I
119th CONGRESS
1st Session
H. R. 3161
IN THE HOUSE OF REPRESENTATIVES
May 1, 2025
Mr. Murphy (for himself, Ms. Pingree, Mr. Davis of North Carolina, Mr. Rouzer, and Mr. Wittman) introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To make protection against damage and loss resulting from the erosion and undermining of shorelines available under the National Flood Insurance Program, and for other purposes.
Short title
This Act may be cited as the Preventing Environmental Hazards Act of 2025
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Flood insurance coverage for structures on land subject to imminent collapse or subsidence
In general
Section 1306 of the National Flood Insurance Act of 1968 (42 U.S.C. 4013) is amended by adding at the end the following new subsection:
Erosion coverage
In general
If any structure covered by a contract for flood insurance under this title and located on land that is along the shore of a lake or other body of water is condemned or deemed unsafe for habitation by a State or local authority due to imminent collapse or subsidence as a result of shoreline erosion or determined by a State or local authority to be situated partially or wholly over water, a shoreline bluff, or escarpment, or below Mean Higher High Water on tidal waterbodies (regardless of whether as a result of long-term, chronic erosion or as a result of waves or currents of water exceeding anticipated cyclical levels), the Administrator shall (following final determination by the Administrator that the claim is in compliance with regulations developed pursuant to paragraph (7)(A)) pay amounts under such flood insurance contract for proper demolition or relocation as follows:
Demolition
For proper demolition—
following final determination by the Administrator, 40 percent of the value of the structure; and
following demolition of the structure (including any septic containment system) within 6 months of payment under clause (i) and prior to collapse, the remaining 60 percent of the value of the structure or the actual cost of demolition, whichever amount is less.
Relocation
For proper relocation (including removal of any septic containment system) if the owner chooses to relocate the structure, following final determination by the Administrator, prior to collapse, up to 40 percent of the value of the structure; except that the total payment under this subparagraph shall not exceed the actual cost of relocation.
Collapse or subsidence
If any structure subject to a final determination under paragraph (1) collapses or subsides, or a period of six or more months elapses, before the owner demolishes or relocates the structure and the Administrator determines that the owner has failed to take reasonable and prudent action to demolish or relocate the structure, the Administrator shall not pay more than the amount provided in paragraph (1)(A)(i) with respect to the structure.
Value of structure
For purposes of paying flood insurance pursuant to this subsection, the value of a structure shall be whichever of the following is lowest:
The fair market value of a comparable structure that is not subject to imminent collapse or subsidence.
The price paid for the structure and any improvement to the structure, as adjusted for inflation in accordance with an index determined by the Administrator to be appropriate.
The value of the structure under the flood insurance contract issued pursuant to this title.
Coverage terms
Maximum claim
Notwithstanding any provision of this subsection, the amount paid under a flood insurance contract in connection with any claim under this subsection may not exceed the lesser of—
the amount of coverage under the flood insurance contract for the structure; or
$250,000.
Exclusion of loss of contents
Flood insurance coverage under this subsection shall not cover any loss of or damage to any contents of a structure.
Applicability
In general
The provisions of this subsection shall apply to contracts for flood insurance under this title that are in effect on, or entered into after, the date of the enactment of this subsection.
Coverage on certification date
The provisions of this subsection shall not apply to any structure not subject to a contract for flood insurance under this title on the date of a certification under paragraph (1).
Period of coverage
The provisions of this subsection shall not apply to any structure unless the structure is covered by a contract for flood insurance under this title—
for a period of 12 months on or before the date of the enactment of this Act; or
for a continuous period of 4 years prior to certification under paragraph (1).
Termination of coverage
For any structure that is subject to a final determination under paragraph (1), no subsequent flood insurance coverage under this title or assistance under the Disaster Relief Act of 1974 (except emergency assistance essential to save lives and protect property, public health and safety) shall be available for the same structure, or a different structure on any remaining portions of the parcel of land originally afforded assistance under this subsection.
Regulations
In general
The Administrator shall promulgate regulations and guidelines to implement this subsection.
Applicability
Prior to issuance of regulations regarding the State and local certifications pursuant to paragraph (1), all provisions of this subsection shall apply to any structure that—
otherwise meets the requirements of this subsection; and
is imminently threatened by shoreline erosion, regardless of whether as a result of long-term, chronic erosion or as a result of waves or currents of water exceeding anticipated cyclical levels.
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Effective date
The amendment made by this section shall become effective on the date of the enactment of this Act.