(a) The Department shall appoint and maintain a Project Evaluation Team composed of Department staff and other consulting governmental agencies. The Department may request consultation with any appropriate government agency, including but not limited to the Department of Conservation, the Department of Fish and Game, the Department of Food and Agriculture, the Office of Emergency Services, and the CALFED Bay-Delta Program.

(b) Local public agencies or nonprofit organizations qualified under Section 497.4 may apply for program grants for projects at such times as the Department may designate. Applications for proposed projects shall be submitted in response to a solicitation issued by the Department. As long as uncommitted funds remain available to fund new projects, the Department shall solicit proposals at least once per calendar year. The time period for submitting applications shall be 90 days from the date notice is given by the Department that project proposals are being solicited. Notices shall be provided to cities, counties, flood control districts, reclamation districts, and other local government entities that manage flood plains and flood control projects. The Department will also provide notice to nonprofit organizations with interest in flood management issues, and shall send notice to all individuals and organizations that have requested notice of the opportunity to submit applications. Notices may be given by mail, electronic mail, website posting, or any other method that provides easy access and prompt availability. Projects shall meet the requirements of Section 497.5. Applications shall meet the requirements of Section 497.7.

(c) The Project Evaluation Team shall review each application and evaluate the subject project within 60 days of the close of the specified submittal period, or within 60 days of receipt of requested additional information, whichever is later.

(d) The Project Evaluation Team shall notify the Department to request the applicant to provide additional information within 30 days of the Department's request if:

(e) If the requested additional information cannot be provided in 30 days, the applicant may refile its application with the additional information at the Department's next solicitation of proposals.

(f) When a proposal that meets minimum qualifications is complete and all requested additional information has been supplied, the Project Evaluation Team shall complete the evaluation of the project including recommending its place on a priority list as described in Section 497.6.

(g) After each solicitation of proposals, Department staff, using the evaluations and recommended priorities of the Project Evaluation Team, shall recommend projects, priority, and amounts per project to be funded and submit the recommendations to the Director for approval of the priority lists. Department staff may recommend:

(h) Department staff will apply a maximum funding guideline of $5,000,000 per project in its recommendations to the Director, although the staff may recommend funding above the guideline and the Director may increase the amounts for individual projects if necessary to achieve the goals of the program.

(i) The Director will determine the final content and priority order of the lists and the amount of funding for each project. The total funding of all projects on the Director-approved priority lists may be less than or more than the funding available.

(j) If the total funding for all projects on the Director-approved priority lists is less than available funds, staff will wait until the next solicitation of proposals to resubmit unfunded projects or submit new projects to the Director for listing.

(k) After the establishment of satisfactory Director-approved priority lists, the Department shall hold public hearings, if required by Section 497.8 or the Department deems advisable, on the projects to be funded. After consideration of the results of the public hearing, if the unfunded project first in priority order still meets the requirements of Section 497.5, if program funds remain, and if the applicant desires to pursue the project, Department staff will recommend the Director award a grant to the applicant. When the Director approves grant funding for the project, the applicant becomes the project sponsor.

(l) Prior to expending any funds, the Department and the sponsor shall enter into a grant contract as specified in Section 497.9.

(m) Grant funds will be disbursed as provided in the contract to reimburse costs incurred by the sponsor, but not for the following:

(n) The Department may withhold up to 10 percent of each disbursement, as specified in the contract, to ensure completion of the project.

(o) When the project is completed to the satisfaction of the Department and the sponsor has provided a completion report as described in Section 497.10 and a maintenance plan as described in Section 497.11, the Department will notify the sponsor that the project is accepted and will pay any withheld funds.

(p) The sponsor shall provide for permanent maintenance of the project until the Department determines that maintenance is no longer necessary. The Department will monitor and enforce project maintenance as described in Section 497.11.

(q) In rare cases, the need for project maintenance may end. The sponsor may present evidence in writing that maintenance will no longer be necessary after a certain date or after certain conditions occur. The Department, at its sole discretion, may determine in advance that maintenance will no longer be necessary after the specified date or after the occurrence of the specified conditions.

(r) If the Department determines that maintenance is now no longer necessary or will no longer be necessary after a certain future date, the sponsor after such determination or such future date, whichever is applicable, shall return to the State the principal and unused proceeds of any maintenance trust funds originating from a grant under this program.