134 STAT. 4869 PUBLIC LAW 116–284—JAN. 1, 2021 Public Law 116–284 116th Congress An Act To amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to allow the Administrator of the Federal Emergency Management Agency to provide capitalization grants to States to establish revolving funds to provide hazard mitigation assistance to reduce risks from disasters and natural hazards, and other related environmental harm. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Safeguarding Tomorrow through Ongoing Risk Mitigation Act’’ or the ‘‘STORM Act’’. SEC. 2. GRANTS TO ENTITIES FOR ESTABLISHMENT OF HAZARD MITI- GATION 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 agree- ments 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 dis- aster risks for homeowners, businesses, nonprofit organizations, and communities in order to decrease— ‘‘(A) the loss of life and property; ‘‘(B) the cost of insurance; and ‘‘(C) Federal disaster payments. ‘‘(2) AGREEMENTS.—Any agreement entered into under this section shall require the participating entity to— ‘‘(A) comply with the requirements of this section; and ‘‘(B) use accounting, audit, and fiscal procedures con- forming 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. Proposals. Notice. Deadline. Procedures. Compliance. Requirements. 42 USC 5135. 42 USC 5121 note. Safeguarding Tomorrow through Ongoing Risk Mitigation Act. Jan. 1, 2021 [S. 3418] VerDate Sep 11 2014 13:03 Mar 24, 2021 Jkt 019139 PO 00284 Frm 00001 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL284.116 PUBL284 whamilton on LAPJF8D0R2PROD with PUBLAW 134 STAT. 4870 PUBLIC LAW 116–284—JAN. 1, 2021 ‘‘(B) An assessment of recurring major disaster vulnerabilities impacting the entity that demonstrates a risk to life and property. ‘‘(C) A description of how the hazard mitigation plan of the entity has or has not taken the vulnerabilities described in subparagraph (B) into account. ‘‘(D) A description about how the projects described in subparagraph (A) could conform with the hazard mitiga- tion plan of the entity and of the unit of local government. ‘‘(E) A proposal of the systematic and regional approach to achieve resilience in a vulnerable area, including impacts to river basins, river corridors, watersheds, estuaries, bays, coastal regions, micro-basins, micro-watersheds, eco- systems, and areas at risk of earthquakes, tsunamis, droughts, severe storms, and wildfires, including the wildland-urban interface. ‘‘(2) TECHNICAL ASSISTANCE.—The Administrator shall pro- vide 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 sub- section. ‘‘(2) FUND MANAGEMENT.—Except as provided in paragraph (3), entity loan funds shall— ‘‘(A) be administered by the agency responsible for emergency management; and ‘‘(B) include only— ‘‘(i) funds provided by a capitalization grant under this section; ‘‘(ii) repayments of loans under this section to the entity loan fund; and ‘‘(iii) interest earned on amounts in the entity loan fund. ‘‘(3) ADMINISTRATION.—A participating entity may combine the financial administration of the entity loan fund of such entity with the financial administration of any other revolving fund established by such entity if the Administrator determines that— ‘‘(A) the capitalization grant, entity share, repayments of loans, and interest earned on amounts in the entity loan fund are accounted for separately from other amounts in the revolving fund; and ‘‘(B) the authority to establish assistance priorities and carry out oversight activities remains in the control of the entity agency responsible for emergency management. ‘‘(4) ENTITY SHARE OF FUNDS.— ‘‘(A) IN GENERAL.—On or before the date on which a participating entity receives a capitalization grant under this section, the entity shall deposit into the entity loan fund of such entity, an amount equal to not less than 10 percent of the amount of the capitalization grant. ‘‘(B) REDUCED GRANT.—If, with respect to a capitaliza- tion grant under this section, a participating entity deposits in the entity loan fund of the entity an amount that is Time period. Determination. Proposal. Assessment. VerDate Sep 11 2014 13:03 Mar 24, 2021 Jkt 019139 PO 00284 Frm 00002 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL284.116 PUBL284 whamilton on LAPJF8D0R2PROD with PUBLAW 134 STAT. 4871 PUBLIC LAW 116–284—JAN. 1, 2021 less than 10 percent of the total amount of the capitaliza- tion grant that the participating entity would otherwise receive, the Administrator shall reduce the amount of the capitalization grant received by the entity to the amount that is 10 times the amount so deposited. ‘‘(d) APPORTIONMENT.