establishing a procedure for the department of environmental services to transfer ownership of dams to municipalities or others, including making loans.

This bill establishes a formal process for the Department of Environmental Services to transfer ownership of state-owned dams to local towns or groups of landowners before the dams are removed. Under the new rules, the department must offer the dams to affected municipalities first, providing them with detailed information about the dam's condition and estimated repair costs, and only proceed with removal if no one accepts the transfer within a set timeframe. To support these transfers and future maintenance, the legislation creates a loan program funded by a state dam maintenance fund, offering 20-year loans at a 5 percent interest rate to towns or associations that take ownership. The bill also mandates that any loans taken must be repaid using local budget appropriations or property taxes from areas bordering the impoundment, with a cap of 50 percent of those taxes. Additionally, the process includes an exemption for dams deemed to be in imminent danger of failure, allowing the state to remove them immediately without offering a transfer.