However, it does not contain a provision included in legislation that passed the Senate in 2008 that would forgive the program's more than $18 billion in debt.

The bill is supported by the insurance industry because, unlike legislation passed by the House in 2007, it does not expand the NFIP to include windstorm coverage.

Property Casualty Insurers Association of America (PCI) officials said, "Adding protection already provided by the private market would impact private sector jobs and potentially cost billions in taxpayer subsidies following a major event."

Floor action on the Waters bill will only be delayed if the Congressional Budget Office is not able to provide a report projecting the potential budget cost of the proposed amendments, according to PCI officials.

The issue is critical because the program has lapsed four times since the original reauthorization expired in September 2008.

The program was in limbo the entire month of June after becoming a hostage to parliamentary maneuvers aimed at pushing other legislation through Congress.

The current temporary reauthorization runs out at the end of the federal budget year, Sept. 30.

David Sampson, PCI president and CEO, said, "Short-term patches are dangerous for home and business owners and add uncertainty to the marketplace."

He added, "We urge Congress to consider a long-term solution for the flood insurance program."

The Waters bill seeks to end criticism of prior reforms that mandated increases in rates based on new mapping.

It does this by providing premium discounts for five years to assist consumers in newly designated flood hazard areas who would be subject to a new requirement to purchase flood insurance.

The bill also phases in rates for properties that were not previously in flood plains.

Other provisions include extending the severe repetitive loss grant program to allow government "buy-out" of properties with frequent and severe losses to reduce NFIP losses in the long term.

It also increases the coverage limits available for residential and commercial properties, which have not changed since 1994.

The bill allows for premiums to be paid in installments for lower-income property owners thereby enabling them to afford flood insurance and encouraging them to continue to purchase protection.