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operations for a proviso which limited the total sum authorized to be appropriated for any fiscal year for fellowships to not more than $10,000.

Subsecs. (b), (c). Pub. L. 87-88, § 1(b), substituted "Secretary" for "Surgeon General", wherever appearing. Subsecs. (d)—(f). Pub. L. 87–88, § 3 (b), added subsecs. (d) to (f).

1956 Act July 9, 1956, provided for research, investigations, experiments, demonstrations, and studies relating to the causes, control and prevention of water pollution, permitted investigations, research and surveys concerning any specific problem of water pollution, and required collection and dissemination of basic data on chemical, physical, and biological water quality and other information.

EFFECTIVE Date of 1966 AMENDMENT

Section 201(c)(2) of Pub. L. 89-753 provided that: "The amendment made by this subsection (amending subsec. (d) of this section] shall take effect July 1, 1967."

TRANSFER OF FUNCTIONS

All functions of the Secretary of the Interior and the Department of the Interior administered through the Federal Water Quality Administration, all functions which were transferred to the Secretary of the Interior by Reorg, Plan No. 2 of 1966, and all functions vested in the Secretary of the Interior or the Department of the Interior by the Federal Water Pollution Control Act were transferred to the Administrator of the Environmental Protection Agency by Reorg. Plan No. 3 of 1970, § 2(a) (1), eff. Dec. 2, 1970, 35 F.R. 15623, 84 Stat. set out in the Appendix to Title 5, Government Organization and Employees.

All functions of the Secretary of Health, Education, and Welfare and of the Department of Health, Education, and Welfare under the Federal Water Pollution Control Act [this chapter], with certain specified exceptions, were transferred to the Secretary of the Interior and to the Department of the Interior by section 1(a) of 1966 Reorg. Plan No. 2, set out as a note under section 1151 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1163 of this title and in title 16 section 1222.

§ 1156. Grants for research and development. (a) Grants for improvements in disposal method into waters of untreated or inadequately treated sewage or improvements in waste treatment and water purification.

The Administrator is authorized to make grants to any State, municipality, or intermunicipal or interstate agency for the purpose of—

(1) assisting in the development of any project which will demonstrate a new or improved method of controlling the discharge into any waters of untreated or inadequately treated sewage or other wastes from sewers which carry storm water or both storm water and sewage or other wastes, or

(2) assisting in the development of any project which will demonstrate advanced waste treatment and water purification methods (including the temporary use of new or improved chemical additives which provide substantial immediate improvement to existing treatment processes) or new or improved methods of joint treatment systems for municipal and industrial wastes, and for the purpose of reports, plans, and specifications in connection therewith.

(b) Authorization of grants for research and projects to prevent pollution of waters by industry. The Administrator is authorized to make grants to persons for research and demonstration projects

for prevention of pollution of waters by industry including, but not limited to, treatment of industrial waste.

(c) Limitations on grants for projects to improve sewage disposal methods, and waste treatment and water purification.

Federal grants under subsection (a) of this section shall be subject to the following limitations:

(1) No grant shall be made for any project pursuant to this section unless such project shall have been approved by the appropriate State water pollution control agency or agencies and by the Administrator;

(2) No grant shall be made for any project in an amount exceeding 75 per centum of the estimated reasonable cost thereof as determined by the Administrator; and

(3) No grant shall be made for any project under this section unless the Administrator determines that such project will serve as a useful demonstration for the purpose set forth in clause (1) or (2) of subsection (a) of this section. (d) Limitations on grants for projects to prevent industrial water pollution.

Federal grants under subsection (b) of this section shall be subject to the following limitations:

(1) No grant shall be made under this section in excess of $1,000,000;

(2) No grant shall be made for more than 70 per centum of the cost of the project; and

(3) No grant shall be made for any project unless the Administrator determines that such project will serve a useful purpose in the development or demonstration of a new or improved method of treating industrial wastes or otherwise preventing pollution of waters by industry, which method shall have industry-wide application.

(e) Appropriation of funds.

