In this day and age, I find it hard to believe that a government agency would actively seek to discriminate against anyone who can provide a warm, loving home for a child in need.
As an attorney, and as someone who is truly harmed by this kind of legislation, I believe it is reprehensible to put this type of ignorance and bigotry down on paper. Our primary concern should always be what is best for the children who are currently without a family to nurture and support them. Individual beliefs and prejudices have no part in this discussion. These children need loving parents and there is absolutely no proof to substantiate the position that LGBT homes cannot provide what a child needs. In fact, the American Academy of Pediatrics published a study that demonstrated that children raised in lesbian homes are perfectly well adjusted and faired even better than their heterosexually raised counterparts. See "US National Longitudinal Lesbian Family Study: Psychological Adjustment of 17-Year-Old Adolescents." Nanette Gartrell and Henny Bos, Pediatrics; originally published online June 7, 2010; DOI: 10.1542/peds.2009-3153.
Although I understand the concerns raised by faith-based adoption agencies, any adoption agency that accepts state funds serves the entire population within that state, not just the select subset that they deem acceptable. If an agency wants to discriminate against LGBT parents, then they should do so on their own dime. I do not doubt that there are individuals out there who would provide financial support to their cause. Accepting public funds, however, changes things.
I urge you to reconsider the changes you have made to these regulations. As revised, the regulations harm the children they are meant to help.