In this subtitle the following words have the meanings indicated. “Expanded water appropriation permit” means a revised permit granting a significant increase in the withdrawal of water authorized under the existing water appropriation permit. “Public water system” has the meaning stated in § 9–401 of this article and is a water system located in the State. “Water conservation” means the use of practices, techniques, and technologies that: Reduce the consumption, loss, or waste of water; Improve efficiency in the use of water; or Make more efficient use of water treatment infrastructure.

This subtitle applies to public water systems serving at least 10,000 individuals that: Apply for a new or expanded water appropriation permit; or Apply for State financial assistance including the Maryland Water Quality Revolving Loan Fund as provided in § 9-1605 of this article and any other State funding source.

It is the policy of the State of Maryland to: Encourage investment in cost-effective measures that improve the efficiency with which water is used, treated, stored, and transmitted in the State; Reduce costs associated with treating, storing, and transmitting water; and Protect the State’s natural resources, including the fish and wildlife of the Potomac River, the Chesapeake Bay, and all other waters and waterways of the State.

When applying for a new or expanded water appropriation permit or State financial assistance, public water systems shall include a description of best management practices currently in use, or to be implemented, for improving water conservation and the efficiency with which water is used, treated, stored, and transmitted. The application shall also include a schedule for the implementation of best management practices. Best management practices may include the following: Practices designed to measure the amount of water conveyed through the system’s infrastructure to water users, such as universal metering; Audits of large-volume users; Reuse and recycling of water for nonpotable, nonresidential applications; Management of system pressure to reduce usage; Retrofit programs; Efficiency in landscape design and irrigation techniques; Wastewater reclamation and recycling programs; Fixture replacement programs; Water and wastewater pricing structures that encourage improved efficiency; Rebates and other financial incentives; An education program for users designed to promote increased efficiency and conservation; and Promotion or adoption of local water-use ordinances that encourage water conservation.

In reviewing requests for new or expanded water appropriation permits by public water systems, as defined by this subtitle, the Department shall consider existing local initiatives and voluntary efforts and best management practices set forth for implementation within a permit application. In reviewing and prioritizing requests by public water systems, as defined by this subtitle, for State financial assistance through the Maryland Water Quality Revolving Loan Fund under § 9-1605 of this article and other State funding sources, the Department shall consider local initiatives and voluntary efforts, and the best management practices set forth for implementation within a financial assistance application. On or before October 1, 2003, the Department shall issue guidelines to public water systems on best management practices for improving water conservation and efficiency in water use, treatment, storage, and transmission, including: Costs and cost-savings associated with implementing examples of specific best management practices; Water conservation associated with implementing specific best management practices; and Priority eligibility for funding through State financial resources for drinking water and wastewater treatment improvements including the Maryland Water Quality Revolving Loan Fund under § 9-1605 of this article and other State or federal financial assistance when best management practices are implemented. The Department may adopt regulations to establish the minimum increase in the amount of water to be withdrawn under an expanded water appropriation permit that requires compliance with this subtitle.