EPA’s Sewer Overflow and Stormwater Reuse Municipal Grants Program helps communities and states reduce water pollution caused by stormwater and sewer runoff. These grants fund green and gray infrastructure projects that strengthen stormwater collection systems, improve flood resilience, and address water quality issues.

	Gives special consideration for small communities
	Allows in-kind services to contribute toward nonfederal cost share requirements
	Supports nature-based solutions

Application cycle: Varies by state. Applicants should approach their state Clean Water State Revolving Fund Program or EPA Regional Office for more information on specific deadlines.

Summary: Communities and states looking to better manage stormwater and sewer runoff should consider the Environmental Protection Agency (EPA)’s Sewer Overflow and Stormwater Reuse Municipal Grants (OSG) Program. The OSG Program provides grant funding for communities to plan, design, and implement stormwater management systems, public notification systems, and other measures to recapture stormwater. OSG projects will have many of the same eligibility requirements as the EPA Clean Water State Revolving Fund (CWSRF) Program. States must allocate at least 20% of their funds to green infrastructure projects, and can receive cost-sharing incentives by directing more of their awards to financially distressed or rural communities.

Eligible applicants: State and local governments, including waste treatment management agencies; tribal governments and organizations; and territories.

Eligible activities: The OSG program provides grants for communities to plan, design, and build systems to manage stormwater, combined sewer overflows (CSOs), and sanitary sewer overflows (SSOs). Projects eligible for the CWSRF are typically eligible under OSG.

• Stormwater and subsurface drainage water: Grants are available for projects to intercept, transport, control, treat, or reuse stormwater. Eligible stormwater management projects include:
  • Green infrastructure: Green roofs, streets, and walls; rainwater harvesting systems; infiltration basins; constructed wetlands; bioretention areas (e.g., rain gardens); permeable pavement; urban tree canopy restoration; and replacement of gray infrastructure with green infrastructure.
  • Gray infrastructure: Pipe, storage, and treatment systems; collection and treatment systems for reuse; CSO management control systems; sediment controls like filter fences, storm drain protection, street sweepers, and vacuum trucks.
• Combined sewer overflow correction: Grants support projects to manage or eliminate CSOs, such as installing separate sanitary and storm sewers, disconnecting downspouts, building overflow tanks or tunnels, correcting infiltration, and implementing CSO management control systems.
• Sanitary sewer overflow correction: Assistance is available for projects to control SSOs, including fixing infiltration issues; upgrading collection systems, pump stations, and treatment facilities; and implementing SSO management control systems.
• Notification systems: Funding is available for systems that notify the public about sewer overflows that release sewage into rivers and other bodies of water.

Funding: Generally, no federal statutory maximums exist for eligible activities, although individual states allocate funds to prioritized projects and may impose additional limitations. States can distribute their allotted funding to one or more projects. In fiscal year 2024, states received as little as $203,000 and as much as $4,314,000, based on funding formula allocations.

Cost share: 80% federal / 20% nonfederal. Some states may cover portions or the entirety of the nonfederal match.

• In-kind services can contribute to the nonfederal cost share requirement. An EPA CWSRF loan can contribute to the nonfederal cost share requirement.
• States can reduce nonfederal cost share requirements by allocating a greater percentage of allotted funds to projects in rural or financially distressed communities. This could enable states to reduce the nonfederal cost share to 0%.

Application process: 

• To learn more about applying, contact your state Clean Water State Revolving Fund Program or EPA Regional Office. You can also learn more on the OSG website, or by emailing osg@epa.gov.
• Project budget periods will be no more than four years.
• EPA requires states to use at least 20% of their allotted funds for green infrastructure, water and emergency efficiency improvements, and other environmentally innovative activities.
• EPA requires states to direct at least 25% of their allotted funds to projects in financially distressed communities or rural communities of 10,000 or fewer.