For the purposes of this section there are authorized to be appropriated

(1) for the fiscal year ending June 30, 1966, and for each of the next five succeeding fiscal years, the sum of $20,000,000 per fiscal year for the purposes set forth in subsections (a) and (b) of this section, including contracts pursuant to such subsections for such purposes;

(2) for the fiscal year ending June 30, 1967, and for each of the next four succeeding fiscal years, the sum of $20,000,000 per fiscal year for the purpose set forth in clause (2) of subsection (a) of this section; and

(3) for the fiscal year ending June 30, 1967, and for each of the next four succeeding fiscal years, the sum of $20,000,000 per fiscal year for the purpose set forth in subsection (b) of this section. (June 30, 1948, ch. 758, § 6, as added Oct. 2, 1965, Pub. L. 89-234, § 3, Stat. 905, and amended Nov. 3, 1966, Pub. L. 89-753, title II, § 201(a), 80 Stat. 1246; Apr. 3, 1970, Pub. L. 91-224, title I, § 106, 84 Stat. 113; 1970 Reorg. Plan No. 3, § 2(a) (1), eff. Dec. 2, 1970, 35 F.R. 15623, 84 Stat. -.)

CODIFICATION

"Administrator" was subsituted for "Secretary" pursuant to 1970 Reorg. Plan No. 3, set out in the Appendix to Title 5, Government Organization and Employees,

which abolished the Federal Water Quality Administration in the Department of the Interior and transferred to the Administrator of the Environmental Protection Agency all functions of the Secretary of the Interior and the Department of the Interior formerly administered through the Federal Water Quality Administration.

AMENDMENTS

1970 Subsec. (e). Pub. L. 91–224 extended the authorization of appropriations two fiscal years for the purposes set forth in pars. (1) to (3).

1966 Subsec. (a). Pub. L. 89-753 generally reorganized subsection, added provisions of paragraph (2), and eliminated limitation on authorizations for research and demonstrations relating solely to new or improved methods of controlling the discharge into any waters of sewage or other waste from sewers which carry storm water or both storm water and sewage or other waste, such research and demonstrations to have been conducted by public and private agencies and institutions and by individuals, and such authorizations to have been made without regard to section 529 of Title 31 and section 5 of Title 41 and not to have exceeded 25% of the total amount appropriated under this section.

Subsec. (b). Pub. L. 89–753 added subsec. (b). Former subsec. (b) redesignated as subsec. (c) and amended.

Subsec. (c). Pub. L. 89-753 redesignated former subsec. (b) as (c), and as so redesignated, in par. (2) increased from 50% to 75% the allowable grant in relation to the total estimated cost, and in par. (3) provided that grants shall be made for the development or demonstration of new or improved methods-such methods to have industry-wide application-for treating industrial wastes or otherwise preventing the pollution of waters by industry, instead of for the controlling of the discharge into any water of untreated or inadequately treated sewage or other waste from sewers which carry storm water or both storm water and sewage or other wastes. Former subsec. (c) redesignated as subsec. (e) and amended.

Subsec. (d). Pub. L. 89-753 added subsec. (d).

Subsec. (e). Pub. L. 89-753 redesignated former subsec. (c) and (e) and as so redesignated, authorized additional sums for the purposes set forth by the amended subsections, and eliminated a 5% ceiling on any grant or contract for any project authorized by this section.

TRANSFER OF FUNCTIONS

All functions of the Secretary of the Interior and the Department of the Interior administered through the Federal Water Quality Administration, all functions which were transferred to the Secretary of the Interior by Reorg. Plan No. 2 of 1966, and all funtcions vested in the Secretary of the Interior or the Department of the Interior by the Federal Water Pollution Control Act were transferred to the Administrator of the Environmental Protection Agency by Reorg. Plan No. 3 of 1970, § 2(a) (1), eff. Dec. 2, 1970, 35 F.R. 15623, 84 Stat. - set out in the Appendix to Title 5, Government Organization and Employees. All functions of the Secretary of Health, Education, and Welfare and of the Department of Health, Education, and Welfare under the Federal Water Pollution Control Act [this chapter], with certain specified exceptions, were transferred to the Secretary of the Interior and to the Department of the Interior by 1966 Reorg. Plan No. 2, eff. May 10, 1966, 31 F.R. 6857, 80 Stat. 1608, set out as a note under section 1151 of this title.

§ 1157. Grants for water pollution control programs. (a) Authorization of appropriation.

There are authorized to be appropriated for the fiscal year ending June 30, 1957, and for each succeeding fiscal year to and including the fiscal year ending June 30, 1961, $3,000,000, for each succeeding fiscal year to and including the fiscal year ending June 30, 1967, $5,000,000, and for each succeeding fiscal year to and including the fiscal year ending June 30, 1971, $10,000,000 for grants to States and to interstate agencies to assist them in meeting the

costs of establishing and maintaining adequate measures for the prevention and control of water pollution, including the training of personnel of public agencies.

