(a) 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.

(b) 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.

(c) 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:

(1) Costs and cost-savings associated with implementing examples of specific best management practices;

(2) Water conservation associated with implementing specific best management practices; and

(3) 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.

(d) The Department may adopt regulations to establish the minimum increase in the amount of water to be withdrawn under an expanded water appropriation permit that requires compliance with this subtitle.