Rural water districts are essential for providing safe and reliable drinking water to millions of Americans living in rural areas. However, many rural water systems face challenges such as aging infrastructure, limited funding, environmental regulations, and natural disasters. Fortunately, there are several grant programs available from the U.S. Department of Agriculture (USDA) and the Environmental Protection Agency (EPA) that can help rural water districts maintain, modernize, or build water and wastewater systems. In this blog post, we will discuss some of these grant opportunities and how rural water districts can best use them to improve their services and operations.

USDA Water and Environmental Programs

The USDA offers loans and grants through its Water and Environmental Programs (WEP) to assist rural communities and water districts with water and wastewater projects. The WEP provides funding for projects such as constructing or improving drinking water systems, sanitary sewer systems, solid waste disposal facilities, and stormwater drainage facilities. Additionally, the WEP helps rural water systems with federal and state regulatory compliance. Their technical training and assistance empower rural water operators with tools and skills to protect public and environmental health, to improve management, and to optimize operations.

The WEP has several funding options for rural water districts, depending on their needs and eligibility criteria. Some of the most common funding options are:

‍Water and Waste Disposal Loans and Grants: This program provides low-interest loans and grants to rural communities and water districts with populations of 10,000 or less to develop or improve their water and waste disposal systems. The loans have a maximum term of 40 years and an interest rate that is based on the median household income of the service area. Grants may fund up to 75% of the total project cost. The financial needs of the applicant determine the percentage of funding.‍
Water and Waste Disposal Loan Guarantees: This program provides loan guarantees to private lenders who finance water and waste disposal projects in rural areas. The loan guarantees can cover up to 90% of the loan amount, depending on the risk involved. This gives rural water districts access to private funding sources that may be more flexible and affordable.‍
Water and Waste Disposal Predevelopment Planning Grants: This program provides grants to rural communities and water districts with populations of 10,000 or less to conduct preliminary planning activities for their water and waste disposal projects. The grants can cover up to 75% of the planning cost, up to a maximum of $30,000. Predevelopment tasks may include cost estimates, designs from engineering firms, feasibility studies, assessments of the environment, and other planning activities. ‍
Emergency Community Water Assistance Grants: This program provides grants to rural communities and water districts that have experienced a significant decline in the quality or quantity of their drinking water due to an emergency situation. The emergency situation can be caused by a natural disaster, such as a drought, flood, earthquake, or wildfire, or by a human-caused event, such as a chemical spill, vandalism, or terrorism. The project cost may be covered fully, but the grant limits funding up to $500,000 for repairs and up to$150,000 for temporary fixes.‍
Water & Waste Disposal Technical Assistance & Training Grants: This program provides grants to nonprofit organizations that provide technical assistance and training to rural communities and water districts on various aspects of their water and waste disposal systems. Topics may include compliance, asset management, customer service, financial management, emergency readiness, system operation, system maintenance, and more.

To apply for any of these funding options from the USDA WEP, eligible rural communities and water districts can visit the interactive RD Apply tool, or they can apply through one of USDA Rural Development’s state or field offices.

EPA Drinking Water Grants

The EPA also offers several grant programs to support public water systems with enhancing the quality of drinking water and improving public health. The EPA grants are administered by the Office of Water, which has a variety of funding programs available to public water systems. Some of the most relevant grant programs for rural water districts are:

Drinking Water State Revolving Fund (DWSRF): This program provides low-interest loans and other financial assistance to states and territories to fund drinking water infrastructure projects that protect public health and ensure compliance with federal drinking water standards. The states and territories then use the DWSRF funds to provide loans or grants to eligible public water systems for projects such as installing or upgrading treatment facilities, distribution systems, storage tanks, wells, meters, etc. ‍
Drinking Water System Infrastructure Resilience and Sustainability Program: This program provides grants to small (serving 10,000 or fewer people), underserved (serving populations with median household incomes below 80% of the state or national median), and disadvantaged (serving populations with median household incomes below 60% of the state or national median) public water systems to increase their resilience and sustainability to natural hazards. The grants can be used for projects such as installing backup power sources, enhancing water conservation and efficiency, implementing green infrastructure, improving water quality monitoring, and developing emergency response plans.‍
Reducing Lead in Drinking Water Program: This program provides grants to states and territories to assist public water systems in reducing lead in drinking water in disadvantaged communities. The grants can be used for projects such as replacing lead service lines, installing corrosion control treatment, testing for lead in schools and childcare facilities, and providing public education and outreach.‍
Lead Testing in School and Childcare Program Drinking Water: This program provides grants to states and territories to assist educational agencies in voluntary testing for lead contamination in drinking water at schools and childcare facilities. The grants can be used for activities such as sampling and analysis, remediation, reporting, and public notification.

