(1) The department will accept and review each application to determine whether it is in substantial compliance with the Act and these rules. If the department determines that the application is not in substantial compliance, the application will be considered deficient and the department will return the application, notifying the applicant in writing and listing the application deficiencies.   The application may be re-submitted after the necessary revisions have been made.   All listed deficiencies must be corrected and the revised application filed in compliance with ARM 17.84.111 prior to the submittal deadline to be eligible for funding consideration.

(2) Grant applications received for consideration in each period will be compared with one another for relative merit as well as evaluated for individual merit.   The technical soundness of the proposed project, the public benefits associated with the proposed project, and the likelihood that the proposed project will lessen reliance on nonrenewable energy sources will be evaluated in determining the merits of each application.   The department will fund those grant applications showing the highest individual and relative merit consistent with the availability of funds.

(3) The department will evaluate loan applications independent of one another to determine whether the loan application meets minimum standard technical criteria established by the department.   Applicants whose applications meet these criteria will be authorized for loan consideration subject to the availability of funds and the participation of a financial institution.

(4) The department shall make the final decision concerning which applications to fund.