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Drinking Water Source Protection Grant Program

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Background

In June 2023, the Oregon Legislature passed House Bill (HB) 2010 that established the Drinking Water Source Protection (DWSP) grant program at OWEB and provided initial funding. Through the DWSP Grant Program, OWEB provides grants to public water suppliers to protect, restore, or enhance sources of drinking water through land acquisition and conservation. The program focuses on water suppliers that serve rural communities and/or lower-income populations but is not limited to these communities. See below for eligibility information.

In April 2025, the OWEB board awarded the full $5 million legislative allocation to fund six DWSP applications. (See Coalition of Oregon Land Trust’s press release for more information on funded projects.)

In September 2026, the Oregon Environmental Restoration Council (Council) approved $1,000,000 in funding from the Oregon Environmental Restoration Fund (OERF) State Agency Program Fund. The OERF dollars are from a 2022 settlement between Monsanto and the State of Oregon for alleged harms from polychlorinated biphenyls (PCBs) and other toxins to be used for projects and programs to restore Oregon’s environment and benefit communities. The Council determined that the DWSP grant program has a nexus with the settlement terms.

Purpose

The DWSP Grant Program provides land acquisition grants to Water Suppliers to protect, restore, or enhance sources of drinking water through:

  1. The acquisition of lands from willing sellers;
  2. Entering into covenants, easements, or similar agreements with willing landowners; or
  3. Repaying a loan used to finance a project as described (a) or (b) above.

Offered: When funding is available

Open: October 19, 2026 - Close: 5 pm (PT), December 10, 2026

NOTE: A pre-application consultation is required by November 25, 2026. To schedule, contact Audrey Squires at audrey.l.squires@oweb.oregon.gov or (503) 798-6337.

Program Overview

Public water suppliers with service populations at or below 25,000 users​, and also classified in one of the following public water system categories:​

  • ​Community Water Systems owned by a local government or non-profit water supplier ​
  • Transient Non-Community Water Systems owned by a local government or non-profit water supplier
  • Non-Transient Non-Community Water Systems owned by a local government or non-profit water supplier
  • Oregon Very Small Water Systems owned by a local government or non-profit water supplier
  • Tribal Public Water Systems

The following water systems are not​ eligible for this program:​

  • Federal-owned w​ater systems
  • State-owned water systems
  • Water systems operated for profit

  • Lands for which acquisition will result in the protection, restoration, or enhancement for the benefit a drinking water source used by the Water Supplier
  • ​Must be partially or fully within the Water Supplier’s Drinking Water Source Area 
  • Both surface water and groundwater source protection are eligible ​

  • Fee title acquisition of lands from willing sellers
  • Entering into covenants, easements, or similar agreements with willing landowners
  • ​Repaying a loan used to finance one of the above

Applicants are encouraged to partner with other organizations, such as land trusts and watershed councils, for technical assistance. If the applicant (water supplier) does not have the in-house capacity to own and/or manage the property long-term, statute allows for a partnership with an eligible holder other than a state agency (defined in ORS 271.715; for example, a land trust or soil and water conservation district) to carry out land acquisition and long-term management of the property.​

Available Funding: ​​$1,000,000​

Required Match: ​5% cash or in-kind match from non-OWEB sources​​​​

October 19, 2026 – Grant solicitation opens

December 10, 2026 – Grant solicitation closes​

January - March 2027 – Project review, including virtual site visits

April 2027 – ​Board approval of recommended projects

October 2028 – Approximate closing deadline for funded projects


To apply online:

  1. Obtain a login (username and password).
    If your organization already has an OGMS login, skip to step 2.
    2. An OGMS login is required to access the online grant application. Only one login per organization is allowed. If no login exists for an organization, please email Fiscal Staff to request one. Include the following in your email:
    • Organization name and address.
    • Grantee Contact Information: name, title, email address, and phone number for the person who will receive all communication from OWEB and sign grant agreements.​
    • Payee Contact Information: name, email address, and phone number for the person who keeps records and submits payment requests and documentation.
    • FEIN (Federal Employer Identification Number). OWEB may enter into agreements only with legally established entities. OWEB will confirm data in the IRS system prior to creating an OGMS login.
    • Per federal guidance, all OWEB grantees must be registered at the System for Award Management (SAM) before receiving a grant agreement. Entities will receive​ a non-proprietary identifier (called the Unique Entity Identifier (UEI).) This identifier is assigned by SAM (sam.gov​​ is a free service) and entities must update their registration annually.​

  2. Log in to the Online Application.
    An Application Template is available through the top navigation bar on the Online Application website.  Application Guidance is found in the Program Manual under the "Guidance & Documents" section above.​

Contact

Please direct questions or comments to Audrey Squires, Drinking Water Source Protection Specialist, 503-798-6337.

Stay informed about DWSP Grant Program updates by subscribing to the OWEB GovDelivery.

Administrative Rules and Statutes

The OWEB Board recently adopted Oregon's Administrative Rules for the DWSP Grant Program located on the Secretary of State website. The DWSP rules will provide potential applicants with a detailed understanding of the grant program. This presentation, delivered to the OWEB Board on July 24, 2024, provides a summary of the DWSP administrative rules. The Oregon Revised Statutes for the program are located here: ORS 448.370 to 448.380.