The Wisconsin Well Compensation grant program provides financial assistance to replace, reconstruct or treat contaminated private water supplies.
Your well is considered contaminated if the DNR has advised you in writing not to drink the water from your well, or if the results of two water tests analyzed by a certified laboratory indicate that your well water exceeds a health-related state or federal drinking water standard for contaminants other than bacteria or nitrate.
Examples of these well contaminants are heavy metals such as lead, mercury and arsenic; pesticides; and volatile organic chemicals contained in products such as industrial solvents; degreasers; paint; gasoline and fuel oil.
Owners of wells contaminated solely by bacteria or nitrate are not eligible with one exception. Owners of livestock wells are eligible if the well is contaminated with at least 40 parts per million nitrate expressed as nitrogen. (Note: This is four times the drinking water standard for nitrate.)
To be eligible for a grant, a person must own a contaminated private water supply that serves a residence or is used for watering livestock. Owners of springs or dug wells or drilled wells larger than 6 inches in diameter are not eligible. Owners of wells serving commercial establishments are not eligible unless the commercial building also contains a residential unit or apartment.
It is very important to not have a replacement water supply constructed or reconstructed before you receive an award letter or a proceed notice from the Department of Natural Resources. If you do, you will not be eligible for a grant.
If you suspect that your well is contaminated, the first thing you should do is call your DNR region office. DNR staff can help you determine the nature of your water problem, possible solutions, whether or not you are eligible for a well compensation grant and if so supply you with the necessary forms.
To apply for a grant you must fill out claim forms available from our region offices. Your claim must include information about your existing well and the contamination problems as well as a description and cost estimate of the most feasible solution to solve the problem. Possible alternatives include reconstructing your existing well, constructing a new well or connecting to a nearby contaminant-free water supply. If none of these alternatives are feasible, you might be allowed to install state-approved water treatment equipment.
Your claim must also include a copy of your Wisconsin state income tax return for the previous year to show that you are income eligible.
This program applies only to private water supplies. Landowners and tenants, or their spouses, dependents, heirs or legal representatives can apply for a grant. To be eligible your annual family income may not be more than $65,000 for the previous year. Further, if your income is between $45,000 and $65,000, your award will be reduced by $0.30 for each dollar over $45,000. Local governments, schools district, and State or federal agencies are not eligible for grants.
The well compensation grant program provides partial cost sharing for the following activities:
The eligible cost amounts for these activities are set by DNR funding tables. Well construction work must be done according to DNR specifications and the contaminated well must be properly abandoned and filled before payment will be made.
Please further note that the costs for any work done before your claim is filed and approved by the DNR are not eligible for reimbursement.
The well compensation program presently provides 75% of eligible costs up to a maximum grant amount of $9,000. For example, if the eligible cost of replacing your contaminated well is $10,000, the state grant share would be $7,500. If, however, your total costs are over $12,000 the largest grant you can receive is $9,000. You are responsible for paying a minimum of $250 and the segment of the costs not covered by the grant. If you receive funding from any other private sources to cover some or all of the costs of your replacement water supply, your grant may be reduced if the sum of the Well Compensation Grant and the other grant exceeds 100% of the eligible costs.
The grant amount you receive is considered taxable income by the IRS and must be reported as such.
Additional money from the State Environmental Fund may be available to pay for all or a part of that portion of your replacement water supply costs not reimbursed by the Well Compensation grant (minus a small deductible). You must meet low income and other criteria, found in ch. NR 738, Wis. Adm. Code for Temporary Emergency Water Supplies, in order to be eligible. If you are interested in receiving these funds please request that the Department evaluate your eligibility for Environmental Fund money under Ch. NR 738 at the time you submit your request for payment for the Well Compensation program.
DNR staff is available to help you by explaining the requirements of the program, assisting you in evaluating the alternatives for solving your well contamination problem, and help you complete the forms.
If you are going to reconstruct your existing well or drill a new well you should select a licensed well driller and also have the driller help you with the well construction details. A licensed pump installer should help you with the pump installation items and specification.
Grant funds are awarded on a first-come, first-served basis. If funds are available for your claim you will receive a grant award letter. Payment of the grant award will be made only after the work is completed and you have sent a payment request on DNR forms to our district office.
If funds are not available your claim will be placed on a waiting list for possible funding in the future. You will receive a "notice to proceed". You may then proceed to have the work done. You will then receive your payment when the legislature adds more money to the fund. However, there is no guarantee that money will be added to the fund.
The Official Internet site for the Wisconsin Department of Natural Resources