(1) The department may enter into agreements, contracts, or cooperative arrangements under terms and conditions appropriate with other state agencies, federal agencies, interstate agencies, political subdivisions, educational institutions, local health departments, or other organizations or individuals for the purpose of administering this act. The department may solicit and receive grants of money or other aid from federal and other public or private agencies or individuals for the administration of this act, or a portion thereof, to conduct research and training activities or cause them to be conducted, to cause waterworks systems or portions thereof to be constructed, or for other program purposes.

  (2) The department may use funds appropriated to implement this act to provide loan or grant assistance to public water supplies for an activity which furthers the objectives of this act. The department may require matching funds from a public water supply when the department is providing loan or grant assistance.

  (3) The department may receive funds from another agency and pass through funds to persons eligible for funding assistance where applicable and consistent with this act and title XIV of the public health service act, chapter 373, 88 Stat. 1660.