[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3531 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 3531
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 assistance to reduce the harmful
impacts to people and property from multiple hazards, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 27, 2019
Mr. Graves of Missouri introduced the following bill; which was
referred to the Committee on Transportation and Infrastructure
_______________________________________________________________________
A BILL
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 assistance to reduce the harmful
impacts to people and property from multiple hazards, and for other
purposes.
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 ``Resilient Communities Act of 2019''.
SEC. 2. REVOLVING LOAN FUNDS TO MITIGATE FOR MULTIPLE HAZARDS.
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. REVOLVING LOAN FUND.
``(a) Definitions.--In this section--
``(1) the term `eligible entity' means a State or Indian
Tribal Government as those terms are defined in section 102 of
this Act;
``(2) the term `participating entity' means an eligible
entity that--
``(A) has entered into an agreement under
subsection (b)(1); and
``(B) agrees to comply with the requirements of
this section;
``(3) the term `mitigation loan fund' means a multihazard
mitigation assistance revolving loan fund established by an
eligible entity under this section; and
``(4) the term `eligible recipient' means a local
governmental entity, a State agency or subdivision thereof.
``(b) General Authority.--
``(1) In general.--The Administrator may enter into an
agreement with an eligible entity to provide a capitalization
grant for the eligible entity to establish a revolving loan
fund that will provide funding assistance to an eligible
recipient 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) Timing of deposit and agreements for distribution of
funds.--
``(A) In general.--Not later than the last day of
the fiscal year following the fiscal year in which a
capitalization grant is made to a participating entity
under paragraph (1), the participating entity shall--
``(i) deposit the grant in the mitigation
loan fund of the eligible entity; and
``(ii) enter into 1 or more agreements to
distribute the grant funds for purposes
authorized under subsection (d).
``(B) Noncompliance.--Except as provided in
subparagraph (C), if a participating entity does not
comply with subparagraph (A) with respect to a grant,
the Administrator shall reallocate the grant in
accordance with paragraph (3).
``(C) Exception.--The Administrator may not
reallocate any funds under subparagraph (B) to a
participating entity that violated subparagraph (A)
with respect to a grant made during the same fiscal
year in which the funds to be reallocated were
originally made available.
``(3) Allocation.--
``(A) In general.--The Administrator shall allocate
amounts made available to carry out this section to
participating entities--
``(i) for the participating entities to
deposit in the mitigation loan funds
established by the participating entities; and
``(ii) except as provided in paragraph (5),
in accordance with the requirements described
in subparagraph (B).
``(B) Requirements.--The requirements described in
this subparagraph are as follows:
``(i) Eligible entities must apply to the
Administrator for an allocation of financial
assistance to capitalize the loans and commit
to a 10 percent match of the requested funds.
``(ii) Seventy-five percent of the project
selection must be composed of local government
hazard mitigation projects and eligible
entities must give at least 3 weeks notice to
their local governments before requiring all
hazard mitigation projects to be submitted.
``(iii) Eligible entities may not provide
more than $5,000,000 in loan funds toward the
completion of any single hazard mitigation
project.
``(iv) A participating entity must agree to
the revolving loan repayment terms issued by
the Administrator upon being selected to
participate.
``(v) No more than 10 percent of the loan
funds provided to a participating entity may be
used for the purposes of planning.
``(C) Prioritization.--The Administrator shall
prioritize loan funds to participating entities with
intended use plans that include projects that--
``(i) include the restoration and
augmentation of natural and built
infrastructure;
``(ii) involve more than 1 eligible entity
or recipient partnering together;
``(iii) take into account regional impacts
of hazards such as--
``(I) river basins;
``(II) river corridors;
``(III) micro and macro watersheds;
and
``(IV) estuaries, bays, and coastal
regions; and
``(iv) involve the resilience of major
economic sectors and critical national
infrastructure such as ports, power and water
production and distribution centers, bridges,
and waterways essential to interstate commerce.
``(4) Further revolving fund requirements.--A participating
entity that exercises the authority under paragraph (3)(A) in a
fiscal year shall provide matching funds from non-Federal
sources in an amount that is equal to 10 percent of the amount
that the participating entity receives under paragraph (3)(A)
in that fiscal year for purposes described in the respective
intended use plan.
