Emergency Sections
An agency may adopt a new or amended section or repeal an existing section on an 
emergency basis if it determines that such action is necessary for the public 
health, safety, or welfare of this state. The section may become effective 
immediately upon filing with the Texas Register, or on a stated date less than 
20 days after filing, for no more than 120 days. The emergency action is 
renewable once for no more than 60 days.
Symbology in amended emergency sections. New language added to an existing 
section is indicated by the use of bold text. [Brackets] indicate deletion of 
existing material within a section.
TITLE 16. ECONOMIC REGULATION
Part I. Railroad Commission of Texas
Chapter 3. Oil and Gas Division
Conservation Rules and Regulations
16 TAC sec.3.50
The Railroad Commission of Texas adopts on an emergency basis an amendment to 
sec.3.50, concerning requirements for approval and certification of expanded 
enhanced oil recovery (EOR) projects to receive a tax incentive pursuant to the 
Texas Tax Code, Title 2, Chapter 202, Subchapter B, sec.202.052 and sec.202.054. 
The Railroad Commission is adopting the amendment on an emergency basis to 
advance the public welfare. The decline in the oil and gas industry in Texas has 
had a grave impact on the Texas economy and the public welfare of citizens. The 
amendment should encourage increased oil and natural gas production, increase 
jobs, and increase severance tax revenue in the future. On June 15, 1991, Senate 
Bill Number 1105 (relating to a reduced oil production tax rate) of the 72nd 
Legislature, was signed into law, to become effective on September 1, 1991. 
Senate Bill Number 1105 provides a reduced oil production tax rate for the 
incremental increase in oil produced from expanded EOR projects approved and 
certified by the Railroad Commission of Texas. The amendment to sec.3.50 
provides the procedure for approval and certification of expanded EOR projects 
qualifying for the reduced tax rate provided in the Tax Code, sec.202.052 and 
sec.202.054, as amended by Senate Bill Number 1105. The amendment defines terms 
and set the standard for qualification, approval, and certification for the 
severance tax incentive. The Railroad Commission has not fully analyzed the 
potential severance tax implications. The former sec.3.50 was adopted by the 
Railroad Commission effective February 20, 1990, and was published in the 
February 6, 1990, issue of the Texas Register (15 TexReg 652).
The amendment is adopted on an emergency basis under the Texas Natural Resources 
Code, sec.sec.81.052, 85.046, 85.202 and the Texas Tax Code, sec.202.052 and 
sec.202.054, which provides the Railroad Commission of Texas with the authority 
to adopt rules for the following purposes: to govern and regulate persons and 
their operations under the jurisdiction of the Railroad Commission; to prevent 
the waste of oil in producing operations; to approve EOR projects; to designate 
the area to be affected by EOR projects; to certify positive production 
response; and to terminate EOR projects.
sec.3.50. Enhanced Oil Recovery Projects-Approval and Certification for Tax 
Incentive.
(a) Purpose. The purpose of this section is to provide a procedure by which an 
operator can obtain Railroad Commission approval and certification of enhanced 
oil recovery <nl>(EOR) <ol> projects pursuant to the Tax Code, Title 2, Chapter 
202, Subchapter B, sec.202.052 and sec.202.054.
(b) Applicability.
(1) This section applies to:
(A)  <nl>new EOR<ol> [enhanced oil recovery (EOR)] projects [;] and [(B)] the 
change from secondary EOR projects to tertiary projects which qualify as new 
<nl>EOR<ol> projects, and which begin active operation on or after September 1, 
1989;
<nl>(B) expansions of existing EOR projects.
(2)  <nl>An EOR project may not qualify as an expansion if the project has 
qualified as a new EOR project under this section.<ol> [This section will not 
apply to the following types of EOR projects unless the operator is able to 
demonstrate by filings or in a hearing, that the project qualifies as a new and 
distinct EOR project:
[(A) an expansion of a project in active operation prior to September 1, 1989;
[(B) a change from one method of secondary recovery process to a different 
method of secondary recovery process;
[(C) a change from one method of tertiary recovery process to a different method 
of tertiary recovery process; or
[(D) a pressure maintenance process.]
