Review and Approval of Projects; Special Regulations and Standards; Hearings/Enforcement Actions, 38692-38707 [06-5632]

Agencies

• Susquehanna River Basin Commission

[Federal Register Volume 71, Number 130 (Friday, July 7, 2006)]
[Proposed Rules]
[Pages 38692-38707]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-5632]



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Part II





Susquehanna River Basin Commission





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18 CFR Parts 803, 804, and 805



Review and Approval of Projects; Special Regulations and Standards; 
Hearings/Enforcement Actions; Proposed Rule

Federal Register / Vol. 71, No. 130 / Friday, July 7, 2006 / Proposed 
Rules

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SUSQUEHANNA RIVER BASIN COMMISSION

18 CFR Parts 803, 804 and 805


Review and Approval of Projects; Special Regulations and 
Standards; Hearings/Enforcement Actions

AGENCY: Susquehanna River Basin Commission (SRBC).

ACTION: Proposed rule.

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SUMMARY: This document contains extensive amendments to project 
regulations concerning standards and hearings/enforcement actions. 
Because revisions are too numerous to show within the original 
regulations, proposed parts 803, 804 and 805 are being published here 
in their entirety, with an explanation of changes in the SUPPLEMENTARY 
INFORMATION section below. These regulations provide the procedural and 
substantive rules for SRBC review and approval of water resources 
projects and the procedures governing hearings and enforcement actions. 
These amendments include additional due process safeguards, add new 
standards for projects, improve organizational structure, incorporate 
recently adopted policies and clarify language.

DATES: Comments on these proposed amendments may be submitted to the 
SRBC on or before September 1, 2006. The Commission has scheduled 
public hearings on the proposed rules as follows:
    a. August 8, 2006, 6:30 p.m.--Owego Treadway Inn, Owego, NY.
    b. August 10, 2006, 8:30 a.m.--PA Bureau of Topographic and 
Geologic Survey, Middletown, PA.
    c. August 10, 2006, 6:30 p.m.--Kings College, Snyder Room, Wilkes-
Barre, PA.
    Those wishing to testify are asked to notify the Commission in 
advance if possible at the regular or electronic addresses given below.

ADDRESSES: Comments may be mailed to: Mr. Richard A. Cairo, Susquehanna 
River Basin Commission, 1721 N. Front Street, Harrisburg, PA 17102-
2391; rcairo@srbc.net.

FOR FURTHER INFORMATION CONTACT: Richard A. Cairo, General Counsel/ 
Secretary, 717-238-0423; Fax: 717-238-2436; e-mail: rcairo@srbc.net. 
Also, for further information on the proposed rulemaking action, visit 
the Commission's Web site at www.srbc.net.

SUPPLEMENTARY INFORMATION:

Background

    The SRBC adopted a final rule on May 11, 1995, published at 60 FR 
31391, June 15, 1995 establishing: (1) The scope and procedures for 
review and approval of projects under Section 3.10 of the Susquehanna 
River Basin Compact, Pub. L. 91-575; 83 Stat. 1509 et seq. (the 
compact); (2) special standards under Section 3.4 (2) of the compact 
governing water withdrawals and consumptive use of water; and (3) 
procedures for hearings and enforcement actions.

Need for Amendments

    After 11 years of experience with these regulations, the SRBC has 
uncovered many provisions that require strengthening, reorganization 
and clarification. In addition, the Commission has since adopted 
several important policies relating to the management of the basin's 
water resources and the enforcement of these regulations. As a matter 
of sound legal practice, these policies need to be incorporated into 
the language of the regulations.

Highlights of Major Amendments

18 CFR PART 803--REVIEW AND APPROVAL OF PROJECTS

Subpart A--General Provisions

    1. Section 803.3 Definitions.--A definition for ``change in 
ownership'' has been included because of modifications proposed in 
Sec.  803.4, related to certain grandfathered uses or withdrawals.
    2. Section 803.4 Projects requiring review and approval.--This 
section reorganizes and expands what projects require review and 
approval and whether any exemptions apply. In part, this section 
consolidates provisions currently contained in various sections of the 
existing regulations. A significant addition is that to the extent that 
a consumptive water use project involves a withdrawal from ground or 
surface water, the withdrawal will also be subject to review.
    Additionally, the current 100,000 gallons per day (gpd) threshold 
for withdrawals has been expanded to include any combination of ground 
or surface water withdrawals exceeding that threshold. This section 
also will end the recognition of ``pre-compact'' or ``grandfathered'' 
consumptive uses or withdrawals upon a change of ownership, and will 
end the practice under existing Sec.  803.31 of allowing the transfer 
of project approvals when a change of ownership occurs.
    Exceptions are contained in the definition of the term ``change of 
ownership'' for the transfer of projects involving corporate 
reorganizations, transfers to certain family members, and transfers of 
agricultural land for so long as it continues to be used for 
agricultural purposes.
    (The existing project review and approval requirements are 
currently suspended for projects involving agricultural water use and 
the Commission intends to continue the suspension as its member 
jurisdictions actively pursue alternative consumptive use compliance 
options for agricultural operations in cooperation with the 
Commission.)

Subpart B--Application Procedure

    3. Section 803.12 Constant-rate aquifer testing.--Requirements 
regarding constant-rate aquifer tests are set forth in a new section 
and expanded to incorporate a time limit for testing to occur.
    4. Section 803.14 Contents of application.--This section is 
reorganized to include a comprehensive list of information that a 
project sponsor must provide when making application to the Commission.
    5. Section 803.16 Completeness of application.--This section 
replaces Sec.  803.26 and sets out a procedure for dealing with 
incomplete project applications pursuant to existing Commission 
practice.

Subpart C--Standards for Review and Approval

    6. Section 803.21 General standards.--This section covers the 
criteria for approval of a project by the Commission. Also, in 
accordance with current policy, provisions are added to allow the 
Commission to suspend the processing of a project application if a 
signatory party or a political subdivision of a signatory party 
exercising lawful authority over the project has disapproved the 
project, and to suspend an approval itself if a project sponsor fails 
to maintain such approvals.
    7. Section 803.22 Standards for consumptive uses of water.--This 
section replaces the current Sec.  803.42. Several changes are made, 
including the removal of a specific low flow criterion (Q7-10) and 
inclusion of an approval by rule provision for certain consumptive use 
projects that obtain their water from public water supplies. These 
types of projects would no longer have to be individually approved by 
the Commission.
    8. Section 803.23 Standards for water withdrawals.--This section 
consolidates existing Sec. Sec.  803.43 (Standards for ground-water 
withdrawals) and 803.44 (Standards for surface water withdrawals) into 
a single section covering standards for all withdrawals, and clarifies 
the

