TITLE 31.NATURAL RESOURCES AND CONSERVATION

Part 10. TEXAS WATER DEVELOPMENT BOARD

Chapter 354. MEMORANDA OF UNDERSTANDING

The Texas Water Development Board (board) adopts the repeal of existing §354.4 and new §354.4 concerning a memorandum of understanding between the board and the Office of Rural Community Affairs. Section 354.4 is adopted with changes to correct typographical errors to the proposed text as published in the November 29, 2002 issue of the Texas Register (27 TexReg 11054).

New §354.4 is adopted to replace existing §354.4 of this title (relating to Memorandum of Understanding between Texas Water Development Board and the Texas Department of Housing and Community Affairs) which is being repealed in order to adopt this memorandum of understanding as part of Chapter 354. New §354.4 establishes a memorandum of understanding between the board and the Office of Rural Community Affairs (ORCA) and details the responsibility of each agency regarding the coordination of funds out of the Economically Distressed Areas Program, administered by the board, and the Colonia Fund, administered by the ORCA, in order to maximize delivery of the funds and minimize administrative delay in the expenditure of these funds. New §354.4 differs from the old version in that the responsibility of the administration of the Colonia Fund has been shifted from the Texas Department of Housing and Community Affairs to the ORCA and therefore the coordination of that fund with the Economically Distressed Areas Program can only be accomplished with ORCA. It has been updated to delete the requirements of agencies to develop and provide information to the Senate Border Affairs Committee regarding the relative costs of providing water and wastewater services and the costs of relocating the residents of the area proposed to be served by the board financial assistance. The requirement to develop this information was removed because the legislature is no longer requesting the information. It has also removed the requirement of developing a joint report to the Legislative Budget Board because it has already been submitted.

There were no comments received on the proposed repeal and new section.

31 TAC §354.4

The repeal is adopted under the authority of the Texas Water Code, §6.101 which provides the Texas Water Development Board with the authority to adopt rules necessary to carry out the powers and duties in the Texas Water Code and other laws of the State and §6.104 which authorizes the board to enter into memorandum of understanding with other state agencies.

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 January 22, 2003.

TRD-200300455

Suzanne Schwartz

General Counsel

Texas Water Development Board

Effective date: February 11, 2003

Proposal publication date: November 29, 2002

For further information, please call: (512) 463-7981


31 TAC §354.4

The new section is adopted under the authority of the Texas Water Code, §6.101 which provides the Texas Water Development Board with the authority to adopt rules necessary to carry out the powers and duties in the Texas Water Code and other laws of the State and §6.104 which authorizes the board to enter into memorandum of understanding with other state agencies.

§354.4.Memorandum of Understanding Between Texas Water Development Board and The Office of Rural Community Affairs.

(a) Recitals.

(1) Pursuant to the 1995 Appropriations Act of the Texas Legislature, and continued in the 1997 and 1999 Appropriations Act of the Texas Legislature, the Texas Water Development Board (TWDB) and the Texas Department of Housing and Community Affairs (TDHCA) were required to develop a Memorandum of Understanding (Memorandum) to detail the responsibility of each agency regarding the coordination of funds of the Economically Distressed Areas Program (EDAP), administered by the TWDB, and the Colonia Fund of the Community Development Block Grant Program, administered by the TDHCA, so as to maximize delivery of the funds and minimize administrative delay in their expenditure. The TWDB and the TDHCA executed a Memorandum and performed pursuant to the terms of that Memorandum.

(2) Pursuant to the 2001 General Appropriations Act of the 77th Texas Legislature, the TWDB is required to continue the coordination with the TDHCA that commenced under the Memorandum with TDHCA. Pursuant to House Bill 7 (H.B. 7) of the 77th Texas Legislature, the Office of Rural Community Affairs (ORCA) was created and the functions and obligations of TDHCA related to the Colonia Fund were transferred to ORCA including the requirement to execute a Memorandum of Understanding to detail the responsibility of each agency regarding the coordination of funds out of the EDAP, administered by the TWDB, and the Colonia Fund of the Community Development Block Grant Program, now administered by ORCA.

(b) Parties. This Memorandum is made and entered into between the ORCA, an agency of the State of Texas, and the TWDB, an agency of the State of Texas.

(c) Purpose. The purpose of this Memorandum is to assure that none of the funds appropriated under the Colonia Fund are expended in a manner that aids the proliferation of colonias or are otherwise used in a manner inconsistent with the intent of the EDAP operated by the TWDB, so as to maximize delivery of the funds and minimize administrative delay in their expenditure.

(d) Period of performance. This Memorandum shall begin on December 1, 2002, and shall terminate on August 31, 2003. This Memorandum may be extended for additional period of time to ensure compliance with TDHCA Rider No. 4, the responsibility for which was assigned to ORCA by H.B. 7, and TWDB Rider No. 7 to the General Appropriations Act, 77th Legislature for the 2002-2003 Biennium.

(e) Performance. Each party to this Memorandum shall coordinate with the other in delivering water and sewer service lines, hook-ups, and plumbing improvements to residents of selected colonias in order to connect those residents' housing units to EDAP-funded water and sewer systems.

(1) ORCA responsibilities. The ORCA shall be responsible for the following functions:

(A) develop an application process for projects submitted by eligible units of local government;

(B) assist units of general local government in preparing an application to the Colonia Fund;

(C) determine whether projects meet federal requirements;

(D) select projects to receive funding in conjunction with the TWDB;

(E) make Colonia Fund grant awards for selected projects on an as-needed basis;

(F) prepare and execute contracts with units of general local government (Contractor localities);

(G) provide oversight and guidance to Contractor localities regarding applicable federal and state laws and program regulations (environmental, labor, acquisition of real property, relocation, procurement, financial management, fair housing, equal employment opportunity, etc.);

(H) provide on-site technical assistance if necessary to ensure that funds are efficiently and effectively used to accomplish the activities for which they were intended;

(I)

review, approve, process, and honor valid reimbursement requests from Contractor localities;

(J) monitor each project prior to contract completion to ensure compliance with applicable federal and state laws and program regulations;

(K) consult with the TWDB regarding specific projects on an as-needed basis; and

(L) notify communities on list provided by the TWDB of the availability of funds.

