Private Dam Financial Assurance Program (PDFAP)

The Private Dam Financial Assurance Program (PDFAP) is a funding initiative jointly administered by the Pennsylvania Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP). Established under the Private Dam Financial Assurance Program Act (PDFAP Act), the program was created to help owners of regulated private dams meet financial responsibility requirements outlined in Section 11 of the Dam Safety and Encroachments Act. This requirement is aimed at ensuring dam owners have adequate financial means to address potential safety and structural issues related to their dams. The primary objective of the program is to provide financial assurance assistance in the form of low-interest loans. These loans become available once the dedicated fund has reached a threshold of $1,500,000. Loan funding is designated for specific purposes including maintenance, repair, rehabilitation, permanent breach, demolition, excavation, reclamation, and associated engineering costs—although engineering expenses are limited to 10% of the total project cost. Ineligible uses include lobbying, fines from regulatory actions, and costs incurred before the loan is approved. To qualify, applicants must be enrolled in the PDFAP and in good standing. Eligible owners include individuals, partnerships, associations, corporations, community associations, and common interest communities that own, control, operate, or manage a regulated private dam. Additionally, applicants must comply with the Dam Safety and Encroachments Act regulations, such as maintaining current inspection reports, paying registration fees, and adhering to an approved Emergency Action Plan. Continued participation in the program also requires the payment of an annual fee; failure to pay this fee constitutes a default on any issued loan. Loans may not exceed $500,000 or 50% of the total eligible project cost—whichever is lower—and must be repaid within 10 years. The interest rate is pegged to the five-year U.S. Treasury Note at the time of application. A minimum 50% match is required from the applicant. All records related to the project must be retained and made accessible to DCED for review and verification. Before final closeout, applicants must submit certified proof of eligible expenditures, such as canceled checks or bank statements. The application process requires submission through the Electronic Single Application for Assistance platform. Applicants must also pay a $100 non-refundable application fee electronically. In addition to the online form, applicants must upload supplemental documentation including a project description, cost estimate, funding commitments, DEP-approved scope of work, project maps, financial statements, and notifications to local governments. Once submitted electronically, applicants must also print and mail two hard copies of the full application packet to the DCED’s Business Financing office in Harrisburg, PA. For inquiries, applicants can contact the DCED’s Center for Business Financing via phone at (717) 787-6245, fax at (717) 772-3581, or email at ra-dcedsitedvpt@pa.gov. Application guidelines are available at www.dced.pa.gov. As of now, there is no specified application deadline or indication that the program operates on a recurring or rolling basis.