SEC. 2. REVOLVING LOAN FUNDS TO MITIGATE FOR MUL-
TIPLE HAZARDS. 
Title II of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5131 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 205. REVOLVING LOAN FUND. 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘eligible entity’ means a State or 
Indian Tribal Government as those terms are de-
fined in section 102 of this Act; 
‘‘(2) the term ‘participating entity’ means an el-
igible entity that— 
‘‘(A) has entered into an agreement under 
subsection (b)(1); and 
‘‘(B) agrees to comply with the require-
ments of this section; 
‘‘(3) the term ‘mitigation loan fund’ means a 
multihazard mitigation assistance revolving loan 
fund established by an eligible entity under this sec-
tion; and 
‘‘(4) the term ‘eligible recipient’ means a local 
governmental entity, a State agency or subdivision 
thereof. 
‘‘(b) GENERAL AUTHORITY.— 
‘‘(1) IN
GENERAL.—The Administrator may 
enter into an agreement with an eligible entity to 
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provide a capitalization grant for the eligible entity 
to establish a revolving loan fund that will provide 
funding assistance to an eligible recipient to reduce 
disaster risks for homeowners, businesses, nonprofit 
organizations, and communities in order to de-
crease— 
‘‘(A) the loss of life and property; 
‘‘(B) the cost of insurance; and 
‘‘(C) Federal disaster payments. 
‘‘(2) TIMING
OF
DEPOSIT
AND
AGREEMENTS 
FOR DISTRIBUTION OF FUNDS.— 
‘‘(A) IN
GENERAL.—Not later than the 
last day of the fiscal year following the fiscal 
year in which a capitalization grant is made to 
a participating entity under paragraph (1), the 
participating entity shall— 
‘‘(i) deposit the grant in the mitiga-
tion loan fund of the eligible entity; and 
‘‘(ii) enter into 1 or more agreements 
to distribute the grant funds for purposes 
authorized under subsection (d). 
‘‘(B) NONCOMPLIANCE.—Except as pro-
vided in subparagraph (C), if a participating 
entity does not comply with subparagraph (A) 
with respect to a grant, the Administrator shall 
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reallocate the grant in accordance with para-
graph (3). 
‘‘(C) 
EXCEPTION.—The 
Administrator 
may not reallocate any funds under subpara-
graph (B) to a participating entity that violated 
subparagraph (A) with respect to a grant made 
during the same fiscal year in which the funds 
to be reallocated were originally made available. 
‘‘(3) ALLOCATION.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall allocate amounts made available to carry 
out this section to participating entities— 
‘‘(i) for the participating entities to 
deposit in the mitigation loan funds estab-
lished by the participating entities; and 
‘‘(ii) except as provided in paragraph 
(5), in accordance with the requirements 
described in subparagraph (B). 
‘‘(B) REQUIREMENTS.—The requirements 
described in this subparagraph are as follows: 
‘‘(i) Eligible entities must apply to the 
Administrator for an allocation of financial 
assistance to capitalize the loans and com-
mit to a 10 percent match of the requested 
funds. 
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‘‘(ii) Seventy-five percent of the 
project selection must be composed of local 
government hazard mitigation projects and 
eligible entities must give at least 3 weeks 
notice to their local governments before re-
quiring all hazard mitigation projects to be 
submitted. 
‘‘(iii) Eligible entities may not provide 
more than $5,000,000 in loan funds to-
ward the completion of any single hazard 
mitigation project. 
‘‘(iv) A participating entity must 
agree to the revolving loan repayment 
terms issued by the Administrator upon 
being selected to participate. 
‘‘(v) No more than 10 percent of the 
loan funds provided to a participating enti-
ty may be used for the purposes of plan-
ning. 
‘‘(C) PRIORITIZATION.—The Administrator 
shall prioritize loan funds to participating enti-
ties with intended use plans that include 
projects that— 
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‘‘(i) include the restoration and aug-
mentation of natural and built infrastruc-
ture; 
‘‘(ii) involve more than 1 eligible enti-
ty or recipient partnering together; 
‘‘(iii) take into account regional im-
pacts of hazards such as— 
‘‘(I) river basins; 
‘‘(II) river corridors; 
‘‘(III) micro and macro water-
sheds; and 
‘‘(IV) estuaries, bays, and coastal 
regions; and 
‘‘(iv) involve the resilience of major 
economic sectors and critical national in-
frastructure such as ports, power and 
water production and distribution centers, 
bridges, and waterways essential to inter-
state commerce. 
‘‘(4) FURTHER
REVOLVING
FUND
REQUIRE-
MENTS.—A participating entity that exercises the 
authority under paragraph (3)(A) in a fiscal year 
shall provide matching funds from non-Federal 
sources in an amount that is equal to 10 percent of 
the amount that the participating entity receives 
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under paragraph (3)(A) in that fiscal year for pur-
poses described in the respective intended use plan. 
‘‘(5) RESERVATION OF FUNDS.—The Adminis-
trator shall reserve not more than 1.5 percent of the 
amount made available to carry out this section in 
a fiscal year— 
‘‘(A) for administrative costs incurred by 
FEMA in carrying out this section; and 
‘‘(B) for FEMA to provide technical assist-
ance to recipients of loans under this section. 
‘‘(6) PARTNERSHIPS.—Eligible recipients may 
partner with nongovernmental organizations to en-
sure projects reduce disaster risks for homeowners, 
businesses, nonprofit organizations, and commu-
nities. 
‘‘(c) ENVIRONMENTAL REVIEW OF REVOLVING LOAN 
FUND PROJECTS.—Notwithstanding any other Federal 
law, Federal environmental review of the mitigation loan 
fund projects shall be delegated to the participating enti-
ties but only for the purposes of carrying out the mitiga-
tion revolving loan fund program as authorized under this 
section. Such participating entities shall establish a Fed-
eral equivalency environmental review involving consider-
ation of alternatives, analysis of potential effects, oppor-
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the participating entity, which may require an 
applicant for financial assistance to submit a 
cost-benefit analysis before the date on which 
the applicant receives the assistance; 
‘‘(B) shall use the amounts for projects 
that are located in communities that have devel-
oped a local hazard mitigation plan that has 
been approved by the Administrator; 
‘‘(C) may use the amounts to— 
‘‘(i) establish and carry out enforce-
ment activities and implement consensus- 
based codes, specifications, and standards; 
‘‘(ii) study special zoning overlay dis-
tricts that better interface waterfront de-
velopment with natural assets through the 
use of buffer zones and shoreline set-backs, 
protect freshwater resources for drinking 
and manufacturing, and flood prevention 
through installation and restoration of nat-
ural infrastructure such as connected 
floodplain, 
wetlands, 
marshes, 
setback 
areas, and riverfront parks; 
‘‘(iii) study agriculture risk compensa-
tion districts where there is a desire to re-
move or set-back levees protecting highly 
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developed agricultural land to mitigate for 
flooding, allowing agricultural producers to 
receive compensation for assuming greater 
flood risk that would alleviate flood expo-
sure to population centers and areas with 
critical national infrastructure; 
‘‘(iv) study land use incentives that 
reward developers for greater reliance on 
LID stormwater best management prac-
tices, exchange density increases for in-
creased open space and improvement of 
neighborhood catch basins to mitigate 
urban flooding, reward developers for in-
cluding and augmenting natural infrastruc-
ture adjacent to and around building 
projects without reliance on increased 
sprawl; or 
‘‘(v) study an erosion response plan 
that accommodates river, lake, and ocean 
shoreline retreating or bluff stabilization 
due to increased flooding and disaster im-
pacts. 
‘‘(3) ALLOWANCE.—The Administrator shall 
promulgate an allowance within this section to allow 
participating entities to use revolving loan funds to-
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ward resilience to hazards. Participating entities 
may direct a portion of revolving loan funds toward 
resilience activities that mitigate for the impacts of 
the following: 
‘‘(A) FLOODING.—Funds may be applied 
to— 
‘‘(i) structural elevation; 
‘‘(ii) flood proofing; 
‘‘(iii) the relocation or removal of 
buildings; 
‘‘(iv) environmental restoration activi-
ties that directly reduce flood risk; 
‘‘(v) construction, repair or replace-
ment of non-Federal levees; 
‘‘(vi) nonprofits, businesses, and other 
nongovernmental entities for projects that 
will reduce flood risk; and 
‘‘(vii) other activities determined ap-
propriate by the Administrator. 
