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116th Congress     }                                   {      Report
                        HOUSE OF REPRESENTATIVES
 2d Session        }                                   {      116-486

======================================================================



 
               RESILIENCE REVOLVING LOAN FUND ACT OF 2019

                                _______
                                

 September 4, 2020.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. DeFazio, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3779]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 3779) 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 eligible entities to establish 
revolving funds to provide assistance to reduce disaster risks, 
and for other purposes, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     5
Background and Need for Legislation..............................     6
Hearings.........................................................     7
Legislative History and Consideration............................     8
Committee Votes..................................................     8
Committee Oversight Findings.....................................     8
New Budget Authority and Tax Expenditures........................     8
Congressional Budget Office Cost Estimate........................     8
Performance Goals and Objectives.................................    11
Duplication of Federal Programs..................................    11
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................    12
Federal Mandates Statement.......................................    12
Preemption Clarification.........................................    12
Advisory Committee Statement.....................................    12
Applicability to Legislative Branch..............................    12
Section-by-Section Analysis of the Legislation...................    12
Changes in Existing Law Made by the Bill, as Reported............    13

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Resilience Revolving Loan Fund Act of 
2019''.

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 claims; 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 
                an escalating 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 paragraph (2) into account.
                  ``(D) A description about how the projects described 
                in paragraph (1) could conform with the hazard 
                mitigation plans of the entity and local governments.
                  ``(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, 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), 
        an entity loan fund shall be administered by the agency 
        responsible for emergency management for such entity and shall 
        include only--
                  ``(A) funds provided by a capitalization grant under 
                this section;
                  ``(B) repayments of loans under this section to the 
                entity loan fund; and
                  ``(C) 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 agency responsible for emergency 
                management for the entity.
          ``(4) Entity share of funds.--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.
  ``(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--
                  ``(A) administrative costs incurred in carrying out 
                this section; and
                  ``(B) providing technical assistance to participating 
                entities under subsection (b)(2).
          ``(3) Priority.--In the apportionment of capitalization 
        grants under this subsection, the Administrator shall give 
        priority to entity applications under subsection (b) that--
                  ``(A) propose projects increasing resilience and 
                reducing risk of harm to natural and built 
                infrastructure;
                  ``(B) involve a partnership between 2 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, bays, coastal regions, and 
                areas vulnerable to earthquake, drought, tsunamis and 
                wildfire, including the wildland-urban interface; or
                  ``(D) propose projects for the resilience of major 
                economic sectors or critical national infrastructure, 
                including ports, global commodity supply chain assets 
                (located within an entity or within the jurisdiction of 
                local governments and tribal governments), capacity, 
                power and water production and distribution centers, 
                and bridges and waterways essential to interstate 
                commerce.
  ``(e) 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 1.5 percent;
                          ``(ii) annual principal and interest payments 
                        will commence not later than 1 year after 
                        completion of any project and all loans 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 
                                projects is completed and not longer 
                                than the expected design life of the 
                                project;
                          ``(iii) the local government receiving a loan 
                        establishes a dedicated source of revenue for 
                        repayment of the loan;
                          ``(iv) the local government receiving a loan 
                        has a hazard mitigation plan that has been 
                        approved by the participating entity; and
                          ``(v) the entity loan fund will be credited 
                        with all payments of principal and interest on 
                        all loans;
                  ``(B) for mitigation planning, 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, Administrator may 
        not determine that a loan is a duplication of assistance or a 
        duplication of programs.
          ``(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 hazards, including--
                  ``(A) drought and prolonged episodes of intense heat;
                  ``(B) severe storms, including 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 the Administrator, in 
                consultation with the 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) storm surges;
                  ``(G) chemical spills that present an imminent threat 
                to life and property;
                  ``(H) seepage resulting from chemical spills and 
                flooding; and
                  ``(I) any catastrophic event that the entity 
                determines appropriate.
          ``(4) Zoning and land use planning changes.--A participating 
        entity may use not more than 10 percent of the entity loan fund 
        in a fiscal year to provide financial assistance for 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 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
                  ``(C) 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) 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;
                  ``(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.
          ``(6) Limitation for single projects.--A participating entity 
        may not provide an amount equal to or more than $5,000,000 to a 
        single hazard mitigation project.
  ``(f) Intended Use Plans.--
          ``(1) In general.--After providing for public comment and 
        review, and consultation with appropriate agencies in an 
        entity, 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 hazards; and
                          ``(iv) increasing the rating under the 
                        community rating system under section 1315(b) 
                        of the Housing and Urban Development 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.
  ``(g) 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 such fund established under 
                subsection (b); 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 (e).
          ``(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 hazard risk.
                  ``(B) GAO requirements.--The entity shall conduct 
                audits under paragraph (1) in accordance with the 
                auditing procedures of the Government Accountability 
                Office, including chapter 75 of title 31.
                  ``(C) Recommendations by administrator.--The 
                Administrator may at any time make recommendations for 
                or require specific changes to an entity's loan fund in 
                order to improve the effectiveness of the fund.
  ``(h) 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; and
          ``(2) reduce waste, fraud, and abuse to the maximum extent 
        possible.
  ``(i) Waiver Authority.--Until such time as the Administrator issues 
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.
  ``(j) Definitions.--In this section, the following definitions apply:
          ``(1) Eligible entity.--The term `eligible entity' means a 
        State or an Indian tribal government (as such terms are defined 
        in section 102 of this Act (42 U.S.C. 5122)).
          ``(2) Hazard mitigation plan.--The term `hazard mitigation 
        plan' means a mitigation plan submitted under section 322 and 
        approved by the Administrator.
          ``(3) 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)).
          ``(4) Participating entity.--The term `participating entity' 
        means an eligible entity that has entered into an agreement 
        under this section.
          ``(5) Repetitive loss structure.--The term `repetitive loss 
        structure' has the meaning given the term in section 1370 of 
        the National Flood Insurance Act (42 U.S.C. 4121).
          ``(6) 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 (42 U.S.C. 
        4104c(h).
          ``(7) 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).
  ``(k) Authorization of Appropriations.--There is authorized to be 
appropriated $100,000,000 for each of fiscal years 2020 and 2021.''.

