TITLE 43. TRANSPORTATION

PART 1. TEXAS DEPARTMENT OF TRANSPORTATION

CHAPTER 7. RAIL FACILITIES

SUBCHAPTER H. SHORT LINE RAILROAD IMPROVEMENT STATE FUND PROGRAM

The Texas Department of Transportation (department) proposes the new §§7.160 - 7.173; concerning the Short Line Railroad Improvement State Fund Program.

EXPLANATION OF PROPOSED NEW SECTIONS

New §§7.160 - §7.173, contained in new Subchapter H of Chapter 7, describe the policies and procedures for the implementation and administration of the Short Line Railroad Improvement State Fund Program ("program") as authorized by Senate Bill (S.B) 2366, 89th Legislature, Regular Session, 2025 and codified as Transportation Code, §201.981.

New §7.160, Purpose, states the purpose of the new subchapter.

New §7.161, Definitions, defines the terms used in the new subchapter.

New §7.162, Program Eligibility, sets criteria a project must meet to be eligible for the program. This includes the statutory criteria that the project must (1) be for the replacement of short line railroad tracks or bridges, the improvement of short line rail capacity, or the restoration of short line railways, (2) increase public safety, enhance economic development, or reduce traffic, and (3) be sponsored by a rural rail district that owns or operates the short line railroad and has authority to undertake the project and to enter the required grant agreement. In order to maximize efficiency and use of available funds, the project must also constitute a logical, self-contained unit of work that can be constructed as an independent project whether it is proposed as an independent project or as a part of a larger transportation project.

New §7.163, Funding and Eligible Costs, sets the allowable costs under the program. To maximize use of funding, allowable costs are limited to direct costs of eligible projects, including planning, detailed design activities, environmental, right of way acquisition, and utility adjustments. Elements that do not qualify for grant funds may be included in the project, but must be funded with non-program funds.

New §7.164, Non-State Funding Match, addresses the statutory requirement that at least 10% of total project costs must be provided by a source other than the state as matching funds, or, if the grant funds are to be used as matching funds for another grant, at least 10% of the amount used as matching funds must be provided by a source other than the state. The standard policies apply that the matching funds must be provided before the work begins and donated services may be used to reduce the cost of the project but do not constitute matching funds.

New §7.165, Call for Project Nominations, provides that projects will be selected through a competitive process in order to make the best use of available funding. If funding is available, a program call describing the required application contents will be published in the Texas Register.

New §7.166, Nomination Package, requires a project sponsor to submit project nominations in the form prescribed by the department. A complete nomination package must be received by the department by the deadline, or it will be deemed ineligible.

New §7.167, Project Evaluation Committee, requires the executive director to appoint a project evaluation committee consisting of department staff to make recommendations for the selection of projects funded under the program.

New §7.168, Nomination Screening, requires the project evaluation committee to screen each nominated project to determine its eligibility under statutory and regulatory requirements. It provides for notification if a project is found ineligible and for an appeals process.

New §7.169, Project Evaluation, requires the project evaluation committee to evaluate the benefits of eligible applications based on statutory requirements, the goals of the program, and specific selection criteria set forth in the program call. The department will provide the evaluation criteria with each program call.

New §7.170, Project Selection and Approval, requires the project evaluation committee to make recommendations for project selection to the department's Railroad Division director. The division director will make a final recommendation of selected projects to the Texas Transportation Commission (commission) for approval.

New §7.171, Project Implementation, requires the project sponsor and applicable railroad to comply with all applicable laws and regulations, including all applicable state procedures, requirements, and standards and specifications. An agreement between the state and the project sponsor is required, which must include the responsibilities and duties of the parties, local match funding commitment, the scope and course of the project, and the maximum amount of available funding.

New §7.172, Elimination of Project from the Program, provides the department's executive director criteria for eliminating a project after selection. A project may be eliminated from the program if a project sponsor does not meet the requirements of the program, if a project sponsor chooses to withdraw, if significant deviations from the approved scope of work would be required, if construction has not been initiated within three years of project selection, or if the required agreement is not signed within one year after project selection.

New §7.173, Reporting to the Commission, requires the department to submit to the commission annually a report regarding project nominations and selected projects.

FISCAL NOTE

Stephen Stewart, chief financial officer, has determined, in accordance with Government Code, §2001.024(a)(4), that for each of the first five years in which the proposed rules are in effect, there will be no fiscal implications for state or local governments as a result of the department's or commission's enforcing or administering the proposed rules.

LOCAL EMPLOYMENT IMPACT STATEMENT

Donald Franks, Rail Division director, has determined that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the proposed rules and therefore, a local employment impact statement is not required under Government Code, §2001.022.

