Sewer Overflow and Stormwater Reuse Municipal Grants

The Sewer Overflow and Stormwater Reuse Municipal Grants program is administered by the New Jersey Department of Environmental Protection and is part of the broader NJ Water Bank financing initiative. The program is supported through federal funding authorized under statutes such as the Clean Water Act, the Bipartisan Infrastructure Law, and recent federal appropriations. The Department of Environmental Protection serves as the primary state agency responsible for environmental regulation and water infrastructure investment in New Jersey, and this program reflects its ongoing efforts to address aging water systems and improve environmental outcomes through targeted municipal funding. The primary purpose of the program is to provide financial assistance for projects that address combined sewer overflows, sanitary sewer overflows, and stormwater management challenges. These issues are significant contributors to water pollution and flooding, particularly in densely populated or historically underserved communities. The program supports a wide range of infrastructure activities, including planning, design, and construction, as well as the purchase of necessary equipment. By focusing on these areas, the program aims to reduce pollutant discharges, improve water quality, and enhance system resilience in the face of climate-related impacts. Funding under this program is structured to support capital improvement projects, with a strong emphasis on infrastructure development. Eligible uses include engineering design, construction activities, and equipment purchases directly related to overflow mitigation or stormwater reuse systems. However, operational and maintenance expenses are explicitly excluded from funding eligibility. The program also imposes a cap on total project costs at two million dollars, requiring applicants with larger projects to secure additional funding through other sources such as the State Revolving Fund. The grant structure is designed to maximize financial support for municipalities while encouraging comprehensive project development. Standard awards cover up to eighty percent of eligible project costs, with the remaining twenty percent potentially financed through a principal forgiveness loan. Financially distressed communities may receive up to one hundred percent grant coverage, eliminating the need for additional financing. This tiered structure reflects a prioritization of equity and ensures that communities with limited financial capacity can still undertake critical infrastructure improvements. Eligibility for the program is limited to municipalities and municipal entities, reflecting its focus on public infrastructure systems. Applicants must complete a multi-step submission process that includes establishing accounts in both the H2LOans system and the System for Managing Grants Electronically. They must submit project documentation through H2LOans and obtain required approvals before completing the grant application in the SAGE portal. This structured process ensures that projects are technically and administratively vetted prior to funding consideration. Applications are accepted on a rolling basis, and funding decisions are made continuously based on project readiness and prioritization criteria. Projects are evaluated based on factors such as financial distress of the community, inclusion in the Clean Water State Revolving Fund Intended Use Plan, environmental justice considerations, and the use of green infrastructure practices. Additional points may be awarded for addressing localized flooding and incorporating local hiring requirements. Applications are reviewed on a first come, first served basis, with awards granted to those that meet eligibility and ranking criteria. The program does not specify a fixed award notification timeline or performance period, but awards are issued as applications are approved. Applicants are encouraged to prepare complete and well-documented submissions to improve their ranking and likelihood of funding. For additional information or assistance, applicants may contact the program via the provided email address. Overall, the program represents a significant opportunity for municipalities to secure funding for critical water infrastructure improvements while advancing environmental and community resilience goals.

Ensure project aligns with environmental justice priorities, demonstrates readiness to proceed, includes green infrastructure elements, and documents flooding impacts for higher ranking