(1) A recipient of a loan or grant may not use these funds to conduct remedial actions of a release or threatened release from a petroleum underground storage tank system requiring financial assurances under chapter
70A.355 RCW or subtitle I of the solid waste disposal act (42 U.S.C., chapter 82, subchapter IX) unless the owner or operator:
(a) Agrees to first expend all moneys available under the required financial assurances;
(b) Demonstrates that all moneys available under the required financial assurances have been expended; or
(c) Demonstrates that a claim has been made under the required financial assurances and the claim has been rejected by the provider.
(2) A recipient must use a loan or grant for a project that develops and acquires assets that have a useful life of at least thirteen years.