(1) If a local government requests a delegation and the appropriate division of the local government has established satisfactory review programs, the department shall delegate to the division of local government the review of:
(a) small public water and sewer systems; and
(b) extensions or alterations of existing public water and sewer systems.
(2) The department shall adopt rules regarding the delegation of review authority to divisions of local government.
(3) A division of local government conducting a review under this section:
(a) must receive 90% of the review fee, and the department must receive the remaining 10% of the review fee; and
(b) shall complete documents necessary to complete the review and to comply with:
(i) real property takings requirements in accordance with Title 70; and
(ii) determinations of nondegradation and nonsignificance as required in Title 75, chapter 5.