To be eligible for State funds from a political subdivision under the program an applicant shall: Own property in this State that is included in the county master water and sewer plan as an area where individual on-site water and sewer systems may be used that: Has an existing failed septic system, or Is unimproved, was platted before 1972, and has failed percolation testing requirements; Have made a good faith effort to obtain approval of, or to use a conventional septic system; Agree to conditions of the experiment as outlined in Regulation .07 of this chapter; and Be limited to one grant to serve one homesite to: Upgrade an existing system; Abate an existing pollution or public health problem related to sewage disposal; or Improve one unimproved site with a new home and innovative and alternative on-site sewage disposal system. Priority for program participation shall be given to applicants who have: An existing failed on-site sewage disposal system which cannot be repaired using conventional methods; An existing pollution or public health problem related to sewage disposal; and Property which offers a significant opportunity for providing useful data to the experimental effort.