Opportunity Information: Apply for EPA OW OWOW 08 04

  • The Environmental Protection Agency in the environment sector is offering a public funding opportunity titled "Targeted Watersheds Grants for Water Quality Trading or Other Market Based Projects to Reduce the Hypoxic Zone in the Northern Gulf of Mexico" and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 66.439 Targeted Watersheds Grants.
  • This funding opportunity was created on Jun 6, 2008 and posted on Jun 6, 2008.
  • Applicants must submit their applications by Sep 9, 2008 Please refer to the full announcement, including Section IV for additional information on submission methods and due dates.. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • The funding agency has allocated a total of $4,200,000.00 to eligible and selected applicants.
  • Each selected applicant is eligible to receive up to $1,000,000.00 in funding.
  • The number of recipients for this funding is limited to 20 candidate(s).
  • Eligible applicants include: Private institutions of higher education County governments Public and State controlled institutions of higher education Others (see text field entitled Additional Information on Eligibility for clarification) State governments Native American tribal governments (Federally recognized) City or township governments.
  • See Section III of the announcement for additional eligibility information.
Apply for EPA OW OWOW 08 04

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Opportunity Summary:

The EPA grant opportunity titled "Targeted Watersheds Grants for Water Quality Trading or Other Market Based Projects to Reduce the Hypoxic Zone in the Northern Gulf of Mexico" is a discretionary funding program focused on reducing nutrient and sediment pollution that ultimately contributes to the large low-oxygen "hypoxic zone" in the Northern Gulf of Mexico. The central idea behind the program is to support market-based approaches to water quality improvement, such as water quality trading and similar incentive-driven programs, in places where local waterways drain into the Mississippi River system. By encouraging projects that reduce nitrogen, phosphorus, sediment, or other pollutants that contribute to low biological oxygen demand (BOD), the EPA aims to cut the pollutant loads moving downstream and help address Gulf hypoxia at its source.

The program is designed around two main project priorities. Priority I is a Market Feasibility Assessment, which typically involves determining whether a market-based water quality program can work in a given watershed. This can include evaluating pollutant sources, potential buyers and sellers of credits, regulatory drivers, monitoring and verification options, stakeholder readiness, and the basic economics of trading or other market mechanisms. Priority II covers Program Design and/or Program Implementation, which moves beyond feasibility into building the actual framework for a trading or market program and potentially launching it. This can involve developing rules and governance structures, credit calculation methods, tracking systems, monitoring and verification protocols, outreach to participants, and the early-stage operation of the program.

A key eligibility and location requirement is that proposed projects must be located within at least one of three Mississippi River sub-basins, as defined by USGS eight-digit Hydrologic Unit Codes (HUCs). Specifically, the eligible areas are HUCs beginning with 05 (Ohio River sub-basin), 07 (Upper Mississippi River sub-basin), or 08 (Lower Mississippi River sub-basin). In practical terms, this means the grant is targeted to upstream watershed areas where nutrient and sediment reductions can meaningfully decrease the pollution delivered through the Mississippi River to the Gulf.

Funding is provided through grants and cooperative agreements under CFDA 66.439 (Targeted Watersheds Grants). The total estimated funding available was $4.2 million, with an expected 20 awards. Individual awards were anticipated to range from $100,000 (floor) to $1,000,000 (ceiling). The opportunity includes a cost-sharing or matching requirement, meaning recipients must provide some portion of project resources from non-federal sources, though the specific terms are detailed in the full announcement (particularly the eligibility and funding sections).

Eligible applicants include a broad range of entities: state governments, county governments, city or township governments, federally recognized tribal governments, private institutions of higher education, and public or state-controlled institutions of higher education. The announcement also notes an "Others" category, with additional clarification provided in the full solicitation, and it directs applicants to Section III for detailed eligibility conditions and any special constraints.

Administratively, the opportunity was posted and created on June 6, 2008, with an original and current closing date of September 9, 2008, and an archive date of October 9, 2008. Applicants were instructed to consult the full announcement, especially Section IV, for submission procedures, specific deadlines, and application requirements. For access issues or questions about the full announcement, the listed contact was Tim Icke at 202-566-1512.

Frequently Asked Questions (FAQs)

What is the purpose of the EPA grant "Targeted Watersheds Grants for Water Quality Trading or Other Market Based Projects to Reduce the Hypoxic Zone in the Northern Gulf of Mexico"?

