3782                                             LAWS OF MARYLAND                                         Ch. 796

Federal grant has been applied OR UP TO 32.5 PERCENT OF THE TOTAL
ELIGIBLE PROJECT COSTS. 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 such project is critical to the public health or
compliance with water quality standards of the State, and (b)
that a timely and sufficient Federal grant is not available for
such 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 such
projects.

SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 5(b)
of Chapter 651 of the Acts of the General Assembly of 1965, as
amended by Chapter 286 of the Acts of the General Assembly of
1974, Chapter 262 of the Acts of the General Assembly of 1975,
and by Chapter 395 of the Acts of the General Assembly of 1979,
be and it is hereby repealed and reenacted with amendments to
read as follows:

Chapter 651 of the Acts of 1965

5.

(b) The remainder of the proceeds of said loan shall be
credited on the books of the State Treasury Department to be
expended as needed by the State, upon approval by the Board of
Public Works, to be used exclusively to provide State grants to
assist in the construction of necessary sewage treatment plants
and related facilities; and any county, municipality, or any
agency which is entitled to receive a State grant pursuant to the
provisions of Section 387B(a)2 of Article 43 of the Annotated
Code of Maryland, as amended from time to time, may petition the
State Department of Health and Mental Hygiene for a grant, within
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 be in an amount [up to one-half of the eligible cost
remaining after the maximum Federal grant has been applied] THAT
WHEN COMBINED WITH THE MAXIMUM FEDERAL GRANT, THE COMBINED GRANTS