What’s New with the Stormwater Quality Projects Incentive Grant Programs?
News release provided by Lexington-Fayette Urban County Government
The Water Quality Fees Board approved the below changes for the upcoming FY26 Stormwater Quality Projects Incentive Grant program.
- The Change Order (CO) Program was approved to continue through FY26. This program allows organizations to request additional funding to help cover extraordinary costs caused by certain unforeseen economic challenges, e.g., increases in supplies or material costs.
- Contingency costs are still allowed. However, for FY 2026 and beyond, the program explicitly defines contingency costs as a portion of a project budget for construction to cover unknown/unanticipated conditions. Contingency costs shall not exceed 20% of the construction opinion of cost.
- Scoring was adjusted to incentivize applicants that have never received a Class A or Class B Infrastructure Grant in the past.
- The Innovation and Experimentation (I&E) funding pool now includes a research or monitoring component to monitor BMP effectiveness and further research alternatives to LFUCG BMPs.
- The program will not consider funding of impervious areas (i.e., concrete or asphalt), including impervious areas “adjacent” to proposed BMPs, except for items included in site restoration (i.e., curbing and sidewalks).
- All proposed BMPs must be located at least 10 feet horizontally from existing and proposed buildings and LFUCG sanitary lines, except for tree trenches and planter boxes, which should use a minimum setback distance of 5 feet. If known sanitary sewer or basement infiltration problems exist, a greater horizontal distance must be used.
- As the program seeks to emphasize water quality enhancement and/or water quantity reduction, riprap or hard armoring of ponds will no longer be an applicable incentive grant program element. Other techniques that enhance the establishment of the riparian zone will be evaluated, such as establishing native vegetation.
- For the FY 2026 grant cycle, scoring was adjusted to give preferential treatment to projects addressing the restoration or maintenance of impaired stream segments.
- Scoring was adjusted to incentivize BMPs based on E. Coli removal effectiveness, as indicated by the International Stormwater BMP Database.
- Costs associated with items unrelated to water quality/quantity or not aligned with the proposed project elements are not eligible for funding.
- Scoring was adjusted to require applicants to provide documentation detailing how the proposed project will exceed the regulatory items.
- A disclaimer and a signature line have been added to the Class BE grant Application Packet to ensure the property owner agrees to the installation and maintenance requirements for the proposed project.
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The program will now require a letter of support or endorsement from all stakeholders (i.e., homeowner associations, Royal Springs Wellhead Protection Committee, etc.) that might be impacted by proposed BMPs. If the proposed BMP is within the extent of the Royal Springs recharge area, a map showing the BMP location relative to the aquifer should be included in the application.
Please visit the Stormwater Quality Projects Incentive Grant Program for more information about the applications and programs that are offered.
If you have a question, comment, or concern, email us at DWQ Incentive Grants.
News release provided by Lexington-Fayette Urban County Government
https://www.lexingtonky.gov/news/whats-new-stormwater-quality-projects-incentive-grant-programs-0
