Section 319(h) – NPS Pollution Control Financial Assistance Program (FY 2026)

Section 319(h) – NPS Pollution Control Financial Assistance Program (FY 2026)

The Illinois Environmental Protection Agency (Illinois EPA) is seeking proposals for nonpoint source (NPS) pollution control projects (Projects) to prevent, eliminate, or reduce water quality impairments to Illinois’ surface and groundwater resources. The Illinois EPA receives federal funds from the United States Environmental Protection Agency (U.S. EPA) through Section 319(h) of the Clean Water Act (CWA) (33 U.S.C. § 1329(h)) to help implement the Section 319(h) Nonpoint Source Pollution Control Financial Assistance Program (a.k.a. Section 319(h) Grant Program) (https://epa.illinois.gov/topics/water-quality/watershed-management/nonpoint-sources/grants.html).

NPS pollution is caused by rainfall or snowmelt moving over and through the ground. As the runoff moves, it picks up and carries away natural and human-made pollutants, finally depositing them into lakes, rivers, wetlands and even our underground sources of drinking water. It has been determined that over 60% of the (national) documented water pollution problem can be traced to nonpoint sources.

The Section 319(h) Grant Program prioritizes Projects addressing Illinois waters for which NPS pollution is a significant cause of water quality impairment. Assessment information for Illinois’ waterbodies can be found in the most recent Integrated Water Quality Report and Section 303d List (https://epa.illinois.gov/topics/water-quality/watershed-management/tmdls/303d-list.html).

This NOFO will give higher priority to projects that implement components of an Illinois EPA-approved watershed-based plan (WBP) (https://epa.illinois.gov/topics/water-quality/watershed-management/watershed-based-planning.html) or an Illinois EPA-approved Total Maximum Daily Load (TMDL) Implementation Plan (https://epa.illinois.gov/topics/water-quality/watershed-management/tmdls.html). These Projects can include best management practice (BMP) implementation, environmental monitoring, social indicator monitoring, and outreach efforts. Individual BMPs, treatment systems or outreach efforts not identified in a WBP or TMDL Implementation Plan are eligible for funding but will not be prioritized as highly as those Projects specifically identified in an Illinois EPA-approved WBP or TMDL Implementation Plan.

Examples of project types and BMPs that have been, or could be, funded through the Section 319(h) Grant Program-Watershed-Based Plan Implementation and Other Activities are listed below. The list is not all-inclusive, and inclusion of a Project, activity, or BMP does not equate to an automatic eligibility for funding under the NOFO.

Eligible Section 319(h) Grant Program Project types include:

o Implementation of NPS components of an Illinois EPA-approved watershed-based plan (WBP)
o Implementation of NPS components of an U.S. EPA-approved Total Maximum Daily Load (TMDL) Implementation Plan
o Best Management Practice (BMP) Implementation
o Development of a watershed-based plan
o Update of an existing watershed plan
o NPS Information and/or Outreach Programs
o NPS Technical Assistance (planning and/or implementation)
o Monitoring (environmental, social indicator, or data management) related to a Section 319 prospective project or projects, the project proposed in this application, or a project previously funded by a Section 319 grant.

All monitoring projects must have an Illinois EPA-approved Quality Assurance Project Plan (QAPP) prior to the beginning of the monitoring. Monitoring cannot commence without an Illinois EPA approved QAPP.

Information on types of BMPs can be found on the Section 319 Program website at: https://epa.illinois.gov/topics/water-quality/watershed-management/nonpoint-sources/faqs.html

For additional information on watershed-based planning, please refer to Appendix C of the Nonpoint Source Program and Grants Guidelines for States and Territories (April 12, 2013) (https://www.epa.gov/sites/default/files/2015-09/documents/319-guidelines-fy14.pdf) and the Guidance for Developing Watershed Action Plans in Illinois (Chicago Metropolitan Agency for Planning, 2007) (https://epa.illinois.gov/content/dam/soi/en/web/epa/topics/water-quality/watershed-management/documents/watershed-action-plan-guidance.pdf).

For watershed-based plans, the applicant must describe the expected outcomes of the Project in terms of watershed-based planning NPS pollution control for surface and/or groundwater quality improvement. The long-term outcomes are the important changes that are to be set in motion or supported by the Project. These changes may be environmental or social and may be expected to appear on different time scales. Watershed-based plan areas must be a minimum 5,000 acres to qualify for funding.

Applicants may apply for more than one project.

Partial funding may be offered if sufficient funds are not available to fund an entire application.

Details

• Awarding Agency: Illinois Environmental Protection Agency
• CSFA Number: 532-60-0378
• CSFA Popular Name: Section 319(h) Grant Program
• Funding Opportunity Number: 26-0378-01
• Assistance Listings Number: 66.460
• Announcement Type: Initial Announcement
• Award Type: Competitive
• Funding Sources: Federal Or Federal Pass Through
• Indirect Costs Allowed: Yes

Funding Source Description

This grant award is utilizing federal pass-through funds. The federal pass-through funds are received from U.S. EPA and distributed by Illinois EPA under Section 319(h) of the Clean Water Act. Illinois EPA expects to award a total of $5 million. This includes a total of up to $500,000 for watershed-based planning (with a minimum score of 68), $250,000 for Education and Information projects (with a minimum score of 72), $150,000 for Monitoring projects (with a minimum score of 72), and $3,700,000 for BMP projects (with a minimum score of 67). Illinois EPA has the option to award all $5 million to BMP projects if no Watershed Planning, Education and Information and/or Monitoring projects meet the minimum score. The actual amount depends upon the final U.S. EPA budget approved by Congress and the allocation awarded to Illinois by U.S. EPA.

The Section 319(h) Grant Program is a reimbursement program. The Grantee must perform the work, pay Project costs, and submit an invoice with supporting documentation before Illinois EPA will reimburse the Grantee for any approved eligible costs. Illinois EPA shall only make reimbursements to the Grantee and shall reimburse the Grantee no more frequently than monthly.

The Illinois EPA may elect to partially fund an application by funding discrete portions or phases of the Project scope of work. This could be due to ineligible (e.g., proposed monitoring without a draft QAPP) or low priority components identified in the application or inadequate funds available to complete the entire Project.

The Section 319(h) Grant Program may provide up to 60% of the approved Project costs. The remainder, normally 40% is the responsibility of the Grantee and constitutes the match. The Grantee must document the required match at, or before, the time of invoice for reimbursement. Match may include money spent or in-kind services utilized to complete the approved Project tasks. Match cannot be federal funds or funds used to match another federal program. Match can be provided by the Grantee, sub-contractor, or Project partners (e.g., State programs, private foundations, landowners). A Grantee may match greater than 40%.

If an applicant wants to use a grant from another funding agency as match, the applicant should check with that funding agency issuing the grant to ensure that it may be used as match for the Section 319(h) Grant Program. The following applies when using other grants to match the Section 319(h) Grant Program:

• The matching grant scope of work must directly satisfy a portion of the Section 319(h) Grant Program scope of work
• The date that the Grantee incurs costs for the matching grant must fall within the effective and expiration dates of the Section 319(h) Grant Program grant agreement
• The costs incurred under the matching grant must be eligible according to the Section 319(h) Grant Program criteria

Funding Restrictions

See the Funding Source Description for more information

Indirect Cost Description

In order to charge indirect costs to a grant, the Grantee must have an annually negotiated indirect cost rate agreement (NICRA). There are three types of NICRAs:

1. Federally Negotiated Rate. Organizations that receive direct federal funding may have an indirect cost rate that was negotiated with the Federal Cognizant Agency. The State of Illinois will accept the federally negotiated rate. The applicant must provide a copy of the federally negotiated NICRA.

2. State Negotiated Rate. The applicant must negotiate an indirect cost rate with the State of Illinois if they do not have a Federally Negotiated Rate or elect NOT to use the De Minimis Rate. The indirect cost rate proposal must be submitted to the State of Illinois within 90 days of notification of award.

3. De Minimis Rate. An organization that has never received a Federally Negotiated Rate may elect a de minimis rate of the 15% of modified total direct cost (MTDC). Once established, the de minimis rate may be used indefinitely. The State of Illinois must verify the calculation of the MTDC annually in order to accept the de minimis rate.

