NJ Water Bank The Sewer Overflow and Stormwater Reuse Municipal Grants

PURPOSE OF FUNDING
The Sewer Overflow and Stormwater Reuse Municipal Grants program (OSG) provides funding for the planning, design, and construction of infrastructure needs for combined sewer overflows (CSO), sanitary sewer overflows (SSO), and stormwater management.

APPLICATION
System for Managing Grants Electronically (SAGE)

APPLICATION DEADLINE
Rolling 

NOTIFICATION DATE
Rolling

SOURCE OF FUNDING
Funding is proposed by the New Jersey Department of Environmental Protection through federal award 

STATUTORY CITATION
33 U.S.C. 1301; Bipartisan Infrastructure Law; Consolidated Appropriations Act of 2024 (Public Law No. 118-42). 

WHO IS ELIGIBLE
Eligibility is limited to municipalities or municipal entities. 

PRIORITIZATION OF OSG PROJECTS
The award of subawards will be prioritized to eligible subrecipients that are financially distressed communities; implementing a long-term control plan for CSOs or SSOs; or requesting funds for a project included on the Clean Water State Revolving Fund Intended Use Plan. “Financially distressed community” means a community that meets the affordability criteria established by the State in which it is located. 

Projects will be further prioritized based on whether it serves an overburdened community identified on the Department’s Office of Environmental Justice interactive mapping tool, the quantity of flow anticipated to be removed from a system or flood prone area, and the use of green technology consistent with the design and performance standards under N.J.A.C. 7:8 (Green Infrastructure in New Jersey. Additional points will be awarded for documented localized flooding based on storm intensity and for applicants implementing local hiring requirements in the contract documents. 

For more information on prioritization and ranking points, consult the Department’s State Fiscal Year 2025 Intended Use Plan at: https://njdepwptest.net/wp-content/uploads/wiip/docs/ffy24-sfy25-final-cwsrf-iup.pdf 

QUALIFICATIONS REQUIRED FOR CONSIDERATION
Eligible entities must: (1) if you do not already have one, set up an account with H2LOans for a project associated with the grant and set up an account with SAGE for the grant application, (2) submit all project application information and documentation via H2LOans and receive all DEP approvals (engineering contract approvals, authorization to advertise, authorization to award, etc.), and (3) complete the grant application on the Department’s online SAGE portal. 

GRANT/LOAN LIMITATIONS
Approximately $12 million in grant funds is available for State Fiscal Year (SFY) 2025. 

Grant funds must be used for capital improvement projects for CSO, SSO, or stormwater management. This includes planning, design, construction, and equipment purchases. 

The OSG grant shall be not less than 80% of the project cost. Project sponsors that receive an OSG grant for up to 80% of eligible project costs are eligible to receive a principal forgiveness loan for the remaining 20% of costs. Financially distressed communities are eligible to receive OSG grant funding for up to 100% of eligible project costs.  

Total project costs are capped at $2 million. The balance of the project would have to be separately funded and would be eligible for SRF funds at the rates offered for the applicable project type as indicated in the SFY 2025 Intended Use Plan. 

Operations and maintenance activities are not eligible for funding. 

A project that receives grant money is subject to the same requirements as a project that receives money from the Clean Water State Revolving Fund. 

APPLICATION PROCEDURES
Applicants must apply using the Department’s online SAGE portal at: https://njdepsage.intelligrants.com/Login2.aspx?APPTHEME=NJDEP 

Applicants must submit documentation for the project associated with the grant using the Department’s online H2LOans portal at: https://www.h2loans.com/  

Complete applications consist of a completed grant application in the Department’s online SAGE portal, submission of eligible project information via the Department’s online H2LOans portal, and the Department’s approval of draft planning and design professional service agreements.  

REVIEW PROCESS
Applications will be reviewed on a first-come first served basis and complete applications will receive funding based on rank and readiness to proceed.

FOR MORE INFORMATION, CONTACT 
waterbankinfo@dep.nj.gov