1. (a) Escrow of funds. The executive administrator may deposit funds into an escrow account at the time of closing of the financial assistance. Releases from an escrow account shall occur sequentially as described in subsection (c) of this section or in accordance with phasing required for the applicable project. The Applicant shall submit outlays for all expenses incurred.
2. (b) Reimbursement method of accessing funds. DWSRF financial assistance is available for disbursement under a reimbursement method unless the executive administrator approves the deposit of funds into an escrow account at the closing of the financial assistance, as appropriate. The executive administrator shall reimburse the Applicants' expenditures upon the receipt of an outlay report supported by detailed invoices of expenditures or the executive administrator may issue a written authorization for the release of funds from an escrow account based on the receipt of outlay reports supported by detailed invoices of expenditures. The outlays and the releases from an escrow account shall be consistent with the approved project schedule.

3. (c) Sequence of availability of funds. Financial assistance shall be available for disbursement in the following sequence:

   1. (1) for planning and permitting costs, after receipt of executed contracts for the planning or permitting phase, and after approval of a water conservation plan;
   2. (2) for design costs, after receipt of executed contracts for design, after approval of an engineering feasibility report and after the Board's approval of the environmental review; and
   3. (3) for construction costs, after issuance of any applicable permits, after contract documents, including plans and specifications are approved and executed construction documents are contingently awarded.

4. (d) Outlay reports. Applicants shall submit outlay reports supported by detailed invoices for incurred costs as the project progresses in accordance with the project schedule. Applicants shall submit outlay reports, in a form determined by the executive administrator, as follows:

   1. (1) for financial assistance for planning, acquisition and design, quarterly; and
   2. (2) for financial assistance for construction, monthly.
5. (e) Environmental affirmation. Prior to the executive administrator's approval of the release of financial assistance for design, acquisition, and construction or for a pre-design funding option project, the executive administrator shall summarize the project's environmental review and inform the Board of any environmentally related mitigation measures recommended for the project. The Board may elect to affirm or alter the conditions of the original commitment or withdraw the commitment to the Applicant based upon the environmental review and mitigation measures. The executive administrator may withhold or limit the release of financial assistance pending satisfactory completion of the project's environmental review.
6. (f) Consistency for project schedules and outlays. The executive administrator shall require that projects proceed in accordance with approved project schedules as closely as possible, and that outlays are submitted as required in subsection (d) of this section.

Source Note:The provisions of this §371.72 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.