rural water sustainability fund; appropriation

HB 2550 establishes a $500,000 Rural Watershed Sustainability Initiative Fund in Arizona, funded by a state appropriation for fiscal year 2026-2027. The fund provides grants to eligible rural watershed groups to cover operational costs like staff training, technology, salaries, and grant-writing fees, with priority given to groups in high-risk groundwater areas with clear water conservation goals. The Department of Water Resources administers the fund, can use up to 15% of funds for administration, and must submit annual reports starting December 1, 2027. The bill directly affects local rural watershed groups by addressing their funding barriers for water conservation and drought resiliency work.