PUBLIC BENEFIT

Mr. Franks has determined, as required by Government Code, §2001.024(a)(5), that for each year of the first five years in which the proposed rules are in effect, the public benefit anticipated as a result of enforcing or administering the rules will be increased safety and fluidity of the freight rail system and an improvement of highway congestion and travel time savings near project locations. The proposed rules will create economic development opportunities and allow unique projects that would otherwise be difficult to implement.

COSTS ON REGULATED PERSONS

Mr. Franks has also determined, as required by Government Code, §2001.024(a)(5), that for each year of that period there are no anticipated economic costs for persons, including a state agency, special district, or local government, required to comply with the proposed rules and therefore, Government Code, §2001.0045, does not apply to this rulemaking.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS

There will be no adverse economic effect on small businesses, micro-businesses, or rural communities, as defined by Government Code, §2006.001, and therefore, an economic impact statement and regulatory flexibility analysis are not required under Government Code, §2006.002.

GOVERNMENT GROWTH IMPACT STATEMENT

Mr. Franks has considered the requirements of Government Code, §2001.0221 and anticipates that the proposed rules will have no effect on government growth. He expects that during the first five years that the rule would be in effect:

(1) it would not create or eliminate a government program;

(2) its implementation would not require the creation of new employee positions or the elimination of existing employee positions;

(3) its implementation would not require an increase or decrease in future legislative appropriations to the agency;

(4) it would not require an increase or decrease in fees paid to the agency;

(5) it would not create a new regulation;

(6) it would not expand, limit, or repeal an existing regulation;

(7) it would not increase or decrease the number of individuals subject to its applicability; and

(8) it would positively affect this state's economy.

TAKINGS IMPACT ASSESSMENT

Mr. Franks has determined that a written takings impact assessment is not required under Government Code, §2007.043.

SUBMITTAL OF INFORMATION AND COMMENTS

Any person that is required to comply with the proposed rule or any other interested person may provide information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis, or may submit written comments on the proposed new §§7.160 - 7.173. The information or comments must be submitted to Rule Comments, General Counsel Division, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701-2483 or to RuleComments@txdot.gov with the subject line "Financial Assistance for Rail." The deadline for receipt of the information or comments is 5:00 p.m. on June 15, 2026. In accordance with Transportation Code, §201.811(a)(5), a person who makes a submission must disclose, in writing with the submission, whether the person does business with the department, may benefit monetarily from the proposed amendments, or is an employee of the department.

STATUTORY AUTHORITY

The new sections are proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §201.981, which requires the commission to adopt rules as necessary to implement that section.

The authority for the proposed new sections is provided by S.B. 2366, 89th Regular Session 2025. The primary authors of that bill are Senators Bryan Hughes and Angela Paxton, and the primary sponsor of that bill is Representative Cole Hefner.

CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING

Transportation Code, §201.981

§7.160. Purpose.

This subchapter prescribes the policies and procedures for the implementation and administration of the Short Line Railroad Improvement State Fund Program authorized by Transportation Code, §201.981.

§7.161. Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Commission--Texas Transportation Commission.

(2) Department--Texas Department of Transportation.

(3) Director--Director of the department's Railroad Division.

(4) Executive director--The executive director of the department or the executive director's designee.

(5) Program--The Short Line Railroad Improvement State Fund Program.

(6) Project--a project that is eligible for funding under this subchapter.

(7) Project sponsor--An entity described by §7.162(b) of this subchapter (relating to Program Eligibility).

(8) Short line railroad--A Class II or Class III railroad as defined by the federal Surface Transportation Board.

§7.162. Program Eligibility.

(a) To be eligible for funding under the program, a project must:

(1) be for replacement of short line railroad tracks or bridges, improvement of short line rail capacity, or restoration of short line railways;

(2) increase public safety, enhance economic development, or reduce traffic; and

(3) constitute a logical, self-contained unit of work that can be constructed as an independent project whether it is proposed as an independent project or as a part of a larger transportation project.

(b) To be eligible to request funding under the program, the project sponsor must be a rural rail transportation district operating under Transportation Code, Chapter 172, that owns or operates a short line railroad, has authority to undertake the project, and has authority to enter into the agreement required under §7.171 of this subchapter (relating to Project Implementation).

§7.163. Funding and Eligible Costs.

(a) Funding under the program is subject to the Texas Grant Management Standards developed by the comptroller under the Government Code, Chapter 783.

(b) Planning, detailed design activities, environmental, right of way acquisition, and utility adjustments are eligible costs.

(c) A cost is not eligible for funding under the program if it was incurred before the department authorizes work to proceed under the agreement required under §7.171 of this subchapter (relating to Project Implementation).

(d) A project may include elements that are not eligible for funding under the program. Funds used to pay for those elements do not qualify as matching funds under §7.164 of this subchapter (relating to Non-State Funding Match).