(c) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context clearly indicates otherwise.
(1) Active operation-<nl>The start <ol> [commencement] and continuation of 
<nl>a<ol> fluid injection <nl>program<ol> [programs] for a secondary or tertiary 
recovery  <nl>project to enhance<ol> [projects for enhancing] the displacement 
process in the reservoir. Applying for permits and moving equipment into the 
field alone are not considered active operations.
(2) (No change.)
(3) <nl>Commission's representative -A commission employee authorized to act for 
the commission. Any authority given to a commission representative is also 
retained by the commission. Any action taken by the commission's representative 
is subject to review by the commission.<ol> [Director-The director of the Oil 
and Gas Division or the director's delegate.]
<nl>(4)  Comptroller-The Comptroller of Public Accounts.
<nl>(5)<ol>[(4)]  EOR project-The use of any process for the displacement of oil 
from the reservoir other than primary recovery and includes the use of an 
immiscible, miscible, chemical, thermal, or biological process.
<nl>(6)<ol>[(5)]  <nl>Existing EOR-An EOR project that began active operations 
before September 1, 1989, or began active operation between September 1, 1989 
and September 1, 1991 but was not approved as a new EOR project.<ol> [Expansion 
-The enlargement of an EOR project. Production from projects or areas in which 
active operation was started prior to September 1, 1989, will not qualify for 
the recovered oil tax rate unless approved pursuant to subsection (b) (2) of 
this section.]
<nl>(7) Expanded enhanced recovery project or expansion-The addition of 
injection and producing wells, the change of injection pattern or other 
operating changes to an existing enhanced oil recovery project that will result 
in the recovery of oil that would not otherwise be recovered.
<nl>(8)<ol>[(6)] Fluid injection -Injection through an injection well of a fluid 
(liquid or gaseous) into a producing formation as part of an EOR project.
<nl>(9) Incremental production-The volume of oil produced by an expanded 
enhanced recovery project in excess of the production decline rate established 
under conditions before expansion of an existing enhanced recovery project.
<nl>(10)<ol>[(7)] Oil recovery from an enhanced recovery project-The oil 
produced from the designated area the commission certifies to be affected by the 
project.
<nl>(11)<ol>[(8)] Operator-The person recognized by the commission as being 
responsible for the actual physical operation of an EOR project and the wells 
associated with the EOR project.
<nl>(12)<ol>[(9)]  Positive production response-Occurs when the rate of oil 
production from wells within the designated area affected by an <nl>EOR<ol> 
[enhanced recovery] project is greater than the rate that would have occurred 
without the project.
<nl>(13)<ol>[(10)] Pressure maintenance -The injection of fluid into the 
reservoir for the purpose of maintaining the reservoir pressure at or near the 
bubble point or other critical pressure.
<nl>(14)<ol>[(11)]  Primary recovery-The displacement of oil from the reservoir 
into the well <nl>bore(s) <ol> [bores] by means of the natural pressure of the 
oil reservoir, including artificial lift.
<nl>(15) Production decline rate -The projected future oil production from a 
project area as extrapolated by a method approved by the commission.
<nl>(16)<ol>[(12)] Recovered oil tax rate-The tax rate provided by the Tax Code, 
sec.202.052(b).
<nl>(17)<ol>[(13)] Secondary recovery project-An enhanced recovery project that 
is not a tertiary recovery project.
<nl>(18)<ol>[(14)] Termination-Occurs when the approved fluid injection program 
associated with an EOR project stops or is discontinued.
<nl>(19)<ol>[(15)] Tertiary recovery project-An <nl>EOR<ol> [enhanced recovery] 
project using a tertiary recovery method (as defined in the federal June 1979 
energy regulations referred to in the Internal Revenue Code of 1986, sec.4993, 
or approved by the United States secretary of the treasury for purposes of 
administering the Internal Revenue Code of 1986, sec.4993, without regard to 
whether that section remains in effect) including those listed as follows.
(A)-(I) (No change.)
