(a) When the board issues or renews a permit, the board shall collect a permit fee from the applicant. The fee shall be determined by a schedule based on:
(1) the term of the permit; and
(2) the maximum annual amount of groundwater the board authorizes to be withdrawn from the well.
(b) The board may establish a disincentive permit fee to serve as a regulatory tool by creating a disincentive to continued overreliance on groundwater.

(c) The board shall determine the fee schedule after a hearing.
(d) The board shall use permit fees collected under this section to pay the cost of issuing permits and performing other regulatory functions under this chapter, including making grants, loans, or contractual payments to achieve, facilitate, or expedite reductions in groundwater pumping or the development or distribution of alternative water supplies.