[[Page 38693]]

conditions or limitations that can be imposed on withdrawals to avoid 
adverse impacts on the environment or other users. Application 
standards for constant-rate aquifer tests for proposed groundwater 
withdrawals have been moved to Sec.  803.12. Monitoring requirements 
are moved to new Sec.  803.30 (Monitoring), where details on measuring 
and recording, reporting, and monitoring methodology are set forth.
    9. Section 803.24 Standards for diversions.--This section sets 
standards for the approval of diversions by incorporating a Commission 
policy applying to out-of-basin diversions of water and also sets 
standards for in-basin diversions. As permitted under the terms of 
section 3.10 of the compact, this new section exempts ``out-of-basin'' 
diversions up to 20,000 gpd. In-basin diversions of any quantity 
continue to be subject to review and approval.
    10. Section 803.25 Water conservation standards.--The water 
conservation standards currently set forth in part 804, subpart B, are 
moved to Sec.  803.25. While no substantive changes are being made now 
in these proposed revisions, the Commission considers water 
conservation to be a vital component of water resources management and 
will revisit these standards in the near future in close coordination 
with the member jurisdictions.

Subpart D--Terms and Conditions of Approval

    11. Section 803.30 Monitoring.--This section consolidates existing 
provisions and Commission practice related to monitoring, removes 
triennial water quality monitoring requirements, sets a daily quantity 
measurement standard unless otherwise set by the Commission, certifies 
the accuracy of measurement devices every 5 years, sets quantity 
reporting as the requirement unless otherwise specified, and special 
reporting of violations and loss of measurement capabilities.
    12. Section 803.31 Duration of approvals and renewals.--This 
section would be a modification of the existing Sec.  803.30. Approval 
durations are reduced to a general term of 15 years instead of 25 
years, though exceptions for cause are provided. Other changes relate 
to the expiration and extension of approvals for uninitiated uses of 
water, the abandonment or discontinuance of a water use, and the 
renewal of expiring approvals.
    13. Section 803.32 Reopening/modification.--The application process 
for reopening has been simplified for interested parties. Other changes 
address certain actions now currently imposed as docket conditions, 
such as:
    a. Modify or revoke docket approvals for failure to comply with 
docket conditions, and failure to obtain or maintain approvals from 
other federal, state, or local agencies;
    b. Require a project sponsor to provide a temporary source of water 
if interference occurs; and
    c. Reopen any approval upon its own motion to make corrective 
modifications.
    14. Section 803.34 Emergencies.--This section expands the current 
Sec.  803.27, dealing with the issuance of emergency certificates by 
the Executive Director. It incorporates the details of existing 
Commission policy and details the procedure for obtaining an emergency 
certificate to protect the public health, safety, and welfare, or to 
avoid substantial and irreparable injury.
    15. Section 803.35 Fees.--This section makes it clear that project 
sponsors have an affirmative duty under the Commission's regulations to 
pay such fees as may be established by the Commission.

18 CFR PART 804--WATER WITHDRAWAL REGISTRATION

    16. Section 804.2 Time limits.--The only substantive change in this 
part is the addition of language clarifying that compliance with a 
registration or reporting requirement, or both, of a member 
jurisdiction that is substantially equivalent to the Commission 
registration requirement shall be considered in compliance with the 
Commission requirement.

18 CFR PART 805--HEARINGS/ENFORCEMENT ACTIONS

Subpart A--Conduct of Hearings

    17. Section 805.1(a) Public hearings.--This section remains largely 
intact, with revisions to clarify the rules governing standard public 
hearings before the Commission on such matters as rulemaking, 
comprehensive plan additions, and project review.
    18. Section 805.2 Administrative appeals.--This is a new section 
providing an administrative appeal procedure for persons aggrieved by 
any action or decision of the Commission or the Executive Director. 
Hearings under this section provide another administrative appeal 
option prior to an appeal to the United States District Court. Also 
included are provisions for stays and intervention of parties.
    19. Section 805.3 Hearing on administrative appeal.--This section 
adds detailed procedures for hearings to be held on administrative 
appeals, currently contained in section 805.2 for adjudicatory 
hearings. Included are the powers of the hearing officer, provisions 
for recording the hearing proceedings, provisions for staff and other 
expert testimony, provisions for the inclusion of written testimony, 
rules for assessing costs, and an in forma pauperis procedure.

Subpart B--Compliance and Enforcement

    20. Section 805.11 Duty to comply.--New section affirming the 
existing duty of any person to comply with any provision of the compact 
or rules, regulations, orders, approvals, and conditions of approval.
    21. Section 805.12 Investigative powers.--This new section sets 
forth the powers of agents or employees of the Commission to inspect or 
investigate facilities to determine compliance with any provisions of 
the compact or the regulations of the Commission. These requirements 
are currently set forth as conditions in docket approvals. Owners and 
operators of facilities are also directed to provide true and accurate 
information as requested by the Commission and are subject to the 
``falsification to authorities'' statutes of the member jurisdictions.
    22. Section 805.13 Notice of Violation.--This section provides a 
procedure for the issuance of a Notice of Violation to an alleged 
violator of any rule, regulation, order, approval, or docket condition, 
consistent with current Commission practice.
    23. Section 805.14 Orders.--This is a section explicitly stating 
the authority of both the Executive Director and the Commission to 
issue various orders, including requiring a project to cease and desist 
any action or activity to prevent harm and enforce the provisions of 
the compact, regulations, docket conditions, or any rules or 
regulations of the Commission.
    24. Section 805.15 Show cause proceeding.--This section establishes 
the basic procedural device for enforcement of Commission regulations 
and docket conditions through the imposition of penalties or other 
sanctions on violators pursuant to section 15.17 of the compact. To 
insure the integrity of this process, provisions are included to 
separate adjudicatory and prosecutorial functions of the Commission. 
The provisions of this section also preserve the opportunity for the 
alleged violator to present testimony for consideration prior to action 
by the commissioners.
    25. Section 805.18 Settlement by agreement.--Paragraph (b) 
incorporates the standard language of all Commission

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settlement agreements that the Commission may reinstitute a civil 
penalty action if the violator fails to carry out any of the terms of 
the settlement agreement.

List of Subjects in 18 CFR Parts 803, 804, and 805

    Administrative practice and procedure, Water resources.

