OK HB1328

Creates the Oklahoma Water Basin Protection Act to establish a severance fee on stream water transfers by municipalities with populations exceeding 200,000 that move water more than 20 miles outside the originating water drainage basin.

Defines 19 water drainage basins in Oklahoma and requires the Oklahoma Water Resources Board to set severance fees using a least-cost alternative formula, with annual metering and reporting requirements.

Deposits all severance fee revenues into a new Oklahoma Water Basin Revolving Fund to distribute to political agencies within the source water basin demonstrating need for water infrastructure development.

Allows severance fee funds to be used for water and sewage facilities, economic development incentives, tourism and recreation projects, and public assistance projects within the water basin.

Becomes effective July 1, 2011, with emergency clause for immediate implementation.