USE OF FEES

(a) A district may use funds obtained from administrative, production, or export fees collected under a special law governing the district or this chapter for any purpose consistent with the district's approved management plan, including, without limitation, making grants, loans, or contractual payments to achieve, facilitate, or expedite reductions in groundwater pumping or the development or distribution of alternative water supplies or to maintain the operability of wells significantly affected by groundwater development to allow for the highest practicable level of groundwater production while achieving the desired future conditions established under Section 36.108. (b) A district may use funds obtained from the amount that an export fee is increased under Section 36.122(e-1) on or after January 1, 2024, only for costs related to assessing and addressing impacts associated with groundwater development, including: (1) maintaining operability of wells significantly affected by groundwater development, including wells located outside the district; (2) developing or distributing alternative water supplies; and (3) conducting aquifer monitoring, data collection, and aquifer science. (c) A district may use funds described by Subsection (b) to maintain the operability of wells described by Subsection (b)(1) that are located in another district only if the district enters into an interlocal contract under Chapter 791, Government Code, with the other district authorizing the funds to be used for that purpose.