(a) Basic grant.--Each eligible county shall receive an annual grant, in addition to the minimum annual grant provided under section 5,¹ which shall be equal to the sum which is obtained by multiplying the balance of funds available to eligible counties by a fraction, the numerator of which shall be each eligible county's net population and the denominator of which shall be the total net population for all eligible counties.

(b) Inclusions.--To the total annual grant to the county determined by section 5 and subsection (a) shall be added the annual grants of each borough, incorporated town and township located in the eligible county whose population is less than 10,000. There shall also be added to the annual grants of the county, the annual grants of each borough, incorporated town and township with a population of 10,000 or more provided such eligible entitlement entity specifically designates the county to administer the grant on its behalf. These add-on grants pursuant to this subsection must be expended by the county on behalf of the eligible borough, incorporated town or township for eligible activities designated by said eligible entity. The county shall, however, have the right to subtract from such add-on grant the proportionate share of environmental compliance, administration, monitoring and audit costs incurred by the county up to the amount allowed under Federal law.