(a) The Nutrient Water Quality Trading Advisory Panel is created, consisting of nine (9) members as follows:

(1) One (1) member appointed by the President Pro Tempore of the Senate;

(2) One (1) member appointed by the Speaker of the House of Representatives;

(3) Seven (7) members appointed by the Governor as follows:

(A) One (1) member to represent agricultural interests;

(B) One (1) member to represent forestry interests;

(C) One (1) member to represent municipal wastewater treatment facility interests;

(D) One (1) member to represent public drinking water supply interests;

(E) One (1) member to represent the interests of industries that hold point source wastewater discharge permits; and

(F) Two (2) members to represent the interests of environmental organizations regarding water quality.

(b)

(1) A member shall serve a term of two (2) years or until a successor is appointed.

(2) A member may serve successive terms without limitation.

(3) If a vacancy occurs, the officer who made the original appointment for that position shall appoint a person who represents the same constituency as the member being replaced.

(c)

(1) A majority of the members shall constitute a quorum for the transaction of business.

(2) Meetings may be conducted with members participating via telephonic or other electronic conferencing methods.

(d)

(1) The advisory panel shall elect a chair and vice chair.

(2) The advisory panel may adopt rules relating to the conduct of its meetings.

(e) Members shall serve without compensation but may be reimbursed for expenses in accordance with § 25-16-902, if funds are available.

(f) The Arkansas Department of Environmental Quality shall provide meeting space and administrative services for the advisory panel.

(g) The advisory panel may:

(1) Advise the department and the Arkansas Natural Resources Commission regarding the desirability, design, and operation of nutrient water quality trading programs; and

(2) Advise the Arkansas Pollution Control and Ecology Commission and the Arkansas Natural Resources Commission regarding the promulgation of regulations involving nutrient water quality trading programs.

(h) The Arkansas Pollution Control and Ecology Commission shall not initiate a rulemaking proceeding to adopt a regulation that authorizes or governs nutrient water quality trading unless:

(1) The proposed regulation has been recommended by the advisory panel; or

(2) A copy of the proposed regulation has been delivered to the advisory panel at least sixty (60) calendar days before the date the request to initiate the rulemaking is filed with the Arkansas Pollution Control and Ecology Commission.

(i) Subsection (h) of this section does not limit the authority of the Arkansas Pollution Control and Ecology Commission to:

(1) Alter a proposed regulation at any time during the rulemaking proceeding; or

(2) Initiate a rulemaking proceeding if:

(A) The members of the advisory panel have not been appointed; or

(B) The advisory panel lacks an actively serving quorum.