80                                       LAWS OF MARYLAND                                Ch. 55

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 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 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 to make up the
original Federal deficiency.] THE BOARD OF PUBLIC WORKS IS
AUTHORIZED, IN ITS DISCRETION AND UPON RECOMMENDATION
OF THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE, TO
APPROVE A STATE GRANT NOT TO EXCEED 87-1/2 PER CENT OF
THE ELIGIBLE COST OF A PROJECT OR PART OF A PROJECT, IF THE
BOARD FINDS (A) THAT THE IMMEDIATE INITIATION OR
CONTINUATION OF SUCH PROJECT IS CRITICAL TO THE PUBLIC
HEALTH OR COMPLIANCE WITH WATER QUALITY STANDARDS OF
THE STATE, AND (B) THAT A TIMELY AND SUFFICIENT FEDERAL
GRANT IS NOT AVAILABLE FOR SUCH PROJECT OR PART OF A
PROJECT.

[4. When the petitioner has received a grant offer under the Federal Water
Pollution Control Act for the construction of facilities 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 advanced waste
treatment and water purification methods; or to provide 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 available under this Act shall be allocated as an outright grant to the
petitioner in an amount equal to one-half (1/2) of the difference between the
eligible cost and the amount of the Federal grant offer.)

SECTION [[12]] 11. AND BE IT FURTHER ENACTED, That Section 5(b)
of Chapter 699 of the Laws of Maryland (1967) be and it is hereby repealed and
re-enacted, with amendments, to read as follows:

5.

(b) Any county, municipality, or any agency which is entitled to receive a State
grant pursuant to the provisions of Section 387(A) 2 of Article 43 of the
Annotated Code of Maryland as amended from time to time, (that 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 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 to seventy-five percentum (75%) of the
eligible cost of the project minus the maximum Federal grant for which the project
would be eligible if sufficient Federal funds were available, 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 conformity with a comprehensive plan for a standard
metropolitan statistical area, such increase shall not be used to decrease the
amount of the outright State grant.] EXCEPT AS PROVIDED IN
PARAGRAPH (2) BELOW, A STATE GRANT OFFER SHALL BE MADE
ONLY FOR A PROJECT OR PART OF A PROJECT ON WHICH A