Section 14. At such time as the United States Secretary of Agriculture and the interested local organization have agreed upon a plan for works of improvement, the division may (1) assume such proportionate share of the nonfederal cost of installing any works of improvement involving federal assistance as it determines to be equitable in consideration of anticipated benefits from such improvements; provided, that no part of the construction cost for providing any capacity in structures for purposes other than flood prevention and features related thereto shall be borne by the commonwealth; and (2) make arrangements, through the local organizations satisfactory to the said Secretary of Agriculture for defraying the costs of operating and maintaining such works of improvement, in accordance with regulations presented by the said Secretary of Agriculture.

In order to carry out the provisions of clause (1) the division shall be the contracting authority for the construction of any works of improvement involving assistance from the commonwealth, but shall designate the appropriate department or departments of the commonwealth or subdivision or subdivisions thereof as the agent or agents of the division for the purpose of making such contracts or performing the work of construction; provided, that whenever the said works of improvement involve stream clearance, channel improvement or construction of dams the division shall designate the division of waterways in the department of conservation and recreation as the contracting agent.

In order to carry out the provisions of the above clause (2) the division is authorized to assume such proportionate share of the costs of operation and maintenance of said works of improvement as it determines to be equitable in consideration of anticipated benefits from such improvements.

In order to insure the continued operation and maintenance of any and all works of improvement that have been installed with the assistance of state funds, the division is authorized and directed to designate as its agent or agents for this purpose the department or departments of the commonwealth or the subdivision or subdivisions thereof which constructed or contracted for the construction of said works of improvement.