USE OF FUND.

(a) The board by resolution may make transfers from the fund to a fund or account described by Section 15.502(b) for an authorized purpose of the receiving fund or account.

(b) Except as provided by Subsection (f) and other than money transferred to the state water implementation fund for Texas established under Subchapter G, the board may not transfer money to a fund or account described by Section 15.502(b) until the application for the project for which the money is to be used has been approved.

(c) The board shall ensure that a portion of the money transferred from the fund is used for:

(1) water and wastewater infrastructure projects, including projects to rehabilitate or replace deficient or deteriorating infrastructure, prioritized by risk or need for financial assistance, including grants, for:

(A) rural political subdivisions; and

(B) municipalities with a population of less than 150,000;

(2) projects for which all required state or federal permitting has been substantially completed, as determined by the board;

(3) the statewide water public awareness program established under Section 16.026;

(4) water conservation strategies;

(5) water loss mitigation projects; and

(6) technical assistance for applicants in obtaining and using financial assistance from funds and accounts administered by the board.

(d) Money transferred from the fund for the purposes described by Subsection (c) may be transferred to funds or accounts described by Section 15.502(b) to be used to provide financial assistance for any purpose described by Subsection (c) under criteria developed by the board and in accordance with law.

(e) Money deposited to the credit of the fund as provided by Section 15.154(d) may be used only for the purposes described by Section 15.153(b).

(f) In each state fiscal year, the board may transfer not more than two percent of the money deposited to the credit of the fund in that state fiscal year to the Texas water fund administrative fund established under Section 15.508 to pay or reimburse the board for the necessary and reasonable expenses of the board in administering the fund as provided by Section 15.508(c).

(f-1) The board may enter into an agreement with the commission to pay from the Texas water fund administrative fund established under Section 15.508 the necessary and reasonable staffing expenses, not to exceed $2 million, incurred by the commission on or before August 31, 2027, for the review of permit applications for water supply projects receiving financial assistance from the fund. This subsection expires September 1, 2028.