Authority: IC 13-13-5-1; IC 13-13-5-2; IC 13-18

Affected: IC 13-18-3-14; IC 13-23-13; IC 13-24-1; IC 13-25-5

Sec. 7. (a) A discharger proposing to cause a significant lowering of water quality in an OSRW shall:

1. (1) implement a water quality improvement project in the watershed of the affected OSRW; or
2. (2) fund a water quality improvement project in the watershed of the affected OSRW by payment of a fee into the OSRW improvement fund established under IC 13-18-3-14;

for each activity undertaken that will result in a significant lowering of water quality in an OSRW.

(b) To implement a water quality improvement project in the watershed of the affected OSRW, the following apply:

1. (1) A person proposing to implement a water quality improvement project in the watershed of the OSRW that will result in an overall improvement of the water quality of the OSRW shall submit information on the proposed water quality improvement project to the commissioner simultaneously with the submission of the antidegradation demonstration required under section 5 of this rule. The water quality improvement project information must include the following:

   1. (A) A detailed description of the project, including:

      1. (i) the type and quantity of pollutants that will be reduced or eliminated as a result of the project; and
      2. (ii) a project implementation timeline.
   2. (B) Sufficient information to clearly demonstrate that the project will result in an overall improvement in water quality in the OSRW.
   3. (C) Any data used to assess overall water quality improvement must be less than seven (7) years old and specific to the OSRW.

2. (2) Upon receipt of the water quality improvement project information, the commissioner shall do the following:

   1. (A) Provide notice and request comment according to 327 IAC 5-2-11.2(b).
   2. (B) Hold a public meeting in accordance with 327 IAC 5-2-11.2(b)(3) on the water quality improvement project information concurrently with the public meeting held on the antidegradation demonstration.
3. (3) Once the commissioner determines that the information provided by the person submitting the proposed water quality improvement project is administratively complete, the commissioner shall make a determination as to whether the project, based on the information submitted by the applicant, will result in an overall improvement in water quality in the OSRW.

4. (4) The commissioner shall approve or deny a water quality improvement project considering the following factors:

   1. (A) Whether the project can be successfully implemented.
   2. (B) Whether the project will offset the lowering of water quality caused by new or increased loadings of regulated pollutants.

(c) A person proposing to fund a water quality improvement project in the watershed of the affected OSRW by payment of a fee into the OSRW improvement fund established under IC 13-18-3-14 prior to issuance of a permit, shall pay an amount that:

1. (1) shall not exceed five hundred thousand dollars ($500,000); and

2. (2) is determined by the department based on the:

   1. (A) type and quantity of increased pollutant loadings;
   2. (B) estimated initial capital cost; and
   3. (C) costs of operation and maintenance;
3. for the treatment system or other alternative that would be necessary to offset the proposed significant lowering of water quality caused by the increased pollutant loadings to the OSRW.

(d) The commissioner, prior to utilizing the funds in the OSRW improvement fund, shall solicit input from interested parties on the identification and selection of the water quality improvement projects to be funded with the funds in the OSRW improvement fund.

(e) The commissioner shall utilize the funds in the OSRW improvement fund to implement water quality improvement projects considering the following factors:

1. (1) Whether the project can be successfully implemented.
2. (2) Whether the project will offset the lowering of water quality caused by new or increased loadings of a regulated pollutant.
3. (3) Cost-effectiveness of the project.

(Water Pollution Control Division; 327 IAC 2-1.3-7; filed May 29, 2012, 3:19 p.m.: 20120627-IR-327080764FRA; errata filed Oct 17, 2012, 3:30 p.m.: 20121107-IR-327120574ACA; readopted filed Oct 18, 2024, 1:57 p.m.: 20241113-IR-327230810RFA)