(d) Application requirements. To qualify for the recovered oil tax rate the 
operator must:
(1) <nl>for a new EOR project,<ol> submit an application for approval on the 
appropriate form on or after September 1, 1989, and before January 1, 1994. 
<nl>For an expansion of an existing EOR project, submit an application for 
approval on the appropriate form on or after September 1, 1991 and before 
January 1, 1994.<ol> An application may be filed on or after <nl>the applicable 
date (September 1, 1989 or September 1, 1991) in this paragraph<ol> [September 
1, 1989], even if a separate application for approval of the project has already 
been filed prior to that date. All applications must be filed in Austin. One 
copy of the form and the plats shall also be filed with the appropriate district 
office. The form shall be executed and certified by a person having knowledge of 
the facts entered on the form. If an application is already on file under the 
Natural Resources Code, Chapter 101, Subchapter B, or for approval as a tertiary 
recovery project for purposes of the Internal Revenue Code of 1986, sec.4993, 
the operator may file a new application if the active operation of the project 
does not begin before the application under this section is approved by the 
commission;
(2)-(3) (No change.)
(4) submit an application on the appropriate form and obtain <nl>the 
necessary<ol> permits to conduct fluid injection operations pursuant to sec.3.46 
of this title (relating to Fluid Injection into Productive Reservoirs) 
(Statewide Rule 46), if such permits have not already been obtained.
(e) Concurrent applications. The operator may apply concurrently or separately 
for:
(1) approval of a <nl>new or expanded EOR<ol> [proposed enhanced oil recovery] 
project under this section;
(2)-(3) (No change.)
(f) Opportunity for hearing. <nl>A commission representative<ol> [The director] 
may administratively approve the application. If the <nl>commission 
representative<ol> [director] denies administrative approval, the applicant 
shall have the right to a hearing upon request. After hearing, the examiner 
shall recommend final action by the commission.
(g) Approval and certification.
(1) Project approval. In order to be eligible for the recovered oil tax rate as 
provided in the Tax Code, sec.202.052(b), the operator must apply for and be 
granted commission approval of <nl>a new EOR<ol> [an enhanced oil recovery] 
project <nl>or an expansion of an existing EOR project <ol>, prior to commencing 
<nl>active<ol> operation of the <nl>new<ol> project <nl>or expanded project<ol>. 
For a project to be approved the operator must:
(A)  <nl>for a new project<ol> prove that the project will begin active 
operation on or after September 1, 1989 <nl>or for the expansion of an existing 
project prove that the project will begin active operation on or after September 
1, 1991;
(B)-(D) (No change.)
(2) Positive production response certificate.
(A) The operator of an EOR project that meets the requirements of this section 
must demonstrate to the commission a positive oil production response before the 
operator can receive commission certification of such a positive production 
response. The certification date may be any date desired by the operator, 
subject to commission approval, following the date on which a positive oil 
production response first occurred. The operator must apply for a positive 
production response certificate within three years of project approval for 
secondary projects, and within five years of project approval for tertiary 
projects, to qualify for the recovered oil tax rate. The oil produced from the 
designated area  <nl>of a new EOR project or incremental oil produced from the 
designated area of an expanded EOR project <ol> after the date of certification 
of a positive production response is eligible for the recovered oil tax rate. 
The operator must apply to the comptroller pursuant to the Tax Code, sec.202.052 
and sec.202.054, to qualify for the recovered oil tax rate.
(B) The application for positive response certification shall include:
(i) production graphs and data illustrating a positive production response and 
volumes of water or other substances that have been injected on the 
<nl>designated area<ol> [lease or unit] since the initiation of the <nl>new 
EOR<ol> [enhanced recovery] project  <nl>or the expanded EOR project<ol>;
(ii)-(iii) (No change.)
(C) The application for the positive production response certificate will be 
processed administratively. If the <nl>commission representative<ol> [director] 
denies administrative approval, the applicant shall have the right to a hearing 
upon request. After hearing, the examiner shall recommend final action by the 
commission.
(h) Annual reporting.
(1) (No change.)