(b) Specification of sums appropriated for grants to interstate agencies and to States.

The portion of the sums appropriated pursuant to subsection (a) of this section for a fiscal year which shall be available for grants to interstate agencies and the portion thereof which shall be available for grants to States shall be specified in the Act appropriating such sums.

(c) Allotments to States.

From the sums available therefor for any fiscal year the Administrator shall from time to time make allotments to the several States, in accordance with regulations, on the basis of (1) the population, (2) the extent of the water pollution problem, and (3) the financial need of the respective States. (d) Payment to States of amount equivalent to Federal share of cost of carrying out State plan. From each State's allotment under subsection (c) of this section for any fiscal year the Administrator shall pay to such State an amount equal to its Federal share (as determined under subsection (h) of this section) of the cost of carrying out its State plan approved under subsection (f) of this section, including the cost of training personnel for State and local water pollution control work and including the cost of administering the State plan. (e) Allotments to interstate agencies; payment of amount equivalent to Federal share of cost of carrying out plan.

From the sums available therefor for any fiscal year the Administrator shall from time to time make allotments to interstate agencies, in accordance with regulations, on such basis as the Administrator finds reasonable and equitable. He shall from time to time pay to each such agency, from its allotment, an amount equal to such portion of the cost of carrying out its plan approved under subsection (f) of this section as may be determined in accordance with regulations, including the cost of training personnel for water pollution control work and including the cost of administering the interstate agency's plan. The regulations relating to the portion of the cost of carrying out the interstate agency's plan which shall be borne by the United States shall be designed to place such agencies, so far as practicable, on a basis similar to that of the States.

(f) Approval of State or interstate plans; notice and hearing.

The Administrator shall approve any plan for the prevention and control of water pollution which is submitted by the State water pollution control agency or, in the case of an interstate agency, by such agency, if such plan

(1) provides for administration or for the supervision of administration of the plan by the State water pollution control agency or, in the case of a plan submitted by an interstate agency, by such interstate agency;

(2) provides that such agency will make such reports, in such form and containing such information, as the Administrator may from time to time reasonably require to carry out his functions under this chapteer;

(3) sets forth the plans, policies, and methods to be followed in carrying out the State (or interstate) plan and in its administration;

(4) provides for extension or improvement of the State or interstate program for prevention and control of water pollution;

(5) provides such accounting, budgeting, and other fiscal methods and procedures as are necessary for the proper and efficient administration of the plan; and

(6) sets forth the criteria used by the State in determining priority of projects as provided in in section 1158(b) (4) of this title.

The Administrator shall not disapprove any plan without first giving reasonable notice and opportunity for hearing to the State water pollution control agency or interstate agency which has submitted such plan.

(g) Failure to comply with requirements of plan; cessation of payments after notice and hearing; review of action of Administrator.

(1) Whenever the Administrator, after reasonable notice and opportunity for hearing to a State water pollution control agency or interstate agency finds that

(A) the plan submitted by such agency and approved under this section has been so changed that it no longer complies with a requirement of subsection (f) of this section; or

(B) in the administration of the plan there is a failure to comply substantially with such a requirement,

the Administrator shall notify such agency that no further payments will be made to the State or to the interstate agency, as the case may be, under this section (or in his discretion that further payments will not be made to the State, or to the interstate agency, for projects under or parts of the plan affected by such failure) until he is satisfied that there will no longer be any such failure. Until he is so satisfied, the Administrator shall make no further payments to such State, or to such interstate agency, as the case may be, under this section (or shall limit payments to projects under or parts of the plan in which there is no such failure).

(2) If any State or any interstate agency is dissatisfied with the Administrator's action with respect to it under this subsection, it may appeal to the United States court of appeals for the circuit in which such State (or any of the member States, in the case of an interstate agency) is located. The summons and notice of appeal may be served at any place in the United States. The findings of fact by the Administrator, unless contrary to the weight of the evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Administrator to take further evidence, and the Administrator may thereupon make new or modified findings of fact and may modify his previous action. Such new or modified findings of fact shall likewise be conclusive unless contrary to the weight

of the evidence. The court shall have jurisdiction to affirm the action of the Administrator or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of Title 28.

(h) Amount of Federal shares; promulgation.

