; and (II) is designed to serve a community or group of communities, each of which has a population of not more than 40,000 inhabitants. (B) Cost-sharing requirement (i) In general Subject to the requirements of this subsection and notwithstanding section 7, the Federal share of an eligible desalination project carried out under this subsection shall be— (I) not more than 25 percent of the total cost of the eligible desalination project; or (II) in the case of a rural desalination project, the applicable percentage determined in accordance with clause (ii). (ii) Rural desalination projects (I) Cost-sharing requirement for appraisal studies Subject to subclause (IV), in the case of a rural desalination project carried out under this subsection, the Federal share of the cost of appraisal studies for the rural desalination project shall be— (aa) 100 percent of the total costs of the appraisal studies, up to $200,000; and (bb) if the total costs of the appraisal studies are more than $200,000, 50 percent of any amounts over $200,000. (II) Cost-sharing requirement for feasibility studies Subject to subclause (IV), in the case of a rural desalination project carried out under this subsection, the Federal share of the cost of feasibility studies for the rural desalination project shall be not more than 50 percent. (III) Cost-sharing requirement for construction costs In the case of a rural desalination project carried out under this subsection, the Federal share of the cost of construction of the rural desalination project shall be not more than 75 percent, unless— (aa) the Secretary determines during the feasibility study phase, on a project-by-project basis, that the non-Federal share should be increased