Sec. 50.5. "Degradation", for purposes of IC 13-18-3, means, with respect to a National Pollutant Discharge Elimination System permit, the following:
(1) With respect to an outstanding national resource water, any new or increased discharge of a pollutant or a pollutant parameter, except for a short term, temporary increase.
(2) With respect to an outstanding state resource water, any new or increased discharge of a pollutant or pollutant parameter that results in a significant lowering of water quality for that pollutant or pollutant parameter, unless:
(A) the activity causing the increased discharge:
(i) results in an overall improvement in water quality in the outstanding state resource water; and
(ii) meets the applicable requirements of rules adopted by the board under IC 13-18-3-2; or
(B) the person proposing the increased discharge undertakes or funds a water quality improvement project in accordance with IC 13-18-3-2(k) in the watershed of the outstanding state resource water that:
(i) results in an overall improvement in water quality in the outstanding state resource water; and
(ii) meets the applicable requirements of rules adopted by the board under IC 13-18-3-2.