(1) The department shall develop a grants program for local governments to encourage the collection, reuse, and proper disposal of used oil. No grant may be made for any project unless such project is approved by the department.
(2) The department shall consider for grant assistance any local government project that uses one or more of the following programs or any activity that the department feels will reduce the improper disposal and reuse of used oil:
(a) Curbside pickup of used oil containers by a local government or its designee.
(b) Retrofitting of solid waste equipment to promote curbside pickup or disposal of used oil at used oil collection centers designated by the local government.
(c) Establishment of publicly operated used oil collection centers at landfills or other public places.
(d) Providing containers and other materials and supplies that the public can utilize in an environmentally sound manner to store used oil for pickup or return to a used oil collection center.
(e) Providing incentives for the establishment of privately operated public used oil collection centers.
(3) Eligible projects shall be funded according to provisions established by the department. However, in no case shall one grant exceed $25,000.
(4) The department shall initiate rules on or before January 1, 1989, necessary to carry out the purposes of this section.