It’s not just grey water, in fact that is the least of the concerns. The article says “Other changes to the code would require water, sewer and electricity to be installed” so they aren’t talking about town sewers. The off grid residents should be able to workout methods to meet sanitary requirements even if it means composting toilets. Mounds and other systems are workable. A hole in the ground isn’t going to cut it.
People need to elect the right people at every level, the county commissioners’ in San Louis were elected and are listening to other people in the county. Requiring permits to camp on your own land is pretty intrusive though. Everything they want except sewers is discretionary. Get some homesteaders elected to the board of commissioners.
Municipalities have the EPA on their butts to enforce sanitary systems. Every municipality has to have “Integrated Municipal Stormwater and Wastewater Plans” as part of the Clean Water Act