(1) The "Federal share" for any State shall be 100 per centum less that percentage which bears the same ratio to 50 per centum as the per capita income of such State bears to the per capita income of the United States, except that (A) the Federal share shall in no case be more than 66% per centum or less than 333 per centum, and (B) the Federal share for Puerto Rico and the Virgin Islands shall be 66 per centum.

(2) The "Federal shares" shall be promulgated by the Administrator between July 1 and September 30 of each even-numbered year, on the basis of the average of the per capita incomes of the States and of the United States for the three most recent consecutive years for which satisfactory data are available from the Department of Commerce. Such promulgation shall be conclusive for each of the two fiscal years in the period beginning July 1 next succeeding such promulgation: Provided, That the Federal shares promulgated by the Administrator pursuant to section 4 of the Water Pollution Control Act Amendments of 1956, shall be conclusive for the period beginning July 1, 1956, and ending June 30, 1959.

(3) As used in this subsection, the term "United States" means the fifty States and the District of Columbia.

(4) Promulgations made before satisfactory data are available from the Department of Commerce for a full year on the per capita income of Alaska shall prescribe a Federal share for Alaska of 50 per centum and, for purposes of such promulgations, Alaska shall not be included as part of the "United States". Promulgations made thereafter but before per capita income data for Alaska for a full threeyear period are available for the Department of Commerce shall be based on satisfactory data available therefrom for Alaska for such one full year or, when such data are available for a two-year period, for such two years.

(i) Determination of population of States.

The population of the several States shall be determined on the basis of the latest figures furnished by the Department of Commerce.

(j) Method of computation and payment of allotments. The method of computing and paying amounts pursuant to subsection (d) or (e) of this section shall be as follows:

(1) The Administrator shall, prior to the beginning of each calendar quarter or other period prescribed by him, estimate the amount to be paid to each State (or to each interstate agency in the case of subsection (e) of this section) under the provisions of such subsection for such period, such estimate to be based on such records of the State (or the interstate agency) and information furnished by it, and such other investigation, as the Administrator may find necessary.

(2) The Administrator shall pay to the State (or to the interstate agency), from the allotment available therefor, the amount so estimated by him for any period, reduced or increased, as the case may be, by any sum (not previously adjusted under this paragraph) by which he finds that his estimate of the amount to be paid such State (or such interstate agency) for any prior period under such subsection was greater or less than the amount which should have been paid to such State (or such agency) for such prior period under such subsection. Such payments shall be made through the disbursing facilities of the Treasury Department, in such installments as the Administrator may determine.

(June 30, 1948, ch. 758, § 7, formerly § 5, 62 Stat. 1158; July 9, 1956, ch. 518, § 1, 70 Stat. 499; June 25, 1959, Pub. L. 86-70, § 28(a), 73 Stat. 148; July 12, 1960, Pub. L. 86-624, § 23(a), 74 Stat. 417; July 20, 1961, Pub. L. 87-88, §§ 1(b), 4 (a), (b), 75 Stat. 204, 205; renumbered and amended Oct. 2, 1965, Pub. L. 89-234, §§ 2(a), 7(a), 79 Stat. 903, 910; Nov. 3, 1966, Pub. L. 89-753, title II, § 202, 80 Stat. 1248; 1970 Reorg. Plan No. 3, § 2(a) (1), eff. Dec. 2, 1970, 35 F.R. 15623, 84 Stat.

-.)

REFERENCES IN TEXT

Section 4 of the Water Pollution Control Act Amendments of 1956, referred to in subsec. (h) (2), is section 4 of act July 9, 1956, which is set out as a note under this section.

CODIFICATION

"Administrator" was subsituted for "Secretary" pursuant to 1970 Reorg. Plan No. 3, set out in the Appendix to Title 5, Government Organization and Employees, which abolished the Federal Water Quality Administration in the Department of the Interior and transferred to the Administrator of the Environmental Protection Agency all functions of the Secretary of the Interior and the Department of the Interior formerly administered through the Federal Water Quality Administration.

AMENDMENTS

1966 Subsec. (a). Pub. L. 89-753 increased the amount authorized for the fiscal year ending June 30, 1968 from $5,000,000 to $10,000,000, authorized $10,000,000 for each fiscal year from fiscal year ending June 30, 1969 to and including the fiscal year ending June 30, 1971, and inserted words "including the training of personnel of public agencies."

