In this section, “dam safety permit” means a permit issued under § 5–503 of this title for the construction, reconstruction, repair, removal, or modification of a dam. This section does not apply to a reservoir, dam, waterway obstruction, or small pond that is exempt from permit requirements under § 5–503(b) of this title. The application for a dam safety permit shall include the estimated project construction cost. Prior to the issuance of a dam safety permit, the Department shall collect a dam safety permit fee. The dam safety permit fee: Shall be based on the estimated project construction cost; and May not exceed 3% of the estimated project construction cost. Fees collected under this section shall be paid into the Private Dam Repair Fund established under § 5–509.2 of this title.