The council may utilize its authority to waive state requirements for institutions participating in interstate reciprocity agreements for online or distance education if:
(1) Such waivers are consistent with federal regulations and requirements for state authorization pursuant to 34 C.F.R. Sec. 600.2 and 600.9, including preserving Washington's authorization to administer federal financial aid programs; and
(2) The council finds that the institutions' authorizations are consistent with the council's policies for protection of Washington resident student consumers.