HARRY HUGHES, Governor

1143

State grant offer shall be in an amount up to one-half of
the eligible cost remaining after the maximum Federal grant
has been applied, EXCEPT THAT WHEN THE MAXIMUM FEDERAL GRANT
IS 85 PERCENT OR MORE, THE STATE GRANT OFFER SHALL BE IN AN
AMOUNT UP TO OFFER FOR AN INNOVATIVE OR ALTERNATIVE PROJECT
AS DEFINED BY THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY IS
GREATER THAN 75 PERCENT THE STATE GRANT OFFER SHALL BE
THREE-QUARTERS OF THE ELIGIBLE COST REMAINING. OR 12 1/2
PERCENT, WHICHEVER IS LEAST. 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 cost of a project or
part of a project, if the Board finds (a) that the immediate
initiation or continuation of the project is critical to the
public health or to compliance with water quality standards
of the State, and (b) that a timely and sufficient Federal
grant is not available for the project or part of a project.
In approving such grants, the Board of Public Works shall
make all reasonable efforts not to jeopardize Federal grants
for the remaining part of the projects.

(4)  The Secretary of the Department of Health
and Mental Hygiene shall report on or before January 1 of
each year to the Governor and the 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 committed,
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.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.

Approved May 14, 1979.

CHAPTER 395

(House Bill 1498)

AN ACT concerning

Water Quality Loan of 1975 Projects - State Grants

FOR the purpose of amending the conditions and limitations
on the use of State funds for projects under the Water
Quality Loan of 1975 relating to the construction and