§ 1106 — Dam Safety Revolving Loan Fund

(a) There is hereby established a special fund to be known as the Vermont Dam Safety Revolving Loan Fund that shall be used to provide low- or zero-interest loans, including subsidized loans as established under subsection (b) of this section and the rules adopted under section 1110 of this title, pursuant to rules adopted by the Agency of Natural Resources, for the reconstruction, repair, removal, breaching, draining, or other action necessary to reduce the risk of a dam.
(b) Funds from the Dam Safety Revolving Loan Fund shall be available for both emergency and nonemergency projects. To be eligible for a Dam Safety Loan, the dam shall meet the conditions associated with the funding type:
(1) Emergency funding. To provide emergency funding for critical, time-sensitive temporary safety or risk reduction measures such as reservoir drawdown, partially or fully breaching the dam, stabilization or buttressing of the dam, including engineering and emergency action planning activities. To be eligible for emergency funding, the dam must meet the following criteria:
(A) The dam must be under the regulatory jurisdiction of the DEC Dam Safety Program, including dams owned by the State of Vermont.
(B) The dam must be in need of critical time-sensitive safety or risk reduction measures in order to protect public safety and property, or be a dam found to be unsafe or a menace to public safety under section 1095 of this title. The Dam Safety Program shall be able to access the fund on behalf of owners in cases of emergency, immediate need, or in the case of unwilling or unable dam owners.
(2) Nonemergency funding. For permanent safety or risk reduction projects such as repair, rehabilitation, or removal, including engineering, analyses, design, and construction. To be eligible for nonemergency funding, the dam must meet the following criteria:
(A) The dam must be under the regulatory jurisdiction of the DEC Dam Safety Program, excluding dams owned by the State of Vermont.
(B) The dam must be classified as a significant or high-hazard potential dam and in fair, poor, or unsatisfactory condition based on the last periodic or comprehensive inspection.
(C) For funding for nonemergency repair or rehabilitation projects, the dam owner shall provide an operation and maintenance plan and dam safety compliance schedule as well as financial information to show sufficient resources are available to maintain the dam and comply with the dam safety rules after the completion of repairs or the rehabilitation project.
(D) For funding for nonemergency construction, the applicant shall provide proof that applicable local, State, and federal permits have been obtained, including the State Dam Safety Order.
(E) To be eligible for nonemergency funding, an alternatives analysis of dam repair, rehabilitation, and removal options that considers an evaluation of risk reduction, dam safety and ecological resilience and public benefits considerations, and costs shall be completed, pursuant to the rule adopted by the Department.
(F) Under this subdivision (b)(2), only engineering, analysis, design, and construction that result in acceptable risk reduction are eligible for loan subsidy.
(c) The Fund created by this section shall be established and held separate and apart from any other funds or monies of the State and shall be used and administered exclusively for the purposes set forth in this section. The funds shall be invested in the same manner as permitted for investment of funds belonging to the State or held in the Treasury. The Fund shall consist of the following:
(1) such sums as may be appropriated or transferred thereto from time to time by the General Assembly, the Emergency Board, or the Joint Fiscal Committee during such times as the General Assembly is not in session;
(2) principal and interest received from the repayment of loans made from the Fund;
(3) capitalization grants and awards made to the State by the United States of America for the purposes for which the Fund has been established;
(4) interest earned from the investment of Fund balances;
(5) private gifts, bequests, and donations made to the State for the purposes for which the Fund has been established; and
(6) other funds from any public or private source intended for use for any of the purposes for which the Fund has been established.
(d) The Secretary may bring an action under this subsection or other available State and federal laws against the owner of the dam to seek reimbursement to the Fund for all loans made from the Fund pursuant to this section.
(e)(1) Annually, on or before January 31, the Department shall report to the House Committee on Environment and the Senate Committee on Natural Resources and Energy regarding operation and administration of the Dam Safety Program. The report shall include:
(A) details on all emergency and nonemergency loans made from the Dam Safety Fund during the previous year;
(B) a description of each project funded from the Dam Safety Fund, including dam name, town and waterbody in which the dam is located, hazard classification, dam condition, details of the repair or removal, year of the last and next Department inspection, project cost, loan amount, and repayment terms;
(C) for emergency loans, justification for the emergency and an explanation why action was needed to be undertaken immediately using State funds; and
(D) a projection of loan repayment income to the Fund.
(2) The Department shall post reports made under this subsection to its website on the same date the report is submitted to the General Assembly. (Added 2003, No. 121 (Adj. Sess.), § 66, eff. June 8, 2004; amended 2013, No. 34, § 6a; 2023, No. 121 (Adj. Sess.), § 18, eff. July 1, 2024.)