(1) The commissioner of the Department for Local Government shall administer and determine the disbursement of funds for the Local Match Participation Program.
(2) Funds appropriated for the Local Match Participation Program may be used as matching funds by local governments, soil and water conservation districts established under KRS 262.010 to 262.660, or watershed conservancy districts established under KRS 262.700 to 262.795 for flood-related projects and straight sewage pipe removal projects with:
(a) The United States Army Corps of Engineers;
(b) The Federal Emergency Management Agency (FEMA);
(c) The United States Department of Agriculture Natural Resources Conservation Service; and (d) Other federal government grant and loan programs requiring local matching funds.
(3) Any general fund appropriations made for the Local Match Participation Program may be used for flood control planning and mitigation activities and straight sewage pipe removal and mitigation activities.