AZ HB2644

Amends section 49-1332 to include rainwater harvesting programs (including those under the new section 49-1336) as eligible uses of the water conservation grant fund.

Establishes a rainwater harvesting program administered by the Water Infrastructure Finance Authority to provide grants to eligible entities and nonprofit organizations for installing passive or active rainwater collection systems.

Creates two grant levels: Level 1 grants reimburse up to 50% or $500 maximum for simple passive systems with eligible costs including materials, labor, and permits; Level 2 grants reimburse based on rain tank capacity at $0.25 per gallon (50-799 gallons) or $1 per gallon (800+ gallons), up to $2,000 maximum.

Specifies ineligible costs for reimbursement including conveyance features directing water off-site, old gutter replacement, landscaping materials, unlicensed labor, tools, and used tanks unless approved by the authority.

Appropriates an unspecified amount from the state general fund in fiscal year 2025-2026 to the water conservation grant fund to support the rainwater harvesting program, with the appropriation exempt from lapsing.