Water Project Grants and Loans

The Oregon Water Resources Department (OWRD) administers the Water Project Grants and Loans (WPGL) program and the Irrigation Modernization Funding opportunity as part of its mission to support the sustainable management of Oregon’s water resources. Since 2016, the department has distributed over $111.9 million in grants, demonstrating a significant investment in projects that aim to enhance economic, environmental, and social or cultural benefits associated with water use and infrastructure. These programs are competitive and are designed to fund implementation-ready projects that directly contribute to statewide water management objectives. The Water Project Grants and Loans program funds instream and out-of-stream water projects that offer triple-benefit outcomes—economic, environmental, and social or cultural. Eligible projects include, but are not limited to, water conservation, reuse, above- or below-ground storage, streamflow protection or restoration, and development of water delivery infrastructure such as conveyance or distribution systems. All projects must demonstrate benefits in all three required categories to be considered eligible. A 25% cost match is required for applicants, and eligible applicants include any local government, Indian tribe, or individual. Additionally, applicants required to have a Water Management and Conservation Plan must receive departmental approval for that plan prior to applying. The Irrigation Modernization Funding program specifically supports the modernization of irrigation systems on existing irrigated agricultural lands. Qualifying activities encompass canal piping or lining, sprinkler and microirrigation installation, infrastructure upgrades including flumes and pumps, and technology improvements such as SCADA systems, moisture monitoring tools, and irrigation scheduling software. Projects must also meet the triple-benefit requirement and be associated with federal matching funds through programs like the NRCS watershed plans, WaterSMART grants, or EPA grants eligible for the Department of Environmental Quality’s Intended Use Plan. A Water Management and Conservation Plan, if required, must also be approved in advance. For the second 2025 funding cycle, OWRD anticipates $600,000 will be available under the WPGL program, subject to change based on the outcome of the 2025–2027 legislative budget. For the Irrigation Modernization program, $4.3 million is available, funded by Oregon Lottery revenue bonds. Both funding programs use an 18-question scoring rubric to evaluate project applications based on their expected public benefits. Guidance documents, including the scoring criteria, grant agreement examples, and budget procedures, are available on the program’s website. The application period for the second 2025 cycle is currently open, with all application materials due by 5:00 p.m. on July 16, 2025. Applicants are encouraged to schedule a Pre-Application Conference with OWRD staff, who will help determine project eligibility, answer questions, and identify any missing information. This step, while not required, is strongly recommended to ensure submission success. Applicants and other interested parties can reach out to the program's main contact, Louisa Mariki, at 503-979-9160 to schedule a pre-application meeting or obtain further guidance. The main office of the Oregon Water Resources Department is located at 725 Summer Street NE, Suite A, Salem, Oregon 97301. Office hours are 8:00 a.m. to 5:00 p.m., though note that the lobby is closed from 12:00 p.m. to 1:00 p.m. and is unable to accept deliveries during that time.