Dam Safety Act of 1981

Dam Safety Act of 1981 - Amends the Act providing for a national dam inspection program to repeal the provision limiting the coverage of such Act to dams of a specified size. Exempts dams located in States with an approved dam safety program from the Secretary of the Army's national inspection program.

Authorizes the Secretary to enter and inspect a damsite at reasonable times.

Authorizes appropriations to carry out such Act through fiscal year 1985. Sets forth the formula for distributing such funds among the States.

Directs the Secretary: (1) to provide assistance to States maintaining approved dam safety programs; and (2) to review periodically the implementation and effectiveness of such programs. Specifies the standards such programs must meet.

Directs the Secretary to provide guarantees to insurers in order to enable dam owners, in States with approved dam safety programs, to obtain liability insurance at reasonable rates. Requires the Secretary, with the Secretary of the Treasury, to report to Congress any recommendations for a more comprehensive dam safety insurance program.

Authorizes appropriations for a revolving fund to be used for loans to dam owners making dam repairs or other safety improvements.

Establishes a Federal Dam Safety Review Board to be responsible for reviewing dam safety procedures and monitoring State implementation of this Act.

Directs the Secretary: (1) to provide training for State dam safety inspectors; and (2) to develop, with the National Bureau of Standards, improved dam inspection techniques.

Requires that dam construction proposals submitted to specified Congressional committees contain information concerning dam failures and preventive measures that may be taken.