OSG Assistance Program

The Kentucky Division of Water’s Sewer Overflow and Stormwater Municipal Reuse Grant funds rural and disadvantaged communities in the Commonwealth seeking to use green infrastructure and nature-based solutions to address stormwater runoff.

The 2019 Water Infrastructure Improvement Act defines  green infrastructure  (GI) as “the range of measures that use plant or soil systems, permeable pavement or other permeable surfaces or substrates, stormwater harvest and reuse, or landscaping to store, infiltrate, or evapotranspirate stormwater and reduce flows to sewer systems or to surface waters.” The term "green infrastructure" is often used interchangeably with nature-based solutions (NbS) and low impact development (LID), which are categories of green infrastructure.

Green infrastructure provides a multitude of benefits to communities, including providing cleaner air and water, flood protection, increased recreational spaces, and diverse habitat for wildlife. 

The America’s Water Infrastructure Act (AWIA) of 2018 and the Infrastructure Investment and Jobs Act amended section 221 of the Clean Water Act (CWA) to reauthorize the  Sewer Overflow and Stormwater Reuse Municipal Grants Program . The OSG program is intended to address local governments’ infrastructure needs for combined sewer overflow (CSO), sanitary sewer overflow (SSO), and stormwater management. Federal grant requirements mandate that a minimum of 20% of the total grant award must be used for implementation of green infrastructure solutions in rural and disadvantaged communities.

To be eligible to apply for OSG GIAP funds, you must be a municipal entity.

While all municipalities are eligible to apply, communities that qualify as rural or disadvantaged will receive priority in project ranking.

Rural communities are those with a population of <= 10,000 people.

A disadvantaged community is defined using Kentucky’s annual  Intended Use Plans .  Communities that do not meet definitions for rural or disadvantaged are required to provide 20% matching funds.

Eligible projects must address issues related to stormwater management utilizing green infrastructure or nature-based solutions. Examples of eligible projects include, among others, the following:

• Downspout disconnection
• Rainwater harvesting
• Rain gardens
• Planter boxes
• Bioswales
• Permeable pavements/pavers
• Green sinks
• Green streets/alleys/parking/roofs
• Urban tree canopy
• Associated costs of land acquisition for conservation, excluding the land purchase itself
• Green detention basin retrofits
• Wetland/stream restoration
• Riparian zone plantings 

Refer to the Program Guidance for more details.

Ineligible projects include but are not limited to projects involving:

• Routine compliance monitoring and sampling
• Stormwater storage that does not utilize green elements
• Traditional “grey” infrastructure; aka engineered infrastructure that does not mimic the natural environment to infiltrate or filter stormwater
• Direct acquisition of land/easements

Projects that do not meet the eligibility requirements will not be considered for funding.

The Division of Water encourages submission of a Letter of Intent to notify the Division of the intended submission of an application. Letters should be submitted by May 2, 2025, using the OSG Letter of Intent Form.

It is important that applications clearly convey what the project proposes to accomplish and how that will be achieved.   All applicants are encouraged to use the OSG Application Form. Applications that are incomplete or represent ineligible projects will not be considered for funding. The application must be emailed, postmarked, or received (if hand delivered) no later than July 3, 2025. Any submissions after this date will not be considered for funding under the current Federal Fiscal Year (FFY). All applicants will be notified regarding their project eligibility or allowability.

Eligible and complete project applications submitted on time will undergo the ranking and selection process. Because funding is limited, it is very unlikely that all project applications will receive funding. Therefore, project applications compete against each other for these funds. A panel of reviewers from the DOW participate in evaluating project applications based on criteria for a successful project. Applicants will receive notice of whether a project has been selected for funding after the evaluation process is complete.

The review and ranking process takes into account the accuracy and completeness of an application. If your application is selected for funding, its content will be incorporated into a legal contract to complete the work described. It is imperative that your application is accurate and complete.

After the EPA awards OSG funds to Kentucky, DOW ranks and selects project applications for funding, then develops and submits a final workplan to EPA for review and approval. Once EPA approves the final workplan, a legal contract between DOW and the applicant will be written and executed. If you are working on your first OSG project, you may wish to obtain a sample legal contract to review. Please note that the EPA frequently adds special conditions and requirements grants. Those that apply to your project will be “passed on” to you in the legal contract.

OSG program funds are distributed as a reimbursement grant, meaning that projects will incur costs and submit invoices to the DOW for reimbursement. Quarterly invoicing is required by the program, but projects may wish to invoice more frequently. Project activities that will receive reimbursement cannot begin until DOW and the applicant sign and fully execute a legal contract. An executed contract will be emailed and/or mailed to the applicant.

The OSG program materials may be downloaded from the following links. We strongly recommend that applicants read all of the program guidance and application instructions prior to attempting to fill out the application.

•  OSG Program Guidance  
•  OSG Application Instructions  
•  OSG Letter of Intent Form 
•  OSG Application  
•  OSG Budget Worksheet 

Explore the map below to see funded projects through OSG:

Looking for inspiration? Explore the resources below.

The  Bioretention Design Handbook  (the handbook) compiles the current state of knowledge from a combination of literature, interviews, and site visits with leading municipalities and practitioners across the United States to document approaches for bioretention design, construction, inspection, and operation and maintenance (O&M).

Learn more about green infrastructure tools, planning, design, funding, operation and maintenance at the  EPA's Green Infrastructure  website.

The  Kentucky Association of Mitigation Managers (KAMM)  was formed in order to promote natural hazard mitigation and management in Kentucky.

•  Nature-based solutions  website
•  Source water protection program 
•  Basin coordinators 
•  Kentucky Water Health Portal 
•  Kentucky Watershed Explorer 

For more information on the OSG program contact dale.booth@ky.gov.