324 
SEC. 652. AUTHORITY TO FACILITATE RECONSTRUCTION. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, in any area in which a major disaster relating 
to Hurricane Katrina was declared by the President on 
August 27, 2005, in accordance with section 401 of the 
Robert T. Stafford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5170)— 
(1) no expiration of the authority of the Admin-
istrator of the Environmental Protection Agency to 
conduct any response action or remediation in ac-
cordance with the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42 
U.S.C. 9601 et seq.) shall apply; and 
(2) section 502 shall apply to— 
(A) the authority of the Administrator of 
the Environmental Protection Agency and the 
Secretary of Agriculture, and requirements, 
under the Federal Water Pollution Control Act 
(33 U.S.C. 1251 et seq.) and the Federal Insec-
ticide, Fungicide, and Rodenticide Act (7 
U.S.C. 136 et seq.), respectively, as that au-
thority or those requirements relate to the ap-
plication of pesticides in such an area to control 
the mosquito population and reduce the spread 
of vector-borne illnesses; and
325 
(B) the authority of the Secretary of Agri-
culture and the Secretary of the Interior under 
laws administered by each of those Secretaries 
relating to timber production in such an area 
to— 
(i) expedite the process of salvaging 
timber in the area; and 
(ii) ensure a secure timber supply for 
the pulp and paper industry. 
(b) STATEMENTS AND ANALYSES.—Notwithstanding 
any other provision of law, no requirement for the comple-
tion of a statement or analysis under any law (including 
a regulation) administered by the Council on Environ-
mental Quality shall apply to any project or activity relat-
ing to the recovery, reconstruction, or repair in any area 
described in subsection (a) in response to a major disaster 
described in that subsection. 
(c) 
ZONING
REGULATIONS
AND
PROPERTY 
RIGHTS.—Notwithstanding any other provision of law, no 
provision of Federal, State, or local law (including a zon-
ing regulation or other regulation) modified or applied 
with respect to a major disaster described in subsection 
(a) shall negate or otherwise affect the private property 
ownership rights of any individual or entity that, on or
326 
after August 29, 2005, owns property in an area described 
in subsection (a). 
CHAPTER 5—HISTORIC PRESERVATION 
FUND 
SEC. 661. HISTORIC PRESERVATION FUND. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means any entity in a State affected by the dec-
laration of a major disaster in accordance with sec-
tion 401 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5170). 
(2) FUND.—The term ‘‘Fund’’ means the His-
toric Preservation Fund. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
(b) CONSERVATION PROJECT GRANTS.— 
(1) GRANTS.—The Secretary shall provide 
grants from amounts in the Fund to eligible entities 
in areas affected by Hurricane Katrina or a related 
condition, as determined by the Secretary, to carry 
out conservation projects. 
(2) USE OF FUNDS.—An eligible entity that re-
ceives a grant under this subsection shall use funds 
for conservation projects relating to—
327 
(A) nationally significant intellectual and 
cultural artifacts, including collections, docu-
ments, sculpture, and works of art; and 
(B) nationally significant historic struc-
tures and sites, including historic districts, 
buildings, and objects. 
(3) ADMINISTRATION.— 
(A) IN GENERAL.—Grants provided under 
this subsection shall be administered by the 
Secretary, in collaboration with the Louisiana 
State Historic Preservation Office and the Na-
tional Center of Preservation Technology and 
Training at Natchitoches, Louisiana. 
(B) FEDERAL SHARE.—The Federal share 
of the cost of a project under this subsection 
shall be not less than 75 percent. 
(C) NON-FEDERAL SHARE.—The non-Fed-
eral share of the cost of a project under this 
subsection— 
(i) shall be not more than 25 percent; 
and 
(ii) may be provided in cash or in 
kind. 
(D) LIMITATIONS.—
328 
(i) PERIOD
OF
AVAILABILITY.—A 
grant under this subsection shall remain 
available for not longer than 3 years after 
the date on which the grant is provided. 
(ii) OTHER
LIMITATIONS.—The Sec-
retary may establish such other limitations 
with respect to a grant under this sub-
section as the Secretary determines to be 
appropriate. 
(4) APPROPRIATIONS.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, out of any funds in the 
Treasury not otherwise appropriated, the Sec-
retary of the Treasury shall transfer to the Sec-
retary 
to 
carry 
out 
this 
subsection 
$150,000,000, to remain available until ex-
pended. 
(B) RECEIPT
AND
ACCEPTANCE.—The 
Secretary shall be entitled to receive, shall ac-
cept, and shall use to carry out this section the 
funds transferred under subparagraph (A), 
without further appropriation. 
