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At this point, don't worry about using bio degradable bags. Just get some big trash bags and fill them up until you have a clean yard. If you have a stream near by, it won't be an issue anymore because it seems you are committed not not letting this happen again. The best protection for any water source is to keep the area surrounding it clean. Once you have it all clean, your animals will have a healthy environment along with your little boy and you.
After reading some of your old posts, I must admit that I am shocked that you even have your dogs after finding out that one of them bit your one year old baby without provocation and the other has a history of doing that sort of thing. At the time you posted it, you seemed pretty committed to getting rid of the dogs for the safety of your baby. It seems there is a lot more going on here than just the feces problem.