``(5) Reservation of funds.--The Administrator shall
reserve not more than 1.5 percent of the amount made available
to carry out this section in a fiscal year--
``(A) for administrative costs incurred by FEMA in
carrying out this section; and
``(B) for FEMA to provide technical assistance to
recipients of loans under this section.
``(6) Partnerships.--Eligible recipients may partner with
nongovernmental organizations to ensure projects reduce
disaster risks for homeowners, businesses, nonprofit
organizations, and communities.
``(c) Environmental Review of Revolving Loan Fund Projects.--
Notwithstanding any other Federal law, Federal environmental review of
the mitigation loan fund projects shall be delegated to the
participating entities but only for the purposes of carrying out the
mitigation revolving loan fund program as authorized under this
section. Such participating entities shall establish a Federal
equivalency environmental review involving consideration of
alternatives, analysis of potential effects, opportunity for public
notice and comments, and compliance with Federal environmental laws and
Executive orders.
``(d) Use of Funds.--
``(1) In general.--Amounts deposited in a mitigation loan
fund, including repayments of loans made from the fund and
interest earned on the amounts in the fund, shall be used--
``(A) consistent with paragraphs (2) and (3) and
subsection (h), to provide financial assistance for any
eligible recipient;
``(B) as a source of revenue and security for
leveraged loans, the proceeds of which shall be
deposited in the mitigation loan fund; or
``(C) for the sale of bonds as security for payment
of the principal and interest on revenue or general
obligation bonds issued by the participating entity to
provide matching funds under subsection (g), if the
proceeds from the sale of the bonds are deposited in
the mitigation loan fund.
``(2) Purposes.--An eligible recipient of financial
assistance provided through amounts from a mitigation loan
fund--
``(A) shall use the amounts in a cost-effective
manner under requirements established by the
participating entity, which may require an applicant
for financial assistance to submit a cost-benefit
analysis before the date on which the applicant
receives the assistance;
``(B) shall use the amounts for projects that are
located in communities that have developed a local
hazard mitigation plan that has been approved by the
Administrator;
``(C) may use the amounts to--
``(i) establish and carry out enforcement
activities and implement consensus-based codes,
specifications, and standards;
``(ii) study special zoning overlay
districts that better interface waterfront
development with natural assets through the use
of buffer zones and shoreline set-backs,
protect freshwater resources for drinking and
manufacturing, and flood prevention through
installation and restoration of natural
infrastructure such as connected floodplain,
wetlands, marshes, setback areas, and
riverfront parks;
``(iii) study agriculture 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;
``(iv) study land use incentives that
reward developers for greater reliance on LID
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;
``(v) study an erosion response plan that
accommodates river, lake, and ocean shoreline
retreating or bluff stabilization due to
increased flooding and disaster impacts.
``(3) Allowance.--The Administrator shall promulgate an
allowance within this section to allow participating entities
to use revolving loan funds toward resilience to hazards.
Participating entities may direct a portion of revolving loan
funds toward resilience activities that mitigate for the
impacts of the following:
``(A) Flooding.--Funds may be applied to--
``(i) structural elevation;
``(ii) flood proofing;
``(iii) the relocation or removal of
buildings;
``(iv) environmental restoration activities
that directly reduce flood risk;
``(v) construction, repair or replacement
of non-Federal levees;
``(vi) nonprofits, businesses, and other
nongovernmental entities for projects that will
reduce flood risk; and
``(vii) other activities determined
appropriate by the Administrator.
``(B) Drought and prolonged episodes of intense
heat.--Funds may be applied to--
``(i) planning and protocols for healthcare
facility response and plans that add heat-
related illness treatment capacities;
``(ii) planning and protocols for the
deployment of cooling centers for vulnerable
populations;
``(iii) heat island and heat sink effect
reduction activities such as--
``(I) increasing urban canopies;
and
``(II) replacing natural assets
more suited to drought and warmer
climates;
``(iv) replacing infrastructure vulnerable
to the rapid deteriorating effects of intense
heat with better alternatives including natural
solutions;
``(v) restoration of natural infrastructure
such as forests to absorb heat effects;
``(vi) restoration and installment of
wetlands and marshes to retain moisture during
drought and intensely hot periods;
``(vii) increased urban green space that
works to reduce heat island effects;
``(viii) water conservation plans and
protocols designed for severe drought; and
``(ix) small business assistance program
assembly and planning for businesses likely to
be most impacted by drought.
