The Department shall annually rank applications for grant and loan assistance. The Department shall hold a public hearing, following public notification in the Maryland Register and the Department's web site regarding the annual priority list. Following the public hearing, the Department may change the rankings of projects based on public input. Projects Not on Annual Priority List. The Board of Public Works may award financial assistance for projects not included on the annual priority list, if it determines that: The project arises out of an unanticipated immediate need; and Irreparable damage to the public health would result if the project is not constructed. Priority System. The State priority system for the award of financial assistance shall be developed by the Department, may be subject to public hearings, and will result in a priority list that shall be used to award the financial assistance. The priority system shall take into account, as appropriate: The public health benefits of the project; The project's ability to comply with any mandatory legal requirements; The environmental benefits, system reliability benefits, or both of the project; The project's compliance with water conservation requirements; The size of the community, with a preference given to small community projects; and The financial, technical, and managerial capacity of the applicant. Based on the priority system, the Department shall develop a priority list of projects.