SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Dam Rehabilitation and Repair Act of 
2006''.

SEC. 2. REHABILITATION AND REPAIR OF DEFICIENT DAMS.

    (a) Definitions.--Section 2 of the National Dam Safety Program Act 
(33 U.S.C. 467) is amended--
            (1) by redesignating paragraphs (3), (4), (5), (6), (7), 
        (8), (9), (10), (11), (12), and (13) as paragraphs (4), (5), 
        (6), (7), (8), (9), (10), (12), (13), (14), and (15), 
        respectively;
            (2) by inserting after paragraph (2) the following:
            ``(3) Deficient dam.--The term `deficient dam' means a dam 
        that, as determined by the State within the boundaries of which 
        the dam is located--
                    ``(A) fails to meet minimum dam safety standards of 
                the State; and
                    ``(B) poses an unacceptable risk to the public.''; 
                and
            (3) by inserting after paragraph (10) (as redesignated by 
        paragraph (1)) the following:
            ``(11) Rehabilitation.--The term `rehabilitation' means the 
        repair, replacement, reconstruction, or removal of a dam to 
        meet applicable State dam safety and security standards.''.
    (b) Program for Rehabilitation and Repair of Deficient Dams.--The 
National Dam Safety Program Act is amended by inserting after section 8 
(33 U.S.C. 467f) the following:

``SEC. 8A. REHABILITATION AND REPAIR OF DEFICIENT DAMS.

    ``(a) Establishment of Program.--The Director shall establish, 
within FEMA, a program to provide grants to States for use in 
rehabilitation of publicly-owned deficient dams.
    ``(b) Grants.--
            ``(1) In general.--In carrying out the program established 
        under subsection (a), the Director--
                    ``(A) may provide grants to States for the 
                rehabilitation of deficient dams; and
                    ``(B) shall enter into a project grant agreement 
                with each State that receives a grant to establish the 
                terms of the grant and the project, including the 
                amount of the grant.
            ``(2) Application.--To receive a grant under this section, 
        a State shall submit to the Director an application at such 
        time, in such manner, and containing such information as the 
        Director may require, by regulation.
    ``(c) Priority System.--The Director, in consultation with the 
Board, shall develop a risk-based priority system for use in 
identifying deficient dams for which grants may be provided under this 
section.
    ``(d) Allocation of Funds.--During a fiscal year, of amounts 
appropriated pursuant to subsection (f)(1) for that fiscal year--
            ``(1) \1/3\ shall be distributed equally among the States 
        that receive grants under this section; and
            ``(2) \2/3\ shall be distributed among the States described 
        in paragraph (1) based on the ratio that--
                    ``(A) the number of non-Federal publicly-owned dams 
                located within the boundaries of a State that the 
                Secretary of the Army identifies in the national 
                inventory of dams maintained under section 6 as 
                constituting a danger to human health; bears to
                    ``(B) the number of non-Federal publicly-owned dams 
                so identified located within the boundaries of all 
                States that receive grants under this section.
    ``(e) Cost Sharing.--The Federal share of the cost of 
rehabilitation of a deficient dam for which a grant is made under this 
section shall be not more than 65 percent.
    ``(f) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section, to remain available until expended--
                    ``(A) $50,000,000 for fiscal year 2007; and
                    ``(B) $100,000,000 for each of fiscal years 2008 
                through 2010.
            ``(2) Staff.--There is authorized to be appropriated to 
        provide for the employment of such additional staff of FEMA as 
        the Director determines to be necessary to carry out this 
        section $400,000 for each of fiscal years 2007 through 2009, to 
        remain available until expended.''.

SEC. 3. RULEMAKING.

    (a) Proposed Rulemaking.--Not later than 90 days after the date of 
enactment of this Act, the Under Secretary for Emergency Preparedness 
and Response, acting through the Director of the Federal Emergency 
Management Agency, shall issue a notice of proposed rulemaking 
regarding the amendments made by section 2 to the National Dam Safety 
Program Act (33 U.S.C. 467 et seq.).
    (b) Final Rule.--Not later than 120 days after the date of 
enactment of this Act, the Under Secretary for Emergency Preparedness 
and Response, acting through the Director of the Federal Emergency 
Management Agency, shall promulgate a final rule regarding the 
amendments described in subsection (a).
Dam Rehabilitation and Repair Act of 2006 - Amends the National Dam Safety Program Act to require the Director of the Federal Emergency Management Agency (FEMA) to establish a program to provide grants to states for use in rehabilitating publicly-owned dams that fail to meet minimum safety standards and pose an unacceptable risk to the public (deficient dams).

Sets forth provisions regarding procedures for grant awards and fund allocation. Requires the Director to develop a risk-based priority system for identifying deficient dams for which such grants may be provided. Limits the federal share of rehabilitation costs to 65%.
A bill to amend the National Dam Safety Program Act to establish a program to provide grant assistance to States for the rehabilitation and repair of deficient dams.