(a) The board may enter into an agreement with the federal government for federal contributions to the fund only if both of the following conditions have been met:

1. (1) The state has identified any required matching funds.
2. (2) The board is prepared to commit to the expenditure of any minimum amount in the fund in the manner required by the federal act.

(b) Any agreement between the board and the federal government shall contain those provisions, terms, and conditions required by the federal act, and any implementing federal rules, regulations, guidelines, and policies, including, but not limited to, agreement to the following:

1. (1) Moneys in the fund shall be expended in an expeditious and timely manner.
2. (2) All moneys in the fund as a result of federal capitalization grants shall be used to assure maintenance of progress toward compliance with the enforceable deadlines, goals, and requirements of the federal act, including any applicable municipal compliance deadlines.