— ‘‘(1) IN GENERAL.—Except as otherwise provided by this subsection, the Administrator shall apportion funds made avail- able to carry out this section to entities that have entered into an agreement under subsection (a)(2) in amounts as deter- mined by the Administrator. ‘‘(2) RESERVATION OF FUNDS.—The Administrator shall reserve not more than 2.5 percent of the amount made available to carry out this section for the Federal Emergency Manage- ment Agency for— ‘‘(A) administrative costs incurred in carrying out this section; ‘‘(B) providing technical assistance to participating entities under subsection (b)(2); and ‘‘(C) capitalization grants to insular areas under para- graph (4). ‘‘(3) PRIORITY.—In the apportionment of capitalization grants under this subsection, the Administrator shall give pri- ority to entity applications under subsection (b) that— ‘‘(A) propose projects increasing resilience and reducing risk of harm to natural and built infrastructure; ‘‘(B) involve a partnership between two or more eligible entities to carry out a project or similar projects; ‘‘(C) take into account regional impacts of hazards on river basins, river corridors, micro-watersheds, macro- watersheds, estuaries, lakes, bays, and coastal regions and areas at risk of earthquakes, tsunamis, droughts, severe storms, and wildfires, including the wildland-urban inter- face; or ‘‘(D) propose projects for the resilience of major eco- nomic sectors or critical national infrastructure, including ports, global commodity supply chain assets (located within an entity or within the jurisdiction of local governments, insular areas, and Indian tribal governments), power and water production and distribution centers, and bridges and waterways essential to interstate commerce. ‘‘(4) INSULAR AREAS.— ‘‘(A) APPORTIONMENT.—From any amount remaining of funds reserved under paragraph (2), the Administrator may enter into agreements to provide capitalization grants to insular areas. ‘‘(B) REQUIREMENTS.—An insular area receiving a capitalization grant under this section shall comply with the requirements of this section as applied to participating entities. ‘‘(e) ENVIRONMENTAL REVIEW OF REVOLVING LOAN FUND PROJECTS.—The Administrator may delegate to a participating entity all of the responsibilities for environmental review, decision making, and action pursuant to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and other applicable Federal environmental laws including the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) and the National Historic Preservation Compliance. Determination. VerDate Sep 11 2014 13:03 Mar 24, 2021 Jkt 019139 PO 00284 Frm 00003 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL284.116 PUBL284 whamilton on LAPJF8D0R2PROD with PUBLAW 134 STAT. 4872 PUBLIC LAW 116–284—JAN. 1, 2021 Act of 1966 (54 U.S.C. 300101 et seq.) that would apply to the Administrator were the Administrator to undertake projects under this section as Federal projects so long as the participating entity carries out such responsibilities in the same manner and subject to the same requirements as if the Administrator carried out such responsibilities. ‘‘(f) USE OF FUNDS.— ‘‘(1) TYPES OF ASSISTANCE.—Amounts deposited in an entity loan fund, including loan repayments and interest earned on such amounts, may be used— ‘‘(A) to make loans, on the condition that— ‘‘(i) such loans are made at an interest rate of not more than 1 percent; ‘‘(ii) annual principal and interest payments will commence not later than 1 year after completion of any project and all loans made under this subpara- graph will be fully amortized— ‘‘(I) not later than 20 years after the date on which the project is completed; or ‘‘(II) for projects in a low-income geographic area, not later than 30 years after the date on which the project is completed and not longer than the expected design life of the project; ‘‘(iii) the loan recipient of a loan under this subparagraph establishes a dedicated source of revenue for repayment of the loan; ‘‘(iv) the loan recipient of a loan under this subparagraph has a hazard mitigation plan that has been approved by the Administrator; and ‘‘(v) the entity loan fund will be credited with all payments of principal and interest on all loans made under this subparagraph; ‘‘(B) for