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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5199 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5199

  To reauthorize the National Flood Insurance Program, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 25, 2024

   Mr. Casey introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
  To reauthorize the National Flood Insurance Program, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Fair Flood 
Protection Act of 2024''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
               TITLE I--REAUTHORIZATION AND STABILIZATION

Sec. 101. Reauthorization.
Sec. 102. Forbearance on National Flood Insurance Program interest 
                            payments.
Sec. 103. Elimination of Community Rating System.
Sec. 104. Write Your Own Program reform.
          TITLE II--RATE REPORTING AND POLICYHOLDER ASSISTANCE

Sec. 201. Sense of Congress.
Sec. 202. Premium transparency.
Sec. 203. Flood Protection Affordability Program and Trust Fund.
               TITLE III--FEE REDUCTION AND CONSOLIDATION

Sec. 301. Reserve Fund assessment.
Sec. 302. Flood Insurance Program Stability Fee.
                          TITLE IV--RESILIENCE

Sec. 401. Levee project identification and development program.
Sec. 402. Authorization of appropriations for the STORM Act.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Agency.
            (2) Agency.--The term ``Agency'' means the Federal 
        Emergency Management Agency.
            (3) Community rating system.--The term ``Community Rating 
        System'' means the community rating system program carried out 
        under section 1315(b) of the National Flood Insurance Act of 
        1968 (42 U.S.C. 4022(b)).
            (4) National flood insurance program.--The term ``National 
        Flood Insurance Program'' means the program established under 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et 
        seq.).
            (5) Small business concern.--The term ``small business 
        concern'' has the meaning given the term in section 3 of the 
        Small Business Act (15 U.S.C. 632).
            (6) Write your own company.--The term ``Write Your Own 
        Company'' means a private property insurance company that 
        participates in the Write Your Own Program.
            (7) Write your own program.--The term ``Write Your Own 
        Program'' means the program under which the Federal Emergency 
        Management Agency enters into a standard arrangement with 
        private property insurance companies to--
                    (A) sell contracts for Federal flood insurance 
                under their own business lines of insurance; and
                    (B) adjust and pay claims arising under the 
                contracts described in subparagraph (A).

               TITLE I--REAUTHORIZATION AND STABILIZATION

SEC. 101. REAUTHORIZATION.

    (a) Financing.--Section 1309(a) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4016(a)) is amended by striking ``September 30, 
2023'' and inserting ``September 30, 2034''.
    (b) Program Expiration.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
``September 30, 2023'' and inserting ``September 30, 2034''.
    (c) Retroactive Effective Date.--If this Act is enacted after 
September 30, 2024, the amendments made by subsections (a) and (b) 
shall take effect as if enacted on September 30, 2024.

SEC. 102. FORBEARANCE ON NATIONAL FLOOD INSURANCE PROGRAM INTEREST 
              PAYMENTS.

    (a) In General.--During the 20-year period beginning on the date of 
enactment of this Act, the Secretary of the Treasury may not charge the 
Administrator interest on amounts borrowed by the Administrator under 
section 1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4016(a)) that were outstanding as of the date of enactment of this Act, 
including amounts borrowed after the date of enactment of this Act that 
refinance debts that existed before the date of enactment of this Act.
    (b) Use of Foregone Interest Payments.--There shall be deposited 
into the National Flood Mitigation Fund established under section 1367 
of the National Flood Insurance Act of 1968 (42 U.S.C. 4104d) an amount 
equal to the interest that would have accrued on the borrowed amounts 
during the 20-year period described in subsection (a) at the time at 
which those interest payments would have otherwise been paid, which, 
notwithstanding any provision of such section 1367, the Administrator 
shall use to carry out the program established under section 1366 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4104c).
    (c) No Retroactive Accrual.--After the 20-year period described in 
subsection (a), the Secretary of the Treasury shall not require the 
Administrator to repay any interest that, but for that subsection, 
would have accrued on the borrowed amounts described in that subsection 
during that 20-year period.

