(a) The department shall adopt regulations under AS 44.62 (Administrative Procedure Act) that establish

1. (1) eligibility requirements for applicants for a grant under AS 46.06.120;
2. (2) standards for the evaluation of proposals submitted by applicants for grants under AS 46.06.120; and
3. (3) other conditions for the receipt of a grant under AS 46.06.120 that are necessary to achieve the purposes of this chapter.

(b) The regulations adopted by the department under (a) of this section must meet the following criteria:

1. (1) if there is not enough money for grants to all eligible applicants, the following shall receive priority:

   1. (A) a proposed program or project that most efficiently recovers materials or energy from litter;
   2. (B) the proposed program or project that creates the greatest number of new jobs;
2. (2) the maximum amount for a single grant shall be established so that available money is distributed to a variety of programs;
3. (3) a grant may be made for new programs or for improvements to or additions to existing programs that were not previously financed by other existing resources of financing.