Water quality enhancement, water supply, sewage, and solid waste facilities grants.

(a) [Repealed, § 19 ch 220 SLA 1976.] (b) The department may grant to a municipality, as funds are available, a grant for any of the following: (1) a water quality enhancement project;

(2) a public water supply, treatment, or distribution system;

(3) a wastewater collection, treatment, or discharge system;

(4) a solid waste processing, disposal, or resource recovery system.

(c) There is a water quality enhancement and water supply, wastewater, and solid waste systems program created in the department to carry out the purposes of this section.

(d) The department shall, by regulation, identify those costs that are eligible costs for the purposes of this section. Eligible costs do not include interest and financing and right-of-way acquisition, or costs that are related to the operation, maintenance, or repair of a system.

(e) A grant under this section to a municipality for a project funded by an appropriation made by the legislature (1) before July 1, 1994, may not exceed 50 percent of the eligible costs of the project;

(2) after July 1, 1994, may not exceed (A) 85 percent of the eligible costs for a municipality with a population of 1,000 persons or less;

(B) 70 percent of the eligible costs for a municipality with a population of 1,001 to 10,000 persons; and

(C) 60 percent of the eligible costs for a municipality with a population greater than 10,000 persons.

(f) [Repealed, § 14 ch 106 SLA 1994.] (g) The match required for grants made under this section may include (1) federal funds; or

(2) state funds, other than those funds received under this section or AS 37.06 .

(h) Construction of a project for which a grant is made under this section may commence only after the department has approved in writing the plans and specifications for the project.