(1) The department shall develop scoring criteria that assign points to and prioritize projects under section 5303 and definitions of overburdened community and significantly overburdened community. In developing scoring criteria and the definitions under this subsection, the department shall do all of the following:

    (a) Consult with members of statewide local government associations and drinking water, wastewater, stormwater, and environmental organizations regarding the content of the scoring criteria and definitions.

    (b) Publish, hold at least 1 public hearing, and allow for public comment.

    (c) Review the scoring criteria and definitions not more than once every 3 years, unless otherwise directed by the United States Environmental Protection Agency.

    (d) Publish, hold at least 1 public hearing, and allow for public comment on any changes made after a review under subdivision (c).

    (2) The scoring criteria developed under subsection (1) must address the following:

    (a) Wastewater regulatory compliance.

    (b) Public health.

    (c) Achieving water quality standards.

    (d) Improving infrastructure.

    (e) Impacts on overburdened communities and significantly overburdened communities.

    (3) The definitions of overburdened community and significantly overburdened community developed under subsection (1) must address the following:

    (a) Income and unemployment data.

    (b) Population trends.

    (c) Housing costs and values.

    (d) Annual user costs, allocation of costs across customer classes, and historical and projected trends in user costs.

    (e) Existing public health, environmental, and affordability impacts.

    (f) Other data considered relevant by the department.