A. In compliance with any applicable requirements, an eligible entity may apply to the authority for and accept and incur indebtedness as a result of a loan or any other financial assistance from the water supply development revolving fund for water supply development projects in this state. In compliance with any applicable requirements, an eligible entity may also apply to the authority for and accept grants, staff assistance or technical assistance for a water supply development project in this state.

B. The authority shall do all of the following:

1. Prescribe a simplified form and procedure to apply for and approve assistance.

2. Establish by rule criteria by which assistance will be awarded, including:

(a) For any assistance:

(i) A determination of the applicant’s financial ability to construct, operate and maintain the project if the applicant receives the assistance.

(ii) A determination of the applicant’s ability to manage the project.

(iii) A determination of the applicant’s ability to meet any applicable environmental requirements imposed by federal or state agencies.

(iv) A determination of the applicant’s ability to acquire any necessary regulatory permits.

(b) If the applicant is applying for a loan:

(i) A determination of the ability of the applicant to repay a loan according to the terms and conditions established by this section. At the option of the authority, the existence of a current investment grade rating on existing debt of the applicant that is secured by the same revenues to be pledged to secure repayment under the loan repayment agreement constitutes evidence regarding ability to repay a loan.

(ii) A determination of the applicant’s legal capability to enter into a loan repayment agreement.

3. Determine the order and priority of projects assisted under this section based on the merits of the application with respect to water supply development issues, including the following:

(a) The ability of the project to provide multiple water supply development benefits.

(b) The cost-effectiveness of the project.

(c) The reliability and long-term security of the water supply to be developed through the project.

(d) The degree to which the project will maximize or leverage multiple available funding sources, including federal funding.

(e) The feasibility of the project, including the feasibility of the proposed design and operation of any project.

(f) Comments from water users, local citizens and affected jurisdictions.

(g) Existing, near-term and long-term water demands compared to the volume and reliability of existing water supplies of the proposed recipients of the water supply.

(h) Existing and planned conservation, best management practices and water management programs of the applicant or the proposed recipients of the water supply.

(i) The ability of the project to provide water supply development benefits to multiple jurisdictions within the state.

(j) Other criteria that the authority deems appropriate.

C. The authority shall conduct background checks, financial checks and other reviews deemed appropriate for individual applicants, applicants’ boards of directors and other partners of the applicants.

D. The authority shall review on its merits each application received and shall inform the applicant of the authority’s determination. If the application is not approved, the authority shall notify the applicant, stating the reasons. If the application is approved, the authority may condition the approval on assurances the authority deems necessary to ensure that the financial assistance will be used according to law and the terms of the application.