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

1. (1) Act--The federal Safe Drinking Water Act, as amended 1996, and its subsequent amendments or successor provisions.
2. (2) Administrative costs--All reasonable and necessary costs of administering any aspect of the DWSRF program, including administrative costs associated with servicing debt obligations of recipients of DWSRF financial assistance.
3. (3) Administrator--The chief officer of the Environmental Protection Agency appointed by the President of the United States.

4. (4) Affiliated interest or affiliate--

   1. (A) any person or corporation owning or holding directly or indirectly 5.0% or more of the voting securities of an eligible private applicant;
   2. (B) any person or corporation in any chain of successive ownership of 5.0% or more of the voting securities of an eligible private applicant;
   3. (C) any corporation 5.0% or more of the voting securities of which is owned or controlled directly or indirectly by an eligible private applicant;
   4. (D) any corporation 5.0% or more of the voting securities of which is owned or controlled directly or indirectly by any person or corporation that owns or controls directly or indirectly 5.0% or more of the voting securities of any eligible private applicant or by any person or corporation in any chain of successive ownership of 5.0% of those eligible private applicant securities;
   5. (E) any person who is an officer or director of an eligible private applicant or of any corporation in any chain of successive ownership of 5.0% or more of voting securities of an eligible private applicant;
   6. (F) any person or corporation that the commission, after notice and hearing, determines actually exercises any substantial influence or control over the policies and actions of an eligible private applicant or over which an eligible private applicant exercises such control or that is under common control with an eligible private applicant, such control being the possession directly or indirectly of the power to direct or cause the direction of the management and policies of another, whether that power is established through ownership or voting of securities or by any other direct or indirect means; or
   7. (G) any person or corporation that the commission, after notice and hearing, determines is exercising substantial influence over the policies and action of the eligible private applicant in conjunction with one or more persons or corporations with which they are related by ownership or blood relationship, or by action in concert, that together they are affiliated within the meaning of this section, even though no one of them alone is so affiliated.
5. (5) Applicant--An eligible NPNC, public, or private applicant which files an application with the board for financial assistance or associated actions.
6. (6) Application for assistance--All the information required for submittal in: §371.32 of this title (relating to Required Application Information), §371.35 of this title (relating to Required Environmental Review and Determinations), §371.36 of this title (relating to Required DWSRF Engineering Feasibility Report), and §371.37 (relating to Required Water Conservation Plan), or §371.38 of this title (relating to Pre-Design Funding Option) for those applicants choosing the pre-design funding option.
7. (7) Authorized representative--The signatory agent of the applicant authorized and directed by the applicant's governing body to make application for assistance and to sign documents required to undertake and complete the project, on behalf of the applicant.
8. (8) Board--The Texas Water Development Board.
9. (9) Bonds--All bonds, notes, certificates, book-entry obligations, and other obligations issued or authorized to be issued by any political subdivision.
10. (10) Building--The erection, acquisition, alteration, remodeling, improvement or extension of a water project.
11. (11) Capitalization grant--Federal grant assistance awarded to the state for capitalization of the Drinking Water State Revolving Fund.
12. (12) Closing--The time at which the requirements for loan closing have been completed pursuant to §371.71 of this title (relating to Loan Closing) and an exchange of debt for funds to either the applicant, an escrow agent bank, or a trust agent has occurred.
13. (13) Commission--The Texas Natural Resource Conservation Commission.
14. (14) Commitment--An action of the board evidenced by a resolution approving a request for financial assistance from the fund.

15. (15) 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.

16. (16) 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;
    3. (C) a public water system providing wholesale service, which may include operation of the system, to another public water system; or
    4. (D) an applicant owning two or more water systems that are not physically interconnected.

17. (17) Construction--Any one or more of the following activities:

