Finds that nitrogen is an important factor in creating low-dissolved oxygen in Hood Canal. The legislature further finds that inputs of nitrogen to Hood Canal from on-site sewage systems are uncertain due to insufficient data and studies. Therefore, the legislature finds that improved data on the contribution of nitrogen from on-site sewage systems to Hood Canal would allow stakeholders to focus and prioritize resources.

Directs the Puget Sound action team and the Hood Canal coordinating council to contract for a study in the Hood Canal to: (1) Improve data and knowledge of the loading of nitrogen from on-site sewage systems to ground water;

(2) Determine the local scale efficiency of nitrogen removal from on-site sewage systems; and

(3) Improve data and knowledge of the loading of nitrogen from all ground water sources to Hood Canal.

Requires the Puget Sound action team and the Hood Canal coordinating council to report their findings and recommendations to the appropriate committees of the legislature by December 1, 2007.