§7.164. Non-State Funding Match.

(a) A local funding match provided by a source other than the state is required and at a minimum must comply with Transportation Code, §201.981(d).

(b) Except as provided by this section, the funding match required by this section must be cash provided by or through the project sponsor. The value of donated services will not be accepted as a funding match but may be used to reduce the overall cost of the project.

(c) The project sponsor must provide the funding match required by this section before the beginning of project activities for each phase of work.

§7.165. Call for Project Nominations.

(a) Projects will be selected for available program funding through a competitive process.

(b) The department will issue a notice of a program call for project nominations that is published in the Texas Register.

(c) The notice will include information regarding the required content of the nomination package, the procedures applicable to the program call, and the specific evaluation criteria to be used during the project selection process.

§7.166. Nomination Package.

(a) To nominate a project during a program call, the project sponsor must submit its nomination in the form prescribed by the department.

(b) The nomination package must present persuasive evidence of support for the proposed project from the affected communities and include a commitment to provide the non-state funding match required by §7.164 of this subchapter (relating to Non-State Funding Match).

(c) A complete nomination package must be received by the department not later than the specified deadline published in the Texas Register. A nomination package that fails to include any of the items specified in this section or the respective program call is considered to be incomplete and will not be considered for funding.

(d) The department may request supplemental information as needed to conduct project screening and evaluation.

§7.167. Project Evaluation Committee.

The executive director will appoint a project evaluation committee consisting of department staff to make recommendations for the selection of projects funded under the program.

§7.168. Nomination Screening.

(a) The project evaluation committee will screen each project nomination to determine whether the project is eligible for funding under the program and applicable federal and state law and whether it meets technical standards established by applicable law and accepted professional practice.

(b) The department will notify the project sponsor if a project nomination is determined to be ineligible and the reasons for the determination.

(c) A request for reconsideration of a finding of ineligibility may be initiated only by email or letter from the project sponsor to the director setting forth reasons in support of a finding of eligibility. The email or letter requesting reconsideration must be received by the director not later than the 15th day after the day that the project sponsor received the department's notification, as established by the return receipt.

(d) The determination of the director in response to the request for reconsideration is final.

§7.169. Project Evaluation.

The project evaluation committee will evaluate the public safety, economic development enhancement, and traffic reduction benefits, and any other benefit of each nominated project that is determined to be eligible under §7.168(a) of this subchapter (relating to Nomination Screening) based on the specific selection criteria set forth in the program call.

§7.170. Project Selection and Approval.

(a) The project evaluation committee will provide project selection recommendations and supporting documentation to the director.

(b) The director will review the recommendations and supporting documentation submitted by the committee and will select projects for funding under the program based on recommendations from the project evaluation committee, consistent with the statutory requirements and the evaluation criteria.

(d) The department will notify the project sponsor whether the project was selected and approved for funding.

§7.171. Project Implementation.

(a) In undertaking a project, the project sponsor must comply with all applicable laws and regulations, including all applicable state procedures and requirements.

(b) All project sponsors must enter into with the department an agreement that:

(1) includes a commitment from the project sponsor for the required non-state funding;

(2) describes the total scope and course of project activities;

(3) states the maximum amount of the funding provided under this subchapter; and

(4) outlines the responsibilities and duties of the parties to the agreement.

(c) Before the department will fund any construction activities, the project sponsor must enter into the agreement required by subsection (b) of this section and demonstrate that required opportunities for public involvement have been provided and that all applicable environmental documentation has been completed.

(d) Any change to the scope of work specified in the selected nomination package must have the advance written approval of the executive director.

(e) The department is responsible for the inspection, final acceptance, and certification of a project.

§7.172. Elimination of Project from the Program.

The executive director may eliminate all or a part of a project from participation in the program if:

(1) the project sponsor fails to satisfy any requirement of this subchapter or the agreement required under §7.171 of this subchapter (relating to Project Implementation);

(2) implementation of the project would involve a significant deviation from the scope of work in the approved nomination package;

(3) the project sponsor withdraws from participation in the project;

(4) construction has not been initiated within three years after the date that the project was approved by the commission; or

(5) the agreement required under §7.171 of this subchapter (relating to Project Implementation) is not executed within one year after the date that the project was approved by the commission.

§7.173. Reporting to the Commission.

Annually, the department will submit a report to the commission on the project nominations and projects approved for funding.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 30, 2026.

TRD-202601855

Becky Blewett

Deputy General Counsel

Texas Department of Transportation

Earliest possible date of adoption: June 14, 2026

For further information, please call: (512) 486-5815

CHAPTER 30. AVIATION

SUBCHAPTER C. AVIATION FACILITIES DEVELOPMENT AND FINANCIAL ASSISTANCE RULES

43 TAC §§30.202, 30.203, 30.206, 30.210

The Texas Department of Transportation (department) proposes the amendments to §§30.202, 30.203, 30.206, and 30.210 concerning aviation facilities development and financial assistance.

EXPLANATION OF PROPOSED AMENDMENTS

House Bill 4520, 89th Legislature, Regular Session, 2025 amended §21.105(b), Transportation Code, to provide that for a loan or grant for an airport located in an economically disadvantaged county, 5% of the total project cost, rather than 10%, must be provided by sources other than the state. The bill also repealed §21.114(b) of the Transportation Code, which results in the declaration that the department serves as the agent for federal funds for general aviation airports, including reliever airports. The Federal Aviation Administration no longer funds reliever airports separately from general aviation airports. H.B. 4520 brings the statute in line with the State Block Grant Program agreement.

Amendments to §30.202, Scope of the Rules, remove "nonreliever," with the effect that Chapter 30, Subchapter C, applies for all general aviation airports in accordance with the amendments made by H.B. 4520.

Amendments to §30.203, Definitions, delete the operative provisions in the definition of "grant." Those provisions are moved to §30.206, which provides the requirements applicable to grants and loans. The amendments also make a nonsubstantive clarifying grammatical change in paragraph 14 of the section.

Amendments to §30.206, Amount of Grant or Loan, move the matching requirements for grants from the definition of grant and modify those requirements in accordance with the changes in law made by H.B. 4520. The provision allows the Texas Transportation Commission (commission) to award a grant of up to 95% of eligible project costs if the airport is located in an economically disadvantaged county. The amendments also make nonsubstantive clarifying grammatical changes in subsections (a) and (d) of the section.

Amendments to §30.210, Intergovernmental Agreements, substitute a reference to §30.206 in the description of the terms and conditions of intergovernmental agreements in the place of the percentage numbers that set the limits of matching requirements for financial assistance, as expressed in §30.206. The substitution eliminates redundancy and the potential for discrepancy between the percentages in the two sections. The amendments also make nonsubstantive clarifying grammatical changes in subsections (b)(4), (d)(9), and (e) of the section.

FISCAL NOTE

LOCAL EMPLOYMENT IMPACT STATEMENT

Mr. Dan Harmon, director, Aviation Division, has determined that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the proposed rules and therefore, a local employment impact statement is not required under Government Code, §2001.022.

PUBLIC BENEFIT

Mr. Harmon has determined, as required by Government Code, §2001.024(a)(5), that for each year of the first five years in which the proposed rules are in effect, the public benefit anticipated as a result of enforcing or administering the rules will be to enhance general aviation airport improvements by reducing the local match to five percent, making state grant funding more accessible for general aviation airports located in economically disadvantaged counties.

COSTS ON REGULATED PERSONS

Mr. Harmon has also determined, as required by Government Code, §2001.024(a)(5), that for each year of that period there are no anticipated economic costs for persons, including a state agency, special district, or local government, required to comply with the proposed rules and therefore, Government Code, §2001.0045, does not apply to this rulemaking.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS

There will be no adverse economic effect on small businesses, micro-businesses, or rural communities, as defined by Government Code §2006.001, and therefore, an economic impact statement and regulatory flexibility analysis are not required under Government Code, §2006.002.

GOVERNMENT GROWTH IMPACT STATEMENT

Mr. Harmon has considered the requirements of Government Code, §2001.0221, and anticipates that the proposed rules will have no effect on government growth. He expects that during the first five years that the rule would be in effect:

(1) it would not create or eliminate a government program;

(2) its implementation would not require the creation of new employee positions or the elimination of existing employee positions;

(3) its implementation would not require an increase or decrease in future legislative appropriations to the agency;

(4) it would not require an increase or decrease in fees paid to the agency;

(5) it would not create a new regulation;

(6) it would not expand, limit, or repeal an existing regulation;

(7) it would not increase or decrease the number of individuals subject to its applicability; and

(8) it would not positively or adversely affect this state's economy.

TAKINGS IMPACT ASSESSMENT

Mr. Harmon has determined that a written takings impact assessment is not required under Government Code, §2007.043.

SUBMITTAL OF INFORMATION AND COMMENTS

Any person that is required to comply with the proposed rule or any other interested person may provide information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis, or may submit written comments on the amendments to §§30.202, 30.203, 30.206, and 30.210. The information or comments must be submitted to Rule Comments, General Counsel Division, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701-2483 or to RuleComments@txdot.gov with the subject line "Aviation Facilities Development and Financial Assistance." The deadline for receipt of the information or comments is 5:00 p.m. on June 15, 2026. In accordance with Transportation Code, §201.811(a)(5), a person who makes a submission must disclose, in writing with the submission, whether the person does business with the department, may benefit monetarily from the proposed amendments, or is an employee of the department.

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department.

The authority for the proposed amendments is provided by H.B. 4520, 89th Regular Session, 2025. The primary author and the primary sponsor of that bill are Representative Armando Martinez and Senator Robert Nichols, respectively.

CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING

Transportation Code, Chapter 21, Subchapter C

§30.202. Scope of the Rules.

This subchapter shall apply to all requests for federal financial assistance for [~~nonreliever~~] general aviation airports and for state financial assistance for the construction, enlargement, repair, or planning of airports or air navigational facilities. This subchapter shall not be construed or interpreted so as to abridge, enlarge, modify, or otherwise change the authority of the commission or the substantive rights of any person.

§30.203. Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Airport--An area of land that is designated for the landing and takeoff of aircraft.

(2) Airport hazard--Any structure, flora, or use of land which obstructs the airspace required for the flight of aircraft in landing or takeoff at any airport or is otherwise hazardous to such landing or takeoff of aircraft. For further definition, see the Local Government Code, §§241.001 et seq.

(3) Airport Project Participation Agreement--An intergovernmental agreement between the department and the sponsor which grants financial assistance.

(4) Aviation Advisory Committee--The committee appointed under Transportation Code, §21.003.

(5) Aviation Facilities Capital Improvement Program (CIP)--A multi-year capital improvement program, prepared by the division and approved by the commission which identifies projects to be considered for financial assistance.

(6) Commission--The Texas Transportation Commission.

(7) Department--The Texas Department of Transportation.

(8) Director--The director of the Aviation Division of the Texas Department of Transportation.

(9) Division--The Aviation Division [~~aviation division~~] of the Texas Department of Transportation.

(10) Emergency--A situation or condition at a general aviation airport which requires immediate attention due to an existing unsafe condition. The condition should be of sufficient concern to require the filing of a Notice to Airman with the Federal Aviation Administration under FAA Order 7930.2E until the safety concern has been resolved.

(11) Executive director--The executive director of the Texas Department of Transportation.

(12) Grant--An offer of financial assistance of state or [~~and/or~~] federal funds to improve, repair, upgrade, or add to an airport included in the Texas Airport System Plan. [~~A grant with federal funds requires a match of 10% from state and/or local funds. A grant with state funds must be matched with at least 10% local funds.~~]

(13) Hazard zoning--Zoning pursuant to the provisions of the Local Government Code, §§241.001 et seq., for the purpose of protecting the aerial approaches to an airport.

(14) Intergovernmental Agreement--A formal written agreement between the sponsor and the division, specifying the duties and obligations of the department and the sponsor, and the terms and conditions of a grant of state and [~~and/or~~] financial assistance. The department enters into [~~issues~~] two types of aviation intergovernmental agreements, an airport project participation agreement and a loan agreement [~~titled Airport Project Participation Agreement and Loan Agreement~~].

(15) Letter of intent [~~Intent~~]--The sponsor's formal commitment to proceed with an airport improvement project, signed by the chief elected official, including a description and cost estimate of the project, and accompanied by a resolution adopted by the sponsor's governing body indicating the sponsor's willingness to participate in the local share of project costs.

(16) Letter of interest--A preliminary statement submitted by a sponsor to indicate the sponsor's desire to be included in the program and to provide a basis for programming available funds.

(17) Loan--An intergovernmental agreement between the department and a sponsor which provides state financial assistance to be repaid to the department at a specific interest rate and over a specific time period.

(18) Local funds--Cash, in-kind contributions, or force account work remitted by a local airport sponsor as its share of project costs for an airport development project.

(19) Program--The Texas Aviation Facilities Development Program, which includes the administration of federal Airport Improvement Program grants to general aviation airports, and state grants and loans.

(20) Project--Design and construction of improvements to, or planning of, an airport or air navigational facility as part of the program.

(21) Sponsor--Any eligible state agency or governmental entity seeking state or federal aid under the program.

(22) Staff--Employees of the aviation division of the Texas Department of Transportation.

§30.206. Amount of Grant or Loan.