(2) TWDB responsibilities. The TWDB shall be responsible for the following functions:

(A) provide the ORCA with descriptions of and schedules for EDAP-funded projects that need Colonia Fund assistance to provide connections and plumbing improvements at least six (6) weeks before such assistance would be required;

(B) assist eligible units of general local government in preparing an application for assistance through the ORCA's Colonia Fund;

(C) select projects to receive funding in conjunction with the ORCA; and

(D) provide assistance with technical project-related concerns brought forward by Contractor localities or the ORCA during the course of the project.

(f) Limitations. Eligible applicants shall be those counties eligible under both ORCA's Colonia Fund and TWDB's EDAP. Non-entitlement cities located within eligible counties are also eligible applicants. Eligible projects shall be located in unincorporated colonias identified by the TWDB and in eligible cities that annexed the colonia where improvements are to be made within five years after the effective date of the annexation, or are in the process of annexing the colonia where improvements are to be made. Eligibility shall be denied to any project in a county that has not adopted or is not enforcing the Model Subdivision Rules established pursuant to §16.343 of the Texas Water Code.

(g) Reporting requirements. Each party to this Memorandum shall submit, on or before the fifteenth day of the month following the end of the calendar quarter, to the other party a report of its activities and expenditures during the previous calendar quarter. The first such report shall be due January 15, 2003.

(h) Termination. This Memorandum shall terminate upon ten (10) days written notice by either party to the other party in this contract.

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 January 22, 2003.

TRD-200300456

Suzanne Schwartz

General Counsel

Texas Water Development Board

Effective date: February 11, 2003

Proposal publication date: November 29, 2002

For further information, please call: (512) 463-7981


Part 17. TEXAS STATE SOIL AND WATER CONSERVATION BOARD

Chapter 517. FINANCIAL ASSISTANCE

Subchapter B. COST-SHARE ASSISTANCE FOR BRUSH CONTROL

The Texas State Soil and Water Conservation Board (TSSWCB) adopts the repeal of 31 TAC §§517.22-517.30 and simultaneously adopts new 31 TAC §§517.22-517.37 concerning cost-share assistance for brush control. The existing rules are being repealed and new rules adopted due to the magnitude of rule changes resulting from Internal Audit Recommendations and comments received regarding proposed text published in the July 5, 2002 issue of the Texas Register (27 TexReg 5943). These changes are needed to achieve consistency between current policy, state law, the rules, and the State Brush Control Plan. The new §§517.22-517.37 is adopted with changes to the proposed text as published in the December 6, 2002 issue of the Texas Register (27 TexReg 11485).

The TSSWCB received formal written comments from the Foard County Soil and Water Conservation District, Texas Parks and Wildlife Department, Texas Department of Agriculture and Anderson-Houston Soil and Water Conservation District. As a result of the comments received, clarifying changes have been made to §§517.23(5), 517.25(a), 517.24(c) and 517.37(c) of the proposed rule since publication.

The Foard County SWCD opposed a 100% allocation to critical areas. However, §203.155(1) of the Agriculture Code states that cost-sharing is only available for projects that are implemented in critical areas as designated by the TSSWCB. As a result, no changes were made.

The TPWD recommended adding "TPWD will provide technical assistance to the critical area working group in the development and implementation of the brush control plans." to §517.37(c). The TSSWCB concurs with this clarification of the role of the TPWD and added the recommended wording.

The TPWD recommended adding the word "native" to §517.27(c)(5) so that it reads "will allow the revegetation of the area after the brush is removed with native plants that are beneficial to livestock and wildlife". The TSSWCB agrees that revegetation utilizing native plants should be encouraged, but not mandated. As a result, no change was made to §517.27(c)(5).

The TDA recommended clarifying the definition of brush control in §517.23(5) by replacing "brush" with "noxious brush such as mesquite, prickly pear, salt cedar, or other phreatophytes". The TSSWCB concurs with this clarification and added the recommended wording with the following change. "Prickly pear" was replaced with "juniper" in §517.23(5). Relative to juniper, prickly pear is not as significant of a water user and as such is not currently a species targeted for brush control.

The TDA recommended changing §517.25(a) to state, "Prior to designating a critical area, the State Board, in cooperation with affected SWCDs, other agencies, universities, and appropriate local interests, may study the feasibility of utilizing brush control to conserve water." The TSSWCB concurs with this change and added the recommended wording.

The TDA recommended that notice in the Texas Register be required in §517.24(c) regarding the public hearing to consider the Brush Control Plan. The TSSWCB concurs with this change and added the recommended requirement.

The TDA recommended that §517.37(c) be expanded to include notification of working group meetings in the Texas Register and/or to other agricultural interests in the affected area. The TSSWCB concurs that other agricultural interests in the affected area should be provided notification of critical area working group meetings and added this requirement to §517.37(c). The Anderson-Houston SWCD is in concurrence with the Brush Control Rules as amended.

31 TAC §§517.22 - 517.30

The rule is adopted under Chapter 201.020 Agriculture Code which provides the Texas State Soil and Water Conservation Board with the authority to adopt rules as necessary for the performance of its functions under the Agriculture Code.

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 January 24, 2003.

TRD-200300496

James M. Moore

Executive Director

Texas State Soil and Water Conservation Board

Effective date: February 13, 2003

Proposal publication date: December 6, 2002

For further information, please call: (254) 773-2250


31 TAC §§517.22 - 517.37

The rule is adopted under Chapter 201.020 Agriculture Code which provides the Texas State Soil and Water Conservation Board with the authority to adopt rules as necessary for the performance of its functions under the Agriculture Code.

§517.22.Purpose.

The purpose of this program is to provide the needed incentive to landowners or operators for the implementation of brush control consistent with the purpose of conserving water.

§517.23.Definitions.

For the purposes of these rules the following definitions shall apply.

(1) Allocated funds--Funds budgeted through the State Board to a critical area for cost-share assistance.

(2) Applicant--An eligible person who applies for cost-share assistance.

