(a)

(1) The state is authorized to make grant allowances to municipalities for purposes of preliminary engineering for wastewater treatment works construction.

(2) The department shall administer this grant program.

(b)

(1) The department shall promulgate regulations setting forth procedures for the submission of applications by municipalities for these grants and for the approval or denial of these applications by the department and setting forth the criteria upon which these approvals and denials will be made, and further setting forth the amounts of such allowances which shall be based on construction cost and the percentage grant amounts bear to total construction cost.

(2) Such rules and regulations shall also include a method of grant payments.

(c) Grant allowances for preliminary engineering shall be made at the same time as the grant for construction as provided in § 68-221-804.

(d) Grant allowances made to municipalities pursuant to this section shall pay the same percentage of the eligible preliminary engineering costs as the grant made pursuant to § 68-221-804 pays of construction costs.

(e)

(1) Grants for preliminary engineering for wastewater treatment works construction projects which are financed by a municipality's own resources may be made by the department.

(2) Such grants shall be at the rate of eighty percent (80%) of allowable preliminary engineering costs.

(3) Such grants shall be paid at the time of construction of the project.

(f) Any municipality receiving a grant under this section and subsequently receiving funds for preliminary engineering from other state or federal sources shall refund such grant to the department, and municipalities previously receiving such grants shall not be eligible for preliminary engineering grant allowances under this section.