| (a) In 1996, the U.S. Congress found that the requirements
of the Safe Drinking Water Act, 42 U.S.C. 300 et seq. (SDWA) exceeded the
financial and technical capacity of some public water systems and that States
needed increased financial resources and appropriate flexibility to ensure
the prompt and effective development and implementation of drinking water
programs. To this end, Congress enacted the Safe Drinking Water Act Amendments
of 1996 (PL 104-182) (Amendments of 1996) which provides for water protection
programs, changes to regulatory programs, small systems technology and funding
for States and water systems. The Amendments provide for the establishment
of drinking water treatment revolving loan funds (DWSRF) by states in order
to receive capitalization grants through the United States Environmental Protection
Agency (USEPA) for the purpose of furthering the health protection objectives
of the SDWA. To be eligible to receive a grant, a State must establish a DWSRF
and comply with the provisions of the Amendments of 1996.
(b) The Texas Water Development Board (board) provides financial
assistance for the construction of water facilities and pursuant to the terms
of Chapter 15, Section 15.602(1) Texas Water Code, is authorized to establish
an additional state revolving fund to provide financial assistance to eligible
applicants for public works in accordance with capitalization grant program
requirements established by a federal agency.
(c) Texas Natural Resource Conservation Commission (commission)
through the "primacy" approval granted the State of Texas in 1978 is responsible
for implementing the drinking water regulatory scheme established by the Safe
Drinking Water Act and for enforcing the national drinking water standards
set by USEPA. The commission is also charged with the administration of Chapter
341, Subchapter C of the Health and Safety Code to ensure safe and adequate
sources of drinking water from public water systems.
(d) The commission and board (parties) now intend to enter
into a Memorandum of Understanding (MOU) pursuant to the authority, respectively,
of Chapter 5, Section 5.104 and Chapter 6, Section 6.104, Texas Water Code,
for the purpose of seeking out the respective duties and responsibilities
of the Parties and to improve the efficiency and effectiveness of the board
and commission operations in administering the provisions of the Amendments
of 1996.
(1) The board will manage the financial administration of the
DWSRF pursuant to State and Federal laws and will ensure compliance with the
USEPA programmatic requirements for the DWSRF program.
(2) The commission will establish assistance priorities
for the use of funds from the DWSRF and will provide the board with all information
and reports necessary for the board's compliance with the USEPA programmatic
requirements of the DWSRF program.
(3) The board will be responsible for the following activities
under this MOU:
(A) prepare and adopt rules, and establish and maintain accounts
necessary for the financial administration of the DWSRF;
(B) prepare and enter into capitalization grant agreements
with USEPA;
(C) annually prepare contracts to be entered into by the board
and commission which provide for the transfer of set-aside funds to the commission;
(D) communicate applicable Federal audit requirements to the
commission;
(E) prepare and submit to USEPA project priority lists and
annual intended use plans consistent with the priority system developed by
the commission;
(F) act on applications for assistance, and draw down federal
funds and transfer construction funds to assistance recipients;
(G) prepare and submit to USEPA biennial reports on the DWSRF;
(H) participate in annual DWSRF audits and USEPA oversight
efforts;
(I) review and approve engineering plans and specifications
for DWSRF funded water projects in conformance with the Letter of Agreement
between the board and commission dated September 21, 1992;
(J) provide technical assistance to potential applicants seeking
access to the DWSRF;
(K) assume responsibility for administering each loan project
funded from the DWSRF;
(L) provide the required 20% State matching funds for the DWSRF
capitalization grant to the extent that State law allows for the use of both
appropriated funds and bond proceeds for such intended purpose; and
(M) serve as the official public contact for the State of Texas
with regard to all DWSRF related activities.
(4) The commission will be responsible for the following
activities under this MOU:
(A) develop and provide to the board a system for establishing
assistance priorities;
(B) provide the one to one matching funds for all §1452(g)(2)
set aside activities;
(C) provide to the board planning information as may reasonably
be required for the board to prepare and submit intended use plans and biennial
reports to the USEPA, including projections for the uses of funds and documentation
that match requirements, when applicable, have been met;
(D) develop and submit to USEPA, programmatic elements as required
to maximize capitalization of the DWSRF with evidence of the submittal provided
to the board;
(E) cooperate with the board in developing any information
necessary to complete the annual capitalization grant application, the Annual
Report or any audits as required;
(F) establish adequate fund accounting as necessary to administer
funds transferred from the DWSRF to the commission; and
(G) establish financial accountability procedures that meet
applicable federal accountability requirements;
(e) The board and the commission agree that all rules and guidance
related to DWSRF will be developed cooperatively.
(f) This MOU shall continue in full force and effect until
canceled or superseded by either party. The party requesting cancellation
shall give 90 days advance notice of intent to cancel and shall advise the
other party in writing of the reasons for the cancellation.
(g) Should any one or more provisions of this MOU be held to
be null, void, or for any reason without force or effect, such provision(s)
shall be construed as severable from the remainder of this MOU and shall not
affect the validity of all other provisions of the MOU, which shall remain
in full force and effect.
(h) This MOU may be amended in writing at any time by the mutual
consent of the parties and through the designated officials indicated below.
(i) This MOU shall be effective when signed by the designated
representatives of the board and the commission and when adopted as a rule
by the board.
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