It is legal to own a still in New Mexico, and you can legally distill water and manufacture essential oils and other product as long as ethanol is not produced from the manufacturing process. Distilling your own moonshine for consumption or for fuel is illegal.
Apparently it is legal to manufacture your own ethanol fuel in New Mexico as long as you meet federal requirements. You will need to check with your local county to confirm this.
There are several licenses you need to request to legally manufacture spirits. Below are the federal licenses only. Additional state requirements will need to be followed as well.
You must submit a request for a license to manufacture spirits: TTB 5110.41 Basic permit.
This license only allows you to produce spirits. You also need a license for the distilling equipment / distillery: TTB 5100.24 Distilled spirit plant
For manufacturing ethanol fuel you will need to submit a request for a TTB 5110.74 for a federal license.
It is a felony for any person other than a licensed distiller or rectifier to manufacture any spirituous liquors in the state.
Any premises used for the unlawful purpose of sale, manufacture, storage, possession or consumption of alcoholic beverages in violation of the Liquor Control Act [60-3A-1 NMSA 1978] is a public nuisance.
Current federal laws allow citizens the right to own a still and operate it for non-alcohol production.
This means legally you can: