PUBLIC LAW 87-88-JULY 20, 1961
[75 S T A T
(b) Subsection (f) of section 5 of the Federal Water Pollution Control Act is amended by striking out "and" at the end of paragraph (4) thereof, by striking out the period at the end of paragraph (5) thereof and inserting in lieu thereof the following: "; and", and by adding after such paragraph (5) the following new paragraph: "(6) sets forth the criteria used by the State in determining priority of projects as provided in section 6(b)(4)." (c) The amendment made by subsection (a) of this section shall take effect July 1, 1961. (d) The amendment made by subsection (b) of this section shall take effect July 1, 1962. SEC. 5. (a) Clause (2) of subsection (b) of section 6 of the Federal "Water Pollution Control Act is amended to read as follows: "(2) except as otherwise provided in this clause, no grant shall be made for any project in an amount exceeding 30 per centum of the estimated reasonable cost thereof as determined by the Secretary, or in an amount exceeding $600,000, whichever is the smaller: Provided, That the grantee agrees to pay the remaining cost: Provided further, That, in the case of a project which will serve more than one municipality (A) the Secretary shall, on such basis as he determines to be reasonable and equitable, allocate to each municipality to be served by such project its share of the estimated reasonable cost of such project, and shall then apply the limitations provided in this clause (2) to each such share as if it were a separate project to determine the maximum amount of any grant which could be made under this section with respect to each such share, and the total of all the amounts so determined or $2,400,000, whichever is the smaller, shall be the maximum amount of the grant which may be made under this section on account of such project, and (B) for the purpose of the limitation in the last sentence of subsection (d), the share of each municipality so determined shall be regarded as a grant for the construction of treatment works;".
(b) Subsection (b) of such section 6 is further amended by striking out "and" at the end of clause (3) and by inserting before the period at the end of clause (4): "; and (5) no grant shall be made under this section for any project in any State in an amount exceeding $250,000 until a grant has been made thereunder for each project in such State (A) for which an application was filed with the appropriate State water pollution control agency prior to one year after the date of enactment of this clause and (B) which the Secretary determines met the requirements of this section and regulations thereunder as in effect prior to the date of enactment of this clause". Reallocation of (c) The third sentence of subsection (c) of such section 6 is amended unobligated sums. to read as follows: "Sums allotted to a State under the preceding sentence which are not obligated within six months following the end of the fiscal year for which they were allotted because of a lack of projects which have been approved by the State water pollution control agency under subsection (b)(1) of this section and certified as entitled to priority under subsection (b)(4) of this section, shall be reallotted by the Secretary, on such basis as he determines to be reasonable and equitable and in accordance with regulations promulgated by him, to States having projects approved under this section for which grants have not been made because of lack of funds: Provided, Special provi- Jiowever, That whenever a State has funds subject to reallocation and the Secretary finds that the need for a project in a community in such State is due in part to any Federal institution or Federal construction activity, he may, prior to such reallocation, make an additional grant