Sanitary & Storm Sewer Funding Grant

The Sanitary & Storm Sewer Funding program supports projects aimed at improving wastewater treatment and storm water management in South Dakota. Grants and low-interest loans are available, with eligibility contingent on inclusion in the State Water Facilities Plan. Additional subsidies may be granted based on established water rates and economic development needs. Applications are accepted quarterly, and projects must meet specific requirements to qualify for funding.

NOTE: Sanitary and storm sewer 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. Sanitary and storm sewer projects requesting funding must be on the State Water Facilities Plan portion of 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 wastewater treatment and storm water management infrastructure throughout the state. Grants and low-interest loans offered through the Board of Water and Natural Resources are available for these purposes.
Additional Subsidy Grants and Principal Forgiveness
Applicants that meet the minimum established residential water rates may receive a grant or loan principal forgiveness. Adoption of minimum monthly utility rates provides no guarantee of an applicant receiving additional subsidy.
The minimum monthly residential water rates necessary for an applicant to be eligible for additional subsidy are $45 based on 5,000 gallons usage for municipalities and sanitary districts and $70 based on 7,000 gallons usage for all other applicants.
Grant assistance may be awarded to applicants not meeting the minimum established rates for economic development opportunities, expansion into new areas, regionalization or consolidation of facilities, or other unique situations that may require special consideration.
Funding for Sanitary and Storm Sewer Projects of $250,000 or Less
These applicants are not subject to the Drinking Water SRF program requirements.
Funding for Sanitary and Storm Sewer Projects That are Not Eligible for Drinking Water SRF Loan
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.

Eligibility

In order to be eligible for sanitary and storm sewer 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.