(a) In reviewing an application by a political subdivision for a grant, the board shall consider:
(1) the degree to which the political subdivision has used other available resources to finance the use for which the application is being made;
(2) the willingness and ability of the political subdivision to raise revenue;
(3) the commitment of the political subdivision to water conservation; and
(4) the benefits that will be gained by making the grant.
(b) To approve a grant to a political subdivision, the board must find that:
(1) the grant funds will supplement rather than replace money of the political subdivision;
(2) the public interest is served by providing the grant; and
(3) the grant will further water conservation in the state.