SEC. 103. ELIMINATION OF COMMUNITY RATING SYSTEM.

    (a) Findings.--Congress finds the following:
            (1) The Community Rating System, while well-intentioned, 
        has provided discounts to policyholders that are not 
        actuarially justified.
            (2) The discounts described in paragraph (1) have furthered 
        the financial insolvency of the National Flood Insurance 
        Program.
            (3) With the transition by the Agency towards 
        individualized premiums rather than community-based premiums, 
        the Community Rating System should be phased out.
    (b) Phase-Out.--Section 1315(b) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4022(b)) is amended by adding at the end the 
following:
            ``(4) Phase-out.--Not earlier than 2 years and not later 
        than 4 years after the date of enactment of this paragraph, the 
        Administrator shall--
                    ``(A) terminate the community rating system program 
                established under paragraph (1); and
                    ``(B) remove credits from the premium rates for 
                policyholders within participating communities.''.

SEC. 104. WRITE YOUR OWN PROGRAM REFORM.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Administrator shall--
            (1) issue a proposed rule that caps the reimbursement that 
        the Agency pays to Write Your Own Companies--
                    (A) at not more than 25 percent of the aggregate 
                premiums charged by the Write Your Own Company; and
                    (B) taking into account--
                            (i) the impact of the reimbursement rate on 
                        the overall solvency of the National Flood 
                        Insurance Program; and
                            (ii) reimbursement rates offered by other 
                        Federal agencies for similar insurance 
                        programs, including programs offered by the 
                        Department of Health and Human Services and the 
                        Department of Agriculture; and
            (2) issue a proposed rule that caps the amount that Write 
        Your Own Company pays to an agent of the company as a 
        commission for flood insurance premiums sold by the agent.
    (b) Final Rules.--Not later than 18 months after the date on which 
the Administrator issues a proposed rule under subsection (a), the 
Administrator shall issue a final rule for the proposed rule, which 
shall apply to all flood insurance policies that are written or renewed 
on or after the date that is 6 months after the date of publication of 
the final rule.
    (c) Reassessment of Caps.--The Administrator may reassess and 
modify the caps provided in the final rules issued under subsection (b) 
through notice and comment rulemaking procedures under section 553 of 
title 5, United States Code.

          TITLE II--RATE REPORTING AND POLICYHOLDER ASSISTANCE

SEC. 201. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) it is important to maximize participation in the 
        National Flood Insurance Program;
            (2) in order to do so, Congress must ensure that flood 
        insurance is affordable for low-income homeowners, older 
        homeowners on fixed incomes, and working families; and
            (3) it is also important that the National Flood Insurance 
        Program continues to align its premiums with actuarially sound 
        rates to provide transparency, increase public understanding of 
        the true costs of flood insurance and flood damage, and promote 
        the long-term financial solvency of the National Flood 
        Insurance Program.

SEC. 202. PREMIUM TRANSPARENCY.

    (a) In General.--The Administrator shall issue to each policyholder 
under the National Flood Insurance Program, in writing, an annual 
premium pricing report with respect to the property of the 
policyholder, which shall include--
            (1) the full, risk-based premium for the property, as 
        identified under the Risk Rating 2.0 model or any subsequent 
        pricing model of the Agency;
            (2) the applicable premium for the property, inclusive of 
        subsidies and caps as determined by section 1310A of the 
        National Flood Insurance Act of 1968, as added by section 203 
        of this Act; and
            (3) the anticipated premium for subsequent years following 
        the report, based on the applicable pricing model of the Agency 
        and annual limitations on premium increases established under 
        section 1308(e) of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4015(e)).
    (b) Renter Transparency.--If a policyholder rents out a property 
for which coverage is provided through the National Flood Insurance 
Program to tenants, the policyholder shall provide a copy of the annual 
premium pricing report for the property to the tenants with the lease 
for the property.