    Accordingly for the reasons set forth in the preamble, 18 CFR parts 
803, 804, and 805 are proposed to be revised as follows:

PART 803--REVIEW AND APPROVAL OF PROJECTS

Subpart A--General Provisions
Sec.
803.1 Scope.
803.2 Purposes.
803.3 Definitions.
803.4 Projects requiring review and approval.
803.5 Projects that may require review and approval.
803.6 Transferability of Project Approvals.
803.7 Concurrent project review by member jurisdictions.
803.8 Waiver/modification.
Subpart B--Application Procedure
803.10 Purpose of this subpart.
803.11 Preliminary consultations.
803.12 Constant-rate aquifer testing.
803.13 Submission of application.
803.14 Contents of application.
803.15 Notice of application.
803.16 Completeness of application.
Subpart C--Standards for Review and Approval
803.20 Purpose of this subpart.
803.21 General standards.
803.22 Standards for consumptive uses of water.
803.23 Standards for water withdrawals.
803.24 Standards for diversions.
803.25 Water conservation standards.
Subpart D--Terms and Conditions of Approval
803.30 Monitoring.
803.31 Duration of approvals and renewals.
803.32 Reopening/modification.
803.33 Interest on fees.
803.34 Emergencies.
803.35 Fees.

    Authority: Secs. 3.4, 3.5 (5), 3.8, 3.10 and 15.2, Pub. L. 91-
575, 84 Stat. 1509 et seq.

Subpart A--General Provisions


Sec.  803.1  Scope.

    (a) This part establishes the scope and procedures for review and 
approval of projects under Section 3.10 of the Susquehanna River Basin 
Compact, Public Law 91-575, 84 Stat. 1509 et seq., (the compact) and 
establishes special standards under Section 3.4(2) of the compact 
governing water withdrawals and the consumptive use of water. The 
special standards established pursuant to Section 3.4(2) shall be 
applicable to all water withdrawals and consumptive uses in accordance 
with the terms of those standards, irrespective of whether such 
withdrawals and uses are also subject to project review under Section 
3.10. This part, and every other part of 18 CFR Chapter VIII, shall 
also be incorporated into and made a part of the comprehensive plan.
    (b) When projects subject to Commission review and approval are 
sponsored by governmental authorities, the Commission shall submit 
recommendations and findings to the sponsoring agency, which shall be 
included in any report submitted by such agency to its respective 
legislative body or to any committee thereof in connection with any 
request for authorization or appropriation therefor. The Commission 
review will ascertain the project's compatibility with the objectives, 
goals, guidelines and criteria set forth in the comprehensive plan. If 
determined compatible, the said project will also be incorporated into 
the comprehensive plan, if so required by the compact. For the purposes 
of avoiding conflicts of jurisdiction and of giving full effect to the 
Commission as a regional agency of the member jurisdictions, no 
expenditure or commitment shall be made by any governmental authority 
for or on account of the construction, acquisition or operation of any 
project or facility unless it first has been included by the Commission 
in the comprehensive plan.
    (c) If any portion of this part, or any other part of 18 CFR 
Chapter VIII, shall, for any reason, be declared invalid by a court of 
competent jurisdiction, all remaining provisions shall remain in full 
force and effect.
    (d) Except as otherwise stated in this part, this part shall be 
effective on ------------------------.
    (e) When any period of time is referred to in this part, such 
period in all cases shall be so computed as to exclude the first and 
include the last day of such period. Whenever the last day of any such 
period shall fall on Saturday or Sunday, or on any day made a legal 
holiday by the law of the United States, such day shall be omitted from 
the computation.
    (f) Any forms or documents referenced in this part may be obtained 
from the Commission at 1721 North Front Street, Harrisburg, PA 17102-
2391, or from the Commission's Web site at https://www.srbc.net.


Sec.  803.2  Purposes.

    (a) The general purposes of this part are to advance the purposes 
of the compact and include, but are not limited to:
    (1) The promotion of interstate comity;
    (2) The conservation, utilization, development, management and 
control of water resources under comprehensive, multiple purpose 
planning; and
    (3) The direction, supervision and coordination of water resources 
efforts and programs of federal, state and local governments and of 
private enterprise.
    (b) In addition, Sec. Sec.  803.22, 803.23 and 803.24 of this part 
contain the following specific purposes: Protection of public health, 
safety and welfare; stream quality control; economic development; 
protection of fisheries and aquatic habitat; recreation; dilution and 
abatement of pollution; the regulation of flows and supplies of ground 
and surface waters; the avoidance of conflicts among water users; the 
prevention of undue salinity; and protection of the Chesapeake Bay.
    (c) The objective of all interpretation and construction of this 
part and all subsequent parts is to ascertain and effectuate the 
purposes and the intention of the Commission set out in this section. 
These regulations shall not be construed in such a way as to limit the 
authority of the Commission, the enforcement actions it may take, or 
the remedies it may prescribe.


Sec.  803.3  Definitions.

    For purposes of parts 803, 804 and 805, unless the context 
indicates otherwise, the words listed in this section are defined as 
follows:
    Agricultural water use. A water use associated primarily with the 
raising of food, fiber or forage crops, trees, flowers, shrubs, turf, 
livestock and poultry. The term shall include aquaculture.
    Application. A written request for action by the Commission 
including without limitation thereto a letter, referral by any agency 
of a member jurisdiction, or an official form prescribed by the 
Commission.
    Basin. The area of drainage of the Susquehanna River and its 
tributaries into the Chesapeake Bay to the southern edge of the 
Pennsylvania Railroad bridge between Havre de Grace and Perryville, 
Maryland.
    Change of Ownership. A change in ownership shall mean any transfer 
by sale or conveyance of the real or personal property comprising a 
project. A change of ownership shall not include:

