[116th Congress Public Law 284]
[From the U.S. Government Publishing Office]
[[Page 134 STAT. 4869]]
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. <<NOTE: Jan. 1, 2021 - [S. 3418]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Safeguarding
Tomorrow through Ongoing Risk Mitigation Act.>>
SECTION 1. <<NOTE: 42 USC 5121 note.>> 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. <<NOTE: 42 USC 5135.>> 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) <<NOTE: Requirements.>> Agreements.--Any agreement
entered into under this section shall require the participating
entity to--
``(A) <<NOTE: Compliance.>> comply with the
requirements of this section; and
``(B) <<NOTE: Procedures.>> 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) <<NOTE: Proposals. Notice. Deadline.>>
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 134 STAT. 4870]]
``(B) <<NOTE: Assessment.>> 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) <<NOTE: Proposal.>> 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) <<NOTE: Determination.>> 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) <<NOTE: Time period.>> 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 134 STAT. 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) <<NOTE: Determination.>> 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) <<NOTE: Compliance.>> 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 134 STAT. 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) <<NOTE: Loans.>> 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) <<NOTE: Deadline.>> 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) <<NOTE: Deadline.>> 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) <<NOTE: Plan.>> 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 134 STAT. 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) <<NOTE: Studies.>> 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 134 STAT. 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) <<NOTE: Applicability.>> 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) <<NOTE: Public comment. Review. Consultation.>> 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) <<NOTE: Criteria.>> 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 134 STAT. 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) <<NOTE: Review.>> 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) <<NOTE: Update.>> 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) <<NOTE: Time
period. Reviews. Determination.>> 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) <<NOTE: Requirement. Procedures.>> 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) <<NOTE: Determination.>> 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 134 STAT. 4876]]
by the Agency, or an employee of the Agency in carrying out this
section.
``(l) <<NOTE: Examinations.>> 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) <<NOTE: Recommenda- tions.>> recommendations for
improving the administration of entity loan funds.
``(m) <<NOTE: Applicability.>> 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 134 STAT. 4877]]
``(n) <<NOTE: Time period.>> 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.
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