Infrastructure Investment and Jobs Act: Opportunities to fund buyouts and conservation land acquisitions to facilitate managed retreat strategies and ecosystem restoration

As climate change and other factors (e.g., development patterns, population changes and transitions) increase the frequency and intensity of flooding and extreme weather events, some coastal and riverine communities are increasingly considering the potential use of managed retreat or relocation as one part of broader adaptation and resilience strategies. The aim of managed retreat is to proactively move people, structures, and infrastructure out of harm’s way before disasters or other threats occur in order to avoid damage, maximize benefits, and minimize costs for communities and ecosystems. 

Managed retreat is an inherently complex and challenging adaptation option. Since 2020, Georgetown Climate Center (GCC) has been working directly with state and local policymakers and communities to provide them with a range of legal, planning, and policy tools they may consider (see, e.g., Managed Retreat Toolkit, Greauxing Resilience at Home: A Regional Vision). Some of the strategies that can be used to facilitate the movement and transition of people and communities require funding to implement. For example, acquisition tools like voluntary buyouts and open space and conservation land purchases requires financial investment, as does the long-term restoration, protection, and monitoring of these property assets. The Infrastructure Investment and Jobs Act (IIJA) presents some potential opportunities for eligible state, tribal and local government entities to pursue funding for these purposes. 

It should be noted that there are other aspects of managed retreat that are also costly. For example, equitable and comprehensive buyouts should include adequate financial and administrative assistance (e.g., money above the fair market value price of a home) for participants to enable people of all income levels to relocate to a less vulnerable area that meets their economic, social, and familial needs; however, GCC has not identified any funding sources in IIJA that could be used for significant managed retreat-related purposes other than those identified for buyouts, land acquisitions, and ecosystem restoration activities.

As one consideration in pursuing an equitable approach to managed retreat, state and local governments should evaluate federal Justice40 guidelines in tandem with many of these potential opportunities. Justice40 is the Biden Administration’s “goal that 40 percent of the overall benefits of certain federal investments flow to disadvantaged communities that are marginalized, underserved, and overburdened by pollution.”^{See footnote 1}  State and local governments should evaluate their own state climate, environmental justice, and equity requirements and policies, where they have been developed, to evaluate their consistency with Justice40, identify strategies to ensure that all applicable laws and policies can be met, and best position grantees for future funding opportunities to increase national, state, tribal, regional, and local resilience. Information regarding the programs covered under Justice40 is found here and is current as of August 18, 2022. 

On November 15, 2021, IIJA became Public Law 117-58. Each description below includes a citation to where the program is listed in IIJA. Any listed page numbers refer to the page numbers of the Public Law 117-58 PDF document linked here. 

Related IIJA Programs

Federal Emergency Management Agency (FEMA)

Building Resilient Infrastructure and Communities (BRIC) Program

• Citation: Division J, Title V, Page 959
• Description: The BRIC Program assists “states, local communities, tribes and territories as they undertake hazard mitigation projects, reducing the risks they face from disasters and natural hazards.”^{See footnote 2}  BRIC “is designed to support state, territorial, and local governments and federally recognized tribes in their efforts to undertake hazard mitigation projects to reduce risks stemming from natural hazards and disasters. BRIC funding is available on an annual basis in states that have received a presidential disaster declaration in the past seven years from the date when FEMA issues a Notice of Funding Opportunity.”^{See footnote 3} 
• Funding: $1B total, $200M each year for fiscal years 2022-2024
• Potential Managed Retreat-Related Use: BRIC funding could be used “to implement nature-based solutions to mitigate flood risk and produce community and ecosystem benefits,” such as voluntary floodplain buyouts.^{See footnote 4} 
• Does Justice40 Apply?: Yes

Flood Mitigation Assistance (FMA) Program

• Citation: Division J, Title V, Pages 959
• Description: Money from the National Flood Insurance Fund can be used for flood mitigation actions and assistance purposes. “The Flood Mitigation Assistance Program is a competitive grant program that provides funding to states, local communities, federally recognized tribes and territories. Funds can be used for projects that reduce or eliminate the risk of repetitive flood damage to buildings insured by the National Flood Insurance Program.”^{See footnote 5} 
• Funding: $3.5B
• Potential Managed Retreat-Related Use: As one example of how FEMA is trying to address flood mitigation assistance with IIJA funding for the FMA program, FEMA launched the Swift Current Initiative. The Swift Current Initiative is intended “to explore how to make flood mitigation assistance available within the disaster recovery timeframe, for repetitively flooded and substantially damaged buildings insured under the National Flood Insurance Program (NFIP) in advance of the annual grant process.”^{See footnote 6}  (Note that funding under the Swift Current Initiative is currently only available to Louisiana, Mississippi, New Jersey, and Pennsylvania.^{See footnote 7} ) Eligible projects under the Swift Current Initiative include property acquisition and structure demolition/relocation.
• Does Justice40 Apply?: Yes

Safeguarding Tomorrow through Ongoing Risk Mitigation (STORM) Act of 2020

• Citation: Division J, Title V, Page 958
• Description: Funding for the STORM Act (Section 205 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. § 5135), for the purposes of “establish[ing] hazard mitigation revolving loan fund programs” that can “fund projects that mitigate natural hazards including wildfires, earthquakes, drought, severe storm events, erosion, storm surges, and high water levels.”^{See footnote 8}  Federal capitalization grants enable local hazard mitigation activities designed to decrease the loss of life and property, insurance costs, and the necessity for future federal disaster relief.^{See footnote 9}   

In order for STORM Act resources to be realized, states (and the District of Columbia, Puerto Rico, and eligible Indian Tribal Governments) must adopt enabling legislation to create the state revolving loan fund.  As of September 1, 2022, three states have enacted laws to create a revolving loan fund program for purposes of implementing the STORM Act, to include Louisiana, Maryland and Virginia.  New Jersey has pending legislation. 

