NC Water Resources Congress Annual Meeting Raleigh, NC October 30, 2014 State Water Infrastructure Update: The State of NC and Water, Wastewater and Stormwater

Outline Overview of Recent Funding Program Changes State Federal Funding Programs State 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 Water Management Trust Fund Dept. of Environment and Natural Resources Dept. of Commerce 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 Water Management Trust Fund Dept. of Environment and Natural Resources Dept. of Commerce 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 (Budget Bill) Created new Division of Water Infrastructure to consolidate funding Former Infrastructure Finance Section (DWQ) Former Public Water Supply Section Loans & Grants (DWR) From Dept. of Commerce – Community Development Block Grant-Infrastructure Program Goal to better integrate/synchronize funding sources Created State Water Infrastructure Authority (SWIA)

Federal Clean Water Act Changes Made 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 plan Buy American for iron and steel products

Funding Programs

Federal Clean Water State Revolving Fund Federal Drinking Water State Revolving Fund Federal Community Development Block Grant – Infrastructure State Grant Programs

Federal Clean Water SRF Low Interest Loans Eligible Project Types Wastewater Treatment and Collection Energy Efficiency (at treatment works) Reclaimed Water Stormwater BMPs and Stream Restoration Typically $50 Million per Round 2 rounds per year 0% Interest for Green Projects (stormwater, energy efficiency) 0% Interest for Rehabilitation Projects Must meet certain disadvantaged community qualifications

Federal Drinking Water SRF Low Interest Loans Eligible Project Types Drinking Water Source and Treatment Drinking Water Transmission & Distribution Drinking Water Storage Planning and Design One Round per Year – Approx. $70 Million

Federal CDBG-Infrastructure Low to moderate income areas Non-entitlement communities Excludes 23 larger cities / towns Excludes 3 urban counties Water and Sewer Infrastructure Increased to $25 million Administration transferred to DENR Priorities established by State Water Infrastructure Authority

State Grant Programs Purpose/emphasis Specifically to “meet the project needs of rural, economically distressed local governments” Amounts SFY 2013 – $3.5 million SFY 2014 and recurring – $5 million Eligibility Tier 1 and 2 counties High 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) Background Created by Session Law (Budget Bill) 9 members 2 appointed by Governor, 2 by Senate, 2 by House 3 are staff of NC government agencies Division of Water Infrastructure Department of Commerce Office of State Treasurer

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

SWIA Powers & Duties 1. Review funding recommendations by Division of Water Infrastructure Determine the rank of applications Select the applications that are eligible 2. Establish priorities for funding, consistent w/ federal law 3. Review the criteria for making loans and grants 4. Develop guidelines for making loans and grants 5. Develop a water infrastructure master plan

SWIA Powers & Duties 6. Assess role of the State in funding water infrastructure 7. Analyze adequacy of projected funding 8. Recommend ways to maximize the use of funding resources 9. Review the application of management practices 10. Assess the role of public-private partnerships 11. Assess the application of the river basin approach to utility planning and management 12. Assess the need for a "troubled system" protocol

SWIA Annual Report Due to General Assembly on Nov. 1 To include activities, findings, recommendations, legislative proposals Key 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 CWSRF7433 $228 M $92 M Federal DWSRF6632 $282 M $105 M Federal CDBG-I13215 $185 M $26 M State Grants – Wastewater and Drinking Water HUC and TAG 5615 $24 M $3 M Totals16441 $218.5 M $63.44 M

Division Contact Information

Website: Division of Water Infrastructure Contacts Kim Colson, PE Division Director Seth Robertson, PE CWSRF and State WW Programs Vince Tomaino, PE DWSRF and State Drinking Water Programs Julie Haigler CubetaCDBG-I