2652                                      LAWS OF MARYLAND                                    Ch. 306

or made hereunder shall be subject to the following
conditions and limitations:

(1) [A] State [grant offer] FINANCIAL ASSISTANCE
shall be made only TO STATE AND LOCAL GOVERNMENTAL ENTITIES
for [the construction of] projects that meet the
[specifications required by the Federal Water Pollution
Control Act and] REQUIREMENTS OF all applicable State AND
FEDERAL legislation and regulations, as amended from time to
time. THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE, WITH THE
APPROVAL OF THE BOARD OF PUBLIC WORKS, SHALL ESTABLISH
APPLICATION PROCEDURES AND CRITERIA FOR THE USE OF STATE
GRANTS, LOANS, AND LOAN GUARANTEES UNDER THIS SUBSECTION.
THE CRITERIA SHALL INCLUDE, BUT NOT BE LIMITED TO, THE WATER
QUALITY OR PUBLIC HEALTH IMPACTS CAUSED BY EXISTING
CIRCUMSTANCES, PREVIOUS EFFORTS EXPENDED TO CORRECT THE
EXISTING PROBLEM, FINANCIAL CAPACITY OF THE APPLICANT, THE
PROBLEM PREVENTION ASPECTS OF A PROPOSED PROJECT, COST
EFFECTIVENESS OF A PROPOSED PROJECT, AND PLANNING
REQUIREMENTS.

(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] IF a federal grant offer is made FOR
A SEWAGE TREATMENT PLANT AND RELATED FACILITY PROJECT, [and]
the 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 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] FINANCIAL ASSISTANCE 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, LOAN,
OR LOAN GUARANTEE not to exceed 87-1/2 percent of the
eligible cost of a project or part of a project, if the
Board finds [(a)] (A)(I) THAT THE PROJECT IS OF A REGIONAL
NATURE OR (II) 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,] FINANCIAL ASSISTANCE, the Board of
Public Works shall make all reasonable efforts not to
jeopardize Federal grants, for the remaining part of the
projects.