(2) If the project is carried out under a unitization/secondary recovery order, 
the operator may make a written declaration to the <nl>commission<ol> [director 
of the Oil and Gas Division] that filing of the annual report required under 
this subsection replaces the annual report required in the unitization/secondary 
recovery order. In its declaration the operator shall select one of the 
following due dates:
(A) -(B) (No change.)
(3)-(4) (No change.)
(i) Reduced or  <nl>enlarged<ol> [expanded] areas. The operator may apply for 
reduced or <nl>enlarged <ol> [expanded] project area certification if:
(1) (No change.)
(2) the application for reduction or <nl>enlargement <ol> [expansion] is 
received no later than three years after the original approval of a secondary 
recovery project or five years after the original approval of a tertiary 
recovery project.
(j) (No change.)
Issued in Austin, Texas, on August 20, 1991.
TRD-9112229
Martha V. Swanger
Hearings Examiner-Legal Division, General Law
Railroad Commission of Texas
Effective date: October 4, 1991
Expiration date: February 1, 1992
For further information, please call: (512) 463-6941
       
TITLE 34. PUBLIC FINANCE
Part I. Comptroller of Public Accounts
Chapter 3. Tax Administration
Subchapter Z. Coastal Protection Fee
34 TAC sec.3.692
The Comptroller of Public Accounts is renewing the effectiveness of the 
emergency adoption of new sec.3.692, for a 60-day period effective October 3, 
1991. The text of new sec.3.692 was originally published in the June 14, 1991, 
issue of the Texas Register (16 TexReg 3235).
Issued in Austin, Texas on October 3, 1991.
TRD-9112150
Anne Hildebrand
Agency Liaison
Comptroller of Public Accounts
Effective date: October 3, 1991
Expiration date: December 2, 1991
For further information, please call: (512) 463-4028
       
TITLE 43. TRANSPORTATION
Part I. Texas Department of Transportation
Chapter 21. Division of Right-of-Way
Control of Outdoor Advertising Signs
43 TAC sec.21.150
The Texas Department of Transportation is renewing the effectiveness of the 
emergency adoption of repealed sec.21.150, for a 60-day period effective October 
3, 1991. The text of repealed sec.21.150 was originally published in the June 
14, 1991, issue of the  Texas Register (16 TexReg 3236).
Issued in Austin, Texas, on October 2, 1991.
TRD-9112087
Robert E. Shaddock
General Counsel
Texas Department of Transportation
Effective date: October 3, 1991
Expiration date: December 2, 1991
For further information, please call: (512) 463-8630
       
The Texas Department of Transportation is renewing the effectiveness of the 
emergency adoption of new sec.21.150, for a 60-day period effective October 3, 
1991. The text of new sec.21.150 was originally published in the June 14, 1991, 
issue of the Texas Register (16 TexReg 3236).
Issued in Austin, Texas, on October 2, 1991.
TRD-9112086
Robert E. Shaddock
General Counsel
Texas Department of Transportation
Effective date: October 3, 1991
Expiration date: December 2, 1991
For further information, please call: (512) 463-8630
       
Chapter 31. Division of Public Transportation
General
43 TAC sec.31.3
The Texas Department of Transportation adopts on an emergency basis an amendment 
to sec.31.3, concerning definitions. The definition of authority is being 
amended to exclude taxing entities in ares with less than 200,000 population. 
The remaining changes in this section are due to the recent name changes of the 
department, commission, and members of the staff.
Adoption on an emergency basis is necessary due to the recent passage of House 
Bill 235, 72nd Legislature, 1991, and House Bill 9, 72nd Legislature, First 
Called Session, 1991, effective September 1, 1991, which necessitates the 
promulgation of amendments to rules describing the administration of state 
public transportation programs, and to prevent any detrimental effects on Texas' 
economy, and the safety and welfare of the traveling public.
