WATER CONSERVATION PLAN REQUIREMENTS.

(a) In this section, "water conservation plan" means a plan that describes a program of water conservation for the more efficient use of water.

(b) This section applies to an application for financial assistance under:

(1) Subchapters C, C-1, D, E, G, H, J, O, Q, and R, Chapter 15;

(2) Subchapters E and F of this chapter; and

(3) Subchapters D, F, I, K, and L, Chapter 17.

(c) Except as provided by Subsection (d), an applicant must submit with the application a description of the applicant's proposed or adopted water conservation plan. The water conservation plan:

(1) must:

(A) incorporate the practices, techniques, and technology described by Section 15.001(9)(B);

(B) meet reasonably anticipated local needs and conditions, as determined by the board; and

(C) include specific, quantified five-year and 10-year targets for water savings, including goals for water loss programs and municipal use measured in gallons per capita per day; and

(2) may include:

(A) restrictions on discretionary water uses, including lawn watering;

(B) plumbing code standards for water conservation in new building construction;

(C) retrofit programs to improve water-use efficiency in existing buildings;

(D) educational programs;

(E) universal metering;

(F) conservation-oriented water rate structures;

(G) drought contingency plans; and

(H) distribution system leak detection and repair.

(d) An applicant is not required to submit a water conservation plan under this section if:

(1) an emergency exists as determined by the board;

(2) the amount of financial assistance under consideration is not greater than $500,000;

(3) the applicant demonstrates and the board finds that the implementation of a water conservation plan is not reasonably necessary for conservation; or

(4) the financial assistance is to fund a project that consists of construction outside this state.

(e) The board may not provide financial assistance to an applicant to which this section applies unless the applicant demonstrates that it has adopted and implemented a water conservation plan that meets the requirements for a water conservation plan under Subsection (c).

(f) The board shall establish an educational and technical assistance program to assist political subdivisions in developing comprehensive water conservation plans.

(g) If the applicant will use the project to furnish water or services to another entity that will furnish the water or services to the ultimate consumer, the requirement for an applicant to demonstrate adoption and implementation of a water conservation plan can be met through contractual agreements between the applicant and the other entity providing for the adoption and implementation of a water conservation plan by the other entity.

(h) Rules adopted under this section must state the criteria for preparation, review, and enforcement of an applicant's water conservation plan.