(1) by redesignating paragraphs (3), (4), (5), 
(6), (7), (8), (9), (19), (11), (12), and (13) as para-
graphs (4), (5), (6), (7), (8), (9), (10), (12), (13), 
(14), and (15), respectively; 
(2) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) DEFICIENT
DAM.—The term ‘deficient 
dam’ means a dam that the State within the bound-
aries of which the dam is located determines— 
‘‘(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 redes-
ignated by paragraph (1)) the following: 
‘‘(11) REHABILITATION.—The term ‘rehabilita-
tion’ means the repair, replacement, reconstruction, 
or removal of a dam that is carried out to meet ap-
plicable 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: 
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‘‘SEC. 8A. REHABILITATION AND REPAIR OF DEFICIENT 
DAMS. 
‘‘(a) ESTABLISHMENT OF PROGRAM.—The Director 
shall establish, within FEMA, a program to provide grant 
assistance to States for use in rehabilitation of publicly- 
owned deficient dams. 
‘‘(b) AWARD OF GRANTS.— 
‘‘(1) APPLICATION.—A State interested in re-
ceiving a grant under this section may submit to the 
Director an application for such grant. Applications 
submitted to the Director under this section shall be 
submitted at such times, be in such form, and con-
tain such information, as the Director may prescribe 
by regulation. 
‘‘(2) IN GENERAL.—Subject to the provisions of 
this section, the Director may make a grant for re-
habilitation of a deficient dam to a State that sub-
mits an application for the grant in accordance with 
the regulations prescribed by the Director. The Di-
rector shall enter into a project grant agreement 
with the State to establish the terms of the grant 
and the project, including the amount of the grant. 
‘‘(c) PRIORITY SYSTEM.—The Director, in consulta-
tion with the Board, shall develop a risk-based priority 
system for use in identifying deficient dams for which 
grants may be made under this section. 
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‘‘(d) ALLOCATION OF FUNDS.—The total amount of 
funds appropriated pursuant to subsection (f)(1) for a fis-
cal year shall be allocated for making grants under this 
section to States applying for such grants for that fiscal 
year as follows: 
‘‘(1) One-third divided equally among applying 
States. 
‘‘(2) Two-thirds among applying States based 
on the ratio that— 
‘‘(A) the number of non-Federal publicly- 
owned dams that the Secretary of the Army 
identifies in the national inventory of dams 
maintained under section 6 as constituting a 
danger to human health and that are located 
within the boundaries of the State; bears to 
‘‘(B) the number of non-Federal publicly- 
owned dams that are so identified and that are 
located within the boundaries of all applying 
States. 
‘‘(e) COST SHARING.—The Federal share of the cost 
of rehabilitation of a deficient dam for which a grant is 
made under this section may not exceed 65 percent of the 
cost of such rehabilitation. 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— 
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