(b)__Storm water discharges in conformance with state and local requirements are exempt from this subparagraph;

Sec. 3. 38 MRSA §465, sub-§2, ¶C, as affected by PL 1989, c. 890, Pt. A, §40 and amended by Pt. B, §62, is further amended to read:

C. Direct discharges to these waters licensed after January 1, 1986, are permitted only if, in addition to satisfying all the requirements of this article, the discharged effluent will be equal to or better than the existing water quality of the receiving waters. Prior to issuing a discharge license, the department shall require the applicant to objectively demonstrate to the department's satisfaction that the discharge is necessary and that there are no other reasonable alternatives available. Discharges into waters of this classification licensed prior to January 1, 1986, are allowed to continue only until practical alternatives exist. There may be no deposits of any material on the banks of these waters in any manner so that transfer of pollutants into the waters is likely. This paragraph does not apply to the discharge of storm water.

Sec. 4. 38 MRSA §465, sub-§2, ¶¶D and E are enacted to read:

D.__Storm water discharges to Class A waters must be in compliance with state and local requirements.

E.__There may be no deposits of any material on the banks of Class A waters in any manner so that transfer of pollutants into the waters is likely.

Sec. 5. Report. By February 1, 2004, the Department of Environmental Protection shall report to the Joint Standing Committee on Natural Resources with recommendations for improving the effectiveness of storm water management in this State. These recommendations must include provisionally adopted rules pursuant to the Maine Revised Statutes, Title 38, sections 413 and 420-D to regulate storm water discharges to impaired waters from existing development where necessary to allow restoration of water quality and from new development both during and after construction. The department may also make recommendations concerning other issues such as encouraging the creation of local