I 
117TH CONGRESS 
1ST SESSION H. R. 3415 
To require the use of replacement cost value in determining the premium 
rates for flood insurance coverage under the National Flood Insurance 
Act, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 20, 2021 
Mr. LUETKEMEYER introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To require the use of replacement cost value in determining 
the premium rates for flood insurance coverage under 
the National Flood Insurance Act, and for other pur-
poses. 
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 IN-
SURANCE PREMIUM RATING OPTIONS.— 
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(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-
ministrator’s estimates under such section 
1307(a)(1); and 
(E) develop a feasible implementation plan 
and projected timeline for including replace-
ment cost value in the estimates of risk pre-
mium rates for flood insurance made available 
under the National Flood Insurance Program. 
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(2) REPORT.— 
(A) REQUIREMENT.—Not later than the 
expiration of the 12-month period beginning on 
the date of the enactment of this Act, the Ad-
ministrator shall submit to the Committee on 
Financial Services of the House of Representa-
tives 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 recommenda-
tions resulting from the study under para-
graph (1) and any potential impacts on the 
National Flood Insurance Program, includ-
ing cost considerations; 
(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. 
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(b) USE OF REPLACEMENT COST VALUE IN PRE-
MIUM 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 
matter preceding subparagraph (A), by inserting 
after ‘‘flood insurance’’ the following: ‘‘, which shall 
incorporate replacement cost value, and’’. 
(2) CHARGEABLE
RATES.—Subsection (b) of 
section 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 
made upon the expiration of the 12-month period 
beginning on the date of the enactment of this Act. 
(4) APPLICABILITY
AND
PHASE-IN.—The Ad-
ministrator of the Federal Emergency Management 
Agency shall apply the amendments under para-
graphs (1) and (2) to flood insurance coverage made 
available under the National Flood Insurance Act of 
1968 for properties located in various geographic re-
gions in the United States such that— 
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(A) over the three-year period beginning 
upon the expiration of the period referred to in 
paragraph (3) of this subsection, the require-
ment under such amendments shall be gradu-
ally phased in geographically 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 amend-
ments shall apply to all flood insurance cov-
erage made available under the National Flood 
Insurance Act of 1968. 
Æ 
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