(a) INTRODUCTION.
  (1) The Texas Water Development Board (TWDB) provides financial assistance for the construction, acquisition, or improvement of water supply projects, and therefore performs engineering reviews and analyses of water supply projects constructed with state or federal funds administered by the TWDB. The Texas Commission on Environmental Quality (Commission) through its regulatory authority conducts a similar review and analyses of the water supply projects financed by the TWDB.
  (2) Since September 21, 1992, the TWDB and the Commission have coordinated the reviews related to the design criteria for public water systems and wastewater facility construction in a Letter of Agreement (LOA or Agreement). The LOA was last revised June 20, 2001 to reflect changes in statute related to the review of wastewater facilities. This Agreement is implemented to replace all prior and existing LOAs in effect with the Commission and its predecessor agencies, and to accurately reflect the current interaction between the TWDB and the Commission during the coordinated review of water supply projects seeking financing from the TWDB.
(b) SCOPE OF AGREEMENT.
  (1) The TWDB will review submitted "Plans and Specifications," as defined herein, for water supply projects seeking financing from the TWDB in a manner that will satisfy the Commission’s requirements related to the design of public water systems.
  (2) The Commission agrees to accept TWDB review of Plans and Specifications in lieu of its review for certain water facilities as described under the "Coordinations" section herein.
(c) DEFINITIONS. "Plans and Specifications" means construction drawings and construction specifications, and engineering design calculations required by Commission rules on design criteria for public water systems. The term also includes construction contract change orders.
(d) LIMITS AND EXCLUSIONS.
  (1) This Letter of Agreement is applicable only to projects that receive financing from the TWDB and require coordination with the Commission.
  (2) Only the Commission may grant conditional approvals and variances to its requirements relating to the review and processing of Plans and Specifications for public water facilities.
  (3) The TWDB's review and administration of a water supply project will not serve as an approval of an application for any permit, which is regulated by the Commission.
(e) COORDINATIONS.
  (1) The TWDB will coordinate the review of Plans and Specifications with the Commission on water supply projects financed by the TWDB that involve the construction of, or improvements to, surface water treatment plants, public water supply wells, new interconnections, disinfection, and treatment projects. For these water supply projects, the TWDB and Commission agree to rely on the TCEQ Letter of Approval of Plans and Specifications for design criteria.
  (2) Plans and Specifications for other water supply projects financed by the TWDB will be reviewed only by the TWDB. The TWDB will review Plans and Specifications of water supply projects for public water systems financed by the TWDB to ensure satisfaction of the Commission's requirements related to public water systems and provide TCEQ a courtesy copy of the TWDB approval for compliance purposes.
  (3) For all water supply projects reviewed for financing by the TWDB requiring coordination with the Commission, the TWDB will prepare a single document signifying the TWDB's approval of the underlying Plans and Specifications. The TWDB will send one (1) copy of its approval document to the applicant and one (1) copy of its approval document to the Commission.
  (4) Following approval of all water supply project Plans and Specifications, the TWDB will proceed, in accordance with applicable rules and requirements, with construction monitoring.
(f) EXECUTION, ADOPTION, AND MODIFICATION. This Agreement is effective when signed by the designated representatives of both the TWDB and Commission. This Agreement is subject to approval of the Board of the TWDB. This Agreement may be modified by mutual and written consent of the parties.
(g) DURATION. The Agreement shall continue in full force and effect until cancelled or superseded by either party. The party requesting cancellation shall give 90-days written notice of intent to cancel and shall advise the other party in writing of the reasons for cancellation.
(h) SEVERANCE PROVISION. Should any one or more provisions of this Agreement be held to be null, void, or for any reason without force or effect, such provision(s) shall be construed as severable from the remainder of this Agreement and shall not affect the validity of all other provisions of this Agreement, which shall remain in full force and effect.
(i) IN WITNESS THEREOF the parties hereto cause this Letter of Agreement to be duly executed.
(j) Signed on July 1, 2015.

Source Note: The provisions of this §354.5 adopted to be effective November 13, 2016, 41 TexReg 8827