1965-Subsec. (f) (6). Pub. L. 89–234 substituted "section 8(b) (4)" for "section 6(b) (4)", which for purposes of codification has been changed to read "section 1158(b) (4) of this title."

1961-Subsec. (a). Pub. L. 87-88, § 4(a), authorized appropriations of $5,000,000 for each fiscal year after June 30, 1961, to and including the fiscal year ending June 30, 1968.

Subsecs. (c)-(e). Pub. L. 87-88, § 1(b), substituted "Secretary" for "Surgeon General", wherever appearing. Subsec. (f). Pub. L. 87-88, §§ 1(b), 4(b), substituted "Secretary" for "Surgeon General", wherever appearing, and added par. (6).

Subsecs. (g), (h), (j). Pub. L. 87-88, § 1(b), substituted "Secretary" and "Secretary's" for "Surgeon General" and "Surgeon General's", respectively, wherever appearing.

1960 Subsec. (h)(1). Pub. L. 86-624, § 23(a) (1), substituted "per capita income of the United States" for "per capita income of the continental United States (including Alaska)", and eliminated provisions which prescribed the Federal share for Hawaii as 50 per centum. Subsec. (h) (2). Pub. L. 86-624, § 23 (a) (1), eliminated word "continental" preceding "United States." Subsecs. (h) (3), (4). Pub. L. 86-624, § 23 (a) (2), added subsecs. (h) (3), (4).

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1959 Subsec. (h)(1). Pub. L. 86-70 substituted "(including Alaska)" for "(excluding Alaska)", and eliminated "and Alaska" following "the Federal share for Hawali."

1956 Act July 9, 1956, authorized grants for water pollution control programs and required approval by the Surgeon General of State or interstate plans for the prevention and control of water pollution. Former provisions of this section, which authorized loans for sewerage treatment works, are now covered by section 1158 of this title.

EFFECTIVE DATE of 1961 AMENDMENT

Section 4(c) of Pub. L. 87-88 provided that the amendment of subsec. (a) of this section by Pub. L. 87-88 shall take effect July 1, 1961.

Section 4(d) of Pub. L. 87-88 provided that subsec. (f) (6) of this section shall take effect July 1, 1962. EFFECTIVE DATE OF 1960 AMENDMENT

Amendment of subsec. (h) of this section by Pub. L. 86-624 applicable in the case of promulgations or computations of Federal shares, allotment percentages, allotment ratios, and Federal percentages, as the case may be, made after August 21, 1959, see section 47(a) of Pub. L. 86-624, set out as a note under section 442 of Title 20, Education.

EFFECTIVE DATE OF 1959 AMENDMENT

Amendment of section by Pub. L. 86-70 as applicable in the case of promulgations of Federal shares, allotment percentages, allotment ratios, and Federal percentages, as the case may be, made after satisfactory data are available from the Department of Commerce for a full year on the per capita income of Alaska, see section 47(a) of Pub. L. 86-70, set out as a note under section 442 of Title 20, Education.

TRANSFER OF FUNCTIONS

All functions of the Secretary of the Interior and the Department of the Interior administered through the Federal Water Quality Administration, all functions which were transferred to the Secretary of the Interior by Reorg. Plan No. 2 of 1966, and all functions vested in the Secretary of the Interior or the Department of the Interior by the Federal Water Pollution Control Act were transferred to the Administrator of the Environmental Protection Agency by Reorg. Plan No. 3 of 1970, § 2(a)(1), eff. Dec. 2, 1970, 35 F.R. 15623, 84 Stat. - set out in the Appendix to Title 5, Government Organization and Employees. All functions of the Secretary of Health, Education, and Welfare and of the Department of Health, Education, and Welfare under the Federal Water Pollution Control Act [this chapter], with certain specified exceptions, were transferred to the Secretary of the Interior and to the Department of the Interior by 1966 Reorg. Plan No. 2, eff. May 10, 1966, 31 F.R. 6857, 80 Stat. 1608, set out as a note under section 1151 of this title.

PROMULGATION OF FEDERAL SHARES

Section 4 of act July 9, 1956, provided that: "As soon as possible after the date of enactment of this Act [July 9, 1956] the Surgeon General shall promulgate Federal shares in the manner provided in subsection (h) of section 5 of the Water Pollution Control Act, as amended by this Act [subsec. (h) of this section] (and without regard to the date specified therein for such promulgation), such Federal shares to be conclusive for the purposes of section 5 of such Act [this section] for the period beginning July 1, 1956, and ending June 30, 1959."

