(a) the flood hazard at the site is clear, present and significant, or the local government having jurisdiction has special flood hazard areas identified pursuant to the National Flood Insurance Act; and

(b) the site is not subject to an approved State or municipal regulatory system having the same or similar effect on the flood hazard as this Part, the commission may condition its approval on any local governmental project under section 3.8 of the Compact upon the adoption and enforcement of flood plain regulations, approved hereunder, by the State or local government having jurisdiction.