This agreement funds a capitalization grant for the recipient's clean water state revolving fund program

Federal Grant Award Summary

The South Dakota Department of Agriculture and Natural Resources (DANR) received a $9.35 million capitalization grant from the Environmental Protection Agency (EPA) Region 8 under the Clean Water State Revolving Fund program (CFDA 66.458), awarded September 1, 2025, with a completion date of July 31, 2032. This formula grant funds DANR's Clean Water State Revolving Fund (CWSRF) program, which provides low-interest financing to municipalities and local entities throughout South Dakota for planning, design, and construction of water quality improvement and protection projects. The program establishes a self-sustaining financing mechanism whereby loan repayments generate continued funding availability for future infrastructure initiatives, ultimately improving and protecting water quality and public health for citizens statewide.

Through this capitalization grant, DANR has already deployed funds to subrecipients including the City of Sioux Falls and the Town of Keystone. The City of Sioux Falls received financing in April 2026 to construct new sanitary sewer infrastructure along Lincoln County Highway 106, including force mains, gravity trunk lines, lift stations, and extensions in multiple phases. The Town of Keystone received funding in February 2026 to upsize its sewer line from 10-inch to 15-inch diameter, reducing the risk of system backups during peak capacity periods. These infrastructure projects exemplify the program's focus on wastewater treatment and water quality management activities consistent with the Clean Water Act.

Activities:the recipients of these funds provide low interest financing to numerous subrecipients. Subrecipient:no subawards are included in this assistance agreement.outcomes:anticipated deliverables include financing planning, design, and construction of eligible water quality improvement and protection projects. The expected outcomes are to improve and protect water quality and public health. The intended beneficiaries include citizens throughout the state.