As used in this title, "coastal rehabilitation project" shall mean those projects which serve a public purpose for beach nourishment necessary to maintain the natural functions of beach areas, maintenance of the natural passage of sand along coastal areas, emergency breach closures and similar activities undertaken by the state, a municipality, or a not-for-profit corporation which demonstrates to the commissioner's satisfaction that it is financially and otherwise capable of operating and maintaining the project, for the restoration and rehabilitation of coastal areas diminished, damaged or destroyed by natural forces.