(c) PRESERVATION PROJECTS.— 
(1) IN GENERAL.—The Secretary shall provide 
grants from amounts in the Fund to eligible entities
329 
in areas affected by Hurricane Katrina or a related 
condition, as determined by the Secretary, to carry 
out preservation projects. 
(2) USE OF FUNDS.—An eligible entity that re-
ceives a grant under this subsection shall use funds 
for preservation projects— 
(A) relating to the mitigation, stabilization, 
rehabilitation, and restoration of— 
(i) national historic landmarks af-
fected by Hurricane Katrina or a related 
condition, as determined by the Secretary; 
and 
(ii) other nationally significant cul-
tural properties affected by Hurricane 
Katrina or a related condition, as deter-
mined by the Secretary; or 
(B) to provide conservation treatment to 
nationally significant collections. 
(3) ADMINISTRATION.— 
(A) IN GENERAL.—Grants provided under 
this subsection shall be administered by the 
Secretary, acting through the Director of the 
National Center for Preservation Technology 
and Training of the National Park Service, in 
accordance with the Standards for the Treat-
330 
ment of Historic Properties of the Department 
of the Interior. 
(B) FEDERAL SHARE.—The Federal share 
of the cost of a project under this subsection 
shall be 100 percent. 
(4) APPROPRIATIONS.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, out of any funds in the 
Treasury not otherwise appropriated, the Sec-
retary of the Treasury shall transfer to the Sec-
retary to carry out this subsection $30,000,000, 
to remain available until expended. 
(B) RECEIPT
AND
ACCEPTANCE.—The 
Secretary shall be entitled to receive, shall ac-
cept, and shall use to carry out this section the 
funds transferred under subparagraph (A), 
without further appropriation. 
(d) TECHNICAL ASSISTANCE AND TRAINING.— 
(1) 
IN
GENERAL.—The 
Secretary, 
acting 
through the Director of the National Park Service, 
shall establish a program to provide training and 
technical assistance to entities in the States of Ala-
bama, Louisiana, and Mississippi to rehabilitate and 
restore areas affected by Hurricane Katrina or re-
331 
lated conditions, regardless of the eligibility of an 
entity to receive a grant under this section. 
(2) ADMINISTRATION.— 
(A) IN
GENERAL.—The program under 
this subsection shall be administered by the 
Secretary, acting through the Director of the 
National Park Service, in coordination with the 
Director of the National Center for Preserva-
tion Technology and Training of the National 
Park Service. 
(B) PROVISION
OF
INFORMATION.—The 
Secretary shall provide any information pro-
vided to eligible entities under this subsection 
to— 
(i) the Technical Preservation Services 
of the National Park Service; 
(ii) State historic preservation offices; 
(iii) certified local governments; 
(iv) federally recognized Indian tribes; 
and 
(v) affected local preservation organi-
zations. 
(3) APPROPRIATIONS.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, out of any funds in the
332 
Treasury not otherwise appropriated, the Sec-
retary of the Treasury shall transfer to the Sec-
retary to carry out this subsection $8,000,000, 
to remain available until expended, of which— 
(i) not less than $2,000,000 shall be 
made available to the Technical Preserva-
tion Services of the National Park Service; 
(ii) not less than $2,000,000 shall be 
made available to the National Park Serv-
ice Federal Preservation Institute; 
(iii) not less than $1,000,000 shall be 
made available to the National Cemetery 
Preservation Initiative; and 
(iv) not less than $3,000,000 shall be 
made available to the National Center for 
Preservation Technology and Training of 
the National Park Service. 
(B) RECEIPT
AND
ACCEPTANCE.—The 
Secretary shall be entitled to receive, shall ac-
cept, and shall use to carry out this section the 
funds transferred under subparagraph (A), 
without further appropriation. 
(e) NATIONAL TRUST
FOR HISTORIC PRESERVA-
TION.—
333 
(1) IN GENERAL.—The Secretary shall provide 
grants to eligible entities from amounts in the Na-
tional Trust for Historic Preservation (referred to in 
this subsection as the ‘‘Trust’’) to carry out preser-
vation planning and technical assistance activities in 
areas affected by Hurricane Katrina or a related 
condition 
(2) PRIORITY.—In providing grants under this 
subsection, the Secretary shall give priority to eligi-
ble entities located in towns with a population of less 
than 50,000. 
(3) USE OF FUNDS.—An eligible entity shall 
use a grant received under this subsection to provide 
preservation services to communities in the region of 
the eligible entity. 
