Application Period for Spring 2023 Division of Water Infrastructure Funding Round

Application Process, Forms, Guidance and Resources

Please note: Applications / forms must be submitted online as instructed in the Application for Funding and in the Project Solicitation Form for Lead Service Line Replacement Funding.

• Applications are accepted either once or twice per year, depending on the funding program.
• Each application includes a priority rating form that evaluates the proposed project in terms of need for the project, environmental benefits, system management, and financial situation. 
• After the deadline for each funding round, the division reviews all applications and assigns priority rating points as described in the guidance based on information provided in the application.
• The division ranks the projects in priority point order and makes recommendations to the State Water Infrastructure Authority.
• The authority is responsible for making final decisions for project funding.
• Spring 2023 Application Training PowerPoint Presentation (updated 3/15/23)
• March 2023 Recording of Training for Funding Applications & Lead Service Line Replacement Project Solicitations

Funding Availability for Spring 2023 Applications

Applications will be considered for the following funding programs in the Spring 2023 funding round:

 • Applications for drinking water and wastewater construction projects will be considered for funding from the State Revolving Funds and the Community Development Block Grant-Infrastructure programs.

• The State Revolving Funds (SRFs) will provide low-interest loans (including principal forgiveness loans) for wastewater and drinking water projects. In addition to the SRF funds typically available, this round will include the use of Bipartisan Infrastructure Law (BIL) general supplemental funds. Applications for addressing emerging contaminants (e.g. PFAS) and for identifying and replacing lead service lines will also be accepted. Local government units and non-profit water corporations (and investor-owned drinking water utilities for drinking water projects) are eligible to apply for up to $25 million in Drinking Water State Revolving Fund loans and up to $35 million in Clean Water State Revolving Fund loans.
• The Community Development Block Grant-Infrastructure (CDBG-I) program will provide grants to fund wastewater and drinking water projects in areas that meet the U.S. Housing and Urban Development low-to-moderate income threshold (LMI). It is available to non-entitlement municipalities and counties and offers grants up to $3 million grants per applicant every three years.

• Applications for stormwater planning projects will be considered for funding from the Local Assistance for Stormwater Infrastructure Investments (LASII) fund. Stormwater planning grants will be available to conduct research or investigative studies, alternatives analyses, the preparation of engineering concept plans or engineering designs, and similar activities intended to help an eligible entity determine the best solutions for the entity’s stormwater quality or quantity issue and to engineer and permit the solutions. Nature-based solutions are allowed. Municipalities and counties (or their regional Council of Government or nonprofit partners) are eligible to apply for up to $400,000 per applicant. The ARPA administration plan for stormwater funding is available on the Division website  .

In addition to the Spring 2023 funding round:

DEQ is seeking interest in Lead Service Line Replacement funding. If interested, complete a project solicitation form.

DEQ will notify you when funding becomes available.

Division of Water Infrastructure Funding Programs 

The division provides low-interest loans and grants for local governments and certain other non-profit entities for water infrastructure through the programs listed below.

Contact us if you need assistance determining which program is the best fit for your project needs!

• Clean Water State Revolving Fund (CWSRF): Provides low-interest loans to local government units to fund wastewater collection and treatment facilities as well as programs associated with estuary and non-point sources.
• Drinking Water State Revolving Fund (DWSRF): Provides low-interest loans to local government units and certain non-profit water corporations for projects to provide safe drinking water.
• Community Development Block Grant – Infrastructure: Provides grants to local government units to address water and wastewater infrastructure needs in HUD qualified low-to-moderate income communities.
• State Wastewater & Drinking Water Reserve Programs: Provides grants for technical assistance and for construction of critical needs for wastewater collection systems, wastewater treatment works, and public water system projects.
• Merger/Regionalization Feasibility Grant Program: Provides grants for studies to evaluate the potential consolidation of two or more systems into one system and the potential physical interconnection with another system for regional wastewater treatment or regional water supply.
• Asset Inventory and Assessment Grant Program: Provides grants for developing asset inventories, condition assessment of critical assets, and other components of a comprehensive asset management programs.
• Viable Utilities Program: Provides funding to build a path toward viable utility systems using long-term solutions for distressed water and wastewater units in North Carolina.
• Local Assistance for Stormwater Infrastructure Investments Program (LASII): Provides grants for construction and planning for stormwater projects to improve or create infrastructure for controlling stormwater quality and quantity.
• New! Lead Service Line Replacement Funding: The Division of Water Infrastructure will be offering funding specifically to identify, inventory, and replace lead service lines and lead connectors throughout water systems. The Division is developing a process by which local governments, non-profit water companies, and investor-owned water utilities can request low-interest loans and principal forgiveness. The process will be announced here and in a webinar in Spring 2023.