198. The establishment and modification of sludge dewatering equipment at a treatment plant are exempted from authorization pursuant to this Subdivision on the following conditions:
(1) the work is carried out within the property line of the place where the treatment plant is situated and is not likely to cause a discharge of wastewater into the environment;
(2) the equipment or modification will not change the treatment capacity of the treatment plant;
(3) only sludge from the treatment plant is treated, and the process water from the sludge dewatering is treated at the treatment plant.