(3) Available funds--Allocated funds that have not been obligated.

(4) Average costs--The constructed cost, which is based on actual costs and current cost estimates, considered necessary to carry out a conservation practice.

(5) Brush control--The selective control, removal, or reduction of noxious brush such as mesquite, juniper, salt cedar, or other phreatophytes that, as determined by the State Board, consumes water to a degree that is detrimental to water conservation; and the revegetation of land on which this brush has been controlled.

(6) Brush control contract--A legally binding 10-year agreement between the applicant, Soil and Water Conservation District, and Texas State Soil and Water Conservation Board whereby the applicant agrees to implement all brush control practice(s) for which cost-share is to be provided in accordance with standards established by the Texas State Soil and Water Conservation Board. Only practice(s) that the Texas State Soil and Water Conservation Board has approved and are included in an approved brush control plan are eligible for inclusion in the brush control contract.

(7) Brush control plan--A site-specific plan for implementation of brush control, sound range management practices, and other soil and water conservation land improvement measures. It includes a record of the eligible person's decisions made during planning and the resource information needed for implementation and maintenance of the plan that has been reviewed and approved by the Soil and Water Conservation District.

(8) Cost-share assistance--An award of money made to an eligible person for brush control pursuant to the purpose(s) for which the funds were appropriated.

(9) Cost-share rate--The percent of the cost of brush control to be awarded an eligible person based on actual cost not to exceed average cost.

(10) Critical area--An area of critical need designated by the Texas State Soil and Water Conservation Board in the State Brush Control Plan according to the criteria established in §517.25.

(11) Critical area working group--The working group established in each critical area to carry out the roles and responsibilities listed in §517.28(c). Membership is made up of Soil and Water Conservation District directors from each Soil and Water Conservation District in a critical area.

(12) Eligible land--Those lands within a designated critical area that are eligible for application of brush control using cost-share assistance.

(13) Eligible person--Any individual, partnership, administrator for a trust or estate, family-owned corporation, or other legal entity who as an owner, lessee, tenant, or sharecropper participates in an agricultural or wildlife operation within a critical area and is a cooperator with the local Soil and Water Conservation District shall be eligible for cost-share assistance

(14) Field Office Technical Guide, herein referred to as FOTG--The official Natural Resources Conservation Service guidelines criteria, and standards for planning and applying conservation practices, management measures, and works of improvement that have the purpose of solving or reducing the severity of natural resource use problems or taking advantage of resource opportunities.

(15) Natural Resources Conservation Service, herein referred to as NRCS--An agency of the United States Department of Agriculture.

(16) Operator--Any person(s), firm or corporation with a contractual arrangement with the owner of the land that grants operational control of an agricultural enterprise.

(17) Obligated funds--Monies from a critical area's allocated funds that have been committed to an applicant after final approval of the brush control contract by the Soil and Water Conservation District and Texas State Soil and Water Conservation Board.

(18) Performance agreement--A component of the brush control contract whereby the eligible person receiving the benefit of cost-share assistance provides written agreement to the Soil and Water Conservation District to perform brush control in accordance with standards established by the Texas State Soil and Water Conservation Board and the terms of the brush control contract.

(19) Priority system--The system devised collectively by the critical area working group, under guidelines of the State Board, for ranking brush control applications and for facilitating the disbursement of allocated funds in line with the critical area's priorities.

(20) Program year--The period from September 1 through August 31.

(21) Soil and Water Conservation District, herein referred to as SWCD--A government subdivision of this state and a public body corporate and politic, organized pursuant to the Agriculture Code of Texas, Chapter 201.

(22) State Board--The Texas State Soil and Water Conservation Board organized pursuant to the provisions of the Agriculture Code of Texas, Chapter 201.

(23) Texas Parks and Wildlife Department, herein referred to as TPWD--The government agency of this state organized pursuant to the Parks and Wildlife Code of Texas, Title 2, Chapter 11.

(24) Water Conservation--The process of reducing water consumption and/or preventing future increases in water consumption. As related to the Brush Control Program, the process of reducing water consuming brush and subsequently, the enhancement of available water resources.

§517.24.State Brush Control Plan

(a) The State Board shall prepare and adopt a state brush control plan. The State Board shall review and may amend the plan at least every two years to take into consideration changed conditions.

(b) The State Brush Control Plan shall:

(1) include a comprehensive strategy for managing brush in areas of the state where brush is contributing to a substantial water conservation problem and

(2) designate areas of critical need in the state in which to implement the brush control program considering the criteria established in §517.25.

(c) Before the State Board adopts the plan, the State Board shall call and hold a public hearing to consider a proposed plan.

(1) In addition to providing notice in the Texas Register, the State Board shall mail written notice of the hearing to each SWCD in the state not less than 30 days before the date the hearing is to be held. The notice must include the date and place for holding the hearing and must state the purpose for holding the hearing.

(2) At the hearing, representatives of a SWCD and any other person may appear and present testimony including information and suggestions for any changes in the proposed plan.

(3) After the conclusion of the hearing, the State Board shall consider the testimony including the information and suggestions made at the hearing and, after making any changes in the proposed plan that it finds necessary, the State Board shall adopt the plan.

§517.25.Designation of Critical Areas

(a) Prior to designating a critical area, the State Board, in cooperation with affected SWCDs, other agencies, universities, and appropriate local interests, may study the feasibility of utilizing brush control to conserve water.

(b) Feasibility Studies.

(1) Feasibility studies shall, where appropriate, evaluate brush type, density, and location; management methods; revegetation options; geology and soils data; water needs or potential needs; hydrology; potential water yield; wildlife concerns; economics; and landowner interest. The TPWD shall be consulted when evaluating wildlife concerns.

(2) Feasibility studies shall be conducted in watersheds in the general brush control area as identified in the State Brush Control Plan or where designated by the State Board.

(3) Specific watersheds for studies will be determined by the State Board in consultation with SWCDs, other agencies, and universities. SWCDs may submit written requests to the State Board for feasibility studies.

(4) The State Board shall consider water needs of the area and potential for water yield when selecting watersheds for study.

