Friday, December 15, 2023

DEQ Awards $13.2 Million in Second Round of Lead Service Line Replacement Funding

The North Carolina Department of Environmental Quality’s Division of Water Infrastructure announced today that 17 water systems statewide will receive $13.2 million in funding for projects to inventory or find and replace lead service lines
Raleigh
Dec 15, 2023

The North Carolina Department of Environmental Quality’s Division of Water Infrastructure announced today that 17 water systems statewide will receive $13.2 million in funding for projects to inventory or find and replace lead service lines. North Carolina has approximately $67 million initially available for lead service line projects through the federal Bipartisan Infrastructure Law, with additional funding available in future rounds. 

"Every North Carolinian deserves access to safe, clean drinking water and this funding will help accomplish that," said Governor Cooper. "We already know what funding like this can do for critical water projects and we look forward to helping more communities across the state.”

The awards were approved by the State Water Infrastructure Authority during its meeting Dec. 12 and are contingent on receiving the federal funds from EPA.

All of the award recipients requested funds to inventory lead service lines, a crucial first step in protecting public health and reducing lead in drinking water. The City of Newton and the Town of Norwood have also been awarded funding to replace lead service lines. Applicants received a mix of zero interest loans and principal forgiveness.

The Bipartisan Infrastructure Law (BIL) invests $15 billion nationwide towards Lead Service Line Replacement. Under BIL, 49% of funds will be provided nationwide to communities as principal forgiveness loans (like grants) to disadvantaged communities and disadvantaged areas, and 51% of funds will be available as low-interest loans. Funding is available for local governments, non-profit water companies and investor-owned water utilities. 

In North Carolina, applications for Lead Service Line Replacement funds are open year-round and will be awarded during four State Water Infrastructure Authority meetings each year. (Tentative dates in 2024: Feb. 20, April 16, July 16 and Sept. 17.) Lead Service Line Replacement funding will be administered according to the Intended Use Plan for the FY2022 BIL DWSRF Lead Service Line Replacement funds. Learn more about the Division’s Lead Service Line Replacement Funding here.

Division staff have been working one-on-one with each of the applicants to help them complete their applications, then scored and ranked the applications according to a Priority Rating System before presenting their recommendations to the State Water Infrastructure Authority for approval during their meeting Dec. 12.

The authority is an independent body with primary responsibility for awarding federal and state funding for water and wastewater infrastructure projects. Other responsibilities include developing a state water infrastructure master plan, recommending ways to maximize the use of available loan and grant funding resources, and examining best and emerging practices. Learn more about the State Water Infrastructure Authority here.

Related Topics: