The department of environment and conservation is authorized to establish a grant program to further the purposes of parts 10 and 12 of this chapter utilizing federal funds allocated and state funds appropriated for such purposes. Eligible recipients of grants awarded pursuant to this part must be limited to the types of entities eligible for low-cost loans under parts 10 and 12 of this chapter or otherwise eligible as provided by federal law for the capitalization grants authorized for the loan programs established by parts 10 and 12 of this chapter. Eligible projects must be limited to those authorized by parts 10 and 12 of this chapter or otherwise eligible as provided by federal law for the capitalization grants authorized for the loan programs established by parts 10 and 12 of this chapter. The commissioner may administer the grant program in accordance with criteria set by the federal government.