(c) In designating critical areas, the State Board shall consider:

(1) the location of various brush infestations;

(2) the type and severity of various brush infestations;

(3) the various management methods that may be used to control brush;

(4) the severity of water conservation needs;

(5) the cost effectiveness of utilizing brush control to conserve water;

(6) the potential water quality impacts;

(7) the availability of funding; and

(8) any other criteria that the State Board considers relevant to assure that the brush control program can be most effectively, efficiently, and economically implemented.

(d) In designating critical areas, the State Board shall give priority to areas with the most critical water conservation needs and in which brush control and revegetation projects will be most likely to produce substantial water conservation.

(e) Request for designation as a critical area. SWCDs may submit written requests to the State Board for designation of areas for which the feasibility of brush control has been determined.

§517.26.Administration of Funds.

(a) Project Development.

(1) SWCDs or other agencies in cooperation with SWCDs may develop project proposals within critical areas in accordance with criteria established in the State Brush Control Plan.

(2) Project proposals shall be submitted to the State Board for its prioritization and approval.

(3) The State Board may initiate project development in cooperation with SWCDs.

(b) Priority of Projects.

(1) When prioritizing and approving projects, the State Board shall consider criteria established in the State Brush Control Plan.

(2) If the demand for funds under the cost-sharing program is greater than funds available, the State Board may establish priorities favoring the areas with the most critical water conservation needs and projects that will be most likely to produce substantial water conservation.

(3) The State Board shall give more favorable consideration to a particular project if the participants agree to a lesser cost-share rate than that established by the State Board.

(4) The amount of land dedicated to the project that will produce significant water conservation from the control of brush is a priority.

(c) Allocation of funds. The State Board may allocate funds only for projects in critical areas as designated by the State Board. Such allocations may be adjusted throughout the year as available funds and critical area needs and priorities change in order to achieve the most efficient use of state funds.

(d) Requests for allocations. Critical area working groups may submit written requests for cost-share allocations to the State Board.

(e) Approval of allocations. The State Board shall consider and approve, reject, or adjust allocations giving consideration to relative need for funding, workload and fund balances, as well as other information deemed necessary by the State Board.

§517.27.Approval of Brush Control Methods

(a) Cost sharing is available only for projects that use a method of brush control approved by the State Board.

(b) The State Board, in consultation with SWCDs, shall study and must approve all methods used to control brush considering the overall impact the project will have within critical areas.

(c) The State Board may approve a method for cost-sharing if the State Board finds that the proposed method:

(1) has proven to be an effective and efficient method for controlling brush;

(2) is cost efficient;

(3) will have a beneficial impact on wildlife habitat;

(4) will conserve topsoil to prevent erosion or silting of any river or stream; and/or

(5) will allow the revegetation of the area after the brush is removed with plants that are beneficial to livestock and wildlife.

(d) Approved methods shall be designated in program guidance established by the State Board.

(e) Request for approval of brush control methods. Critical area working groups, as established by §517.28(b), may submit written requests to the State Board for approval of brush control methods for a critical area.

§517.28.Powers and Duties of SWCDs

(a) The State Board has delegated the responsibilities in this section to the SWCDs in which all or part of a critical area is located.

(b) Establishment and composition of critical area working group.

(1) In each critical area designated by the State Board, a critical area working group shall be established, composed of SWCD directors from each SWCD in which all or part of the critical area is located.

(2) The State Board shall serve as the facilitator for the critical area working group.

(3) Agencies, universities, landowners and appropriate local interests may serve in an advisory capacity to the critical area working group, but shall not have voting privileges.

(4) The critical area working group shall hold an organizational meeting to:

(A) establish final membership

(i) SWCDs may elect to not participate by providing written notification of their decision.

(ii) In establishing the membership, each participating SWCD shall have one vote.

(iii) As approved by participating SWCDs within a critical area, SWCDs may be allowed to have more than one SWCD director serve on the critical area working group.

(iv) Once final membership is established, each member shall have one vote only.

(B) establish operating procedures

(i) The critical area working group shall elect a chairman.

(ii) The critical area working group shall establish the quorum necessary for decision-making. Only those members present shall be eligible to vote. Voting by proxy shall not be allowed.

iii The critical area working group may establish attendance requirements and other necessary procedures.

(c) The critical area working group shall:

(1) designate, from the State Board approved list, those brush control methods that will be eligible for cost-share in the critical areas;

(2) establish maximum cost-share rates for critical area not to exceed maximums set by the State Board in §517.29(d);

(3) develop average cost annually for each practice on the critical area's approved practice list not to exceed costs established by the State Board;

(4) establish annually the maximum amount of cost-share available to each applicant not to exceed the maximum set by the State Board;

(5) administer the cost-share program within the funds allocated by the State Board;

(6) establish, under guidelines of the State Board, the priority system to be used for evaluation of applications;

(7) establish the period(s) of time for accepting applications;

(8) announce the cost-share program within the critical area;

(9) establish the minimum amount of brush acreage that must be enrolled within sub-basins of the critical area in order to qualify for funding;

(10) prioritize applications under the working group approved priority system for the critical area; and

(11) submit meeting minutes, membership, and established operating procedures to the State Board.

(d) Each SWCD within a critical area shall:

(1) accept and process cost-share applications;

(2) keep accurate records and logs of applications;

(3) determine eligibility for cost-share assistance according to the criteria listed in §517.30. If an applicant's land is in more than one SWCD, the respective SWCDs will review the application and agree to oversee all works and administrate all contracts from one SWCD or prorate between the SWCDs;

(4) provide or arrange for technical assistance for eligible applicants according to priority established by the critical area working group;

(5) examine brush control plans and contracts to assure inclusion of all necessary information and exhibits and that the criteria established in §517.33 are met;

(6) prepare comments and recommendations relating to the brush control plan and contract for submittal to the State Board;

(7) approve brush control plans and contracts that meet FOTG requirements on management units included in the brush control plan;

(8) forward SWCD approved brush control plans and contracts to the State Board for quality control and execution of contract;

(9) once approved by the State Board, notify the applicant that his/her contract has been approved for cost-share and to proceed with implementation as outlined in the applicant's brush control plan;

(10) file a copy of the approved contract;

(11) certify to the State Board that conservation land treatment measures have been completed according to standards and specifications prior to payment;

(12) submit required reports to the State Board; and

(13) as directed by the State Board, manage any problem that arises under a cost-sharing contract for brush control in that SWCD and report to the State Board.

