(c) Certain payment prohibited.— No municipality, municipal authority or school district which is not presently receiving payments under the act of August 20, 1953 (P.L.1217, No.339), entitled "An act providing for payments by the Commonwealth to municipalities which have expended money to acquire and construct sewage treatment plants in accordance with the Clean Streams Program and the act, approved the twenty-second day of June, one thousand nine hundred thirty-seven (Pamphlet Laws 1987), and making an appropriation," may apply for or receive payments under that act. No new or additional costs of equipment or acquisition of sewage treatment plants for which construction has not commenced prior to the effective date of this chapter may be included in a request for payment by a municipality, municipal authority or school district. For purposes of this section, construction shall be deemed to have commenced when:

1. (1) the applicant has applied for or received a permit under the act of June 22, 1937 (P.L.1987, No.394), known as The Clean Streams Law, for construction or modification of the sewage treatment plant;
2. (2) the applicant has applied for or received construction financing or has dedicated capital funds for an identified project before January 1, 2000, and the appropriate construction permit under The Clean Streams Law has been applied for or received before January 1, 2001; or
3. (3) if a construction permit under The Clean Streams Law is not required, a signed contract or purchase order for an eligible acquisition or construction expense has been validly executed.