.05 Application Review and Approval.

A. The Department To Approve or Disapprove an Application.

(1) If the Department approves a project, it shall base the amount of State cost sharing on:

(a) The existence of a critical condition;

(b) Water quality improvements to be achieved, with consideration given to the cumulative effect of other projects on the same body of water;

(c) The estimated reduction of soil loss;

(d) The estimated reduction of pollution from animal waste;

(e) The estimated economic benefit to the participating farmer from use of the best management practice; and

(f) Use of the most cost effective best management practice.

(2) The Department shall disapprove an application for any of the following reasons:

(a) The application is incomplete or does not comply with these regulations;

(b) The applicant's land is not a farm or is not used for agricultural purposes;

(c) The application is for a farm where a critical condition does not exist;

(d) The applicant has requested cost sharing funds to re-establish an agricultural practice which has deteriorated due to the negligence or mismanagement of the applicant;

(e) The application is for a project which is already under construction; or

(f) No available funds.

B. Within 30 days, the Department shall notify both the applicant and the district if an application is approved, and the applicant shall be notified of the estimated State cost sharing amount for the project and the applicant's required matching amount.