1. (a) Purpose. The purpose of this program is to expand the efforts and activities of the Texas State Soil and Water Conservation Board (State Board) and local Soil and Water Conservation Districts (SWCD/District) in the reduction of Nonpoint Source Pollution loadings in watersheds impacted by nutrients from agricultural activities. This program will promote the hauling of excess manure from animal feeding operations to certified compost facilities instead of application to land off-site of the facility and in the impacted watershed.
2. (b) Reimbursement Payment. In watershed areas specified by the State Board, expenses for hauling manure, consistent with all provisions in this section (§523.7 Incentives for Composting Animal Manure), to compost facilities certified by the Texas Commission on Environmental Quality (TCEQ) and approved by the State Board, will be paid by the State Board according to reimbursement rates established under subsection (c) of this section, Reimbursement Rates.
3. (c) Reimbursement Rates. Reimbursement rates shall be established by the State Board on a cubic yard per mile rate based on the conditions in the watershed. For the Bosque River and Upper Leon River Watershed, reimbursement will be made at $0.85 per cubic yard for the first mile and $0.125 per cubic yard for each additional mile, unless the State Board, on a case-by-case basis, grants an exception.
4. (d) Reimbursement Procedures. Reimbursement for specified hauling expenses will be paid directly to the hauler, upon submittal of expenses on reimbursement forms, approved by the State Board, to the State Board designated agent in the watershed, and upon necessary processing by the State Board and submission to the State Comptroller for payment.
5. (e) Reimbursement Forms. Reimbursement forms will be issued by the State Board and will be available, upon request from the designated agent of the State Board, in the watershed.

6. (f) Required Signatures. Reimbursement forms will provide for and require the following signatures:

   1. (1) The owner/operator of the Animal Feeding Operation (AFO) from which the load originates, certifying the location, date and volume of the load leaving the AFO.
   2. (2) The owner/operator of the certified compost facility where the load is delivered, certifying delivery, location, date and volume received.
   3. (3) The hauler, certifying delivery date, volume and mileage.
7. (g) Rejected Goods. The State Board will not reimburse hauling expenses for loads not accepted by a certified compost facility. It is the responsibility of the AFO owner/operator to arrange for acceptance by the compost facility prior to initiating delivery.
8. (h) Assistance. The owner/operator of an AFO may obtain assistance in locating haulers and certified compost facilities by contacting the designated agent of the State Board in the watershed.
9. (i) Eligible Haulers. In order to be eligible for reimbursement payments, haulers must participate in a workshop conducted by the State Board covering acceptable methods of hauling animal manure. Reimbursement will not by paid for loads hauled inconsistent with State Board approved methods.
10. (j) Designated Agent of the State Board. The local Soil and Water Conservation District will be responsible for the day-to-day activities of the project in the watershed. The local Soil and Water Conservation District may employ or contract with a person to carry out this responsibility. The location and telephone number of the designated agent will be available from the local District office or from the State Board office in Temple.

Source Note:The provisions of this §523.7 adopted to be effective May 2, 2001, 26 TexReg 3220; amended to be effective March 21, 2004, 29 TexReg 2652.