(1) The department of environmental quality shall evaluate projects and the department shall evaluate loan applications.  In evaluating projects and applications, the following factors must be considered:

(a) the technical design of the project to ensure compliance with all applicable statutes, rules, and design standards;

(b) the financial capability of the applicant;

(c) the financial, managerial, and technical ability of the applicant to properly operate and maintain the project;

(d) the total financing of the project to ensure completion;

(e) the viability of the public water system;

(f) the ability of the public water system to pay the costs of the project without the requested financial assistance;

(g) the total amount of loan funds available for financial assistance in the state revolving fund;

(h) the total amount requested by other applications that have been received or that are likely to be received;

(i) the ranking of the project on the priority list in the intended use plan; and

(j) any other criteria that the department determines to be appropriate, considering the purposes of the program and the federal act.