‘‘(B) DROUGHT
AND
PROLONGED
EPI-
SODES OF INTENSE HEAT.—Funds may be ap-
plied to— 
‘‘(i) 
planning 
and 
protocols 
for 
healthcare facility response and plans that 
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add heat-related illness treatment capac-
ities; 
‘‘(ii) planning and protocols for the 
deployment of cooling centers for vulner-
able populations; 
‘‘(iii) heat island and heat sink effect 
reduction activities such as— 
‘‘(I) increasing urban canopies; 
and 
‘‘(II) replacing natural assets 
more suited to drought and warmer 
climates; 
‘‘(iv) replacing infrastructure vulner-
able to the rapid deteriorating effects of in-
tense heat with better alternatives includ-
ing natural solutions; 
‘‘(v) restoration of natural infrastruc-
ture such as forests to absorb heat effects; 
‘‘(vi) restoration and installment of 
wetlands and marshes to retain moisture 
during drought and intensely hot periods; 
‘‘(vii) increased urban green space 
that works to reduce heat island effects; 
‘‘(viii) water conservation plans and 
protocols designed for severe drought; and 
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‘‘(ix) small business assistance pro-
gram assembly and planning for businesses 
likely to be most impacted by drought. 
‘‘(C) SEVERE STORMS.—Funds may be ap-
plied to mitigation and resilience for the fol-
lowing: 
‘‘(i) 
STRAIGHT-LINE
WINDS
AND 
TORNADIC ACTIVITY.—Funds may be used 
for infrastructure resilience activities that 
mitigate against significant wind storms 
especially where there is high vulnerability 
to utility systems that may incur prolonged 
service interruption due to canopy over-
growth and exposed transmission links, in-
cluding restoration of forests, tree lines, 
and natural buffer zones designed to chan-
nel, shield, and reduce wind damage to 
critical infrastructure. 
‘‘(ii) TROPICAL
CYCLONES.—Funds 
may be used for infrastructure resilience 
activities that mitigate against impacts as-
sociated with tropical cyclones. 
‘‘(iii) ICE, SNOW, EXTREME COLD.— 
Funds may be used for infrastructure re-
silience activities that mitigate against im-
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pacts associated with winter storms, in-
cluding— 
‘‘(I) physical improvement and 
signage of evacuation routes; 
‘‘(II) establishment or improve-
ment of shelters or warming centers; 
and 
‘‘(III) insulating, relocating, or 
rerouting critical infrastructure that 
mitigates for exposure of utility and 
public transportation assets to snow, 
ice, and extreme cold. 
‘‘(D) WILDFIRES.—Funds may be applied 
to— 
‘‘(i) planning and protocols that re-
duce the risk of wildfires, improve evacu-
ation routes, and better inform the public 
on prevention of and response to wildfires; 
‘‘(ii) installation of built and natural 
infrastructure that reduces the risk of 
wildfires, including— 
‘‘(I) deployment of vegetation 
and ecosystems that retain moisture 
during long hot periods native to the 
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‘‘(E) OTHER CATASTROPHIC EVENTS.— 
‘‘(i) IN
GENERAL.—Eligible entities 
may apply revolving loan funds toward re-
silience and mitigation against a cata-
strophic event the Administrator deter-
mines is either repetitive or is highly likely 
to occur and endanger lives and property 
unless overt action is taken. 
‘‘(ii) CATASTROPHIC EVENTS.—Cata-
strophic events include— 
‘‘(I) chemical spills into public 
water supply reservoirs such as rivers, 
lakes, or groundwater aquifers where 
results could be life-threatening; 
‘‘(II) large-scale algae blooms in 
a public surface water supply res-
ervoir such as a river or lake; 
‘‘(III) rupture of a hazardous 
materials 
pipeline 
that 
transects 
above, below, or through a public 
water supply reservoir such as a river, 
lake, or groundwater aquifers; and 
‘‘(IV) significant contact between 
a land-based waste disposal site cur-
rently housing a hazardous material 
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such as coal ash, mining material, or 
manufacturing slag that may make a 
water body toxic. 
