(a) In reviewing an application by a political subdivision for a grant, the board shall consider:      
        (1) the degree to which the political subdivision has used other available resources to finance the use for which the application is being made;       
        (2) the willingness and ability of the political subdivision to raise revenue;       
        (3) the commitment of the political subdivision to water conservation; and       
        (4) the benefits that will be gained by making the grant.       
      (b) To approve a grant to a political subdivision, the board must find that the grant funds will:      
        (1) supplement rather than replace money of the political subdivision;       
        (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 regional water plan or state water plan; and       
        (3) further water conservation in the state.       
      (c) Within a reasonable time after the approval of a grant application by the board, the executive administrator shall execute a written agreement with the political subdivision 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 §367.9 adopted to be effective March 9, 2004, 29 TexReg 2362