Applications for grants under section 5.2(a) of Chapter 55 shall be reviewed by the Water Management Administration. The review shall include the following: An evaluation to determine that: The project is ineligible for a federal grant; or A timely and sufficient federal grant is not available. The Secretary shall submit a copy of the grant application and supporting material to the A-95 clearinghouse for review and comment. A determination of the amount of grant funds necessary to permit the project to proceed. These funds may not exceed 87-1/2 percent of the eligible construction cost. A recommendation to the Secretary of the Environment which shall indicate a course of action to be taken. The Secretary shall: Approve the application and send a letter of recommendation to the Board of Public Works for approval of State grant funds for the project; Reject the application either because it is not suitable under the “Water Quality Loan of 1973” or does not have high enough priority to qualify under section 5.2(a); or Cause the return of the application with a request for additional information required by him. When the State grant is approved by the Board of Public Works, the Secretary shall give notification to the applicant that preparation of contract plans and specifications may proceed for review by his staff and the federal agency, if any, before issuing a construction permit required by Environment Article, §9-204, Annotated Code of Maryland.