‘‘(iii) RESILIENCE ACTIVITIES.—Resil-
ience activities that are allowed under this 
section may include— 
‘‘(I) strengthening or realignment 
of surface transportation infrastruc-
ture, including ports; 
‘‘(II) installation of emergency 
shut-off valves within hazardous mate-
rial pipeline sections traversing near 
or through public water supplies; 
‘‘(III) removal or relocating of 
land-based waste disposal sites cur-
rently housing a hazardous material 
as long as the new site is not located 
within a floodplain or in or near geo-
logic hazards such as earthquake 
faults or areas prone to tsunami 
liquification or landslides; and 
‘‘(IV) resilience to earthquakes. 
‘‘(4) SAVINGS.—None of the mitigation revolv-
ing loan funds may be used for the benefit of 
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projects, activities or to otherwise mitigate risk on 
Federal land or property. 
‘‘(e) INTENDED USE PLANS.— 
‘‘(1) IN GENERAL.—After providing the oppor-
tunity for public review and comment, each partici-
pating entity shall annually prepare a plan that 
identifies, for the year following the date of issuance 
of the intended use plan, the intended uses of the 
amounts available in the mitigation loan fund of the 
participating entity. 
‘‘(2) CONSULTATION DURING PREPARATION.— 
Each participating entity, in preparing an intended 
use plan, shall ensure that the respective agency of 
the participating entity with primary responsibility 
for emergency management— 
‘‘(A) provides oversight with respect to the 
preparation of the intended use plan; and 
‘‘(B) consults with any other appropriate 
agency of the participating entity, including 
agencies responsible for coastal, environmental 
management, and economic development. 
‘‘(3) CONTENTS.—A participating entity shall, 
in each intended use plan— 
‘‘(A) include— 
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‘‘(i) an explanation of the mitigation 
and resiliency benefits the participating en-
tity intends to achieve, including by— 
‘‘(I) reducing future damage and 
loss associated with hazards included 
in subsection (d)(3); 
‘‘(II) reducing the number of se-
vere repetitive loss properties and re-
petitive loss structures in the partici-
pating entity’s jurisdiction; 
‘‘(III) decreasing the number of 
insurance claims; and 
‘‘(IV) increasing the rating under 
the Community Rating System for 
communities in the geographical juris-
diction of the participating entity; 
‘‘(ii) information with respect to the 
availability of, and the application process 
for receiving, financial assistance from the 
mitigation loan fund; 
‘‘(iii) the criteria and methods estab-
lished for the distribution of amounts from 
the mitigation loan fund; 
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‘‘(iv) the amount of financial assist-
ance that the participating entity antici-
pates allocating to— 
‘‘(I) local government projects; 
and 
‘‘(II) projects benefitting home-
owners, business, or nonprofit organi-
zations; 
‘‘(v) the expected terms of the assist-
ance provided under clause (iv); and 
‘‘(vi) a description of the financial sta-
tus of the mitigation loan fund and the 
short-term and long-term goals of the miti-
gation loan fund; and 
‘‘(B) provide, to the maximum extent prac-
ticable, that priority for the use of amounts 
from the mitigation loan fund shall be given to 
projects that— 
‘‘(i) address severe repetitive loss 
properties and repetitive loss structures; 
‘‘(ii) assist low-income homeowners 
and low-income geographic areas; and 
‘‘(iii) assist vulnerable populations in-
cluding residential facilities with assisted 
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living, group homes for the elderly, or emo-
tional or physically disabled. 
‘‘(4) PUBLICATION.—Each participating entity 
shall publish and periodically update a list of all 
projects receiving funding from the mitigation loan 
fund of the participating entity, which shall in-
clude— 
‘‘(A) the location of each project; 
‘‘(B) the type and amount of assistance 
provided for each project; and 
‘‘(C) the expected funding schedule and 
date of completion of each project. 
‘‘(f) FUND MANAGEMENT.—Amounts in a mitigation 
loan fund shall— 
‘‘(1) remain available for providing financial as-
sistance under this section until distributed; 
‘‘(2) if the amounts are not required for imme-
diate distribution or expenditure, be invested in in-
terest-bearing obligations; and 
‘‘(3) except as provided in subsection (i), in-
clude only— 
‘‘(A) amounts received from capitalization 
grants made under this section; 
‘‘(B) repayments of loans made from the 
fund; 
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