Preventing Environmental Hazards Act of 2025

Bill Number: H.R. 3161
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Finance and Financial Sector
Status: Introduced
Latest Action: 2025-05-01: Referred to the House Committee on Financial Services.
Last Updated: 2026-05-02T19:06:20Z

AI-Generated Summary

Purpose of the Legislation

The Preventing Environmental Hazards Act of 2025 (H.R. 3161) aims to expand the National Flood Insurance Program (NFIP) to cover costs for demolishing or relocating structures threatened by shoreline erosion. This helps prevent environmental hazards and property risks from collapsing buildings near water bodies, such as lakes or oceans.

Key Provisions

Eligibility for Coverage: Applies to structures insured under the NFIP that are along the shore of a lake or other body of water and are condemned or deemed unsafe by state or local authorities due to imminent collapse or subsidence (sinking) caused by erosion. This includes structures partially or fully over water, bluffs (steep cliffs), escarpments (sharp slopes), or below the mean higher high water level on tidal waters. Threats can stem from long-term erosion or sudden water surges.

Demolition Payments:
Initial payment: 40% of the structure's value after final approval.
Additional payment: 60% of the value or the actual demolition cost (whichever is less), if completed within 6 months and before collapse (including removal of septic systems).

Relocation Payments:
Up to 40% of the structure's value if the owner chooses relocation (including septic system removal), not exceeding actual costs, provided it occurs before collapse.

Penalties for Delay: If the structure collapses or 6+ months pass without action, and the owner failed to act reasonably, payment is limited to the initial 40%.

Structure Value Calculation: Based on the lowest of:
Fair market value of a comparable non-threatened structure.
Original purchase price plus improvements, adjusted for inflation.
Insured value under the NFIP policy.

Limits and Exclusions:
Maximum payout per claim: The lesser of the policy's coverage amount or $250,000.
Does not cover damage to contents (e.g., furniture or belongings inside the structure).

Coverage Requirements:
Applies to policies in effect or issued after enactment.
Structures must have had NFIP coverage for at least 12 months before enactment or 4 continuous years before the threat certification.
Excludes structures without prior coverage on the certification date.

Termination of Future Coverage: No further NFIP insurance or disaster relief (except emergency aid to save lives or protect health/safety) for the same structure or any new structure on the remaining land parcel.

Implementation: The Federal Emergency Management Agency (FEMA) Administrator must issue regulations. Until then, coverage applies to imminently threatened structures meeting other criteria.

Significant Changes to Existing Law

This bill amends Section 1306 of the National Flood Insurance Act of 1968 (42 U.S.C. 4013) by adding a new subsection (e) for erosion-specific coverage. Previously, the NFIP focused on flood damage but did not explicitly cover proactive demolition or relocation due to erosion threats, leaving such structures vulnerable without tailored insurance support. The changes take effect immediately upon enactment.

Potential Impacts

On Government Agencies: FEMA will handle claims, regulations, and payouts, potentially increasing administrative workload and program costs. This could strain the NFIP's budget, which is funded partly by premiums and federal backing.

On Citizens: Homeowners in erosion-prone coastal or lakeside areas gain financial incentives to demolish or relocate at-risk properties, reducing personal losses from collapse and avoiding environmental hazards like debris in water. However, future coverage bans may limit rebuilding options and raise insurance costs for high-risk zones.

On International Relations: No direct impacts, as the bill focuses on domestic U.S. flood insurance and shoreline management.

Main Stakeholders Affected

Homeowners and Property Owners: Primary beneficiaries in coastal or waterfront areas, especially those with existing NFIP policies facing erosion risks.
State and Local Governments: Responsible for certifying threats; they gain tools to enforce safety without full financial burden.
FEMA and Insurance Providers: Must process new claims and adjust policies, affecting program sustainability.
Coastal Communities and Environmental Groups: Benefit from reduced hazards to waterways and ecosystems, potentially lowering long-term cleanup costs.

Notable Legal, Constitutional, or Political Implications

Legal: Expands NFIP scope without altering core flood definitions, but introduces strict timelines and value caps to prevent abuse. Requires FEMA regulations, which could face challenges if not clearly defined (e.g., what constitutes "reasonable action" by owners).

Constitutional: Aligns with federal authority over interstate commerce and disaster management (via the Commerce Clause), as erosion threats can affect navigable waters. No apparent conflicts with property rights, though termination of future aid might raise takings clause questions in court if seen as devaluing land.

Political: Supports bipartisan coastal resilience efforts (introduced by members from both parties), but could spark debate over NFIP costs amid climate change pressures. Encourages proactive environmental policy by addressing chronic erosion, potentially influencing future disaster legislation.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Murphy, Gregory F. [R-NC-3]

Cosponsors (4)

Rep. Pingree, Chellie [D-ME-1], Rep. Davis, Donald G. [D-NC-1], Rep. Rouzer, David [R-NC-7], Rep. Wittman, Robert J. [R-VA-1]

Recent Actions

2025-05-01: Referred to the House Committee on Financial Services.
2025-05-01: Introduced in House
2025-05-01: Introduced in House

Bill Versions

Preventing Environmental Hazards Act of 2025 — issued 2025-05-01 — PDF (7 pages)