§517.29.Cost-share for Brush Control

(a) Basis for cost-share. Cost-share shall be based on actual cost not to exceed average cost.

(b) Average costs.

(1) The State Board, in consultation with SWCDs in which all or part of the critical area is located, shall establish average costs for each practice approved for the critical area considering the results of the feasibility studies.

(2) The critical area working group shall develop average costs annually for each practice on the critical area's approved practice list not to exceed the average costs established by the State Board.

(3) The critical area working group may submit a written request to the State Board to increase the average costs established for each practice.

(c) Maximum cost-share amount available.

(1) The maximum cost-share assistance that an eligible person may receive under the program in any one year, and the lifetime maximum cost-share assistance that an eligible person may receive is unrestricted by the State Board.

(2) The critical area working group may establish the maximum cost-share assistance that an eligible person may receive under the program in any one year, and the lifetime maximum cost-share assistance that an eligible person may receive.

(d) Cost-share rates. The State Board shall establish, in program guidance, the cost-share rate for each practice approved for the critical area considering the results of the feasibility studies. The total cost-share shall not exceed 80%. The critical area working group shall establish cost-share rates, not to exceed those established by the State Board.

§517.30.Eligibility for cost-share assistance.

(a) Eligible person. Any individual, partnership, administrator for a trust or estate, family-owned corporation, or other legal entity who as an owner, lessee, tenant, or sharecropper participates in an agricultural or wildlife operation within a critical area and is a cooperator with the local SWCD shall be eligible for cost-share assistance.

(b) Ineligible person.

(1) A person is not eligible to participate in the state brush control program or to receive money from the state brush control program if the person is simultaneously receiving any cost-share money for brush control on the same acreage from a federal government program.

(2) The State Board may grant an exception if the State Board finds that joint participation of the state brush control program and any federal brush control program will enhance the efficiency and effectiveness of a project and lessen the state's financial commitment to the project.

(c) Eligible land. To be eligible for cost-share assistance, the land must be within a designated critical area and fall into any of the following categories:

(1) land within the state that is privately owned by an eligible person;

(2) land leased by an eligible person over which the applicant has adequate control extending through the term of the contract period and written permission of the landowner; or

(3) land owned by the state, a political subdivision of the state, or a nonprofit organization that holds land in trust for the state.

(d) Ineligible lands. Allocated funds shall not be used on land outside of a designated critical area or land not used for agricultural or wildlife production.

(e) Eligible purposes. Cost-share assistance shall be available only for brush control included in an approved brush control plan and contract and determined to be needed by SWCDs to conserve water.

(f) Eligible practices. Brush control methods, which the State Board has approved and which are included in the applicant's approved brush control plan and contract, shall be eligible for cost-share assistance. The critical area working group shall designate their list of eligible methods from those approved by the State Board.

(g) Requirement to file an application. In order to qualify for cost-share assistance, an eligible person shall file an application with the local SWCD.

(h) Requirement to develop a brush control plan. In order to qualify for cost-share assistance, an eligible person shall develop a brush control plan. Brush control plans shall meet resource management system requirements on acres planned, as set forth in the FOTG.

(i) Persons authorized to sign applications and contracts. All applications, contracts, and performance certifications shall be signed by:

(1) the eligible person;

(2) any person designated to represent the eligible person, provided an appropriate notarized durable power of attorney has been filed with the SWCD office; or

(3) the responsible person or administrator, in cases of trusts or estates, provided that letters of administration or letters of testamentary have been submitted to the SWCD in lieu of a power of attorney.

§517.31.Responsibility of applicants.

(a) Applicants shall complete and submit an application;

(b) Applicants shall complete a SWCD cooperative agreement if the applicant is not already a SWCD cooperator;

(c) Where an applicant does not have an approved brush control plan and has not determined the anticipated total cost of the proposed measure(s), he/she shall obtain a brush control plan approved by the local SWCD;

(d) Applicants shall complete, sign, and submit a cost-share contract based on the approved brush control plan to the SWCD along with any amendments to the contract;

(e) After being notified of approval, applicants may request technical assistance through the SWCD to design and lay out the approved brush control or request approval of alternate sources of technical assistance;

(f) Applicants shall perform the approved brush control or secure any approved contractor(s) needed and all contractual or other agreements necessary to perform the approved brush control. Cost-share will not be allowed for work begun before the application is approved; and

(g) Applicants shall supply the documents necessary to verify completion of the approved brush control along with copies of receipts for work to be cost-shared.

§517.32.Applications for cost-share.

(a) A person who desires to participate with the state in a brush control project and to obtain cost-sharing participation by the state shall file an application with the SWCD in the SWCD in which the land on which the project is to be accomplished is located.

(b) Applications held in abeyance because of lack of funds. In those cases where funds are not available, the applications will be held by the SWCD until allocated funds become available or until the end of the program year. The SWCD may shift all unfunded applications held in abeyance because of lack of funds that are on hand at the end of a program to the new program year or require all new applications, as it deems appropriate.

(c) Applications denied for reasons other than lack of funds. Applications for funds, which are denied by the SWCD directors for other than lack of funds, shall be retained in the records of the SWCD in accordance with the SWCD's established record retention policy. Written notification of the denial shall be provided to the applicant along with the reason(s) that the application was denied.

(d) Applications withdrawn. An application may be withdrawn by the applicant at any time prior to receipt of cost-share assistance by notifying the SWCD in writing that withdrawal is desired. Applications withdrawn by the applicant shall be retained in the records of the SWCD in accordance with the SWCD's established record retention policy.

§517.33.Contracts for cost-share.

(a) According to the priority of an application, the SWCD shall negotiate a ten-year brush control contract with the successful applicant in the critical area subject to:

(1) Guidelines established by the State Board.

(2) Development of a brush control plan. As a condition for receipt of cost-share assistance for brush control, the eligible person receiving the benefit of such assistance shall agree to develop a brush control plan.

(3) Signature of a performance agreement. As a condition for receipt of cost-share assistance for brush control, the eligible person receiving the benefit of such assistance shall agree to perform the brush control in accordance with standards established by the State Board and the terms of the cost-share agreement. Completion of the performance agreement and the signature of the eligible person are required prior to payment.

(4) Management of treated areas.

(A) Requirements for follow-up brush control will be included in the cost-share contract with management recommendations outlined in the eligible person's brush control plan. These will be reviewed with the eligible person prior to signature and initiation of the cost-share contract. Requirements for follow-up brush control are subject to funding availability.

(B) The SWCD may require refund of any or all of the cost-share paid to an eligible person when acres where brush control was applied has not been managed in compliance with applicable standards and specifications for the practice in accordance with the terms of the cost-share contract as agreed to by the eligible person.

(C) In cases of hardship, death of the participant, or at the time of transfer of ownership of land where brush control has been applied using cost-share assistance and the term of the contract has not expired, the participant, heir(s), or buyer(s) respectively, must agree to properly manage the treated area or the participant, heir(s) or the buyer by agreement with seller must refund all or a portion of the cost-share funds received for the practice as determined by the SWCD. The State Board, on a case-by-case basis in consultation with the SWCD, may grant a waiver to this requirement.

(b) Criteria to consider. In approving a contract for cost sharing, the SWCD, in accordance with criteria established by the critical area working group, shall consider:

(1) whether the brush control is to be carried out in a critical area;

(2) the method of control that is to be used by the applicant;

(3) the plans for revegetation;

(4) the total cost of the brush control;

(5) the amount of land to be included;

(6) whether the applicant is financially able to provide his share of the money for the brush control;

(7) the cost-share percentage, if an applicant agrees to a higher degree of financial commitment;

(8) any comments and recommendations of the TPWD; and

(9) any other pertinent information considered necessary by the SWCD.

(c) Approval of contracts. The SWCD may approve a contract if, after considering the factors listed in §517.33(c) and any other relevant factors, the SWCD finds:

(1) the owner of the land fully agrees to cooperate in the project;

(2) the method of control is a method approved by the critical area working group; and

(3) the brush control is to be carried out in a critical area designated under the State Brush Control Plan.

(d) On completion of the negotiations by the SWCD, it shall submit the proposed contract to the State Board for execution.

(e) The State Board shall examine the contract and if the State Board finds that the contract meets all the conditions established in this section and the guidelines, it shall execute the contract and provide to the individual on completion of the project the money that constitutes the state's share of the project.

(f) Amending contracts.

(1) In the event that an adjustment to the estimated cost of brush control is necessitated by the final design, the applicant shall either agree to assume the additional cost or complete and submit an amendment to his/her contract for cost-share to the SWCD for approval or denial by the SWCD.

(2) The amount of funds obligated for brush control may be adjusted, provided funds are available and the adjustment is considered a priority according to the critical area working group priority system.

(3) In the event additional funds are not available, the brush control may be redesigned, if possible, to a level commensurate with available funds, provided the redesign still meets standards established by the State Board; or the applicant can agree to assume full financial responsibility for the portion of the cost of brush control in excess of the amount authorized.

§517.34.Payment to recipients.

(a) The SWCD shall determine eligibility of the applicant to receive payment of cost-share assistance, and provide certification to the State Board that measure(s) have been installed consistent with the FOTG.

(b) The State Board shall cause payment for cost-share assistance to be issued to the applicant.

(c) Partial payment can be requested for brush control methods completed on identifiable land units as they are completed, provided required management can be applied.

(d) State money may not be provided in advance for work remaining to be done.

§517.35.Determining status of brush control during transfer of land ownership.

(a) A seller of agricultural land with respect to which a performance agreement is in effect may request the SWCD to inspect the practice. If the practice has been properly managed the SWCD shall issue a written statement that the seller has satisfactorily managed the treated area as of the date of the statement.

(b) The buyer of lands covered by a performance agreement may also request that the SWCD inspect the lands to determine whether the treated area has been properly managed as of the date of the inspection. If so, the SWCD will provide the buyer with a statement specifying the extent of compliance or noncompliance as of the date of the statement.

(c) The seller and the buyer, if known, shall be given notice of the time of inspection so that they may be present during the inspection to express their views as to compliance.

§517.36.Reporting and accounting.

The State Board shall receive and maintain required reports showing the unobligated balance of funds for each critical area as shown on each ledger at the close of the last day of each month.

§517.37.Consultation with the TPWD.

(a) The State Board shall consult the TPWD in regard to the effects of the brush control program on fish and wildlife.

(b) When assessing the feasibility of brush control in a watershed, the TPWD shall be consulted concerning the effects of brush control on fish and wildlife and shall be provided with an opportunity to review and comment on feasibility studies.

(c) The TPWD and other agricultural interests in the affected area shall be notified of all critical area working group meetings. The TPWD will provide technical assistance to the critical area working group in the development and implementation of the brush control plans.

(d) Comments and recommendations from the TPWD shall be considered when passing on applications for cost-share.

(e) Applicants shall be notified that the TPWD provides free technical guidance to landowners regarding the management of wildlife resources and habitats on their lands.

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 January 24, 2003.

TRD-200300498

James M. Moore

Executive Director

Texas State Soil and Water Conservation Board

Effective date: February 13, 2003

Proposal publication date: December 6, 2002

For further information, please call: (254) 773-2250


Chapter 523. AGRICULTURAL AND SILVICULTURAL WATER QUALITY MANAGEMENT

31 TAC §523.8

The Texas State Soil and Water Conservation Board (TSSWCB) adopts new §523.8, establishing a comprehensive nutrient management planning program for owners and operators of animal feeding operations in the North Bosque River watershed. The development of the program is in response to agency responsibilities resulting from the approval of the Implementation Plan for the North Bosque River Total Maximum Daily Loads (TMDLs) for Phosphorus. The new §523.8 is adopted with changes to the proposed text as published in the December 6, 2002 issue of the Texas Register (27 TexReg 11493).

