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Arizona Sewer Overflow and Stormwater Reuse Municipal Grant (OSG) Program is sponsored by Arizona Department of Environmental Quality (ADEQ). This program, funded by the U. S.
Environmental Protection Agency (EPA), provides funding for sewer overflow and stormwater reuse pilot projects. The goal is to reduce the discharge of pollutants into Arizona's lakes, rivers, and streams.
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Sewer Overflow and Stormwater Reuse Municipal Grants Program | US EPA Sewer Overflow and Stormwater Reuse Municipal Grants Program Learn about Green Infrastructure and Groundwater Protection On April 29, 2026, EPA announced the availability of approximately $81 million in grants through the Sewer Overflow and Stormwater Reuse Municipal Grant (OSG) Program.
Funds can be used for the planning, designing, and construction of combined sewer overflows (CSOs), sanitary sewer overflows (SSOs), and stormwater management projects. OSG Allocation Memorandum FY 2025 and FY 2026 (pdf) On November 18, 2022, EPA issued a memorandum describing amendments from the Infrastructure Investment and Jobs Act to the OSG program.
These amendments establish a stronger focus on providing assistance to rural and financially distressed communities for sewer overflow and stormwater needs. Infrastructure Investment and Jobs Act Amendments Memorandum, 2022 (pdf) On March 29, 2021, the OSG program assistance listing was posted to SAM. gov and included 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. 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.
In 2021, the Infrastructure Investment and Jobs Act amended the program to add a focus on funding projects in rural and finically distressed communities while also eliminating project cost share requirements for these communities.
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.
In addition, a state should use at least 25 percent of a grant for available projects located in rural communities (population of 10,000 or fewer) and/or in financially distressed communities. States may apply up to four percent of their allotment towards their administrative expenses. In total, the program has been appropriated over $282 million.
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. Grant Implementation Document - Provides information on how to implement the OSG program. For more information, email your questions to: OSG@epa.
gov Clean Water State Revolving Fund Contact Us About the Clean Water State Revolving Fund (CWSRF) Contact Us About the Clean Water State Revolving Fund (CWSRF) to ask a question, provide feedback, or report a problem. Last updated on April 29, 2026
According to the current listing, eligibility includes: Municipalities and public entities in Arizona. Confirm the full requirements in the official notice before applying.
The current listing shows $400,000 available. Verify award ceilings, matching requirements, and allowable costs in the official notice.
Applications for Arizona Sewer Overflow and Stormwater Reuse Municipal Grant (OSG) Program are due September 30, 2026. Build your timeline backwards from this date to cover registrations, approvals, and final submission checks.
Arizona Sewer Overflow and Stormwater Reuse Municipal Grant (OSG) Program is funded by Arizona Department of Environmental Quality (ADEQ). Verify program details on the funder's official page before applying.
This opportunity targets applicants in Arizona. If your organization operates elsewhere, check the official notice for location requirements.
Start from the official opportunity page linked in this listing — it carries the sponsor's submission instructions.
On June 11, 2026, U.S. District Judge Richard Gergel ruled that the EPA's February 2025 termination of the $2.8 billion Environmental and Climate Justice Block Grant Program — created by Section 60201 of the Inflation Reduction Act — was arbitrary, capricious, and unlawful. The ruling voids the termination but does not order the EPA to resume the program, leaving the September 30, 2026 statutory deadline as the binding constraint. For the 116 grantees and the coalition of nonprofits, cities, and tribal partners that were already in award negotiations, the next 105 days will determine whether the program survives in any operational form or migrates entirely to the Court of Federal Claims as a damages action.
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