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SEC. 369. STUDIES OF VOLUNTARY COMMUNITY-BASED 
FLOOD INSURANCE OPTIONS. 
(a) STUDIES.—The Administrator of the Federal 
Emergency Management Agency and the Comptroller 
General of the United States shall each conduct a separate 
study to assess options, methods, and strategies for offer-
ing voluntary community-based flood insurance policy op-
tions and incorporating such options into the national 
flood insurance program. Such studies shall take into con-
sideration and analyze how the policy options would affect 
communities having varying economic bases, geographic 
locations, flood hazard characteristics or classifications, 
and flood management approaches. 
(b) REPORTS.—Not later than the expiration of the 
18-month period beginning on the date of the enactment 
of this Act, the Administrator of the Federal Emergency 
Management Agency and the Comptroller General of the 
United States shall each submit a report to the Committee 
on Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs 
of the Senate on the results and conclusions of the study 
such agency conducted under subsection (a), and each 
such report shall include recommendations for the best 
manner to incorporate voluntary community-based flood 
insurance options into the national flood insurance pro-
gram and for a strategy to implement such options that 
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would encourage communities to undertake flood mitiga-
tion activities. 
SEC. 370. REPORT ON INCLUSION OF BUILDING CODES IN 
FLOODPLAIN MANAGEMENT CRITERIA. 
Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, the 
Administrator of the Federal Emergency Management 
Agency shall conduct a study and submit a report to the 
Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate regarding the impact, effec-
tiveness, and feasibility of amending section 1361 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4102) 
to include widely used and nationally recognized building 
codes as part of the floodplain management criteria devel-
oped under such section, and shall determine— 
(1) the regulatory, financial, and economic im-
pacts of such a building code requirement on home-
owners, States and local communities, local land use 
policies, and the Federal Emergency Management 
Agency; 
(2) the resources required of State and local 
communities to administer and enforce such a build-
ing code requirement; 
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(3) the effectiveness of such a building code re-
quirement in reducing flood-related damage to build-
ings and contents; 
(4) the impact of such a building code require-
ment on the actuarial soundness of the National 
Flood Insurance Program; 
(5) the effectiveness of nationally recognized 
codes in allowing innovative materials and systems 
for flood-resistant construction; 
(6) the feasibility and effectiveness of providing 
an incentive in lower premium rates for flood insur-
ance coverage under such Act for structures meeting 
whichever of such widely used and nationally recog-
nized building code or any applicable local building 
code provides greater protection from flood damage; 
(7) the impact of such a building code require-
ment on rural communities with different building 
code challenges than more urban environments; and 
(8) the impact of such a building code require-
ment on Indian reservations. 
SEC. 371. STUDY ON GRADUATED RISK. 
(a) STUDY.—The National Academy of Sciences shall 
conduct a study exploring methods for understanding 
graduated risk behind levees and the associated land de-
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velopment, insurance, and risk communication dimensions, 
which shall— 
(1) research, review, and recommend current 
best practices for estimating direct annualized flood 
losses behind levees for residential and commercial 
structures; 
(2) rank such practices based on their best 
value, balancing cost, scientific integrity, and the in-
herent uncertainties associated with all aspects of 
the loss estimate, including geotechnical engineering, 
flood frequency estimates, economic value, and direct 
damages; 
(3) research, review, and identify current best 
floodplain management and land use practices be-
hind levees that effectively balance social, economic, 
and environmental considerations as part of an over-
all flood risk management strategy; 
(4) identify examples where such practices have 
proven effective and recommend methods and proc-
esses by which they could be applied more broadly 
across the United States, given the variety of dif-
ferent flood risks, State and local legal frameworks, 
and evolving judicial opinions; 
(5) research, review, and identify a variety of 
flood insurance pricing options for flood hazards be-
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hind levees which are actuarially sound and based on 
the flood risk data developed using the top three 
best value approaches identified pursuant to para-
graph (1); 
(6) evaluate and recommend methods to reduce 
insurance costs through creative arrangements be-
tween insureds and insurers while keeping a clear 
accounting of how much financial risk is being borne 
by various parties such that the entire risk is ac-
counted for, including establishment of explicit limits 
on disaster aid or other assistance in the event of a 
flood; and 
(7) taking into consideration the recommenda-
tions pursuant to paragraphs (1) through (3), rec-
ommend approaches to communicating the associ-
ated risks to community officials, homeowners, and 
other residents. 
(b) REPORT.—Not later than the expiration of the 
12-month period beginning on the date of the enactment 
of this Act, the National Academy of Sciences shall submit 
a report to the Committees on Financial Services and 
Science, Space, and Technology of the House of Rep-
resentatives and the Committees on Banking, Housing, 
and Urban Affairs and Commerce, Science and Transpor-
tation of the Senate on the study under subsection (a) in-
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