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    (1) A corporate reorganization of the following types:
    (i) Where property is transferred to a corporation by one or more 
persons solely in exchange for stock or securities of the same 
corporation, provided that immediately after the exchange the same 
person or persons are in control of the transferee corporation, that 
is, they own 80 percent of the voting stock and 80 percent of all other 
stock of the corporation.
    (ii) Where such transfer is merely a result of a change of the 
name, identity, internal corporate structure or place of organization 
and does not affect ownership and/or control.
    (2) Transfer of a project to the transferor's spouse or one or more 
lineal descendents, or any spouse of such lineal descendents, or to a 
corporation owned or controlled by the transferor, or the transferor's 
spouse or lineal descendents, or any spouse of such lineal descendents, 
for so long as the combined ownership interest of the transferor, the 
transferor's spouse and/or the transferor's lineal descendent(s) and 
their spouses, continues to be 51 percent or greater.
    (3) Transfer of land used primarily for the raising of food, fiber 
or forage crops, trees, flowers, shrubs, turf, livestock, poultry or 
aquaculture, for so long as such agricultural use and its associated 
agricultural water use continues.
    Commission.  The Susquehanna River Basin Commission, as established 
in Article 2 of the compact, including its commissioners, officers, 
employees, or duly appointed agents or representatives.
    Commissioner. Member or Alternate Member of the Susquehanna River 
Basin Commission as prescribed by Article 2 of the compact.
    Compact. The Susquehanna River Basin Compact, Pub. L. 91-575; 84 
Stat. 1509 et seq.
    Comprehensive plan. The comprehensive plan prepared and adopted by 
the Commission pursuant to Articles 3 and 14 of the compact.
    Consumptive use. The loss of water transferred through a manmade 
conveyance system or any integral part thereof (including such water 
that is purveyed through a public water supply or wastewater system), 
due to transpiration by vegetation, incorporation into products during 
their manufacture, evaporation, injection of water or wastewater into a 
subsurface formation from which it would not reasonably be available 
for future use in the basin, diversion from the basin, or any other 
process by which the water is not returned to the waters of the basin 
undiminished in quantity.
    Diversion. The transfer of water into or out of the basin.
    Executive Director. The chief executive officer of the Commission 
appointed pursuant to Article 15, Section 15.5, of the compact.
    Facility. Any real or personal property, within or without the 
basin, and improvements thereof or thereon, and any and all rights of 
way, water, water rights, plants, structures, machinery, and equipment 
acquired, constructed, operated, or maintained for the beneficial use 
of water resources or related land uses or otherwise including, without 
limiting the generality of the foregoing, any and all things and 
appurtenances necessary, useful, or convenient for the control, 
collection, storage, withdrawal, diversion, release, treatment, 
transmission, sale, or exchange of water; or for navigation thereon, or 
the development and use of hydroelectric energy and power, and public 
recreational facilities; of the propagation of fish and wildlife; or to 
conserve and protect the water resources of the basin or any existing 
or future water supply source, or to facilitate any other uses of any 
of them.
    Governmental authority. A federal or state government, or any 
political subdivision, public corporation, public authority, special 
purpose district, or agency thereof.
    Groundwater. Water beneath the surface of the ground within a zone 
of saturation, whether or not flowing through known and definite 
channels or percolating through underground geologic formations, and 
regardless of whether the result of natural or artificial recharge. The 
term includes water contained in quarries, pits and underground mines 
having no significant surface water inflow, aquifers, underground water 
courses and other bodies of water below the surface of the earth. The 
term also includes a spring in which the water level is sufficiently 
lowered by pumping to eliminate the surface flow.
    Member jurisdiction. The signatory parties as defined in the 
compact, comprised of the States of Maryland and New York, the 
Commonwealth of Pennsylvania, and the United States of America.
    Member state. The States of Maryland and New York, and the 
Commonwealth of Pennsylvania.
    Person. An individual, corporation, partnership, unincorporated 
association, and the like and shall have no gender and the singular 
shall include the plural. The term shall include a governmental 
authority and any other entity which is recognized by law as the 
subject of rights and obligations.
    Pre-compact consumptive use. The maximum average daily quantity or 
volume of water consumptively used over any consecutive 30-day period 
prior to January 23, 1971.
    Project. Any work, service, activity, or facility undertaken which 
is separately planned, financed or identified by the Commission, or any 
separate facility undertaken or to be undertaken by the Commission or 
otherwise within a specified area, for the conservation, utilization, 
control, development, or management of water resources which can be 
established and utilized independently, or as an addition to an 
existing facility, and can be considered as a separate entity for 
purposes of evaluation.
    Project sponsor. Any person who owns, operates or proposes to 
undertake a project. The singular shall include the plural.
    Public water supply. A system, including facilities for collection, 
treatment, storage and distribution, that provides water to the public 
for human consumption, that:
    (1) Serves at least 15 service connections used by year-round 
residents of the area served by the system; or
    (2) Regularly serves at least 25 year-round residents.
    Surface water. Water on the surface of the earth, including water 
in a perennial or intermittent watercourse, lake, reservoir, pond, 
spring, wetland, estuary, swamp or marsh, or diffused surface water, 
whether such body of water is natural or artificial.
    Water or waters of the basin. Groundwater or surface water, or 
both, within the basin either before or after withdrawal.
    Water resources. Includes all waters and related natural resources 
within the basin.
    Withdrawal. A taking or removal of water from any source within the 
basin.


Sec.  803.4  Projects requiring review and approval.

    Except for activities relating to site evaluation or as otherwise 
allowed under Sec.  803.34, no person shall undertake any of the 
following projects without prior review and approval by the Commission. 
The project sponsor shall submit an application in accordance with 
subpart B and shall be subject to the applicable standards in subpart 
C.
    (a) Consumptive use of water. The consumptive water use projects 
described below shall require an application to be submitted in

[[Page 38696]]

accordance with Sec.  803.12, and shall be subject to the standards set 
forth in Sec.  803.22, and, to the extent that it involves a withdrawal 
from groundwater or surface water, shall also be subject to the 
standards set forth in Sec.  803.23. Except to the extent that they 
involve the diversion of the waters of the basin, public water supplies 
shall be exempt from the requirements of this section regarding 
consumptive use; provided, however, that nothing in this section shall 
be construed to exempt individual consumptive users connected to any 
such public water supply from the requirements of this section.
    (1) Except for projects previously approved by the Commission for 
consumptive use and projects that existed prior to January 23, 1971, 
any project involving a consumptive water use of an average of 20,000 
gallons per day (gpd) or more in any consecutive 30-day period.
    (2) With respect to projects previously approved by the Commission 
for consumptive use, any project that will involve an increase in a 
consumptive use above that amount which was previously approved.
    (3) Any project that will involve an increase in a consumptive use 
that existed prior to January 23, 1971, by an average of 20,000 gpd or 
more in any consecutive 30-day period.
    (4) Any project that involves a consumptive use that will adversely 
affect the purposes outlined in Sec.  803.2 of this part.
    (5) Any project involving a consumptive use of an average of 20,000 
gpd or more in any 30-day period, and undergoing a change of ownership.
    (b) Withdrawals. The projects described below shall require an 
application to be submitted in accordance with Sec.  803.12, and shall 
be subject to the standards set forth in Sec.  803.23. Hydroelectric 
projects, except to the extent that such projects involve a withdrawal, 
shall be exempt from the requirements of this section regarding 
withdrawals; provided, however, that nothing in this paragraph shall be 
construed as exempting hydroelectric projects from review and approval 
under any other category of project requiring review and approval as 
set forth in this section, Sec.  803.23, or 18 CFR part 801.
    (1) Except for projects previously approved by the Commission and 
projects existing prior to the dates specified in paragraph (4) below, 
any project withdrawing a consecutive 30-day average of 100,000 gpd or 
more from a groundwater or surface water source, or a combination of 
such sources.
    (2) With respect to projects previously approved by the Commission, 
any project that increases a withdrawal above that amount which was 
previously approved and any project that will add a source or increase 
withdrawals from an existing source which did not require approval 
prior to ------------------------.
    (3) Any project which involves a withdrawal from a groundwater or 
surface water source and which is subject to the requirements of 
paragraph (a) of this section regarding consumptive use.
    (4) With respect to groundwater projects in existence prior to July 
13, 1978, and surface water projects in existence prior to November 11, 
1995, any project that will increase its withdrawal from any source or 
combination of sources, by a consecutive 30-day average of 100,000 gpd 
or more, above that maximum consecutive 30-day amount which the project 
was withdrawing prior to the said applicable date.
    (5) Any project involving a withdrawal of a consecutive 30-day 
average of 100,000 gpd or more, from either groundwater or surface 
water sources, or in combination from both, and undergoing a change of 
ownership.
    (c) Diversions. The projects described below shall require an 
application to be submitted in accordance with Sec.  803.12, and shall 
be subject to the standards set forth in Sec.  803.24. The project 
sponsors of out-of-basin diversions shall also comply with all 
applicable requirements of this part relating to consumptive uses and 
withdrawals. This requirement shall apply to diversions initiated on or 
after January 23, 1971.
    (1) Any project involving the diversion of water into the basin and 
any project involving a diversion of an average of 20,000 gallons of 
water per day or more in any consecutive 30-day period out of the 
basin.
    (2) With respect to diversions previously approved by the 
Commission, any project that will increase a diversion above that 
amount which was previously approved.
    (3) Any project involving the diversion of water into the basin 
that existed prior to January 23, 1971, that will increase the 
diversion by any amount, and any project involving the diversion of 
water out of the basin that will increase the diversion an average of 
20,000 gpd or more in any consecutive 30-day period.
    (4) Any project involving the diversion of water into the basin and 
any project involving a diversion of an average of 20,000 gallons of 
water per day or more in any consecutive 30-day period out of the 
basin, and undergoing a change of ownership.
    (d) Any project on or crossing the boundary between two member 
states.
    (e) Any project in a member state having a significant effect on 
water resources in another member state.
    (f) Any project which has been or is required to be included by the 
Commission in its comprehensive plan, or will have a significant effect 
upon the comprehensive plan.
    (g) Any other project so determined by the commissioners or 
Executive Director pursuant to Sec.  803.5 or 18 CFR part 801. Such 
project sponsors shall be notified in writing by the Executive 
Director.


Sec.  803.5  Projects that may require review and approval.

    (a) The following projects, if not otherwise requiring review and 
approval under Sec.  803.4, may be subject to Commission review and 
approval as determined by the Commission or the Executive Director:
    (1) Projects that may affect interstate water quality.
    (2) Projects within a member state that have the potential to 
affect waters within another member state. This includes, but is not 
limited to, projects which have the potential to alter the physical, 
biological, chemical or hydrological characteristics of water resources 
of interstate streams designated by the Commission under separate 
resolution.
    (3) Projects that may have a significant effect upon the 
comprehensive plan.
    (4) Projects not included in paragraphs (a)(1) through (a)(3) of 
this section, but which could have an adverse, adverse cumulative, or 
interstate effect on the water resources of the basin, provided that 
the project sponsor is notified in writing by the Executive Director.
    (b) Determinations by the Executive Director may be appealed to the 
commissioners by filing an appeal with the Commission within 30 days 
after receipt of notice of such determination as set forth in Sec.  
805.2.


Sec.  803.6  Transferability of Project Approvals.

    (a) Existing Commission approvals of projects undergoing a change 
in ownership as defined in Sec.  803.3 of this part may not be 
transferred to the new project sponsor(s). Such project sponsor(s) 
shall submit an application for approval as required by Sec.  
803.4(a)(5), (b)(5) or (c)(4) of this part, and may

[[Page 38697]]

operate such project under the terms and conditions of the existing 
approval, pending action by the Commission on the application, provided 
such project sponsor satisfies the requirements of Sec.  803.13(b) of 
this part.
    (b) Existing Commission approvals of projects excluded from the 
definition of change of ownership in Sec.  803.3 of this part may be 
transferred to the new project sponsor(s), provided such project 
sponsor(s) notify the Commission in advance of the transfer of such 
project approval, which notice shall be on a form and in a manner 
prescribed by the Commission and under which the project sponsor(s) 
certify their or its intention to comply with all terms and conditions 
of the transferred approval and assume all other associated 
obligations.


Sec.  803.7  Concurrent project review by member jurisdictions.

    (a) The Commission recognizes that agencies of the member 
jurisdictions will exercise their review authority and evaluate many 
proposed projects in the basin. The Commission will adopt procedures to 
assure compatibility between jurisdictional review and Commission 
review.
    (b) To avoid duplication of work and to cooperate with other 
government agencies, the Commission may develop agreements of 
understanding, in accordance with the procedures outlined in this part, 
with appropriate agencies of the member jurisdictions regarding joint 
review of projects. These agreements may provide for joint efforts by 
staff, delegation of authority by an agency or the Commission, or any 
other matter to support cooperative review activities. Permits issued 
by a member jurisdiction agency shall be considered Commission approved 
if issued pursuant to an agreement of understanding with the Commission 
specifically providing therefor.


Sec.  803.8  Waiver/modification.

    The Commission may, in its discretion, waive or modify any of the 
requirements of this or any other part of its regulations if the 
essential purposes set forth in Sec.  803.2 continue to be served.

Subpart B--Application Procedure


Sec.  803.10  Purpose of this subpart.

    The purpose of this subpart is to set forth procedures governing 
applications required by Sec. Sec.  803.4, 803.5, and 18 CFR part 801.


Sec.  803.11  Preliminary consultations.

    (a) Any project sponsor of a project that is or may be subject to 
the Commission's jurisdiction is encouraged, prior to making 
application for Commission review, to request a preliminary 
consultation with the Commission staff for an informal discussion of 
preliminary plans for the proposed project. To facilitate preliminary 
consultations, it is suggested that the project sponsor provide a 
general description of the proposed project, a map showing its location 
and, to the extent available, data concerning dimensions of any 
proposed structures, anticipated water needs, and the environmental 
impacts.
    (b) Preliminary consultation shall be optional for the project 
sponsor (except with respect to aquifer test plans, see Sec.  803.12) 
and shall not relieve the sponsor from complying with the requirements 
of the compact or with this part.


Sec.  803.12  Constant-rate aquifer testing.

    (a) A project sponsor submitting an application pursuant to Sec.  
803.13 seeking approval to withdraw or increase a withdrawal of 
groundwater shall perform a constant-rate aquifer test prior to 
submission of such application.
    (b) The project sponsor shall prepare a constant-rate aquifer test 
plan for prior review and approval by Commission staff before testing 
is undertaken.
    (c) Unless otherwise specified, approval of a test plan is valid 
for two years from the date of approval.
    (d) Approval of a test plan shall not be construed to limit the 
authority of the Commission to require additional testing or monitoring 
at any time (both before an approval and after).


Sec.  803.13  Submission of application.

    (a) Project sponsors of projects subject to the review and approval 
of the Commission under Sec.  803.4 shall, prior to the time the 
project is undertaken, submit an application to the Commission.
    (b) Project sponsors submitting an application for approval due to 
a change in ownership of a project as required by Sec.  803.4(a)(5), 
(b)(5) or (c)(4) of this part shall be permitted to continue operation 
of the project under an existing Commission approval pending action on 
the application by the Commission, provided that:
    (1) On or before the date of transfer under which a change of 
ownership occurs, such project sponsor(s) certify an intention to 
comply with the terms and conditions of the existing Commission 
approval and assume all associated obligations, including the 
requirements of the Commission and the compact, which certification 
shall be on a form and in a manner prescribed by the Commission; and
    (2) The application(s) required for approval are submitted to the 
Commission within ninety (90) days of the date of the transfer.
    (c) To be deemed administratively complete, the application must 
include all information required and the applicable fee.


Sec.  803.14  Contents of application.

    (a) Applications shall include, but not be limited to, the 
following information and, where applicable, shall be submitted on 
forms and in the manner prescribed by the Commission.
    (1) Identification of project sponsor including any and all 
proprietors, corporate officers or partners, the mailing address of the 
same, and the name of the individual authorized to act for the sponsor.
    (2) Description of project and site in terms of:
    (i) Project location.
    (ii) Project purpose.
    (iii) Proposed quantity of water to be withdrawn.
    (iv) Proposed quantity of water to be consumed, if applicable.
    (v) Constant-rate aquifer tests. The project sponsor shall provide 
the results of a constant-rate aquifer test with any application which 
includes a request for a groundwater withdrawal. The project sponsor 
shall obtain Commission approval of the test procedures prior to 
initiation of the constant-rate aquifer test.
    (vi) Water use and availability.
    (vii) All water sources and the date of initiation of each source.
    (viii) Supporting studies, reports, and other information upon 
which assumptions and assertions have been based.
    (ix) Plans for avoiding or mitigating for consumptive use.
    (x) Copies of any correspondence with member jurisdiction agencies.
    (3) Anticipated impact of the proposed project on:
    (i) Surface water characteristics (quality, quantity, flow regimen, 
other hydrologic characteristics).
    (ii) Threatened or endangered species and their habitats.
    (iii) Existing water withdrawals.
    (4) Project estimated completion date and estimated construction 
schedule.
    (b) The Commission may also require the project sponsor to submit 
the following information related to the project, in addition to the 
information required in paragraph (a) of this section, as deemed 
necessary.
    (1) Description of project and site in terms of:

[[Page 38698]]

    (i) Engineering feasibility.
    (ii) Ability of project sponsor to fund the project or action.
    (iii) Identification and description of reasonable alternatives, 
the extent of their economic and technical investigation, and an 
assessment of their potential environmental impact. In the case of a 
proposed diversion, the project sponsor should include information that 
may be required by Sec.  803.25 or any policy of the Commission 
relating to diversions.
    (iv) Compatibility of proposed project with existing and 
anticipated uses.
    (v) Anticipated impact of the proposed project on:
    (A) Flood damage potential considering the location of the project 
with respect to the flood plain and flood hazard zones.
    (B) Recreation potential.
    (C) Fish and wildlife (habitat quality, kind and number of 
species).
    (D) Natural environment uses (scenic vistas, natural and manmade 
travel corridors, wild and wilderness areas, wild, scenic and 
recreation rivers).
    (E) Site development considerations (geology, topography, soil 
characteristics, adjoining and nearby land uses, adequacy of site 
facilities).
    (F) Historical, cultural and archaeological impacts.
    (2) Governmental considerations:
    (i) Need for governmental services or finances.
    (ii) Commitment of government to provide services or finances.
    (iii) Status of application with other governmental regulatory 
bodies.
    (3) Any other information deemed necessary by the Commission.
    (c) A report about the project prepared for any other purpose, or 
an application for approval prepared for submission to a member 
jurisdiction, may be accepted by the Commission provided the said 
report or application addresses all necessary items on the Commission's 
form or listed in this section, as appropriate.


Sec.  803.15  Notice of application.

    (a) The project sponsor shall, no later than 10 days after 
submission of an application to the Commission, notify each 
municipality in which the project is located, the county planning 
agency of each county in which the project is located, and each 
contiguous property owner that an application has been submitted to the 
Commission. The project sponsor shall also publish at least once in a 
newspaper of general circulation serving the area in which the project 
is located, a notice of the submission of the application no later than 
10 days after the date of submission. All notices required under this 
section shall contain a sufficient description of the project, its 
purpose, requested water withdrawal and consumptive use amounts, 
location and address, electronic mail address, and phone number of the 
Commission.
    (b) The project sponsor shall provide the Commission with a copy of 
the United States Postal Service return receipt for the municipal 
notification under (a) and a proof of publication for the newspaper 
notice required under (a). The project sponsor shall also provide 
certification on a form provided by the Commission that it has made 
such other notifications as required under paragraph (a) of this 
section, including a list of contiguous property owners notified under 
paragraph (a). Until these items are provided to the Commission, 
processing of the application will not proceed.


Sec.  803.16  Completeness of application.

    (a) The Commission's staff shall review the application, and if 
necessary, request the project sponsor to provide any additional 
information that is deemed pertinent for proper evaluation of the 
project.
    (b) An application deemed incomplete in accordance with Sec.  
803.13(b) will be returned to the project sponsor, who shall have 30 
days to cure the administrative deficiencies. An application deemed 
technically deficient may be returned to the project sponsor, who shall 
have a period of time prescribed by Commission staff to cure the 
technical deficiencies. Failure to cure either administrative or 
technical deficiencies within the prescribed time may result in 
termination of the application process and forfeiture of any fees 
submitted.
    (c) The project sponsor has a duty to provide information 
reasonably necessary for the Commission's review of the application. If 
the project sponsor fails to respond to the Commission's request for 
additional information, the Commission may terminate the application 
process, close the file and so notify the project sponsor. The project 
sponsor may reapply without prejudice by submitting a new application 
and fee.

Subpart C--Standards for Review and Approval


Sec.  803.20  Purpose of this subpart.

    The purpose of this subpart is to set forth general standards that 
shall be used by the Commission to evaluate all projects subject to 
review and approval by the Commission pursuant to Sec. Sec.  803.4 and 
803.5, and to establish special standards applicable to certain water 
withdrawals, consumptive uses and diversions. This subpart shall not be 
construed to limit the Commission's authority and scope of review. 
These standards are authorized under Sections 3.4(2), 3.4(8), 3.4(9), 
and 3.10 of the compact and are based upon, but not limited to, the 
goals, objectives, guidelines and criteria of the comprehensive plan.


Sec.  803.21  General standards.