(a) Grant. The commission may award for an airport that is eligible for state financial assistance a grant for costs of an eligible project. A grant of federal funds must be matched with at least 10% of state or local funds or a combination of state and local funds. A grant of state funds must be matched with at least 10% of local funds or 5% of local funds, if the airport is located in an economically disadvantaged county, as defined by Transportation Code, §222.053 [~~of up to 90% of the eligible project costs~~]. If federal funds are used on the project, the commission may participate by funding up to 50% of the sponsor's share of the project costs eligible for federal funding. A sponsor's share shall be remitted in cash for planning and construction projects, unless an exception is granted by the director. If an exception is granted, the value of any eligible in-kind contributions, as shall be determined by the division, may be included as part of the sponsor's share. For property acquisition projects, the sponsor shall initially bear all costs of property acquisition and shall be reimbursed by state and [~~and/or~~] federal funds in the appropriate granted percentages for the eligible approved costs after division approval of all necessary documentation provided by the sponsor. The director may grant an exception for property acquisition projects to allow cash remittance from the sponsor for the property acquisition costs.

(b) Loans. The commission may make a loan of up to 90% of the cost of a project. All loans shall bear an interest rate of at least 3.0% per annum and have a term of not longer than 20 years. Loans shall be made in lieu of grants whenever feasible, and, in particular, in lieu of grants for revenue-producing improvements.

(d) Exceptions. The director may grant exceptions provided under subsection (a) of this section if the director [~~he or she~~] determines such action to be in the best interest of the state to ensure adequate local financial participation.

§30.210. Intergovernmental Agreements.

(a) Purpose. The purpose of an agreement between the sponsor and the department is to define the respective responsibilities of the sponsor and the department in implementing the project and to define the requirements, terms, conditions, type of funds, and considerations attendant upon each party to the agreement. Prior to the disbursement of any funds by the department, the sponsor shall execute the agreement in a manner provided by law for entering into binding contractual agreements.

(b) Airport Project Participation Agreement (APPA). Except as provided in subsection (c) of this section, when the commission has approved a sponsor's request for financial assistance, the APPA:

(1) shall name the department as agent for the purpose of applying for, receiving, and disbursing federal funds, if applicable;

(2) may name the department as agent for the purpose of contracting for and supervising the planning, acquisition, development, and construction of the airport project;

(3) may provide for the department to receive and disburse the local sponsor's share of project costs;

(4) shall provide a general description of the proposed project, the amount of state, federal, and [~~and/or~~] local sponsor project share, and the total estimated cost;

(5) shall include, as a separate attachment, an attorney's certificate of airport property interests title if necessary; certification of availability of sponsor share; and existence of an airport fund; and

(6) shall include a list of both the sponsor's and the state's responsibilities.

(c) Loan agreement. Where the commission has offered financial assistance to a sponsor in the form of a loan, the sponsor and the department shall enter into a loan agreement defining the consideration, the terms, and conditions under which the loan will be made, and the responsibilities of the sponsor. The loan agreement shall:

(1) provide a general description of the proposed project, the amount of state funds to be loaned, and the estimated total project costs;

(2) provide the length of the loan and amount of simple interest, along with the schedule of payments;

(3) include an attorney's certificate of airport property interests title as a separate attachment;

(4) disclose the source of all funds for the project;

(5) certify that the sponsor has the ability to finance and operate the airport or air navigational facility; and

(6) include other provisions and terms as deemed necessary by the department.

(d) Covenants, terms, and conditions. In addition to all other requirements imposed by law or by this subchapter, all intergovernmental agreements made by the department shall be subject to the following terms and conditions and any additional terms and conditions necessary to effectuate the program.

(1) The term of the agreement shall be no longer than 20 years from the date of a sponsor's acceptance.

(2) The airport or navigational facility shall remain under the sponsor's control during the term of the grant or loan agreement.

(3) The [~~At least 10% of the~~] total project cost will be provided from sources other than the state in accordance with §30.206 of this subchapter (relating to Amount of Grant or Loan).

(4) The airport or navigational facility shall be maintained by the sponsor in a safe and serviceable condition during the term of the agreement.

(5) Consistent with safety and security requirements, a sponsor shall make the airport or navigational facility available to all types, kinds, and classes of aeronautical use without discrimination between such types, kinds, and classes and shall provide adequate public access during the term of the agreement.

(6) The sponsor shall not grant or permit another to exercise an exclusive right for the conduct of any aeronautical activity on or about an airport landing area. Aeronautical activities include, but are not limited to, scheduled airline flights, charter flights, flight instruction, aircraft sales, rental, and repair; sale of aviation petroleum products, and aerial application. The landing area consists of runways or landing strips, taxiways, parking aprons, roads, airport lighting, and navigational aids.

(7) Property interests identified in the agreement and an attorney's certificate of airport property interests [~~Airport Property Interests~~] shall be pledged to airport use and shall not be removed from such use without prior written approval by the commission.

(8) A sponsor, if requested by the division, shall submit to the division annual statements of airport or air navigational facility revenues and expenses.

(9) All fees collected for use of an airport or navigational facility constructed with funds provided under the program shall be reasonable and nondiscriminatory. The proceeds of such fees shall be used solely for the development, operation, and maintenance of the airport or navigational facility. A sponsor, however, shall not be required to pledge income received from the mineral estate to airport use unless state and [~~and/or~~] federal funds were used to acquire the mineral estate or any interest therein.

