Applications for state grants under this subdivision shall contain an agreement that the applicant has closed or shall close the unlined solid waste landfill or municipal incinerator in accordance with plans and specifications approved by the department, pursuant to rules adopted by the commissioner under RSA 541-A, and will provide proper post-closure monitoring and maintenance of the landfill, or incinerator, if required. Such plans and specifications shall not be more stringent than federal requirements. Failure to close the solid waste landfill or municipal incinerator in accordance with plans and specifications approved by the department or to provide proper post-closure monitoring and maintenance of the landfill or incinerator site, if required, shall result in loss of payments of the annual grant installment next following such failure. Such loss of payment of the annual grant installment shall continue in effect until such time as the municipality has completed the steps necessary to close the landfill in accordance with plans and specifications approved by the department and has provided proper post-closure monitoring and maintenance of the landfill or incinerator site, if required.