(1) The purchase of all or a portion of a water right is eligible for funding if the following project elements are included:

(a) Changing the water right purpose of use to instream flow under RCW 90.03.380.

(b) Permanent conveyance of the water right to ecology to be held in the trust water rights program.

(2) Funding may be provided for work related to preliminary assessment and price valuation when ecology determines that such work is necessary to complete a suitable water right acquisition.

(3) Applicants proposing water right acquisition projects must have a preapplication meeting with ecology.