(1) The department will fund projects that best enable the state to meet the legislative mandate to reduce reliance on nonrenewable energy sources.

(2) Only projects that will be conducted within Montana are eligible for funding.

(3) Funding will be granted only for projects that are applicable to Montana's energy needs.

(4) Only projects or those portions of projects directly related to the research, development, demonstration, or commercialization of renewable energy sources and educational or informational projects are eligible for funding.

(5) Applications dealing with energy storage devices that would promote more efficient utilization of renewable energy will be considered.