Water & Waste Funding
IN SOUTH DAKOTA

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.

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.

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.

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

Phone: (605) 773-4216
Fax: (605) 773-4068
Email: Tina McFarling