Section 37A. The department of environmental management, in this section referred to as the department, shall administer a program for the preservation and restoration of the publicly-owned lakes and great ponds of the commonwealth. Said program shall conform to and complement the program authorized by 33 USC 1324 of the Federal Water Pollution Control Act. The department shall survey and investigate said lakes and great ponds and shall classify them according to their trophic condition and taking into account their value for public recreation, the availability of their public beaches and swimming facilities, for such lakes and great ponds which have beaches and swimming facilities, for use by all residents of the commonwealth, and other relevant matters, shall determine the priority of said lakes and great ponds for the studies and projects set forth in this section.

The department shall provide for the conduct of studies to diagnose the limnological and environmental characteristics of said lakes and great ponds and, on the basis of said diagnosis, determine the feasibility of methods and procedures to preserve and restore the quality of said lakes and great ponds. Where the federal government has provided financial assistance in the amount of seventy per cent of the costs of any such study, the department, subject to appropriation, shall provide financial assistance for such study in the amount not exceeding thirty per cent of the costs eligible for such federal financial assistance, as determined by the department. In the event that the Congress does not appropriate funds for such studies under said section 1324 of said Title 33 in any fiscal year, the department, subject to appropriation, shall provide financial assistance for such studies in an amount not exceeding seventy per cent of the costs which would have been eligible for federal financial assistance.

The department shall provide for the conduct of projects to implement methods and procedures for the preservation and restoration of said lakes and great ponds. When the federal government has provided financial assistance in the amount of fifty per cent of the costs of any project, the department, subject to appropriation, shall provide financial assistance for such project in an amount not exceeding twenty-five per cent of the costs eligible for such federal financial assistance, as determined by the division. In the event that the Congress does not appropriate funds for such projects under said section 1324 of said Title 33 in any fiscal year, the department subject to appropriation, shall provide financial assistance for such projects in an additional amount not exceeding seventy-five per cent of the costs which would have been eligible for federal financial assistance.

Financial assistance provided by the department under this section shall be paid in reimbursement in accordance with a schedule of payments approved by the commissioner of administration.