(a) The State Board hereby establishes:
  (1) criteria for accepting project proposals; and
  (2) a system to prioritize projects for each funding cycle, giving priority to projects that balance the most critical water conservation need and the highest projected water yield.
(b) The criteria required by subsection (a)(1) of this section includes a requirement that each proposal state the projected water yield of the proposed project, as modeled by a person with expertise in hydrology, water resources, or another technical area pertinent to the evaluation of water supply.
(c) The State Board shall consult with stakeholders, including hydrologists and representatives from SWCDs to develop standard methods of reporting the projected water yield described in subsection (b) of this section. A standard method of reporting the projected water yield in feasibility studies allows for a direct comparison of potential benefits between proposed projects. The projected water yield for the brush treatment scenarios for each sub-basin shall be reported in a feasibility study as the average annual gallons of water yielded per treated acre of brush, averaged over the simulation period used in the computer model.
(d) In prioritizing projects under subsection (a)(2) of this section, the State Board shall consider:
  (1) the need for conservation of water resources within the territory of the project based on the state water plan adopted under §16.051, Water Code;
  (2) the projected water yield of areas of the project, based on soil, slope, land use, types and distribution of trees, brush, and other vegetative matter, and proximity of trees, brush, and other vegetative matter to rivers, streams, and channels;
  (3) any method the project may use to control brush;
  (4) cost-sharing contract rates within the territory of the project;
  (5) the location and size of the project;
  (6) the budget of the project and any associated requests for grant funds submitted under this subchapter;
  (7) the implementation schedule of the project; and
  (8) the administrative capacities of the State Board and the entity that will manage the project.
(e) In prioritizing projects under subsection (a)(2) of this section the State Board may consider:
  (1) scientific research on the effects of brush removal on water supply; and
  (2) any other criteria that the State Board considers relevant to assure that the water supply enhancement program can be effectively, efficiently, and economically implemented.
(f) Ranking Index Methodology.
  (1) Funding for project proposals will be allocated through a competitive grant process that will rank applications using the following evaluation criteria:
    (A) Public water supplies expected to be benefited by the project;
    (B) Water supply yield enhancement to target water supply, which is the projected water yield from a feasibility study;
    (C) Water User Groups relying on the water supplies;
    (D) Percent of target water supply used by Water User Groups; and
    (E) Population of Water User Groups.
  (2) A Ranking Index is calculated using the evaluation criteria described in paragraph (1) of this subsection which gives a measure of the water yield increased per capita user for each proposal. The Ranking Index equals the percent reliance of the Water User Groups on the source to be enhanced multiplied by the projected water yield enhancement from the feasibility study divided by the population of the Water User Groups.
  (3) In order to address the criterion described in subsection (d)(4) of this section, the Ranking Index may be adjusted for projects that propose a more favorable cost-sharing contract rate. That is, the Ranking Index will be adjusted to give more favorable consideration to a project that proposes a cost-share rate that lessens the State's cost. This adjustment to the Ranking Index may be applied as a percentage bonus.

Source Note: The provisions of this §517.25 adopted to be effective February 13, 2003, 28 TexReg 1209; amended to be effective March 21, 2004, 29 TexReg 2651; amended to be effective April 16, 2012, 37 TexReg 2679; amended to be effective September 8, 2014, 39 TexReg 7173