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owned or backed by a public entity, and many are threatened by state budget cuts. Even the mostsuccessful of these programs can address only a small portion of dams needing upgrades orrepairs, as well over half of the dams in the U.S. are privately owned. See Attachment 3 for details.RecommendationsA dam safety program cannot be complete without a mechanism to address funding for the mostcritical dam repairs and rehabilitation. To address the estimated 51.46 billion cost, the damsafety community advocates a federally backed funding source for dam repair, rehabilitation and,where appropriate, removal.It is estimated that 16 billion is needed over the next 12 years to address the nation’s mostcritical dams—those whose failure would pose direct risks to human life. A stable funding sourceis essential to begin the task of addressing the safety of these dams.The number of state programs that offer funding assistance to dam owners needs to increase. Anyfederally backed program should be designed to work with existing state programs to encouragethe continuation and maximize the benefits of both funding sources. This type of federal‐state‐private partnership is essential in order to address a problem of this magnitude.It is strongly recommended that the findings within this report should be addressed by individualstates, the U.S. Congress, the Federal Emergency Management Agency (FEMA), the Association ofState Dam Safety Officials (ASDSO), and the dam safety community in the effort to increase theavailability of funding sources.6

INTRODUCTIONBackgroundInfrastructure safety has always been an important issue at local, state, and national levels. A damfailure can be devastating to the dam owner, to the dam’s intended purpose, and especially todownstream populations and property. A single dam failure can affect several states and largepopulations and cause thousands to billions of dollars worth of property and environmentaldamages. No price can be put on the lives that have been lost or could be lost in the future becauseof dam failure.Some of the strongest state dam safety programs in the U.S. have been established as aresponse to devastating dam failures. Pennsylvania enacted dam safety legislation in the1913 after the state experienced two calamitous dam failures that took 2,300 lives. TheCalifornia Division of Safety of Dams was established in 1929 following the St. Francis damfailure, which killed more than 450 people and destroyed bridges, roads, homes, and 24,000acres of farmland. State programs in Hawaii, New Jersey and New Hampshire have seensignificant increases in resources as a follow‐up to catastrophic flood events.Of the approximately 84,000 dams in the National Inventory of Dams, most are owned by privatebusinesses, citizens, state governments, and local governments. Many dam owners are unable toundertake dam repairs and rehabilitation due to lack of funding. This situation often results indangerously neglected and deteriorated dams.7

Some states have established innovative funding programs to assist dam owners, but the coffers ofmost are inadequate to meet the need. Most states cannot afford to fully fund rehabilitation ofpublicly owned dams, much less the far‐more‐common privately owned dams, which are ineligiblefor most funding programs. There is no broad‐based program at the federal level to assist damowners with the funding of needed repairs; the establishment of such a program would helpprevent disastrous dam failures.Origins of the StudyThe National Dam Safety Program Act of 1996 (NDSPA, PL 104‐303) called for the FederalEmergency Management Agency (FEMA) to carry out a program of technical and archival researchto develop (1) improved techniques, historical experiences, and equipment for rapid and effectivedam construction, rehabilitation, and inspection, and (2) devices for the continued monitoring ofthe safety of dams.The NDSPA also established the Interagency Committee on Dam Safety (ICODS). The ICODSSubcommittee on Dam Safety Research (SDSR) determined that funding for the rehabilitation ofdams is an important part an effective dam safety program.In fiscal year 2000, the SDSR recommended and FEMA provided funding for a task committee toresearch and develop options the federal government could consider in establishing funding8

programs for dam rehabilitation projects. FEMA and the SDSR called on the Association of StateDam Safety Officials (ASDSO) to establish this committee. Its nine members were charged with:1)researching and estimating the total dam rehabilitation costs for the United States;2)collecting information on existing funding programs;3)developing recommendations for the establishment of federal dam restoration grant and/orloan programs; and4)drafting model state legislation, rules, and guidelines for state dam restoration grant and/orloan programs.It is was hoped that the findings of the committee would be utilized by Congress, individual states,FEMA, ASDSO, and the dam safety community in an effort to increase the availability of fundingsources.The committee began its work in October 2000 and completed its initial report—entitled The Costof Rehabilitating Our Nation’s Dams: A Methodology, Estimate and Proposed Funding Mechanisms—in December 2002. A revised version of this report was published in October 2003.2000 2002 Rehabilitation Costs StudyThe committee’s intensive two‐year, peer‐reviewed study considered the number of state‐regulated dams, the size of the dams, the costs of deferred maintenance (any maintenanceactivity that does not require formal engineered plans or the approval of a professionalengineer), the cost of engineering evaluation and design, the cost of rehabilitation (whetherrepair, replacement or removal), and the cost of increasing storage capacity or structuralupgrades. Estimates did not include costs for administration of a funding mechanism; nor didthey take into account the increasing number of high‐hazard‐potential dams, those whosefailure would cause loss of human life.The committee concluded that:The cost of upgrading or repairing all non‐federal dams in the U.S. would exceed 36 billion.Almost one‐third of this amount— 10.1 billion—would be needed for the nation’s most criticaldams, the more than 10,000 non‐federal dams across the nation whose failure would cause loss ofhuman life.It recommended the creation of a national dam rehabilitation loan program. Subsequently, ASDSOworked with lawmakers to draft the Dam Rehabilitation and Repair Act that would providefunding for repairs to high‐hazard‐potential dams. Congress has not yet passed this legislation.9

