The department shall not make a grant or a loan under section 19508(1)(a) or (b) unless all of the following conditions are met:

    (a) The applicant demonstrates that the proposed project is in compliance with or will result in compliance with all applicable state laws and rules.

    (b) The applicant demonstrates to the department the capability to carry out the proposed project.

    (c) The applicant provides the department with evidence that a licensed professional engineer has approved the plans and specifications for the project, if appropriate.

    (d) The applicant demonstrates to the department that there is an identifiable source of funds for the future maintenance and operation of the proposed project.

    (e) Notwithstanding any other provision of this section, for grant projects approved for funding under section 19508(1)(a) on or after the effective date of the 2016 amendatory act that amended this section, subdivisions (a) to (d) do not apply and the department shall apply the same application requirements provided for a grant or loan in section 19609.