limitations.

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A. The energy, minerals and natural resources department shall administer the state supplemental land and water conservation fund and shall process all applications for grants from the state supplemental land and water conservation fund. Funds from the state supplemental land and water conservation fund shall be made available upon the condition that the proceeds are matched by the federal land and water conservation fund state and local assistance formula grants program.

B. Incorporated municipalities, with a population of less than sixty-five thousand persons according to the latest federal decennial census or counties, Indian nations, tribes and pueblos, state parks and other political subdivisions shall be entitled to receive funds from the state supplemental land and water conservation fund; provided that:

(1)     funding requests from Indian nations, tribes and pueblos shall be prioritized;

(2)     funding requests from rural communities shall be prioritized;

(3)     state parks shall be entitled to receive funds from the state supplemental land and water conservation fund in an amount not to exceed seven percent of New Mexico’s annual apportionment of federal land and water conservation fund state and local assistance program funding to perform outreach to Indian nations, tribes and pueblos and political subdivisions of the state and provide technical assistance to prospective applicants; and

(4)     “technical assistance” pursuant to this subsection shall not include compliance procedures conducted by the state parks division of the energy, minerals and natural resources department on behalf of the applicants for the National Environmental Policy Act of 1969, processing of permits, producing geographic information systems data, conducting project planning, developing designs or engaging, contracting or directing project management.

C. Projects proposed shall be in accordance with provisions of the federal Land and Water Conservation Fund Act of 1965, U.S.C. Section 460, and the regulations contained in the United States department of the interior. Funds shall be made available from the state supplemental land and water conservation fund in the event that the United States department of the interior provides fifty percent of the project cost, except that funds may be made available to provide assistance with compliance with the requirements of the National Environmental Policy Act of 1969 and related project pre- clearances. State funds shall be made available for expenditure by the applicant political subdivision once the project is approved by the United States department of the interior.