SF5002

Purpose

• Establishes a Hazard Mitigation Fund Grants program to support mitigation planning and mitigation projects that reduce the potential effects of emergencies.
• Codifies the program in Minnesota Statutes, creates a Hazard Mitigation Account, and requires reporting on awards and outcomes.

Creation of the Hazard Mitigation Account

• The Hazard Mitigation Account is created in the special revenue fund and is administered by the commissioner.
• Money in the account can be used to provide grants and technical assistance for mitigation planning and projects to reduce long-term risk.
• The account can also be used as the nonfederal share for federal hazard mitigation programs (like BRIC and HMGP) when allowed by federal law.
• Eligible money sources include state appropriations, gifts, grants, federal funds, and interest earnings.

Eligible Applicants and Activities

• Eligible applicants include counties, cities (home rule charter or statutory), towns, school districts, special districts, joint powers authorities, or other local government units.
• Mitigation planning means developing, updating, or implementing plans to reduce risk in line with federal requirements.
• A mitigation project is a cost-effective effort that reduces risk to people and property from hazards, including protecting critical facilities and lifelines and cutting future costs.

Eligible Activities

• Grants may cover planning activities (planning, risk assessments, public engagement, plan adoption) and project activities (scoping, feasibility studies, design, engineering, environmental and historic reviews, permitting, construction, acquisition, and other steps to complete a mitigation project).
• Preaward costs necessary to apply for federal hazard mitigation assistance are eligible.

Application Process and Planning Requirements

• An annual application cycle will be established, with possible additional cycles for disasters or federal funding opportunities.
• Applications can be submitted by any department or agency of an eligible applicant, but must be on behalf of the eligible applicant.
• A mitigation project application must tie to the applicant’s FEMA-approved hazard mitigation plan (44 CFR 201 or successor). If an applicant does not have a current FEMA plan, they may apply for a planning grant to develop one.
• Applications must include a governing body resolution or written action authorizing the application and grant agreements.

Local Cost Share and In-Kind Contributions

• An eligible applicant must contribute at least 25% of project costs.
• Donated materials, equipment, services, and labor can count toward the local share, with rules on valuation (e.g., using prevailing federal minimum wage for nonprofessional labor, staying within highway equipment rates for donated equipment, and documented invoices for donated materials and services).

Priorities and Evaluation Criteria

• Applications are evaluated based on hazard mitigation principles used by federal programs (cost-effectiveness and long-term risk reduction).
• Flood-related applications are considered against local watershed management plans and identified capital improvement programs.
• Factors include: reducing risk to safety-critical facilities, lifelines, and essential services; addressing repetitive loss or recurring impacts; feasibility and readiness; the applicant’s capacity to complete within the grant period.
• Consideration is given to resilience measures, benefits to vulnerable or historically underserved communities, leveraging federal or other nonstate funding, long-term operation and maintenance, and coordination with BRIC and HMGP.

Technical Assistance and Federal Coordination

• The commissioner must provide technical assistance to help eligible applicants identify hazards, develop projects, and apply for federal funds.
• The program will coordinate with the state hazard mitigation plan and may align evaluation methods with BRIC and HMGP.
• Flood-related projects will be coordinated with local watershed management plans and requirements.
• After a state or federal disaster declaration, the commissioner may adjust priorities or add a supplemental application cycle to support opportunities related to the disaster.

Grant Agreements, Oversight, and Reporting

• The commissioner must enter into a grant agreement with each grantee, detailing the scope of work, performance period, reporting requirements, and remedies for nonperformance.
• Grantees must comply with applicable state and federal requirements, including procurement, auditing, and record retention; the commissioner may require repayment of grant funds not spent as required.
• An annual report (by January 15) must be submitted to the chairs and ranking minority members of the House Ways and Means Committee and the Senate Finance Committee, summarizing awards and outcomes.

Changes to Existing Law

• Creates a new Hazard Mitigation Fund Grants program and Hazard Mitigation Account within Minnesota law (Chapter 12B.1), providing funding and authority to support hazard mitigation planning and projects.
• Aligns state programs with federal hazard mitigation funding mechanisms (BRIC and HMGP) and establishes new reporting and oversight requirements.

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Relevant Terms - hazard mitigation - hazard mitigation fund grants - hazard mitigation account - eligible applicant - mitigation planning - mitigation project - FEMA - 44 CFR 201 (Code of Federal Regulations, Part 201) - BRIC (Building Resilient Infrastructure and Communities) - HMGP (Hazard Mitigation Grant Program) - nonfederal share - in-kind donation - special revenue fund - critical facilities - lifelines - repetitive loss - flood-related - watershed management plans - grant agreement - reporting