85-1-609. Eligibility for a loan or grant to a private person. The department may not award a grant or loan to a private person unless the department finds, based on the application and the department's investigation and evaluation of the proposal, that:

(1) the proposed water-related project:

(a) will promote, enhance, or advance the purpose, policies, and objectives of the renewable resource grant and loan program;

(b) will be constructed, developed, and operated within the state of Montana;

(c) will be economically feasible. (A project is economically feasible if the project benefits exceed the project costs. The department shall consider only quantifiable benefits and costs in calculating economic feasibility.)

(d) will be an efficient use of natural resources, including water, energy, land, and air. (An efficient use is one that minimizes waste.)

(e) will provide multipurpose facilities to the extent practicable;

(f) will comply with statutory and regulatory standards protecting the quality of resources such as air, water, land, fish, wildlife, and recreational opportunities;

(g) will provide associated public benefits in addition to any private benefits the project may provide; and

(h) is needed to accomplish the purpose for which the project is proposed;

(2) the applicant has adequate financial resources to construct, operate, and maintain the project. The department shall consider financial resources from any source for which the applicant has qualified, including a renewable resource grant or loan.

(3) the applicant holds or can acquire all necessary lands, other than public lands, and interests in the lands and water rights necessary for the construction, operation, and maintenance of the proposed project;

(4) if the application is for a loan, the applicant is creditworthy and able and willing to enter into a contract with the department for loan repayment and construction or development of the proposed project; and

(5) if the application is for a grant, the applicant is able and willing to enter into a contract with the department for construction or development of the proposed project.