1. (a) Except as provided in subsection (b), a notable user may not:

   1. (1) transfer water out of a basin; or

   2. (2) supply water to another person that the notable user knows will transfer more than one hundred thousand (100,000) gallons of water per day out of a basin;

      without a transfer permit from the department.

2. (b) A transfer permit is not required for:

   1. (1) the transfer of ground water, unless the transfer is determined by the department to result in perennial stream flow depletion;
   2. (2) subject to subsection (c), an existing or ongoing interbasin transfer as of July 1, 2025;
   3. (3) an interbasin transfer to an area of need during a temporary water emergency as described in section 11 of this chapter; or
   4. (4) an interbasin transfer if the destination of the transfer is situated upstream or downstream of the withdrawal point such that the natural flow of water is not disturbed.
3. (c) A notable user must receive a transfer permit if an existing or ongoing interbasin transfer described in subsection (b)(2) exceeds the capacity of any system engaged in the interbasin transfer in any ninety
4. (90) day period. For purposes of this subsection, the capacity of an existing system refers to:
5. (1) withdrawal capacity;
6. (2) treatment capacity;
7. (3) distribution capacity; or

8. (4) any other capacity limiting factor;

   as appropriate in the circumstances.

As added by P.L.99-2025, SEC.4.