(a) Establishment.--The department, in consultation with the Department of Environmental Protection, is authorized to establish a revolving loan program for private dam owners enrolled in the program to provide assistance.

(b) Loan criteria.--The department, in consultation with the Department of Environmental Protection, shall establish criteria to award loans under the revolving loan program. Participation in the program shall be considered collateral for any loans awarded under this section.

(c) Loan amounts.--A loan amount under the program may not exceed 50% of the eligible costs and may not exceed $500,000.

(d) Loan application.--Owners seeking program loans must submit a complete loan application to the department. The loan application form shall be provided by the department. The loan application form shall be developed in consultation with the Department of Environmental Protection and shall include all of the following:

(e) Repayment.--Loans shall have a repayment period of up to 10 years.

(f) Interest.--Loan interest rates shall be fixed at an interest rate in effect at the time the loan is made and shall be equal to the Five-Year United States Treasury Note on the date the loan is awarded.

(g) Fee.--The department may charge a loan origination fee not to exceed 2.5% of the approved loan amount.

(h) Penalties.--The department, in consultation with the Department of Environmental Protection, shall establish penalties for loan recipients who fail to meet their repayment obligations under the loan terms.