(a) For purposes of funding priority projects under the coastal erosion response account (Account), a project cooperation agreement must be executed between the General Land Office (GLO) and a qualified project partner. A potential project partner becomes a qualified project partner by entering into a project cooperation agreement with the GLO. The GLO must explicitly describe in the project cooperation agreement the terms and conditions under which the GLO will provide funds from the Account for the project.
(b) The project cooperation agreement must provide for management of the project by either the GLO or by the qualified project partner. The GLO, in its sole discretion, may determine whether:
  (1) the project will be managed by the GLO, with payment to the GLO by the qualified project partner of the required percentage of the shared project cost; or
  (2) the project will be managed by the qualified project partner with reimbursement from the Account to the qualified project partner for project expenses for work completed in the amount provided in the project cooperation agreement.
(c) The project cooperation agreement must include the terms of the qualified project partner's commitment to provide the required percentage of shared project cost, provide the total project budget to the extent this it is known, and identify the funding sources and the amounts that will be used as a partner’s cost share or the basis of in-kind services that will be used to offset the authorizations that have been obtained or will be required to construct the project, as specified below in subsection (j).
(d) If the GLO determines that a priority project requested by a qualified project partner receives a change in funding from the Account or project terms, the GLO and the qualified project partner will amend the project cooperation agreement to reflect those changes.
(e) Except as provided in Texas Natural Resources Code, §33.603(f) and (h), qualified project partners are required to provide a minimum specified percentage amount of the shared project costs as prescribed by Texas Natural Resources Code, §33.603(e) specified below:
  (1) at least 25 percent of the shared project cost, as compared to the Account’s contribution, if the project is a beach nourishment and associated enhancement project on a public beach or bay shore; and
  (2) at least 40 percent of the shared project cost, as compared to the Account’s contribution, if the project is any other coastal erosion response study or project, including the following examples:
    (A) a marsh restoration or enhancement project; or
    (B) a bay shoreline protection project other than a beach nourishment project.
(f) The state's portion of the shared project cost for erosion response demonstration projects undertaken or funded pursuant to Texas Natural Resources Code §33.603(g) is limited to one-tenth of the total amount appropriated to the GLO for coastal erosion planning and response during the state fiscal biennium for which funding is sought.
(g) The GLO may, pursuant to Texas Natural Resources Code §33.603(f), undertake at least one erosion response project each biennium without requiring a qualified project partner to provide a portion of the shared project cost if the total cost of projects that do not have a cost share requirement does not exceed one-half of the total amount appropriated to the GLO for coastal erosion planning and response during the state fiscal biennium.
(h) The GLO may determine the percentage of the shared project cost a qualified project partner must provide for a project undertaken pursuant to Texas Natural Resources Code §33.603(b)(11), (12), or (13) for the removal of debris, removal and relocation of structures from the public beach through reimbursement of expenses or purchase of property, and the acquisition of property necessary for the construction, reconstruction, maintenance, widening, or extension of an erosion response project under this subchapter.
(i) No costs incurred by a potential project partner before becoming a qualified project partner may be used to offset the cost-sharing requirement under CEPRA.
(j) In-kind goods or services provided by the qualified project partner after entering into a project cooperation agreement with the GLO may offset the partner’s required portion of the shared project costs, if the qualified project partner provides the GLO with a reasonable basis for estimating the monetary value of those goods or services. The decision on whether to allow any in-kind good or service to offset the cost-sharing requirement is in the sole discretion of the GLO. The project cooperation agreement must reflect any in-kind goods or services approved by the GLO.
(k) Local governments that receive financial assistance from the state to clean and maintain public beaches fronting the Gulf of Mexico under Chapter 25 of this title, relating to Beach Cleaning and Maintenance Assistance Program, will not be allowed to use funds received under that program to meet the cost-sharing requirement.

Source Note: The provisions of this §15.42 adopted to be June 12, 2019, 44 TexReg 2843