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Water Project Grants and Loans

Updates

Funding Cycle 1

The Oregon Water Resources Commission awarded $25,900,067 in grants to fund ten projects for the first 2024 cycle of Irrigation Modernization Funding. Nine projects will be immediately funded, and the tenth project received a provisional award contingent on the anticipated spring 2025 bond sale. The Commission also awarded an additional $7,500,000 to the Ochoco Irrigation District and Deschutes River Conservancy for the McKay Creek Water Rights Switch Project, funded by Water Project Grants and Loans in 2023. A portion of the increased funding, $4,000,000, will be immediately awarded and the remaining $3,500,000 is contingent on the anticipated spring 2025 bond sale.

Funding Cycle 2

The Oregon Water Resources Department (OWRD) invites applications for Water Project Grants and Loans (WPGL) projects and Irrigation Modernization projects. OWRD has additional funding this year for Irrigation Modernization projects. An Irrigation Modernization project is a project that improves water use efficiency of irrigation systems on currently irrigated agricultural lands.

Application materials for both funding opportunities are now available. 

Water Project Grants and Loans and Irrigation Modernization applications are scored using 18 questions to assess the project’s public economic, environmental, and social/cultural public benefits. View the Application Scoring Overview and Scoring Criteria documents to learn more.

Learn more about the Irrigation Modernization Funding by viewing the Frequently Asked Questions document.

Applications for both Water Project Grants and Loans and Irrigation Modernization Funding are due by 5:00 p.m. on July 10, 2024.

Click here to view the recording of the Grant Information Session on WPGL and Irrigation Modernization Funding.


Timeline and Review Process


Eligibility

Water Project Grants and Loans

  • This program provides grants for water projects to evaluate, plan, and develop instream and out-of-stream water projects that have economic, environmental and social/cultural benefits. Projects must provide benefits in each of these three categories to be eligible for funding. 
  • This competitive funding opportunity is meant for implementation-ready projects. Eligible projects include: conservation, reuse, above-ground storage, below-ground storage, streamflow protection or restoration, water distribution, conveyance or delivery systems, and other water resource development projects that result in economic, environmental, and social/cultural public benefits. 
  • Grants require a 25% cost match.
  • Any local government, Indian tribe, or person may apply for funding. 
  • If an applicant or co-applicant is required to have a Water Management and Conservation Plan (WMCP), the plan must be submitted to the Water Resources Department and receive approval prior to the application due date.

Irrigation Modernization Funding

  • This program provides grants for projects that improve water use efficiency of irrigation systems on currently irrigated agricultural lands. Eligible activities include, but are not limited to: piping irrigation canals, ditches or laterals; lining irrigation canals, ditches or laterals; installing sprinkler or microirrigation systems; upgrading existing infrastructure, such as flumes or pipes; installing or upgrading pump stations, including variable speed pumps; installing measuring devices or soil moisture monitoring; installing Supervisory Control and Data Acquisition (SCADA) systems; purchasing irrigation scheduling software; and upgrading turnouts. 
  • The project must have federal match associated with Natural Resources Conservation Service authorized watershed plans, U.S. Bureau of Reclamation WaterSMART grants or U.S. Environmental Protection Agency grants that are eligible to be on the Department of Environmental Quality’s Intended Use Plan.
  • Any local government, Indian tribe, or person may apply for funding.
  • If an applicant or co-applicant is required to have a Water Management and Conservation Plan (WMCP), the plan must be submitted to the Water Resources Department and receive approval prior to the application due date.


Available Funding

Water Project Grants and Loans

Funding for Water Project Grants and Loans is provided through the sale of lottery revenue bonds. OWRD anticipates having up to $8.7 million available, with $3.7 million available for immediate award and an additional $5 million potentially available for provisional award contingent on a spring 2025 lottery revenue bond sale. OWRD would not enter into grant agreements for provisionally awarded projects until after the bond sale occurs in March 2025. Please contact the Grant Coordinator with questions.

Irrigation Modernization

Funding for Irrigation Modernization is provided through the sale of lottery revenue bonds. The Legislature authorized $50 million, with $25 million available after the spring 2024 bond sale and the remaining $25 million available after the spring 2024 bond sale. All funds from the 2024 bond sale were awarded by the Commission. The Commission provisionally awarded $4.4 million of the additional $25 million that will be available in 2025, leaving $20.6 million available for future awards. At the December 2024 Commission meeting, projects may be awarded provisional funds from the additional $20.6 million that will be available in 2025. OWRD would not enter into grant agreements for provisionally awarded projects until after the bond sale occurs in March 2025. Please contact the Grant Coordinator with questions.

How to Apply

Application materials are available for the second 2024 funding cycle. There are separate application materials for Irrigation Modernization Funding applications. View and use the documents noted below. OWRD encourages prospective applicants to participate in a Pre-Application Conference prior to submitting an application for funding. The purpose of a Pre-Application Conference is to answer questions, identify additional information needed or issues with project eligibility, and connect applicants to other resources. To discuss a project with OWRD staff or to schedule a pre-application conference, please contact the Grant Coordinator.

2024 Application Materials 

2024 Guidance Documents

Guidance documents include:

  • Scoring Criteria
  • Example Grant Agreement
  • Budget Procedures and Allowable Costs

More Information

The Department has been funding Water Project Grants and Loans since 2016. It has awarded $56.9 million in grants.