(1) The Arkansas Natural Resources Commission is authorized to make either loans or grants to local governments to provide them with the nonfederal interest's share of the cost share for a water resources development project.
(2) The commission shall not make a loan or grant to a local government for more than fifty percent (50%) of the total project cost for a water resources development project.
(3) If the commission determines to provide assistance for a water resources project without the requirement of the execution of a cooperative agreement, the commission may provide up to sixty-five percent (65%) of the total project cost in the form of a loan or grant to the local government.