TITLE 31.NATURAL RESOURCES AND CONSERVATION

Part 10. TEXAS WATER DEVELOPMENT BOARD

Chapter 363. FINANCIAL ASSISTANCE PROGRAMS

Subchapter J. STATE PARTICIPATION PROGRAM

31 TAC §§363.1002, 363.1003, 363.1006, 363.1007

The Texas Water Development Board (board) adopts amendments to 31 TAC Chapter 363, concerning the State Participation Program without changes to the proposed text as published in the June 6, 2003 issue of the Texas Register (28 TexReg 4407) and will not be republished. Amendments to §§363.1002, 363.1003, 363.1006 and 363.1007 relate to the administration and the level of financial investment of the State in projects eligible for funding from the State Participation Program.

The amendment to §363.1002 provides a definition of new water supply projects that identifies proposed projects which will create new, usable supplies of water. The purpose of this definition is to identify projects that create new supplies of water separate from projects that provide for retail water or wastewater services. Relying on this definition, amendments to §363.1003 create two new paragraphs. New paragraph (1) authorizes the board to financially participate in up to 80% of the costs of a new water supply project. Limited funding for state participation projects creates a necessity to prioritize the use of funds for projects. Financially participating at a higher level in projects that create new water supplies provides an additional incentive for the development of new supplies of water over other projects eligible for funding from the state participation program. A higher level of financial participation in these types of projects is consistent with the historic levels of financial participation undertaken by the state. New paragraph (2) authorizes the board to financially participate in up to 50% of the costs of all other projects that are eligible for the State Participation Program. This level of participation has provided support necessary for the viability of these types of projects and is determined to an appropriate level of state participation at this time. Amendments to §363.1006 will amend the dates for application submission, for application rating, and for board consideration. In this manner, applicants are assured of timely consideration of project applications while providing the board flexibility to adjust the amount of time for necessary for an adequate review of applications as it deems appropriate. Section 363.1007 will add a new rating criterion such that new water supply projects are entitled to receive 2 rating points. Providing additional points for new water supply projects further the purposes of emphasizing new water supply projects over other projects eligible for funding from the state participation program on a relative basis.

No comments were received on the proposed amendments.

Statutory authority: Water Code, §6.101.

Cross-reference to statute: Water Code, Chapter 16, Subchapters E and F; and Chapter 17, Subchapters D, E, and F.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 16, 2003.

TRD-200304306

Suzanne Schwartz

General Counsel

Texas Water Development Board

Effective date: August 5, 2003

Proposal publication date: June 6, 2003

For further information, please call: (512) 475-2052