(a) The supplier of water may request, and the department may grant, one or more exemptions from any treatment technique requirement, except for disinfection of a surface water source, and/or any MCL, except for Escherichia coli (E. coli). Exemptions may be granted to any public water system based on a finding that:

1. (1) because of compelling factors which may include economic factors, the public water system is unable to comply with such MCL or treatment technique requirement;
2. (2) the public water system was in operation on the effective date of such MCL or treatment technique requirement; and
3. (3) the granting of an exemption will not result in an unreasonable risk to health.

(b) Exemptions, if granted, will be issued with a mandatory compliance strategy to include, but not be limited to the following:

1. (1) a specific time which to achieve compliance, including increments of progress to meet the MCL or treatment technique covered by the exemption;
2. (2) control measures as the department may require to ensure the public health; and
3. (3) appropriate modifications and/or improvements to the existing system or facility as may be necessary for the system or facility to fully conform to the requirements of this Subpart.

(d) The final date for compliance provided in any schedule in the case of any exemption may be extended by the State for a period not to exceed three years after the date of the issuance of the exemption if the public water system establishes that:

1. (1) the system cannot meet the standard without capital improvements which cannot be completed within the period of such exemption;
2. (2) in the case of a system which needs financial assistance for the necessary improvements, the system has entered into an agreement to obtain such financial assistance; or
3. (3) the system has entered into an enforceable agreement to become a part of a regional public water system; and the system is taking all practicable steps to meet the standard.