An applicant has the discretion not to claim payment for indirect costs or use it as match. Applicants that elect not to claim indirect costs cannot be reimbursed for indirect costs or use it as match.

Restrictions on Indirect Costs

No

State Award Notices

The Illinois EPA shall specify the funding terms and specific conditions resulting from the Fiscal and Administrative Risk Assessments.

Administrative and National Policy Requirements

The terms and conditions of the award shall be specified in the grant agreement.

No Grantee shall receive a grant or any other State or federal assistance that would provide more than 100% of the eligible Project costs.

Each Grantee must agree to comply with all applicable federal and State requirements. This includes Uniform Administrative Requirements, 2 C.F.R. § 200, Executive Order 12372 "Intergovernmental Review of Federal Programs”, and GATA. These can have a significant impact on the costs and complexity of a Project. The Section 319(h) Grant Program Grantees will comply with all State and federal mandates, including but not limited to:

a) The Interagency Wetland Policy Act of 1989; 20 ILCS 830/: In accordance with the Interagency Wetland Policy Act of 1989, a Grantee whose proposed Project site is located on or within 250 feet of a wetland site listed on the National Wetlands Inventory will be required to comply with the requirements of the Act. This includes developing a plan to minimize adverse impacts on wetlands or providing written evidence that the proposed Project will not have an adverse impact on a wetland. Project must also comply with Federal Wetlands Protection regulations at 24 C.F.R. § 58.5(b)(2), which may require preparation of an Eight-Step Wetlands Review.

b) Illinois Endangered Species Protection Act; 520 ILCS 10/ and the Illinois Natural Area Preservation Act; 525 ILCS 30: Compliance requires consultation with the Endangered Species Consultation Program of the Illinois Department of Natural Resources to assure compliance. The consultation process must be implemented to avoid or minimize adverse impacts to State-listed species and their essential habitats that may result from the actions of State and local units of government. Grantees must certify the completion of the consultation process.

c) Illinois Prevailing Wage Act; 820 ILCS 130/: The Illinois Prevailing Wage Act requires the payment of prevailing wages for all construction funded in whole or in part with State funds, including funds passed through to private firms. Grantees shall comply with all requirements of the Prevailing Wage Act, including but not limited to, inserting into all contracts for construction a stipulation to the effect that not less than the prevailing rate of wages as applicable to the Project shall be paid to all laborers, workers, and mechanics performing work under the award and requiring all bonds of contractors to include a provision as will guarantee the faithful performance of such prevailing wage clause as provided by contract. Grantees will be required to report on Prevailing Wage Act compliance. If your Project involves construction and/or equipment installation, go to https://labor.illinois.gov/laws-rules/conmed/prevailing-wage-act.html for more information.

d) Build America, Buy America: The Section 319 program is subject to the provisions of the Build America, Buy America Act (BABA,
Section 70914 of P.L. 117-58), which requires that federally-funded public works infrastructure construction projects give preference to American-made products. This requirement took effect on May
14, 2022 and applies to grant funds awarded for projects subsequent to that date. In Indiana, this will apply to federal fiscal year 2022 grants and forward. Products covered under BABA include iron and steel, manufactured products, and non-ferrous construction materials that are permanently incorporated in a project. BABA implications may be waived if any of the following scenarios apply:
• The federal funding of the assistance agreement for the project is less than $250,000.
• There are no permanently incorporated products covered by BABA involved in the project.
• All the activities of the projects are for agricultural or conservation best management practices

e) Business Enterprise Program for Minorities, Females, and Person with Disabilities Act; 30 ILCS 575/: For grant awards of $250,000 or more, the Grantee will be required to comply with the Business
Enterprise Program for Minorities, Females, and Persons with Disabilities Act, which establishes a goal for contracting with businesses that have been certified as owned and controlled by persons who are minority, female, or who have disabilities. The Grantee must document a plan for compliance prior to the establishment of the grant agreement and ensure compliance through the life of the grant.

f) The National Emission Standards for Hazardous Air Pollutants for Source Categories; 40 C.F.R. § 63: These standards assure that, when existing buildings are demolished and/or renovated, people outside
of those buildings (e.g., passers-by or neighborhood residents) are protected from airborne asbestos. If asbestos materials are involved in the rehabilitation work, the Grantee must contact the Field Operations Section, Bureau of Air of the Illinois EPA to ensure compliance with asbestos NESHAP.