``(C) Severe storms.--Funds may be applied to
mitigation and resilience for the following:
``(i) Straight-line winds and tornadic
activity.--Funds may be used for infrastructure
resilience activities that mitigate against
significant wind storms especially where there
is high vulnerability to utility systems that
may incur prolonged service interruption due to
canopy overgrowth and exposed transmission
links, including restoration of forests, tree
lines, and natural buffer zones designed to
channel, shield, and reduce wind damage to
critical infrastructure.
``(ii) Tropical cyclones.--Funds may be
used for infrastructure resilience activities
that mitigate against impacts associated with
tropical cyclones.
``(iii) Ice, snow, extreme cold.--Funds may
be used for infrastructure resilience
activities that mitigate against impacts
associated with winter storms, including--
``(I) physical improvement and
signage of evacuation routes;
``(II) establishment or improvement
of shelters or warming centers; and
``(III) insulating, relocating, or
rerouting critical infrastructure that
mitigates for exposure of utility and
public transportation assets to snow,
ice, and extreme cold.
``(D) Wildfires.--Funds may be applied to--
``(i) planning and protocols that reduce
the risk of wildfires, improve evacuation
routes, and better inform the public on
prevention of and response to wildfires;
``(ii) installation of built and natural
infrastructure that reduces the risk of
wildfires, including--
``(I) deployment of vegetation and
ecosystems that retain moisture during
long hot periods native to the region
such as marshes and wetlands, if
appropriate;
``(II) replacement of vegetation
native to the region more suited to
increased hot and dry periods;
``(III) physical improvement and
signage of evacuation routes;
``(IV) establishment or improvement
of evacuation centers;
``(V) training of first responders
and public safety personnel on how to
prevent, mitigate, and respond to
wildfires;
``(VI) acquisition of equipment and
supplies suited to mitigating and
responding to wildfires, including
acquisition of technology-based
solutions;
``(VII) activities that increase
the capacity of healthcare facilities
to treat wildfire-related injuries; and
``(VIII) activities that address
wildfire primary impacts such as from
burn and secondary impacts to property
and infrastructure.
``(E) Other catastrophic events.--
``(i) In general.--Eligible entities may
apply revolving loan funds toward resilience
and mitigation against a catastrophic event the
Administrator determines is either repetitive
or is highly likely to occur and endanger lives
and property unless overt action is taken.
``(ii) Catastrophic events.--Catastrophic
events include--
``(I) chemical spills into public
water supply reservoirs such as rivers,
lakes, or groundwater aquifers where
results could be life-threatening;
``(II) large-scale algae blooms in
a public surface water supply reservoir
such as a river or lake;
``(III) rupture of a hazardous
materials pipeline that transects
above, below, or through a public water
supply reservoir such as a river, lake,
or groundwater aquifers; and
``(IV) significant contact between
a land-based waste disposal site
currently housing a hazardous material
such as coal ash, mining material, or
manufacturing slag that may make a
water body toxic.
``(iii) Resilience activities.--Resilience
activities that are allowed under this section
may include--
``(I) strengthening or realignment
of surface transportation
infrastructure, including ports;
``(II) installation of emergency
shut-off valves within hazardous
material pipeline sections traversing
near or through public water supplies;
``(III) removal or relocating of
land-based waste disposal sites
currently housing a hazardous material
as long as the new site is not located
within a floodplain or in or near
geologic hazards such as earthquake
faults or areas prone to tsunami
liquification or landslides; and
``(IV) resilience to earthquakes.
``(4) Savings.--None of the mitigation revolving loan funds
may be used for the benefit of projects, activities or to
otherwise mitigate risk on Federal land or property.
``(e) Intended Use Plans.--
``(1) In general.--After providing the opportunity for
public review and comment, each participating entity shall
annually prepare a plan that identifies, for the year following
the date of issuance of the intended use plan, the intended
uses of the amounts available in the mitigation loan fund of
the participating entity.
``(2) Consultation during preparation.--Each participating
entity, in preparing an intended use plan, shall ensure that
the respective agency of the participating entity with primary
responsibility for emergency management--
``(A) provides oversight with respect to the
preparation of the intended use plan; and
``(B) consults with any other appropriate agency of
the participating entity, including agencies
responsible for coastal, environmental management, and
economic development.
