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A BILL TO BE ENTITLED
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AN ACT
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relating to financial assistance provided to political |
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subdivisions by the Texas Water Development Board for nature-based |
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water quality enhancement projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 15.604(b), Water Code, is amended to |
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read as follows: |
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(b) The board shall adopt rules specifying the manner in |
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which any additional state revolving fund hereafter established by |
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the board, or any capitalization grant under the state water |
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pollution control revolving fund, the safe drinking water revolving |
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fund, or any additional state revolving fund, may be used to provide |
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financial assistance to an eligible applicant for public works. |
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Such rules shall require financial assistance to be provided for |
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the purpose or purposes and on the terms authorized by the federal |
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legislation or federal agency program under which the additional |
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state revolving fund was established or the capitalization grant |
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was awarded. To the extent not prohibited by board rule, any |
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additional state revolving fund established under this subchapter |
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may be used to provide financial assistance for projects described |
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by Section 17.280. |
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SECTION 2. Section 17.001(10), Water Code, is amended to |
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read as follows: |
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(10) "Water quality enhancement" means the |
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construction of treatment works or projects described by Section |
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17.280 by political subdivisions with loans provided by water |
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quality enhancement funds. |
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SECTION 3. Section 17.271, Water Code, is amended to read as |
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follows: |
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Sec. 17.271. PURPOSE. The purpose of this subchapter is to |
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provide for making loans of water quality enhancement funds |
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authorized by Article III, Sections 49-d-1, 49-d-2, 49-d-6, and |
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49-d-7, of the Texas Constitution to political subdivisions of the |
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state for water quality enhancement [the construction of treatment |
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works]. |
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SECTION 4. Section 17.272, Water Code, is amended to read as |
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follows: |
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Sec. 17.272. FINANCIAL ASSISTANCE. The board may use water |
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quality enhancement funds to provide financial assistance to |
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political subdivisions for purposes of water quality enhancement, |
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including projects proposed under the water resource restoration |
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program established under Section 17.280. |
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SECTION 5. Section 17.274, Water Code, is amended by adding |
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Subsection (b) to read as follows: |
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(b) An application for financial assistance administered |
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through the water resource restoration program established under |
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Section 17.280 must include a copy of a resolution approving the |
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proposed project adopted by the governing body of a municipality or |
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special purpose district or the commissioners court of a county in |
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which the proposed project is to be located. |
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SECTION 6. Section 17.275, Water Code, is amended to read as |
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follows: |
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Sec. 17.275. CONSIDERATIONS IN PASSING ON APPLICATION. In |
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passing on an application from a political subdivision for |
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financial assistance for water quality enhancement purposes, the |
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board shall consider: |
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(1) the water quality needs of the waters into which |
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effluent from the treatment works will be discharged, the benefit |
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of the treatment works to such water quality needs, the |
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relationship of the treatment works to the overall, statewide water |
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quality needs; and the relationship of the treatment works to water |
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quality planning for the state; |
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(2) the availability of revenue to the political |
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subdivision, from all sources, for the ultimate repayment of the |
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cost of the treatment works, including interest; [and] |
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(3) whether the political subdivision has been |
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designated, pursuant to Section 26.082 of this code, to provide a |
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regional system to serve all or part of the waste disposal needs of |
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a defined area, the development of such systems being the declared |
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policy of the legislature; and |
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(4) whether the political subdivision proposes a |
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project through the water resource restoration program established |
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under Section 17.280. |
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SECTION 7. Section 17.279, Water Code, is amended to read as |
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follows: |
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Sec. 17.279. LIMITATION ON USE OF FUNDS. If there is |
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insufficient money available to fund all applications under this |
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subchapter, the board shall give preference to applications for |
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political subdivisions that: |
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(1) the board finds cannot reasonably finance the |
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treatment works without assistance from the state; |
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(2) propose a project through the water resource |
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restoration program established under Section 17.280 that provides |
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a significant improvement to water quality in the relevant |
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watershed; or |
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(3) propose a project through the water resource |
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restoration program established under Section 17.280 that affects a |
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disadvantaged community, as determined by board rule. |
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SECTION 8. Subchapter F, Chapter 17, Water Code, is amended |
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by adding Section 17.280 to read as follows: |
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Sec. 17.280. WATER RESOURCE RESTORATION PROGRAM. (a) In |
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this section: |
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(1) "Program" means the water resource restoration |
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program. |
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(2) "Project" means nature-based infrastructure that |
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will improve water quality in the political subdivision where the |
