A. In addition to the provisions of the management plan for the third management period prescribed by section 45-566, subsection A, paragraph 2, no later than January 1, 2008, the director shall modify the management plan to replace the non-per capita conservation program for municipal providers in effect on the effective date of this amendment to this section with a non-per capita conservation program that is consistent with the guidelines in this amendment to this section. Except as provided in subsections J, K, L and M of this section, all municipal providers shall comply with the non-per capita conservation program by the date prescribed in subsection I of this section. The non-per capita conservation program shall require a municipal provider regulated under the program to implement water conservation measures in its service area, including all of the following:

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1. A public education program relating to water conservation.

2. A program to meter all service area connections, except connections to fire services, dwelling units in multifamily residential structures, mobile homes in mobile home parks with master meters and construction users.

3. One or more additional conservation measures selected by the provider from the list of conservation measures adopted by the director pursuant to subsection B of this section, subject to approval by the director pursuant to subsection G or H of this section. The program may prescribe the number of additional conservation measures that a provider must implement under this paragraph based on the number of service connections in the provider’s service area.

B. The director shall include in the non-per capita conservation program a list and description of conservation measures that municipal providers regulated under the program must select from to comply with the requirements adopted pursuant to subsection A, paragraph 3 of this section.

C. In addition to the requirements prescribed in subsection A of this section, a municipal provider regulated under the non per-capita conservation program shall:

1. Include in its annual reports filed pursuant to section 45-632 a copy of the provider’s current water rate structure unless no changes have been made to the rate structure since it was last submitted to the director. A municipal provider regulated under the non-per capita conservation program is encouraged to adopt a water rate structure that promotes efficient use of water, subject to approval by the corporation commission if the provider is a public service corporation.

2. For at least five years after a year in which the municipal provider is regulated under the non-per capita conservation program, keep and maintain accurate records verifying that the municipal provider implemented the conservation measures required by the non-per capita conservation program during that year.

D. The director shall design the non-per capita conservation program to achieve water use efficiency in the service areas of municipal providers regulated under the program equivalent to the water use efficiency that was assumed by the director in establishing the municipal provider’s per capita conservation requirements pursuant to section 45-566, subsection A, paragraph 2.

E. Within thirty days after the management plan for the third management period is modified to include the non-per capita conservation program required by this amendment to this section, the director shall give written notice of the program to all municipal providers.

F. Except as provided in subsections J, K, L and M of this section:

1. No later than July 1, 2009, a municipal provider notified of the non-per capita conservation program pursuant to subsection E of this section shall submit to the director, on a form prescribed by the director, a provider profile that contains the following information:

(a) A description of the municipal provider’s existing service area characteristics and water use patterns.

(b) A description of the conservation measures the municipal provider is currently implementing and any additional conservation measures that the provider intends to implement to comply with the non-per capita conservation program.

(c) An explanation of how each conservation measure described in the provider profile is relevant to the municipal provider’s existing service area characteristics or water use patterns.

2. No later than the date specified in the management plan, a municipal provider notified of the non-per capita conservation program pursuant to Section 45-571.01, subsection B shall submit to the director, on a form prescribed by the director, a provider profile that includes the information described in paragraph 1 of this subsection.

G. Within ninety days after receiving a municipal provider’s provider profile under subsection F of this section, the director shall approve or disapprove the provider profile and send written notice of the decision to the municipal provider. The director shall approve the provider profile if the director determines that the profile contains information demonstrating that the municipal provider will implement at least the minimum number of conservation measures required by the non-per capita conservation program and that the conservation measures are reasonably relevant to the municipal provider’s existing service area characteristics or water use patterns. If the director disapproves the provider profile, the director shall include with the written notice of the decision the reasons for the disapproval. A decision of the director disapproving a provider profile is an appealable agency action pursuant to Title 41, Chapter 6, Article 10. If the director fails to send the municipal provider written notice approving or disapproving the municipal provider’s provider profile within ninety days after receiving the provider profile, the provider profile shall be deemed approved.

