(1) Loans and grants may be made from the Water Supply Development Account to persons as defined in ORS 536.007, to a federally recognized Indian tribe in Oregon that has members residing on a reservation or tribal trust lands in Oregon and nonprofit organizations.
(2) If an applicant is required to have a water management and conservation plan, the plan must be:
(a) Submitted to the Water Resources Department prior to department acceptance of an application for a loan or grant from the account.
(b) Approved by the department before the project is awarded a loan or grant.