(a) On or before January 1, 2004, the state board, in consultation with the State Department of Public Health, the California Coastal Commission, the California Conference of Directors of Environmental Health, counties, cities, and other interested parties, shall adopt regulations or standards for the permitting and operation of all of the following onsite sewage treatment systems in the state and shall apply those regulations or standards commencing six months after their adoptions:

1. (1) Any system that is constructed or replaced.
2. (2) Any system that is subject to a major repair.
3. (3) Any system that pools or discharges to the surface.
4. (4) Any system that, in the judgment of a regional board or authorized local agency, discharges waste that has the reasonable potential to cause a violation of water quality objectives, or to impair present or future beneficial uses of water, to cause pollution, nuisance, or contamination of the waters of the state.

(b) Regulations or standards adopted pursuant to subdivision (a), shall include, but shall not be limited to, all of the following:

1. (1) Minimum operating requirements that may include siting, construction, and performance requirements.
2. (2) Requirements for onsite sewage treatment systems adjacent to impaired waters identified pursuant to subdivision (d) of Section 303 of the Clean Water Act (33 U.S.C. Sec. 1313(d)).
3. (3) Requirements authorizing a qualified local agency to implement those requirements adopted under this chapter within its jurisdiction if that local agency requests that authorization.
4. (4) Requirements for corrective action when onsite sewage treatment systems fail to meet the requirements or standards.
5. (5) Minimum requirements for monitoring used to determine system or systems performance, if applicable.
6. (6) Exemption criteria to be established by regional boards.
7. (7) Requirements for determining a system that is subject to a major repair, as provided in paragraph (2) of subdivision (a).