Financial assistance may not be awarded that will cause a project to be funded at a level exceeding 100 percent of the total project cost. Combined State and federal financial assistance normally may not exceed 87-1/2 percent of the federally eligible cost of a project except grants may be awarded for up to 96-1/4 percent of the eligible cost of projects which contain innovative or alternative technology as define in the Clean Water Act and up to 100 percent of the eligible costs of projects undertaken for chlorine removal, nitrogen removal, existing special water quality needs or public health needs, constructing, equipping, rehabilitating and improving sewerage systems at a State-owned institution or facility. State financial assistance in the form of loans shall be as set forth in Regulation .07 of this chapter. Eligible Cost. Costs eligible for combined federal and State grants shall be as specified in the Clean Water Act. Costs eligible for State grants or loans are actual construction-related costs. In addition the following may, in the discretion of the Department of the Environment, be awarded to include some or all of the following supplementary project costs: Reports; Plans; Specifications; Legal and administrative services; Equipment; Rehabilitation or improvement; Acquisition of interest in land; Acquisition of interest in easements; and Acquisition of rights-of-way. Eligibility of supplementary costs will be determined by the Department based on the financial capability of the applicant to bear the additional cost. State financial assistance for supplementary costs may be in the form of a loan. Ordinary cost of government such as salaries and expenses of elected and appointed officials, and other staff, except as may be eligible on federally funded projects, preparation of routine financial reports and studies and development of sewer-use ordinances are not eligible.