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. §§300f et seq.
2. (2) Applicant--The entity applying for financial assistance from the DWSRF including the entity that receives the financial assistance, and the entity that owns the project funded under this chapter, or an entity authorized to act on behalf of the Applicant.
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, and book-entry obligations authorized to be issued by any political subdivision.
7. (7) Bypass--The selection of a project for funding independent of ranking based on factors delineated in the applicable IUP.
8. (8) Capitalization grant--The federal grant funds awarded annually by the EPA to the State for capitalization of the DWSRF.
9. (9) Certification of Trust--An instrument executed by a home-rule municipality pursuant to Chapter 104, Local Government Code, governing the management of the financial assistance proceeds in accordance with §114.086, Texas Property Code.
10. (10) Closing--The exchange of the Applicant's approved debt instruments for DWSRF financial assistance.
11. (11) Commission--The Texas Commission on Environmental Quality.
12. (12) Commitment--An offer by the Board to provide financial assistance to an Applicant who timely fulfills the conditions in a Board resolution.
13. (13) Commitment term--The amount of time, after the Board commitment, within which the commitment for financial assistance must be closed.

14. (14) 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.

15. (15) 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.
16. (16) Construction--The erection, acquisition, alteration, remodeling, rehabilitation, improvement, extension or other man-made change necessary for an eligible project or activity.
17. (17) Construction account--A separate account created and maintained for the deposit of financial assistance and utilized by the Applicant to pay eligible expenses for the project.
18. (18) Contaminant--Any physical, chemical, biological, or radiological substance present in water.
19. (19) 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.
20. (20) Corporation--A nonprofit water supply corporation created and operating under Chapter 67 of the Texas Water Code.
21. (21) Davis-Bacon Act--The federal statute at 40 U.S.C. §§3141 et seq. and in conformance with the U.S. Department of Labor regulations at 29 CFR Part 5 (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).
22. (22) 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.
23. (23) Design--The project phase during which the Applicant prepares the project design documents including design surveys, plans, working drawings, specifications, and any procedures and protocols to be used during the construction of the project.
24. (24) Disadvantaged community--The service area or portion of a service area 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 only charged for one type of service, water or sewer with a household cost factor for water or sewer rates that is greater than or equal to one percent; or if the service area is charged for both water and sewer services with a combined household cost factor for water and sewer rates that is greater than or equal to two percent. The Board may provide financial assistance to an entity that cannot otherwise afford financial assistance under the DWSRF based on considerations other than household cost factors if such considerations clearly warrant financial assistance.
25. (25) Disaster--The occurrence or imminent threat of widespread or severe damage, injury, or loss of life or property resulting from any natural or man-made cause, including fire, flood, earthquake, wind, storm, wave action, oil spill or other water contamination, volcanic activity, epidemic, air contamination, blight, drought, infestation, explosion, riot, hostile military or paramilitary action, other public calamity requiring emergency action, or energy emergency as defined in Texas Government Code §418.004.
26. (26) Drinking Water State Revolving Fund (DWSRF)--The financial assistance program authorized by Texas Water Code, Chapter 15, Subchapter J in accordance with the Act.

27. (27) Eligible Applicant--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) any other entity eligible under federal law to receive funds from the DWSRF.
28. (28) Engineering feasibility report--Those necessary plans and studies that directly relate to the project and that are needed in order to assure compliance with the enforceable requirements of the Act and state statutes.
29. (29) Environmental affirmation--The Board's acceptance of the environmental determination made prior to the release of funds for design or construction for a project receiving pre-design financial assistance.
30. (30) EPA--The United States Environmental Protection Agency or a designated representative.
31. (31) Escrow account--A separate account maintained by an escrow agent until such funds are eligible for release to the construction account.

32. (32) Escrow agent--Any of the following:

    1. (A) a state or national bank designated by the comptroller as a state depository institution in accordance with Government Code, Chapter 404, Subchapter C;
    2. (B) a custodian of collateral as designated in accordance with Government Code, Chapter 404, Subchapter D; or
    3. (C) a municipal official responsible for managing the fiscal affairs of a home-rule municipality in accordance with Local Government Code, Chapter 104.
33. (33) Executive administrator--The executive administrator of the Board or a designated representative.
34. (34) Financial assistance--Loan funds, including principal forgiveness and negative interest loans, provided to eligible Applicants.
35. (35) 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.
36. (36) 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 as approved by the executive administrator.
37. (37) Green project reserve--A federal directive requiring a specified portion of the capitalization grant to be used for green projects.
38. (38) 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.
39. (39) Invited Projects List--That portion of the IUP listing eligible projects ranked according to their rating which will be invited to submit applications in accordance with procedures and deadlines as detailed in the applicable IUP.
40. (40) Lending rate--The rate of interest applicable to a particular financial assistance under the DWSRF.
41. (41) Market interest rates--Interest rates comparable to those attained for municipal securities in an open market offering.
42. (42) Municipality--A city, town, or other public body created by or pursuant to state law.
43. (43) 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, Part 1, Chapter 3, Subchapter O (relating to State Sales and Use Tax).
44. (44) 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.
45. (45) Outlay report--The Board's form used to report costs incurred on the project.
46. (46) Permit--Any permit, license, registration and other legal document required from any local, regional, state or federal government for construction of the project.
47. (47) Person--An individual, corporation, partnership, association, State, municipality, commission or political subdivision of the State, or any interstate body.
48. (48) 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.

49. (49) 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.

50. (50) 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.
51. (51) Private Placement Memorandum (PPM)--A document functionally similar to an official statement used in connection with an offering of municipal securities in a private placement.
52. (52) Project--The planning, acquisition of land, water rights and permits, environmental review, design, construction and other activities eligible for funding under the Act.
53. (53) Project engineer--The engineer retained by the Applicant to provide professional engineering services during any phase of a project.
54. (54) Project information form--The form that must be submitted by Applicants for rating and ranking on an IUP.
55. (55) Project Priority List--That portion of the IUP listing eligible projects ranked according to their rating and that may be further prioritized as described in the applicable IUP.

56. (56) 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.
57. (57) Ready to proceed--A project that has completed design and obtained all permits, all legally required authorizations, and all land and water rights, and has complied with all engineering and environmental planning review requirements, along with other Board requirements as applicable.
58. (58) Release of funds--The sequence and timing for Applicant's release of financial assistance funds from the escrow account to the construction account.

59. (59) 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.
60. (60) Small water system--A system that serves ten thousand persons or fewer.
61. (61) State--The State of Texas.
62. (62) Subsidy--Any special financial terms and conditions available including loan forgiveness, negative interest rates, or other financial incentives as detailed in an IUP.
63. (63) Water conservation plan--A report outlining the methods and means by which water conservation may be achieved within a particular facilities planning area.
64. (64) 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; amended to be effective October 26, 2010, 35 TexReg 9510; amended to be effective July 30, 2012, 37 TexReg 5602.