(10) All development of an airport constructed with program funds shall be consistent with the airport layout plan approved by the staff and maintained by the sponsor. A reproducible copy of such plan, and all subsequent modifications thereto, shall be filed with the division for approval by the staff.

(11) Following completion of a project where airport lighting is part of the project, the sponsor shall operate such lighting from sunset to sunrise either manually or by radio control.

(12) The department shall not be a party to any contract or commitment outside of the mutually agreed upon contracts, which a sponsor may enter into or assume in carrying out a project.

(13) A sponsor shall adopt and enforce airport hazard zoning regulations to restrict the use of land, adjacent to or in the immediate vicinity of the airport, to activities compatible with normal airport operations. A sponsor shall also acquire and retain easements or other interests in, or rights to, the use of land or airspace unless a sponsor can show the acquisition and retention of such interest will be impractical or will result in undue hardship to a sponsor. No sponsor shall be eligible for a subsequent grant or loan under the program unless the sponsor has adopted and has, as called upon to do so, enforced the airport zoning ordinance/order approved by the division.

(14) Unless the division has given prior written exception, a sponsor shall not enter into any agreement nor permit any aircraft to gain direct ground access to or from the sponsor's airport from private property adjacent to or in the immediate area of the airport, a practice commonly known as a "through the fence operation."

(e) Amendments and cancellation. A major amendment to or cancellation of a grant or loan requires majority vote of the entire commission. Minor amendments to a grant or loan agreement may be made by the director at the director's [~~his~~] discretion. The director shall determine what constitutes a major or minor amendment. The sponsor may appeal the director's determination to the commission by filing with the executive director a written statement of its specific objections. The executive director shall forward the statement of appeal to the commission. The commission shall make a final decision as to whether the amendment is major or minor.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 30, 2026.

TRD-202601854

Becky Blewett

Deputy General Counsel

Texas Department of Transportation

Earliest possible date of adoption: June 14, 2026

For further information, please call: (512) 416-4560

SUBCHAPTER F. METEOROLOGICAL EVALUATION TOWERS

43 TAC §30.502, §30.503

The Texas Department of Transportation (department) proposes the amendments to §30.502 and §30.503 concerning Meteorological Evaluation Towers.

EXPLANATION OF PROPOSED AMENDMENTS

House Bill (H.B.) 2898 89th Legislature, Regular Session, 2025 amended Transportation Code, §21.071, relating to the requirements for certain meteorological evaluation towers.

Amendments to §30.502, Definitions, change the definition of "meteorological evaluation tower" by increasing the diameter at the base of a structure included within the definition from 6 to 12 feet and add a definition of "military aviation training facility."

Amendments to §30.503, Notice and Registration, reflect that not later than the 30th day after the date the department receives notice of a person's intent to erect a meteorological evaluation tower under §30.502, the department will notify each federally owned or operated radar installation or military aviation training facility in this state whose boundaries are within 50 nautical miles of the tower, the county judge of each county in this state that contains a radar installation or military aviation training facility, and the county judge of each county in this state within 25 miles of a radar installation or military aviation training facility.

FISCAL NOTE

Stephen Stewart, chief financial officer, has determined, in accordance with Government Code, §2001.024(a)(4), that for each of the first five years in which the proposed rules are in effect, there will be no fiscal implications for state or local governments as a result of the department's or Texas Transportation Commission's (commission) enforcing or administering the proposed rules.

LOCAL EMPLOYMENT IMPACT STATEMENT

Mr. Dan Harmon, Aviation Division director, has determined that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the proposed rules and therefore, a local employment impact statement is not required under Government Code, §2001.022.

PUBLIC BENEFIT

Mr. Harmon has determined, as required by Government Code, §2001.024(a)(5), that for each year of the first five years in which the proposed rules are in effect, the public benefit anticipated as a result of enforcing or administering the rules will be enhanced awareness of meteorological evaluation tower locations and enhanced safety for low-altitude training routes near military bases and national airspace.

COSTS ON REGULATED PERSONS

Mr. Harmon has also determined, as required by Government Code, §2001.024(a)(5), that for each year of that period there are no anticipated economic costs for persons, including a state agency, special district, or local government, required to comply with the proposed rules and, therefore, Government Code, §2001.0045 does not apply to this rulemaking.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS

GOVERNMENT GROWTH IMPACT STATEMENT

Mr. Harmon has considered the requirements of Government Code, §2001.0221 and anticipates that the proposed rules will have no effect on government growth. He expects that during the first five years that the rule would be in effect:

(1) it would not create or eliminate a government program;

(2) its implementation would not require the creation of new employee positions or the elimination of existing employee positions;

(3) its implementation would not require an increase or decrease in future legislative appropriations to the agency;

(4) it would not require an increase or decrease in fees paid to the agency;

(5) it would not create a new regulation;

(6) it would expand an existing regulation, as required by statute;

(7) it would not increase or decrease the number of individuals subject to its applicability; and

(8) it would not positively or adversely affect this state's economy.

