H2O PA – High Hazard Unsafe Dam Projects

The H2O PA – High Hazard Unsafe Dam Projects program is administered by the Pennsylvania Department of Community and Economic Development (DCED) through the Commonwealth Financing Authority (CFA). This program was established under the H2O PA Act of July 9, 2008, which authorizes financial assistance to the Commonwealth of Pennsylvania, its independent agencies, municipalities, and municipal authorities for projects concerning high hazard unsafe dams. These dams are designated as such by the Pennsylvania Department of Environmental Protection (DEP) based on their potential to cause loss of life or substantial property damage if they fail. The goal of the program is to support critical infrastructure improvements that ensure public safety and promote responsible water resource management. Funding is provided through competitive grants that support the repair, rehabilitation, or removal of all or parts of high hazard unsafe dams. Eligible uses of funds include installation of security measures, acquisition of land or easements necessary for the project, construction engineering and inspection costs, permit fees, bonding and insurance, and limited administrative costs. Administrative costs must be directly related to the project and are capped at 2% of the grant total. Ineligible costs include interest on borrowed funds, costs incurred before grant approval, and lobbying activities. The program strictly requires that work may not begin before approval by the CFA, and only costs incurred within the grant agreement timeframe are eligible for reimbursement. Eligible applicants are limited to entities that own the dam project in question. These include the Commonwealth itself, independent agencies not under the control of the Governor, municipalities such as cities, boroughs, counties, or townships, and municipal authorities created under the Pennsylvania Municipal Authorities Act. The application process requires completion of DCED's online Single Application for Assistance, submission of detailed supplemental materials, and compliance with all relevant permitting and emergency planning requirements under the Dam Safety and Encroachments Act. Projects must have received conceptual approval from DEP and maintain an Emergency Action Plan distributed to local emergency management officials. Applications are evaluated based on a set of criteria that include the hazard level posed by the dam, cost-effectiveness of the proposed solution, potential positive impact on tourism, presence of a DEP-approved Emergency Action Plan, compliance with inspection requirements by a registered professional engineer over the past five years, and the dam’s role in the water supply system. An alternatives analysis is required to demonstrate the rationale behind the chosen project strategy. Project descriptions must detail the scope, start/end dates, benefiting municipalities, and overall safety and resource management impact. Funding awards range from a minimum of $500,000 to a maximum of $20 million per project, and no project located in a first or second class city or county may be funded until $750 million has been disbursed statewide. Multi-year grants may extend up to six years. A 25% match is required from non-state applicants. Applications must include a resolution from the governing body of the applicant formally requesting the grant, financial commitment letters for match sources, and various supporting exhibits, including maps and usage data. The submission deadline is not rolling, and there is no indication of recurring cycles. Application materials are submitted electronically and then followed by two hard copies sent to DCED's Site Development Office. For inquiries, applicants are directed to contact the Site Development Office by phone or email. These stringent guidelines underscore the program’s focus on risk mitigation, transparency, and fiscal responsibility, and reflect its role in Pennsylvania’s broader infrastructure and safety strategy.

Projects with a current Emergency Action Plan and consistent inspection history are prioritized; ensure DEP approvals are in place before applying.