environmental
    harm. <>

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <>
    SECTION 1. <>  SHORT TITLE.

    This Act may be cited as the ``Safeguarding Tomorrow through Ongoing
    Risk Mitigation Act'' or the ``STORM Act''.
    SEC. 2. GRANTS TO ENTITIES FOR ESTABLISHMENT OF HAZARD MITIGATION
    REVOLVING LOAN FUNDS.

    Title II of the Robert T. Stafford Disaster Relief and Emergency
    Assistance Act (42 U.S.C. 5131 et seq.) is amended by adding at the end
    the following:
    ``SEC. 205. <>  GRANTS TO ENTITIES FOR
    ESTABLISHMENT OF HAZARD MITIGATION
    REVOLVING LOAN FUNDS.

    ``(a) General Authority.--
    ``(1) In general.--The Administrator may enter into
    agreements with eligible entities to make capitalization grants
    to such entities for the establishment of hazard mitigation
    revolving loan funds (referred to in this section as `entity
    loan funds') for providing funding assistance to local
    governments to carry out eligible projects under this section to
    reduce disaster risks for homeowners, businesses, nonprofit
    organizations, and communities in order to decrease--
    ``(A) the loss of life and property;
    ``(B) the cost of insurance; and
    ``(C) Federal disaster payments.
    ``(2) <>  Agreements.--Any agreement
    entered into under this section shall require the participating
    entity to--
    ``(A) <>  comply with the
    requirements of this section; and
    ``(B) <>  use accounting, audit,
    and fiscal procedures conforming to generally accepted
    accounting standards.

    ``(b) Application.--
    ``(1) In general.--To be eligible to receive a
    capitalization grant under this section, an eligible entity
    shall submit to the Administrator an application that includes
    the following:
    ``(A) <>
    Project proposals comprised of local government hazard
    mitigation projects, on the condition that the entity
    provides public notice not less than 6 weeks prior to
    the submission of an application.

    [[Page 4870]]

    ``(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

    [[Page 4871]]

    less than 10 percent of the total amount of the
    capitalization grant that the participating entity would
    otherwise receive, the Administrator shall reduce the
    amount of the capitalization grant received by the
    entity to the amount that is 10 times the amount so
    deposited.

    ``(d) Apportionment.--
    ``(1) <>  In general.--Except as
    otherwise provided by this subsection, the Administrator shall
    apportion funds made available to carry out this section to
    entities that have entered into an agreement under subsection
    (a)(2) in amounts as determined by the Administrator.
    ``(2) Reservation of funds.--The Administrator shall reserve
    not more than 2.5 percent of the amount made available to carry
    out this section for the Federal Emergency Management Agency
    for--
    ``(A) administrative costs incurred in carrying out
    this section;
    ``(B) providing technical assistance to
    participating entities under subsection (b)(2); and
    ``(C) capitalization grants to insular areas under
    paragraph (4).
    ``(3) Priority.--In the apportionment of capitalization
    grants under this subsection, the Administrator shall give
    priority to entity applications under subsection (b) that--
    ``(A) propose projects increasing resilience and
    reducing risk of harm to natural and built
    infrastructure;
    ``(B) involve a partnership between two or more
    eligible entities to carry out a project or similar
    projects;
    ``(C) take into account regional impacts of hazards
    on river basins, river corridors, micro-watersheds,
    macro-watersheds, estuaries, lakes, bays, and coastal
    regions and areas at risk of earthquakes, tsunamis,
    droughts, severe storms, and wildfires, including the
    wildland-urban interface; or
    ``(D) propose projects for the resilience of major
    economic sectors or critical national infrastructure,
    including ports, global commodity supply chain assets
    (located within an entity or within the jurisdiction of
    local governments, insular areas, and Indian tribal
    governments), power and water production and
    distribution centers, and bridges and waterways
    essential to interstate commerce.
    ``(4) Insular areas.--
    ``(A) Apportionment.--From any amount remaining of
    funds reserved under paragraph (2), the Administrator
    may enter into agreements to provide capitalization
    grants to insular areas.
    ``(B) <>  Requirements.--An
    insular area receiving a capitalization grant under this
    section shall comply with the requirements of this
    section as applied to participating entities.

    ``(e) Environmental Review of Revolving Loan Fund Projects.--The
    Administrator may delegate to a participating entity all of the
    responsibilities for environmental review, decision making, and action
    pursuant to the National Environmental Policy Act of 1969 (42 U.S.C.
    4321 et seq.), and other applicable Federal environmental laws including
    the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) and the
    National Historic Preservation

    [[Page 4872]]

    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;

    [[Page 4873]]

