BETHEL — The Bethel Town Board has introduced a proposed law that would impose long-term oversight and financial requirements on privately owned package wastewater treatment plants while reducing the maximum multifamily density allowed in two zoning districts.

The board voted unanimously September 9 to introduce Local Law No. 2 of 2026. A public hearing is scheduled for October 14 at 7:45 p.m. in the Dr. Duggan Community Center.

The proposal follows the town’s adoption of an updated comprehensive plan in August. Supervisor Daniel Sturm said package plants were among the major concerns raised during the planning process.

“I think it’s sorely needed,” Sturm said.

Package plants are privately owned systems that collect and treat wastewater from multiple buildings or users. They can serve developments where individual septic systems are impractical, but failures can leave municipalities facing environmental and financial problems.

Under the proposed law, package plants would require a special-use permit and approval from both the Planning Board and Town Board. Applicants would have to demonstrate that a plant is the most environmentally protective and financially responsible option after considering individual septic systems and connections or extensions to an existing public sewer system.

A plant would not be permitted within the Kauneonga Lake Sewer District or a future extension of the district.

The proposal would also reduce the maximum density for multifamily housing in the C-17B and RD-R zoning districts from four dwelling units per acre to two. Density bonuses associated with package wastewater plants would be prohibited.

Approval of a package plant would not determine whether the underlying development is appropriate, according to the draft. The development’s density would be considered separately based on zoning, water availability, environmental constraints, community character and the site’s carrying capacity.

Each approved plant would be placed within a wastewater management district created to fund town inspections, monitoring, enforcement and emergency response. Unlike a public sewer district, the facility would remain privately owned, and its owner would remain responsible for its operation, maintenance, repairs and regulatory compliance.

Developers would have to provide financial security equal to at least 110 percent of the estimated construction cost, along with a maintenance bond covering at least two years. Before the first certificate of occupancy is issued, the owner would also have to deposit money into a capital repair and emergency reserve account.

The town engineer would inspect a new facility monthly during its first year of operation, quarterly during years two through five and annually thereafter, unless more frequent inspections were considered necessary.

Plant operators would submit annual reports covering treatment performance, permit compliance, maintenance, equipment failures, reserve balances and anticipated capital needs.

If a privately owned plant threatened public health or the environment and its owner failed to act, the town could perform the minimum work necessary to address the emergency. The town could then recover its expenses from the owner, financial security or system users.

The law states that townwide taxpayers would not be required to subsidize a plant’s operation, maintenance, rehabilitation or replacement.

Councilman Adam Gold said the proposal showed the town had begun implementing its comprehensive plan quickly.

“The value of the plan ultimately can be measured by how we implement it and what we do,” Gold said.

Sturm said work is also underway on a conservation subdivision law, another priority identified during the comprehensive-planning process.

The package-plant proposal will be sent to the Bethel Planning Board and Sullivan County Division of Planning and Environmental Management for review. The Town Board must also complete an environmental review before voting on its adoption.