Federal Fiscal Year (FFY) 2027 Clean Water Act (CWA) Section 319(h) Grant

The Texas Commission on Environmental Quality (TCEQ) is issuing a Request for Grant Applications (RFGA 582-27-00033) under the Federal Fiscal Year 2027 Clean Water Act Section 319(h) Nonpoint Source (NPS) Grant Program to fund water quality improvement projects addressing nonpoint source pollution. Eligible applicants include state agencies, political subdivisions of Texas, and nonprofit 501(c)(3) organizations that will implement watershed protection plans, develop nine-key-element watershed protection plans, implement Total Maximum Daily Load (TMDL) implementation plans, or conduct standalone activities such as best management practice (BMP) implementation, education and outreach, or on-site sewage facility (OSSF) remediation. Deliverables include watershed characterization and planning with stakeholder coordination, data acquisition, and pollutant load estimation; BMP design and construction with minimum ten-year post-construction maintenance; water quality monitoring programs following approved Quality Assurance Project Plans (QAPPs); project administration and quality assurance documentation; and final project reports. Projects must commence September 1, 2027, and continue through August 31, 2030, with approximately 10 projects funded annually. Applications must be submitted electronically by June 29, 2026, at 3:00 PM Central Time, with questions due by June 4, 2026, at 3:00 PM Central Time. Evaluation criteria include alignment with EPA-approved funding priorities and NPS Program objectives, project success potential and technical feasibility, applicant qualifications and past performance history with TCEQ, cost-effectiveness, budget quality and detailed financial justification, and overall application quality. All work must comply with applicable Texas Administrative Code requirements and federal regulations under 2 Code of Federal Regulations Part 200.

Eligible organizations are restricted to state agencies, Texas political subdivisions, and nonprofit 501(c)(3) organizations; for-profit entities are not eligible. Nonprofit applicants must complete a Grantee Assessment Questionnaire and demonstrate financial management systems compliant with Generally Accepted Accounting Principles. All projects require a strict 60% federal to 40% nonfederal cost-sharing arrangement, with matching funds available for invoicing beginning in the second quarter of project execution; match may consist of cash or in-kind services provided by the grant recipient, subcontractors, or project partners. Recent awards have ranged from $60,000 to $500,000 in federal funds, with the current solicitation outlining a sample total project budget of $276,890.58 (comprising $187,584.97 in TCEQ reimbursable federal costs and $89,305.61 in grantee match nonfederal costs). Projects operate on a reimbursement basis with quarterly payments, requiring applicants to perform work, pay costs upfront, and submit invoices with supporting documentation. Indirect costs are reimbursable up to an applicant's approved audited rate or a de minimis rate of 15% of modified total direct costs for entities without a negotiated rate. Projects involving work outside the United States or dredging activities are ineligible, and all applicants must comply with Title VI of the Civil Rights Act, Build America Buy America requirements, and applicable federal procurement and quality assurance standards.