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reconstructing, or replacing the facility in its pre-disaster 
location, and if such relocation will effectively mitigate the 
flood risk to the facility. 
LEVEES 
SEC. 606. (a) DEFINITIONS.—In this section— 
(1) the term ‘‘Administrator’’ means the Admin-
istrator of the Federal Emergency Management Agen-
cy; and 
(2) the term ‘‘covered hazard mitigation land’’ 
means land— 
(A) acquired and deed restricted under sec-
tion 404(b) of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 
5170c(b)) before, on, or after the date of enact-
ment of this Act; and 
(B) that is located— 
(i) in a West North Central State; and 
(ii) in a community that— 
(I) is participating in the Na-
tional Flood Insurance Program on the 
date on which a State, local, or tribal 
government submits an application re-
questing to construct a permanent 
flood risk reduction levee under sub-
section (b); and 
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(II) certifies to the Administrator 
and the Chief of Engineers that the 
community will continue to partici-
pate in the National Flood Insurance 
Program. 
(b) AUTHORITY.—Notwithstanding clause (i) or (ii) of 
section 404(b)(2)(B) of the Robert T. Stafford Disaster Re-
lief 
and 
Emergency 
Assistance 
Act 
(42 
U.S.C. 
5170c(b)(2)(B)), the Administrator shall approve the con-
struction of a permanent flood risk reduction levee by a 
State, local, or tribal government on covered hazard mitiga-
tion land if the Administrator and the Chief of Engineers 
determine, through a process established by the Adminis-
trator and Chief of Engineers and funded entirely by the 
State, local, or tribal government seeking to construct the 
proposed levee, that— 
(1) construction of the proposed permanent flood 
risk reduction levee would more effectively mitigate 
against flooding risk than an open floodplain or other 
flood risk reduction measures; 
(2) the proposed permanent flood risk reduction 
levee complies with Federal, State, and local require-
ments, including mitigation of adverse impacts and 
implementation of floodplain management require-
ments, which shall include an evaluation of whether 
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the construction, operation, and maintenance of the 
proposed levee would continue to meet best available 
industry standards and practices and would be the 
most cost-effective measure to protect against the as-
sessed flood risk and minimizes future costs to the 
Federal Government; 
(3) the State, local, or tribal government seeking 
to construct the proposed levee has provided an ade-
quate maintenance plan that documents the proce-
dures the State, local, or tribal government will use 
to ensure that the stability, height, and overall integ-
rity of the proposed levee and the structure and sys-
tems of the proposed levee are maintained, includ-
ing— 
(A) specifying the maintenance activities to 
be performed; 
(B) specifying the frequency with which 
maintenance activities will be performed; 
(C) specifying the person responsible for 
performing each maintenance activity (by name 
or title); 
(D) detailing the plan for financing the 
maintenance of the levee; and 
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(E) documenting the ability of the State, 
local, or tribal government to finance the main-
tenance of the levee. 
(c) MAINTENANCE CERTIFICATION.— 
(1) IN GENERAL.—A State, local, or tribal gov-
ernment that constructs a permanent flood risk reduc-
tion levee under subsection (b) shall submit to the Ad-
ministrator and the Chief of Engineers an annual 
certification indicating whether the State, local, or 
tribal government is in compliance with the mainte-
nance plan provided under subsection (b)(3). 
(2) REVIEW.—The Chief of Engineers shall re-
view a certification submitted under paragraph (1) 
and determine whether the State, local, or tribal gov-
ernment has complied with the maintenance plan. 
