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Sewer Overflow and Stormwater Reuse Municipal Grants Program


On March 29, 2021, the Sewer Overflow and Stormwater Reuse Municipal Grants (OSG) program assistance listing was posted to and includes information on the application requirements for the program.

On February 24, 2021, EPA published a Federal Register Notice establishing the allocation formula for the upcoming OSG program.This formula describes how EPA will distribute program funds for the states, District of Columbia, and the U.S. territories to provide grants to manage combined sewer overflows, sanitary sewer overflows, and stormwater flows. In August 2020, EPA proposed an allocation formula for this program and received comments from the public which were considered in finalizing the formula.

Program Information

Urban stormwater is a significant source of water pollution and can be a public health concern. Stormwater can collect various pollutants including trash, chemicals, oils, and dirt/sediment and convey them to nearby waterways. When mixed with domestic and industrial wastewater in combined sewers, stormwater can also contribute to combined sewer overflows during heavy storm events. Managing runoff remains a complex environmental challenge for local communities across the country. Many communities often face financial challenges trying to correct these issues given the costs to construct, operate, and maintain the infrastructure. This new grant program will provide funding for critical stormwater infrastructure projects in communities including combined sewer overflows (CSO) and sanitary sewer overflows (SSO).

America’s Water Infrastructure Act (AWIA) of 2018 amended section 221 of the Clean Water Act, which reauthorized the Sewer Overflow and Stormwater Reuse Municipal Grants program. These amendments expanded project eligibilities to include stormwater management projects and authorized appropriations for the program. Grants will be awarded to states, which will then provide sub-awards to eligible entities for projects that address infrastructure needs for CSOs, SSOs, and stormwater management.

States are required to prioritize funding projects for communities that are financially distressed, have a long-term municipal CSO or SSO control plan, or for projects that have requested a grant on their Clean Water State Revolving Fund (CWSRF) Intended Use Plan. Projects under this program will have many of the same program requirements as the CWSRF and, to the extent that eligible projects are available, at least 20 percent of a state’s allocation must be used for green infrastructure, water and energy efficiency improvements, and other environmentally innovative activities. States may apply up to four percent of their allotment towards their administrative expenses. The program received a $28 million appropriation in fiscal year 2020 and a $40 million appropriation in fiscal year 2021.

EPA developed the allotment formula for the OSG program to best address CSOs, SSOs, and stormwater needs for each state, as determined by the data from the latest Clean Watersheds Needs Survey, along with supplemental data on population, urban population, and precipitation.

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