(1) A water supplier that is interested in applying for assistance under this part shall prepare and submit to the department a planning document as provided in this section. The department shall use the planning documents submitted under this section to develop a priority list for assistance as provided under this part. A water supplier may submit as part of the planning document for a project either of the following:

  (a) Any preexisting documents or plans that were prepared for other projects or purposes.

  (b) Any preexisting documents that were developed under another local, state, or federal program, as applicable.

  (2) During the development of a planning document, a water supplier that is a municipality shall consider and utilize, where practicable, cooperative regional or intermunicipal projects, and a water supplier that is not a municipality shall consider and utilize, where practicable, connection to, or ownership by, a water supplier that is a municipality.

  (3) A planning document must include documentation that demonstrates all of the following:

  (a) The project is needed to ensure maintenance of or progress toward compliance with the minimum requirements of the national environmental policy act of 1969, Public Law 91-190, 42 USC 4321, 4331 to 4335, and 4341 to 4347.

  (b) An analysis of alternatives including the cost of each alternative.

  (c) A description of project costs and how the project will be paid for including, but not limited to, an explanation of how the debt will be repaid.

  (d) A list of the environmental and public health implications and mitigation plans.

  (e) Consideration of opportunities to utilize more efficient energy and resources as described in any of the following:

  (i) The cost-effective governmental energy use act, 2012 PA 625, MCL 18.1711 to 18.1725.

  (ii) Section 11c of 1851 PA 156, MCL 46.11c.

  (iii) Section 75b of 1846 RS 16, MCL 41.75b.

  (iv) Section 5f of the home rule city act, 1909 PA 279, MCL 117.5f.

  (v) Section 24b of the home rule village act, 1909 PA 278, MCL 78.24b.

  (vi) Section 36 of the general law village act, 1895 PA 3, MCL 68.36.

  (4) A planning document must describe the public participation activities conducted during planning and must include all of the following:

  (a) Significant issues raised by the public and any changes to the project that were made as a result of the public participation process.

  (b) A demonstration that there were adequate opportunities for public consultation, participation, and input in the decision-making process during alternative selection.

  (c) A demonstration that before the adoption of the planning document, the water supplier held a public meeting on the proposed project not less than 10 days after advertising the public meeting in local media of general circulation including, but not limited to, the water supplier’s website, and at a time and place conducive to maximizing public input.

  (d) A demonstration that, concurrent with advertisement of the public meeting, a notice of public meeting was sent to all affected local, state, and federal agencies and to any public or private parties that expressed an interest in the proposed project.

  (e) A summary of the public meeting, including a list of all attendees and any specific concerns that were raised.

  (5) A planning document must include either of the following, as appropriate:

  (a) For a water supplier that is a municipality, a resolution adopted by the governing board of the municipality approving the planning document.

  (b) For a water supplier that is not a municipality, a statement of intent to implement the planning document.

  (6) A planning document must not have as a primary purpose the construction of or expansion of a waterworks system to accommodate future development or fire protection.