(a) In this section:
(1) “District” means any district or authority created under either Article III, § 52, or Article XVI, § 59, of the Texas Constitution, regardless of how created. The term “district” shall not include any navigation district or port authority created under general or special law or any conservation and reclamation district governed by Chapter 36 unless a special law creating the district or amending the law creating the district states that Chapter 49 applies to the district.
(2) “Municipally owned utility” and “water supply or sewer service corporation” have the meanings assigned by § 13.002.
(b) The commission may allow a municipally owned utility, a water supply or sewer service corporation, or a district to defer the payment of all or part of an administrative penalty imposed under Subchapter C for a violation on the condition that the entity complies with all provisions for corrective action in a commission order to address the violation.

(c) In determining whether deferral of a penalty under this section is appropriate, the commission shall consider the factors to be considered under § 7.053 and the following factors:
(1) the financial position of the entity and its ability to reasonably pay the costs of corrective action under the terms of a commission order;
(2) risks to public health and the environment of any delay in addressing the corrective actions as a result of limited financial resources;
(3) alternatives reasonably available to the entity for paying both the costs of corrective action and the penalty; and
(4) potential effects of the payment of the penalty on other essential public health and safety services for which the entity is responsible.
(d) At the discretion of the commission, any penalty deferred under this section becomes due and payable on a commission determination that the entity is not in compliance with a provision for corrective action in a commission order to address the violation.