To be eligible for ACEDP grants through the Arkansas Natural Resources Commission, grantees must demonstrate that:

1. (1) Projects satisfy one (1) of the following criteria:

   1. (A) Fifty-one percent (51%) or more of the project beneficiaries must be low-to-moderate income persons; or
   2. (B) The project must be recognized by the commission as particularly urgent to address a serious and immediate threat to the health or welfare of the community;
2. (2) Projects eligible under subdivision (1)(A) of this section provide water service or wastewater system service to at least one (1) new customer, resulting in three hundred (300) or more total service customers, unless specifically exempted from this requirement by the Director of the Arkansas Natural Resources Commission;
3. (3) ACEDP grants will not be used to reduce annual water or wastewater rates below those resulting in annual bills of one percent (1%) of the beneficiary median household income, assuming an average of four thousand (4,000) gallons per month usage;
4. (4) Projects are of such a scope that completed construction can be reasonably expected within three (3) years of signing the grant agreement; and
5. (5) Projects comply with the Arkansas Water Plan, 15 CAR pt. 29, if applicable.