``(3) Contents.--A participating entity shall, in each
intended use plan--
``(A) include--
``(i) an explanation of the mitigation and
resiliency benefits the participating entity
intends to achieve, including by--
``(I) reducing future damage and
loss associated with hazards included
in subsection (d)(3);
``(II) reducing the number of
severe repetitive loss properties and
repetitive loss structures in the
participating entity's jurisdiction;
``(III) decreasing the number of
insurance claims; and
``(IV) increasing the rating under
the Community Rating System for
communities in the geographical
jurisdiction of the participating
entity;
``(ii) information with respect to the
availability of, and the application process
for receiving, financial assistance from the
mitigation loan fund;
``(iii) the criteria and methods
established for the distribution of amounts
from the mitigation loan fund;
``(iv) the amount of financial assistance
that the participating entity anticipates
allocating to--
``(I) local government projects;
and
``(II) projects benefitting
homeowners, business, or nonprofit
organizations;
``(v) the expected terms of the assistance
provided under clause (iv); and
``(vi) a description of the financial
status of the mitigation loan fund and the
short-term and long-term goals of the
mitigation loan fund; and
``(B) provide, to the maximum extent practicable,
that priority for the use of amounts from the
mitigation loan fund shall be given to projects that--
``(i) address severe repetitive loss
properties and repetitive loss structures;
``(ii) assist low-income homeowners and
low-income geographic areas; and
``(iii) assist vulnerable populations
including residential facilities with assisted
living, group homes for the elderly, or
emotional or physically disabled.
``(4) Publication.--Each participating entity shall publish
and periodically update a list of all projects receiving
funding from the mitigation loan fund of the participating
entity, which shall include--
``(A) the location of each project;
``(B) the type and amount of assistance provided
for each project; and
``(C) the expected funding schedule and date of
completion of each project.
``(f) Fund Management.--Amounts in a mitigation loan fund shall--
``(1) remain available for providing financial assistance
under this section until distributed;
``(2) if the amounts are not required for immediate
distribution or expenditure, be invested in interest-bearing
obligations; and
``(3) except as provided in subsection (i), include only--
``(A) amounts received from capitalization grants
made under this section;
``(B) repayments of loans made from the fund;
``(C) interest earned on amounts in the fund; and
``(D) the matching funds required under subsection
(g).
``(g) Matching Funds.--On or before the date on which a
participating entity receives a capitalization grant, the entity shall
deposit into the mitigation loan fund of the entity, in addition to the
amount of the capitalization grant, an amount from non-Federal sources
that is not less than 10 percent of the total amount of the
capitalization grant.
``(h) Types of Assistance.--Unless otherwise prohibited by law, a
participating entity may use the amounts deposited into a mitigation
loan fund under this section only--
``(1) to make a loan, on the condition that--
``(A) the interest rate for the loan is not more
than 50 percent of the market interest rate;
``(B) the recipient of the loan will begin making
principal and interest payments on the loan not later
than 1 year after the date on which the project for
which the loan was made is completed;
``(C) the loan will be fully amortized not later
than 20 years after the date on which the project for
which the loan was made is completed, except that, in
the case of a loan made for a project in a low-income
geographic area, for a low-income homeowner or to
assist vulnerable populations including residential
facilities with assisted living, group homes for the
elderly, or emotionally or physically disabled, the
participating entity may provide a longer amortization
period for the loan if that longer period--
``(i) ends on a date that is not later than
30 years after the date on which the project is
completed; and
``(ii) is not longer than the expected
design life of the project;
``(D) the eligible recipient of the loan
demonstrates that there is a dedicated source of
revenue or adequate income to repay the loan; and
``(E) payments of principal and interest with
respect to the loan will be deposited into the
mitigation loan fund;
``(2) to buy or refinance the debt obligation of a local
government at an interest rate that is not more than the market
interest rate;
``(3) to guarantee, or purchase insurance for, a local
obligation, the proceeds of which finance a project eligible
for assistance under this section, if the guarantee or
purchase, as applicable, would--
``(A) improve credit market access; or
``(B) reduce the interest rate with respect to the
obligation;
``(4) as a source of revenue or as security for the payment
of principal and interest on revenue or general obligation
bonds issued by the participating entity if the proceeds of the
sale of the bonds will be deposited into the mitigation loan
fund; or
``(5) to earn interest on those amounts.
