HARRY HUGHES, Governor

3787

(2) The remainder of the proceeds of such loan shall be
credited on the books of the State Comptroller, to be expended as
needed by the State, upon approval by the Board of Public Works,
and subject to such conditions as it may set, for the following
needs, purposes and projects, the amounts listed below being
intended to include Architects' and Engineers' fees where
applicable:

(b) The balance of the proceeds shall be used
exclusively to provide State grants to assist in the construction
of sewage treatment plants and related facilities in Maryland,
and to finance studies relating to water quality problems in
Maryland approved or conducted by the Department of Natural
Resources; provided however, that the Washington Suburban
Sanitary Commission's portion of the capital costs for
improvements to an enlargement of sanitary sewage facilities and
systems operated by the District of Columbia pursuant to
agreements between the Commission, the District of Columbia, and
the United States Government shall be deemed a project eligible
for a State grant hereunder. All grants authorized or made
hereunder other than for water quality studies shall be subject
to the following conditions and limitations:

(1)  Except as provided in subsection (a) above,
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 SHALL NOT EXCEED 87 1/2 PERCENT OF TOTAL ELIGIBLE PROJECT
COSTS. AFTER OCTOBER 1, 1984 shall be in an amount up to
[one-half] 72.22 PERCENT of the eligible cost remaining after the
maximum Federal grant has been applied[, except that when] OR UP
TO 32.5 PERCENT OF THE TOTAL ELIGIBLE PROJECT COSTS. WHEN the
maximum Federal grant offer for an innovative or alternative
project as defined by the Federal Environmental Protection Agency
is greater than [75] 55 percent, the State grant offer shall be
[three-quarters] UP TO 85 PERCENT of the eligible cost remaining
or [12 1/2 percent, whichever is the lesser] UP TO 21.25 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 may equal the total cost of the project.

(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