[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3418 Enrolled Bill (ENR)]

        S.3418

                     One Hundred Sixteenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Friday,
            the third day of January, two thousand and twenty


                                 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.
            ``(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;
            ``(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 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) Administrative and technical costs.--For each fiscal 
    year, a participating entity may use the amount described in 
    paragraph (1)(C) to--
            ``(A) pay the reasonable costs of administering the 
        programs under this section, including the cost of establishing 
        an entity loan fund; and
            ``(B) provide technical assistance to recipients of 
        financial assistance from the entity loan fund, on the 
        condition that such technical assistance does not exceed 5 
        percent of the capitalization grant made to such entity.
        ``(7) Limitation for single projects.--A participating entity 
    may not provide an amount equal to or more than $5,000,000 to a 
    single hazard mitigation project.
        ``(8) Requirements.--For fiscal year 2022 and each fiscal year 
    thereafter, the requirements of subchapter IV of chapter 31 of 
    title 40, United States Code, shall apply to the construction of 
    projects carried out in whole or in part with assistance made 
    available by an entity loan fund authorized by this section.
    ``(g) Intended Use Plans.--
        ``(1) In general.--After providing for public comment and 
    review, and consultation with appropriate government agencies of 
    the State or Indian tribal government, Federal agencies, and 
    interest groups, each participating entity shall annually prepare 
    and submit to the Administrator a plan identifying the intended 
    uses of the entity loan fund.
        ``(2) Contents of plan.--An entity intended use plan prepared 
    under paragraph (1) shall include--
            ``(A) the integration of entity planning efforts, including 
        entity hazard mitigation plans and other programs and 
        initiatives relating to mitigation of major disasters carried 
        out by such entity;
            ``(B) an explanation of the mitigation and resiliency 
        benefits the entity intends to achieve by--
                ``(i) reducing future damage and loss associated with 
            hazards;
                ``(ii) reducing the number of severe repetitive loss 
            structures and repetitive loss structures in the entity;
                ``(iii) decreasing the number of insurance claims in 
            the entity from injuries resulting from major disasters or 
            other natural hazards; and
                ``(iv) increasing the rating under the community rating 
            system under section 1315(b) of the National Flood 
            Insurance Act of 1968 (42 U.S.C. 4022(b)) for communities 
            in the entity;
            ``(C) information on the availability of, and application 
        process for, financial assistance from the entity loan fund of 
        such entity;
            ``(D) the criteria and methods established for the 
        distribution of funds;
            ``(E) the amount of financial assistance that the entity 
        anticipates apportioning;
            ``(F) the expected terms of the assistance provided from 
        the entity loan fund; and
            ``(G) a description of the financial status of the entity 
        loan fund, including short-term and long-term goals for the 
        fund.
    ``(h) Audits, Reports, Publications, and Oversight.--
        ``(1) Biennial entity audit and report.--Beginning not later 
    than the last day of the second fiscal year after the receipt of 
    payments under this section, and biennially thereafter, any 
    participating entity shall--
            ``(A) conduct an audit of the entity loan fund established 
        under subsection (c); and
            ``(B) provide to the Administrator a report including--
                ``(i) the result of any such audit; and
                ``(ii) a review of the effectiveness of the entity loan 
            fund of the entity with respect to meeting the goals and 
            intended benefits described in the intended use plan 
            submitted by the entity under subsection (g).
        ``(2) Publication.--A participating entity shall publish and 
    periodically update information about all projects receiving 
    funding from the entity loan fund of such entity, including--
            ``(A) the location of the project;
            ``(B) the type and amount of assistance provided from the 
        entity loan fund;
            ``(C) the expected funding schedule; and
            ``(D) the anticipated date of completion of the project.
        ``(3) Oversight.--
            ``(A) In general.--The Administrator shall, at least every 
        4 years, conduct reviews and audits as may be determined 
        necessary or appropriate by the Administrator to carry out the 
        objectives of this section and determine the effectiveness of 
        the fund in reducing natural hazard risk.
            ``(B) GAO requirements.--A participating entity shall 
        conduct audits under paragraph (1) in accordance with the 
        auditing procedures of the Government Accountability Office, 
        including generally accepted government auditing standards.
            ``(C) Recommendations by administrator.--The Administrator 
        may at any time make recommendations for or require specific 
        changes to an entity loan fund in order to improve the 
        effectiveness of the fund.
    ``(i) Regulations or Guidance.--The Administrator shall issue such 
regulations or guidance as are necessary to--
        ``(1) ensure that each participating entity uses funds as 
    efficiently as possible;
        ``(2) reduce waste, fraud, and abuse to the maximum extent 
    possible; and
        ``(3) require any party that receives funds directly or 
    indirectly under this section, including a participating entity and 
    a recipient of amounts from an entity loan fund, to use procedures 
    with respect to the management of the funds that conform to 
    generally accepted accounting standards.
    ``(j) Waiver Authority.--Until such time as the Administrator 
issues final regulations to implement this section, the Administrator 
may--
        ``(1) waive notice and comment rulemaking, if the Administrator 
    determines the waiver is necessary to expeditiously implement this 
    section; and
        ``(2) provide capitalization grants under this section as a 
    pilot program.
    ``(k) Liability Protections.--The Agency shall not be liable for 
any claim based on the exercise or performance of, or the failure to 
exercise or perform, a discretionary function or duty by the Agency, or 
an employee of the Agency in carrying out this section.
    ``(l) GAO Report.--Not later than 1 year after the date on which 
the first entity loan fund is established under subsection (c), the 
Comptroller General of the United States shall submit to the Committee 
on Homeland Security and Governmental Affairs of the Senate and the 
Committee on Transportation and Infrastructure of the House of 
Representatives a report that examines--
        ``(1) the appropriateness of regulations and guidance issued by 
    the Administrator for the program, including any oversight of the 
    program;
        ``(2) a description of the number of the entity loan funds 
    established, the projects funded from such entity loan funds, and 
    the extent to which projects funded by the loan funds adhere to any 
    applicable hazard mitigation plans;
        ``(3) the effectiveness of the entity loan funds to lower 
    disaster related costs; and
        ``(4) recommendations for improving the administration of 
    entity loan funds.
    ``(m) Definitions.--In this section, the following definitions 
apply:
        ``(1) Administrator.--The term `Administrator' means the 
    Administrator of the Federal Emergency Management Agency.
        ``(2) Agency.--The term `Agency' means the Federal Emergency 
    Management Agency.
        ``(3) Eligible entity.--The term `eligible entity' means--
            ``(A) a State; or
            ``(B) an Indian tribal government that has received a major 
        disaster declaration during the 5-year period ending on the 
        date of enactment of the STORM Act.
        ``(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).
    ``(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.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.