SEC. 607. The Administrator of the Federal Emer-
gency Management Agency shall cancel the liquidated bal-
ances of all remaining uncancelled or partially cancelled 
loans disbursed under the Community Disaster Loan Act 
of 2005 (Public Law 109–88) and the Emergency Supple-
mental Appropriations Act for Defense, the Global War on 
Terror, and Hurricane Recovery, 2006 (Public Law 109– 
234), as amended by section 4502 of the U.S. Troop Readi-
ness, Veterans’ Care, Katrina Recovery, and Iraq Account-
ability Appropriations Act, 2007 (Public Law 110–28) to 
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the extent that revenues of the local government during the 
period following the major disaster are insufficient to meet 
the budget of the local government, including additional dis-
aster-related expenses of a municipal character. In calcu-
lating a community’s revenues while determining cancella-
tion, the Administrator shall exclude revenues for special 
districts and any other revenues that are required by law 
to be disbursed to other units of local government or used 
for specific purposes more limited than the scope allowed 
by the General Fund. In calculating a community’s ex-
penses, the Administrator shall include disaster-related cap-
ital expenses for which the community has not been reim-
bursed by Federal or insurance proceeds, debt service ex-
penses, and accrued but unpaid uncompensated absences 
(vacation and sick pay). In calculating the operating deficit 
of the local government, the Administrator shall also con-
sider all interfund transfers. When considering the period 
following the disaster, the Administrator may consider a 
period of 3, 5, or 7 full fiscal years after the disaster, begin-
ning on the date of the declaration, in determining eligi-
bility for cancellation. The criteria for cancellation do not 
apply to those loans already cancelled in full. Applicants 
shall submit supplemental documentation in support of 
their applications for cancellation on or before April 30, 
2014, and the Administrator shall issue determinations and 
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resolve any appeals on or before April 30, 2015. Loans not 
cancelled in full shall be repaid not later than September 
30, 2035. The Administrator may use funds provided under 
Public Law 109–88 to reimburse those communities that 
have repaid all or a portion of loans, including interest, 
provided as Special Community Disaster Loans under Pub-
lic Law 109–88 or Public Law 109–234, as amended by 
section 4502 of Public Law 110–28. Further, the Adminis-
trator may use funds provided under Public Law 109–88 
for necessary expenses to carry out this provision: Provided, 
That the entire amount is designated by the Congress as 
an 
emergency 
requirement 
pursuant 
to 
section 
251(b)(2)(A)(i) of the Balanced Budget and Emergency 
Deficit Control Act of 1985. 
SEC. 608. The Inspector General shall review the ap-
plications for public assistance provided through the Dis-
aster Relief Fund with a project cost that exceeds 
$10,000,000 and the resulting decisions issued by the Fed-
eral Emergency Management Agency for category A debris 
removal for DR–1786 upon receipt of a request from an 
applicant made no earlier than 90 days after filing an ap-
peal with the Federal Emergency Management Agency 
without regard to whether the Administrator of the Federal 
Emergency Management Agency has issued a final agency 
determination on the application for assistance: Provided, 
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That not later than 180 days after the date of such request, 
the Inspector General shall determine whether the Federal 
Emergency Management Agency correctly applied its rules 
and regulations to determine eligibility of the applicant’s 
claim: Provided further, That if the Inspector General finds 
that the Federal Emergency Management Agency deter-
minations related to eligibility and cost involved a 
misapplication of its rules and regulations, the applicant 
may submit the dispute to the arbitration process estab-
lished under the authority granted under section 601 of 
Public Law 111–5 not later than 15 days after the date 
of issuance of the Inspector General’s finding in the pre-
vious proviso: Provided further, That if the Inspector Gen-
eral finds that the Federal Emergency Management Agency 
provided unauthorized funding, that the Federal Emergency 
Management Agency shall take corrective action. 
DISASTER RECOVERY 
SEC. 609. (a) SHORT TITLE.—This section may be 
cited as the ‘‘Disaster Recovery Act of 2012’’. 
(b) HAZARD MITIGATION.— 
(1) IN GENERAL.—Section 404 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5170c) is amended by adding at the 
end the following: 
‘‘(d) EXPEDITED PROCEDURES.— 
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‘‘(1) IN GENERAL.—For the purpose of providing 
assistance under this section, the President shall en-
sure that— 
‘‘(A) adequate resources are devoted to en-
suring that applicable environmental reviews 
under the National Environmental Policy Act 
and historic preservation reviews under the Na-
tional Historic Preservation Act are completed 
on an expeditious basis; and 
‘‘(B) the shortest existing applicable process 
under the National Environmental Policy Act 
and the National Historic Preservation Act shall 
be utilized. 
‘‘(2) AUTHORITY FOR OTHER EXPEDITED PROCE-
DURES.—The President may utilize expedited proce-
dures in addition to those required under paragraph 
(1) for the purpose of providing assistance under this 
section, such as those under the Prototype Pro-
grammatic Agreement of the Federal Emergency 
Management Agency, for the consideration of multiple 
structures as a group and for an analysis of the cost- 
effectiveness and fulfillment of cost-share requirements 
for proposed hazard mitigation measures. 
‘‘(e) ADVANCE ASSISTANCE.—The President may pro-
vide not more than 25 percent of the amount of the esti-
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mated cost of hazard mitigation measures to a State grantee 
eligible for a grant under this section before eligible costs 
are incurred.’’. 