(4) APPROPRIATIONS.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, out of any funds in the 
Treasury not otherwise appropriated, the Sec-
retary of the Treasury shall transfer to the Sec-
retary to carry out this subsection $20,000,000, 
to remain available until expended. 
(B) RECEIPT
AND
ACCEPTANCE.—The 
Secretary shall be entitled to receive, shall ac-
cept, and shall use to carry out this section the
334 
funds transferred under subparagraph (A), 
without further appropriation. 
(C) DIVISION OF AMOUNTS.—Amounts ap-
propriated under subparagraph (A) may be di-
vided between the Preservation Services Fund, 
the National Preservation Loan Fund, and the 
National Main Street Center of the Trust to 
provide consulting services to communities, as 
the Director of the Trust determines to be ap-
propriate. 
(f) ADMINISTRATION.— 
(1) IN GENERAL.—A project funded under this 
section shall be exempt from any requirement under 
Federal law relating to— 
(A) full-time employment; or 
(B) limitations on travel expenses. 
(2) ADMINISTRATIVE
COSTS.—An entity that 
receives a grant under this section shall use not 
more than 5 percent of the amount provided to pay 
administrative costs. 
(3) EXPEDITED
CONTRACTS.—The Secretary 
shall expedite the execution of any contract relating 
to a project under this section, to the maximum ex-
tent practicable.
335 
CHAPTER 6—MITIGATION MEASURES 
SEC. 671. MITIGATION MEASURES. 
(a) APPROPRIATIONS.—Notwithstanding section 404 
of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170c), or any other provision 
of law, the President shall make available to the Governor 
of the State of Louisiana an amount equal to 15 percent 
of the total amount of grants made to the State of Lou-
isiana through the Federal Emergency Management Agen-
cy in response to Hurricane Katrina. 
(b) USE OF FUNDS.—The Governor of the State of 
Louisiana shall use amounts made available under sub-
section (a) for activities relating to flood prevention. 
TITLE VII—JOBS CREATION AND 
REPOPULATION INCENTIVES 
SEC. 700. AMENDMENT OF 1986 CODE. 
Except as otherwise expressly provided, whenever in 
this title an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of the Internal Revenue Code 
of 1986.
336 
Subtitle A—Emergency Tax Relief 
Measures 
SEC. 700A. HURRICANE KATRINA DISASTER AREA. 
For purposes of this subtitle, the term ‘‘Hurricane 
Katrina disaster area’’ means an area— 
(1) with respect to which a major disaster has 
been declared by the President before September 14, 
2005, under section 401 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act in 
connection with Hurricane Katrina, and 
(2) which— 
(A) except as provided in subparagraph 
(B), is determined by the President before such 
date to warrant assistance from the Federal 
Government under such Act, and 
(B) in the case of sections 706 and 707, 
is determined by the President before such date 
to warrant individual assistance, or individual 
and public assistance, from the Federal Govern-
ment under such Act.
337 
CHAPTER I—PENALTY FREE USE OF RE-
TIREMENT FUNDS BY NATURAL DIS-
ASTER VICTIMS 
SEC. 701. PENALTY FREE WITHDRAWALS FROM RETIRE-
MENT PLANS FOR VICTIMS OF FEDERALLY 
DECLARED NATURAL DISASTERS. 
(a) IN GENERAL.—Paragraph (2) of section 72(t) 
(relating to 10-percent additional tax on early distribu-
tions from qualified retirement plans) is amended by add-
ing at the end the following new subparagraph: 
‘‘(G) DISTRIBUTIONS FROM RETIREMENT 
PLANS TO VICTIMS OF FEDERALLY DECLARED 
NATURAL DISASTERS.— 
‘‘(i) DISTRIBUTION
ALLOWED.—Any 
qualified disaster-relief distribution. 
‘‘(ii) AMOUNT DISTRIBUTED MAY BE 
REPAID.— 
‘‘(I) IN
GENERAL.—Any indi-
vidual who receives a qualified dis-
aster-relief distribution may, at any 
time during the 3-year period begin-
ning on the day after the date on 
which such distribution was made, 
make one or more contributions in an 
aggregate amount not to exceed the
338 
amount of such distribution to an eli-
gible retirement plan (as defined in 
section 402(c)(8)(B)) of which such 
individual is a beneficiary and to 
which a rollover contribution of such 
distribution could be made under sec-
tion 402(c), 403(a)(4), 403(b)(8), 
408(d)(3), or 457(e)(16), as the case 
may be. 
