688                             LAWS OF MARYLAND                       CH. 445

million dollars ($100,000,000), less a proportionate share of the costs
specified in Section 4 of this Act, shall be used exclusively to provide
State grants and prepay Federal grant offers to assist in the con-
struction of sewage treatment plants and related facilities eligible for
grants under the Federal Water Pollution Control Act. Any
county, municipality, or any agency OF THE STATE OR ANY OF
ITS SUB-DIVISIONS which is entitled to receive a State Grant pur-
suant to the provisions of Section 387(B) (A) 2 of Article 43 of the
Annotated Code of Maryland, as amended from time to time, that
HAS RECEIVED AN ORDER FROM THE STATE BOARD OF
HEALTH AND MENTAL HYGIENE PURSUANT TO SECTION
392 OF ARTICLE 43 TO CONSTRUCT OR IMPROVE SEWERAGE
FACILITIES MAY PETITION THE STATE FOR A GRANT
EQUAL TO 25 PERCENT OF THE ELIGIBLE COST OF THE
PROJECT AS DETERMINED BY THE STATE AND FOR AN
ADDITIONAL SUM EQUAL TO 50 PERCENT OF THE ELIGI-
BLE COST IN ADVANCE OF A GRANT OFFER FROM THE
FEDERAL WATER POLLUTION CONTROL AGENCY PRO-
VIDED THAT THE PETITIONER FILES AN APPLICATION
FOR A FEDERAL GRANT AND MEETS ALL OTHER CONDI-
TIONS AND REQUIREMENTS TO BE ELIGIBLE FOR A FED-
ERAL GRANT AND FURTHER PROVIDED THAT THE PETI-
TIONER SHALL CONTRACT TO REPAY TO THE STATE FOR
DEPOSIT TO THE WATER QUALITY LOAN ACCOUNT ALL
SUBSEQUENT FEDERAL FUNDS WHICH THE PETITIONER
MAY RECEIVE AS A RESULT OF THE GRANT APPLICATION
TO THE FEDERAL WATER POLLUTION CONTROL ADMINIS-
TRATION, OR has received a grant offer for a project in accordance
with the provisions of the Federal Water Pollution Control Act or has
been notified that the project is eligible for a Federal grant offer in a
specified amount, but insufficient Federal Funds are available to make
an offer in the amount for which the project has been found eligible,
may petition the State Department of Health for a grant, within the
following conditions and limitations:

1.    That a State grant offer shall be made only for the construction
of projects that meet the specifications required by the Federal
Water Pollution Control Act and all applicable State legislation and
regulations, as amended from time to time.

2.    That a State grant offer shall be made for every project on
which a Federal grant offer is made, or which has been found eligible
for a Federal grant, and that the outright State grant shall be
equal, when combined with the maximum Federal grant for which
the project would be eligible if sufficient Federal funds were avail-
able, to seventy-five percent (75%) of the eligible cost of the project,
except that when the size of the Federal grant is increased by the
Secretary of the Interior, as the result of the project being in con-
formity with an approved comprehensive plan, such increase shall
not be used to decrease the amount of the outright State grant. In
the case of a project to be operated by a State owned institution of OR
facility for which a federal grant offer has been made, the State
grant offer shall equal the total cost of the project less the Federal
grant offer.

3.    When for lack of adequate Federal funds at the time the
petition is filed, the amount of Federal Funds available for a grant
is a lesser per centum of the eligible cost of the project than that