WILLIAM DONALD SCHAEFER, Governor                     Ch. 40

(8)  The cost of a project eligible for State
financial assistance under this subsection and which is not
receiving federal financial assistance shall include equipment,
construction, land, easements and rights-of-way. However, the
cost of a project to control nonpoint sources of agriculturally
related water pollution may not include land or interests in land
or the costs of operating and maintaining best management
practices. In the case where the Department has ordered the
Maryland environmental service to provide a project to abate
pollution or to correct the deficient operation of a water
supply, wastewater, or solid waste project of a municipality or
person, as provided in Title 3 of the Natural Resources Article
or the [Health Environmental] ENVIRONMENT Article of the Code,
the eligible cost of a project shall be as authorized under
Natural Resources Article Section 3-101(b), as amended.

(9)  All State loans extended under this subsection
shall be subject to the same conditions and limitations
applicable to loans for sewer facilities under subsection (c) of
this section except for the requirements of subsection (c)(4) OF
THIS SECTION and those requirements which impose a dollar ceiling
limitation on the principal amount of the loan.

(10)  A loan guarantee of the principal of or interest
on any commercial loan or obligation to finance an eligible
project under this subsection to a governmental corporation may
only be made if the applicant certifies that it is unable to
obtain on reasonable terms sufficient credit to finance its
actual needs without such guarantee and if the Board of Public
Works determines that there is a reasonable assurance of
repayment of the loan obligation.

(11)  The Secretary of the Department of [Health and
Mental Hygiene] THE ENVIRONMENT 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 facilities under
this Act. 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, loans, or loan guarantees are
anticipated.

(c) From the proceeds of the sale of the bonds issued under
this Act, the sum of ten million dollars ($10,000,000) may be
used to provide loans to assist in the construction of sewer
facilities. Any county or municipality, or any agency of the
State or its subdivisions charged with providing sewer
facilities, may petition the Department of [Health and Mental
Hygiene] THE ENVIRONMENT for a loan to assist in the construction
of these facilities, after having submitted a copy of its
petition to the State Clearinghouse in the Department of State
Planning. The Department may make a loan available for a project,

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