WILLIAM DONALD SCHAEFER, Governor                     Ch. 40

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That chapter(s) of the Acts of the General Assembly
read(s) as follows:

Chapter 286 of the Acts of 1974, as amended

by Chapter 262 of the Acts of 1975, Chapter 394

of the Acts of 1979 and Chapter 777

of the Acts of 1980

SECTION 5. AND BE IT FURTHER ENACTED, That the actual cash
proceeds of the sale of the bonds to be issued under this Act
shall be paid to the Treasurer of the State upon the warrant of
the Comptroller and such proceeds shall be used exclusively for
the following purposes, to wit:

(b) 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 of the Board of Public Works,
exclusively to provide State grants, loans, or loan guarantees to
assist in the acquisition, construction, equipping,
rehabilitation, and improvement of sewage treatment plants and
related facilities, solid waste processing and disposal
facilities, water supply facilities, and projects for the control
of agriculturally related nonpoint sources of pollution in
Maryland; however, the Washington Suburban Sanitary Commission's
portion of the capital costs for improvements to and 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. Loans for sewer facilities shall be extended only as
provided in subsection (c) of this section. All grants, loans, or
loan guarantees authorized or made hereunder shall be subject to
the following conditions and limitations:

(1)  State financial assistance shall be made only to
State and local governmental entities for projects that meet the
requirements of all applicable State and federal legislation and
regulations, as amended from time to time. The Department of
[Health and Mental Hygiene] THE ENVIRONMENT, 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)  If a federal grant offer is made for a sewage
treatment plant and related facility project, the State grant

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