The South Dakota Department of Agriculture and Natural Resources (DANR) announced that the Board of Water and Natural Resources has approved $48.9 million in loans and grants for projects across the state, supporting drinking water, wastewater, and infrastructure improvements.
The funding includes $36.96 million in state loans, including $425,000 in principal forgiveness, for drinking water and wastewater upgrades. In addition, $7.65 million was allocated through Emerging Contaminants grants for small or disadvantaged communities, and $4.31 million in American Rescue Plan Act (ARPA) funds were awarded for various statewide projects.
The funding was distributed through DANR’s Drinking Water State Revolving Fund, Clean Water State Revolving Fund, Emerging Contaminants grants, and ARPA dollars. Key projects include:
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BDM Rural Water – $233,450 in ARPA funding to expand the water system, including a new water treatment plant, reservoir, and upgraded meters. The project’s total ARPA funding now totals $5.5 million.
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Clay Rural Water – $334,250 in ARPA funding for new reservoirs, a booster station, and distribution line improvements. Total ARPA funding for this project is $7.78 million.
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Mid-Dakota Rural Water System – $917,357.85 in ARPA funding to upgrade metering, backwash recovery, and membrane capacity, bringing total ARPA funding to $21.6 million.
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Mitchell – $3.93 million Clean Water State Revolving Fund loan at 3.75% for 30 years to upgrade sanitary and storm sewer infrastructure.
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Rapid City – $14.51 million Drinking Water State Revolving Fund loan at 4% for 30 years to improve existing wells and construct two new wells.
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Sioux Falls – $7.65 million Emerging Contaminants grant to connect to the Lewis and Clark Regional Water System, and a $17.75 million Clean Water loan at 3.5% for 20 years for Phase I of Southeast Basin sanitary improvements.
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South Lincoln Rural Water System – $328,250 in ARPA funding for system-wide improvements, including a new water treatment plant and elevated water tank, bringing total ARPA funding to $8.45 million.
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Statewide Riparian Buffer Initiative (RBI) – $1 million in additional ARPA funding, bringing the total to $7 million.
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Toronto – $770,000 Drinking Water State Revolving Fund loan, including $425,000 in principal forgiveness, to relocate water mains for road construction.
“These investments strengthen South Dakota’s water infrastructure and ensure safe, reliable service for communities statewide,” DANR Secretary said.
The Clean Water and Drinking Water State Revolving Fund programs are jointly funded by the State of South Dakota and the U.S. Environmental Protection Agency, providing low-interest loans for wastewater, stormwater, water conservation, nonpoint source, and public drinking water projects. Funding comes from federal appropriations, loan repayments, and bonds.