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(1) In addition to the powers conferred on an improvement district under Section 17B-1-103, an improvement district may:
(a) acquire through construction, purchase, gift, or condemnation, or any combination of these methods, and operate all or any part of a system for:
(i) the supply, treatment, and distribution of water;
(ii) the collection, treatment, and disposition of sewage;
(iii) the collection, retention, and disposition of storm and flood waters;
(iv) the generation, distribution, and sale of electricity, subject to Section 17B-2a-406; and
(v) the transmission of natural or manufactured gas if:
(A) the system is connected to a gas plant, as defined in Section 54-2-1, of a gas corporation, as defined in Section 54-2-1, that is regulated under Section 54-4-1;
(B) the system is to be used to facilitate gas utility service within the district; and
(C) the gas utility service was not available within the district before the acquisition of the system;
(b) issue bonds in accordance with Chapter 1, Part 11, Local District Bonds, to carry out the purposes of the improvement district;
(c) appropriate or acquire water or water rights inside or outside the improvement district's boundaries;
(d) sell water or other services to consumers residing outside the improvement district's boundaries;
(e) enter into a contract with a gas corporation that is regulated under Section 54-4-1 to:
(i) provide for the operation or maintenance of all or part of a system for the transmission of natural or manufactured gas; or
(ii) lease or sell all or a portion of a system described in Subsection (1)(e)(i) to a gas corporation;
(f) enter into a contract with a person for:
(i) the purchase or sale of water or electricity;
(ii) the use of any facility owned by the person; or
(iii) the purpose of handling the person's industrial and commercial waste and sewage;
(g) require pretreatment of industrial and commercial waste and sewage; and
(h) impose a penalty or surcharge against a public entity or other person with which the improvement district has entered into a contract for the construction, acquisition, or operation of all or a part of a system for the collection, treatment, and disposal of sewage, if the public entity or other person fails to comply with the provisions of the contract.
(2) The new gas utility service under Subsection (1)(a)(v)(B) shall be provided by a gas corporation regulated under Section 54-4-1 and not by the district.
(3) An improvement district may not begin to provide sewer service to an area where sewer service is already provided by an existing sewage collection system operated by a municipality or other political subdivision unless the municipality or other political subdivision gives its written consent.
(4) An improvement district authorized to operate all or any part of a system for the collection, treatment, or disposition of sewage may acquire, construct, or operate a resource recovery project in accordance with Section 19-6-508.