Shelter Island Water Quality Improvement Rebate for I/A Septic Systems

Shelter Island pays a town rebate to homeowners who voluntarily replace a cesspool or conventional septic system with an I/A system. It is run by the Water Quality Improvement Advisory Board and the Town Building Department, and the Town Board approves each award. The rules are stricter than in other towns, so read them before you plan.

Quick facts. Base grant: up to $12,000. Pressurized shallow drainfield: plus $5,000. County-mandated well relocation: plus $4,000. Paid: after the county and state grants, for costs they didn't cover. Not eligible: systems required by code, except after a catastrophic failure. Contact: WQI Clerk, Town Hall, 631-749-0758.

How much you can get

• Base I/A grant, up to $12,000. The amount is based on how much it helps the aquifer. The board scores location sensitivity, the nitrate reduction in kilograms per year, and the type and condition of your existing system.
• Pressurized shallow drainfield, $5,000. For installing a pressurized shallow drainfield instead of a new or existing leaching pool. Only with an I/A system.
• Well relocation, $4,000. If the Suffolk County Department of Health Services requires you to move your private well to fit the I/A system. Only with an I/A system.
• Additional incentives, at the board's discretion, for installations in sensitive areas or for unusual costs.

The Town reimburses eligible costs that the state and county have not already paid, up to the total of the grants approved for your project.

What the rebate covers

The Town's funding policy lists these as eligible expenses:

• Engineering inspection and design, and survey maps
• Equipment, labor and materials
• Excavation or soil sampling required by the county
• Well relocation if the county requires it
• A pressurized shallow drainfield
• Electrical and plumbing work directly tied to the I/A installation
• Redirecting salt brine from a water treatment system to a separate dry well
• Leveling, grading and seeding after installation
• Abandoning the old septic tank or leaching pool

It does not cover landscaping beyond leveling and seeding lawn (such as trees, shrubs or gardens), ordinary maintenance or repair, new construction including tear-down replacements, or projects mainly meant to allow new growth.

Rules to know before you start

• Required systems don't qualify. If the county or Shelter Island Town Code requires an I/A system, for example as part of construction, the rebate doesn't apply. The exception is a catastrophic cesspool failure as defined by the county, which is eligible regardless of the project's score.
• Smallest system for the house. The rebate covers the lowest-capacity system the manufacturer recommends for the existing legal structure. You can install a bigger one and pay the difference.
• Three-year limit on expansion. The Conditional Rebate Agreement limits expanding the home for 3 years from the date the county issues the red stamp design approval. In that window, an expansion that the county says increases design flow, such as adding bedrooms, or any expansion over 1,500 square feet means the rebate must be returned to the Town. A deck, garage or pool that doesn't change design flow is fine.

How the process works

1. Research systems, review the Town's funding policy, and hire a design professional and an installer.
2. Submit the Town's eligibility application to the WQI Clerk by email and deliver a hard copy to Town Hall. Forms are on the Town's WQI page.
3. Once the board reviews it and the Town Board approves, sign and return the Conditional Rebate Agreement.
4. Apply for the county and state grants online through the county. See our grant application guide.
5. Your engineer gets the county design approval (the red stamp), and the system is installed.
6. After the county approves the as-built plans (the green stamp) and pays its grants, submit the certification documents to the Building Department and a Request for Release of Funds package to the WQI Clerk.
7. The board reviews and votes, and the Town sends the check to you.

Gap financing

The Town's WQI page also points to low-interest gap loans of up to $10,000 from the Community Development Corporation of Long Island (CDCLI), with no application fees or closing costs, to cover the difference between the grants and the contract price. CDCLI is a nonprofit lender, not the Town or the county. Call CDCLI at 631-471-1215 for current terms.

The funding policy we checked is dated August 1, 2023. Ask the WQI Clerk whether a newer version applies before you sign anything.

Related guides

• What an I/A system costs and how the grants stack
• How to apply for the county and state grants, step by step
• Cesspool rules: replacements, renovations, new homes and selling

Other town guides

• Southampton
• East Hampton
• Brookhaven
• Riverhead and Southold