The department may allow a municipality or a quasi-municipal organization, such as a watershed management district, to substitute a management system for storm water approved by the department for the permit requirement applicable to projects in a designated area of the municipality. The municipality or quasi- municipality may elect to have this substitution take effect at the time the system is approved by the department, or at the time the system is completed as provided in an implementation schedule approved by the department.

Sec. 2. 38 MRSA §464, sub-§4, ¶A, as amended by PL 1997, c. 794, Pt. A, §30, is further amended by amending subparagraph (1) to read:

(1) Direct discharge of pollutants to waters having a drainage area of less than 10 square miles, except that discharges into these waters that were licensed prior to January 1, 1986, are allowed to continue only until practical alternatives exist;:

(a)__Discharges into these waters that were licensed prior to January 1, 1986 are allowed to continue only until practical alternatives exist; and

(b)__Storm water discharges in compliance 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