(a) In this section, “system” means a system for the:
(1) provision of water to the public for human consumption; or
(2) collection and treatment of wastewater.
(b) The authority shall adopt an asset management plan by:
(1) preparing an asset inventory that identifies the assets of each system and the condition of the assets;
(2) developing criteria to prioritize assets for repair or replacement, including:
(A) the date by which the asset will need to be repaired or replaced;
(B) the importance of the asset in providing safe drinking water and complying with regulatory standards;
(C) the importance of the asset to the effective operation of the system; and
(D) other criteria as determined by the authority;
(3) estimating asset repair and replacement costs;
(4) identifying and evaluating potential financing options; and
(5) prioritizing systems that are not in compliance with federal or state regulatory standards, including water quality standards.

(c) The authority shall review and revise the plan as necessary to account for regulatory changes and other developments.
(d) The board shall approve the plan annually as part of its budgeting process.