To apply for any of these funding options from the EPA Office of Water, eligible public water systems can contact their state or tribal drinking water programs, or they can visit the EPA website for more information.

How to Best Use Grant Money for Rural Water Districts

With so many grant opportunities available from the USDA and the EPA, rural water districts may wonder how to best use their grant money to improve their services and operations. Here are some tips and best practices to consider:

‍Assess your needs and priorities: Before applying for any grant program, it is important to assess your current situation and identify your most urgent and important needs and priorities. You can conduct a self-assessment or hire a consultant to help you evaluate your system’s performance, compliance, risks, opportunities, and gaps. You can also solicit feedback from your customers, stakeholders, regulators, and partners to understand their expectations and concerns. Based on your assessment, you can prioritize your goals and objectives, such as improving water quality, increasing system reliability, reducing costs, enhancing customer satisfaction, or addressing environmental issues.‍
Plan your projects and activities: After identifying your needs and priorities, you can plan your projects and activities that will help you achieve them. You can use tools such as asset management plans, capital improvement plans, strategic plans, or business plans to guide your decision-making and resource allocation. You can also consult with experts, such as engineers, contractors, vendors, or technical assistance providers, to help you design and implement your projects and activities. For example, SCADA providers, like eLynx Water Solutions, provide potential customers with project plans and proposals that aid in budgeting plans. You should also consider the feasibility, cost-effectiveness, sustainability, and impact of your projects and activities on your system and your community.‍
Research your funding options: Once you have a clear idea of what you want to do and how much it will cost, you can research your funding options from various sources. You can use online databases, such as the Rural Community Assistance Partnership’s Funding Finder or the EPA’s Funding Sources for Drinking Water Systems, to search for grant programs that match your eligibility criteria and project scope. You can also contact your state or regional USDA or EPA offices to learn more about their funding opportunities and requirements. You should also explore other funding sources, such as loans, bonds, fees, taxes, donations, or partnerships, that can complement or leverage your grant money.‍
Apply for grant money: After finding the most suitable grant programs for your needs and priorities, you can apply for grant money by following the application instructions and procedures of each program. You should prepare a compelling grant proposal that clearly describes your project’s purpose, goals, objectives, activities, budget, timeline, expected outcomes, and impacts. You should also demonstrate how your project aligns with the grant program’s priorities and criteria, how it addresses a critical need or problem in your community, and how it will benefit your customers and stakeholders. You should also provide evidence of your system’s capacity and readiness to implement and sustain your project, such as letters of support, permits, certifications, or audits. You should also follow the grant program’s formatting and submission guidelines, such as page limits, font size, file type, or deadline.‍
Manage your grant money: After receiving your grant money, you should manage it responsibly and effectively. You should follow the grant agreement terms and conditions, such as reporting progress, meeting deadlines, complying with regulations, maintaining records, and accounting for expenditures. You should also monitor and evaluate your project’s performance, outcomes, and impacts using appropriate indicators and measures. You should also communicate regularly with your grantor agency to update them on your project’s status, challenges, successes, and lessons learned.‍
Share your results and best practices: After completing your project or activity funded by grant money, you should share your results and best practices with others who may benefit from them. You can use various channels and platforms to disseminate your information and knowledge, such as newsletters, websites, social media posts, webinars, conferences, workshops, case studies, or peer networks. You should also acknowledge the contribution of your grantor agency and other partners who supported your project.

Rural water districts play a vital role in providing safe and reliable drinking water to rural communities across the country. However, they often face challenges that require financial assistance to overcome. Fortunately, there are several grant programs available from the USDA and the EPA that can help rural water districts maintain, modernize, or build their water and wastewater systems.

These grant programs can provide financial assistance, technical assistance, and training to rural water districts to help them improve their services and operations. However, rural water districts need to plan and manage their grant money wisely and effectively to achieve their goals and objectives. They also need to share their results and best practices with others who may benefit from them.

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