mitigation efforts, in addition to mitigation planning under section 322 not to exceed 10 percent of the capitalization grants made to the participating entity in a fiscal year; ‘‘(C) for the reasonable costs of administering the fund and conducting activities under this section, except that such amounts shall not exceed $100,000 per year, 2 percent of the capitalization grants made to the participating entity in a fiscal year, or 1 percent of the value of the entity loan fund, whichever amount is greatest, plus the amount of any fees collected by the entity for such purpose regard- less of the source; and ‘‘(D) to earn interest on the entity loan fund. ‘‘(2) PROHIBITION ON DETERMINATION THAT LOAN IS A DUPLICATION.—In carrying out this section, the Administrator may not determine that a loan is a duplication of assistance or programs under this Act. ‘‘(3) PROJECTS AND ACTIVITIES ELIGIBLE FOR ASSISTANCE.— Except as provided in this subsection, a participating entity may use funds in the entity loan fund to provide financial assistance for projects or activities that mitigate the impacts of natural hazards including— ‘‘(A) drought and prolonged episodes of intense heat; ‘‘(B) severe storms, including hurricanes, tornados, wind storms, cyclones, and severe winter storms; Plan. Deadline. Deadline. Loans. VerDate Sep 11 2014 13:03 Mar 24, 2021 Jkt 019139 PO 00284 Frm 00004 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL284.116 PUBL284 whamilton on LAPJF8D0R2PROD with PUBLAW 134 STAT. 4873 PUBLIC LAW 116–284—JAN. 1, 2021 ‘‘(C) wildfires; ‘‘(D) earthquakes; ‘‘(E) flooding, including the construction, repair, or replacement of a non-Federal levee or other flood control structure, provided that the Administrator, in consultation with the Army Corps of Engineers (if appropriate), requires an eligible entity to determine that such levee or structure is designed, constructed, and maintained in accordance with sound engineering practices and standards equivalent to the purpose for which such levee or structure is intended; ‘‘(F) shoreline erosion; ‘‘(G) high water levels; and ‘‘(H) storm surges. ‘‘(4) ZONING AND LAND USE PLANNING CHANGES.—A partici- pating entity may use not more than 10 percent of a capitaliza- tion grant under this section to enable units of local government to implement zoning and land use planning changes focused on— ‘‘(A) the development and improvement of zoning and land use codes that incentivize and encourage low-impact development, resilient wildland-urban interface land management and development, natural infrastructure, green stormwater management, conservation areas adja- cent to floodplains, implementation of watershed or green- way master plans, and reconnection of floodplains; ‘‘(B) the study and creation of agricultural risk com- pensation districts where there is a desire to remove or set-back levees protecting highly developed agricultural land to mitigate for flooding, allowing agricultural pro- ducers to receive compensation for assuming greater flood risk that would alleviate flood exposure to population cen- ters and areas with critical national infrastructure; ‘‘(C) the study and creation of land use incentives that reward developers for greater reliance on low impact development stormwater best management practices, exchange density increases for increased open space and improvement of neighborhood catch basins to mitigate urban flooding, reward developers for including and aug- menting natural infrastructure adjacent to and around building projects without reliance on increased sprawl, and reward developers for addressing wildfire ignition; and ‘‘(D) the study and creation of an erosion response plan that accommodates river, lake, forest, plains, and ocean shoreline retreating or bluff stabilization due to increased flooding and disaster impacts. ‘‘(5) ESTABLISHING AND CARRYING OUT BUILDING CODE ENFORCEMENT.—A participating entity may use capitalization grants under this section to enable units of local government to establish and carry out the latest published editions of rel- evant building codes, specifications, and standards for the pur- pose of protecting the health, safety, and general welfare of the building’s users against disasters and natural hazards. ‘‘(6) ADMINISTRATIVE AND TECHNICAL COSTS.—For each fiscal year, a participating entity may use the amount described in paragraph (1)(C) to— Studies. 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