(1) A person may not construct, install or operate a gray water reuse and disposal system without first obtaining a permit from the Department of Environmental Quality. A gray water reuse and disposal system for which a permit has been issued under this section is exempt from the requirements of ORS § 454.655. The Environmental Quality Commission shall adopt rules for permits issued under this section. In adopting the rules, the commission shall:

(a) Consider the recommendations of an advisory committee appointed by the department pursuant to ORS § 183.333;

(b) Minimize the burden of permit requirements on property owners; and

(c) Prescribe requirements that allow for separate systems for the treatment, disposal or reuse of gray water. These requirements must ensure the protection of:

(A) Public health, safety and welfare;

(B) Public water supplies; and

(C) Waters of the state, as that term is defined in ORS § 468B.005.

(2) Subject to ORS § 454.645, the rules adopted by the commission under this section may not prohibit the discharge of gray water if:

(a) Soil and site conditions for such gray water conform to the rules of the department regarding standard subsurface sewage disposal systems or alternative sewage disposal systems, except that such systems may use two-thirds the normal size surface area for a drainfield and shall be preceded by a treatment facility such as, but not limited to, a septic tank; or

(b) Such gray water is discharged into an existing subsurface sewage disposal system or alternative sewage disposal system that is functioning satisfactorily, or a public sewage system that serves the dwelling from which such gray water is derived. [1977 c.523 § 6; 1999 c.551 § 4; 2001 c.104 § 194; 2009 c.248 § 4]