‘‘(II) TREATMENT
OF
REPAY-
MENTS FOR DISTRIBUTIONS FROM EL-
IGIBLE
RETIREMENT
PLANS
OTHER 
THAN
IRAS.—For purposes of this 
title, if a contribution is made pursu-
ant to subclause (I) with respect to a 
qualified 
disaster-relief 
distribution 
from an eligible retirement plan (as so 
defined) other than an individual re-
tirement plan, then the taxpayer shall, 
to the extent of the amount of the 
contribution, be treated as having re-
ceived the qualified disaster-relief dis-
tribution in an eligible rollover dis-
tribution 
(as 
defined 
in 
section 
402(c)(4)) and as having transferred
339 
the amount to the eligible retirement 
plan in a direct trustee to trustee 
transfer within 60 days of the dis-
tribution. 
‘‘(III) TREATMENT
OF
REPAY-
MENTS
FOR
DISTRIBUTIONS
FROM 
IRAS.—For purposes of this title, if a 
contribution is made pursuant to sub-
clause (I) with respect to a qualified 
disaster-relief distribution from an in-
dividual retirement plan, then, to the 
extent of the amount of the contribu-
tion, the qualified disaster-relief dis-
tribution shall be treated as a dis-
tribution 
described 
in 
section 
408(d)(3) and as having been trans-
ferred to the eligible retirement plan 
in a direct trustee to trustee transfer 
within 60 days of the distribution. 
‘‘(IV) APPLICATION TO GOVERN-
MENTAL SECTION 457 PLANS.—In de-
termining whether any distribution is 
a qualified disaster-relief distribution 
for purposes of this clause, an eligible 
deferred compensation plan (as de-
340 
fined in section 457(b)) maintained by 
an employer described in section 
457(e)(1)(A) shall be treated as a 
qualified retirement plan. 
‘‘(iii) QUALIFIED
DISASTER-RELIEF 
DISTRIBUTION.—Except as provided in 
clause (iv), for purposes of this subpara-
graph, the term ‘qualified disaster-relief 
distribution’ means any distribution— 
‘‘(I) to an individual who has 
sustained a loss as a result of a major 
disaster declared under section 401 of 
the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act and 
who has a principal place of abode im-
mediately before the declaration in a 
qualified disaster area, and 
‘‘(II) which is made during the 1- 
year period beginning on the date 
such declaration is made. 
‘‘(iv) DOLLAR LIMITATION.— 
‘‘(I) IN
GENERAL.—The term 
‘qualified disaster-relief distribution’ 
shall not include any distributions for 
any taxable year to the extent the ag-
341 
gregate amount of such distributions 
exceeds $100,000, reduced by the ag-
gregate amounts treated as qualified 
disaster-relief distributions with re-
spect to such individual for all prior 
taxable years. 
‘‘(II) TREATMENT OF PLAN DIS-
TRIBUTIONS.—If a distribution to an 
individual with respect to any such 
major disaster would (without regard 
to subclause (I)) be a qualified dis-
aster-relief distribution, a plan shall 
not be treated as violating any re-
quirement of this title merely because 
it treats such distribution as a quali-
fied disaster-relief distribution, unless 
the aggregate amount of such dis-
tributions from all plans maintained 
by the employer (and any member of 
any controlled group which includes 
the employer) to such individual ex-
ceeds $100,000. 
‘‘(v) QUALIFIED
DISASTER
AREA.— 
For purposes of this subparagraph, the
342 
term ‘qualified disaster area’ means an 
area— 
‘‘(I) with respect to which a 
major disaster has been declared by 
the President before September 14, 
2005, under section 401 of the Robert 
T. Stafford Disaster Relief and Emer-
gency Assistance Act in connection 
with Hurricane Katrina, and 
‘‘(II) which is determined by the 
President before such date to warrant 
assistance from the Federal Govern-
ment under such Act.’’. 
(b) EXEMPTION OF DISTRIBUTIONS FROM TRUSTEE 
TO TRUSTEE TRANSFER AND WITHHOLDING RULES.— 
Paragraph (4) of section 402(c) (relating to eligible roll-
over distribution) is amended by striking ‘‘and’’ at the end 
of subparagraph (B), by striking the period at the end 
of subparagraph (C) and inserting ‘‘, and’’, and by insert-
ing at the end the following new subparagraph: 
‘‘(D) any qualified disaster-relief distribu-
tion 
(within 
the 
meaning 
of 
section 
72(t)(2)(G)).’’. 
