(a) In reviewing a grant applications by a state agency, the board shall consider the following:      
        (1) the commitment of the state agency to water conservation; and       
        (2) the benefits that will be gained by making the grant.       
      (b) Prior to approving a grant to a state agency, the board shall find that the grant funds will:      
        (1) supplement rather than replace money of the state agency;       
        (2) serve the public interest. In making this finding the board shall include a finding that the grant will assist in the implementation of a water conservation water management strategy identified in the most recent applicable approved regional water plan or state water plan; and       
        (3) the grant will further water conservation in the state.       
      (c) If a state agency is applying for funds that have been provided by legislative appropriation for such state agency, the board shall review the application according to the terms of the legislative appropriation. To approve such grant, the board shall make any determinations required by the legislative language.     
      (d) Within a reasonable time after the approval of a grant application by the board, the executive administrator shall execute a written agreement with the state agency that specifies the manner in which the grant funds will be provided and such other terms and conditions as the executive administrator determines are reasonable and necessary to fulfill the purpose and intent of this chapter.     
     Source Note:        The provisions of this §367.8 adopted to be effective March 9, 2004, 29 TexReg 2362