1. 1. The applicant must first apply with the agency or other financial source which is to furnish the primary financial assistance, and after the amount of that assistance has been determined, an application for a grant hereunder may be made to and processed by the department of natural resources. The department of natural resources shall make the necessary rules and regulations for the consideration and processing of all grant requests, which shall generally conform to those used by federal grant and loan agencies, which rules shall be filed in the office of the secretary of state. The rules shall contain, but shall not be limited to, the following criteria:

   1. (1) Preliminary engineer cost study;
   2. (2) Bonded indebtedness of the district or community;
   3. (3) The financial condition of the district or community;
   4. (4) The cost per connection;
   5. (5) The economic level in the district or community;
   6. (6) The ratio of contracted users to potential users, which shall not be less than seventy-five percent;
   7. (7) The number of acres being protected for any source water protection project.
2. 2. No grant shall be finally approved until the applicant furnishes evidence of a commitment from the primary financial source.

(L. 1989 S.B. 444, A.L. 1999 S.B. 160 & 82)