(1) A public agency owning or operating a POTW that treats domestic wastewater consisting of water supplied under a water right the public agency owns may use, or contract for the use of, reuse water if:
(a) the water right is administered by the state engineer as a municipal water right;
(b) the reuse is consistent, under Subsection 73-3c-302(5), with the underlying water right; and
(c) the public agency receives approval in accordance with Sections 73-3c-301 and 73-3c-302.
(2) A change application shall be filed in accordance with Section 73-3-3 if the public agency proposes a water reuse that is inconsistent with the underlying water right.