``(i) Administration of Fund.--
``(1) In general.--A participating entity may combine the
financial administration of a mitigation loan fund with the
financial administration of any other revolving fund
established by the entity if--
``(A) combining the administration of the funds
would--
``(i) be convenient and avoid
administrative costs; and
``(ii) not violate the law of the
participating entity; and
``(B) the Administrator determines that--
``(i) amounts obtained from a grant made
under this section, amounts obtained from the
repayment of a loan made from a mitigation loan
fund, and interest earned on amounts in a
mitigation loan fund will be--
``(I) accounted for separately from
amounts from other revolving funds; and
``(II) used only for purposes
authorized under this section; and
``(ii) after consulting with the
appropriate agencies of the participating
entity, the authority to establish assistance
priorities and carry out oversight and related
activities, other than financial
administration, with respect to mitigation
assistance remains with the agency of the
participating entity with primary
responsibility for emergency management.
``(2) Administrative and technical costs.--
``(A) In general.--For each fiscal year, a
participating entity may use the amount described in
subparagraph (B) to--
``(i) pay the reasonable costs of
administration of the programs under this
section, including the recovery of reasonable
costs incurred in establishing a mitigation
loan fund;
``(ii) provide appropriate oversight of
projects authorized under this section; and
``(iii) provide technical assistance
training and outreach to recipients in the
geographical jurisdiction of the participating
entity of amounts under this section, including
with respect to updating hazard mitigation
plans and participating in the Community Rating
System, in an amount that is not more than 5
percent of the funds made available to the
entity under this section.
``(B) Description.--The amount described in this
subparagraph is an amount equal to the sum of--
``(i) any fees collected by a participating
entity to recover the costs described in
subparagraph (A)(i), regardless of the source;
and
``(ii) the greatest of--
``(I) $100,000;
``(II) 1.0 percent of the value of
the mitigation loan fund, as of the
date on which the valuation is made;
and
``(III) an amount equal to 2.0
percent of all grant awards made to a
participating entity for the mitigation
loan fund under this section for the
fiscal year.
``(3) Audit and report.--
``(A) Audit requirement.--Not less frequently than
every 2 years, each participating entity shall conduct
an audit of the mitigation loan fund of the entity.
``(B) Report.--Each participating entity shall
submit to the Administrator a biennial report regarding
the activities of the participating entity under this
section during the period covered by the report,
including--
``(i) the result of any audit conducted by
the participating entity under subparagraph
(A); and
``(ii) a review of the effectiveness of the
mitigation loan fund of the entity with respect
to--
``(I) the intended use plans of the
entity; and
``(II) meeting the objectives
described in subsection (b)(1).
``(4) Oversight.--In conducting oversight with respect to
mitigation loan funds established under this section, the
Administrator--
``(A) shall--
``(i) periodically audit the funds in
accordance with procedures established by the
Comptroller General of the United States; and
``(ii) not less frequently than once every
4 years, review each mitigation loan fund to
determine the effectiveness of the fund in
reducing hazard risk; and
``(B) may, at any time--
``(i) make recommendations to a
participating entity with respect to the
administration of the mitigation loan fund of
the entity; or
``(ii) require specific changes with
respect to a mitigation loan fund in order to
improve the effectiveness of the fund.
``(j) Regulations.--The Administrator shall issue guidance or
regulations as may be necessary to carry out this section, including
guidance or regulations that--
``(1) ensure that each participating entity to which funds
are allocated under this section uses the funds as efficiently
as possible;
``(2) reduce, to the maximum extent practicable, waste,
fraud, and abuse with respect to the implementation of this
section;
``(3) ensure compliance with the requirements of this
section; and
``(4) require any party that receives funds directly or
indirectly under this section, including a participating entity
and an eligible recipient of amounts from a mitigation loan
fund, to use procedures with respect to the management of the
funds that conform to generally accepted accounting standards.
``(k) Funding.--The President may make contributions from the
Disaster Relief Fund in order to provide financial assistance under
this section. Such contribution shall be deemed to be related to
activities carried out pursuant to a major disaster under this Act.
``(l) Duplication of Benefits.--The financial assistance provided
pursuant to this section to participating entities, and the loans made
to eligible recipients shall not be determined to be a duplication of
assistance.''.
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