This bill mandates the Department of Environment to establish rules by December 31, 2026, for the utilization of naturally occurring brackish water in specified water projects. Brackish water is defined as water sourced from an aquifer at a depth of 2,500 feet or more, containing at least 1,000 parts per million of dissolved solids, and not classified as produced water.

Additionally, the bill includes several appropriations from the general fund totaling $70 million for various initiatives related to brackish water. Specifically, $50 million is allocated to the Office of the State Engineer for exploration, treatment, and aquifer characterization projects benefiting regions such as the lower and middle Rio Grande and the Permian basin. Furthermore, $16 million is designated for the New Mexico Institute of Mining and Technology, and $4 million for New Mexico State University, both aimed at developing technology and conducting research related to water projects. Any unspent funds at the end of fiscal year 2030 will revert to the general fund.