(a) (1) Any person or entity may apply to the director of the Kansas water office for expenditure of moneys in the Arkansas river water conservation projects fund for the purposes set forth in paragraph (1) of subsection (a) of Kan. Stat. Ann. § 82a-1801, and amendments thereto.

(2) Any person or entity may apply to the director of the Kansas water office for expenditure of moneys in the Republican river water conservation projects – Nebraska moneys fund and the Republican river water conservation projects – Colorado moneys fund for the purposes set forth in paragraphs (2) and (3) of subsection (a) of Kan. Stat. Ann. § 82a-1801, and amendments thereto.

(b) The director of the Kansas water office and the chief engineer of the Kansas department of agriculture, division of water resources shall review and approve each proposed project for which moneys in either fund will be expended. In reviewing and approving proposed projects the director and the chief engineer shall give priority to: (1) Projects needed to achieve or maintain compliance with the Arkansas river compact or the Republican river compact; (2) projects that achieve greatest water conservation efficiency for the general good; and (3) projects that have been required by the division of water resources. Upon such review and approval, the director of the Kansas water office shall request the legislature to appropriate, as a line item, moneys from either fund to pay all or a portion of the costs for a specific project, except that any project which an aggregate of less than $10,000 will be expended from either fund shall not require a line item appropriation.

(c) Interest attributable to moneys in the Arkansas river water conservation projects fund, Republican river water conservation projects – Nebraska moneys fund and the Republican river water conservation projects – Colorado moneys fund shall be credited to the state general fund as provided by Kan. Stat. Ann. § 75-4210a, and amendments thereto.

(d) All expenditures from the Arkansas river water conservation projects fund, Republican river water conservation projects – Nebraska moneys fund and the Republican river water conservation projects – Colorado moneys fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the director of the Kansas water office or a designee of the director of the Kansas water office.