PAL16L8 is good news. That can be replaced with a 16V8 GAL, one of the flavors which are still in production (Atmel ATF16V8) and which pretty much every universal programmer can program. (Including e.g. the TL866 which has been extensively discussed on this forum.)
The sample file BloodyCactus linked to confirms that the chip works as an address decoder. In the example, it produces select signals for RAM, ROM, sound, and other I/O. As BloodyCactus pointed out, the details may be different in your device. E.g. the address space used for the various devices may be assigned differently. But it should be possible to figure that out, either from the documentation or from measuring the old chip. (If the correct program file can't be found on the net.)
How much damage has your original PAL chip incurred? Do you think it is still functional, so you could check its logic behavior?
EDIT: Does your original PAL have a blue dot, by any chance? That would help to nswer the version question BloodyCactus pointed out!