The board shall:
A. adopt rules governing terms and conditions of grants or loans recommended by the board for appropriation by the legislature from the water project fund, giving priority to projects pursuant to Section 1 [ 72-4A-7.1 NMSA 1978] of this 2026 act;
B. authorize qualifying water projects to the authority that are for:
(1) storage, conveyance or delivery of water to end users;
(2) implementation of federal Endangered Species Act of 1973 collaborative programs;
(3) wastewater conveyance and treatment;
(4) restoration and management of watersheds;
(5) flood prevention; or
(6) water conservation or recycling, treatment or reuse of water as provided by law; and
C. evaluate projects, including their environmental impacts, and recommend projects to the interstate stream commission pursuant to the provisions of Section 72-14-45 NMSA 1978.