The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Words defined in Chapter 15 of the Texas Water Code and not defined here shall have the meanings provided by Chapter 15.

1. (1) Act--The federal Safe Drinking Water Act, 42 U.S.C.A. §300f, et seq., as amended.
2. (2) Applicant--The entity applying for financial assistance from the DWSRF and includes the entity that receives the financial assistance, and the entity that owns the project funded under this chapter.
3. (3) Application--The forms provided by the executive administrator that must be completed for consideration for financial assistance from the DWSRF.
4. (4) Authorized representative--The signatory agent of the Applicant authorized and directed by the Applicant's governing body to file the application and to sign documents relating to the project, on behalf of the Applicant.
5. (5) Board--The Texas Water Development Board.
6. (6) Bonds--All bonds, notes, certificates of obligation, book-entry obligations, and other obligations issued or authorized to be issued by any political subdivision.
7. (7) Bypass--The selection of projects for funding without adhering to the priorities resulting from the project's rating in the IUP.
8. (8) Capitalization grant--The Federal grant awarded annually to the State for capitalization of the DWSRF.
9. (9) Closing--The exchange of the Applicant's approved debt instruments for DWSRF financial assistance.
10. (10) Commission--The Texas Commission on Environmental Quality.
11. (11) Commitment--An offer by the Board to provide financial assistance to an Applicant who timely fulfills the conditions in a Board resolution.
12. (12) Commitment term--The amount of time, after the Board commitment, within which the commitment for financial assistance must be closed.

13. (13) Community water system--A public water system that:

    1. (A) serves at least 15 service connections used by year-round residents of the area served by the system; or
    2. (B) regularly serves at least 25 year-round residents.

14. (14) Consolidation--Any one of the following activities:

    1. (A) a public water system acquiring another public water system;
    2. (B) a public water system providing retail service to another public water system; or
    3. (C) a public water system providing wholesale service, which may include operation of the system, to another public water system.
15. (15) Construction--The erection, acquisition, alteration, remodeling, improvement, extension or other man-made change necessary for an eligible project or activity.
16. (16) Construction fund--A fund established with loan proceeds, kept separate from all other funds of the Applicant, and held at an official state depository institution.
17. (17) Contaminant--Any physical, chemical, biological, or radiological substance present in water.
18. (18) Contract documents--The engineering documentation relating to the project including engineering drawings, maps, technical specifications, design reports, instructions and other contract conditions and forms that are in sufficient detail to allow contractors to bid on the work.
19. (19) Corporation--A nonprofit water supply corporation created and operating under Chapter 67 of the Texas Water Code.
20. (20) Davis-Bacon Act--The federal statute at 40 U.S.C. §§3141 et seq. as amended and in conformance with the U.S. Department of Labor regulations at 29 CFR Part (Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction) and 29 CFR Part 3 (Contractors and Subcontractors on Public Work Financed in Whole or in Part by Loans or Grants from the United States).
21. (21) Debt--All bonds or other documents issued or to be issued by any political subdivision or eligible applicant pledging repayment of the Board's financial assistance.
22. (22) Design--Surveys, plans, working drawings, specifications, and any procedures and protocols necessary for the project.
23. (23) Disadvantaged community--The service area of a political subdivision, or the service area of a community that is located outside the political subdivision and that has an adjusted median household income that is no more than 75% of the state median household income for the most recent year for which statistics are available; and if the service area is not charged for sewer services, has a household cost factor for water rates that is greater than or equal to one percent; or if the service area is charged for water and sewer services, has a combined household cost factor for water and sewer rates that is greater than or equal to two percent. The Board may alter or add to these factors to provide financial assistance to an entity that cannot otherwise afford a state revolving fund loan.
24. (24) Drinking Water State Revolving Fund (DWSRF)--The financial assistance program authorized by Texas Water Code, Chapter 15, Subchapter J.

25. (25) Eligible entity--Any of the following entities:

    1. (A) a nonprofit noncommunity water system;
    2. (B) a nonprofit community water system;
    3. (C) a political subdivision that is a municipality, intermunicipal, interstate or state agency, or a nonprofit water supply corporation created and operating under Chapter 67 of the Texas Water Code; or
    4. (D) and any other entity eligible under federal law to receive funds from the DWSRF.
26. (26) EPA--The U.S. Environmental Protection Agency or a designated representative.
27. (27) Executive administrator--The executive administrator of the Board or a designated representative.
28. (28) Financial assistance--The DWSRF loans, including principal forgiveness and negative interest loans and grants to eligible Applicants.
29. (29) Force majeure--Acts of god, strikes, lockouts or other industrial disturbances, acts of the public enemy, war, blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, storms, floods, washouts, droughts, tornadoes, hurricanes, arrests and restraints of government and people, explosions, breakage or damage to machinery, pipelines or canals, and any other inabilities of either party, whether similar to those enumerated or otherwise, and not within the control of the party claiming such inability, which by the exercise of due diligence and care such party could not have avoided.
30. (30) Fund--The DWSRF created pursuant to the Texas Water Code, Chapter 15, Subchapter J.
31. (31) Green project--A project or components of a project that, when implemented, will result in energy efficiency, water efficiency, green infrastructure, or environmental innovation that are characterized as green projects either categorically or by utilizing a business case where required.
32. (32) Green project reserve--A federal directive requiring a specified portion of the capitalization grant to be used for green projects.
33. (33) Intended use plan (IUP)--A document prepared annually by the Board, after public review and comment, which identifies the intended uses of all DWSRF program funds and describes how those uses support the overall goals of the DWSRF program.
34. (34) Lending rate--The rate of interest applicable to a particular DWSRF loan.
35. (35) Market interest rates--Interest rates comparable to those attained for municipal securities in an open market offering.
36. (36) Municipality--A city, town, or other public body created by or pursuant to State law.
37. (37) Nonprofit organization--Any legal entity that is recognized as a tax exempt organization by the Texas Comptroller of Public Accounts pursuant to 34 Texas Administrative Code, Chapter 3, Subchapter (relating to State Sales and Use Tax).
38. (38) Nonprofit noncommunity (NPNC) water system--A public water system that is not a community water system and that is owned and operated by a nonprofit organization.
39. (39) Outlay report--The Board's form used to withdraw funds.
40. (40) Political subdivision--A municipality, intermunicipal, interstate, or state agency, any other public entity eligible for assistance, or a nonprofit water supply corporation created and operating under Texas Water Code Chapter 67.

