(b) The priority ranking of water resources development projects shall be based generally on the approval standards set out in 15 CAR § 2-401 and specifically on the following factors:

1. (1) The overall cost of the project compared to its potential or predicted benefits;
2. (2) The potential for the project to provide economic development in the area; and
3. (3) The commitment of any state or local government funds to the project to contribute to the applicant's nonfederal share of the cost of the overall project.

(c) In selecting the applicants to receive grants under the Arkansas Water Resources Cost Share Revolving Fund Program, the following factors shall be taken into consideration by the commission:

1. (1) The financial ability of the local government applicant to provide the cost sharing funds for the proposed water resources development project including all available tax sources or assessments;
2. (2) The burden placed on low income, elderly, and unemployed persons if the local government applicant participates in a cost-sharing project and pays for the nonfederal share through a user fee or property tax; and

3. (3) The amount of fair user fees or other revenues that the proposed water resources development project may reasonably be expected to generate in excess of those that would:

   1. (A) Amortize the local share of the initial cost; and
   2. (B) Provide for its successful operation and maintenance, including depreciation.

(d) No grant under the Arkansas Water Resources Cost Share Revolving Fund Program shall be awarded until the local government applicant has:

1. (1) Furnished the commission with sufficient proof of the exhaustion of all other funding sources; and
2. (2) Established that a deficiency exists in the amount of local funds available to finance the nonfederal share of the project.