Texas Administrative Code › Title 31 - NATURAL RESOURCES AND CONSERVATION › Part 10 - TEXAS WATER DEVELOPMENT BOARD › Chapter 354 - MEMORANDA OF UNDERSTANDING › Section 354.3 - Memorandum of Understanding Between the Texas Water Development Board and the Texas Natural Resource Conservation Commission

Current through Reg. 49, No. 28; July 12, 2024
(a) In 1996, the U.S. Congress found that the
				requirements of the Safe Drinking Water Act,
				42
				U.S.C.300 et seq. (SDWA) exceeded the
				financial and technical capacity of some public water systems and that States
				needed increased financial resources and appropriate flexibility to ensure the
				prompt and effective development and implementation of drinking water programs.
				To this end, Congress enacted the Safe Drinking Water Act Amendments of 1996
				(PL
				104-182) (Amendments of 1996) which provides for
				water protection programs, changes to regulatory programs, small systems
				technology and funding for States and water systems. The Amendments provide for
				the establishment of drinking water treatment revolving loan funds (DWSRF) by
				states in order to receive capitalization grants through the United States
				Environmental Protection Agency (USEPA) for the purpose of furthering the
				health protection objectives of the SDWA. To be eligible to receive a grant, a
				State must establish a DWSRF and comply with the provisions of the Amendments
				of 1996.
(b) The Texas Water
				Development Board (board) provides financial assistance for the construction of
				water facilities and pursuant to the terms of Chapter 15, Section
				15.602(1)
				Texas Water Code, is authorized to establish an additional state revolving fund
				to provide financial assistance to eligible applicants for public works in
				accordance with capitalization grant program requirements established by a
				federal agency.
(c) Texas Natural
				Resource Conservation Commission (commission) through the "primacy" approval
				granted the State of Texas in 1978 is responsible for implementing the drinking
				water regulatory scheme established by the Safe Drinking Water Act and for
				enforcing the national drinking water standards set by USEPA. The commission is
				also charged with the administration of Chapter 341, Subchapter C of the Health
				and Safety Code to ensure safe and adequate sources of drinking water from
				public water systems.
(d) The
				commission and board (parties) now intend to enter into a Memorandum of
				Understanding (MOU) pursuant to the authority, respectively, of Chapter 5,
				Section 5.104 and Chapter 6, Section
				6.104,
				Texas Water Code, for the purpose of seeking out the respective duties and
				responsibilities of the Parties and to improve the efficiency and effectiveness
				of the board and commission operations in administering the provisions of the
				Amendments of 1996.
(1) The board will manage
				the financial administration of the DWSRF pursuant to State and Federal laws
				and will ensure compliance with the USEPA programmatic requirements for the
				DWSRF program.
(2) The commission
				will establish assistance priorities for the use of funds from the DWSRF and
				will provide the board with all information and reports necessary for the
				board's compliance with the USEPA programmatic requirements of the DWSRF
				program.
(3) The board will be
				responsible for the following activities under this MOU:
(A) prepare and adopt rules, and establish
				and maintain accounts necessary for the financial administration of the
				DWSRF;
(B) prepare and enter into
				capitalization grant agreements with USEPA;
(C) annually prepare contracts to be entered
				into by the board and commission which provide for the transfer of set-aside
				funds to the commission;
(D)
				communicate applicable Federal audit requirements to the commission;
(E) prepare and submit to USEPA project
				priority lists and annual intended use plans consistent with the priority
				system developed by the commission;
(F) act on applications for assistance, and
				draw down federal funds and transfer construction funds to assistance
				recipients;
(G) prepare and submit
				to USEPA biennial reports on the DWSRF;
(H) participate in annual DWSRF audits and
				USEPA oversight efforts;
(I) review
				and approve engineering plans and specifications for DWSRF funded water
				projects in conformance with the Letter of Agreement between the board and
				commission dated September 21, 1992;
(J) provide technical assistance to potential
				applicants seeking access to the DWSRF;
(K) assume responsibility for administering
				each loan project funded from the DWSRF;
(L) provide the required 20% State matching
				funds for the DWSRF capitalization grant to the extent that State law allows
				for the use of both appropriated funds and bond proceeds for such intended
				purpose; and
(M) serve as the
				official public contact for the State of Texas with regard to all DWSRF related
				activities.
(4) The
				commission will be responsible for the following activities under this MOU:
(A) develop and provide to the board a system
				for establishing assistance priorities;
(B) provide the one to one matching funds for
				all §1452(g)(2) set aside activities;
(C) provide to the board planning information
				as may reasonably be required for the board to prepare and submit intended use
				plans and biennial reports to the USEPA, including projections for the uses of
				funds and documentation that match requirements, when applicable, have been
				met;
(D) develop and submit to
				USEPA, programmatic elements as required to maximize capitalization of the
				DWSRF with evidence of the submittal provided to the board;
(E) cooperate with the board in developing
				any information necessary to complete the annual capitalization grant
				application, the Annual Report or any audits as required;
(F) establish adequate fund accounting as
				necessary to administer funds transferred from the DWSRF to the commission;
				and
(G) establish financial
				accountability procedures that meet applicable federal accountability
				requirements;