,,ii #aaith ,,congress #b;d ,session ,s4 #eajf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bc1 #bjbf,mr4 ,merkley introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to establish a grant program to promote wildfire resilience investments and a pilot program to reduce the cost burden of insurance premiums1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,wildfire ,insurance ,affordability ,act4 #b4 ,wildfire ,risk ,reduction ,grant ,program 7a7 ,definitions ,in this section3 7#a7 ,eligible recipient ,the term eligible recipient-- 7,a7 means the ,department of ,insurance or comparable agency of a ,state of the ,united ,states1 the ,district of ,columbia1 any commonwealth or territory of the ,united ,states1 or an ,indian ,tribe2 and 7,b7 includes a subgrantee of a recipient described in subparagraph 7,a7 that is a local fire department1 rural fire protection district1 or other similar entity4 7#b7 ,indian ,tribe ,the term ,indian ,tribe has the meaning given that term in section #d of the ,indian ,self-,determination and ,education ,assistance ,act 7#be ,u4,s4,c4 #ecjd74 7b7 ,establishment 7#a7 ,in general ,not later than #ij days after the date of enactment of this ,act1 the ,united ,states ,fire ,administrator shall establish the ,wildfire ,risk ,reduction ,grant ,program to provide formula grants to eligible recipients to promote wildfire resilience1 including to support home hardening1 defensible space1 and other wildfire mitigation investments to owner-occupied primary residences1 multifamily residential properties with less than five units1 and affordable housing facilities4 7#b7 ,formula ,the ,united ,states ,fire ,administrator shall distribute amounts under the ,wildfire ,risk ,reduction ,grant ,program as follows3 7,a7 #be percent distributed among all eligible recipients1 in amounts proportionate to the population of each such eligible recipient1 as determined by the ,united ,states ,fire ,administrator1 the ,secretary of the ,department of the ,interior1 and the ,chief of the ,forest ,service1 using census data4 7,b7 #ej percent distributed among each eligible recipient1 as a risk adjustment1 to increase the eligible recipient's allocation based on-- 7i7 frequency of severe fires within the eligible recipient2 7ii7 population and number of structures located within the wildfire urban interface1 using census data2 and 7iii7 overall heightened wildfire risk as determined under the ,national ,risk ,index of the ,federal ,emergency ,management ,agency4 7,c7 #be percent distributed among each eligible recipient1 as an equity adjustment1 to increase the eligible recipient's allocation based on the relative need for fire risk mitigation assistance among low-income households and rural communities1 based on-- 7i7 median household income 7by county71 using census data2 7ii7 presence of ,indian ,tribes2 and 7iii7 other factors1 as determined by the ,united ,states ,fire ,administrator1 the ,secretary of the ,department of the ,interior1 and the ,chief of the ,forest ,service4 7c7 ,uses of grant awards 7#a7 ,in general ,eligible recipients may use grants awarded under subsection 7b7 to provide grants to nonprofit organizations1 local governments1 and individuals for any of the following purposes3 7,a7 ,supporting residential fire resilience and mitigation programs throughout the eligible recipient4 7,b7 ,with respect to residential properties3 7i7 ,improving the durability and fire resistance of a roof covering 7to a minimum of a class ,a rating74 7ii7 ,protecting propane tanks or other external fuel sources4 7iii7 ,installing roof coverings1 sheathing1 flashing1 roof and attic vents1 eaves1 or gutters that conform to ignition-resistant construction standards4 7iv7 ,installing wall components for wall assemblies that conform to ignition-resistant construction standards4 7v7 ,installing exterior walls1 doors1 windows1 or other exterior dwelling unit elements that conform to ignition-resistant construction standards4 7vi7 ,replacing existing exterior deck or fence components with materials that conform to ignition-resistant construction standards4 7vii7 ,installing structure-specific water hydration systems1 including fire mitigation systems such as interior sprinkler systems4 7viii7 ,installing automatic shutoff valves for gas lines4 7ix7 ,procuring services and equipment to create buffers around a dwelling unit through the removal or reduction of flammable vegetation1 the removal of exterior deck or fence components1 removal of ignition-prone landscape features4 7x7 ,performing other fire mitigation procedures identified by the ,united ,states ,fire ,administrator1 the ,secretary of the ,department of the ,interior1 or the ,chief of the ,forest ,service1 including fuel management techniques such as fuel or fire breaks4 7xi7 ,installing or retrofitting structural components of exterior openings to reduce wildfire smoke or airborne particulates1 including by sealing or weatherstripping windows1 exterior doors1 pet doors1 or other exterior openings1 or making other structural improvements identified by the ,united ,states ,fire ,administrator1 the ,secretary of ,interior1 and the ,chief of the ,forest ,service to reduce wildfire smoke damage4 7,c7 ,other activities that increase safety and reduce residential wildfire risk1 as determined by the ,united ,states ,fire ,administrator1 in consultation with the ,chief of the ,forest ,service and ,secretary of the ,interior4 7#b7 ,meeting industry standards ,with respect to any grant awarded to improve a household under paragraph 7#a71 the grant award shall be used for activities that qualify the household under the guidance and certification process of the ,insurance ,institute for ,business and ,home ,safety1 the ,firewise ,,usa standards of the ,national ,fire ,protection ,association1 or a comparable industry standard1 as determined by the administering ,state agency4 7#c7 ,administrative costs ,an eligible recipient may use not more than #aj percent of the amount of the grant awarded under subsection 7b7 for the administrative costs of the eligible recipient4 7d7 ,limitation ,the maximum grant under this section shall be #aj1jjj per household4 7e7 ,report required ,the ,united ,states ,fire ,administrator shall collect from each eligible recipient receiving a grant under this section a report on the use of the grant that includes performance metrics and information on mitigation cost savings4 #c4 ,homeowner's ,wildfire ,insurance ,premium ,assistance ,voucher ,pilot ,program 7a7 ,establishment ,not later than #ahj days after the date of enactment of this ,act1 the ,united ,states ,fire ,administrator1 in consultation with the ,chief of the ,forest ,service and the ,secretary of the ,interior1 shall establish a pilot program to provide means-tested voucher-based premium assistance for wildfire insurance to eligible households in the form of grants to ,states that would distribute vouchers to qualifying households4 7b7 ,qualifying household defined ,for purposes of this section1 a qualifying household means a household-- 7#a7 residing in a residential dwelling with an elevated wildfire risk1 as determined by the ,state insurance commissioner using the ,national ,risk ,index of the ,federal ,emergency ,management ,agency or a ,state-approved risk index2 7#b7 that has completed risk reduction investments toward an industry standard for fire safety under section #b7;c77#b72 and 7#c7 with a household income equal to or less than #hj percent of the area median income1 using the most recent census data1 for the area in which the property is located4 7c7 ,value of voucher ,the value of any voucher distributed under subsection 7a7 shall be determined by the ,state insurance commissioner4 7d7 ,administrative costs ,the pilot program established under subsection 7a7 may use not more than #aj percent of the amounts made available for the program for administrative costs4 7e7 ,reports ,not later than #a year after the date of enactment of this ,act1 and annually thereafter1 the ,united ,states ,fire ,administrator1 in coordination with the administering agencies of each ,state receiving a grant under the pilot program under subsection 7a71 shall submit to ,congress a report on the results of the pilot program and an assessment of whether the pilot program has reduced the cost burden of insurance premiums and retained private insurers in ,state markets4 7f7 ,sunset ,this section shall cease to have force or effect on the date that is five years after the date of establishment of the pilot program under subsection 7a74 #d4 ,exclusion of amounts received from grant programs 7a7 ,in general ,section #aci of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7h7 as subsection 7i7 and by inserting after subsection 7g7 the following new subsection3 7h7 ,state-,based catastrophe loss mitigation programs 7#a7 ,in general ,gross income shall not include any amount received by or paid for the benefit of an individual as a qualified catastrophe mitigation payment under a program established by-- 7,a7 a ,state or any political subdivision or public instrumentality thereof1 7,b7 a joint powers authority1 or 7,c7 an entity created by ,state law to ensure the availability of an adequate market of last resort for essential property insurance or basic property insurance1 over which a ,state agency or ,state department of insurance has regulatory oversight1 for the purpose of making such payments4 7#b7 ,qualified catastrophe mitigation payment ,for purposes of this section1 the term qualified catastrophe mitigation payment means any amount received under a grant under section #b or #c of the ,wildfire ,insurance ,affordability ,act4 7#c7 ,no increase in basis ,rules similar to the rules of subsection 7g77#c7 shall apply in the case of this subsection4 4 7b7 ,conforming amendments 7#a7 ,section #aci7;d7 of the ,internal ,revenue ,code of #aihf is amended by striking and qualified and inserting 1 qualified catastrophe mitigation payments1 and qualified4 7#b7 ,section #aci7;i7 of such ,code 7as redesignated by subsection 7a77 is amended by striking or qualified and inserting 1 qualified catastrophe mitigation payment1 or qualified4