(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 in excess of ninety per cent of the total repair project cost and replacement project cost involved in any project, or grants in excess of fifty per cent of the total new project cost and expansion project cost involved in any project. In the case of a project involving expansion project cost, the entire amount shall be subject to the fifty per cent limitation unless the applicant supplies satisfactory evidence establishing a reasonable projected replacement project cost for the project. In such a case, the fifty per cent limitation 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 in meeting existing public needs for the infrastructure in question.
(C) The applicant shall insure that the certified cost estimate required by rule 164-1-16 of the Administrative Code identifies, in detail, the costs involved in the project in terms of each of the following categories: repair project cost, replacement project cost, new project cost, and 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.