Consolidated Water Facilities Construction Program


The Consolidated Water Facilities Construction Program was established to provide grants and loans for water related projects. The amount of funds available is dependent upon the amount appropriated by the Legislature and the amount of funds previously awarded.


Eligibility Requirements


In order to be eligible for this program, a project must:


     1) Be included on the State Water Facilities Plan prior to the application deadline; and

     2) Be 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.


Application Deadlines


Applications must be postmarked or received on or before the first day of January, April, July, and October.


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Application Forms


Small Water Facilities Funding Application - Total project cost does not exceed $250,000 for drinking water, wastewater and storm water infrastructure, or watershed restoration projects

Drinking Water Facilities Funding Application - Total project cost exceeds $250,000 for drinking water projects

Sanitary/Storm Sewer Facilities Funding Application - Total project cost exceeds $250,000 for wastewater and storm sewer infrastructure projects

Watershed Restoration Project Funding Application - Total project cost exceeds $250,000 for watershed restoration projects


Application Requirements


An applicant must submit an original application to the department. The application will be reviewed by staff for completeness and technical merit. Staff will work with applicants to correct any identified deficiencies.


Only applications meeting the criteria established in Administrative Rules of South Dakota 74:05:07:08.01 will be presented to the board. By rule, the board will consider only those projects that:


     1) Meet the minimum utility rate schedule;

     2) Have an established reserve fund;

     3) Have identified any necessary permits and the current status of the permits;

     4) Have identified any required lands, easements and rights-of-way and the status of obtaining them;

     5) Have identified all proposed sources of financing and the status of obtaining the funds; and

     6) Shows a construction schedule which indicates that the project will proceed in a timely manner.


Minimum Utility Rates


The minimum utility rates are established in Administrative Rules of South Dakota 74:05:07:08.01. Adoption of minimum monthly utility rates provides no guarantee of funding. The minimum monthly utility rates necessary for an application to be presented to the board are:


   1) Municipalities and sanitary districts

      - $25 for 5,000 gallons for water; and

      - $22 for 5,000 gallons for wastewater;

   2) All other applicants

      - $55 for 7,000 gallons for water; and

      - $40 for 7,000 gallons for wastewater.


A waiver from this criteria may be obtained from the department secretary. A waiver will be considered for economic development opportunities, expansion into new areas, regionalization of facilities, or other unique situations that may require consideration.


Application Restrictions


   1) Eligible facilities may apply for funding in each application cycle, but no facility or project may be awarded more than one grant and one loan during the program year;

   2) Facilities may only apply if preliminary design stage has been completed;

   3) A facility at a minimum is required to provide 40 percent local cost share of the project. Matching funds may include public or private direct contributions, loans from private or public sources including state and federal agencies, and federal grants. In-kind contributions may also be considered as matching funds. However, costs associated with preliminary design may not be considered as local cost sharing and may not be included in the calculation of the total project cost; and

   4) If the project is located within the boundaries of a water development district, a copy of the application must be submitted to the district. The district board may review applications and make recommendations to the board regarding funding. Water development district recommendations should address any requests or awards of district funds. The recommendation should provide any local conditions that should be considered in the board’s funding decision.


Award Dates


The department will notify applicants of the date for the board meeting at which applications will be considered by the board.


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Award Criteria


The board may award less than the amount requested in the application. In addition, the board may award a grant, a loan, or a combination of grant and loan. Each application will be rated by the following criteria:


     1) Annual utility operating budgets;

     2) Available local cash and in-kind contributions;

     3) Available program funds;

     4) Compliance with permits and regulations;

     5) Debt service capability;

     6) Economic impact;

     7) Other funding sources;

     8) Readiness to proceed;

     9) Regionalization or consolidation of facilities;

   10) Technical feasibility;

   11) Utility rates; and

   12) Water quality benefits.


Rules and Regulations


Rules and regulations concerning the consolidated program may be found in Administrative Rules of South Dakota 74:05:07. For copies of these rules or the Assurances, Terms, and Conditions for Consolidated awards, you may contact:


Department of Environment and Natural Resources
Division of Financial and Technical Assistance
Joe Foss Building
523 East Capitol Avenue
Pierre, SD 57501


Phone: (605) 773-4216
Fax: (605) 773-4068
Email: Mike Perkovich

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