Senate Bill 207 establishes two revolving loan programs aimed at addressing hazard mitigation and erosion control along the Great Lakes. The bill authorizes the Department of Military Affairs (DMA) to create a hazard mitigation revolving loan program, which will be funded through a new nonlapsible trust fund called the Hazard Mitigation Revolving Loan Fund. This fund will receive federal grant money from the Federal Emergency Management Agency (FEMA) under the STORM Act, and the secretary of administration is required to transfer 10% of any federal funds received to this fund. The loans will be available to local governments for hazard mitigation projects.

Additionally, the bill mandates the Department of Natural Resources (DNR) to administer a Great Lakes erosion control revolving loan program to assist municipalities and homeowners affected by shoreline erosion. The DNR will receive an appropriation of $5 million for this purpose and will have the authority to create rules governing the program, including eligibility criteria and income limitations. The bill also allows DNR to promulgate emergency rules to expedite the program's implementation before permanent rules are established. Overall, the legislation aims to enhance the state's capacity to manage risks associated with natural disasters and environmental challenges.