MARVIN MANDEL, Governor

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not be in violation of any applicable Federal
requirements; and

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

(5) To be eligible for a grant under this
subsection 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.

(c) The remainder of the proceeds of such loan
shall be credited on the books of the State Comptroller,
to be used as needed by the State, upon approval by the
Board of Public Works, exclusively to provide State
grants to assist in the construction and equipping of
sewage treatment plants and related facilities[[,]] and
in the extension and improvements of existing public
sanitary sewer systems. However, the portion of capital
costs for construction of improvements to and enlargement
of sanitary sewage facilities outside the State of
Maryland required to serve the State of Maryland, its
political subdivisions or agencies thereof shall be
deemed eligible for State grants and loans hereunder,
provided there is a written agreement between the agency
constructing the sewerage facilities and the agency
receiving sewerage service. All grants and loans
authorized or made hereunder shall be subject to the
following conditions and limitations:

(1)   A State grant offer shall be made only for
the construction of projects that meet the specifications
required by the Federal Water Pollution Control Act and
all applicable State legislation and regulations, as

amended from time to time.

(2)   Except as provided in paragraph (3) below,
a State grant offer shall be made only for a project or
part of a project on which a Federal grant offer is made,
and the State grant offer shall amount to up 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 shall equal the total cost of the
project less the amount of any Federal grant offer made
therefor.

(3)   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 percent of the eligible