Canalway Grant Program

Examples of Eligible Projects

Eligible canal capital project expenses include, but are not limited to the following: Constructing new boat launches, buildings, trail sections, trail connections or structures; Creative placemaking, wayfinding, and signage concepts; Substantial renovations or preservation of existing buildings, trail segments, or other structures, including reconfigurations (removal or construction of walls, ceilings and flooring, windows, window frames, hulls); Site preparation and improvements associated with a project (excavation, demolition, roadways, sidewalks, exterior lighting, sprinkler systems, utility hook-ups); Acquisition of furnishings, fixtures, machinery and equipment with a useful life in excess of five years including signs and interpretive exhibits, constructing or rehabilitating docks or bulkheads for the purpose of public access to and from the Canal System; Hazardous waste clean-up associated with a project, restoration of floodways, stream embankments or other improvements.

Ineligible Activities

• Grant administration and pre-development costs cannot exceed 10% of the grant award amount.
• Use of grant funds for land acquisition is prohibited (however the costs of acquisition may be used as a local match).
• Grant funds cannot be used to cover operating or maintenance expenses.

Program Funding and Match Requirements

• Grant awards range between $25,000 and $150,000.
• Grant administration and pre-development costs cannot exceed 10% of the grant award amount (although these costs may be used as part of the applicant match with no cap).
• Applicants must demonstrate a 1:1 match which will be required on all grants and must be fully documented. For example, if applicants are requesting $100,000 then the applicant would need to demonstrate a viable match of $100,000 (for a minimum project cost of $200,000). NYS Canal Corporation and/or NYPA funding may not be used to meet applicant match requirements, but grant and/or other funding from other State, Federal, or private entities are eligible. Common and allowable types of applicant match include one or a combination of the following:
  • Grants: Eligible matching funds include federal, local, private and other agency or state funding.
  • Force Account (Payroll of applicant): Itemize according to job title or job assignment (on project). At the time of the reimbursement request, grant recipients will be required to document time worked, tasks, pay ratio and payment (including components and percentage of fringe benefit rate).
  • Professional Services: The value of design, engineering, pre-development, or other services provided by professional and technical personnel and consultants.
  • Supplies and Materials: The current market value of items warehoused (not yet installed). 
  • Volunteer Labor: Skilled and professional labor can be computed at the job rate. The value for labor (unskilled labor and work performed by professionals or skilled laborers in an area outside of their area of expertise) of an adult (18 and over) donating time to a project may be computed up to the amount identified as the Value of Volunteer Time for New York State. (For example, a lawyer donating legal services may compute the value based on the standard billing rate, but the value for the same lawyer donating time painting walls will be computed up to the amount identified as the Value of Volunteer Time for New York State).
  • Equipment Usage: Compute the value according to its fair market rental value in project location.
  • Real Property: The value of all property acquired, donated or converted from other purposes should be included in the project schedule. One year retroactivity applies to all three categories.
• Grant funds will be provided on a reimbursement basis ONLY. Receipts, invoices and other documentation must meet the requirements of the Canal Corporation.
• Reimbursement will only be provided for projects or portions of a project initiated after the date of the grant award letter from the Canal Corporation.
• Projects may be initiated prior to receipt of the award letter, and matching expense documentation will be accepted for expenses up to one year prior to the date of the award letter, but reimbursement will only be provided for portions of the project initiated after the date of the award letter.
• Reimbursement payments will not be issued prior to final contract execution.
• There is a reimbursement retainage requirement on all projects whereas twenty percent (20%) of the awarded funding will be retained for reimbursement pending the project being deemed complete.

Site Ownership and Permitting Requirements

• Projects located on land owned by the applicant and/or Canal Corporation will be prioritized.  Applicants who do not have site ownership must submit (1) proof of site control (e.g. a lease) and (2) a letter of support from the property owner demonstrating support for the proposed project. Those applying for projects on Canal Corporation property must reach out to Canal Corporation’s Real Property Department to ensure the site is eligible for such a project. Correspondence should be submitted as part of the application process. Regional Real Property Coordinator contact information is available here: https://www.canals.ny.gov/Real-Property-and-Permits/Permits
• Work on NYS Canal Corporation land requires both a Use and Occupancy Permit AND a Work Permit specific to the requested activities. All permits, including other required federal, state, and municipal permits, must be secured prior to implementing grant funded activities, including those activities related to the match. All applicants should anticipate a minimum of 4 weeks for initial review of permit applications by the NYSCC. Applicants must contact the NYS Canal Corporation’s Real Property Department at (518) 449-6000 to ensure the site is eligible for the proposed project in advance of grant application.

Successful Applicant Requirements

• The applicant is responsible for obtaining all required permits and approvals from federal, state, and local agencies, such as the U.S. Army Corps of Engineers, NYS Department of Environmental Conservation and NYS State Office of Parks, Recreation and Historic Preservation, and any others that may be required by the NYS Canal Corporation.
• For projects proposed by a municipality or other local unit of government, the awardee will be lead agency for purposes of the State Environmental Quality Review Act (SEQRA) or will be responsible for initiating lead agency designation procedures, if there are other involved agencies. For new projects initiated after receipt of the grant award letter, the Canal Corporation shall be an involved agency. The municipality shall meet the procedural and substantive requirements of SEQRA and all other state, federal or local law, rules, regulations, ordinances, codes and requirements.
• For non-profit organizations, the Canal Corporation will determine whether it will proceed as lead agency, initiate the lead agency designation process, or refer lead agency to the local municipality. If the project is a Type I or Unlisted Action, the Environmental Assessment Form will be required prior to contract for award. If a Determination of Significance has been established, documentation will be required prior to contract for award.

General Operating, Liability and Financial Considerations for Awardees

• Canal Corporation assistance toward the costs of the project shall not exceed the amount awarded to the applicant. The Canal Corporation shall not be responsible for any increases in the total project costs beyond the grant approval amount indicated in the award letter from the Canal Corporation.
• Maintenance and operation of facilities receiving grants will be the responsibility of the applicant. All successful applicants will be required to enter into a formal contract and agree to other legal documents with the Canal Corporation to ensure the long-term protection of the property and restrict changes in the use of the property. A preservation covenant or conservation easement must be conveyed for work involving historic resources.
• The liability for projects constructed, owned and maintained by awardees on real property-- not under the jurisdiction of the Canal Corporation--will remain with the grant awardees. Projects on Canal Corporation real property must be designed and constructed with Canal Corporation approval and in accordance with engineering and design standards of the Canal Corporation. 
• Projects must provide for public safety and must not interfere with Canal operations or navigation. Projects will be required to meet all applicable insurance requirements. Projects on Canal Corporation real property may require the purchase, lease or permitting of the real property from the Canal Corporation, in accordance with all applicable laws and regulations and the Canal Corporation's "Canal Real Property Management Policy" and standard operating procedures.  Operation and maintenance in perpetuity by the applicant is required and an agreement stating so will be required.
• Every project must comply with all applicable local, state and federal laws, rules, regulations, requirements, ordinances and codes.