permit under section 104(g)(1). (2) Approval of release of funds Notwithstanding section 104(g)(2), the Secretary or a State may, upon receipt of a request for release of funds and certification, immediately approve the release of funds for an activity or project to be assisted under this section if the recipient has adopted an environmental review, approval, or permit under paragraph (1) or the activity or project is categorically excluded from review under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ). (3) Units of general local government The provisions of section 104(g)(4) shall apply to assistance under this section that a State distributes to a unit of general local government. (h) Financial controls and procedures (1) In general The Secretary shall develop requirements and procedures to demonstrate that a grantee under this section— (A) has adequate financial controls and procurement processes