(1) by redesignating paragraphs (4), (5), (6), 
(7), (8), (9), (10), (11), (12), and (13) as para-
graphs (5), (6), (7), (8), (9), (10), (12), (13), (14), 
and (15), respectively; 
(2) by striking paragraph (3) and inserting the 
following: 
‘‘(3) ADMINISTRATOR.—The term ‘Adminis-
trator’ means the Administrator of FEMA. 
‘‘(4) 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 Adminis-
trator shall establish, within FEMA, a program to provide 
grant assistance to States for use in rehabilitation of pub-
licly-owned deficient dams. 
‘‘(b) AWARD OF GRANTS.— 
‘‘(1) APPLICATION.—A State interested in re-
ceiving a grant under this section may submit to the 
Administrator an application for such grant. Appli-
cations submitted to the Administrator under this 
section shall be submitted at such times, be in such 
form, and contain such information, as the Adminis-
trator may prescribe by regulation. 
‘‘(2) IN GENERAL.—Subject to the provisions of 
this section, the Administrator may make a grant 
for rehabilitation of a deficient dam to a State that 
submits an application for the grant in accordance 
with the regulations prescribed by the Adminis-
trator. The Administrator 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 Administrator, in con-
sultation with the Board, shall develop a risk-based pri-
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ority system for use in identifying deficient dams for which 
grants may be made under this section. 
‘‘(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. 
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‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There is authorized to be 
appropriated to carry out this section— 
‘‘(A) $50,000,000 for fiscal year 2007; and 
‘‘(B) $100,000,000 for each of fiscal years 
2008 through 2010. 
‘‘(2) STAFF.—There are authorized to be ap-
propriated to provide for the employment of such ad-
ditional staff of FEMA as are necessary to carry out 
this section $400,000 for each of fiscal years 2007 
through 2009. 
‘‘(3) PERIOD OF AVAILABILITY.—Sums appro-
priated pursuant to this section shall remain avail-
able until expended.’’. 
(c) CONFORMING AMENDMENT.—Such Act (other 
than section 2) is further amended by striking ‘‘Director’’ 
each place it appears and inserting ‘‘Administrator’’. 
SEC. 3. RULEMAKING. 
(a) PROPOSED RULEMAKING.—Not later than 90 
days after the date of enactment of this Act, the Adminis-
trator of the Federal Emergency Management Agency 
shall issue a notice of proposed rulemaking regarding the 
amendments made by section 2 of this Act. 
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(b) FINAL RULE.—Not later than 120 days after the 
date of enactment of this Act, the Administrator shall 
issue a final rule regarding such amendments. 
Æ 
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