The proposed bill establishes a "Voluntary Water Conservation Program" within Wyoming's portion of the Colorado River basin, aimed at promoting water conservation through voluntary projects. It outlines a detailed application and approval process for individuals holding valid water rights to submit conservation project proposals to the state engineer. The bill mandates that applications must be published online, and adjacent landowners must be notified, allowing for public comments. The state engineer is tasked with reviewing applications, ensuring they do not adversely affect existing water rights or public interests, and may impose conditions on approved projects. The program is set to sunset on July 1, 2032, and includes provisions for appeals regarding application decisions.

Additionally, the bill authorizes the state engineer and the Wyoming water development office to store conserved water in Fontenelle Reservoir and outlines the purposes for which this water can be released. It also provides for the creation of two new full-time positions within the state engineer's office, funded by a $510,000 appropriation from the general fund, to support the implementation of the program. The state engineer is required to report annually on the program's operations and effectiveness until 2031. The bill emphasizes the importance of this program in addressing prolonged drought conditions and supporting Wyoming's compliance with interstate water obligations.