Septic Renovation Water Quality Initiative Program

The Septic Renovation Water Quality Initiative is a targeted implementation component of the North Dakota Nonpoint Source Pollution Management Program administered by the North Dakota Department of Environmental Quality. The initiative addresses failing or inadequate onsite sewage treatment systems, commonly called septic systems, as a source of nonpoint source pollution. Malfunctioning systems can release untreated or partially treated wastewater containing nutrients such as nitrogen and phosphorus and pathogens such as E. coli into surface water and groundwater. The initiative is intended to reduce pollutant loading, support restoration of impaired waters, protect high-quality waters, and address water quality concerns including harmful algal blooms and bacterial contamination. Financial assistance is supported by federal funding through the Sewer Overflow and Stormwater Reuse Municipal Grants Program, while technical assistance is provided through the Clean Water Act Section 319 Nonpoint Source program. Federal funding in North Dakota is administered by the North Dakota Department of Environmental Quality. Eligible local project sponsors are non-federal entities such as local governments, joint powers boards, and nonprofit organizations. Sponsors must have a Unique Entity Identifier issued through SAM.gov, must not be suspended or debarred from participation in federal programs, and must be capable of complying with federal grant requirements. A local project sponsor serves as the subrecipient and manages implementation within its approved project area, including outreach, property owner application and eligibility verification, coordination with licensed septic installers and permitting authorities, rebate payments, documentation, and reporting. Project areas may include lands under the jurisdiction of federally recognized tribal nations in North Dakota, but funded septic renovations must comply with applicable state, local, and Tribal permitting requirements. Financial assistance may be used to renovate an eligible septic system when the system is more than ten years old, its failure is not attributable to mismanagement, neglect, or accidental damage by the current property owner, it is within an approved local project boundary and meets the program focus-area criteria, and it serves an occupied private residence. Existing functional septic systems are not eligible. Participation is not means tested. Within an approved project boundary, an eligible system generally must be adjacent to or within one mile of a North Dakota named and classified waterbody or located above a designated sensitive aquifer. NDDEQ may approve limited exceptions when documentation demonstrates a direct or clear potential impact to a nearby water resource. Renovations must comply with the North Dakota Administrative Code, applicable Local Public Health Unit requirements, and program and federal procurement requirements. Permitting, design approval, and required final inspections must be completed before reimbursement. Local project sponsors enter into written Rebate Contracts with participating property owners before any portion of a renovation is undertaken. Costs incurred before the contract has been fully executed are not eligible. Sponsors assist property owners with procurement and selection of licensed septic installers. Rebate payments are made only after completion of the renovation, satisfaction of program requirements, and submission of a request for rebate payment. Documentation must include, at minimum, a completed septic permit signed by all required parties, invoices showing the total renovation cost, photographs of the completed system after backfill, proof that the rebate payment was made, and match documentation when applicable. Reimbursement requests are submitted through the NPS Database System and reviewed by NDDEQ. Incomplete or insufficient documentation can delay or prevent payment. Sponsors must maintain supporting records and make them available to NDDEQ for audit or program review. The program does not establish a statewide maximum rebate amount in the provided guidelines. Local project sponsors are encouraged to establish a maximum rebate per renovated system and must apply an established cap consistently unless a documented and defensible prioritization or funding scheme supports different levels. A rebate may never exceed total eligible project costs, and the property owner is responsible for costs beyond the applicable rebate. The federal program waives local match statewide except for projects in Dunn, McLean, Mercer, Renville, Sargent, and Traill counties, where a 20 percent non-federal match is required. Sponsors operating in those counties must coordinate with NDDEQ before project initiation to establish eligible match sources and documentation. Eligible match may include cash or other allowable non-federal resources that are reasonable and necessary to the project. SRWQI federal funds may not be used to satisfy the match requirement of another federally funded program. Project proposals must identify and document a geographic project boundary based on logical planning units such as watersheds, hydrologic features, community service areas, or other defined geographic areas. Projects should focus on water quality restoration or protection outcomes. Prioritization should consider evidence of septic-system failure or pollutant-transport conditions, density or clustering of septic systems, harmful algal blooms or other nutrient-enrichment indicators, local capacity, landowner participation, and readiness to implement. Because federal funds are involved, projects are also subject to Section 106 of the National Historic Preservation Act. NDDEQ assists sponsors with necessary State Historic Preservation Office coordination. The initiative uses a programmatic approach to environmental review under the National Environmental Policy Act because individual renovations are small and localized and are expected to provide an overall environmental benefit. For the 2026 cycle, local project sponsor applications opened August 10, 2026. Applicants may optionally submit a draft application to DEQ for review and comment by September 4, 2026; this is not stated as a mandatory pre-application requirement. Final applications are due September 30, 2026. Local projects are scheduled for selection in October 2026 and funds are scheduled to be awarded in November 2026. No recurring annual or other future-cycle schedule is stated in the supplied material. For additional information, applicants may contact Liz Smith at 701-328-7371 or ecsmith@nd.gov.

Define project boundaries around focused water quality restoration or protection outcomes. Prioritize projects using evidence of system failure or pollutant-transport risk, septic-system density or clustering, harmful algal blooms or nutrient-enrichment indicators, local capacity, landowner participation, and readiness to implement. Ensure applicable permitting, procurement, inspection, documentation, and federal requirements can be satisfied.