The Governor determines whether the damage is severe enough
What the document says“or, regardless of cause, any fire, flood, or explosion, in any part of the State, which in the determination of the Governor of such State (or the Mayor, in the case of the District of Columbia) causes damage of sufficient severity and magnitude to warrant the application of the rules of this section.”
The closing words of the definition in paragraph (2). The event has to be in any part of the State, and the judgment that it causes damage of sufficient severity and magnitude to warrant the application of the rules of this section rests with the Governor of that State, or the Mayor in the case of the District of Columbia. The Act sets no threshold of damage, no measure and no review of that determination.
What the document actually says“or, regardless of cause, any fire, flood, or explosion, in any part of the State, which in the determination of the Governor of such State (or the Mayor, in the case of the District of Columbia) causes damage of sufficient severity and magnitude to warrant the application of the rules of this section.”
The state leader looks at the harm done. The harm must be bad enough. Only then do the tax rules apply.
Someone has to judge how bad the damage is. This law gives that job to the state leader. In DC, it is the mayor. The law does not set a dollar test.
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