RURAL SEWER GRANT PROGRAM

Water Protection Program fact sheet
07/2019
Division of Environmental Quality Director: Ed Galbraith
PUB2307

This fact sheet provides information on rural sewer grants. Included are details about the types of available grants, who is eligible to apply for the grants, how to apply for the grants and how awardees are selected.

Rural sewer grants can be used for two types of wastewater construction projects:

Entities eligible to apply for these grants include public sewer districts, public water districts and communities serving a population of less than 10,000 and are not located, in whole or in part, in an area of St. Louis County or City encircled by Interstate Route 270, or in an area of Jackson, Clay or Platte counties encircled by State Routes 150 and 291 and Interstate Routes 29 and 635.

The grants cover up to 50% of the eligible project costs. The balance of the eligible costs and all the ineligible costs must come from another funding source. When applying for this funding, the applicant must indicate the other funding sources. No grant funds can be approved until the applicant furnishes evidence of a commitment from the primary funding sources. No applicant may receive more than one grant for any purpose in any two-year period for a period ending two years after the final grant allocation per RSMo 640.620. If you are not certain about the eligibility of a cost, please contact the department’s Financial Assistance Center at 573-751-1192 for a preliminary determination.

The maximum grant amount is the lesser of 50% of the eligible project cost or $3,000 multiplied by the number of service connections. When the grant is to fund a collection system, the maximum grant is based on the number of new service connections. Grants are capped at $500,000.

Legal Authority
Funding for this program is made available through State Water Pollution Control Bond Funds per Missouri Constitution, Article III, Sections 37(e) and (g). The grants are awarded in accordance with Missouri state regulation 10 CSR 20-4.030.

Application Process
Rural Sewer Grant Applications (MO780-2036) are accepted at any time. Applicants seeking funding from the Missouri Department of Economic Development’s Community Development Block Grant Program or from the U.S. Department of Agriculture’s Rural Development Program should submit their application to the Department of Natural Resources’ Financial Assistance Center at the same time a funding proposal is submitted to the Missouri Water and Wastewater Review Committee.

Selection Process
Applications are prioritized based on the project’s readiness to proceed, operating permit compliance schedule and financial capability. Preference is given to those applicants receiving funding through other funding programs administered by the Department of Natural Resources.

Successful applicants will be notified in writing. To comply with the Internal Revenue System’s requirements on state bonds funding these grants, the successful applicant must proceed with the projects in a timely fashion.