(a) For the purposes of this Part II, a “water supply facility” includes a source, treatment, storage, or distribution facility.

(b) There is a Water Supply Facilities Financial Assistance Program consisting of moneys made available under water supply loan authorizations and funds appropriated in the State budget.

(c) The Board of Public Works, upon the recommendation of the Secretary, may award financial assistance to State and local governmental entities for the acquisition, construction, equipping, rehabilitation, design, and improvement of water supply facilities.