(a)  There is hereby transferred to the department of environmental management that function formerly administered by the department of community affairs relating to the sewage and water supply failure fund established by chapter 44.1 of this title.

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(b)  In addition to any of its other powers and responsibilities, the department is authorized and empowered to accept any grants made available by the United States government or any agency thereof, and the department, with the approval of the governor, is authorized and empowered to perform such acts and enter into all necessary contracts and agreements with the United States of America or any agency thereof as may be necessary in such manner and degree as shall be deemed to be in the best interest of the state. The proceeds of any grants so received shall be paid to the general treasurer of the state and by him or her deposited in a separate fund and shall be utilized for the purposes of the grant or grants.