1. (a) In General. In addition to projects funded under §371.13 of this title (relating to Projects Eligible for Assistance) the board may take each of the following actions.

   1. (1) Provide assistance to eligible applicants only in the form of a loan, for one or more of the following.

      1. (A) Any public water system described in §371.2 of this title (relating to Definition of Terms) to acquire land or a conservation easement from a willing seller or grantor, if the purpose of the acquisition is to protect the source water of the system from contamination and to ensure compliance with national primary drinking water regulations.
      2. (B) Any community water system to implement local, voluntary source water protection measures to protect source water in areas delineated pursuant to the Act, §1453, in order to facilitate compliance with national primary drinking water regulations applicable to the system under the Act, §1412 or otherwise significantly further the health protection objectives of this title. Funds authorized under this clause may be used to fund only voluntary, incentive-based mechanisms.
      3. (C) Any community water system to provide funding in accordance with the Act, §1454(a)(1)(B)(I).
   2. (2) Provide financial assistance to any public water system as part of a capacity development strategy developed and implemented in accordance with the Act, §1420(c).
   3. (3) Make expenditures from the capitalization grant of the State for fiscal years 1996 and 1997 to delineate and assess source water protection areas in accordance with §1453, except that funds set aside for such expenditure shall be obligated within four fiscal years.
   4. (4) Make expenditure from the fund for the establishment and implementation of wellhead protection programs under §1428.

2. (b) Limitation. For each fiscal year, the total amount of assistance provided and expenditures made by the board under this subsection may not exceed 15% of the amount of the capitalization grant received by the board for that year and may not exceed 10% of that amount for any one of the following activities.

   1. (1) To acquire land or conservation easements pursuant to subsection (a)(1)(A) of this section.
   2. (2) To provide funding to implement voluntary, incentive-based source water quality protection measures pursuant to subsection (a)(1)(B) of this section.
   3. (3) To provide assistance through a capacity development strategy pursuant to subsection (a)(2) of this section.
   4. (4) To make expenditure to delineate or assess source water protection areas.
   5. (5) To make expenditure to establish and implement wellhead protection programs.

Source Note:The provisions of this §371.14 adopted to be effective March 18, 1997, 22 TexReg 2502; amended to be effective October 13, 1997, 22 TexReg 9893.