FINANCIAL ASSISTANCE

(a) The board shall adopt rules necessary to administer this subchapter, including rules establishing procedures for the application for and award of financial assistance, the distribution of financial assistance, the investment of funds, and the administration of financial assistance and the fund. (b) When evaluating an application for financial assistance from a political subdivision, the board shall consider: (1) the intended end users of the water supply, the needs of the area to be served by the project, the expected benefit of the project to the area, the relationship of the project to the water supply needs of this state overall, and the relationship of the project to the state water plan; (2) the amount of water expected to be produced by the project; and (3) the availability of money or revenue to the political subdivision from all sources for the ultimate repayment of the cost of the project, including all interest. (c) The board by resolution may approve an application if, after considering the factors listed in Subsection (b) and other relevant factors, the board finds that: (1) the public interest is served by state assistance for the project; and (2) for an application for financial assistance in the form of a loan, the money or revenue pledged by the political subdivision will be sufficient to meet all the obligations assumed by the political subdivision during the term of the loan. (d) The repayment of principal or interest on a loan made under this subchapter must be deposited to the credit of the Texas water fund. This subsection does not apply to a loan made under other law with money transferred under Section 15.153(b)(2). (e) An application from a political subdivision for financial assistance under this subchapter must comply with the requirements of Section 16.4021. (f) Sections 17.183-17.187 apply to the construction of projects funded under this subchapter.