The 2009 UpdateIn the spring of 2008, ASDSO convened a task force to update the initial rehabilitation costs study.Several members of this group had worked on the original project. The principal objectives of thiseffort were: to review the existing methodologies, eligibility criteria, and associated cost estimatesutilized in the 2003 report; to determine an accurate estimate of the current national cost of dam rehabilitation; and to recommend ideas for addressing the need.Over the next 9 months, the committee completed its review and update, concluding that a soundnational cost estimate to repair the nation’s dams, based on available data, is 51.46 billion. Of thisfigure, approximately 16 billion is needed for repair of high‐hazard potential dams (those damswhose failure would likely cause loss of human life): Just over half of this figure—roughly 8.7billion—is needed to repair publicly‐owned high‐hazard potential dams, with the remaining 7.3billion needed for privately owned dams.These numbers have increased significantly since the 2003 report. The estimated cost ofrehabilitating all dams has risen by 42%, while the cost to rehabilitate high‐hazard potential damsis up by 58%. These numbers will likely continue to rise until a comprehensive state and federalrehabilitation strategy is implemented.The latest data from the National Inventory of Dams (NID), maintained by the US Army Corps ofEngineers, underscores the urgent need for immediate investment in the nation’s dams: Asevidence of the increasing need, data submitted to the NID by state and federal regulators showsthat the number of deficient dams in the nation has increased by 36% in the last five years.10

NATIONAL COST OF DAM REHABILITATIONEligibilityIncluded in this study are all non‐federally owned dams listed in the National Inventory of Dams(NID) 1. The NID includes 83,690 dams, all of which:Are at least 25 feet in height, ORStore at least 50 acre‐feet of water, ORPose high or significant risks to life or property.Excluded from this study were the 3,075 federally owned dams listed in the NID. The remainder ofdams listed in the NID were determined eligible for proposed funding under the study.Methodology & EstimateThe overall estimate of dam rehabilitation costs is based on a methodology that incorporates thesize of the dam (height), the costs of deferred maintenance, engineering evaluation and design,rehabilitation, and capacity and structural upgrade. In order to facilitate the development of anational estimate, the following baseline assumptions were made: First: that the working definition of a rehabilitation scope would include repair,replacement, and removal; Second: that dam height would be the primary criteria in categorizing the NationalInventory of Dams (NID) into more manageable groups; and Third: that any estimate would exclude federally owned dams.The baseline uses the results of specific logic diagrams for each size group that focuses onpercentages of dams that require some level of remedial measures. These potential measureswould be taken in order and include the following: Deferred maintenance Detailed engineering assessment1The National Inventory of Dams is a database program administered by the US Army Corps of Engineers that houses information on damsregulated either by the federal government or state governments.11

Hazard potential reclassification Physical improvements.Dam height was selected as a primary criterion because it was determined to be the single mosteffective indicator of overall size and cost of repair. The NID was divided into four heightcategories: dams less than or equal to 15 feet, over 15 and less than or equal to 25 feet, over 25and less than or equal to 50 feet, and over 50 feet.The next task was the development of specific logic diagrams for each size group that would focuson percentages of dams that require some level of remedial measures. These potential measureswould be taken in order and include: Deferred maintenance, Detailed engineering assessment, Hazard potential reclassification, and Physical improvements.The first step of this methodology exercise was to divide all dams within each category by the needfor correcting deferred maintenance deficiencies. Typically, this would include tree cutting, slopeclearing, patching concrete, gate repair, etc. Generally, only a contractor or heavy equipmentwould be necessary for this work. Conversely, other dams would be considered well maintained.12

