(a) The board may provide grants from the Water Loan Assistance Fund for projects that include supplying water or wastewater service to areas in which:
  (1) water supply services:
    (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, including a temporary interruption of service due to emergency conditions; and
    (D) the financial resources are inadequate to provide water supply or sewer services that meet the standards and requirements of the commission as set forth herein; or
  (2) sewer services:
    (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, including a temporary interruption of service due to emergency conditions; and
    (D) the financial resources are inadequate to provide water supply or sewer services that meet the standards and requirements of the commission as set forth herein; or
  (3) for purposes of any federal funds for colonias deposited in the water assistance fund, such area meets the federal criteria for use of such funds.
(b) The board may also provide grants from the Water Loan Assistance Fund for projects:
  (1) for which federal grant funds are placed in the loan fund;
  (2) for which a specific legislative appropriation is made; or
  (3) for desalination, brush control, weather modification, and regionalization and for providing regional water quality enhancement services as defined by board rule, including regional conveyance systems.
(c) Grant funds will be administered according to the terms of an agreement between the board and the grantee.

Source Note: The provisions of this §363.17 adopted to be effective August 17, 1994, 19 TexReg 6114; amended to be effective February 16, 1999, 24 TexReg 766; amended to be effective December 7, 1999, 24 TexReg 10882; amended to be effective November 5, 2002, 27 TexReg 10396