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Committee approves SB31 to create disaster revolving loans for utilities and political subdivisions
Summary
Senate Bill 31 won committee approval after amendments that set an initial financing level and clarified that loans must be tied to FEMA‑obligated projects; the bill creates zero‑interest loans to help electric co‑ops and political subdivisions execute FEMA‑approved disaster projects.
The Appropriations & Finance Committee voted to give Senate Bill 31 a do-pass recommendation after testimony from emergency‑management officials, county representatives and utility officials.
SB31 establishes two funds: a Natural Disaster Revolving Fund that would provide zero‑interest loans to political subdivisions and electric cooperatives for projects tied to federal disaster reimbursement, and a Federal Reimbursement Revolving Fund to oversee reimbursement of disaster‑related claims.
Representative Vincent, one of the sponsors, said the bill improves on language in prior special‑session legislation and creates financing that helps communities and rural electric co‑ops carry out FEMA‑approved projects. Witnesses from county governments and emergency management said the mechanism would help communities execute work while awaiting federal reimbursement.
Committee members asked how the loans could be used and whether projects already in FEMA queues would be eligible. Sponsors and an emergency‑management representative said loans must be tied to an approved FEMA project worksheet that is written and obligated; the funds are not intended to pay third‑party liability such as wildfire‑liability settlements. The committee heard that many communities still have project worksheets in process from prior disasters, and that this bill is intended to speed execution once projects are obligated by FEMA.
The committee adopted an amendment that set available funding at $50,000,000 for the substitute under consideration (the amendment was referred to in the hearing as 0.232062 0.1). Committee debate noted budget constraints and the intent to return for additional funding in a subsequent budget cycle if the appropriation is shown to be effective.
Vice Chair Dixon asked whether cooperatives and political subdivisions are eligible; the sponsor confirmed both are eligible and said private nonprofit co‑ops qualify under FEMA public assistance rules. The sponsor also emphasized that projects must be FEMA‑obligated to access the loans.
The committee moved the amended bill to do‑pass; Representative Lehi moved the bill and ranking member Chatfield seconded. No opposition was recorded at the committee voice vote and the substitute received a do‑pass recommendation.
