State Announces $253M for Drinking Water, Wastewater, and Stormwater Projects Statewide

Governor Roy Cooper announced today that communities statewide will receive more than $253 million in drinking water and wastewater infrastructure funding and stormwater construction grants to help pay for 70 projects in 30 counties statewide, including 51 construction projects. The awards include emerging contaminants (PFAS) funding and funding for lead service line inventories and replacements.

"Strong water and wastewater systems are vital for safe drinking water and economic development," said Governor Cooper. "Thanks to federal funding from the Biden-Harris Administration and state appropriations we’ve made historic investments to rebuild and replace aging systems, especially in rural communities, which will make our state stronger."

“Replacing aging infrastructure and adding the capacity to remove forever chemicals from drinking water benefits the health and pocketbooks of North Carolinians,” said DEQ Secretary Elizabeth S. Biser. “Funding these projects supports the future success of communities across our state.”

Notable projects include:

• Fayetteville Public Works Commission will receive $30,000,000 in Drinking Water State Revolving Fund funds and Bipartisan Infrastructure Law (BIL) Drinking Water-Emerging Contaminant funds for a project featuring construction of a Granulated Activated Carbon (GAC) facility for treatment of PFAS.
• Neuse Regional Water and Sewer Authority (Lenoir County) will receive $2,160,000 in BIL Drinking Water State Revolving Fund Emerging Contaminants funds for a construction project featuring PFAS treatment.
• The Town of Beech Mountain (Avery and Watauga Counties) will receive $10,000,000 in Drinking Water State Revolving Fund funds for a Water System Improvement Project. 
• Junaluska Sanitary District (Haywood County) will receive $9,495,104 in Drinking Water State Revolving Fund funds for a Low-Pressure Water Line Rehabilitation Project.
• The City of Asheboro (Randolph County) will receive $500,000 in Bipartisan Infrastructure Law (BIL)-Drinking Water State Revolving Fund funds for the W. L. Brown Water Treatment Plant Emerging Contaminant (PFAS) Planning Study.
• The City of Sanford (Lee County) will receive $5,028,395 in State Waste Water Reserve and Clean Water State Revolving Fund funds for the Sanford Third Street Area Sewer Rehabilitation Project. 
• The Town of Ayden (Pitt County) will receive $1,400,000 in Community Development Block Grant- Infrastructure program funds for the Woodcrest Sanitary Sewer Improvements Project.
• The City of Eden (Rockingham County) will receive $7,203,212 in Clean Water State Revolving Fund funds for the City of Eden North Basin Repairs Project.
• Gates County, designated distressed, will receive $1,305, 333 in Clean Water State Revolving Fund funds for the Buckland School Wastewater Improvements Project and $2,816,052 for the Cooper School Wastewater Improvements Project.
• The Orange Water and Sewer Authority (Orange County) will receive $3,245,000 in Bipartisan Infrastructure Law (BIL) Drinking Water State Revolving Fund Lead Service Line Replacement loans to replace lead service lines and comply with the Lead and Copper Rule Revisions.
• The following local government units designated as distressed by the State Water Infrastructure Authority and the Local Government Commission will receive Asset Inventory and Assessment grants from the Viable Utility Reserve, considered a vital step in planning and inventorying that can lead towns on a path to future viability: the Towns of Creswell, Denton, Morven, Ossipee, Rich Square and Snow Hill, along with Gates County, McDowell County and Swan Quarter Sanitary District. 

The Division reviewed 221 eligible applications from 65 of North Carolina’s 100 counties, requesting $2.64 billion. The State Water Infrastructure Authority approved the awards during its July 16 meeting. A list of all projects selected for funding is available on the Department of Environmental Quality website.

Funding this round came from the Drinking Water (DWSRF) and Clean Water (CWSRF) State Revolving Funds, including the Bipartisan Infrastructure Law DWSRF-Emerging Contaminants fund (BIL DWSRF-EC), and the Bipartisan Infrastructure Law DWSRF Lead Service Line Replacement fund (BIL DWSRF-LSLR), the Drinking Water and Wastewater State Reserves, the Viable Utilities Reserve (VUR, for Asset Inventory and Assessment projects), the Community Development Block Grant-Infrastructure (CDBG-I) program and the Local Assistance for Stormwater Infrastructure Investments (LASII) fund (for construction projects). Projects funded with Viable Utility Reserve funds are subject to approval by the Local Government Commission.

The State Revolving Funds provide low-interest loans and Principal Forgiveness loans. Funding from the CDBG-I program provides grants to fund wastewater and drinking water projects in areas that meet the U.S. Housing and Urban Development low-to-moderate income threshold. Applications for addressing emerging contaminants (PFAS) and for identifying and replacing lead service lines were also accepted.

The Authority is an independent body with primary responsibility for awarding federal and state funding for water infrastructure projects. Other responsibilities include establishing priorities for making loans and grants, 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.

The application period for the upcoming Fall 2024 funding round for drinking water, wastewater, lead service line and emerging contaminants projects opens on July 30 and ends on Sept. 30 at 5 p.m. Funding application training for this round will be provided through five in-person statewide sessions July 30 through Aug. 9, with a virtual option available and a recorded training session to be available on the Division website. The training session time and locations schedule is available on the DEQ website.