                         Purpose of Legislation

    The purpose of H.R. 3779, as amended, is to establish a 
state revolving loan fund program to facilitate funding of 
mitigation projects that reduce the risks and costs of natural 
disasters.

                  Background and Need for Legislation

    Sources of Federal funding for proactive, predisaster 
mitigation are highly competitive and limited due to the 
significant volume of identified and necessary hazard 
mitigation projects across the Nation.
    Under the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (Stafford Act, Pub.L. 93-288, as amended), 
options for mitigation assistance include the Pre-Disaster 
Mitigation (PDM)\1\ program and the Hazard Mitigation Grant 
Program (HMGP).\2\ With the Sandy Recovery Improvement Act 
(Division B of Pub.L. 113-2), the Committee provided 
flexibility in using Federal Emergency Management Agency's 
(FEMA) Public Assistance program to rebuild following a 
disaster,\3\ there is only a single FEMA pre-disaster 
mitigation program providing communities with resources to fund 
projects before disaster strikes in order to prevent or lessen 
damage from a future hazard event.
---------------------------------------------------------------------------
    \1\Stafford Act, Sec. 203.
    \2\Stafford Act, Sec. 404.
    \3\Stafford Act, Sec. 428.
---------------------------------------------------------------------------
    While the Disaster Recovery Reform Act of 2018 (Division D 
of Pub.L. 115-254) provides a more consistent source of funds 
for FEMA's PDM program and allows for additional projects to 
receive Federal assistance, the outstanding need for pre-
disaster mitigation projects still surpasses projected funding.
    Strengthening mitigation practices is critical to reducing 
the future costs of disasters for the taxpayer; studies have 
shown for every $1 spent in mitigation, between $4 and $8 is 
saved in avoided disaster recovery costs.\4\ Providing 
additional solutions for communities to mitigate against 
disasters will reduce costs and save lives.
---------------------------------------------------------------------------
    \4\See Congressional Budget Office, ``Potential Cost Savings from 
the Pre-Disaster Mitigation Program,'' September 2007; University of 
Pennsylvania, Wharton School Risk Center, ``Economic Effectiveness of 
Implementing a Statewide Building Code: The Case of Florida,'' May 
2016; National Institute of Building Sciences (NIBS), ``Natural Hazard 
Mitigation Saves: 2017 Interim Report Summary of Findings,'' available 
at https://www.nibs.org/page/ms2_dwnload.
---------------------------------------------------------------------------
    Examining the use and application of revolving loan funds 
suggests such funds may provide communities with additional 
flexibility to fund mitigation projects while replenishing the 
initial funding through repayments. For example, Congress has 
authorized and appropriated dollars for similar state revolving 
funds for projects that have resulted in a significant increase 
in the capacity and capabilities of water infrastructure in 
communities across the Nation.
    Investment in mitigation projects and activities has a 
significant and measurable return on investment in reducing 
recovery costs following hazard events. To reduce the rising 
costs associated with disaster response and recovery, 
additional Federal funding streams dedicated to pre-disaster 
mitigation are necessary.
    H.R. 3779, as amended, would amend the Stafford Act by 
authorizing capitalization grants and establishing a state-
managed revolving loan fund program to allow states to offer 
low-interest loans to eligible local entities for mitigation 
projects, with the repayment of the loans providing capital for 
subsequent projects. Participating entities would be provided 
additional flexibilities in the nature and types of eligible 
projects to further mitigate the impacts of natural disasters 
such as earthquakes, flooding, and wildfires, as well as non-
natural events like chemical spills. For example, existing FEMA 
hazard mitigation programs restrict Public Assistance 
mitigation funds if projects may accrue to the benefit of 
homeowners and businesses. This can create challenges, 
particularly in rural areas with lower populations and large 
amounts of farmland. The revolving loan fund is specifically 
intended to reduce risks for homeowners, businesses, nonprofit 
organizations, and communities. H.R. 3779, as amended, also 
explicitly ensures eligibility for non-Federal levees and other 
flood control measures.

