Sewer Overflow and Stormwater Reuse Municipal Grant Program

The objective of the OSG Program is to award grants to the states, the District of Columbia, and U.S. territories for the purpose of providing grants to a municipality or municipal entity for the planning, design, or construction of: 1) treatment works to intercept, transport, control, treat, or reuse municipal combined sewer overflows (CSOs), sanitary sewer overflows (SSOs), or stormwater; and 2) any other measures to manage, reduce, treat, or recapture stormwater or subsurface drainage water. State recipients shall continue to provide funding to municipalities based on the following priorities: 1. financially distressed communities that meet the affordability criteria established by the state; 2. implementing a long-term control plan for CSOs or SSOs; 3. requesting funds for a project included on a state’s Intended Use Plan for the Clean Water State Revolving Fund; or 4. an Alaskan Native Village. State recipients may select which priorities from this list are most relevant for their program when determining which municipalities to fund. Furthermore, to the extent there are sufficient eligible project applications, at least 20% of a state’s allocation must be used for green infrastructure, water and energy efficiency improvements, or other environmentally innovative activities. To the extent there are sufficient eligible project applications, a State shall use not less than 25 percent of their allocation amount to carry out projects in rural communities or financially distressed communities. Of this 25 percent amount, at least 60 percent of this amount should go...

Eligible recipients include the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands.

Applications are assessed consistent with the merit review regulations in 2 CFR 200.205.

This program has no statutory formula. The Federal share for awards shall be 80% of the total award. Non-Federal share requirements cannot be passed on to rural communities and financially distressed communities. Recipients are required to provide a non-federal cost share/match for the remaining 20% of the total award, unless reduced by EPA after verifying that funds will support Rural (population of 10,000 of less) and/or Financially Distressed communities as defined by the state as described in 33 USC 1301(d)(2). Sources of Cost Share: statutory language in 33 USC 1301(d) describes: The non-Federal share of the cost may include, in any amount, public and private funds and in-kind services, and may include, notwithstanding 33 USC 1383(h), financial assistance, including loans, from a State water pollution control revolving fund (CWSRF). OSG-related expenses paid by the CWSRF fee...

Fiscal Year2025: Examples of projects include: stormwater improvement projects to address urban runoff and improve water quality, projects to reduce runoff and flooding, projects to plan, design, or construct combined sewer overflows (CSOs) and sanitary sewer overflows (SSOs), and stormwater projects implementing long-term control plans for CSOs or SSOs.