[§340E-34]  Grants.  (a)  The director
may make grants to public water systems from state funds as authorized and
appropriated by the legislature for the construction of necessary water
treatment works or other related drinking water projects.  Grants shall not be
made from the drinking water fund.



(b)  The director shall coordinate the granting
of state funds with available federal funds for the same purpose.  Grants
involving federal funds shall be consistent with federal law.



(c)  The director may allocate grants to
drinking water projects on the basis of existing health concerns.  No grant
shall be made for any project unless:



(1)  The project conforms with the state grant plan to
provide safe drinking water;



(2)  The project is certified by the director as being
entitled to priority over other eligible projects on the basis of financial as
well as drinking water quality needs; and



(3)  In the case of water treatment works, the
applicant for the grant commits to maintain the water treatment plant efficiently
and properly after its construction. [L 1997, c 218, pt of §2]