The Department of Natural Resources (DNR) administers a program to assist private well owners. The Well Compensation Grant Program provides funding to eligible landowners or renters to replace, reconstruct, or treat contaminated private water supplies that serve a residence or provide water to livestock.
The Well Compensation Grant Program provides funding to pay for 75% of up to $16,000 in eligible costs, which means the maximum possible grant award is $12,000. If the total eligible cost of replacing a contaminated well is $10,000, the grant amount would be $7,500. If total eligible replacement costs exceed $16,000, the maximum grant amount will still be $12,000. Family income may not exceed $65,000 for the prior calendar year. An income reduction of 30% is applied for each dollar over $45,000 in income. The owner is responsible for paying a minimum of $250 and any costs not covered by the grant. If they receive funding from any other private sources to cover some or all of the replacement water supply, the grant may be reduced if the total of the Well Compensation Grant and other grant exceed 100% of the eligible costs.
Since the owner will enter into a contract with well driller or licenses pump installer for their services, they are responsible to pay 100% of those costs. A Well Compensation grant from the DNR will not cover 100% of these costs. To ensure that well driller is paid, it is DNR practice to mail the grant payment check to the well driller or licensed pump installer, unless they provide the DNR with an invoice marked “paid in full” and signed and dated by the well driller or licenses pump installer at the time the owner submits the reimbursement request form.
DNR will fund well compensation grants using the expanded eligibilities under the ARPA program until those funds are exhausted or December 2024, whichever is sooner. At that time, DNR will continue awarding well compensation grants to applicants eligible under the original statutory program.
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