The TSSWCB received no formal written comments. However, the following two clarifying changes have been made to the proposed rule since publication.

As proposed, §523.8(i) stated that the TSSWCB would maintain a list of watersheds that the TSSWCB had determined were characterized by intensive animal agriculture. Section 523.8(c) then stated that the CNMP program would be applicable for any animal feeding operation located within the geographic boundaries of a watershed that the TSSWCB determined was characterized by intensive animal agriculture. Because the proposed rule is only in response to agency responsibilities resulting from the approval of the implementation plan for the TMDLs for phosphorus in the North Bosque River watershed, and there is currently no foreseeable similar TMDL situation developing for other watersheds, it is not necessary to provide for such flexibility in the rule. This modification will clarify the TSSWCB's intent that the program only be applicable in the North Bosque River watershed. The removal of this mechanism for determining applicability clarifies the TSSWCB's intent that the program only be applicable in the North Bosque River watershed. This modification resulted in the addition of the text "in the North Bosque River watershed" to the rule's title, §523.8(a), and §523.8(c). A definition for "North Bosque River watershed" was added to §523.8(b). Alphabetically placed, the new definition is located at §523.8(b)(5), which caused a cascading increase to the placement of the remaining definitions in §523.8(b). The modification also required the removal of text relating to "watersheds characterized by intensive animal agriculture" from §523.8(b), §523.8(c). In the rule as proposed, §523.8(i) dealt exclusively with "watersheds characterized by intensive animal agriculture." The removal of this section caused a change in the placement of the remaining two sections regarding the requirement for an implementation schedule and the applicability of state water quality standards. The subsequent numbering change, resulting in the section regarding the requirement for an implementation schedule being located at §523.8(i), caused a reference to the implementation plan in §523.8(f)(1)(B) and §523.8(f)(2) to be changed from §523.8(k) to §523.8(i).

The second clarifying revision is located in §523.8(d), regarding the process for obtaining a CNMP. The text "or component parts of CNMPs" is added to clarify that it is likely several different specialists will be required to develop the different components of a CNMP.

The rule is adopted under Chapter 201.020 Agriculture Code which provides the Texas State Soil and Water Conservation Board with the authority to adopt rules as necessary for the performance of its functions under the Agriculture Code.

§523.8.Comprehensive Nutrient Management Planning in the North Bosque River Watershed.

(a) Policy Statement. In accordance with §519.1 of this title (relating to Technical Assistance Program) and the policy of the State Soil and Water Conservation Board to develop and implement a program to provide technical assistance for the development and implementation of soil and water conservation plans and soil and water conservation measures, §523.8 of this title (related to comprehensive nutrient management planning in the North Bosque River watershed) is adopted.

(b) Definitions. The following words and terms, when used in §523.8, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Animal feeding operation--A lot or facility (other than an aquatic animal production facility) where animals have been, are, or will be stabled or confined and fed or maintained for a total of 45 days or more in any 12-month period, and the animal confinement areas do not sustain crops, vegetation, forage growth, or postharvest residues in the normal growing season.

(2) Comprehensive nutrient management plan, herein referred to as CNMP,--a resource management plan containing a grouping of conservation practices and management activities which, when combined into a conservation system, will help ensure that both agricultural production goals and natural resource concerns dealing with nutrient and organic by-products and their adverse impacts on water quality are achieved. A CNMP incorporates practices to utilize animal manure and organic by-products as a beneficial resource. To be certified, a CNMP must cover all lands that constitute the conservation management unit.

(3) Conservation management unit--for the purposes of this section and regarding comprehensive nutrient management planning, a conservation management unit includes the production area and land application activities which are onsite or are contiguous to the site.

(4) Environmental stewardship programs for owners and/or operators of animal feeding operations--any program, administered by a governmental or non-governmental entity, which provides the owner or operator of an animal feeding operation with a mechanism for improving the overall efficiency of the operation, operating in accordance with all applicable state or federal laws pertaining to water quality, and furthers the effective conservation of the state's soil and water resources.

(5) North Bosque River watershed--the geographic area consisting of all the drainage area for the two designated water quality segments as defined in the two adopted Total Maximum Daily Loads for Phosphorus in the North Bosque River. The two designated water quality segments are segment 1226, the North Bosque River, extending from a point 100 meters upstream of FM Road 185 in McLennan County to a point immediately upstream of the confluence of Indian Creek in Erath County, and segment 1255, the Upper North Bosque River, extending from a point immediately upstream of the confluence of Indian Creek in Erath County to the confluence of the North Fork and South Fork of the North Bosque River in Erath County.

(6) Natural Resources Conservation Service, herein referred to as NRCS,--An agency of the United States Department of Agriculture which includes the agency formerly known as the Soil Conservation Service (SCS).

(7) NRCS - Field Office Technical Guide, herein referred to as NRCS - FOTG,--The official NRCS guidelines, criteria, and standards for planning and applying conservation treatments.

(8) NRCS Technical Service Provider Process--The process by which a technical service provider obtains certification by NRCS to provide technical services including conservation planning, and/or the design, layout, and installation of approved conservation practices.

(9) Resource management plan--a site specific blueprint for implementation of soil and water conservation land improvement measures. It includes a record of the eligible person's decisions made during planning and the resource information needed for implementation and maintenance of the plan that has been reviewed and approved by the SWCD.

(10) Resource management system--a combination of conservation practices and resource management activities for the treatment of all identified resource concerns for soil, water, air, plants, animals, and humans that meets or exceeds the quality criteria in the Natural Resource Conservation Service's Field Office Technical Guide for resource sustainability.

(11) Soil and water conservation district, herein referred to as SWCD,--A government subdivision of this state and a public body corporate and politic, organized pursuant to Chapter 201 of the Agriculture Code of Texas.

(12) State Board--The State Soil and Water Conservation Board created under the Agriculture Code of Texas, Chapter 201.

(13) Technical service provider--an individual, entity, or public agency certified by the NRCS State Conservationist and placed on an approved list to provide technical services.

