1. (a) Costs are allowable only if they are necessary expenditures for a construction-related project and are eligible for reimbursement under applicable statutes and regulations.
2. (b) Costs incurred before the execution of the local agreement or before federal and state approval and authorization to proceed are not eligible for reimbursement.
3. (c) The costs of preliminary engineering, including environmental studies and documentation, design, and plans, specifications, and estimates, are allowable costs only for projects located in communities with a population of 50,000 or less.
4. (d) Eligible pre-construction costs incurred by the department are reimbursable.
5. (e) All pre-construction costs are the responsibility of the project sponsor except as provided by this section.
6. (f) Expenditures for routine operation and maintenance are not allowable costs unless specifically allowed under the individual federal category for which the project qualifies.

Source Note:The provisions of this §11.405 adopted to be effective January 4, 2017, 41 TexReg 10664; amended to be effective December 30, 2020, 45 TexReg 9576.