(c) CONFORMING AMENDMENTS.—
343 
(1) Section 401(k)(2)(B)(i) is amended by 
striking ‘‘or’’ at the end of subclause (III), by strik-
ing ‘‘and’’ at the end of subclause (IV) and inserting 
‘‘or’’, and by inserting after subclause (IV) the fol-
lowing new subclause: 
‘‘(V) the date on which a period 
referred 
to 
in 
section 
72(t)(2)(G)(iii)(II) begins (but only to 
the 
extent 
provided 
in 
section 
72(t)(2)(G)), and’’. 
(2) Section 403(b)(7)(A)(ii) is amended by in-
serting ‘‘sustains a loss as a result of a major dis-
aster declared under section 401 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance 
Act by reason of Hurricane Katrina (but only to the 
extent provided in section 72(t)(2)(G)),’’ before 
‘‘or’’. 
(3) Section 403(b)(11) is amended by striking 
‘‘or’’ at the end of subparagraph (A), by striking the 
period at the end of subparagraph (B) and inserting 
‘‘, or’’, and by inserting after subparagraph (B) the 
following new subparagraph: 
‘‘(C) for distributions to which section 
72(t)(2)(G) applies.’’.
344 
(4) Section 457(d)(1)(A) is amended by strik-
ing ‘‘or’’ at the end of clause (ii), by adding ‘‘or’’ 
at the end of clause (iii), and by adding at the end 
the following new clause: 
‘‘(iv) in the case of an eligible de-
ferred compensation plan established and 
maintained by an employer described in 
subsection (e)(1)(A), when the participant 
sustains a loss as a result of a major dis-
aster declared under section 401 of the 
Robert T. Stafford Disaster Relief and 
Emergency Assistance Act by reason of 
Hurricane Katrina (but only to the extent 
provided in section 72(t)(2)(G)),’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions received after Au-
gust 28, 2005. 
SEC. 702. INCOME AVERAGING FOR DISASTER-RELIEF DIS-
TRIBUTIONS 
RELATED 
TO 
HURRICANE 
KATRINA. 
(a) IN GENERAL.—In the case of any qualified dis-
aster-relief distribution (within the meaning of section 
72(t)(2)(G) of the Internal Revenue Code of 1986) from 
a qualified retirement plan (as defined in section 4974(c) 
of such Code) to a qualified individual, unless the taxpayer
345 
elects not to have this section apply for any taxable year, 
any amount required to be included in gross income for 
such taxable year shall be so included ratably over the 3- 
taxable year period beginning with such taxable year. 
(b) SPECIAL RULES.— 
(1) APPLICATION TO GOVERNMENTAL SECTION 
457 PLANS.—In determining whether any distribu-
tion is a qualified disaster-relief distribution (as so 
defined) for purposes of this section, an eligible de-
ferred compensation plan (as defined in section 
457(b) of such Code) maintained by an employer de-
scribed in section 457(e)(1)(A) of such Code shall be 
treated as a qualified retirement plan (as so defined) 
(2) CERTAIN RULES TO APPLY.—Rules similar 
to the rules of subparagraph (E) of section 
408A(d)(3) of such Code shall apply for purposes of 
this section. 
(c) QUALIFIED INDIVIDUAL.—For purposes of this 
section, the term ‘‘qualified individual’’ means an indi-
vidual who has sustained a loss as a result of the major 
disaster declared under section 401 of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5170) in connection with Hurricane Katrina and 
who has a principal place of abode immediately before the 
declaration in a Hurricane Katrina disaster area.
346 
SEC. 703. RECONTRIBUTIONS OF WITHDRAWALS FOR HOME 
PURCHASES CANCELLED DUE TO HURRI-
CANE KATRINA. 
(a) RECONTRIBUTIONS.— 
(1) IN GENERAL.—Any individual who received 
a qualified distribution may, at any time during the 
6-month period beginning on the day after the dis-
aster declaration date, make one or more contribu-
tions in an aggregate amount not to exceed the 
amount of such qualified distribution to an eligible 
retirement plan (as defined in section 402(c)(8)(B) 
of the Internal Revenue Code of 1986) of which such 
individual is a beneficiary and to which a rollover 
contribution of such distribution could be made 
under section 402(c), 403(a)(4), 403(b)(8), or 
408(d)(3) of such Code, as the case may be. 
(2) TREATMENT OF REPAYMENTS.— 
(A) TREATMENT
OF
REPAYMENTS
FOR 
DISTRIBUTIONS
FROM
ELIGIBLE
RETIREMENT 
PLANS
OTHER
THAN
IRAS.—For purposes of 
the Internal Revenue Code of 1986, if a con-
tribution is made pursuant to paragraph (1) 
with respect to a qualified distribution from an 
eligible retirement plan (as so defined) other 
than an individual retirement plan (as defined 
in section 7701(a)(37) of such Code), then the