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress the following hearings were used to develop or 
consider H.R. 3779, as amended:
    On February 26, 2019, the Committee on Transportation and 
Infrastructure held a hearing entitled, ``Examining How Federal 
Infrastructure Policy Could Help Mitigate and Adapt to Climate 
Change.'' The Committee received testimony from Dr. Daniel 
Sperling, Board Member, California Air Resources Board; Mr. Ben 
Prochazka; Vice President, Electrification Coalition; Ms. Vicki 
Arroyo, Executive Director, Georgetown Climate Center; Mr. 
James M. Proctor, II, Senior Vice President and General 
Counsel, McWane, Inc., testifying on behalf of the Build Strong 
Coalition; Mr. Kevin DeGood, Director, Infrastructure Policy, 
Center for American Progress; Ms. Lynn Scarlett, Vice 
President, Policy and Government Affairs, The Nature 
Conservancy; and Dr. Whitley J. Saumweber, Director, Stephenson 
Ocean Security (SOS) Project, Center for Strategic and 
International Studies. Topics discussed included impacts of 
severe weather events and rising costs of federal response and 
recovery operations.
    On May 22, 2019, the Subcommittee on Economic Development, 
Public Buildings, and Emergency Management held a hearing 
titled ``Disaster Preparedness: DRRA Implementation and FEMA 
Readiness.'' The Subcommittee received testimony from Dr. 
Daniel Kaniewski, Deputy Administrator for Resilience, Federal 
Emergency Management Agency, U.S. Department of Homeland 
Security; Ms. Sima Merick, Executive Director, Ohio Emergency 
Management Agency, testifying on behalf of the National 
Emergency Management Association; Mr. Nicholas L. Crossley, 
Director, Emergency Management and Homeland Security Agency, 
Hamilton County, Ohio, testifying on behalf of the 
International Association of Emergency Managers; Hon. James 
Gore, Supervisor, 4th District, Sonoma County, California, 
testifying on behalf of the National Association of Counties, 
Ms. Pamela S. Williams, Executive Director, BuildStrong 
Coalition; Mr. Alphonse Davis, Deputy Director, Engineering 
Extension Service, Texas A&M, testifying on behalf of the 
National Domestic Preparedness Consortium; and Mr. Randy Noel, 
President, Reve, Inc., testifying on behalf of the National 
Association of Home Builders. Topics discussed included the 
state of federal disaster preparedness programs since the 
enactment of the Disaster Recovery Reform Act of 2018, the 
status of federal disaster recovery assistance funding 
appropriated in the wake of major disaster declarations granted 
by the President from 2017-2019, and the increasing frequency 
of extreme weather-related hazards.

