The feasibility studies to be funded under this provision are studies conducted and reports prepared to determine the engineering, hydrogeologic, environmental, economic and financial feasibility of a proposed water conservation, ground water recharge, water supply project, dam or reservoir. Feasibility study results will provide the information needed to develop a complete construction loan application. A feasibility study shall include an Environmental Impact Report prepared pursuant to Division 13 of the Public Resources Code, commencing with Section 21000. Applications for feasibility study funding shall be filed as required by the Department and shall contain any of the information listed in section 450.2 that is required by the Department. The Department shall determine which applicants will receive feasibility study funding based upon a preliminary review of the soundness of their proposed project, the financial resources available to the applicant, the potential economic justification and critical need for the proposed project, the likelihood that construction of the project will be funded, and the amount of funds available for feasibility study loans and grants.