The Tisbury board of health has formally dropped plans for a nitrogen tax on new development in the Lake Tashmoo and Lagoon Pond watersheds, and plans to bring a new proposal to a public hearing in September.

In the latest draft proposal, denitrifying septic systems would be required for all new construction in the watersheds, including in the case of some property transfers and to replace systems that have failed.

At a meeting last week, the three-member board of health, along with health agent Maura Valley and Chilmark attorney Joan Malkin discussed the recent changes and touched on some of the issues likely to come up at the hearing, scheduled for Sept. 13.

The board of health has been working for months on a new bylaw to protect the ponds from excess nitrogen coming from private septic systems. The initial idea of levying fees on new development was dropped following a series of public hearings early this summer. Last week board member Michael Loberg, who has led the effort, expressed a desire to move on.

The new draft rules include a list of 18 state-approved denitrifying systems, including those approved only for provisional or pilot use. The list would likely grow as new technologies become available. The draft presented on Wednesday brought back one element of the earlier proposal by adding denitrifying toilets to the list.

Anna Edey, a Vineyard Haven resident and longtime advocate for sustainable living practices, suggested that the board also allow systems not recognized by the DEP. But Ms. Valley, the health agent, said the board is limited under state law to allow only DEP-approved systems. She said developers would have the option to apply for a piloting license and work with the board of health to test the system.

The board also spoke with civil engineer Kent Healy about ways to gather more data related to the sources of nitrogen, an issue that had come up at the hearings in June. Mr. Healy disagrees with the proposed regulations, and has questioned data from the Massachusetts Estuaries Project. He advocates for a reduction in fossil fuel use and greater reliance on constructed wetlands and other forms of natural denitrification, along with the increased flushing of the estuaries.

“I think it’s very important that you know where the nitrogen is coming from,” said Mr. Healy, who has pressed for more extensive sampling of groundwater in the watersheds. “The idea that we put nitrogen from our septic systems . . . into Lake Tashmoo or the Lagoon – that’s good, but I think it’s important that you measure it.”

Board members shared a desire for more data related to groundwater and looked forward to working with Mr. Healy in the future. “We could make a serious partner,” Mr. Loberg said.