(1) The department may delegate to divisions of local government the review of plans and specifications for:

(a) small public water supply systems and small public sewer systems; and

(b) extensions or alterations of existing public water and public sewer systems that involve 50 or fewer connections.

(2) Delegation may occur only if:

(a) a division of local government submits a written application to the department that includes the following:

(i) a statement of intent that affirms the local government's intent to ensure that systems which it reviews comply with the minimum standards established in ARM 17.38.101;

(ii) names and qualifications of those employees who will be providing the review for the local unit of government; and

(iii) a request that the department provide training for public water and sewer system review.

(b) the department finds that the local government's review will protect public health and the quality of state waters.