    ``(C) wildfires;
    ``(D) earthquakes;
    ``(E) flooding, including the construction, repair,
    or replacement of a non-Federal levee or other flood
    control structure, provided that the Administrator, in
    consultation with the Army Corps of Engineers (if
    appropriate), requires an eligible entity to determine
    that such levee or structure is designed, constructed,
    and maintained in accordance with sound engineering
    practices and standards equivalent to the purpose for
    which such levee or structure is intended;
    ``(F) shoreline erosion;
    ``(G) high water levels; and
    ``(H) storm surges.
    ``(4) <>  Zoning and land use planning
    changes.--A participating entity may use not more than 10
    percent of a capitalization grant under this section to enable
    units of local government to implement zoning and land use
    planning changes focused on--
    ``(A) the development and improvement of zoning and
    land use codes that incentivize and encourage low-impact
    development, resilient wildland-urban interface land
    management and development, natural infrastructure,
    green stormwater management, conservation areas adjacent
    to floodplains, implementation of watershed or greenway
    master plans, and reconnection of floodplains;
    ``(B) the study and creation of agricultural risk
    compensation districts where there is a desire to remove
    or set-back levees protecting highly developed
    agricultural land to mitigate for flooding, allowing
    agricultural producers to receive compensation for
    assuming greater flood risk that would alleviate flood
    exposure to population centers and areas with critical
    national infrastructure;
    ``(C) the study and creation of land use incentives
    that reward developers for greater reliance on low
    impact development stormwater best management practices,
    exchange density increases for increased open space and
    improvement of neighborhood catch basins to mitigate
    urban flooding, reward developers for including and
    augmenting natural infrastructure adjacent to and around
    building projects without reliance on increased sprawl,
    and reward developers for addressing wildfire ignition;
    and
    ``(D) the study and creation of an erosion response
    plan that accommodates river, lake, forest, plains, and
    ocean shoreline retreating or bluff stabilization due to
    increased flooding and disaster impacts.
    ``(5) Establishing and carrying out building code
    enforcement.--A participating entity may use capitalization
    grants under this section to enable units of local government to
    establish and carry out the latest published editions of
    relevant building codes, specifications, and standards for the
    purpose of protecting the health, safety, and general welfare of
    the building's users against disasters and natural hazards.
    ``(6) Administrative and technical costs.--For each fiscal
    year, a participating entity may use the amount described in
    paragraph (1)(C) to--

    [[Page 4874]]

    ``(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

    [[Page 4875]]

    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

    [[Page 4876]]

    by the Agency, or an employee of the Agency in carrying out this
    section.
    ``(l) <>  GAO Report.--Not later than 1 year
    after the date on which the first entity loan fund is established under
    subsection (c), the Comptroller General of the United States shall
    submit to the Committee on Homeland Security and Governmental Affairs of
    the Senate and the Committee on Transportation and Infrastructure of the
    House of Representatives a report that examines--
    ``(1) the appropriateness of regulations and guidance issued
    by the Administrator for the program, including any oversight of
    the program;
    ``(2) a description of the number of the entity loan funds
    established, the projects funded from such entity loan funds,
    and the extent to which projects funded by the loan funds adhere
    to any applicable hazard mitigation plans;
    ``(3) the effectiveness of the entity loan funds to lower
    disaster related costs; and
    ``(4) <>  recommendations for
    improving the administration of entity loan funds.

    ``(m) <>  Definitions.--In this section, the
    following definitions apply:
    ``(1) Administrator.--The term `Administrator' means the
    Administrator of the Federal Emergency Management Agency.
    ``(2) Agency.--The term `Agency' means the Federal Emergency
    Management Agency.
    ``(3) Eligible entity.--The term `eligible entity' means--
    ``(A) a State; or
    ``(B) an Indian tribal government that has received
    a major disaster declaration during the 5-year period
    ending on the date of enactment of the STORM Act.
    ``(4) Hazard mitigation plan.--The term `hazard mitigation
    plan' means a mitigation plan submitted under section 322.
    ``(5) Insular area.--The term `insular area' means Guam,
    American Samoa, the Commonwealth of the Northern Mariana
    Islands, and the United States Virgin Islands.
    ``(6) Low-income geographic area.--The term `low-income
    geographic area' means an area described in paragraph (1) or (2)
    of section 301(a) of the Public Works and Economic Development
    Act of 1965 (42 U.S.C. 3161(a)).
    ``(7) Participating entity.--The term `participating entity'
    means an eligible entity that has entered into an agreement
    under this section.
    ``(8) Repetitive loss structure.--The term `repetitive loss
    structure' has the meaning given the term in section 1370 of the
    National Flood Insurance Act of 1968 (42 U.S.C. 4121).
    ``(9) Severe repetitive loss structure.--The term `severe
    repetitive loss structure' has the meaning given the term in
    section 1366(h) of the National Flood Insurance Act of 1968 (42
    U.S.C. 4104c(h)).
    ``(10) State.--The term `State' means any State of the
    United States, the District of Columbia, and Puerto Rico.
    ``(11) Wildland-urban interface.--The term `wildland-urban
    interface' has the meaning given the term in section 101 of the
    Healthy Forests Restoration Act of 2003 (16 U.S.C. 6511).

    [[Page 4877]]

    ``(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.''.

    Approved January 1, 2021.

    LEGISLATIVE HISTORY--S. 3418:
    ---------------------------------------------------------------------------

    SENATE REPORTS: No. 116-249 (Comm. on Homeland Security and Governmental
    Affairs).
    CONGRESSIONAL RECORD, Vol. 166 (2020):
    Dec. 9, considered and passed Senate.
    Dec. 18, considered and passed House.