Estimates were made for the two groups: percentage of dams that require maintenance and thepercentage which do not. Deferred maintenance costs were assigned to those dams that dorequire maintenance.The second step was to estimate for each of the two groups—1) maintenanceor2) no maintenance—the percentage of dams that require an engineering assessment.For dams requiring an engineering assessment, theestimated cost of such an assessment was assigned.For dams with no deferred maintenance and no needfor an engineering assessment, no further breakdownwas necessary and a 0 cost was assigned.For dams that require maintenance but do not requirean engineering assessment, no further breakdownwas necessary and the cost of deferred maintenancewas assigned as the final cost for the dams.For dams in both maintenance categories that dorequire engineering assessments, the percentageswere broken down into dams that would and wouldnot require a change in hazard classification as aresult of the assessment findings.An engineering assessment wouldinclude hydraulic/hydrologic, damfailure, stability and geotechnicalanalyses, and the development ofalternatives, cost estimates andany necessary instrumentationinstallationDeferred maintenance is defined asany maintenance activity that doesnot require formal engineeredplans or the approval of aprofessional engineerThe next breakdown was an estimate of thepercentages of dams that either require a change inhazard classification or do not. Each group (hazardclassification change or no change) was then brokendown into dams that require remedial action or not.For each category, an estimated cost of the remedial action was assigned.This completed the placement of dams into various treatment scenarios and the estimate of damsthat require remedial action. To complete the chart, the percentages were multiplied across thetable to compute the total estimated percentage of dams in each treatment scenario. The cost ofeach dam grouping was figured by multiplying the total number of dams in the treatment scenarioby the estimated cost of rehabilitation for that particular scenario. Average rehabilitation costfigures were determined based on collective experience of the committee and actual projecthistories. The total cost for rehabilitation of all dams in each height category was attained by13

adding all the costs in the total cost column. Copies of the complete logic diagrams are containedin Attachment 1.In 2003, a review and update of the existing methodology resulted in the following revisions: 25% cost escalation factor to deferred maintenance and remedial actions to dams withoutmaintenance 25% cost escalation factor plus a one‐time 15% premium for rehabilitation of dams withdeferred maintenance Adjusted Phase 2 engineering costs by 67% Cost of remedial action will include design, construction, permitting, EAP, constructionmanagement and any land acquisition costs All federally‐owned dams were excluded from cost numbers All non‐federal dams were included (states with existing funding programs were includedin final totals) Assignment of NID condition assessments to algorithm outputs (satisfactory, fair, poor,unsatisfactory)ResultsUsing this formula, it was estimated that it would cost approximately 51.46 billion to rehabilitateall non‐federally owned dams in the U.S. identified as needing rehabilitation in 2009. Additionalfunding would be required for state and federal administrative costs.14

SummarySize‐Based CategoryPercent of Dams inNeed of RehabCost Estimate PerRehabProjectTotal CostCategory #1 15’42% 7,635 276,098/project 2.273 BillionCategory #2 16’ 25’44.2% 11,900 649,821/project 8.13 BillionCategory #3 26’ 50’43% 13,005 1,685,834/project 22.569 BillionCategory #4 greaterthan 50’38% 2,068 8,851,025/project 18.484 BillionTotal cost for all projects 51.456 BillionSee Attachment 1 for details on cost calculations.The task force also calculated the residual economic benefits of creating a federal damrehabilitation program. Such a program would not only address an urgent public safety need butalso positively impact the national economy through job creation: Using cost documentation forprevious projects, job generation data from National Economic Development account summaries,IMPLAN software, and historical data, the task force calculates that an investment of 12 billionwould multiply into a 16 billion dollar benefit to local economies across the nation and create aminimum of 100,000 direct project contact first line jobs. While difficult to estimate precisely, it isknown from experience that a significant number of secondary and tertiary support sector jobs arecreated in the areas where these projects take place.15

IMPROVING ASSISTANCE AT THE STATE LEVELBackgroundFor state regulated dams, financing of dam repairs has traditionally been the responsibility of theowners. Where the owner derives financial benefit from the dam or where the dam is owned by apublic entity with taxing authority, a means to pay for dam repairs is available. However, morethan half of the state‐regulated dams on the NID are owned by private entities, many of whom donot derive direct economic benefit from the dam and therefore do not have a direct means offinancing repairs. Additionally, as dams age they often require more costly repairs, or majorrehabilitation to meet modern design criteria and current dam safety requirements. The cost ofthese measures is often beyond the means of many dam owners, regardless of whether they deriveeconomic benefit from the dam.As part of this project, the original committee was charged with developing a model stateassistance program. This model, developed in 2001, is intended to provide a starting point for anystate desiring to develop a program that could provide assistance to dam owners for rehabilitationor major maintenance of their dams.The committee recommends that the assistance program model should be set up as a low interest,revolving loan program. This would be the most effective program for establishing a long‐term,stable funding source for dam rehabilitation. This model could also be applied as a start

place the total cost estimated for non-federal dams at 60.70 billion, up from the last estimate of 53.69 billion. Non-federal, high-hazard potential dams are estimated at 18.71 billion, up from 18.18 billion. In the 2012 update, the cost of federally owned dams was also considered. In the current update,