Sec. 626.5. Payments

(a) Installment payments of the State grant will be made at the request of the municipality, and will be based on the cost of the work performed, materials and equipment supplied and incorporated in, and services rendered in connection with, an approved project, and may be made as follows:

(1) a first installment not to exceed 50 percent of the cost for design and engineering and/or other planning services, payable following the signing of the grant contract and award of construction contract;

(2) a second installment when not less than one third of the construction of the project is completed;

(3) a third installment when not less than two thirds of the construction of the project is completed;

(4) a fourth installment when the project is completed, inspected and in operation;

(5) ten percent will be retained from each payment and the final payment will be released only after approval of final audit, contingent upon correction of deficiencies, if any, either in existence at the final inspection or that may have developed in the operation of the plant subsequent to the final inspection; or

(6) upon presentation of evidence supporting the necessity therefor, the commissioner may agree with a municipality to a different schedule of payments.

(b) Any cost of work completed after the final inspection will not be considered as part of the eligible project cost.

(c) The total grant payments for any project shall not exceed 50 percent of the estimated reasonable cost or the actual cost of the project, whichever is the lower after deducting any other State or Federal funds received or to be received for the project.

(d) In the event that the municipality fails to comply with any of the requirements of the Environmental Conservation Law or the State Sanitary Code, or rules and regulations of the commissioner applicable to the air quality improvement project, the commissioner may upon reasonable notice withhold, in whole or in part, further payments to the municipality pending compliance.