(a) Establishment of fund.--The Private Dam Financial Assurance Fund is established as a special fund in the State Treasury. The fund shall consist of all payments and fees collected by the department under this article and all money earned from the investment and reinvestment of money in the fund by the State Treasurer. The fund shall be the sole source of money for any and all payments due under or required by this article. The Commonwealth shall have no liability for any cost or expense under this article beyond the amount deposited in the fund, and the Commonwealth's credit is not pledged to meet any cost or expense payable from the fund. Money in the fund shall be paid out upon warrant of the State Treasurer drawn after requisition by the department or the Department of Environmental Protection. Money deposited into the fund and any interest it accrues are appropriated to the department for use in accordance with this article and to the Department of Environmental Protection for costs associated with the entry, correction, repair, operation, maintenance, inspection, monitoring or removal of a dam as necessary in response to:

(b) Fund balance and loan program.--At any time that the fund has a balance equal to or greater than $1,500,000 and the Department of Environmental Protection has not identified the need for an amount in excess of $1,500,000 to correct the failure of owners to comply with the Dam Safety and Encroachments Act, the department may begin accepting and approving owner loan applications for eligible costs so long as a balance of at least $1,000,000 remains in the fund.

(c) Supplements to fund.--The fund may be supplemented by appropriations from Federal, State or local government or from any private source.