Part 10.
TEXAS WATER DEVELOPMENT BOARD
Chapter 355.
RESEARCH AND PLANNING FUND
Subchapter A. GENERAL RESEARCH AND PLANNING
31 TAC §355.5, §355.10
The Texas Water Development Board (the board) proposes amendments
to 31 TAC §355.5 and §355.10 concerning the repayment of grants
from the Research and Planning Fund. The proposed amendments are designed
to require recipients of facility planning grants to repay all or part of
the grants if projects are not constructed within a specified time period
after the facility planning study is complete. This requirement is added to
provide greater assurance that the limited funds available for planning grants
are awarded to applicants which are most serious about going forward with
a project.
Proposed §355.5(4)(H) requires the board's executive administrator
to evaluate applications for regional facility planning grants by considering
the ability of a recipient of funds to repay the assistance if construction
of a project is not commenced within the time specified by rule. This will
assure that if a grant recipient is required to repay a grant, it has the
legal and financial capability to do so.
Proposed §355.10(f) allows the board to condition grants for regional
facility planning to require that recipients agree to repay the grant to the
board if construction of a project described by the planning grant is not
timely commenced. If construction is not commenced within two years of the
time the executive administrator notifies the grant recipient that the agency
has closed the account for the grant, the loan recipient shall repay 25 percent
of the grant. For each additional year that a project has not commenced construction,
the grant recipient shall repay an additional 25 percent, up to repayment
of 100 percent of the grant. The subsection also requires the execution of
any necessary documents to assure that the grant recipient is required to
make the required grant repayment. The board proposes these amendments to
ensure that it focuses its limited facility planning funds on those entities
that are most likely to move projects from planning to construction. The board
has found that only approximately one-third of the projects for which it provides
regional facility planning funds actually move into construction. The board
believes that only applicants with clear intent to proceed with projects will
accept grant funds with the requirement that they be repaid if the project
does not commence.
Proposed §355.10(g) would provide for the entity to make the payment
to the board no later than within the entity's first fiscal year following
the date on which each repayment obligation is triggered. This will allow
the entities to provide for the repayment in its next budget cycle, either
from current revenues or through the establishment of a sinking fund and levy
of taxes, if needed.
Proposed §355.10(h) establishes that construction of a project is
considered to have begun when either an entity closes a debt issuance that
will fund a project that the executive administrator verifies is substantially
the same as the project recommended in the regional facility planning grant
report, or the effective date of a contract for the construction of a project
the executive administrator verifies is substantially the same as the project
recommended in the regional facility planning grant report, if the project
costs are not funded by a debt issuance. This provision will establish a definite
time to determine when construction begins. Use of debt issuance or effective
date of a construction contract will assure that an entity is bound to begin
the construction.
Ms. Melanie Callahan, Director of Fiscal Services, has determined that
for the first five-year period these sections are in effect there will be
no fiscal implications on state and local government as a result of enforcement
and administration of the sections. This is based on the assumption of an
average 24-month completion of facility planning studies, the first of which
would begin in November, 2002. No repayments would be due to the board under
the proposed rules until more than five-years after the rule has been in effect.
However, shortly thereafter, some political subdivisions might be required
to begin making repayments in an undetermined amount to the board.
Ms. Callahan has also determined that for the first five years the sections
as proposed are in effect the public benefit anticipated as a result of enforcing
the sections will be ensuring that limited funds available for regional facility
planning grants will be directed toward projects that are most likely to move
to construction. Ms. Callahan has determined there will be no economic costs
to small businesses or individuals required to comply with the sections as
proposed.
Comments on the proposed amendments will be accepted for 30 days following
publication and may be submitted to Suzanne Schwartz, General Counsel, Texas
Water Development Board, P.O. Box 13231, Austin, Texas, 78711-3231, by e-mail
to suzanne.schwartz@twdb.state.tx.us or by fax @ 512/463-5580.
The amendments are proposed under the authority of the Texas
Water Code §6.101 and §15.403 which provide the Texas Water Development
Board with the authority to adopt rules necessary to carry out the powers
and duties in the Water Code and other laws of the State.
The statutory provisions affected by the proposed amendments are Texas
Water Code Chapter 15, Subchapter F.
§355.5.Criteria.
