The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Words defined in the Texas Water Code, Chapter 15, 16 or 17, and not defined here shall have the meanings provided by the appropriate Texas Water Code chapter.
  (1) Acquisition--The Applicant obtaining interests in land for the purposes of locating eligible project components.
  (2) Act--The Federal Safe Drinking Water Act, 42 U.S.C. §300f et seq.
  (3) Alternative Delivery Guidance--A document prepared by the Board after public review and comment and reviewed periodically that identifies alternative methods of project delivery available to applicants for financial assistance and the requirements for utilizing an alternative delivery method.
  (4) Applicant--The entity applying for financial assistance from the DWSRF including:
    (A) the entity that receives the financial assistance; and
    (B) the entity legally responsible to repay the debt.
  (5) Application--The information and supporting documentation submitted by or on behalf of the Applicant that may be used for commitment for financial assistance from the DWSRF or that the executive administrator determines must be completed for consideration for financial assistance from the DWSRF.
  (6) Authorized representative--The signatory agent authorized and directed by the Applicant's governing body to file the application and to sign documents relating to the project, on behalf of the Applicant.
  (7) Board--The Texas Water Development Board.
  (8) Bonds--All bonds, notes, certificates of obligation, and book-entry obligations authorized to be issued by any political subdivision.
  (9) Bypass--To pass over a higher ranked project in favor of a lower ranked project to ensure that funds available are utilized in a timely manner, to select an interrelated project, or to meet statutory and capitalization grant requirements as delineated in the applicable IUP.
  (10) Capitalization grant--The federal grant funds awarded annually by the EPA to the State for capitalization of the DWSRF.
  (11) Certification of Trust--An instrument executed by a home-rule municipality pursuant to Chapter 104, Local Government Code, governing the management of the financial assistance proceeds in accordance with §114.086, Texas Property Code.
  (12) Closing--The exchange of the Applicant's approved debt instruments for DWSRF financial assistance.
  (13) Commission--The Texas Commission on Environmental Quality.
  (14) Commitment--An offer by the Board to provide financial assistance to an Applicant as evidenced by a Board resolution.
  (15) Community water system--A public water system that:
    (A) serves at least 15 service connections used by year-round residents of the area served by the system; or
    (B) regularly serves at least 25 year-round residents.
  (16) Consolidation--Any one of the following activities:
    (A) a public water system acquiring another public water system;
    (B) a public water system providing retail service to another public water system; or
    (C) a public water system providing wholesale service, which may include operation of the system, to another public water system.
  (17) Construction account--A separate account created and maintained for the deposit of financial assistance and utilized by the Applicant to pay eligible expenses for the project.
  (18) Construction phase--The erection, acquisition, alteration, remodeling, rehabilitation, improvement, extension, or other man-made change necessary for an eligible project or activity.
  (19) Contaminant--Any physical, chemical, biological, or radiological substance present in water.
  (20) Contract documents--The engineering documentation relating to the project including engineering drawings, maps, technical specifications, design reports, instructions, and other contract conditions and forms that are in sufficient detail to allow contractors to bid on the work.
  (21) Davis-Bacon Act--The federal statute at 40 U.S.C. §3141 et seq. and in conformance with the U.S. Department of Labor regulations at 29 CFR Part 5 (Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction) and 29 CFR Part 3 (Contractors and Subcontractors on Public Building or Work Financed in Whole or in Part by Loans or Grants from the United States).
  (22) Debt--All bonds or other documents issued or to be issued by any political subdivision or eligible Applicant pledging repayment of the Board's financial assistance.
  (23) Design--The project phase during which the project design documents are prepared by the Applicant. Documents may include design surveys, plans, working drawings, specifications, and any procedures and protocols to be used during the construction of the project.
  (24) Disadvantaged community--A community that meets the affordability criteria based on income, unemployment rates, and population trends. Specifically, the service area of an eligible applicant, the service area of a community that is located outside the entity's service area, or a portion within the entity's service area if the proposed project is providing new service to existing residents in unserved areas; and meets the following affordability criteria: (a) has an annual median household income that is no more than 75 percent of the state median household income using an acceptable source of socioeconomic data, and (b) the household cost factor that considers income, unemployment rates, and population trends must be greater than or equal to one percent if only water or sewer service is provided or greater than or equal to two percent if both water and sewer service are provided. The required data and calculations of the household cost factor are specified in the IUP under which the project would receive funding.
  (25) Disaster--The occurrence or imminent threat of widespread or severe damage, injury, or loss of life or property resulting from any natural or man-made cause, including fire, flood, earthquake, wind, storm, wave action, oil spill or other water contamination, volcanic activity, epidemic, air contamination, blight, drought, infestation, explosion, riot, hostile military or paramilitary action, extreme heat, other public calamity requiring emergency action, or energy emergency as defined in Texas Government Code §418.004.
  (26) Drinking Water State Revolving Fund (DWSRF)--The financial assistance program authorized by Texas Water Code, Chapter 15, Subchapter J in accordance with the Act.
  (27) Eligible Applicant--Any of the following entities:
    (A) a nonprofit noncommunity water system;
    (B) a nonprofit community water system;
    (C) a political subdivision that is a municipality, intermunicipal, interstate or state agency, or a nonprofit water supply corporation created and operating under Chapter 67 of the Texas Water Code;
    (D) privately-owned community water system; or
    (E) any other entity eligible under federal law to receive funds from the DWSRF.
  (28) Engineering feasibility report--Those necessary plans and studies that directly relate to the project and that are needed in order to assure compliance with the enforceable requirements of the Act and state statutes.
  (29) EPA--The United States Environmental Protection Agency or a designated representative.
  (30) Equivalency projects--Those funded projects that must follow all federal cross-cutter requirements.
  (31) Escrow account--A separate account maintained by an escrow agent until such funds are eligible for release to the construction account.
  (32) Escrow agent--Any of the following:
    (A) a state or national bank designated by the comptroller as a state depository institution in accordance with Texas Government Code Chapter 404, Subchapter C;
    (B) a custodian of collateral as designated in accordance with Texas Government Code Chapter 404, Subchapter D; or
    (C) a municipal official responsible for managing the fiscal affairs of a home-rule municipality in accordance with Texas Local Government Code Chapter 104.
  (33) Executive administrator--The executive administrator of the Board or a designated representative.
  (34) Expiration date--The date on which the Board's offer of financial assistance is no longer open or valid and by which a Closing must occur.
  (35) Financial assistance--Funding made available to eligible Applicants as authorized in 40 CFR §35.3525, including principal forgiveness.
Cont'd...