The amendment is adopted on an emergency basis under Texas Civil Statutes, 
Articles 6666, 6663b, and 6663c, which provide the Texas Transportation 
Commission with the authority to establish rules for the conduct of the work of 
the Texas Department of Transportation, and more specifically to administer the 
state public transportation fund and state and federal public transportation 
programs.
sec.31.3 Definitions.  The following words and terms, when used in this chapter 
shall have the following meanings, unless the context clearly indicates 
otherwise.
<nl>   Associate executive director-The associate deputy director of planning 
and policy for the department.
 Authority-A metropolitan or regional authority as created under Texas Civil 
Statutes, Article 1118x or Article 1118y, or a city transit department created 
under Texas Civil Statutes, Article 1118z<nl>, by a municipality having a 
population of not less than 200,000 according to the most recent federal census.
 Commission-The  <nl>Texas<ol> [State Highway and Public] Transportation 
Commission.
 Department-The  <nl>Texas<ol> [State] Department of [Highways and Public] 
Transportation.
 [Deputy director -The deputy director, planning and policy, for the 
department.]
 Director-The director <nl>of<ol> [,] public transportation [,] for the 
department.
<nl>   Executive director <ol> [Engineer-director]-The chief executive officer 
of the department.
Issued in Austin, Texas, on October 3, 1991.
TRD-9112181
Diane L. Northam
Legal Administrative Assistant
Texas Department of Transportation
Effective date: October 3, 1991
Expiration date: January 31, 1992
For further information, please call: (512) 463-8630
       
State Programs
43 TAC sec.31.11, sec.31.13
The Texas Department of Transportation adopts on an emergency basis amendments 
to sec.31.11, concerning formula program and sec.31.13 concerning discretionary 
program. An authority, as that term is defined in sec.31.3 and is simultaneously 
being amended, is no longer eligible to receive monies under the formula or 
discretionary state programs. The amendments describe how the available public 
transportation funds are now split equally between transit systems in urbanized 
areas of 50,000 or greater population, including those in cities not served by 
authorities that exist in that urbanized area, and systems in nonurbanized 
areas.
Adoption on an emergency basis is necessary due to the recent passage of House 
Bill 235, 72nd Legislature, 1991, and House Bill 9, 72nd Legislature, First 
Called Session, 1991, effective September 1, 1991, which necessitates the 
promulgation of amendments to rules describing the administration of state 
public transportation programs, and to prevent any detrimental effects on Texas' 
economy, and the safety and welfare of the traveling public.
The amendments are adopted on an emergency basis under Texas Civil Statutes, 
Articles 6666, 6663b, and 6663c, which provide the Texas Transportation 
Commission with the authority to establish rules for the conduct of the work of 
the Texas Department of Transportation, and more specifically to administer the 
state public transportation fund and state and federal public transportation 
programs.
sec.31.11. Formula Program.
(a) (No change.)
(b) Formula allocation. <nl>At<ol> [Except as provided in subsection (d) of this 
section, at] the beginning of each state fiscal biennium, an amount equal to the 
amount appropriated from all sources to the commission by the legislature for 
that biennium for public transportation, other than federal funds and amounts 
specifically appropriated for coordination, technical support, or other costs of 
administration, will be allocated to designated recipients.
(1) The commission will allocate those funds as follows.
[(A)  Twenty percent of the funds available under this section will be allocated 
in urbanized areas, each with a population larger than 200,000, according to the 
most recent federal census. Any local governmental entity having the power to 
operate or maintain a public transportation system may receive formula program 
funds described in paragraph (2)(A), (C), and (D) of this subsection. The 
commission will distribute in each applicable urbanized area an amount equal to 
the sum of:
[(i) one-half of the total amount allocated to that category multiplied by the 
ratio that the population of the urbanized area bears to the total population of 
all urbanized areas in this state in that category; and
[(ii) one-half of the total amount allocated to that category multiplied by the 
ratio that the number of inhabitants per square mile of the urbanized area bears 
to the combined number of inhabitants per square mile of all urbanized areas in 
this state in that category.]
