State Municipal Wastewater Grant Program

Affordability

State law gives the DEP flexibility, through the Wastewater Grant Program, to use bond issue funds with other sources of funding to provide affordable financing of municipal and quasi-municipal wastewater facilities. In 1985 the Board of Environmental Protection adopted a policy to use 2% of the Median Household Income (MHI) as a not to exceed goal for a single-family dwelling's annual sewer user charge. The Water Resources Reform and Development Act of 2014 (WRRDA) amended the Federal Water Pollution Control Act to require Clean Water State Revolving Fund (CWSRF) programs to develop affordability criteria that includes income and unemployment data, population trends, and other data determined relevant by the State. In accordance with WRRDA, the Department developed an affordability analysis that considers these three criteria as well as two others, poverty data and the sewer user charge as a percent of the MHI. For consistency between programs, the Department will use the affordability analysis developed under the CWSRF program to determine the financial need of applicant for state grant assistance. In the analysis, the five criteria establish a state average of five points. Each municipality’s affordability points are added up and compared to the State’s. A municipality with points below 5.0, would generally be in better position to afford a project, where as a municipality with points above 5.0 would likely be in more need of financial assistance. In determining the affordability of a project, the Department has established that a municipality’s affordability points must exceed the total of the State average points by 40% to be eligible for additional financial assistance. Therefore, the sum of a municipality’s affordability criteria must be a minimum of 7.0 (140% of 5.0) points to be eligible for possible principal forgiveness under the CWSRF program and/or grants through the Wastewater Grant Program. Whenever possible, the DEP works with local officials to combine grant funds, loan funds, and other sources of funding from U.S.D.A. Rural Development, U.S. Economic Development Administration, and H.U.D. Community Development Block Grants program in an effort to keep user charges below an affordability threshold.

Funding

Under this program, and within the availability of funding, the Commissioner is authorized to grant an amount not to exceed 25% of the costs for preliminary planning of a pollution abatement program and design of a wastewater infrastructure project; and an amount not to exceed 80% of the construction and construction engineering costs for a wastewater infrastructure project, i.e. treatment facilities, sewer systems and effluent outfalls.

How to apply

Wastewater Planning Grant

The Department has allocated $200,000 for Wastewater Planning Grants in state fiscal year 2020. Grants may be awarded in the amount of 15–25% of the eligible costs for preliminary planning of a pollution abatement plan, i.e. facilities plan, preliminary engineering report, etc., up to a maximum of $10,000 per applicant. To be eligible for a planning grant, applicants with a wastewater treatment system must have affordability points of 7.0, or higher. (see State Grant Affordability Calculator) Applicants without an existing wastewater system are exempt from this requirement. There is No Deadline for submission of an application and the Wastewater Planning Grant User Rate Calculator. Applications may be submitted throughout the year and will be processed and awarded to eligible applicants in order of receipt, until allocated funds are expended. Please see the State Wastewater Infrastructure Planning and Construction Grants Available (pdf) announcement for details.

Wastewater Infrastructure Grant

In state fiscal year 2020 the Department allocated the remaining $13,450,000 for Wastewater Infrastructure Grants.  Grants were awarded in the amount of 15-25% of the eligible costs for design and up to 80% of the eligible construction costs (bidding, construction administration and inspection, and construction). Currently the Department has exhausted its allotment for grant funding in this program. When that changes, we will once again solicit projects for grants.