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:

1. (1) an eligible new water supply project where:

   1. (A) at least 20% of the total facility capacity of the proposed project will serve existing need, or
   2. (B) the applicant will finance at least 20% of the total project cost from sources other than the State Participation Account; and

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

   1. (A) at least 50% of the total facility capacity of the proposed project will serve existing need, or
   2. (B) the applicant will finance at least 50% of the total project cost from sources other than the State Participation Account.

Source Note:The provisions of this §363.1003 adopted to be effective October 8, 2002, 27 TexReg 9382; amended to be effective August 5, 2003, 28 TexReg 6026.