(a) Upon completion of the pilot programs set forth in sections 128-8.2(g) and 128-8.3(a) of this Subpart, the department may determine, based on the results of the pilot program or of other studies conducted in the watershed that:

1. (1) phosphorus offsets sought pursuant to sections 128-8.2(g) and 128-8.3(a) of this Subpart have been achieved and that a permanent phosphorus offset program should be established, with such conditions as may be appropriate based on the results of the pilot program or other studies conducted in the watershed;

   1. (i) pending completion of any necessary rulemaking for the continuation of a permanent phosphorus offset program, including any appropriate modifications thereto, the department may allow the construction of new wastewater treatment plants with surface discharges into phosphorus restricted basins located outside of the 60-day travel time on a case-by-case basis pursuant to the standards set forth in section 128-6.1 of this Part and subject to such conditions as may be appropriate based upon the results of the pilot program and other studies conducted in the watershed; or
2. (2) there is insufficient data on which to make a determination that phosphorus offsets have been achieved; therefore, the time frame for the pilot programs shall be extended for a period not to exceed five years to allow for the acquisition of further data. Nothing contained in this subdivision shall allow for an increase in the number or size of the wastewater treatment plants allowed pursuant to the pilot programs as set forth in sections 128-8.2(g) and 128-8.3(a) of this Subpart; and
3. (3) in the west of Hudson watershed, in any permanent phosphorus offset program, provided 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, 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.