SEC. 203. FLOOD PROTECTION AFFORDABILITY PROGRAM AND TRUST FUND.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.), as amended by section 301 of this Act, is amended by 
inserting after section 1310 (42 U.S.C. 4017) the following:

``SEC. 1310A. FLOOD PROTECTION AFFORDABILITY PROGRAM AND TRUST FUND.

    ``(a) Establishment of Program.--Not later than 1 year after the 
date of enactment of this section, the Administrator shall establish a 
program to ensure that policies under the national flood insurance 
program are affordable by offering subsidized premiums using the 
formula described in subsection (b).
    ``(b) Rate Affordability.--The program established under subsection 
(a) shall ensure that policyholders under the national flood insurance 
program shall not pay a premium that is, as a percentage of their 
household income, higher than the percentage created by dividing their 
annual household income by 41,000.
    ``(c) Subsidy.--If the premium for flood insurance coverage under 
the national flood insurance program for a property owned by a 
policyholder eligible for assistance under subsection (b) is greater 
than the limit set by subsection (b), the Administrator shall subsidize 
the premium using funds from the Flood Insurance Affordability Trust 
Fund established under subsection (d) in the amount equal to the 
difference between the stated premium and the maximum amount chargeable 
under subsection (b).
    ``(d) Fund.--
            ``(1) In general.--There is established within the 
        Department of the Treasury a fund, which shall be--
                    ``(A) known as the `Flood Insurance Affordability 
                Trust Fund' (in this section referred to as the 
                `Fund'); and
                    ``(B) administered by the Administrator.
            ``(2) Shortfall.--If amounts in the Fund are insufficient 
        to cover subsidies required under subsection (b), the 
        Administrator is authorized to draw such sums as may be 
        necessary from the general fund of the Treasury to provide 
        those subsidies.
            ``(3) Report to congress.--The Administrator shall submit 
        to the Committee on Banking, Housing, and Urban Affairs of the 
        Senate, the Committee on Appropriations of the Senate, the 
        Committee on Financial Services of the House of 
        Representatives, and the Committee on Appropriations of the 
        House of Representatives an annual report detailing--
                    ``(A) the amount paid out of the Fund during the 
                year preceding the date on which the report is 
                submitted;
                    ``(B) the amount in the Fund as of the date of the 
                report;
                    ``(C) the amount the Fund drew from the general 
                fund of the Treasury during the year preceding the date 
                on which the report is submitted;
                    ``(D) the amount of appropriations that the 
                Administrator estimates the Fund will need for the 
                forthcoming year; and
                    ``(E) other information as determined important by 
                the Administrator.
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated into the Fund such sums as are necessary for 
        each fiscal year to provide the subsidies described in 
        subsection (c), as informed by the relevant report submitted 
        under paragraph (3).
    ``(e) Rule of Construction.--Nothing in this section shall be 
construed to affect the applicability of the cap on the annual premium 
increase under section 1308(e).''.

               TITLE III--FEE REDUCTION AND CONSOLIDATION

SEC. 301. RESERVE FUND ASSESSMENT.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.) is amended--
            (1) in section 1304(b) (42 U.S.C. 4011(b)), by striking the 
        flush matter following paragraph (4)(D);
            (2) in section 1307(a)(1)(B)(iii) (42 U.S.C. 
        4014(a)(1)(B)(iii)), by striking ``which shall be recovered by 
        a fee charged to policyholders and such fee shall not be 
        subject to any agents' commissions, company expense allowances, 
        or State or local premium taxes'';
            (3) in section 1308(m)(1) (42 U.S.C. 4015(m)(1)), in the 
        matter preceding subparagraph (A), by striking ``and the 
        surcharges required under section 1308A'';
            (4) by striking section 1308A (42 U.S.C. 4015a); and
            (5) by striking section 1310A (42 U.S.C. 4017A).

SEC. 302. FLOOD INSURANCE PROGRAM STABILITY FEE.

