76                                        LAWS OF MARYLAND                                Ch. 55

(a)   Not more than Ten Million Dollars ($10,000,000) of the proceeds of such
loan may be expended to provide State grants to assist in the construction,
extension, and improvement of existing public sanitary sewer systems and where
necessary, in the judgment of the Board of Public Works, for the construction of
temporary sewage treatment plants and related facilities to abate or prevent health
hazards arising out of the failure or inadequacy of [[existing]] individual sewerage
systems existing as of the effective date of this Act, subject to the following
conditions and limitations:

(1)   The project must be for an approved sewerage service area in the county
water and sewerage plan adopted by the County governing body and approved by
the State Department of Health and Mental Hygiene pursuant to the provisions of
Section 387C of Article 43 of the Annotated Code of Maryland, as amended from
time to time.

(2)   The sewerage system must meet all requirements and regulations of the
State and have the final approval of the State Department of Health and Mental
Hygiene pursuant to Section 390 of Article 43 of the Annotated Code of
Maryland, as amended from time to time.

(3)   Either (A) the project is ineligible for a Federal grant or (B) a timely and
sufficient Federal grant is not available for such project. EVEN THOUGH A
PROJECT MAY BE INELIGIBLE FOR A FEDERAL, GRANT, IT MUST
NOT BE IN VIOLATION OF ANY APPLICABLE FEDERAL
REQUIREMENTS.

(4)    The Secretary of Health and Mental Hygiene shall prescribe rules and
regulations for the determination of the amount of the State grant for each project
qualifying under this Section.

(5)     Not more than $2,500,000 shall be granted for projects in any one
political subdivision.

[[(6) The Secretary of the Department of Health and Mental Hygiene shall
report on or before January 1 of each year to the Governor and General Assembly
on the status of Bond Funds for the construction of sewerage facilities under this
and previous Bond Authorization Acts. His report shall indicate funds expended,
funds committee, and funds remaining: and a list of projects for which funds have
been expended and are committed. It shall also contain his projection of projects
to be constructed for the following two years for which grants are anticipated.]]

(6) TO BE ELIGIBLE FOR A GRANT, EACH COUNTY SHALL SUBMIT
AN ANNUAL INVENTORY, AS PART OF THE COUNTY WATER AND
SEWERAGE PLAN PURSUANT TO SECTION 387C OF ARTICLE 43 OF
THE ANNOTATED CODE OF MARYLAND OF SPECIFIC LOCATIONS
WHERE FAILING OR INADEQUATE INDIVIDUAL SEWERAGE.
SYSTEMS OCCUR, AND PROPOSED SOLUTIONS.

(b)    The balance of the proceeds shall be used exclusively to provide State
grants to assist in the construction of sewage treatment plants and related facilities
in Maryland _,_ and to finance studies relating to water quality problems in
Maryland approved or conducted by the Department of Natural Resources;
provided however, that the Washington Suburban Sanitary Commission's portion
of the capital costs for improvements to and enlargement of sanitary sewage
facilities and systems operated by the District of Columbia pursuant to agreements
between the Commission, the District of Columbia, and the United States
Government shall be deemed a project eligible for a State grant hereunder. All
grants authorized or made hereunder other than for water quality studies shall be
subject to the following conditions and limitations: