Marvin Mandel, Governor                         615

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 eligible cost in advance of a grant offer from the
Federal Water Pollution Control Agency provided that the petitioner
files an application for a Federal grant and meets all other condi-
ditions and requirements to be eligible for a Federal grant and
further provided that the petitioner 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 avail-
able 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, or, recognizing that pursuant to statutory authority and
through agreements with the District of Columbia and the Federal
Government the Washington Suburban Sanitary District's sanitary
sewerage systems include allocated capacities or reserved portions of
the sanitary sewerage facilities and systems operated by the District
of Columbia, any improvement to or enlargement of those facilities
for the Maryland district's sewerage is for the use and benefit of
the residents of the Washington Suburban Sanitary District and of
the State and advances the broad goals and purposes of this Act,
and on such basis the Washington Suburban Sanitary Commission's
portion of the capital costs for the improvements to or enlargement
of those facilities to be made hereafter is equivalent to construction
by the Washington Suburban Sanitary Commission of a project
within the purview of this section, and that portion shall be treated
as construction by the Commission with respect to eligibility for a
grant hereunder, all within the following conditions and limitations:

1.  That a State grant offer shall be made only for the construc-
tion of projects that meet [the] all applicable 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
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. In the case of a project to dredge Back River for the
purpose of making possible the transportation of waste solids to a
suitable disposal area and recognizing that such a project is im-
portant to pollution control, but would not be eligible for a grant
under the Federal Water Pollution Control Act, the State grant
shall be equal to seventy-five percent (75%) of the dredging project.