(A) In accordance with the requirements of division (D) of section 164.05 of the Revised Code, the director shall not approve, and the administrator shall not recommend, grants for repair and replacement of existing infrastructure in excess of ninety per cent of the estimated total cost of the repair and replacement project, or grants for new or expanded infrastructure in excess of fifty per cent of the estimated cost of the new or expansion elements of the project cost. If a project consists of expansion infrastructure cost, the entire project amount shall be subject to the fifty per cent limitation upon grant funding, unless the applicant supplies satisfactory evidence establishing a reasonable projected replacement project cost for the project. If an applicant establishes to the satisfaction of the director the replacement cost of the project, the fifty per cent limitation upon grants shall apply only to that portion of the expansion project cost which exceeds the projected replacement project cost.
(B) The director shall not approve, and the administrator shall not recommend, a project that only eliminates existing infrastructure. The director shall not approve, and the administrator shall not recommend, any project, or element of a project, that replaces existing infrastructure with infrastructure that has a designed service capacity substantially less than the designed service capacity of the existing infrastructure, regardless of the relative physical dimensions of the existing or replacing infrastructure, unless the applicant provides satisfactory proof that the reduced service capacity is both necessary and sufficient to meet existing public needs for the infrastructure in question.
(C) The applicant shall in the certified cost estimate required by rule 164-1-16 of the Administrative Code identify and delineate separately in detail, the costs involved in the project for each of the following categories: repair project cost and/or replacement project cost, and new project cost and/or expansion project cost. The cost estimate shall clearly identify those elements of the infrastructure proposed in the project that correspond to the categories referred to in this paragraph.