The North Carolina Department of Environmental Quality’s Division of Water Infrastructure announced today that 30 communities statewide will receive more than $34 million in funding for projects to 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.
The awards were approved by the State Water Infrastructure Authority during their meeting Tuesday and are contingent on receiving the federal funds from EPA.
“For the first time, we have significant funding available specifically to address the issue of lead service lines and our goal is to use this investment to replace every affected line in the state,” said Secretary Elizabeth S. Biser. “These awards are a strong first step toward that goal.”
Most of the eligible applications awarded in this first round will address vital inventorying of lead service lines, a crucial first step in protecting public health and reducing lead in drinking water. Of the 40 approved applications, two are to replace known lead service lines (Cape Fear Public Utility Authority and Town of Granite Falls), six are to inventory and replace lead service lines when found (Asheville, Hendersonville, Jonesville, Newton, Troy, West Jefferson) and 32 of the applications are for inventorying lead service lines. Applicants received a mix of low interest loans and principal forgiveness.
The Bipartisan Infrastructure Law invests $15 billion nationwide towards Lead Service Line Replacement. With this investment, 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.
Applications for these Lead Service Line Replacement funds are open year-round and will be awarded in four State Water Infrastructure Authority meetings each year (Sept. 19, 2023; Dec. 12, 2023; Feb. 2024 and April 2024). The first year of Lead Service Line Replacement (LSLR) 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 over the past several weeks 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.
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. To learn more about the State Water Infrastructure Authority: https://deq.nc.gov/about/divisions/water-infrastructure/state-water-infrastructure-authority