Preventing Environmental Hazards Act of 2025
The Preventing Environmental Hazards Act of 2025 would add an erosion-related protection option to the National Flood Insurance Program (NFIP). When a shoreline structure covered by NFIP insurance is condemned or deemed unsafe due to imminent shoreline erosion, subsidence, or the structure being partially/wholly over water (including being below Mean Higher High Water on tidal waterbodies), the bill requires the NFIP Administrator to provide demolition or relocation payments. Payments are structured with initial and subsequent disbursements, are subject to caps (including a maximum of $250,000 and other limits), and exclude contents coverage. The bill also places conditions on eligibility, the effect on future NFIP or disaster relief assistance, and requires federal regulations to implement these provisions. It takes effect on enactment. In short, the bill creates a targeted, erosion-related payout mechanism within NFIP for at-risk shoreline structures, prioritizing demolition or relocation and limiting ongoing NFIP support for those structures after a final determination of risk.
Key Points
- 1Adds erosion coverage to NFIP for structures on shorelines that are condemned or deemed unsafe due to imminent erosion, subsidence, or being partially/wholly over water (including below Mean Higher High Water in tidal areas); eligibility requires state/local certification and final federal regulatory alignment.
- 2Demolition option: after final determination, 40% of the structure’s value is paid up front; the remaining 60% is paid after demolition (within 6 months) or upon completion of demolition (whichever is earlier) up to the lesser of cost or value.
- 3Relocation option: after final determination, up to 40% of the structure’s value can be paid for relocation, with total payments not exceeding actual relocation costs.
- 4Limits and exclusions: the total payment cannot exceed the lesser of the NFIP coverage for the structure or $250,000, and contents are not covered under this provision.
- 5Eligibility and duration: applies to NFIP contracts entered into after enactment or in effect on enactment; does not apply to structures not subject to NFIP at certification; coverage requires either 12 months of NFIP coverage by enactment or 4 years of continuous coverage before certification.
- 6Post-determination effects and regulations: after a final determination, no further NFIP or Disaster Relief Act assistance can be provided for the same structure (or other structure on the same parcel) except for certain emergency assistance; the Administrator must issue regulations to implement these provisions, but the protections apply to imminently eroding structures even before regulations are issued.