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. (1) at least 20% of the total facility capacity of the proposed project will serve existing need, or
2. (2) the applicant will finance at least 20% 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.