Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. USE OF REPLACEMENT COST IN DETERMINING 
PREMIUM RATES. 
(a) STUDY OF RISK RATING REDESIGN FLOOD INSUR-
ANCE PREMIUM RATING OPTIONS.— 
(1) STUDY.—The Administrator of the Federal 
Emergency Management Agency shall conduct a 
study to— 
(A) evaluate insurance industry best prac-
tices for risk rating and classification, including 
practices related to replacement cost value in 
premium rate estimations; 
(B) assess options, methods, and strategies 
for including replacement cost value in the Ad-
ministrator’s estimates under section 1307(a)(1) 
of the National Flood Insurance Act of 1968 (42 
U.S.C. 4014(a)(1)); 
(C) provide recommendations for including 
replacement cost value in the estimate of the risk 
premium rates for flood insurance under such 
section 1307(a)(1); 
(D) identify an appropriate methodology to 
incorporate replacement cost value into the Ad-
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ministrator’s 
estimates 
under 
such 
section 
1307(a)(1); 
(E) develop a feasible implementation plan 
and projected timeline for including replacement 
cost value in the estimates of risk premium rates 
for flood insurance made available under the Na-
tional Flood Insurance Program. 
(2) REPORT.— 
(A) REQUIREMENT.—Not later than the ex-
piration of the 12-month period beginning on the 
date of the enactment of this Act, the Adminis-
trator shall submit to the Committee on Finan-
cial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban 
Affairs of the Senate a report that contains the 
results and conclusions of the study required 
under paragraph (1). 
(B) 
CONTENTS.—The 
report 
submitted 
under subparagraph (A) shall include— 
(i) an analysis of the recommendations 
resulting from the study under paragraph 
(1) and any potential impacts on the Na-
tional Flood Insurance Program, including 
cost considerations; 
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(ii) a description of any actions taken 
by the Administrator to implement the 
study recommendations; and 
(iii) a description of any study rec-
ommendations that have been deferred or 
not acted upon, together with a statement 
explaining the reasons for such deferral or 
inaction. 
(b) USE OF REPLACEMENT COST VALUE IN PREMIUM 
RATES; IMPLEMENTATION.— 
(1) ESTIMATED RATES.—Paragraph (1) of sec-
tion 1307(a) of the National Flood Insurance Act of 
1968 (42 U.S.C. 4014(a)(1)) is amended, in the mat-
ter preceding subparagraph (A), by inserting after 
‘‘flood insurance’’ the following: ‘‘, which shall incor-
porate replacement cost value, and’’. 
(2) CHARGEABLE RATES.—Subsection (b) of sec-
tion 1308 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4015(b)) is amended, in the matter 
preceding paragraph (1), by inserting after ‘‘Such 
rates’’ the following: ‘‘shall incorporate replacement 
cost value and’’. 
(3) EFFECTIVE DATE.—The amendments under 
paragraphs (1) and (2) of this subsection shall be 
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made upon the expiration of the 12-month period be-
ginning on the date of the enactment of this Act. 
(4) APPLICABILITY AND PHASE-IN.—The Admin-
istrator of the Federal Emergency Management Agen-
cy shall apply the amendments under paragraphs (1) 
and (2) to flood insurance coverage made available 
under the National Flood Insurance Act of 1968 for 
properties located in various geographic regions in 
the United States such that— 
(A) over the period beginning upon the ex-
piration of the period referred to in paragraph 
(3) of this subsection and ending on December 
31, 2020, the requirement under such amend-
ments shall be gradually phased in geographi-
cally throughout the United States as sufficient 
information for such implementation becomes 
available; and 
(B) after the expiration of such period re-
ferred to in subparagraph (A), such amendments 
shall apply to all flood insurance coverage made 
available under the National Flood Insurance 
Act of 1968. 
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Union Calendar No. 156 
115TH CONGRESS 
1ST SESSION 
H. R. 2565 
[Report No. 115–221] 
A BILL 
To require the use of replacement cost value in de-
termining the premium rates for flood insurance 
coverage under the National Flood Insurance 
Act, and for other purposes. 
JULY 14, 2017 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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