    1. (A) preliminary planning to determine the feasibility of a water project;
    2. (B) engineering, architectural, environmental, legal, title, fiscal, and economic or other pertinent studies;
    3. (C) surveys, designs, plans, working drawings, specifications, procedures;
    4. (D) building or the inspection or supervision thereof; and
    5. (E) activities authorized under §371.14 of this title (relating to Other Authorized Activities).
18. (18) Construction fund--A dedicated source of funds, created and maintained by the applicant at an official depository, or a designated depository approved by the executive administrator, used solely for the purposes of construction of a project as approved by the board.
19. (19) Contaminant--Any physical, chemical, biological, or radiological substance or matter in water.
20. (20) Contract documents--The engineering description of 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.
21. (21) Corporation--A nonprofit water supply corporation created and operating under Texas Water Code Chapter 67.
22. (22) Cost-effectiveness determination--A determination based on engineering, environmental, and financial analyses that a proposed project or component part will result in the minimum total monetary (resources) costs over time, but without overriding adverse social, economic and environmental considerations.
23. (23) Debt--All bonds issued or to be issued by any political subdivision.
24. (24) Delivery--The time at which payment is made by the board to the loan recipient against the purchase price of the loan recipient's debt and at which the board takes possession of the instruments evidencing the loan recipient's debt. Delivery may occur simultaneously with a release of funds, or without release of funds pursuant to an escrow agreement.
25. (25) DWSRF--Drinking Water State Revolving Fund, a program of financial assistance administered by the board for water projects pursuant to the Act and Texas Water Code, Chapter 15.
26. (26) Eligible applicant--A collective reference to NPNC, private, and public applicants.
27. (27) Eligible NPNC applicant--A nonprofit organization that operates a public water system that is not a community water supply system.
28. (28) Eligible private applicant--Any legal entity that owns and operates a community water system that is not an eligible public applicant or a nonprofit organization as those terms are defined herein.
29. (29) Eligible public applicant--A political subdivision as defined pursuant to Texas Water Code, Chapter 15.
30. (30) Environmental determination--A finding by the executive administrator regarding the potential environmental impacts of a proposed project and describing what mitigative measures, if any, the applicant will be required to implement as a condition of financial assistance.
31. (31) Environmental information document--A written analysis prepared by the applicant describing the potential environmental impacts of a proposed project, sufficient in scope to enable the executive administrator to prepare an environmental assessment to allow an environmental determination to be made by the executive administrator.
32. (32) Environmental review--The process whereby an evaluation is undertaken by the board, consistent with the National Environmental Policy Act and other federal, state, and local laws and requirements, to determine whether a proposed project may have significant impacts on the environment and therefore require the preparation of an environmental impact statement, as detailed in §371.35 of this title (relating to Required Environmental Review and Determinations).
33. (33) EPA--The Environmental Protection Agency.
34. (34) Escrow--The transfer of funds to a custodian of the funds which will act as the escrow agent or trust agent.
35. (35) Escrow agent--The third party appointed to hold the funds which are not eligible for release to the loan recipient.
36. (36) Escrow agent bank--The financial institution which has been appointed to hold the funds which are not eligible for release to the loan recipient.
37. (37) Executive administrator--The executive administrator of the board or a designated representative.
38. (38) Financial assistance--Loans by the board from the DWSRF to eligible applicants.
39. (39) Fund--The DWSRF created pursuant to the Texas Water Code, Subchapter J, Chapter 15.
40. (40) Funding year--The particular federal fiscal year (October 1-September 30) for which funds are made available to the DWSRF.
41. (41) Intended use plan--A plan identifying the intended uses of the amount of funds available through the DWSRF for financial assistance and administrative costs for each fiscal year as described in the Act, §1452.
42. (42) Lending rate--Interest rate assessed to loan applicants for loans through the DWSRF.
43. (43) Market interest rates--Interest rates comparable to those attained for municipal securities in an open market offering.
44. (44) Municipality--A city, town, or other public body created by or pursuant to State law, or an Indian Tribe.
45. (45) 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 O.
46. (46) 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.

47. (47) Population--That 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) information in the DWSRF engineering feasibility report or 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.
48. (48) Pre-design commitment--A commitment by the board prior to completion of planning or design pursuant to §371.38 of this title (relating to Pre-Design Funding Option).

49. (49) Primary drinking water regulation--A regulation promulgated by EPA which:

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

    3. (C) specifies 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, §300f; and

    4. (D) contains 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 insure 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) siting for new facilities for public water systems.
50. (50) Priority list--A list of projects, ranked according to priority order, for which DWSRF assistance may be requested.
51. (51) Project--The scope of work describing a construction endeavor for which financial assistance is sought.
52. (52) Project engineer--The engineer or engineering firm retained by the applicant to provide professional engineering services during the planning, design, and/or construction of a project.

53. (53) Public water system--

    1. (A) In General. The system for the provision to the public of water 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 uses (consisting of drinking, bathing, and 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 use shall not be considered to be a public water system if the system or the residential or similar users of the system comply with subparagraphs (B)(ii) and (B)(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.
54. (54) Release--The time at which funds are made available to the loan recipient.

55. (55) Secondary drinking water regulation--A regulation promulgated by EPA which applies to public water systems and which specifies the maximum contaminant levels which, in the judgment of the administrator, are requisite 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.
56. (56) State--State of Texas.
57. (57) State allotment--The sum allocated to the State of Texas for a federal fiscal year, from funds appropriated by congress pursuant to the Act.
58. (58) Trust agent--The party appointed by the applicant and approved by the executive administrator to hold the funds which are not eligible for release to the loan recipient.
59. (59) Water conservation plan--A report outlining the methods and means by which water conservation may be achieved in an area, as further defined in §371.37 of this title (relating to Required Water Conservation Plan).
60. (60) 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 §371.2 adopted to be effective March 18, 1997, 22 TexReg 2502; amended to be effective October 13, 1997, 22 TexReg 9893; amended to be effective March 11, 1998, 23 TexReg 2396; amended to be effective June 10, 1998, 23 TexReg 5980; amended to be effective October 8, 1998, 23 TexReg 10042; amended to be effective December 8, 1999, 24 TexReg 10886; amended to be effective September 5, 2000, 25 TexReg 8738; amended to be effective December 4, 2001, 26 TexReg 9911.