(a) Commonwealth Libraries, in accordance with the policies in its long-range plan for library facilities, may provide grants to pay for the following eligible project costs:

1. (1) Planning.
2. (2) Acquisition.
3. (3) Development.
4. (4) Rehabilitation.

(b) Grants may not be used for the following ineligible costs:

1. (1) Operating costs of a public library, including costs of purchasing books and other library materials, personnel costs and costs of routine maintenance.
2. (2) Costs of equipment or software, or both, to automate public library functions and catalogs unless the automation is part of the development or rehabilitation of a public library facility.
3. (3) Planning, acquisition, development or rehabilitation of facilities that are not public libraries. In the case of shared facilities, the grant and related matching funds may pay only for that portion of the facility to be used as a public library.