A. The Commonwealth shall provide for its estimated 56 percent share of the capital cost of constructing a wastewater treatment plant to be operated by the Town of Craigsville. The state share of the construction cost for this project shall consist of three parts: (i) a grant of up to $2,700,000 from the Water Quality Improvement Fund by the Department of Environmental Quality, in furtherance of improving the health of the Chesapeake Bay; (ii) a 20-year loan with a principal amount of $2,384,191, more or less, from the Department of Environmental Quality, to be repaid by the Department of Corrections as specified in paragraph B. of this item, and (iii) Virginia Public Building Authority (VPBA) bonds in an amount of up to $1,000,000.

B. No payment shall be made to the Town of Craigsville until the Department of Corrections has entered into a new contract with the Town of Craigsville, which, along with other appropriate terms, shall provide that all charges to be paid for all future wastewater treatment for the Augusta Correctional Center shall be based solely upon the Augusta Correctional Center's actual metered usage and that the Augusta Correctional Center shall be charged at a rate no higher than the lowest rate charged to any other customer of the wastewater treatment plant. The contract shall also provide for an annual payment of $120,000 from the Department of Corrections to the Town of Craigsville for 20 years, representing the reimbursement of debt service on the loan provided to the Town of Craigsville by the Department of Environmental Quality.