Regulation of dams.

Provides that the laws regulating dams apply only to a structure that meets two or more of the following conditions: (1) Exceeds 20 feet in height. (2) Has a drainage area above the dam of more than one square mile. (3) Impounds a volume of more than 100 acre-feet of water. Requires the department of natural resources (department) to establish a classification system for dams based on: (1) the height of the structure and the volume of water impounded by the structure; and (2) the force of the water and the likely consequences resulting from the uncontrolled release of its contents due to a failure or misoperation of the structure. Changes the classification categories for dams from high hazard, significant hazard, and low hazard to high capacity, significant capacity, and low capacity. Changes the standard to determine potential consequences for a failure from "may cause" to "likely to cause". Requires the department to have jurisdiction over a dam to raise the dam's classification to high capacity upon receiving a request from a downstream owner. Provides that changes to the law do not affect past inspections.