(a) The department shall adopt regulations under Alaska Stat. Chapter 44.62 (Administrative Procedure Act) that establish

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(1) eligibility requirements for applicants for a grant under Alaska Stat. § 46.06.120;
(2) standards for the evaluation of proposals submitted by applicants for grants under Alaska Stat. § 46.06.120; and
(3) other conditions for the receipt of a grant under Alaska Stat. § 46.06.120 that are necessary to achieve the purposes of this chapter.
(b) The regulations adopted by the department under (a) of this section must meet the following criteria:

(1) if there is not enough money for grants to all eligible applicants, the following shall receive priority:

(A) a proposed program or project that most efficiently recovers materials or energy from litter;
(B) the proposed program or project that creates the greatest number of new jobs;
(2) the maximum amount for a single grant shall be established so that available money is distributed to a variety of programs;
(3) a grant may be made for new programs or for improvements to or additions to existing programs that were not previously financed by other existing resources of financing.