Sewage Facilities Program

The Sewage Facilities Program (SFP) is administered by the Commonwealth Financing Authority (CFA) under the Pennsylvania Department of Community and Economic Development. It is authorized under Act 13 of 2012, which established the Marcellus Legacy Fund to support statewide initiatives that align with the Pennsylvania Sewage Facilities Act of 1966 (Act 537). The program is designed to help communities across Pennsylvania improve planning and construction efforts related to sewage and water infrastructure. Its purpose is to ensure the development and maintenance of sustainable sewage facilities, thereby safeguarding public health and promoting environmental conservation. This funding opportunity supports both planning and construction projects. Eligible planning activities include feasibility studies, permitting, engineering, and design work that fall under the purview of Act 537. Construction projects can include building new sewage systems or expanding and rehabilitating existing ones, provided they are part of an approved Act 537 plan. All planning projects require submission and prior approval of a Task/Activity Report by the Pennsylvania Department of Environmental Protection (DEP) before the grant application can be submitted. For all project types, commencement of work before receiving formal approval from CFA renders the project ineligible for funding. Eligible expenses include costs directly associated with planning, and a limited amount (up to 2%) of administrative costs such as legal, advertising, audit, and staff time. The program requires a 50% match of the total project cost from the applicant. Applicants must provide documentation proving their financial commitment to the match at the time of application submission. The maximum grant amount available for planning projects is $100,000. Construction projects may receive funding in varying amounts, contingent on the budget and scope. Ineligible costs include, but are not limited to, public relations, lobbying, litigation, financing fees, application preparation fees, and any costs incurred before official approval is granted. Entities eligible to apply for the SFP include municipalities, councils of governments, 501(c)(3) nonprofit organizations registered in Pennsylvania, educational institutions, watershed organizations recognized by the state, and for-profit businesses—excluding natural gas producers. Public sector applicants must also submit a board resolution formally requesting the grant and designating officials to handle all associated documents. All applicants must follow state bidding laws, prevailing wage rules for construction projects, and maintain comprehensive project records accessible to the Authority. Applications for the Sewage Facilities Program are submitted online via the PA Department of Community and Economic Development's Single Application portal. The application window opens on February 1st and closes on May 31st annually. Required supporting materials include a project narrative, financial statements, proof of matching funds, and the Task/Activity Report. Applications are evaluated on criteria such as cost, strategic importance, and potential impact. Upon approval, the applicant receives an agreement and must execute it electronically within 45 days. Funding is disbursed at a minimum of 30-day intervals after verification of incurred expenses. The planning costs must be documented and submitted through signed payment request forms, including canceled checks or relevant bank statements. Program inquiries can be directed to the CFA Programs Division via email or phone. Additional resources and the official program guidelines are available on the DCED website.