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1158 of this title.

§ 1158. Grants for construction of sewerage treatment works.

(a) Authorization.

The Administrator is authorized to make grants to any State, municipality, or intermunicipal or interstate agency for the construction of necessary treatment works to prevent the discharge of untreated or inadequately treated sewage or other

waste into any waters and for the purpose of reports, plans, and specifications in connection therewith.

(b) Limitations.

Federal grants under this section shall be subject to the following limitations: (1) No grant shall be made for any project pursuant to this section unless such project shall have been approved by the appropriate State water pollution control agency or agencies and by the Administrator and unless such project is included in a comprehensive program developed pursuant to this chapter; (2) 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 Administrator; (3) no grant shall be made unless the grantee agrees to pay the remaining cost; (4) no grant shall be made for any project under this section until the applicant has made provision satisfactory to the Administrator for assuring proper and efficient operation and maintenance of the treatment works after completion of the construction thereof; and (5) no grant shall be made for any project under this section unless such project is in conformity with the State water pollution control plan submitted pursuant to the provisions of section 1157 of this title and has been certified by the appropriate State water pollution control agency as entitled to priority over other eligible projects on the basis of financial as well as water pollution control needs; (6) the percentage limitation of 30 per centum imposed by clause (2) of this subsection shall be increased to a maximum of 40 per centum in the case of grants made under this section from funds allocated for a fiscal yeear to a State under subsection (c) of this section if the State agrees to pay not less than 30 per centum of the estimated reasonable cost (as determined by the Administrator) of all projects for which Federal grants are to be made under this section from such allocation; (7) the percentage limitations imposed by clause (2) of this subsection shall be increased to a maximum of 50 per centum in the case of grants made under this section from funds allocated for a fiscal year to a State under subsection (c) of this section if the State agrees to pay not less than 25 per centum of the estimated reasonable costs (as determined by the Administrator) of all projects for which Federal grants are to be made under this section from such allocation and if enforceable water quality standards have been established for the waters into which the project discharges, in accordance with section 1160 (c) of this title in the case of interstate waters, and under State law in the case of intrastate waters.

(c) Determination of desirability of projects and of approving Federal financial aid; allotment of funds; determination of population and per capita income.

In determining the desirability of projects for treatment works and of approving Federal financial aid in connection therewith, consideration shall be given by the Administrator to the public benefits to be derived by the construction and the propriety of Federal aid in such construction, the relation of the ultimate cost of constructing and maintaining the works to the public interest and to the public necessity for the works, and the adequacy of the provi

sions made or proposed by the applicant for such Federal financial aid for assuring proper and efficient operation and maintenance of the treatment works after completion of the construction thereof. The sums appropriated pursuant to subsection (d) of this section for each fiscal year ending on or before June 30, 1965, and the first $100,000,000 appropriated pursuant to subsection (d) of this section for each fiscal year beginning on or after July 1, 1965, shall be allotted by the Administrator from time to time, in accordance with regulations, as follows: (1) 50 per centum of such sums in the ratio that the population of each State bears to the population of all the States, and (2) 50 per centum of such sums in the ratio that the quotient obtained by dividing the per capita income of the United States by the per capita income of each State bears to the sum of such quotients for all the States. All sums in excess of $100,000,000 appropriated pursuant to subsection (d) of this section for each fiscal year beginning on or after July 1, 1965, shall be allotted by the Administrator from time to time, in accordance with regulations, in the ratio that the population of each State bears to the population of all States. Sums allotted to a State under the two preceding sentences 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 Administrator 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 including States having projects eligible for reimbursement pursuant to the sixth and seventh sentences of this subsection: Provided, however, That whenever a State has funds subject to reallocation and the Administrator 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 with respect to such project which will in his judgment reflect an equitable contribution for the need caused by such Federal institution or activity. Any sum made available to a State by reallotment under the preceding sentence shall be in addition to any funds otherwise allotted to such State under this chapter. The allotments of a State under the second, third, and fourth sentences of this subsection shall be available, in accordance with the provisions of this section, for payments with respect to projects in such State which have been approved under this section, except that in the case of any project on which construction was initiated in such State after June 30, 1966, which was approved by the appropriate State water pollution control agency and which the Administrator finds meets the requirements of this section but was constructed without such assistance, such allotments for any fiscal year ending prior to July 1, 1971, shall also be available for payments in reimbursement of State or local funds used for

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