The following words and terms, when used in this division, shall have the following meanings, unless the context clearly indicates otherwise. Unless defined in this subchapter, words defined in the Texas Water Code, Chapters 15, 16, or 17 shall have the meanings provided therein.     
       (1) Adjusted median household income--The annual median household income identified in the most recent U.S. Census from the closest applicable census tract multiplied by the current Texas Consumer Price Index divided by the most recent decennial Texas Consumer Price Index.      
       (2) Applicant--A political subdivision that requests financial assistance from the board.      
       (3) Average yearly sewer bill--The number that is derived by multiplying the average number of persons per occupied household in the service area of the applicant by 1,279 gallons multiplied by the monthly sewer rate of the applicant multiplied by 12. The proposed monthly sewer rate shall include the cost of the proposed project. If taxes, surcharges or other fees are used to subsidize the sewer system, the average annual amount per household may be included in calculating the average yearly sewer bill.      
       (4) Average yearly water bill--The number that is derived by multiplying the average number of persons per occupied household in the service area of the applicant by 2,325 gallons multiplied by the proposed monthly water rate multiplied by 12. The proposed monthly water rate shall include the cost of the proposed project. If taxes, surcharges or other fees are used to subsidize the water system, the average annual amount per household may be included in calculating the average yearly water bill.      
       (5) Combined household cost factor--The number that is derived by adding the average yearly water bill with the average yearly sewer bill and dividing by the adjusted median household income.      
       (6) Disadvantaged area--An area that:                (A) has a permanent residential population of 5,000 or less; and                 (B) has an adjusted median household income which is no more than 75% of the median state household income for the most recent year for which statistics are available; and                    (i) if the service area is not charged for sewer services, has a household cost factor for water rates that is greater than or equal to 1.0%; or                     (ii) if the service area is charged for water and sewer services, has a combined household cost factor for water and sewer rates that is greater than or equal to 2.0%.          
       (7) Economically distressed area--An area which is a disadvantaged area and in which inadequate water or sewer services exist.      
       (8) Household cost factor--The number that is derived by dividing the average yearly water bill by the adjusted median household income.      
       (9) Inadequate water service--Water supply services which:                (A) from a community water system, do not provide drinking water of a quality that meets the standards set forth by the commission in 30 TAC §§290.1 - 290.26, 30 TAC §§290.38 - 290.51, and any applicable standards of any governmental unit with jurisdiction over such area;                 (B) from individual wells, after treatment, do not provide drinking water of a quality that meets the standards set forth by the commission in 30 TAC §§290.3, 290.4, 290.10, and 290.13, and any applicable standards of any governmental unit with jurisdiction over such area; or                 (C) do not exist or are not provided.        
       (10) Inadequate sewer service--Sewer services which:                (A) from any organized sewage collection and treatment facilities, do not comply with the standards and requirements set forth by the commission in 30 TAC Chapter 305;                 (B) for on-site sewerage facilities, do not comply with the standards and requirements set forth by the commission in 30 TAC Chapter 285 and 313; or                 (C) do not exist or are not provided.        
       (11) Political subdivision--A city, county, district or authority created under Article III, Section 52, or Article XVI, Section 59, of the Texas Constitution, any other political subdivision of the state, and any nonprofit water supply corporation created and operating under Water Code, Chapter 67.      
     Source Note:        The provisions of this §363.1102 adopted to be effective May 11, 2004, 29 TexReg 4547