Preheat the oven to 350 degrees F (175 degrees C). Coat a 9x13-inch baking dish with cooking spray.

Season pork chops with salt and black pepper. Heat vegetable oil in a large skillet over medium heat. Add chops; brown on both sides, about 5 minutes per side. Set aside.

Combine water, rice, tomato sauce, picante sauce, and taco seasoning in the prepared baking dish. Lay chops in rice mixture; top with bell pepper slices. Cover the dish.

Bake in the preheated oven until chops no longer pink inside and rice tender, about 1 hour. An instant-read thermometer inserted into the thickest part of a chop should read 145 degrees F (63 degrees C). Uncover the dish; sprinkle with Cheddar cheese.

Continue to bake, uncovered, until cheese bubbly and melted, 5 to 10 minutes more.