TAKINGS IMPACT ASSESSMENT

Mr. Harmon has determined that a written takings impact assessment is not required under Government Code, §2007.043.

SUBMITTAL OF INFORMATION AND COMMENTS

Any person that is required to comply with the proposed rule or any other interested person may provide information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis, or may submit written comments on the amendments to §30.502 and §30.503. The information or comments must be submitted to Rule Comments, General Counsel Division, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701-2483 or to RuleComments@txdot.gov with the subject line "Meteorological Evaluation Towers." The deadline for receipt of the information or comments is 5:00 p.m. on June 15, 2026. In accordance with Transportation Code, §201.811(a)(5), a person who makes a submission must disclose, in writing with the submission, whether the person does business with the department, may benefit monetarily from the proposed amendments, or is an employee of the department.

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §21.071, which requires the department to adopt rules related to the notice and registration of meteorological evaluation towers.

The authority for the proposed amendments is provided by H.B. 2898, 89th Regular Session, 2025. The primary author and the primary sponsor of that bill are: Representative James Frank and Senator Brent Hagenbuch, respectively.

CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING

Transportation Code, §21.071

§30.502. Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Department--The Texas Department of Transportation.

(2) Meteorological Evaluation Tower--A structure that is self-standing or supported by guy wires and anchors, is not more than 12 [~~six~~] feet in diameter at the base of the structure, and has accessory facilities on which an antenna, sensor, camera, meteorological instrument, or other equipment is mounted for the purpose of documenting whether a site has sufficient wind resources for the operation of a wind turbine generator. For purposes of this subchapter, the term does not include a structure that is located adjacent to a building, including a barn, or an electric utility substation, or in the curtilage of a residence.

(3) Military aviation training facility--A base, station, fort, or camp at which any branch of the United States armed forces regularly conducts aviation training.

§30.503. Notice and Registration.

(a) A person who intends to erect a meteorological evaluation tower shall provide notice of that intention to the department by submitting the appropriate form through the department's internet website. The notice required by this subsection must be submitted no later than the 30th day before the day that erection of the tower begins.

(b) The following information is required to complete the notice form required by subsection (a) of this section:

(1) the name, address, and contact information of the owner or operator of the meteorological evaluation tower;

(2) the proposed location of the meteorological evaluation tower, including latitude, longitude, ground elevation at the site, and height above ground level of the tower;

(3) the proposed date of construction; and

(4) any other information the department considers necessary to assist in determining ownership, physical characteristics, or location of the meteorological evaluation tower.

(c) A person who owns or operates a meteorological evaluation tower shall register the tower with the department by submitting the appropriate form through the department's internet website. For a tower erected after September 1, 2025, [~~The~~] registration [~~required by this subsection~~] must be completed before the 30th day after the day that erection of the tower begins [~~or February 29, 2016, whichever is later~~].

(d) The following information is required to complete the registration form required by subsection (c) of this section:

(1) the name, address, and contact information of the owner or operator of the meteorological evaluation tower;

(2) the location of the meteorological evaluation tower, including latitude, longitude, ground elevation at the site, and height above ground level of the tower;

(3) if the meteorological evaluation tower is at least 50 feet but not more than 200 feet in height above ground level, an affirmation that the tower complies with the requirements applicable to the tower under Transportation Code, §21.071; and

(4) any other information the department considers necessary to assist in determining ownership, physical characteristics, or location of the meteorological evaluation tower.

(e) The person who is responsible for filing a form required by subsection (a) or (c) of this section shall amend the filed information as necessary to maintain the accuracy of that information.

(f) Within 30 days after the date of receipt of a notice of intent to erect a meteorological evaluation tower, the department will provide a copy of the notice to:

(1) each federally owned or operated radar installation or military aviation training facility in this state the boundaries of which are within 50 nautical miles of the tower; and

(2) the county judge of each county in this state:

(A) that contains a radar installation or military aviation training facility described by paragraph (1) of this subsection; or

(B) the nearest boundary of which is within 25 miles of a radar installation or military aviation training facility described by paragraph (1) of this subsection.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 30, 2026.

TRD-202601853

Becky Blewett

Deputy General Counsel

Texas Department of Transportation

Earliest possible date of adoption: June 14, 2026

For further information, please call: (512) 416-4560