Sec. 2. (a) Each:
(1) unit of local government referred to in IC 13-11-2-158;
(2) state agency; or
(3) interstate agency;
that makes an application for loans or grants under the federal statutes that relates to any program that affects or would affect the environment of Indiana shall notify the department in writing of the application before making the application.
(b) The department may, if the department is a party, participate in all proceedings for the grant.