Each year, U.S. Environmental Protection Agency (EPA) receives a budget through an appropriations bill created by U.S. Congress. Since 1996, Kentucky communities have received grant funding for wastewater and drinking water infratructure projects. EPA refers to these projects as special Appropriations Projects (SPAPs). EPA's Region 4 has delegated the administration of Kentucky's projects to the Division of Water.

SPAP grants are limited to 55% of the estimated eligible project cost and require matching funds. Federal funds from other programs may be used as a match for other Federal grants. These are the programs that can be used:

• Rural Development (RD)
• Community Development Block Grant (CDBG)
• Appalachian Regional Commision (ARC)
• Economic Development (EDA)

GRADD Assists with the preparation of grant applications and administration of the projects. All grant applications and forms must be submitted to the division of water for review and approval. The Division of Water will submit the approved application to the EPA for grant award. Three branches of the Division of Water work closely with the grantees to assure compliance with the funding requirements. The Project Administration Section (PAS) of the Resource Planning and Program Support Branch is responsible for the administrative duties associated with this program. The following documents must be reviewed and approved by PAS:

• Application
• Engineering procurement/contract
• MBE/WBE, and pay requests.

The Drinking Water and facilities Construction Branches are responsible for the planning, design and construction-related activities.