H. If the director disapproves a municipal provider’s provider profile pursuant to subsection G of this section, within ninety days after the date of the director’s written notice disapproving the provider profile, or within ninety days after the director’s decision is final if the municipal provider files a timely notice of appeal of the decision pursuant to Title 41, Chapter 6, Article 10, the municipal provider shall revise the provider profile to correct the deficiencies identified by the director in the written notice and submit the revised provider profile to the director. Within ninety days after receiving a municipal provider’s revised provider profile pursuant to this subsection, the director shall approve or disapprove the revised provider profile pursuant to subsection G of this section. If the director disapproves the revised provider profile:

1. The decision is an appealable agency action pursuant to Title 41, Chapter 6, Article 10.

2. The municipal provider is in violation of this section beginning on the date the director’s decision is final until the municipal provider submits a provider profile that is approved by the director, except that the provider shall not be in violation before January 1, 2010.

I. Except as provided in subsections J, K, L and M of this section:

1. A municipal provider notified of the non-per capita conservation program pursuant to subsection E of this section shall be regulated under the program beginning on the date the director approves the municipal provider’s provider profile pursuant to subsection G or H of this section, but not earlier than January 1, 2010 unless the municipal provider agrees to be regulated under the program before that date and the director has approved the municipal provider’s provider profile. A municipal provider regulated under the non-per capita conservation program shall comply with the program beginning on the date the provider is first regulated under the program until the compliance date for the applicable conservation requirements established in the management plan for the fourth management period.

2. A municipal provider notified of the non-per capita conservation program pursuant to Section 45-571.01, subsection B shall be regulated under the non-per capita conservation program beginning on the date the director approves the municipal provider’s provider profile pursuant to subsection G or H of this section, or such later date as determined by the director, and shall comply with the program beginning on that date until the compliance date for the applicable conservation requirements established in the management plan for the fourth management period.

J. Except as provided in subsection K of this section, a municipal provider designated as having an assured water supply pursuant to section 45-576 shall not be regulated under the non-per capita conservation program established under this section, but instead shall be regulated under the per capita conservation program established by the director pursuant to section 45-566, subsection A, paragraph 2, unless both of the following apply:

1. The municipal provider notifies the director in writing that it elects to be regulated under the non-per capita conservation program and includes with the notice a provider profile that contains the information prescribed by subsection F, paragraph 1 of this section.

2. The director approves the municipal provider’s provider profile pursuant to subsection G of this section or a revised provider profile pursuant to subsection H of this section. The municipal provider shall be regulated under the non-per capita conservation program beginning on the date the director approves the municipal provider’s provider profile or revised provider profile.

K. If a municipal provider designated as having an assured water supply pursuant to section 45-576 is regulated under a municipal conservation program other than the per capita conservation program established by the director pursuant to section 45-566, subsection A, paragraph 2 on the date the provider receives written notice pursuant to subsection E of this section and the provider is in compliance with that program as of that date:

1. The municipal provider shall continue to comply with the requirements of that program until the compliance date for the applicable conservation requirements established in the management plan for the fourth management period.

2. The provider may elect to be regulated under the per capita conservation program adopted pursuant to section 45-566, subsection A, paragraph 2 by giving written notice of the election to the director. After giving such written notice, the provider shall comply with the per capita conservation requirements prescribed by the director beginning on a date specified by the director.

L. A large untreated water provider shall not be regulated under the non-per capita conservation program with respect to its deliveries of untreated water. A large untreated water provider shall comply with the conservation or rate of use requirements established pursuant to section 45-566, subsection A, paragraph 3 with respect to its deliveries of untreated water.

M. A small municipal provider shall not be regulated under the non-per capita conservation program established under this section, but instead shall comply with the conservation requirements established for small municipal providers pursuant to section 45-566, subsection A, paragraph 4.

N. A municipal provider that is regulated under the non-per capita conservation program established under this section shall comply with any individual user requirements prescribed pursuant to section 45-566, subsection A, paragraph 2, except as provided in Section 45-571.02.

O. A municipal provider regulated under the non-per capita conservation program established under this section is exempt from the per capita conservation requirements prescribed under section 45-566, subsection A, paragraph 2.

P. The director shall prepare a guidance document to assist municipal providers entering into the non-per capita conservation program. The guidance document shall inform municipal providers of the requirements of the program as adopted in the management plan and the manner in which the director will implement the program. The director shall cooperate with municipal providers in developing the guidance document.