Drinking Water Project Funding Grant

The Drinking Water Project Funding, offered by the South Dakota Department of Agriculture & Natural Resources, provides essential financial support for improving drinking water infrastructure. Grants and low-interest loans are available for projects included in the State Water Plan, with applications considered quarterly. This funding ensures compliance with the Safe Drinking Water Act, enabling communities to enhance their water quality and infrastructure, thereby safeguarding public health across South Dakota.

NOTE: Drinking water project applications are considered on a quarterly basis and must be postmarked or received by the department on or before the first day of January, April, July, and October. Drinking Water projects requesting funding must be on the State Water Plan. State Water Plan applications must be postmarked or received at the Department of Environment and Natural Resources on or before the first day of October. Applications for amendment onto the State Water Facilities Plan are considered on a quarterly basis and must be postmarked or received by the department on or before the first day of February, May and August. A preliminary engineering report or facilities plan must accompany the application.
The Department of Environment and Natural Resources is committed to improving and maintaining the drinking water infrastructure throughout the state. Grants and low-interest loans offered through the Board of Water and Natural Resources are available for these purposes.
Funding Sources
Funding for drinking water projects is provided through the Drinking Water State Revolving Fund program and the Consolidated Water Facilities Construction Program. Applicants should expect to receive some portion of funding as a loan from the Drinking Water SRF program. As a result, applicants must satisfy all requirements associated with the Drinking Water SRF program.
Very Small System Compliance Grant
Water systems with 50 or less connections and not-for-profit, non-transient non-community water systems can receive a Very Small System Compliance Grant to assit water systems that are in violation of the Safe Drinking Water Act to achieve compliance. Very Small System Compliance Grant applications can be submitted at any time.

Eligibility

In order to be eligible for drinking water funding, a project must:Be included on the State Water Facilities Plan prior to the application deadline; andBe sponsored by one of the following entities: a special purpose district that has the authority to construct a water resources project; a state agency or general purpose government such as a municipality, county, or township; a federally recognized Indian tribe; or a nonprofit corporation.A capacity review or sanitary survey should be completed by the Drinking Water Program prior to submission of the grant application in order to identify and support the need of the project. Examples of eligible projects may include, but are not limited to:Installation or rehabilitation of a well in order to meet current or future Safe Drinking Water Act requirements, excluding the Total Coliform Rule.Compliance issues that are not solely related to capacity.Systems that have a significant deficiency or existing violations, or non-compliance and deficiency not corrected within said amount of time.Significant deficiency for ancillary equipment.Pilot studies related to equipment and new system installations.Drinking water projects with a total cost of $250,000 or less may apply using the Small Water Facilities Funding application. These applicants are not subject to the Drinking Water SRF program requirements.Drinking water projects that are not eligible for a Drinking Water SRF loan may also apply using the Small Water Facilities Funding application. Common examples of projects not eligible for a Drinking Water SRF loan are new water systems, projects intended primarily for fire protection or future growth, and projects that provide water for industrial applications.