(1) This section implements RCW 43.155.075. In providing loans and grants for public works projects, the board shall require recipients to incorporate the environmental benefits of the project into their applications, and the board shall utilize the statement of environmental benefits in its prioritization and selection process, when applicable. For projects funded under this chapter, the board may require a local government to:

(a) Have sustainable asset management best practices in place;

(b) Provide a long-term financial plan to demonstrate a sound maintenance program;

(c) Have a long-term financial plan for loan repayments in place; and

(d) Undergo value planning at the predesign project stage, where the greatest productivity gains and cost savings can be found.

(2) The board shall also develop appropriate outcome-focused performance measures to be used both for management and performance assessment of the loan and grant program. To the extent possible, the department should coordinate its performance measure system with other natural resource-related agencies as defined in RCW 43.41.270. The board shall consult with affected interest groups in implementing this section.