The proposed "Reclaimed Water Act" establishes a framework for the creation and operation of reclaimed water authorities in New Mexico. It allows municipalities and counties to request authorization from the Department of Environment to create these authorities, which will promote the use of reclaimed water within their jurisdictions. The act defines key terms such as "reclaimed water," "authority," and "customer," and outlines the powers and duties of the authorities, including the ability to sue, apply for funding, and engage in regional water planning. The authorities will be governed by a board of directors, which will consist of members with relevant experience in water management and environmental protection.

Additionally, the act mandates that reclaimed water authorities identify potential uses and customers for reclaimed water, facilitate communication among stakeholders, and assist in negotiating agreements for reclaimed water supply. It also includes provisions for the regulation of reclaimed water rates by the Public Regulation Commission, ensuring that rates incentivize the use of reclaimed water. The act is set to take effect on July 1, 2025, and aims to enhance water conservation and management in the state.