                 Legislative History and Consideration

    H.R. 3779 was introduced in the House on July 16, 2019, by 
Ms. Craig and referred to the Committee on Transportation and 
Infrastructure. Within the Committee, H.R. 3779 was referred to 
the Subcommittee on Economic Development, Public Buildings, and 
Emergency Management.
    The Chair discharged the Subcommittee on Economic 
Development, Public Buildings, and Emergency Management from 
further consideration of H.R. 3779 on September 19, 2019.
    The Committee met in open session to consider H.R. 3779 on 
September 19, 2019, and ordered the measure to be reported to 
the House with a favorable recommendation, as amended, by voice 
vote, a quorum being present.
    The following amendments were offered:
    An Amendment in the Nature of a Substitute offered by Ms. 
Craig (#1); was AGREED TO, as amended, by voice vote.
    An amendment to the Amendment in the Nature of a Substitute 
offered by Mr. Rodney Davis of Illinois (#1A) was AGREED TO by 
voice vote.

          Page 11, strike lines 17 through 24 (and redesignate 
        accordingly).
          Page 17, strike lines 11 through 14 (and redesignate 
        accordingly).;

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against.
    There were no recorded votes taken in connection with 
consideration of H.R. 3779.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

               Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
402 of the Congressional Budget Act of 1974, the Committee has 
received the enclosed cost estimate for H.R. 3779, as amended, 
from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 19, 2020.
Hon. Peter A. DeFazio,
Chairman, Committee on Transportation and Infrastructure,
House, of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3779, the 
Resilience Revolving Loan Fund Act of 2019.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jon Sperl.
            Sincerely,
                                             Mark P. Hadley
                                 (For Phillip L. Swagel, Director).
    Enclosure.

    {GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT}
    

    The bill would
           Authorize the appropriation of $200 million 
        for the Federal Emergency Management Agency to make 
        grants to capitalize new revolving funds administered 
        by states, from which state agencies would make low-
        interest loans to local governments, communities, 
        homeowners, and owners of other property to finance 
        projects that would mitigate damage from future 
        disasters
    Estimated budgetary effects would primarily stem from
           Spending of the authorized and necessary 
        amounts
           Revenue loss from issuing additional tax 
        exempt bonds
    Bill summary: H.R. 3779 would authorize the appropriation 
of $100 million in each of 2020 and 2021 for the Federal 
Emergency Management Agency (FEMA) to make grants to capitalize 
new revolving funds administered by states. From those 
revolving funds, state agencies would make low-interest loans 
to local governments, communities, homeowners, and owners of 
other property to finance projects that would mitigate damage 
from future disasters.
    Estimated Federal cost: The estimated budgetary effect of 
H.R. 3779 is shown in Table 1. The costs of the legislation 
fall within budget function 450 (community and regional 
development).

                               TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 3779
----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, millions of dollars--
                                                            ----------------------------------------------------
                                                              2020   2021   2022   2023   2024   2025  2020-2025
----------------------------------------------------------------------------------------------------------------
                                 Increases in Spending Subject to Appropriation
 
Grants for Hazard Mitigation:
    Authorization..........................................    100    100      0      0      0      0       200
    Estimated Outlays......................................      *      7     37     78     78      0       200
Additional Administrative Costs:
    Estimated Authorization................................      1      1      2      5      5      0        14
    Estimated Outlays......................................      1      1      2      5      5      0        14
    Total Changes:
        Estimated Authorization............................    101    101      2      5      5      0       214
        Estimated Outlays..................................      1      8     39     83     83      0       214
 
                                              Decreases in Revenues
 
Estimated Revenuesa........................................      0      0     -1     -2     -3     -4       -10
----------------------------------------------------------------------------------------------------------------
* = between $500,000 and zero.
a Estimate provided by the staff of the Joint Committee on Taxation.

