1. Activities Appropriate for Funding
   1. Recognition of outstanding pollution prevention efforts or exceptional permit compliance by businesses or industries in the HRSD service area
   2. Environmental education or water quality improvement projects in the HRSD service area
2. Eligibility Requirements for Environmental Education or Water Quality Improvement Project Funding
   1. The balance of the Environmental Improvement Fund should not fall below the level required to continue recognition of outstanding pollution prevention efforts or exceptional permit compliance by businesses or industries. Therefore, no request that would take the account balance below the level required for recognition activities will be funded. The Director of Water Quality will recommend the minimum account balance to be maintained.
   2. All projects must benefit receiving waterways or residents of the HRSD service area. Projects that benefit more than one locality in the HRSD service area are preferred.
   3. Only governmental entities, non-profit organizations, or educational institutions will be eligible for donations.
   4. Environmental Improvement Fund expenditures cannot create a liability for HRSD.
   5. Environmental Improvement Fund expenditures cannot finance projects that would create subsequent obligations of HRSD general funds.
3. Selection Criteria for Evaluating Environmental Education or Water Quality Improvement Project Funding Requests
   1. Compatibility with HRSD mission
   2. Number of residents or localities served
   3. Opportunity for collaboration with local governments, environmental agencies, and educational institutions
   4. Need
   5. Anticipated benefits