    (a) A project shall not be detrimental to the proper conservation, 
development, management, or control of the water resources of the 
basin.
    (b) The Commission may modify and approve as modified, or may 
disapprove, a project if it determines that the project is not in the 
best interest of the conservation, development, management, or control 
of the basin's water resources, or is in conflict with the 
comprehensive plan.
    (c) Disapprovals--other governmental jurisdictions.
    (1) The Commission may suspend the review of any application under 
this part if the project is subject to the lawful jurisdiction of any 
member jurisdiction or any political subdivision thereof, and such 
member jurisdiction or political subdivision has disapproved or denied 
the project. Where such disapproval or denial is reversed on appeal, 
the appeal is final, and the project sponsor provides the Commission 
with a certified copy of the decision, the Commission shall resume its 
review of the application. Where, however, an application has been 
suspended hereunder for a period greater than three years, the 
Commission may terminate its review. Thereupon, the Commission shall 
notify the project sponsor of such termination and that the application 
fee paid by the project sponsor is forfeited. The project sponsor may 
reactivate the terminated docket by reapplying to the Commission, 
providing evidence of its receipt of all necessary governmental 
approvals and, at the discretion of the Commission, submitting new or 
updated information.
    (2) The Commission may modify, suspend or revoke a previously 
granted approval if the project sponsor fails to obtain or maintain the 
approval of a member jurisdiction or political subdivision thereof 
having lawful jurisdiction over the project.


Sec.  803.22  Standards for consumptive uses of water.

    (a) The project sponsors of all consumptive water uses subject to 
review and approval under Sec.  803.4 of this part shall comply with 
this section.

[[Page 38699]]

    (b) Mitigation. All project sponsors whose consumptive use of water 
is subject to review and approval under Sec.  803.4 of this part shall 
mitigate such consumptive use. Except to the extent that the project 
involves the diversion of the waters out of the basin, public water 
supplies shall be exempt from the requirements of this section 
regarding consumptive use; provided, however, that nothing in this 
section shall be construed to exempt individual consumptive users 
connected to any such public water supply from the requirements of this 
section. Mitigation may be provided by one, or a combination of the 
following:
    (1) During low flow periods as may be designated by the Commission 
for consumptive use mitigation.
    (i) Reduce withdrawal from the approved source(s), in an amount 
equal to or greater than the project's total consumptive use, and 
withdraw water from alternative surface water storage or aquifers or 
other underground storage chambers or facilities approved by the 
Commission, from which water can be withdrawn for a period of 90 days 
without impact to surface water flows.
    (ii) Release water for flow augmentation, in an amount equal to the 
project's total consumptive use, from surface water storage or 
aquifers, or other underground storage chambers or facilities approved 
by the Commission, from which water can be withdrawn for a period of 90 
days without impact to surface water flows.
    (iii) Discontinue the project's consumptive use, except that 
reduction of project sponsor's consumptive use to less than 20,000 gpd 
during periods of low flow shall not constitute discontinuance.
    (2) Use, as a source of consumptive use water, surface storage that 
is subject to maintenance of a conservation release acceptable to the 
Commission. In any case of failure to provide the specified 
conservation release, such project shall provide mitigation in 
accordance with paragraph (3), below for the calendar year in which 
such failure occurs, and the Commission will reevaluate the continued 
acceptability of the conservation release.
    (3) Provide monetary payment to the Commission, for annual 
consumptive use, in an amount and manner prescribed by the Commission.
    (4) Provide documentation to the Commission demonstrating that all 
requirements enumerated in the approval are satisfied within 90 days 
from the date of Commission action, unless specified otherwise. These 
items may include, but are not limited to:
    (i) Installation of water conservation release structures.
    (ii) Evaluation of water loss due to system leakage.
    (iii) Installation of measuring devices.
    (iv) Operational plans and/or designs.
    (5) Implement other alternatives approved by the Commission.
    (c) Determination of manner of mitigation. The Commission will, in 
its sole discretion, determine the acceptable manner of mitigation to 
be provided by project sponsors whose consumptive use of water is 
subject to review and approval. Such a determination will be made after 
considering the project's location, source characteristics, anticipated 
amount of consumptive use, proposed method of mitigation and their 
effects on the purposes set forth in Sec.  803.2 of this part, and any 
other pertinent factors. The Commission may modify, as appropriate, the 
manner of mitigation, including the magnitude and timing of any 
mitigating releases, required in a project approval.
    (d) Quality of water released for mitigation. The physical, 
chemical and biological quality of water released for mitigation shall 
at all times meet the quality required for the purposes listed in Sec.  
803.2, as applicable.
    (e) Approval by rule for consumptive uses.
    (1) Any project whose sole source of water for consumptive use is a 
public water supply withdrawal, may be approved under this paragraph 
(e) in accordance with the following, unless the Commission determines 
that the project cannot be adequately regulated under this approval by 
rule:
    (i) Notification of Intent: No fewer than 90 days prior to 
construction or implementation of a project or increase above a 
previously approved quantity of consumptive use, the project sponsor 
shall:
    (A) Submit a Notice of Intent (NOI) on forms prescribed by the 
Commission, and the applicable application fee, along with any required 
attachments.
    (B) Send a copy of the NOI to the appropriate agencies of the 
member state, and to each municipality and county in which the project 
is located.
    (ii) Within 10 days after submittal of an NOI under (i), submit to 
the Commission proof of publication in a newspaper of general 
circulation in the location of the project, a notice of intent to 
operate under this permit by rule, which contains a sufficient 
description of the project, its purposes and its location. This notice 
shall also contain the address, electronic mail address and telephone 
number of the Commission.
    (2) Metering, daily use monitoring and quarterly reporting. The 
project sponsor shall comply with metering, daily use monitoring and 
quarterly reporting as specified in Sec.  803.30.
    (3) Standard conditions. The standard conditions set forth in Sec.  
803.21 above shall apply to projects approved by rule.
    (4) Mitigation. The project sponsor shall comply with mitigation in 
accordance with Sec.  803.22 (b)(2) or (b)(3).
    (5) Compliance with other laws. The project sponsor shall obtain 
all necessary permits or approvals required for the project from other 
federal, state or local government agencies having jurisdiction over 
the project. The Commission reserves the right to modify, suspend or 
revoke any approval under this paragraph (e) if the project sponsor 
fails to obtain or maintain such approvals.
    (6) The Commission will grant or deny approval to operate under 
this approval by rule and will notify the project sponsor of such 
determination, including the quantity of consumptive use approved.
    (7) Approval by rule shall be effective upon written notification 
from the Commission to the project sponsor, shall expire 15 years from 
the date of such notification, shall be deemed to rescind any previous 
consumptive use approvals, and shall be nontransferable.
    (8) The Commission may, on a case-by-case basis, revoke or suspend 
an approval by rule hereunder if it determines that the project sponsor 
is not in compliance with the approval by rule or to avoid adverse 
impacts to the water resources of the basin or otherwise protect public 
health, safety, welfare or water resources.


