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the projects can be disseminated and evaluated for replication elsewher , and the consistency of, and contributions of, the project to the state' s hazardous waste management program. (c) Using the criteria adopted pursuant to subdivision (b) , select projects to receive grants to construct equipment which would be used to demonstrate haaardous waste reduction, recycling, or treatment technologies. A grant issued by the department pursuant to this section is not subject to Chapter 2 (commencing with Section 10290) of Part 2 of the Public Contract Code, including, but not limited to, Section 10295 of the Public Contract Code, or Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code. The department shall select projects which also meet at least one of the following requirements: (1) The project has onsite, as well as offsite potential, for the reduction, recycling, or treatment of hazardous waste. (2) The project has the potential to benefit, or be utilized by, small businesses. (3) The project is applicable to a range of industries. (Amended by Stats. 1987, Ch. 914. ) 25244.7. Consistent with Article VII of the California Constitution, the department may contract for services to be performed to carry out this article, including, but not limited to, environmental control assessment, feasibility analysis, the review of project design, field management responsibilities, and project scheduling and control. (Added by Stats. 1985, Ch. 1030. ) 25244.8. Grant funding for equipment construction needed for demonstration of hazardous waste reduction, recycling, and treatment technologies shall be provided to projects selected pursuant to Section 25244.6 in four consecutive steps: (a) Step I grants shall be made to study the feasibility of a proposed project. Ninety percent of the costs of the feasibility study shall be eligible for grant funding up to a maximum of twenty-five thousand dollars ($25,000) per grant. In activities funded by a step I brant, the applicant shall develop information needed to select the waste reduction, recycling, or treatment alternative, which would be most cost-effective. (b) Step II grants shall be made for project design. Seventy percent of the costs of the design of the project shall be eligible for grant funding, except that a small business may be eligible for 90 per ent of those costs, up to a maximum of fifty thousand dollars ($50,000) er grant. In activities funded by a step II grant, the applicant shall prepare detailed plans and specifications for the selected facilities, establish schedules for implementation, and obtain necessary permits. (c) Step III grants shall be made for the construction of the facilities. Fifty percent of the costs of constructing the project scall be eligible for grant funding, except that a small business may be eligible for 80 percent of those costs, up to a maximum of four hundred thousand dollars ($400,000) per grant. As a condition of receiving a step III grant, the grantee shall allow the results of the project t be evaluated and the information disseminated to other parties. In activities funded by a step III grant, the applicant shall construct the -193-