<nl>(A) 50%<ol> [(B) 40%] of the funds available under this section will be 
allocated in urbanized areas <nl>that have<ol> [, each with] a population of not 
less than 50,000 [or more than 200,000,] according to the most recent federal 
census  <nl>and that are not served by an authority, as that term is defined in  
s31. 3 of this title (relating to Definitions) and to areas not part of an 
authority but located in urbanized areas that have a population of not less than 
50,000 according to the most recent federal census and that include one or more 
authorities.<ol> Any local governmental entity having the power to operate or 
maintain a public transportation system <nl>, except for an authority, as that 
term is defined in sec.31.3,<ol> may receive formula program funds described in 
paragraph (2) [(A)-(D)] of this subsection. <nl>Of the money allocated under 
this paragraph, the <ol> [The] commission will distribute [in each applicable 
urbanized area an amount equal to the sum of]:
(i)<nl> 10% of the total amount to designated recipients for federally assisted 
public transportation projects in urbanized areas, each with a population of not 
less than 50,000, according to the most recent federal census, selected by the 
commission<ol> [one-half of the total amount allocated to that category 
multiplied by the ratio that the population of the urbanized area bears to the 
total population of all urbanized areas in this state in that category]; and
(ii)<nl> 90% of the total amount to designated recipients operating public 
transportation services in urbanized areas, each with a population of not less 
than 50,000, according to the most recent federal census and receiving funds in 
accordance with the federal Urban Mass Transportation Act,  s1607a (49 United 
States Code, sec.1607a(a)(i). These monies will be distributed in each eligible 
urbanized area in an amount equal to the sum of:
<nl>(I)  one-half of the total amount allocated to that category multiplied by 
the ratio that the population of the urbanized area, excluding the population 
residing within the area of an authority, bears to the total population of all 
urbanized areas, excluding the population residing within areas of an authority, 
in the state in that category operating transit systems and receiving funds in 
accordance with the federal Urban Mass Transportation Act, sec.1607a (49 United 
States Code, sec.1607a(a)(i); and
<nl>(II) one-half of the total amount allocated to that category multiplied by 
the ratio that the number of inhabitants per square mile of the urbanized area, 
excluding the number of inhabitants per square mile attributable to an 
authority, bears to the combined number of inhabitants per square mile of all 
urbanized areas, excluding the number of inhabitants per square mile 
attributable to an authority, in the state in that category operating transit 
systems and receiving funds in accordance with the federal Urban Mass 
Transportation Act,  s1607a (49 United States Code, sec.1607a(a)(i)<ol> [one-
half of the total amount allocated to that category multiplied by the ratio that 
the number of inhabitants per square mile of the urbanized area bears to the 
combined number of inhabitants per square mile of all urbanized areas in this 
state in that category].
<nl>(B) 50%<ol> [(C) 40%] of the funds available under this section will be 
allocated in urban areas, each with a population of less than 50,000, according 
to the most recent federal census, or in rural areas. Any eligible recipient may 
receive formula program funds described in paragraph (2) [(A)-(D)] of this 
subsection. Of the money allocated under this paragraph, the commission will 
distribute:
(i) <nl> 10% of the total amount<ol> [5.0%] to designated recipients for 
federally assisted rural public transportation projects, selected by the 
commission; and
(ii)<nl> 90% of the total amount<ol> [95%] to designated recipients operating 
public transportation services in nonurbanized areas. These monies will be 
distributed in accordance with the following formula: D = T x F/A where: "D" = 
the amount distributed to a designated recipient; "T" = the total amount 
apportioned under this subparagraph for a fiscal year of the state; "F" = the 
amount of federal public transportation money available to the state through the 
federal formula grant program for areas other than urbanized areas in accordance 
with the federal Urban Mass Transportation Act, sec.1614 (49 United States Code, 
sec.1614), including money transferred for that purpose in accordance with that 
Act, sec.1607a (49 United States Code, sec.1607a), that was approved during the 
state's preceding fiscal year for the designated recipient; and "A" = the amount 
of federal public transportation money available to the state through the 
federal formula grant program for areas other than urbanized areas in accordance 
with the federal Urban Mass Transportation Act, sec.1614 (49 United States Code, 
sec.1614), including money transferred for that purpose in accordance with that 
Act, sec.1607a (49 United States Code, sec.1607a), that was approved during the 
state's preceding fiscal year for all designated recipients eligible to receive 
money under this subparagraph.