Sec.  803.23  Standards for water withdrawals.

    (a) The project sponsors of all withdrawals subject to review and 
approval under Sec.  803.4 of this part shall comply with the following 
standards, in addition to those required pursuant to Sec.  803.21.
    (b) Limitations on withdrawals.
    (1) The Commission may limit withdrawals to the amount (quantity 
and rate) of water that is needed to meet the reasonably foreseeable 
needs of the project sponsor.
    (2) The Commission may deny an application, limit or condition an 
approval to ensure that the withdrawal will not cause adverse impacts 
to the water resources of the basin. The Commission may consider, 
without limitation, the following in its consideration of adverse 
impacts: Lowering of groundwater or stream flow levels; rendering 
competing supplies unreliable; affecting other water uses;

[[Page 38700]]

causing water quality degradation that may be injurious to any existing 
or potential water use; affecting fish, wildlife or other living 
resources or their habitat; causing permanent loss of aquifer storage 
capacity; or affecting low flow of perennial or intermittent streams.
    (3) The Commission may impose limitations or conditions to mitigate 
impacts, including without limitation:
    (i) Limit the quantity, timing or rate of withdrawal or level of 
drawdown.
    (ii) Require the project sponsor to provide, at its own expense, an 
alternate water supply or other mitigating measures.
    (iii) Require the project sponsor to implement and properly 
maintain special monitoring measures.
    (iv) Require the project sponsor to implement and properly maintain 
stream flow protection measures.
    (v) Require the project sponsor to develop and implement an 
operations plan acceptable to the Commission.
    (4) The Commission may require the project sponsor to undertake the 
following, to ensure its ability to meet its present or reasonably 
foreseeable water needs from available groundwater or surface water 
without limitation:
    (i) Investigate additional sources or storage options to meet the 
demand of the project.
    (ii) Submit a water resource development plan that shall include, 
without limitation, sufficient data to address any supply deficiencies, 
identify alternative water supply options, and support existing and 
proposed future withdrawals.


Sec.  803.24  Standards for diversions.

    (a) The project sponsors of all diversions subject to review and 
approval under Sec.  803.4 of this part shall comply with the following 
standards.
    (b) For projects involving out-of-basin diversions, the following 
requirements shall apply.
    (1) Project sponsors shall:
    (i) Demonstrate that they have made good faith efforts to develop 
and conserve sources of water within the importing basin, and have 
considered other reasonable alternatives to the diversion.
    (ii) Adhere to all Commission rules, regulations or orders of any 
kind issued under the authority of the compact.
    (iii) Comply with the general standards set forth in Sec. Sec.  
801.3, 803.21, and 803.22, and the applicable requirements of this part 
relating to consumptive uses and withdrawals.
    (2) In deciding whether to approve a proposed diversion out of the 
basin, the Commission shall also consider and the project sponsor shall 
provide information related to the following factors:
    (i) Any adverse effects and cumulative adverse effects the project 
may have on the ability of the Susquehanna River Basin, or any portion 
thereof, to meet its own present and future water needs.
    (ii) The location, amount, timing, purpose and duration of the 
proposed diversion and how the project will individually and 
cumulatively affect the flow of any impacted stream or river, and the 
freshwater inflow of the Chesapeake Bay, including the extent to which 
any diverted water is being returned to the basin or the bay.
    (iii) Whether there is a reasonably foreseeable need for the 
quantity of water requested by the project sponsor and how that need is 
measured against reasonably foreseeable needs in the Susquehanna River 
Basin.
    (iv) The amount and location of water being diverted to the 
Susquehanna River Basin from the importing basin.
    (v) The proximity of the project to the Susquehanna River Basin.
    (vi) The project sponsor's pre-compact member jurisdiction 
approvals to withdraw or divert the waters of the basin.
    (vii) Historic reliance on sources within the Susquehanna River 
Basin.
    (3) In deciding whether to approve a proposed diversion out of the 
basin, the Commission may also consider, but is not limited to, the 
factors set forth in paragraphs (i) through (v) of this paragraph 
(b)(3). The decision whether to consider the factors in this paragraph 
(b) and the amount of information required for such consideration, if 
undertaken, will depend upon the potential for the proposed diversion 
to have an adverse impact on the ability of the Susquehanna River 
Basin, or any portion thereof, to meet its own present and future 
needs.
    (i) The impact of the diversion on economic development within the 
Susquehanna River Basin, the member states or the United States of 
America.
    (ii) The cost and reliability of the diversion versus other 
alternatives, including certain external costs, such as impacts on the 
environment or water resources.
    (iii) Any policy of the member jurisdictions relating to water 
resources, growth and development.
    (iv) How the project will individually and cumulatively affect 
other environmental, social and recreational values.
    (v) Any land use and natural resource planning being carried out in 
the importing basin.
    (c) For projects involving into-basin diversions, the following 
requirements shall apply.
    (1) Project sponsors shall:
    (i) Provide information on the source, amount, and location of the 
waterbody being diverted to the Susquehanna River Basin from the 
importing basin.
    (ii) Provide information on the water quality classification, if 
any, of the Susquehanna River Basin stream to which diverted water is 
being discharged and the discharge location or locations.
    (iii) Demonstrate that they have applied for or received all 
applicable withdrawal or discharge permits or approvals related to the 
diversion, and must demonstrate that the diversion will not result in 
water quality degradation that may be injurious to any existing or 
potential ground or surface water use.


Sec.  803.25  Water conservation standards.

    Any project sponsor whose project is subject to Commission approval 
under this part proposing to withdraw water either directly or 
indirectly (through another user) from ground or surface water sources, 
or both, shall comply with the following requirements:
    (a) Public water supply. As circumstances warrant, a project 
sponsor of a public water supply shall:
    (1) Reduce distribution system losses to a level not exceeding 20 
percent of the gross withdrawal.
    (2) Install meters for all users.
    (3) Establish a program of water conservation that will:
    (i) Require installation of water conservation devices, as 
applicable, by all classes of users.
    (ii) Prepare and distribute literature to customers describing 
available water conservation techniques.
    (iii) Implement a water pricing structure which encourages 
conservation.
    (iv) Encourage water reuse.
    (b) Industrial. Project sponsors who use water for industrial 
purposes shall:
    (1) Designate a company representative to manage plant water use.
    (2) Install meters or other suitable devices or utilize acceptable 
flow measuring methods for accurate determination of water use by 
various parts of the company operation.
    (3) Install flow control devices which match the needs of the 
equipment being used for production.
    (4) Evaluate and utilize applicable recirculation and reuse 
practices.
    (c) Irrigation. Project sponsors who use water for i