Applications will be evaluated by the executive administrator, considering,
at a minimum, the following criteria:
(1)
Research project evaluation criteria for unsolicited applications:
(A)
relationship of project to current needs for water resource
research;
(B)
description of the proposed research project;
(C)
approach to organizing and managing the research project;
(D)
detailed estimate of the cost of the proposed research
project;
(E)
estimated time required to complete the research project;
(F)
ability to perform the research and complete the project;
(G)
potential economic impact; and
(H)
environmental enhancement and conservation impact.
(2)
Research project evaluation criteria for solicited applications:
(A)
description of the proposed research project;
(B)
responsiveness of the application to the request for proposals
for requests for qualifications;
(C)
approach to organizing and managing the research project;
(D)
detailed estimate of the cost of the proposed research
project;
(E)
estimated time required to complete the research project;
and
(F)
ability to perform the research and complete the project.
(3)
Flood control planning project criteria:
(A)
degree to which proposed planning duplicates previous or
ongoing flood plans;
(B)
project service area is regional versus local;
(C)
history of flooding in project area;
(D)
participation in National Flood Insurance Program;
(E)
project organization and budget; and
(F)
scope and potential benefits of project.
(4)
Regional facility planning project criteria:
(A)
degree to which proposed planning duplicates previous or
ongoing plans;
(B)
regional nature of project;
(C)
conformance to certified water quality management plans;
(D)
adequacy of water conservation plan and commitment to water
conservation;
(E)
project organization and budget;
(F)
scope and potential benefits of project; [
(G)
the degree to which the regional facility planning is consistent
with an approved regional water plan for the area in which the political subdivision
is located
; and
[
(H)
ability of a recipient of funds to repay
the assistance if a project is not constructed according to §355.10(f)
of this title (relating to Funding Limitations).
§355.10.Funding Limitations.
(a)
Grants for regional facility planning and flood control
planning shall be limited to 50% of the total cost of the project, except
that the board may supply up to 75% of the total cost to political subdivisions
which have unemployment rates exceeding the state average by 50% or more,
and which have per capita income which is 65% or less of the state average
for the last reporting period available.
(b)
In-kind services may be substituted for any part of the
local share, if such services are directly in support of the planning effort,
are properly documented, and approved in advance by the board.
(c)
Up to 100% of the cost of research projects may be provided
by the board.
(d)
Funds will be released only as reimbursement of costs actually
incurred for approved activities.
(e)
Grants in excess of 75% for regional facility planning
or flood control planning will be provided if authorized by specific legislation
or legislative appropriation language.
(f)
The board may condition grants for regional
facility planning to require that the recipients agree in the contract for
assistance, and by the execution of any other documents necessary to secure
such agreement, to pay back to the board the following specified percentages
of the grant if construction on a project described by the regional facility
planning grant is not begun within the following specified times:
(1)
if construction is not begun within two years of the time
the executive administrator notifies the grant recipient that the agency has
closed the account for the grant, the recipient shall repay to the board 25%
of the amount of the grant;
(2)
if construction is not begun within three years of the
time the executive administrator notifies the grant recipient that the agency
has closed the account for the grant, the recipient shall repay to the board
an additional 25% of the amount of the grant;
(3)
if construction is not begun within four years of the time
the executive administrator notifies the grant recipient that the agency has
closed the account for the grant, the recipient shall repay to the board an
additional 25% of the amount of the grant; and
(4)
if construction is not begun within five years of the time
the executive administrator notifies the grant recipient that the agency has
closed the account for the grant, the recipient shall repay to the board an
additional 25% of the amount of the grant.
(g)
Repayment under subsection (f) of this
section shall occur no later than within the entity's first fiscal year following
the date on which each repayment obligation is triggered.
(h)
For the purposes of subsection (f) of
this section, construction will be considered to have begun when:
(1)
an entity closes a debt issuance that will fund a project
that the executive administrator verifies is substantially the same as the
project recommended in the regional facility planning grant report; or
(2)
the effective date of a contract for the construction of
a project the executive administrator verifies is substantially the same as
the project recommended in the regional facility planning grant report, if
the project costs are not funded by a debt issuance.
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 15, 2002.
TRD-200203032
Suzanne Schwartz
General Counsel
Texas Water Development Board
Proposed date of adoption: July 17, 2002
For further information, please call: (512) 936-2246
Subchapter C. GRANTS TO STATE AGENCIES
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Chapter 367.
AGRICULTURAL WATER CONSERVATION PROGRAM