Ch. 55                            MARVIN MANDEL, Governor                                 81

FEDERAL GRANT OFFER IS MADE, AND THE STATE GRANT OFFER
SHALL AMOUNT TO ONE-HALF OF THE ELIGIBLE COST REMAINING
AFTER THE MAXIMUM FEDERAL GRANT HAS BEEN APPLIED. IN
THE CASE OF A PROJECT TO BE OPERATED BY A STATE OWNED
INSTITUTION OR FACILITY, THE STATE GRANT OFFER MAY EQUAL
THE TOTAL COST OF THE PROJECT.

2. [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 the deposit to the Sanitary Sewerage
Facilities 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 WATER QUALITY STANDARDS OF THE
STATE, AND (B) THAT A TIMELY AND SUFFICIENT FEDERAL GRANT
IS NOT AVAILABLE FOR SUCH PROJECT.

[3. When the petitioner has received a grant offer under the Federal Water
Pollution Control Act for a demonstration project equal to seventy-five per centum
(75%) of the cost of the said project, then the funds made available under this Act
shall be allocated as an outright State grant to the petitioner in am amount no
greater than twelve and one-half per centum (12-1/2%) of the eligible cost.]

SECTION [[13]] 12. AND BE IT FURTHER ENACTED, That Section 5(b)
of Chapter 561 of the Laws of Maryland (1966), as amended by Chapter 689 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the Laws of Maryland (1967), be and it is hereby repealed and re-enacted, with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, may petition the
State Department of Health for a grant, within the following conditions and
limitations:

1.    That a preliminary application, in such form as the State Department of
Health shall specify, must be received by the State Department of Health for each
project no later than January 1 OF EACH YEAR, for projects to be financed
during the fiscal year starting THE FOLLOWING July 1 [,1967].

2.   That the final petition and such supporting documents as may be required by
the State Department of Health are received by the State Department of Health
no later than May 1 OF EACH YEAR, [1967] for all projects to be financed in
the fiscal year starting the following July 1.

3.   [That such Federal funds as are available from the Federal Water Pollution
Control Act for financing such construction projects shall be used to the maximum
extent possible. The State funds authorized by this Act will be used to provide 50
percent of the cost of each construction project, to the extent that Federal funds
from the Federal Water Pollution Control Act do not provide that percentage of