About the Grants Program — In 1991, the Nevada State Legislature created a program (NRS 349.980 through 349.987) to provide grants to purveyors of water to assist with the costs of capital improvements to publicly owned community water systems and publicly owned nontransient water systems as required, or made necessary by, the state health board or made necessary by the Federal Safe Drinking Water Act (i.e., in compliance with the surface water treatment rule).
This program is sometimes referred to as the AB 198 Grant Program, after Assembly Bill 198 (in 1991) which established the program. Grants may also be made to eligible recipients to pay for the cost of improvements to conserve water such as in the case of irrigation districts. It is the sole discretion of the Board for Financing Water Projects (Board) to determine who receives grants.
Generally, the grant program seeks to enable communities to comply with health regulations. This program also seeks to assure that the costs of the improvements do not overwhelm or cripple the system. The viability of the system is a significant concern for the State. It is important that, following the system improvement, operations can be managed within the financial and technical capacity of the community.
The grant program was established to fill the financial gap between actual costs and what the community can afford. In this sense, an applicant community is expected to do as much as possible to help themselves before seeking the State's assistance. When a large project is required, the applicant is required to finance as much of the project as is locally possible.
Supporting Revenues — The State Board of Finance issues general obligation bonds of the State of Nevada to support the purposes of this grant program. The bonds are payable from general (ad valorem) taxes levied by the State against all taxable property within the State. The aggregate principal amount of such bonds outstanding at any one time may not exceed $125,000,000.
The State Treasurer's Office determines the debt affordability. The grant program was suspended in September 2010 due to the State's projected debt capacity. In November 2015, a small amount of funding was made available to this program allowing the Board to once again consider new grant applications. Funding availability will vary from year to year.
Program Expendures — A summary of all of the grants approved by the Board from the inception of the program through December 31, 2016 may be viewed by clicking on the images of the state below. (The image will open in a new window.)
In order to see the actual amount of grant funding obligated by the Board and disbursed during the project, click on the Project Summary sheet link below.
Program Summary through December 31, 2016