(A) In selecting projects for formal submission to the director or the administrator, district committees, executive committees, and small government subcommittees, shall comply strictly with the requirements of divisions (B) and (D) of section 164.06 of the Revised Code. In conjunction with any project application so submitted by such a committee, the committee shall provide the director or the administrator with a detailed explanation of its rationale in selecting the project application in light of each and every criterion set forth in that division, including the requirement to give priority to projects for the repair or replacement of existing infrastructure, and projects which would be unlikely to be undertaken without assistance under Chapter 164. of the Revised Code.

(B) Each district committee, executive committee, or small government subcommittee shall only employ project selection criteria referenced in paragraph (A) of this rule, and shall not use any of the following unrelated criteria:

(1) A preproject application determination that certain subdivisions are entitled, because of their relative population sizes or for any other reason, to awards of financial assistance up to a fixed dollar value;

(2) Formal or informal decisions to select projects for formal submission contingent upon an applicant's financial or other support for the operating expenses of the committees, staff, or agents of the district;

(3) A district-wide formula, whether formalized or not, allocating funding entitlement amongst subdivisions on a per capita basis or otherwise, except to the extent expressly authorized under division (G) of section 164.05 of the Revised Code.

(C) The director may disapprove, or the administrator may make a determination against approval for, any project application submitted in violation of the requirements of paragraph (A) or (B) of this rule.