1. (a) Notice of availability of funds. Because this subchapter imposes requirements greater than those in Subchapter A of this chapter (relating to General Provisions), the board generally provides lower interest rates for projects funded under Subchapter B of this chapter (relating to Provisions Pertaining to Use of Capitalization Grant Funds). The board will limit funding under this subchapter only to that dollar amount of projects reasonably necessary to meet federal requirements. The executive administrator, upon determining that it is necessary to seek projects to be funded under the requirements of this subchapter, will provide notice of availability of funds at a lower interest rate in the annual intended use plan prepared in accordance with this chapter. The executive administrator will also provide notice by direct mail to political subdivisions with projects listed above the funding line in the annual intended use plan. The notice shall invite applications for the lower interest rate funds and shall specify the approximate dollar amount of projects that the board intends to fund through this chapter.
2. (b) Refundings. The board will not provide funding under this chapter for refunding projects for which a loan has already been closed.
3. (c) Method for distribution of funds. Applications from applicants receiving a notice under subsection (a) of this section will be presented for board action on a first- come, first-served basis unless a fund shortage exists.
4. (d) Funds shortage. A fund shortage is considered to exist when on the first business day of the month of the board meeting the cumulative amount of funds previously committed pursuant to subsection (a) of this section, plus the amount of funds required to fund all applications which are complete and ready for scheduling for board action exceeds the amount of funds identified as available for such funding in the notice under subsection (a) of this section. Applications are considered to be complete and ready for board action if they meet the requirements of §375.32 of this title (relating to Required General Information), §375.33 of this title (relating to Required Legal Information), and §375.34 of this title (relating to Required Fiscal Information) and either both §375.35 of this title (relating to Required Environmental Review and Determination) and §375.36 of this title (relating to Engineering Feasibility Data) of this title or §375.39 of this title (relating to Pre-Design Funding Option).

5. (e) Scheduling of applications. Applications which are ready for scheduling for board action at the time a fund shortage occurs will be presented for board action under this chapter as follows:

   1. (1) first, applications for treatment works in the order of their priority ranking in accordance with §375.16 of this title (relating to Rating Process); and
   2. (2) next, if additional funds are available, to applications for implementing management programs for nonpoint source pollution under the Act, §319, and applications for developing and implementing conservation and management plans under the National Estuary Program under the Act, §320, in the order of the receipt of completed applications.
6. (f) Utilization of available funds. Funds will be made available to applicants under the provisions of subsections (c)-(e) of this section in the order specified until available funds identified in subsection (a) of this section, have been utilized. If funds are available under this subchapter for only part of an application, the remainder of the project may be funded under the CWSRF interest rate associated with loans under Subchapter A. Applications for projects for which no funds are available under this subchapter will be considered under Subchapter A, unless the applicant indicates it does not want to proceed under such chapter.

Source Note:The provisions of this §375.213 adopted to be effective February 11, 1999, 24 TexReg 769.