• Funding: $500M total, $100M each year for fiscal years 2022 through 2026
• Potential Managed Retreat-Related Use: STORM Act funding could be used for land-acquisition purchases and post-land acquisition activities related to ecosystem restoration. Note that this source of money is in the form of revolving loan funds. Governments will have to have a revolving loan fund in place before this fund can be accessible.

Department of the Interior (DOI) and Department of Agriculture (USDA)

Ecosystem Restoration

• Citation: Section 40804, Page 677
• Description: Funding for ecological health restoration projects through various programs, which include grants for voluntary ecosystem restoration projects on private or public land, grants for eradicating invasive species on non-Federal and federal land, and funding for the Department of Agriculture to in coordination with the Department of the Interior, to create a collaborative-based, landscape-scale restoration program. 
• Funding: To the Secretary of the Interior and the Secretary of Agriculture, acting through the Chief of the Forest Service, $2.13B for the period of fiscal years 2022 through 2026. 
• Citation: Division J, Title VI, Page 980
• Description: $2,854,000,000 to remain available until expended of which, $2,115,000,000 for the Department of Agriculture acting through the Forest Service for activities as authorized in Sections 40803 and 40804. 
• Potential Managed Retreat Related Use: This funding could be used for post-land acquisition activities aimed at restoring and enhancing the natural ecosystems of the acquired land. 
• Does Justice40 Apply?: Justice40 applies to “Ecosystem Restoration,” “Ecological Health Restoration Contracts,” “Financial Assistance to Facilities That Purchase and Process Byproducts for Ecosystem Restoration Projects,” “Landscape Scale Restoration Water Quality and Fish Passage,” “Recreation Sites,” Restoration Projects Via States and Tribes,” “Restore Native Vegetation on Federal/Non-Federal Land,” and “Revegetation Effort to Implement National Seed Strategy."

Tribal Climate Resilience

• Citation: Division J, Title VI, Page 963
• Description: Money “for tribal climate resilience, adaptation, and community relocation planning, design, and implementation of projects which address the varying climate challenges facing tribal communities across the country.”^{See footnote 10} 
• Funding: $216M ($43.2M to remain available until expended for each year for fiscal years 2022 through 2026)
• $130M for community relocation
• $86M for tribal climate resilience and adaptation projects
• Potential Managed Retreat Related Use: This funding could be used for community relocation. 
• Does Justice40 Apply?: Yes

National Oceanic and Atmospheric Administration (NOAA)

National Coastal Resilience Fund

• Citation: Division J, Title II, Page 927
• Description: The National Coastal Resilience Fund is a partnership between NOAA and the National Fish and Wildlife Foundation. The “Fund restores, increases and strengthens natural infrastructure to protect coastal communities while also enhancing habitats for fish and wildlife.”^{See footnote 11}  The “Fund invests in conservation projects that restore or expand natural features such as coastal marshes and wetlands, dune and beach systems, oyster and coral reefs, forests, coastal rivers and floodplains, and barrier islands that minimize the impacts of storms and other naturally occurring events on nearby communities.”^{See footnote 12} 
• Funding: $492M
• Potential Managed Retreat-Related Use: This funding could be used for post-land acquisition activities aimed at restoring and enhancing the natural ecosystems of the acquired land, which could enhance or include the use of nature-based solutions to flood mitigation and repetitive flooding events. 

Community-Based Restoration Projects

• Citation: Division J, Title II, Page 927
• Description: For contracts, grants, and cooperative agreements to provide funding and technical assistance for purposes of restoring marine, estuarine, coastal, or Great Lakes ecosystem habitat, or constructing or protecting ecological features that protect coastal communities from flooding or coastal storms.
• Funding: $491M
• Potential Managed Retreat-Related Uses: This funding could be used for post-land acquisition activities aimed at restoring and enhancing the natural ecosystems of the acquired land, which could enhance or include the use of nature-based solutions to flood mitigation and repetitive flooding events. 

Coastal Zone Management Program

• Citation: Division J, Title II, Page 928
• Description: Funding “for habitat restoration projects pursuant to section 310 of the Coastal Zone Management Act (16 U.S.C. [§] 1456c), including ecosystem conservation pursuant to section 12502 of the Omnibus Public Land Management Act of 2009 (16 U.S.C. [ §] 1456–1).”^{See footnote 13} 
• Funding: $207M
• Potential Managed Retreat Related Uses: This funding could be used for post-land acquisition activities aimed at restoring and enhancing the natural ecosystems of the acquired land.