A. The district shall:

1. Establish annually the costs and expenses to replenish groundwater pursuant to this article with respect to all parcels of water district member land and all water district member service areas, including capital expenses and the operation, maintenance, replacement and administrative costs and expenses of the district relative to its replenishment activities and including reasonable reserves. Costs and expenses attributed by the district to contract replenishment obligations shall not be included in this calculation.

2. Provide for the payment of all costs and expenses to replenish groundwater pursuant to this chapter and the payment of operation, maintenance, replacement and administrative costs and expenses of the district relative to its replenishment activities.

3. Levy an annual replenishment assessment against all parcels of water district member land and an annual replenishment tax against all municipal providers that have water district member service areas to pay the costs and expenses to replenish groundwater as established pursuant to paragraph 1 of this subsection.

4. Levy a contract replenishment tax against municipal providers that are parties to contracts authorized under subsection B, paragraph 10 to pay the costs and expenses to replenish groundwater based on contract replenishment obligations.

5. Establish and maintain reserve accounts in amounts as may be deemed necessary to perform the water district groundwater replenishment obligation.

B. The district may:

1. Acquire, develop, construct, operate, maintain, replace and acquire permits for water storage, storage facilities and recovery wells for replenishment purposes.

2. Acquire, transport, hold, exchange, own, lease, store or replenish water, except groundwater withdrawn from an active management area, for the benefit of water district member lands and water district member service areas, subject to the provisions of Title 45, Chapter 3.1.

3. Acquire, hold, exchange, own, lease, retire or dispose of water rights for the benefit of water district member lands and water district member service areas.

4. Require municipal providers to provide such information, in such form and within the time limits prescribed, as may be necessary to carry out the purpose of this chapter.

5. Levy and collect assessments, fees, charges, taxes and such other revenues as are provided in this chapter for the financing of replenishment activities.

6. Contract for or perform feasibility studies of water storage, storage facilities and recovery wells for replenishment purposes.

7. Acquire real and personal property for water storage, storage facilities and recovery wells for replenishment purposes by purchase, lease, donation, dedication, exchange or other lawful means.

8. Subject to subsection H, contract with any municipal provider having a water district member service area to replenish groundwater on behalf of the municipal provider and with respect to the water district member service area in an amount in excess of the sum of the water district service area replenishment obligations applicable to the water district member service area for the years in which the district has not completed the replenishment of the water district groundwater replenishment obligation for the water district member service area.

C. The functions of the district under subsection B, paragraph 1 may be performed on behalf of the district by other persons under contract with the district.

D. For purposes of determining the annual costs and expenses of the district under subsection A, paragraph 1, the district shall amortize capital costs and expenses, including interest as determined by the district, over the useful life of the capital improvements, as determined by the district.

E. The district may replenish in advance an amount of groundwater in addition to the amount of groundwater required to complete replenishment of the water district groundwater replenishment obligation applicable to the three immediately preceding calendar years, provided that both:

1. The amount of additional groundwater replenished in advance by the district during a calendar year shall not exceed the water district groundwater replenishment obligation for the immediately preceding year, multiplied by twenty per cent.

2. The total amount of additional groundwater replenished in advance by the district at a particular time and not applied by the district to complete replenishment of a water district groundwater replenishment obligation shall not exceed the estimated water district groundwater replenishment obligation, as determined by the district, for the year of the determination.

F. Groundwater replenished by the district pursuant to a contract to replenish groundwater under subsection B, paragraph 8 is not additional groundwater replenished in advance under subsection E.

G. Groundwater replenished by the district is not additional groundwater replenished in advance under subsection E for as long as the costs and expenses of replenishing the groundwater are not included in the costs and expenses of replenishment established under subsection A, paragraph 1.

H. The district shall not enter into a contract authorized under subsection B, paragraph 8 unless the district has determined that the contract will not adversely affect the district’s ability to fulfill its obligations under this chapter. For each contract entered into under subsection B, paragraph 8, the district shall perform its contract replenishment obligations in the active management area in which the district is located.

I. If the district replenishes groundwater on behalf of a municipal provider pursuant to a contract to replenish groundwater under subsection B, paragraph 8, the amount of groundwater so replenished shall be a replenishment credit to the municipal provider, which may be applied by the municipal provider on notice to the district to reduce the water district service area replenishment obligations applicable to the municipal provider.