South Dakota's Department of Agriculture and DENR have merged.
You are viewing an archived site, please update bookmarks and visit our new website at
SOUTH DAKOTA Department of
Agriculture & Natural Resources

Protecting South Dakota's Tomorrow...Today!
Joe Foss Building
523 E Capitol Ave
Pierre, SD 57501-3182
Contact Us  Field Offices

Water and Waste Funding

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.


Top of page


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. Projects that are not eligible for a Drinking Water State Revolving Fund or Clean Water State Revolving Fund loan may also apply using this application.

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.

SRF Interim Financing Application - Total project cost exceeds $250,000 for drinking water or 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 applications determined to be complete.


Minimum Utility Rates


The minimum utility rates are established in Administrative Rules of South Dakota 74:05:07:01. 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

      - $30 for 5,000 gallons for water; and

      - $30 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.

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.


Application Restrictions

   1) Eligible facilities may only apply if preliminary design stage has been completed or watershed assessment stage has been completed; and

   2) Costs associated with the watershed assessment stage may not be considered as local cost sharing and may not be included in the calculation of total project costs.


Award Dates

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


Interest Rates and Terms

The board sets interest rates for the program and makes adjustments to the rates on an as-needed basis.  By Administrative Rule, it is required that to amend the interest rates they must be included as part of the posted board meeting agenda.


Top of page


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

Top of page