(1) In granting an exemption the cabinet may impose such conditions as this chapter may require. If the hardship complained of consists solely of the need for a reasonable delay in which to correct a violation of this chapter or of the cabinet regulations, the cabinet shall condition the grant of such exemption upon the posting of sufficient performance bond or other security to assure the correction of such violation within the time prescribed.
(2) Any exemption granted pursuant to the provisions of this section shall be granted for such period of time, not exceeding one (1) year, as shall be specified by the cabinet at the time of the grant of such exemption, and upon the condition that the person who receives such exemption shall make such periodic progress reports as the cabinet shall specify. Such exemption may be extended from year to year by the cabinet, but only if satisfactory progress has been shown.