    (a) Imposition and Collection.--The Administrator shall impose and 
collect a singular annual surcharge, which shall be referred to as the 
``Flood Insurance Program Stability Fee'', in the amount provided in 
subsection (b), on all policies for flood insurance coverage under the 
National Flood Insurance Program that are newly issued or renewed after 
May 1, 2025.
    (b) Amount.--The amount of the surcharge under subsection (a) shall 
be--
            (1) except as provided in paragraph (2), 20 percent of the 
        annual premium inclusive of any subsidy provided under section 
        1310A of the National Flood Insurance Act of 1968, as added by 
        section 203 of this Act; and
            (2) 30 percent of the annual post-subsidy premium, in the 
        case of a policy for any property that is--
                    (A) a non-residential property other than a small 
                business concern; and
                    (B) a residential property that is not the primary 
                residence of an individual.
    (c) Use of Funds.--Of amounts collected by the Administrator under 
this section in a given fiscal year--
            (1) not less than 50 percent shall be deposited in the 
        National Flood Insurance Fund established under section 1310 of 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4017); and
            (2) not less than 30 percent shall be deposited in the 
        Flood Insurance Affordability Trust Fund established under 
        section 1310A of the National Flood Insurance Act of 1968, as 
        added by section 203 of this Act.

                          TITLE IV--RESILIENCE

SEC. 401. LEVEE PROJECT IDENTIFICATION AND DEVELOPMENT PROGRAM.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Administrator shall establish a program to identify 
and develop new levees and levee systems.
    (b) Eligible Entities.--To carry out the program established under 
subsection (a), the Administrator shall solicit applications from--
            (1) States or political subdivisions of States;
            (2) flood protection authorities;
            (3) federally recognized Indian Tribes; and
            (4) other public entities as determined by the 
        Administrator.
    (c) Selection Criteria.--The Administrator shall consider 
applications for assistance under the program established under 
subsection (a) using the following criteria:
            (1) An estimate of the valuation of property located behind 
        the proposed levee or system of levees.
            (2) The history of severe weather and flooding events in 
        the community and any projected changes due to climate change.
            (3) The number of people and percentage of the overall 
        population in the community that is participating in the 
        National Flood Insurance Program.
            (4) The anticipated cost to construct and operate the levee 
        or system of levees.
            (5) Other considerations, as determined by the 
        Administrator.
    (d) Technical Assistance.--The Administrator shall provide 
technical assistance upon request to applicants for the program 
established under subsection (a), including by helping applicants to 
access data regarding National Flood Insurance Program coverage in the 
relevant area.
    (e) Selected Projects.--Upon the selection of applicants for 
participation in the program established under subsection (a), the 
Administrator shall--
            (1) provide technical assistance for applications submitted 
        to the Agency for funding, including assistance with 
        determining project scope, timeline, cost, and other 
        considerations as determined by the Administrator;
            (2) prioritize for funding through the hazard mitigation 
        grant program under section 404 of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170c), 
        the Building Resilient Infrastructure and Communities program 
        authorized under section 203 of the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act (42 U.S.C. 5133), and the 
        Flood Mitigation Assistance program authorized under section 
        1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 
        4104c), applications from selected applicants for planning, 
        engineering, design, or construction work for the levee or 
        system of levees described in the application; and
            (3) direct States and political subdivisions of States to 
        prioritize allocating funds from revolving loan funds 
        capitalized by the Safeguarding Tomorrow Revolving Loan Fund, 
        as established to carry out section 205 of the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act (42 
        U.S.C. 5135), for projects for planning, engineering, design, 
        or construction work for levees or systems of levees selected 
        under this section.
    (f) Consultation.--In administering the Program, the Administrator 
shall consult with--
            (1) the U.S. Army Corps of Engineers;
            (2) emergency management agencies from States with a 
        selected project; and
            (3) other stakeholders, as determined by the Administrator.

SEC. 402. AUTHORIZATION OF APPROPRIATIONS FOR THE STORM ACT.

    Section 205(n) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5135) is amended to read as 
follows:
    ``(n) Authorization of Appropriations.--There are authorized to be 
appropriated $200,000,000 for each of fiscal years 2025 through 2034 to 
carry out this section.''.
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