(2) (No change.)
(c) <nl>Unobligated funds. Any money under this section that the designated 
recipient has not applied for before the November commission meeting in the 
second year of a state fiscal biennium shall be administered by the commission 
under the discretionary program described in sec.31.13 of this title (relating 
to Discretionary Program).<ol> [Unexpended funds. At the close of the first 
fiscal year of each state fiscal biennium, the commission will reclaim and 
transfer, for use in the discretionary program described in sec.31.13, all 
unexpended money allocated under the formula program. However, if a recipient of 
formula funds has, in the first fiscal year of the biennium, entered into a 
contract with a third party under the terms of which the unexpended formula 
allocation will be expended before the end of the fiscal biennium, that formula 
recipient shall retain the money for use under that third party contract before 
the end of the fiscal biennium.]
[(d) Nonallocation. Any funds appropriated for public transportation development 
which the commission determines will not be required for that purpose under the 
formula program may be allocated by the commission:
[(1) during the first or second year of the state fiscal biennium as provided in 
sec.31.13 of this title (relating to Discretionary Program); or
[(2) as matching funds to obtain federal public transportation money for the 
improvement of public transportation in this state.]
<nl>(d)<ol>[(e)] Application. To receive funds allocated under this section, a 
designated recipient must first submit an application, in the form prescribed by 
the department, to the director which shall include the following 
certifications:
(1) that money is available to provide:
(A) 35% of the local share requirement of federally assisted capital 
improvements or planning projects and 50% of the local share requirement of 
federally financed projects for operating expenses and administrative costs to 
be financed under the formula program; or
(B) 50% of the total cost of other public transportation capital improvement 
projects; and
(2) that the proposed public transportation project is consistent with 
continuing, cooperating, and comprehensive regional transportation planning 
implemented in accordance with the federal Urban Mass Transportation Act of 1964 
(49 United States Code, sec.1601 et seq) and the Federal-Aid Highway Act of 1973 
(49 United States Code, sec.1602a) (Federal approval of a proposed public 
transportation project shall be accepted as a determination that all federal 
planning requirements have been met).
<nl>(e)<ol>[(f)] Project evaluation. In evaluating a project under this section, 
the department shall consider the need for fast, safe, efficient, and economical 
public transportation and the approval of the federal UMTA, or its successor.
<nl>(f)<ol>[(g)] Reporting requirements. A designated recipient that receives 
funds allocated under this section shall submit to the department, on the format 
prescribed by the department, quarterly reports which include the following 
information: operating cost per passenger; operating cost per revenue mile; fare 
recovery rate; average vehicle occupancy; on-time performance; the number of 
accidents per 100,000 vehicle miles; and the number of total miles between 
mechanical road calls. The reports shall be submitted based on calendar quarters 
and shall be provided to the department within 45 days of the end of the 
calendar quarter.
sec.31.13. Discretionary Program.
(a) Purpose. Texas Civil Statutes, Article 6663c, allows the commission to 
allocate any funds not obligated in accordance with the terms of sec.31.11 of 
this title (relating to Formula Program) [or any such funds that the commission 
determines are not required for the purposes of sec.31.11 of this title 
(relating to Formula Program) ] on a discretionary basis. This section sets out 
the policies, procedures, and requirements for that discretionary allocation.
(b) Discretionary allocation. The commission will allocate funds to a local 
governmental entity<nl>, except an authority as that term is defined in  s31.3 
of this title (relating to Definitions),<ol> or a private nonprofit organization 
which has the power to operate or maintain a public transportation system. Funds 
may be used for:
(1)-(2) (No change.)
(c)-(d) (No change.)
Issued in Austin, Texas, on October 3, 1991.
TRD-9112179
Diane L. Northam
Legal Administrative Assistant
Texas Department of Transportation
Effective date: October 3, 1991
Expiration date: January 31, 1992
For further information, please call: (512) 463-8630