Bring water to a boil in a medium saucepan over high heat. Stir in rice, turn heat to low, and simmer for 20 minutes.
While the rice is cooking, heat oil in a large sauté pan over medium-high heat. Add frozen bell peppers and corn and sauté until they begin to defrost, about 5 minutes.*
Add diced onion and green chiles. Season with chili powder, garlic powder, onion powder, cayenne pepper, cumin, and salt. Sauté for another 5 minutes or until vegetables are soft.
Turn heat to low. Stir in cooked rice, then add taco sauce and lime juice. Stir well to combine and let sit for about 5 minutes, turning rice over occasionally.
Serve as a side dish or use as a base for a variety of Mexican recipes, like burrito bowls!