(a) The department shall establish a pilot program to evaluate the effectiveness of phosphorus offsets as a potential basis for allowing the construction of new wastewater treatment plants, or the expansion of existing plants, with a surface discharge in a phosphorus restricted basin located in the west of Hudson watershed. Such pilot program shall be limited to a term of five years, commencing on the effective date of these rules and regulations and expiring on the fifth anniversary thereof. During the term of the pilot program, the department may approve the siting of a new wastewater treatment plant, or the expansion of an existing plant, with a surface discharge in a phosphorus restricted basin located in the west of Hudson watershed, provided that the following conditions are met:

1. (1) The county in which the new wastewater treatment plant, or the expansion of an existing plant, is proposed to be sited has prepared, or is in the process of preparing, a comprehensive strategy, in partnership with the department and with the local governments located within the county and affected by the comprehensive strategy. The comprehensive strategy should identify existing economic resources, water quality problems, potential remedies for such problems and potential strategies and recommendations of economic development initiatives that could be undertaken to sustain local economies while remaining protective of the water supply.
2. (2) The applicant demonstrates that the new wastewater treatment plant, or the expansion of an existing plant, together with the offsets the applicant is proposing to make under paragraph (3) of this subdivision, is consistent with the comprehensive strategy.
3. (3) The applicant demonstrates, and commits to take action to insure, that every one kilogram of projected increase in the phosphorus load resulting from the new wastewater treatment plant or the expansion of an existing plant, and the accompanying non-point source runoff will be actually offset by at least three kilograms of reductions in phosphorus loading within the basin in which such new wastewater treatment plant, or the expansion of an existing plant, is located. For purposes of this subdivision, the applicant may use as an offset any phosphorus reduction funded by the Catskill Fund for the Future or achieved from stormwater pollution prevention measures installed on existing structures or impervious surfaces in a village center or hamlet and funded by the department.
4. (4) All new wastewater treatment plants, or expansions of existing plants, proposed to be constructed pursuant to this pilot program shall be reviewed and approved by the department.
5. (5) No more than three new wastewater treatment plants, or expansions of existing plants, with surface discharge shall be allowed into any phosphorus restricted basin pursuant to this pilot program. The total capacity, as constructed, of the three plants shall not exceed a maximum of 100,000 gpd aggregate surface discharge.
6. (6) Any wastewater treatment plant, or expansion of an existing plant, constructed pursuant to this pilot program shall be designed and operated to meet the total phosphorus effluent limit of.2 mg/l.