[§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]