This discretionary funding program supports projects that reduce nutrient and sediment pollution that contributes to the low-oxygen "hypoxic zone" in the Northern Gulf of Mexico. The focus is on upstream watershed actions that reduce pollutant loads moving through the Mississippi River system and ultimately reaching the Gulf.

What environmental problem is this program trying to address?

The program targets pollutants that contribute to Gulf hypoxia, a large area of low dissolved oxygen in the Northern Gulf of Mexico. By reducing upstream nutrient and sediment pollution, the program aims to lessen the downstream impacts that help drive the hypoxic zone.

What types of approaches does this grant prioritize?

The central emphasis is on market-based approaches to improving water quality. This includes water quality trading and other incentive-driven or market mechanisms intended to achieve pollutant reductions efficiently and at scale.

Which pollutants are specifically referenced as being addressed by this opportunity?

The opportunity highlights reductions in nitrogen, phosphorus, sediment, and other pollutants that contribute to low biological oxygen demand (BOD), since these are linked to conditions that worsen Gulf hypoxia.

Where must projects be located to be eligible?

Projects must be located within at least one of three Mississippi River sub-basins, defined by USGS eight-digit Hydrologic Unit Codes (HUCs). Eligible areas are HUCs beginning with 05 (Ohio River sub-basin), 07 (Upper Mississippi River sub-basin), or 08 (Lower Mississippi River sub-basin).

What do the HUC code requirements (05, 07, 08) mean in practical terms?

In practical terms, the location requirement targets upstream watershed areas that drain into the Mississippi River system. The idea is to fund projects where nutrient and sediment reductions can meaningfully reduce pollution delivered downstream to the Gulf of Mexico.

What are the two main project priorities under this program?

The program is organized around two priorities: Priority I (Market Feasibility Assessment) and Priority II (Program Design and/or Program Implementation). Applicants should align their proposal with one of these priorities based on project maturity and goals.

What is Priority I: Market Feasibility Assessment?

Priority I generally covers work to determine whether a market-based water quality program could function in a specific watershed. This may include assessing pollutant sources, identifying potential buyers and sellers of credits, understanding regulatory drivers, considering monitoring and verification options, evaluating stakeholder readiness, and analyzing the basic economics of trading or other market mechanisms.

What is Priority II: Program Design and/or Program Implementation?

Priority II supports moving beyond feasibility into creating and potentially launching a market-based program. Activities can include developing program rules and governance structures, credit calculation methods, tracking systems, monitoring and verification protocols, outreach to participants, and early-stage operation of the program.

Does the program only support water quality trading, or can other market-based models apply?

The opportunity is centered on water quality trading but also explicitly includes "other market based projects" and incentive-driven programs intended to reduce nutrient and sediment pollution.

What is the CFDA number for this opportunity?

Funding is provided through CFDA 66.439 (Targeted Watersheds Grants).

What funding instrument(s) are used for this opportunity?

The opportunity provides funding through grants and cooperative agreements.

How much total funding was estimated to be available?

The total estimated funding available was $4.2 million.

How many awards were expected?

The EPA anticipated making about 20 awards.

What is the expected award size range?

Individual awards were anticipated to range from $100,000 (floor) to $1,000,000 (ceiling).

Is cost sharing or matching required?

Yes. The opportunity includes a cost-sharing or matching requirement, meaning recipients must provide some portion of project resources from non-federal sources. The specific terms are described in the full announcement, particularly in the eligibility and funding sections.

Who is eligible to apply?

Eligible applicants include state governments, county governments, city or township governments, federally recognized tribal governments, private institutions of higher education, and public or state-controlled institutions of higher education. The announcement also includes an "Others" category, with further details provided in the full solicitation (Section III).

Where can applicants find detailed eligibility conditions and constraints?

The announcement directs applicants to Section III for detailed eligibility conditions and any special constraints, including clarification of the "Others" category.

When was this opportunity posted and created?

The opportunity was posted and created on June 6, 2008.

What was the application deadline?

The original and current closing date listed for the opportunity was September 9, 2008.

When was the opportunity archived?

The archive date was October 9, 2008.

Where are the submission procedures and application requirements described?

Applicants were instructed to consult the full announcement, especially Section IV, for submission procedures, specific deadlines, and application requirements.

Who can be contacted for access issues or questions about the full announcement?

The listed contact for access issues or questions about the full announcement was Tim Icke at 202-566-1512.

Why is the program focused on the Mississippi River system?

The program is designed to address Gulf hypoxia at its source by reducing pollutant loads in upstream watersheds that drain into the Mississippi River system, thereby reducing downstream delivery of nutrients and sediments to the Gulf of Mexico.

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