(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 § 36.108.
(b) A district may use funds obtained from the amount that an export fee is increased under § 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;
(2) developing or distributing alternative water supplies; and
(3) conducting aquifer monitoring, data collection, and aquifer science.

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