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) proposes amendments to 31 TAC Chapter 363, concerning the State Participation Program. Proposed 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 proposed amendment to §363.1002 provides a definition of new water supply projects that identifies proposed projects which will create new, usable supplies of water. Proposed amendments to §363.1003 create two new paragraphs. Proposed new paragraph (1) authorizes the board to financially participate in up to 80% of the costs of a new water supply project. Proposed 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. Proposed amendments to §363.1006 will amend the dates for application submission, for application rating, and for board consideration. Section 363.1007 is proposed for amendment to add a new rating criterion such that new water supply projects are entitled to receive 2 rating points.

Melanie Callahan, Director of Fiscal Services, has determined that for the first five-year period these changes are in effect there will be no fiscal implications to state or local government as a result of enforcement and administration of the sections.

Ms. Callahan has also determined that for the first five years the changes as proposed are in effect the public benefit anticipated as a result of implementing the amended sections will be to provide an incentive for the construction of projects that will provide new sources of water for the burgeoning population of the state while continuing the state's historic role in participating in projects to increase their cost efficiency. Ms. Callahan has further determined there will be no increased economic cost to small businesses or individuals required to comply with the sections as proposed because the provisions apply only to political subdivisions applying for board assistance.

It is estimated that the rule amendments will not adversely affect local economies because the proposed changes relate only to the level of financial participation of the state in local projects. Indeed, by the state financially contributing to these projects, the local economies should be positively affected.

Comments on the proposed amendments will be accepted for 30 days following publication and may be submitted to Jonathan Steinberg, Attorney, (512) 475-2051, Texas Water Development Board, P.O. Box 13231, Austin, Texas, 78711-3231, or by e-mail to jonathan.steinberg@twdb.state.tx.us or by fax at (512) 463-5580.

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.

§363.1002.Definitions of Terms.

The following word and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) - (4) (No change.)

(5) New water supply project--A project which will create new, usable water supply through the construction of a reservoir, dam, stormwater retention basin, or the development of conservation or innovative technologies including, but not limited to, desalinization, demineralization, other advanced water treatment practices, floodwater harvesting, or aquifer storage and recovery.

§363.1003.Board Participation.

Unless otherwise directed by legislation, the board will only use the State Participation Accounts of the Texas Water Development Fund I or the Texas Water Development Fund II to provide financial assistance for all or a part of the cost to construct the excess capacity of [ a proposed project where ]:

(1) an eligible new water supply project where:

(A) [ (1) ] at least 20% of the total facility capacity of the proposed project will serve existing need, or

(B) [ (2) ] the applicant will finance at least 20% of the total project cost from sources other than the State Participation Account ; and [ . ]

(2) all other projects eligible for state participation where:

(A) at least 50% of the total facility capacity of the proposed project will serve existing need, or

(B) the applicant will finance at least 50% of the total project cost from sources other than the State Participation Account.

§363.1006.Priority Rating System.

(a) The executive administrator will rate all applications not previously considered by the board on March 1 and October 1 of each year. An application must be submitted by February 1 to be rated on March 1. An application must be submitted by September 1 to be rated on October 1. The executive administrator will provide the ratings to the board in March and October of each year. The board may consider rated applications at its March or October board meetings or may postpone consideration of any rated applications at its discretion. [ The board will consider applications for financial assistance from the State Participation Accounts at its meetings in March and October of each year. An application may be submitted at any time. To be considered by the board, and rated by the executive administrator, the application must be received no later than 45 days before the board meeting date at which it is to be presented to the board. ]

(b) - (c) (No change.)

§363.1007.Rating Criteria.

(a) The factors to be used by the executive administrator to rate projects seeking financial assistance from the State Participation Account, and the points assigned to each factor, shall be as follows:

(1) - (6) (No change.)

(7) New water supply projects will receive 2 points.

(b) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 21, 2003.

TRD-200303164

Suzanne Schwartz

General Counsel

Texas Water Development Board

Proposed date of adoption: July 16, 2003

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