AZ HB2894

Establishes drought mitigation revolving fund to provide low-cost, long-term loans and grants for water supply development and conservation projects, with a drought mitigation board consisting of regional representatives and state officials to evaluate applications.

Creates Arizona state parks store fund to operate and maintain gift shops, with monies exceeding $1,250,000 annually transferred to the state parks revenue fund.

Authorizes Department of Water Resources to award grants for water forbearance to avoid Colorado River supply reductions, and allows State Land Department to apply for grants for water resource management on state trust lands.

Increases due diligence fund reversion threshold from $500,000 to $5,000,000, and provides funding for fire districts with populations under 5,000 to submit claims for emergency medical services expenses on federal lands.

Terminates drought mitigation board on July 1, 2031, and makes various fiscal adjustments including $336,000 from Arizona water protection fund for Department of Water Resources administrative costs and $6,531,000 from underground storage tank revolving fund for department administration and border sewage remediation.