NC Water Resources CongressAnnual MeetingRaleigh, NCOctober 30, 2014

State WaterInfrastructure Update:

The State of NC and Water, Wastewater and Stormwater

OutlineOverview of Recent Funding Program Changes

StateFederal

Funding ProgramsState Water Infrastructure Authority

Overview of Recent Funding Program Changes

N.C. Water and Wastewater Infrastructure Funding –Prior to 2013 Budget Bill

Golden LEAF

Rural Economic

Development Center

Clean WaterManagemen

tTrust Fund

Dept. ofEnvironment and NaturalResources

Dept. ofCommerce

• Capacity/ Planning Grant• Supplemental

Grants• Economic

Infrastructure Grants

• Wastewater Infrastructure Grants

Public Water Supply

• Drinking Water State Revolving Fund Loans

• General Revolving Loans

• Technical Assistance Grants

• Emergency Loans

• High Unit Cost Grants

Infrastructure Finance Section

• Clean Water State Revolving Fund Loans

• General Revolving Loans

• Technical Assistance Grants

• Emergency Loans

• High Unit Cost Grants

Division of Community Assistance• CDBG

Infrastructure Funds

Commerce Finance Center• CDBG

Economic Development Funds

• Industrial Development Fund

N.C. Water and Wastewater Infrastructure Funding – Current Framework

Golden LEAF

Rural Economic

Development Center

Clean WaterManagemen

tTrust Fund

Dept. ofEnvironment and NaturalResources

Dept. ofCommerce

• Capacity/ Planning Grant• Supplemental

Grants• Economic

Infrastructure Grants

• Wastewater Infrastructure Grants

Water and Wastewater Infrastructure Funding

FEDERAL FUNDS• State Revolving Fund (SRF)

Loans• Community Development Block

Grant-Infrastructure (CDBG-I) Grants

STATE FUNDS• General Revolving Loans• Emergency Loans• Technical Assistance Grants• High Unit Cost Grants

Division of Water Infrastructure

Division of Community Assistance• CDBG

Infrastructure Funds

Commerce Finance Center• CDBG

Economic Development Funds

• Industrial Development Fund

NEW

Appropriation

Session Law 2013-360 (Budget Bill)Created new Division of Water Infrastructure to

consolidate fundingFormer Infrastructure Finance Section (DWQ)Former Public Water Supply Section Loans & Grants (DWR)From Dept. of Commerce – Community Development Block

Grant-Infrastructure ProgramGoal to better integrate/synchronize funding sourcesCreated State Water Infrastructure Authority (SWIA)

Federal Clean Water Act ChangesMade changes to Clean Water SRF program

As a result of 2014 WRRDA (Water Resources Reform and Development Act of 2014)

Evaluate project water and energy efficiency aspects, as well as cost and effectiveness

Max loan term up to 30 years or project useful life (NCGS modification needed to allow increase from 20 to 30 years)

Develop and implement a fiscal sustainability planBuy American for iron and steel products

Funding Programs

Funding ProgramsFederal Clean Water State Revolving FundFederal Drinking Water State Revolving FundFederal Community Development Block Grant –

InfrastructureState Grant Programs

Federal Clean Water SRFLow Interest LoansEligible Project Types

Wastewater Treatment and CollectionEnergy Efficiency (at treatment works)Reclaimed WaterStormwater BMPs and Stream Restoration

Typically $50 Million per Round2 rounds per year

0% Interest for Green Projects (stormwater, energy efficiency)

0% Interest for Rehabilitation ProjectsMust meet certain disadvantaged community qualifications

Federal Drinking Water SRFLow Interest LoansEligible Project Types

Drinking Water Source and TreatmentDrinking Water Transmission & DistributionDrinking Water StoragePlanning and Design

One Round per Year – Approx. $70 Million

Federal CDBG-InfrastructureLow to moderate income areasNon-entitlement communities

Excludes 23 larger cities / townsExcludes 3 urban counties

Water and Sewer InfrastructureIncreased to $25 millionAdministration transferred to DENRPriorities established by State Water Infrastructure

Authority

State Grant ProgramsPurpose/emphasis

Specifically to “meet the project needs of rural, economically distressed local governments”

AmountsSFY 2013 – $3.5 millionSFY 2014 and recurring – $5 million

EligibilityTier 1 and 2 countiesHigh Unit Cost threshold (W&S rates/MHI = at least 1.5%)

Grants for wastewater and drinking water; not stormwater

State Water Infrastructure Authority

State Water Infrastructure Authority (SWIA) BackgroundCreated by Session Law 2013-360 (Budget Bill)9 members

2 appointed by Governor, 2 by Senate, 2 by House3 are staff of NC government agencies

Division of Water InfrastructureDepartment of CommerceOffice of State Treasurer

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SWIA Member Designations(2 year appointments by Governor, Senate and House)

1 Director of Division of Water Infrastructure; Serves as Authority Chair

2 Dept. of Commerce / Familiar with Water or other Infrastructure Improvements

3 Local Government Commission Staff Member (Office of the State Treasurer)

4 Professional Engineer in Private Sector Familiar with WW Systems Governor

5 Knowledgeable about Federal Funding for WW and W Systems Governor

6 Knowledgeable about Urban WW or W Systems Senate

7 Knowledgeable about Rural WW or W Systems Senate

8 Rural County Commissioner/Resident Knowledgeable about Public Health Services Speaker

9 Familiar with WW, W and Stormwater Issues & State Funding Sources Speaker

SWIA Powers & Duties1. Review funding recommendations by Division of

Water InfrastructureDetermine the rank of applicationsSelect the applications that are eligible

2. Establish priorities for funding, consistent w/ federal law

3. Review the criteria for making loans and grants4. Develop guidelines for making loans and grants5. Develop a water infrastructure master plan

SWIA Powers & Duties 6. Assess role of the State in funding water infrastructure7. Analyze adequacy of projected funding8. Recommend ways to maximize the use of funding

resources9. Review the application of management practices 10. Assess the role of public-private partnerships11. Assess the application of the river basin approach to

utility planning and management 12. Assess the need for a "troubled system" protocol

SWIA Annual ReportDue to General Assembly on Nov. 1To include activities, findings, recommendations,

legislative proposalsKey issues highlighted in 2014 Report

Significant gap between infrastructure needs and available funding

For grant funds, base eligibility on affordability rather than just county tiers and percentage of MHI spent on water/sewer

Broaden use of grant funds to encourage proactive management and financing

2014 SWIA Funding Decisions

Funding Program

Number Applications

Received

Number Projects

Approved

Amount of Funding

Requested

Amount of Funding

Approved

Federal CWSRF 74 33 $228 M $92 M

Federal DWSRF 66 32 $282 M $105 M

Federal CDBG-I 132 15 $185 M $26 M

State Grants – Wastewater and Drinking Water HUC and TAG

56 15 $24 M $3 M

Totals 164 41 $218.5 M $63.44 M

Division Contact Information

Website:http://portal.ncdenr.org/web/wi/

Division of Water Infrastructure Contacts

Kim Colson, PE Division Director 919.707.9177 Kim.Colson@ncdenr.gov

Seth Robertson, PECWSRF and State WW Programs

919.707.9175 Seth.Robertson@ncdenr.gov

Vince Tomaino, PEDWSRF and

State Drinking Water Programs

919.707.9058 Vincent.Tomaino@ncdenr.gov

Julie Haigler Cubeta CDBG-I Program 919.707.9189 Julie.Cubeta@ncdenr.gov