MARVIN MANDEL, Governor                                 1993

purposes of determining the amount of the State grant to
be made hereunder, the cost of any one project, facility
or system shall be reduced by the amount of any Federal
grant or loan for that project, facility or system.

(3) To be eligible for a grant, the project,
facility or system must meet all the requirements of
State, local and Federal laws or regulations.

(4) Grants may be made only to the Maryland
Environmental Service for projects, facilities and
systems to be owned by the Maryland Environmental
Service.

(5) Revenues which are generated from the
distribution of resources or energy recovered or produced
by a project, facility or system for which a grant has
been made shall be paid and applied as follows:

a.     First, to reduce the annual

operating costs of that project, facility or system to
zero.

b.     Any revenues remaining thereafter

(hereinafter called "Net Revenues") shall be paid and
applied to reduce the annual debt service requirements of
the State applicable to the grant made under this Act for
that, project, facility or system and to reduce the annual
debt service requirements of the Maryland Environmental
Service for any indebtedness it incurs to finance the
remaining costs of the project, facility or system. Net
Revenues shall be paid and applied hereunder in the ratio
that the grant and the indebtedness bear to each other.

c.     Finally, after payment and

application as provided in subparagraph (b) above, any
remaining Net Revenue shall, on an equitable basis, be
paid to or applied for" the party or parties for whom the
project, facility or system is being provided.

(c)    The Maryland Environmental Service shall
commence the first phase of the Statewide Resource and
Energy Program provided for hereunder by undertaking a
survey, investigations, research, study, planning, design
and construction of these projects, facilities and
systems in urban areas of the State.

(d)    The Director of the Maryland Environmental
Service shall report,, on or before October 1, 1975 and
each October 1 thereafter, to the Governor and the
General Assembly on the status of the first phase of the
Statewide Program provided for hereunder. The report
shall indicate the funds expended, funds committed, and
funds remaining, and a list of projects for which funds