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project is located and includes the acquisition of real property |
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and the use of nature-based water treatment technologies. |
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(b) The board shall establish and administer the water |
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resource restoration program to assist in enhancing water quality |
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in the state through the provision of financial assistance to |
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political subdivisions for locally directed projects. |
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(c) The board will create an option to bundle a water |
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resource restoration project with a state revolving fund project so |
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the total cost of both projects to the applicant will be no more |
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than the cost of the state revolving fund project alone. |
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(d) A proposed project must be compatible with the goals of |
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the program and include the application of best management |
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practices for the primary purpose of water quality protection and |
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improvement. A proposed project may include: |
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(1) the preservation or restoration of regional scale |
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natural landscape features, including forests, floodplains, and |
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wetlands; |
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(2) practices that reduce impervious cover in a |
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watershed; |
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(3) practices that increase water infiltration and |
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retention, including the use of bioretention, trees, green roofs, |
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permeable pavements, rain gardens, constructed wetlands, and |
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cisterns; |
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(4) the implementation of green streets in public |
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rights-of-way; |
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(5) the implementation of a comprehensive street tree |
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or urban forestry program to manage stormwater and enhance tree |
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health; |
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(6) the expanded use of tree box filters; |
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(7) stormwater collection and distribution systems, |
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including cisterns, separate stormwater sewer systems, and |
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downspout disconnection systems that use onsite stormwater |
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management and remove stormwater from sewer systems; |
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(8) soil quality enhancement activities; |
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(9) the removal and replacement of turf with native |
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grasses and vegetation that improve water infiltration; |
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(10) the establishment or restoration of permanent |
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riparian buffers, floodplains, wetlands, and other natural |
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features including vegetative buffers, grass swales, soft |
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bioengineered stream banks, and stream daylighting; |
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(11) the management of wetlands to improve water |
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quality and support water infiltration and retention; and |
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(12) sustainable landscaping to improve hydrologic |
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processes. |
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(e) A proposed project may not include: |
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(1) passive recreation activities and trails |
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including bike trails, playgrounds, athletic fields, picnic |
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tables, and picnic grounds; |
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(2) non-permeable surface parking lots; |
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(3) stormwater ponds or dirt-lined detention basins |
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that serve an extended or filtration function; |
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(4) in-line and end-of-pipe treatment systems that |
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only filter or detain stormwater without the use of natural plants |
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and trees; |
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(5) underground stormwater control and treatment |
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devices, including hydrodynamic separators, baffle systems for |
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grit, trash removal, and oil and grease separators; |
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(6) stormwater conveyance systems, including pipes |
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and concrete channels, that are not soil or vegetation based; |
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(7) hardening, channelizing, dredging, or |
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straightening streams or stream banks; |
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(8) street sweepers, sewer cleaners, and vacuum trucks |
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unless they support nature-based infrastructure projects; and |
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(9) supplemental environmental projects required as a |
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part of a consent decree. |
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(f) A project may not include the acquisition of property, |
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an interest in property, or improvements to property through the |
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use of eminent domain. |
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(g) The board shall adopt rules to establish a means of |
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prioritizing projects in disadvantaged communities. The board |
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shall include the following criteria to determine whether a |
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political subdivision seeking financing under this section is a |
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disadvantaged community: |
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(1) median household income in the community as a |
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percentage of statewide household income; |
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(2) annual water and sewer rates as a percentage of |
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median household income in the community; |
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(3) families below the poverty level in the community |
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as a percentage of the statewide number of families below the |
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poverty level; |
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(4) per capita outstanding debt of the wastewater |
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system serving the community as a percentage of median household |
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income in the community; and |
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(5) cost-effectiveness calculated by determining |
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construction costs of the proposed project per user. |
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(h) An application for the financing of a project under this |
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section must include a viability assessment that includes: |
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(1) the ability of the applicant to provide proper |
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oversight and management through a certified operator; and |
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(2) the financial ability of the users to support the |
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long-term maintenance of the project. |
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(i) The board shall adopt rules necessary for the |
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implementation and administration of this section. |
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SECTION 9. Not later than September 1, 2022, the Texas Water |
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Development Board shall adopt rules necessary to implement Section |
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17.280, Water Code, as added by this Act. |
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SECTION 10. This Act takes effect September 1, 2021. |