Senate Bill No. 265 establishes the Oklahoma Water Infrastructure Loan Program, which is designed to finance the development of water infrastructure improvements through low-interest loans and grants to municipalities, rural water districts, and other eligible entities. The program will support various approved projects, including the construction and rehabilitation of water treatment plants, pipelines, and storage facilities, as well as initiatives aimed at ensuring water quality and conservation. The Oklahoma Water Resources Board is tasked with promulgating rules for project eligibility, application procedures, and fund disbursement, and will also be required to submit an annual report detailing fund revenues, expenditures, and project statuses.

Additionally, the bill creates the Oklahoma Water Infrastructure Revolving Fund within the State Treasury, which will be a continuous fund not subject to fiscal year limitations. This fund will consist of all monies received by the Board for the purpose of funding water infrastructure projects and will include proceeds from the sale of surplus state-owned water, fees from leasing water rights, and grants from various entities. Notably, the bill mandates that at least ten percent of the fund's annual revenue be allocated to projects in rural or underserved communities. The bill also includes provisions for independent audits of the fund's expenditures and declares an emergency for its immediate implementation upon passage.