Marvin Mandel, Governor                         581

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 peti-
tion 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 to
which it was found to be entitled under the provisions of the Federal
Water Pollution Control Act, the petition may include a request for
the advance payment of the Federal deficit, 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 peti-
tioner may receive to make up the original Federal deficiency.

4.  When the petitioner has received a grant offer under the
Federal Water Pollution Control Act for the construction of facili-
ties to demonstrate an improved method of controlling the discharge
to any waters of the State of untreated or inadequately treated
sewage or other wastes from sewers which carry stormwater or
both stormwater and sewage or other wastes; to demonstrate ad-
vanced waste treatment and water purification methods; or to pro-
vide for new or improved methods of joint treatment for municipal
and industrial wastes; and for the purpose of reports, plans and
specifications in connection therewith, then the funds made avail-
able under this Act shall be allocated as an outright grant to the
petitioner in an amount equal to one-half (½) of the difference
between the eligible cost and the amount of the federal grant offer.

LOANS FOR SEWER CONSTRUCTION

(c) Of the actual cash proceeds from the sale of Certificates of
Indebtedness to be issued under this Act, the sum of [twenty-five
million dollars ($25,000,000)], Ten Million Dollars ($10,000,000),
less a proportionate share of the costs specified in Section 4 of this
Act, shall be used exclusively to provide loans to assist in the
construction of sewer facilities.

Any county, municipality, or any agency of the State or its sub-
divisions which is charged with providing sewerage facilities may
petition the State Department of Health for a loan to assist in the
construction of such facilities, within the following conditions and
limitations:

1.  The project must be included in the county water and sewer-
age plan as approved by the governing body and the State Health
Department pursuant to the provision of Section 387 (c) of Article
43 of the Annotated Code of Maryland, as amended from time to
time.

2.  The full amount of the State loan for any one project shall
not exceed the cost of the project less the amount of any Federal
grant or loan for that project and the loan for any one project shall
not exceed the amount of two hundred and fifty thousand dollars
($250,000).

3.  The cost of the project eligible for a loan under this subsection
shall include reports, plans, specifications, legal and administrative
costs, equipment, construction, land, easements and rights-of-way.