1. (a) Before entering a grant agreement for a grant under this subchapter, TANEO will establish a milestone-based plan to distribute grant funds on a rolling basis in accordance with:

   1. (1) a project's respective regulatory commission license or permit regulatory pathway; and
   2. (2) the grant recipient's financial investment decisions as it relates to the project.

2. (b) To determine the milestones included in a grant agreement, TANEO may consider, but is not limited to, the following considerations:

   1. (1) the applicant's progress and completion of the regulatory commission's regulatory stages and other requirements related to a license or permit, including the:

      1. (A) application schedule and resource letter published;
      2. (B) application safety review;
      3. (C) application environmental review; and
      4. (D) issuance of license or permit; and

   2. (2) the recipient's financial investment decisions related to a project, including:

      1. (A) a comprehensive description of the entire project management process;
      2. (B) anticipated timing of decisions and associated prerequisites for a project to proceed through a gating process; and
      3. (C) a comprehensive financing and capital expenditure plan for the project, including details relating to sources of funding and project-specific investment decisions and timelines.
3. (c) Notwithstanding subsection (b)(1) of this section, TANEO may, in its sole discretion, accept approvals that applicants receive from other federal agencies.
4. (d) TANEO may withhold reimbursements of grant funds based on an applicant's failure to complete specified milestones described in the grant agreement.
5. (e) TANEO may require a grant recipient to submit any documentation or information TANEO determines is necessary to assess whether a grantee has met a milestone in whole or in part for the purpose of distributing grant funds.

Source Note:The provisions of this §331.32 adopted to be effective March 19, 2026, 51 TexReg 1623.