1. (a) Method of accessing funds. Applicants shall submit an outlay report supported by detailed invoices of expenditures for reimbursement of past costs or for releases from an escrow or trust account, as applicable. The outlays and the releases from escrow or trust account shall be consistent with the approved project schedule.

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

3. (c) Outlay reports. Applicants shall submit outlay reports, in a form determined by the executive administrator, as follows:

   1. (1) at loan closing for incurred costs;
   2. (2) for financial assistance for planning, acquisition and design, quarterly; and
   3. (3) for financial assistance for construction, monthly.
4. (d) Environmental affirmation. The release of federal funds for design, acquisition, and construction or for a pre-design funding option project shall not occur until the executive administrator summarizes the project's environmental review and informs the Board about recommended mitigation measures. The Board may affirm or alter the conditions of the original commitment or withdraw the commitment based upon the environmental review and mitigation measures.
5. (e) Escrow of funds. The executive administrator may release funds to an escrow or trust account at the time of closing of the loan or closing of a portion of the loan. Releases from escrow shall occur sequentially as described in subsection (b) of this section. The Applicant shall submit outlays for all expenses incurred for the prior sequence of work prior to the release of funds for the next sequence of work.
6. (f) Consistency for project schedules and outlays. The executive administrator shall ensure that projects proceed in accordance with approved project schedules as closely as possible, and that outlays are submitted as required in subsection (c) of this section.

Source Note:The provisions of this §375.92 adopted to be effective September 8, 2010, 35 TexReg 8126.