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted in 2020. Estimated outlays are 
based on historical spending patterns for similar programs.
    Spending subject to appropriation: CBO estimates that 
implementing H.R. 3779 would cost $214 million over the 2020-
2025 period, assuming appropriation of the authorized and 
necessary amounts.
    State Revolving Funds for Disaster Mitigation. H.R. 3779 
would authorize the appropriation of $100 million annually in 
2020 and 2021 for FEMA to make grants to states to capitalize 
new revolving funds; CBO estimates that those amounts would be 
spent over the 2020-2025 period. To receive assistance under 
the bill, states would need to contribute 10 percent of the 
amount of a federal grant to its revolving fund.
    To implement the bill, CBO expects that FEMA would need 
about 18 months to hire new employees, establish the required 
auditing and reporting processes, issue program regulations, 
and review grant applications from states.
    CBO expects that FEMA would gradually increase the number 
of grants it would make through 2024. Estimated outlays are 
based on historical spending patterns for similar state 
revolving fund programs administered by other federal agencies. 
CBO expects that states would use most of their revolving funds 
to assist local governments with infrastructure projects, such 
as projects that control flooding. The bill also would allow 
recipients to use small portions of assistance to develop 
zoning and land use plans and to enforce updated building 
codes.
    Administrative Costs. H.R 3779 would authorize FEMA to use 
up to 2.5 percent of amounts authorized by the bill, or a total 
of $5 million, to pay administrative costs. However, based on 
information from FEMA, CBO estimates that the agency would need 
additional amounts each year over the 2020-2024 period to fully 
implement the program; CBO estimates the additional amounts 
required for administrative costs would increase over the next 
five years as FEMA provides more grants. In total, CBO 
estimates that FEMA would need an additional $14 million over 
the 2020-2025 period. Those amounts would cover the cost of 
employing 10 new staff members, contract support, technical 
assistance to states, and other operating costs.
    Revenues: The staff of the Joint Committee on Taxation 
(JCT) expects that states would use a portion of the 
capitalization grants to leverage additional funds by issuing 
tax-exempt bonds. JCT estimates that, as a result, H.R. 3779 
would reduce federal revenues by $30 million over the 2020-2030 
period.
    Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in revenues that are subject to those 
pay-as-you-go procedures are shown in Table 2.

  TABLE 2.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 3779, RESILIENCE REVOLVING LOAN FUND ACT OF 2019, AS ORDERED REPORTED BY THE
                                       HOUSE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE ON SEPTEMBER 19, 2019
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     By fiscal year, millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2020   2021   2022   2023   2024   2025   2026   2027   2028   2029   2030  2020-2025  2020-2030
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Net Increase in the Deficit
 
Pay-As-You Go Effect.................................      0      0      1      2      3      4      4      4      4      4      4        10         30
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term deficits: CBO estimates that enacting 
H.R. 3779 would not increase deficits by more than $5 billion 
in any of the consecutive 10-year periods beginning in 2031.
    Mandates: None.
    Estimate prepared by: Federal costs: Jon Sperl; Mandates: 
Rachel Austin; Revenues: The staff of the Joint Committee on 
Taxation.
    Estimate reviewed by: Kim P. Cawley, Chief, Natural and 
Physical Resources Cost Estimates Unit; H. Samuel Papenfuss, 
Deputy Director of Budget Analysis.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goal and objective of this legislation is to 
increase resiliency by providing States with the resources to 
proactively mitigate the impacts of future disasters.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 3779, as amended, establishes or reauthorizes a program 
of the federal government known to be duplicative of another 
federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with clause 9 of rule XXI of the Rules of the 
House of Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule 
XXI.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee finds that H.R. 3779, as amended, 
does not preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

       Section-by-Section Analysis of the Legislation, as Amended


Section 1. Short title

    This section states that the bill may be cited as the 
``Resilience Revolving Loan Fund Act of 2019.''

Sec. 2. Grants to entities for establishment of hazard mitigation 
        revolving loan funds

    This section authorizes the FEMA Administrator to enter 
into agreements with State and tribal governments to make 
capitalization grants for the establishment of hazard 
mitigation revolving loan funds to reduce disaster risk to 
decrease the loss of life and property, the cost of insurance 
claims, and Federal disaster payments.
    Priority is given to project applications aimed at 
increasing resilience and reducing risk of harm to natural and 
built infrastructure, partnership projects, and projects for 
the resilience of major economic sectors or critical national 
infrastructure.
    Eligible entities would be required to put down 10 percent 
of the capitalization grant upon disbursement of the loan. The 
Administrator may not reserve more than 2.5 percent of funds 
available for administrative costs, technical assistance, and 
grants to insular areas.
    The new capitalization grants are authorized to be 
appropriated at $100,000,000 per fiscal year for the period of 
two years.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

    ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT




           *       *       *       *       *       *       *
TITLE II--DISASTER PREPAREDNESS AND MITIGATION ASSISTANCE

           *       *       *       *       *       *       *


SEC. 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 claims; 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 an escalating 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 
                paragraph (2) into account.
                  (D) A description about how the projects 
                described in paragraph (1) could conform with 
                the hazard mitigation plans of the entity and 
                local governments.
                  (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, 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), an entity loan fund shall be administered by the 
        agency responsible for emergency management for such 
        entity and shall include only--
                  (A) funds provided by a capitalization grant 
                under this section;
                  (B) repayments of loans under this section to 
                the entity loan fund; and
                  (C) 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 agency 
                responsible for emergency management for the 
                entity.
          (4) Entity share of funds.--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.
  (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--
                  (A) administrative costs incurred in carrying 
                out this section; and
                  (B) providing technical assistance to 
                participating entities under subsection (b)(2).
          (3) Priority.--In the apportionment of capitalization 
        grants under this subsection, the Administrator shall 
        give priority to entity applications under subsection 
        (b) that--
                  (A) propose projects increasing resilience 
                and reducing risk of harm to natural and built 
                infrastructure;
                  (B) involve a partnership between 2 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, 
                bays, coastal regions, and areas vulnerable to 
                earthquake, drought, tsunamis and wildfire, 
                including the wildland-urban interface; or
                  (D) propose projects for the resilience of 
                major economic sectors or critical national 
                infrastructure, including ports, global 
                commodity supply chain assets (located within 
                an entity or within the jurisdiction of local 
                governments and tribal governments), capacity, 
                power and water production and distribution 
                centers, and bridges and waterways essential to 
                interstate commerce.
  (e) 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 1.5 
                        percent;
                          (ii) annual principal and interest 
                        payments will commence not later than 1 
                        year after completion of any project 
                        and all loans 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 projects is 
                                completed and not longer than 
                                the expected design life of the 
                                project;
                          (iii) the local government receiving 
                        a loan establishes a dedicated source 
                        of revenue for repayment of the loan;
                          (iv) the local government receiving a 
                        loan has a hazard mitigation plan that 
                        has been approved by the participating 
                        entity; and
                          (v) the entity loan fund will be 
                        credited with all payments of principal 
                        and interest on all loans;
                  (B) for mitigation planning, 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, 
        Administrator may not determine that a loan is a 
        duplication of assistance or a duplication of programs.
          (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 hazards, 
        including--
                  (A) drought and prolonged episodes of intense 
                heat;
                  (B) severe storms, including 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 the 
                Administrator, in consultation with the 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) storm surges;
                  (G) chemical spills that present an imminent 
                threat to life and property;
                  (H) seepage resulting from chemical spills 
                and flooding; and
                  (I) any catastrophic event that the entity 
                determines appropriate.
          (4) Zoning and land use planning changes.--A 
        participating entity may use not more than 10 percent 
        of the entity loan fund in a fiscal year to provide 
        financial assistance for 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 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
                  (C) 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) 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;
                  (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.
          (6) Limitation for single projects.--A participating 
        entity may not provide an amount equal to or more than 
        $5,000,000 to a single hazard mitigation project.
  (f) Intended Use Plans.--
          (1) In general.--After providing for public comment 
        and review, and consultation with appropriate agencies 
        in an entity, 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 hazards; and
                          (iv) increasing the rating under the 
                        community rating system under section 
                        1315(b) of the Housing and Urban 
                        Development 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.
  (g) 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 such fund established 
                under subsection (b); 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 (e).
          (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 hazard 
                risk.
                  (B) GAO requirements.--The entity shall 
                conduct audits under paragraph (1) in 
                accordance with the auditing procedures of the 
                Government Accountability Office, including 
                chapter 75 of title 31.
                  (C) Recommendations by administrator.--The 
                Administrator may at any time make 
                recommendations for or require specific changes 
                to an entity's loan fund in order to improve 
                the effectiveness of the fund.
  (h) 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; and
          (2) reduce waste, fraud, and abuse to the maximum 
        extent possible.
  (i) Waiver Authority.--Until such time as the Administrator 
issues 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.
  (j) Definitions.--In this section, the following definitions 
apply:
          (1) Eligible entity.--The term ``eligible entity'' 
        means a State or an Indian tribal government (as such 
        terms are defined in section 102 of this Act (42 U.S.C. 
        5122)).
          (2) Hazard mitigation plan.--The term ``hazard 
        mitigation plan'' means a mitigation plan submitted 
        under section 322 and approved by the Administrator.
          (3) 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)).
          (4) Participating entity.--The term ``participating 
        entity'' means an eligible entity that has entered into 
        an agreement under this section.
          (5) Repetitive loss structure.--The term ``repetitive 
        loss structure'' has the meaning given the term in 
        section 1370 of the National Flood Insurance Act (42 
        U.S.C. 4121).
          (6) 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 (42 U.S.C. 4104c(h).
          (7) 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).
  (k) Authorization of Appropriations.--There is authorized to 
be appropriated $100,000,000 for each of fiscal years 2020 and 
2021.

           *       *       *       *       *       *       *


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