(1) No exercise by any state agency or public corporation of this state which has received a copy of a state water resources statement as provided in ORS 536.350, of any power, duty or privilege, including the promulgating or undertaking of any order, rule, regulation, plan, program, policy, project or any other activity, which would in any way conflict with the state water resources policy as set forth in the statement, shall be effective or enforceable until approved by the Water Resources Commission as provided in subsection (2) of this section.
(2) The exercise of any power, duty or privilege referred to in subsection (1) of this section shall be deemed approved by the commission if:
(a) The commission grants its approval as provided in ORS 536.390; or
(b) The commission does not notify the state agency or public corporation within 30 days after the filing of the notification as provided in ORS 536.380 (1) of the intention of the commission to review the proposed exercise of the power, duty or privilege; or
(c) The commission grants its approval as provided in ORS 536.380 (4).