(a) The department is authorized to acquire, construct, equip, operate, maintain, expand, and improve a "project," as such term is defined in paragraph (10) of Code Section 12-5-471, in whole or in part, directly or under contract with others, including each of the facilities described in said paragraph (10) of Code Section 12-5-471, for the purpose of promoting the use of the projects and the use of the industrial, recreational, commercial, and natural resources of the State of Georgia for the public good and general welfare; and, without limitation of the foregoing, the department is authorized, with the approval of the State Properties Commission, to acquire land for such purposes; provided, however, that the department shall not engage in competition for customers for its environmental services with any local government offering or providing similar services.

(b) Any project acquired, designed, constructed, equipped, operated, maintained, expanded, or improved by the department or which is funded by the Georgia Environmental Facilities Authority shall conform to and meet standards and procedures promulgated by the Board of Natural Resources pursuant to specific statutory authorization and direction for watershed and wetlands protection.

(c) As a condition precedent to the acquisition or construction of any project, the department shall enter into an agreement with any local government, including any local board of education, which will have property removed from, or converted to tax-exempt status in, its ad valorem tax digest or tax base as a result of the acquisition or construction of the project. Each such agreement shall provide that in each year following the year in which the agreement is entered into the department will make payments in lieu of ad valorem taxes to the affected local government with respect to the property removed from, or converted to tax-exempt status in, the local government's tax digest or tax base. The amount of payments to be made in each year shall be determined by applying the local government's ad valorem tax millage rate for that year to the assessed value of the property removed from, or placed in tax-exempt status in, the local government's tax digest or tax base; and for this purpose the assessed value of such property shall be the assessed value as determined for the year prior to the year in which the property is removed from, or placed in tax-exempt status in, the tax digest or tax base. Such assessed value and payments made shall be increased or decreased from year to year thereafter as the value of other property having the same type and use as that of the project property when removed from the digest shall increase or decrease; provided, however, that the department shall have all rights of appeal available as to value pursuant to Code Section 48-5-311. Payments provided for in this subsection shall be made from funds derived by the department and subject to subsection (b) of Code Section 12-5-474 to the extent that such funds are available; and to the extent that such funds are not available payments provided for in this subsection shall be made from any funds appropriated to the department for this purpose, which appropriated sums shall become a cost of the project or its operations. Deficiencies in payments shall accrue from year to year until paid together with interest without penalty as provided by law.