(14) Texas Commission on Environmental Quality--the state agency created under Title 2, Subtitle A, Chapter 5 of the Texas Water Code (formerly the Texas Natural Resource Conservation Commission).

(c) Applicability. Any owner or operator of an animal feeding operation that meets the following criteria may submit a CNMP to the State Board for certification in accordance with §523.8(f) of this title. Owners or operators of an animal feeding operation within the North Bosque River watershed, or owners or operators of an animal feeding operation that has enrolled in any agricultural environmental stewardship program whose administrators have a current memorandum of agreement with the State Board regarding a State Board certification of a CNMP as programmatic requirement.

(d) Process for obtaining a CNMP. It is the intent of the State Board that all CNMPs be developed by technical service providers certified by NRCS to develop CNMPs or component parts of CNMPs. Owners and operators whose CNMP is developed by persons not certified to develop CNMPs through NRCS' Technical Service Provider process must submit their CNMP to the local NRCS Field Office for approval. Owners and operators of animal feeding operations who meet the applicability criteria set forth in §523.8(c) and intend to submit a completely developed CNMP to the State Board for certification shall:

(1) be a SWCD cooperator.

(2) declare to the SWCD their intent to submit a CNMP for State Board certification.

(3) request to view a list of certified technical service providers who have been certified by the NRCS to develop CNMPs from their local SWCD and/or NRCS Field Office. Owners and operators whose CNMP is developed by persons not certified to develop CNMPs through NRCS' Technical Service Provider process must submit their CNMP to the local NRCS Field Office for approval.

(4) inform the SWCD that they intend to apply for cost-share assistance, if applicable. All cost-share assistance toward the development of a resource management plan and toward the implementation of land treatment measures contained within the resource management plan, shall be in accordance with §523.6 of this title (relating to Cost-Share Assistance for Soil and Water Conservation Land Improvement Measures).

(e) Cost-share. In accordance with §523.6 of this title, the State Board may allocate funds to a SWCD for cost-share assistance to landowners toward the implementation of land improvement measures consistent with the purpose of controlling erosion, conserving water, and/or protecting water quality. All cost-share assistance toward the development of a resource management plan and toward the implementation of land treatment measures contained within the resource management plan, shall be in accordance with §523.6 of this title.

(f) Certification.

(1) When the following conditions are met the State Board may certify that a CNMP satisfies the State Board's technical criteria and programmatic guidance for comprehensive nutrient management planning with the State's requirements for water quality:

(A) The owner or operator of the animal feeding operation concurs and understands that the conservation practices and implementation schedules contained within the CNMP, when applied and maintained to form a resource management system will meet the State's requirements for water quality; the owner or operator of the animal feeding operation agrees to notify the local SWCD in the event of deviation from the implementation schedule; and the owner or operator of the animal feeding operation agrees that any substitution or changes to the conservation practices or schedules must be in accordance with the NRCS - FOTG, the State Board's Technical Criteria and Programmatic Guidance for Comprehensive Nutrient Management Planning, and the rules and regulations of the State.

(B) The CNMP is in accordance with the Technical Criteria and Programmatic Guidance for Comprehensive Nutrient Management Planning adopted by the State Board and contains an implementation schedule pursuant to §523.8(i) of this title.

(C) The owner or operator of the animal feeding operation meets the requirements of §523.8(c) of this title (related to applicability).

(D) The SWCD has approved the CNMP as including the entire conservation management unit.

(E) The CNMP was developed by a technical service provider certified by the NRCS to develop CNMPs or the NRCS Field Office has approved the CNMP as meeting the requirements of the NRCS - FOTG for a Resource Management System.

(2) Withdrawal of certification. The State Board may withdraw certification of any CNMP which, in consultation with the SWCD, has been demonstrated to be deficient in one or more of the conditions established under §523.8(f)(1) or if the holder of the CNMP fails to implement the CNMP in accordance with §523.8(i).

(g) Technical Criteria and Programmatic Guidance for Comprehensive Nutrient Management Planning. The technical criteria and specific practice standards considered as components of comprehensive nutrient management planning are based on the criteria in the NRCS - FOTG; however, modification of those practice standards to ensure consistency with state water quality standards, state water quality laws regarding animal feeding operations, and the state agricultural and silvicultural nonpoint source management program will be made by the State Board as necessary. The State Board will adopt and maintain Technical Criteria and Programmatic Guidance for Comprehensive Nutrient Management Planning to ensure consistency with state water quality standards, state water quality laws regarding animal feeding operations, and the state agricultural and silvicultural nonpoint source management program.

(h) Environmental Stewardship Programs for Owners and/or Operators of Animal Feeding Operations. The State Board may enter into agreements with entities administering programs who request that participants of such programs receive certification in accordance with §523.8(f) of this title as a programmatic requirement if the State Board determines that the program is consistent with the state agricultural and silvicultural nonpoint source management program and all other State Board policies.

(i) Implementation schedule. A CNMP must contain an implementation schedule.

(1) The implementation schedule will, as far as is practicable, balance the state's need for protecting water quality with the need of agricultural producers to have sufficient time to implement practices in an economically feasible manner.

(2) Highest priority will be given to the implementation of the most cost effective and most needed pollution abatement practices.

(3) The State Board in consultation with the local SWCDs will conduct an annual status review of plan implementation.

(4) The State Board in consultation with the local SWCDs may withdraw certification of a CNMP that is not being implemented in accordance with its schedule. Prior to certification being withdrawn, a landowner will be notified and be given a reasonable period of time to implement the CNMP according to the schedule or a modified schedule approved by the SWCD.

(5) The holder of a certified CNMP shall notify the local SWCD in the event he or she deviates from the implementation schedule.

(j) Applicability of state water quality standards. To the extent allowed by available technology, CNMP development, approval and certification will be based on state water quality standards as established by the Texas Commission on Environmental Quality.

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 January 24, 2003.

TRD-200300497

James M. Moore

Executive Director

Texas State Soil and Water Conservation Board

Effective date: February 13, 2003

Proposal publication date: December 6, 2002

For further information, please call: (254) 773-2250