Successful applicants will be required to execute a formal grant agreement and adhere to all requirements of the Section 319(h) Grant Program and other State and federal contractual requirements.

In the grant agreement, the Grantee shall be required to:
• Certify that it does and shall comply with all provisions of the federal Internal Revenue Code (26 USC 1), the Illinois Income Tax Act; 35 ILCS 5/, and all rules promulgated thereunder, including withholding provisions and timely deposits of employee taxes and unemployment insurance taxes.
• Certify that it does and shall comply with the reporting requirements of the Federal Funding Accountability and Transparency Act of 2006; PL 109–282, September 26, 2006, 120 Stat. 1186 with respect to federal Awards greater than or equal to $25,000.
• Certify that it shall adhere to the applicable Uniform Administrative Requirements, Cost Principles, and Audit Requirements, which are published in Title 2, Part 200 of the Code of Federal Regulations, and
are incorporated herein by reference. See 44 Ill. Admin. Code 7000.30(b)(1)(A).
• Certify that it and its sub-grantees shall: (i) be registered with the federal SAM if seeking an Award that is partially or fully paid by federal funds and registered with the State equivalent of SAM; (ii) be in good standing with the Illinois Secretary of State; and (iii) have a valid UEI number. It is Grantee’s responsibility to remain current with these registrations and requirements. If Grantee’s status with regard to any of these requirements change, or the certifications made in and information provided in the Uniform Grant Application changes, Grantee’s must notify the Grantor in accordance with ARTICLE XVIII.
• Submit a “Section 319(h) BMP Documentation Form Part I” with designs, maps, and pollutant load calculations for all BMPs, including BMPs installed with matching funds. The designs must be certified by U.S. Department of Agriculture - Natural Resources Conservation Service (NRCS) staff or a registered or licensed professional engineer of Illinois. The designs must be approved by the Illinois EPA, Bureau of Water, NPS Unit prior to the start of BMP construction or implementation.
• Secure applicable State and federal permits for all BMPs, including BMPs installed with matching funds, prior to the start of their implementation.
• Develop and submit a 10-year Operations and Management Plan for each of the BMPs. This includes BMPs installed with matching funds. Operations and Management Plans must be approved by the Illinois EPA’s NPS Unit before BMP implementation and are for a minimum of ten (10) years starting from the completion date of the BMP.
• Submit a Section 319(h) BMP Documentation Form Part II with cost documentation and pre- and post BMP photos and/or video of the Project site.

Reporting

All Projects require quarterly reporting of progress. Quarterly progress reports shall include a Periodic Financial Report and a Periodic Performance Report.

All Projects require a final project report. The grantee shall submit to the Illinois EPA, by the date specified in the grant agreement, a report explaining the execution of the project and evaluating the Project’s success. The report shall document the Project tasks and summarize the findings, costs, and benefits of the Project.

Additional Information

https://epa.illinois.gov/topics/water-quality/watershed-management/nonpoint-sources.html

Additional information about Section 319(h) can be found on Illinois EPA’s NPS webpage. Check out the Illinois' Nonpoint Source Management Program and the Section 319(h) Biannual Report, which describes the projects that have been funded in the past under the Section 319(h) Grant Program.

Environmental or social indicator monitoring is not required in order to qualify for the Section 319(h) Grant Program.

It may be difficult to complete projects that include BMP design, engineering and permitting, BMP implementation, and monitoring during a single grant period. Applications for renewal or supplementation of existing projects are eligible to compete with applications for new grant awards. Contact the NPS Unit at (217) 782-3362 to discuss application options for long-term projects.

Illinois EPA has the right to use (including, but not limited to, citing, circulating, displaying, and reproducing) all products that result from the Grantee receiving financial assistance under the grant agreement whether the product is developed by the Grantee or a sub-grantee.

Illinois EPA is not obligated to make any grant award as a result of this NOFO.