(1) Subject to the provisions of subsection (2) of this section and ORS § 543A.130 and 543A.140, the Water Resources Department shall approve all applications for reauthorization of a water right for the use of water for hydroelectric purposes made in proper form, unless the proposed reauthorization conflicts with existing rights.

(2) The department shall reject any application for a permit to appropriate water to develop hydroelectric power if the department finds that the proposed project does not comply with the standards set forth in ORS § 543A.025 or rules adopted by the Water Resources Commission under ORS § 543A.025. [1997 c.449 § 24]