(1) The department will adopt rules, in consultation with the Nutrient Work Group, for: 

(a)  the development of the Adaptive Management Program under which point source dischargers whose discharges include total phosphorus and/or nitrogen may apply for Individual Montana Pollutant Discharge Elimination System Permits (MPDES).

(i)  Applications for MPDES Permits from these point source dischargers must include an Adaptive Management Plan. The Adaptive Management Plan must include a Watershed Monitoring Plan and may include an Implementation Plan.

(ii)  The Watershed Monitoring Plan must:

(A)  quantify nutrient loading from both point and non-point sources within watersheds;

(B)  evaluate impacts of nutrients on beneficial uses of surface water bodies by requiring monitoring of appropriate response variables and any associated impact thresholds; and

(C)  consider impairment status when identifying monitoring objectives.

(iii)  If an Implementation Plan is required, the Implementation Plan:

(A)  must establish a process for identifying nutrient loading reductions and other actions needed to achieve the narrative nutrient standards and protect beneficial uses.  This process will prioritize phosphorus, considering site specific conditions; and

(B)  may include flexibility for point sources to identify a variety of specific actions to reduce nutrient loading within the watershed.  These actions must be based on results from the Watershed Monitoring Plan or department assessments.

(b)  the establishment of a process for incorporating the Watershed Monitoring Plan requirements and any Implementation Plan into MPDES permits;

(c)  the establishment of a process for developing nutrient loading reductions and other actions that can be incorporated into MPDES permits as enforceable conditions; and

(d)  the development of an Incentive Program to incentivize additional nutrient reductions and other actions using methods that improve water quality beyond minimum requirements.