41. (41) Population--The number of people who reside within the territorial boundaries of or receive wholesale or retail water service from the Applicant based upon data that is acceptable to the executive administrator and which includes the following:

    1. (A) acceptable demographic projections or other information in the engineering feasibility report or the latest official census for an incorporated city; or
    2. (B) information on the population for which the project is designed, where the Applicant is not an incorporated city or town.

42. (42) Primary drinking water regulation--Regulations promulgated by EPA which:

    1. (A) apply to public and private water systems;
    2. (B) specify contaminants which, in the judgment of the administrator, may have any adverse effect on the health of persons;

    3. (C) specify for each such contaminant either:

       1. (i) a maximum contaminant level if, in the judgment of the administrator, it is economically and technologically feasible to ascertain the level of such contaminant in water in public water systems; or
       2. (ii) if, in the judgment of the administrator, it is not economically or technologically feasible to so ascertain the level of such contaminant, each treatment technique known to the administrator which leads to a reduction in the level of such contaminant sufficient to satisfy the requirements of the Act; and

    4. (D) contain criteria and procedures to assure a supply of drinking water which dependably complies with such maximum contaminant levels including quality control and testing procedures to insure compliance with such levels and to ensure the proper operation and maintenance of the system, and requirements as to:

       1. (i) the minimum quality of water which may be taken into the system; and
       2. (ii) the siting of new facilities for public water systems.
43. (43) Priority list--That portion of the IUP listing eligible projects ranked according their rating and that may be further prioritized as described in an applicable IUP.
44. (44) Private placement memorandum--A document functionally similar to an official statement used in connection with an offering of municipal securities in a private placement.
45. (45) Project--The planning, the acquisition of land, water rights and permits, the design, the construction and other activities eligible for funding under the Act.
46. (46) Project engineer--The engineer hired by the Applicant to provide services during any phase of a project.
47. (47) Project information form--The Board form required from Applicants seeking funds from the DWSRF.

48. (48) Public water system--

    1. (A) In General. A system that provides water to the public for human consumption through pipes or other constructed conveyances, if such system has at least 15 service connections or regularly serves at least 25 individuals. Such term includes:

       1. (i) any collection, treatment, storage, and distribution facilities under control of the operator of such system and used primarily in connection with such system; and
       2. (ii) any collection or pretreatment storage facilities not under such control which are used primarily in connection with such system.

    2. (B) Connections. A connection to a system that delivers water by a constructed conveyance other than a pipe shall not be considered a connection, if:

       1. (i) the water is used exclusively for purposes other than residential use (consisting of drinking, bathing, cooking, or other similar uses);
       2. (ii) the administrator or the commission determines that alternative water to achieve the equivalent level of public health protection provided by the applicable national primary drinking water regulation is provided for residential or similar uses for drinking and cooking; or
       3. (iii) the administrator or the commission determines that the water provided for residential or similar uses for drinking, cooking, and bathing is centrally treated or treated at the point of entry by the provider, a pass-through entity, or the user to achieve the equivalent level of protection provided by the applicable national primary drinking water regulations.
    3. (C) Irrigation districts. An irrigation district in existence prior to May 18, 1994, that provides primarily agricultural service through a piped water system with only incidental residential or similar uses shall not be considered to be a public water system if the system or the residential or similar users of the system comply with subparagraph (B)(ii) and (iii) of this paragraph.
    4. (D) Transition period. A water supplier that would be a public water system only as a result of modifications made shall not be considered a public water system until two years after August 6, 1996. If a water supplier does not serve 15 service connections or 25 people at any time after the conclusion of the two-year period, the water supplier shall not be considered a public water system.
49. (49) Ready to proceed--A project that has obtained all permits, legally required authorizations, and all land and water rights, has complied with all engineering and environmental planning review requirements and other Board requirements and design is complete.
50. (50) Release of funds--The sequence and timing for Applicant' access to funds.

51. (51) Secondary drinking water regulation--Regulations promulgated by EPA which apply to public water systems and which specify the maximum contaminant levels which, in the judgment of the administrator, are necessary to protect the public welfare. Such regulations may vary according to geographic and other circumstances and may apply to any contaminant in drinking water:

    1. (A) which may adversely affect the odor or appearance of such water and consequently may cause a substantial number of the persons served by the public water system providing such water to discontinue its use; or
    2. (B) which may otherwise adversely affect the public welfare.
52. (52) Small water system--An entity that serves ten thousand persons or fewer.
53. (53) State--State of Texas.
54. (54) Subsidy--Any special financial terms and conditions available including loan forgiveness, negative interest rates, grants or other financial incentives as detailed in an IUP.
55. (55) Water conservation plan--A report outlining a program that contains the methods and means for achieving water conservation in an area.
56. (56) Water conservation program--A comprehensive description and schedule of the methods and means to implement and enforce a water conservation plan.

Source Note:The provisions of this §371.1 adopted to be effective August 4, 2010, 35 TexReg 6680.