(a)      If the State has agreed to pay the costs set out in § 2-402 of this subtitle and any additional construction costs associated with the connection, the State may connect a State facility, regardless of its location, to a publicly owned utility system.

      (b)      If an existing publicly owned utility system is inadequate to handle proposed State utility needs, the State shall pay all costs that are:

            (1)      associated with the expansion of the publicly owned utility system to meet the needs of the State; and

            (2)      in excess of available federal funds.

      (c)      Before connecting to any publicly owned utility system, the State shall:

            (1)      coordinate with the owner of the publicly owned utility system; and

            (2)      consider any existing master plan in establishing the fiscal obligation of the State under this section.

      (d)      (1)      After determining the need of the State for water or sewerage capacity, the State shall provide the information to the appropriate local jurisdictions.

            (2)      The local jurisdictions shall include State facility needs in developing their master plans for water and sewerage systems.