(2) ESTABLISHMENT OF CRITERIA RELATING TO 
ADMINISTRATION OF HAZARD MITIGATION ASSISTANCE 
BY STATES.—Section 404(c)(2) of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5170c(c)(2)) is amended by inserting 
‘‘Until such time as the Administrator promulgates 
regulations to implement this paragraph, the Admin-
istrator may waive notice and comment rulemaking 
if the Administrator determines doing so is necessary 
to expeditiously implement this section and may 
carry out the alternative procedures under this section 
as a pilot program’’ after ‘‘applications submitted 
under paragraph (1).’’. 
(3) APPLICABILITY.—The authority under the 
amendments made by this subsection shall apply 
for— 
(A) any major disaster or emergency de-
clared under the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 
5121 et seq.) on or after the date of enactment 
of this Act; and 
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(B) a major disaster or emergency declared 
before the date of enactment of this Act for which 
the period for processing requests for assistance 
has not ended on the date of enactment of this 
Act. 
(c) PUBLIC ASSISTANCE PROGRAM ALTERNATIVE PRO-
CEDURES.—Title IV of the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 5170 et seq.) 
is amended— 
(1) by redesignating section 425 (42 U.S.C. 
5189e) relating to essential service providers, as 
added by section 607 of the SAFE Port Act (Public 
Law 109–347; 120 Stat. 1941) as section 427; and 
(2) by adding at the end the following: 
‘‘SEC. 428. PUBLIC ASSISTANCE PROGRAM ALTERNATIVE 
PROCEDURES. 
‘‘(a) IN GENERAL.—The Administrator of the Federal 
Emergency Management Agency may approve projects 
under the alternative procedures adopted under this section 
for— 
‘‘(1) any major disaster or emergency declared 
on or after the date of enactment of this section; and 
‘‘(2) any project relating to a major disaster or 
emergency declared before the date of enactment of 
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this section for which construction has not begun on 
the date of enactment of this section. 
‘‘(b) ADOPTION.—The Administrator, in coordination 
with States, tribal, and local governments, and owners or 
operators of private nonprofit facilities, may adopt alter-
native procedures to administer assistance provided under 
sections 403(a)(3)(A), 406, 407, and 502(a)(5). 
‘‘(c) GOALS.—Any procedures adopted under sub-
section (b) shall further the goals of— 
‘‘(1) reducing the costs to the Federal Govern-
ment of providing such assistance; 
‘‘(2) increasing flexibility in the administration 
of such assistance; 
‘‘(3) expediting the provision of such assistance 
to States, tribal, and local governments and to owners 
or operators of private nonprofit facilities; and 
‘‘(4) providing financial incentives and disincen-
tives for the State, tribal, or local government, or 
owner or operator of a private nonprofit facility for 
the timely and cost-effective completion of projects 
with such assistance. 
‘‘(d) VOLUNTARY PARTICIPATION.—Participation in 
alternative procedures adopted under this section shall be 
at the election of a State, tribal, or local government, or 
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owner or operator of a private nonprofit facility consistent 
with procedures determined by the Administrator. 
‘‘(e) REQUIREMENTS FOR PROCEDURES.—The alter-
native procedures adopted under subsection (b) shall in-
clude— 
‘‘(1) for repair, restoration, and replacement of 
damaged facilities under section 406— 
‘‘(A) making grants on the basis of fixed es-
timates, if the State, tribal, or local government, 
or owner or operator of the private nonprofit fa-
cility agrees to be responsible for any actual 
costs that exceed the estimate; 
‘‘(B) providing an option for a State, trib-
al, or local government, or owner or operator of 
a private nonprofit facility to elect to receive an 
in-lieu contribution, without reduction, on the 
basis of estimates of— 
‘‘(i) the cost of repair, restoration, re-
construction, or replacement of a public fa-
cility owned or controlled by the State, trib-
al, or local government or the owner or op-
erator of a private nonprofit facility; and 
‘‘(ii) management expenses; 
‘‘(C) consolidating, to the extent determined 
appropriate by the Administrator, the facilities 
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425 
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of a State, tribal, or local government, or owner 
or operator of a private nonprofit facility as a 
single project based upon the estimates adopted 
under the procedures; 
‘‘(D) if the actual costs of a project com-
pleted under the procedures are less than the esti-
mated costs thereof, the Administrator may per-
mit a grantee or subgrantee to use all or part of 
the excess funds for purposes of— 
‘‘(i) cost-effective activities that reduce 
the risk of future damage, hardship, or suf-
fering from a major disaster; and 
‘‘(ii) other activities to improve future 
Public Assistance operations or planning; 
‘‘(E) in determining eligible cost under sec-
