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Because of the uncertainty engendered by such decisions, the issue of liability needs to be clarifiec so that the appropriate parties know they will be held responsible for dam failures. This certainty of out carr would serve two major purposes. First, it would encourage the responsible government agencies or other parties to inspect and correct deficiencies that could lead to dam failures. Second, it would establish an incentive for the parties to obtain insurance quickly t cover damage claims that could result from dam failures The U.S. government assumes liability for federal] owned dams. However, it disclaims liability for nonfederal dams, including those regulated by federal agencies. With respect to the Corps of Engineers inspections of nonfederal dams from 1977 to 1981, the law specifically excluded the federal government and it officers or employees from any liability. 3.2 CONCLUSIONS 3.2.1 Dam Owners In states that lack laws governing liability for dam failures, the legislatures should be encouraged to pass strict liability standards.for the ownership of dams. In essence, the owners of dams, as the parties most directly in control of potentially hazardous conditions, should be primarily responsible for ultimat failures. Any uncertainty as to who would be liable fc a failure would hamper dam safety and appropriate liability coverage. 3.2.2 Engineering and Regulatory Personnel Conversely, state legislatures should consider a form of immunity for engineers who assess the integrity of existing dams and for state regulatory employees. Because of the real or imagined fear of potential liability, many qualified engineers and engineering firms are reluctant or refuse to become involved in assessing dam safety. Engineers must be able to provid their best professional opinion without fear of legal liability for any consequences. Similarly, the employees of state regulatory agencies should be free t -17-