tion 406, the Administrator shall make available, 
at an applicant’s request and where the Federal 
Emergency Management Agency or the certified 
cost estimate prepared by the applicant’s profes-
sionally licensed engineers has estimated an eli-
gible Federal share for a project of not less than 
$5,000,000, an independent expert panel to vali-
date the estimated eligible cost consistent with 
applicable regulations and policies implementing 
this section; 
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‘‘(F) in determining eligible cost under sec-
tion 406, the Administrator shall, at the appli-
cant’s request, consider properly conducted and 
certified cost estimates prepared by profes-
sionally licensed engineers (mutually agreed 
upon by the Administrator and the applicant), 
to the extent that such estimates comply with ap-
plicable regulation, policy, and guidance; and 
‘‘(2) 
for 
debris 
removal 
under 
sections 
403(a)(3)(A), 407, and 502(a)(5)— 
‘‘(A) making grants on the basis of fixed es-
timates to provide financial incentives and dis-
incentives for the timely or cost effective comple-
tion if the State, tribal, or local government, or 
owner or operator of the private nonprofit facil-
ity agrees to be responsible to pay for any actual 
costs that exceed the estimate; 
‘‘(B) using a sliding scale for the Federal 
share for removal of debris and wreckage based 
on the time it takes to complete debris and 
wreckage removal; 
‘‘(C) allowing use of program income from 
recycled debris without offset to the grant 
amount; 
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‘‘(D) reimbursing base and overtime wages 
for employees and extra hires of a State, tribal, 
or local government, or owner or operator of a 
private nonprofit facility performing or admin-
istering debris and wreckage removal; 
‘‘(E) providing incentives to State, tribal, 
and local governments to have a debris manage-
ment plan approved by the Federal Emergency 
Management Agency and have pre-qualified one 
or more debris and wreckage removal contractors 
before the date of declaration of the major dis-
aster; and 
‘‘(F) if the actual costs of projects under 
subparagraph (A) are less than the estimated 
costs of the project, the Administrator may per-
mit a grantee or subgrantee to use all or part of 
the excess funds for— 
‘‘(i) debris management planning; 
‘‘(ii) acquisition of debris management 
equipment for current or future use; and 
‘‘(iii) other activities to improve future 
debris removal operations, as determined by 
the Administrator. 
‘‘(f) WAIVER AUTHORITY.—Until such time as the Ad-
ministrator promulgates regulations to implement this sec-
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tion, the Administrator may waive notice and comment 
rulemaking, if the Administrator determines the waiver is 
necessary to expeditiously implement this section, and may 
carry out the alternative procedures under this section as 
a pilot program. 
‘‘(g) REIMBURSEMENT.—The guidelines for reimburse-
ment for costs under subsection (e)(2)(D) shall assure that 
no State, tribal, or local government is denied reimburse-
ment for overtime payments that are required pursuant to 
the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et 
seq.).’’. 
(d) SIMPLIFIED PROCEDURES.—Section 422 of the 
Robert T. Stafford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5189) is amended— 
(1) by striking ‘‘If the Federal estimate’’ and in-
serting the following: 
‘‘(a) IN GENERAL.—If the Federal estimate’’; 
(2) by inserting ‘‘or, if the Administrator has es-
tablished a threshold under subsection (b), the amount 
established under subsection (b)’’ after ‘‘$35,000’’ the 
first place it appears; 
(3) by inserting ‘‘or, if applicable, the amount 
established under subsection (b),’’ after ‘‘$35,000 
amount’’; and 
(4) by adding at the end the following: 
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‘‘(b) THRESHOLD.— 
‘‘(1) REPORT.—Not later than 1 year after the 
date of enactment of the Disaster Recovery Act of 
2012, the President, acting through the Administrator 
of the Federal Emergency Management Agency (in 
this section referred to as the ‘Administrator’), 
shall— 
‘‘(A) complete an analysis to determine 
whether an increase in the threshold for eligi-
bility under subsection (a) is appropriate, which 
shall include consideration of cost-effectiveness, 
speed of recovery, capacity of grantees, past per-
formance, and accountability measures; and 
‘‘(B) submit to the appropriate committees 
of the Congress (as defined in section 602 of the 
Post-Katrina Emergency Management Reform 
Act of 2006 (6 U.S.C. 701)) a report regarding 
the analysis conducted under subparagraph (A). 
‘‘(2) AMOUNT.—After the Administrator submits 
the report required under paragraph (1), the Presi-
dent shall direct the Administrator to— 
‘‘(A) immediately establish a threshold for 
eligibility under this section in an appropriate 
amount, without regard to chapter 5 of title 5, 
United States Code; and 
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