ARPA Funding Guide for "Distressed" Utilities

The North Carolina General Assembly appropriated $1.69 billion from the state’s allocation of the American Rescue Plan Act (ARPA) for drinking water, wastewater, and stormwater investments.

The deadline for the Spring 2022 round of funding is May 2nd, 5:00 PM

This guide is to assist "distressed" utilities navigate the application process for the Spring 2022 round of American Rescue Plan Act (ARPA) funding for water and wastewater construction projects. Awards may be determined as early as July. Learn more about the Viable Utility Reserve and its identification criteria for distressed systems

Water and wastewater utilities designated as distressed are eligible to apply for ARPA funds through the Viable Utility Reserve (VUR). The VUR must expend $353M to distressed units by December 30th, 2026.

Your local water system has been designated as distressed by the Department of Environmental Quality's Division of Water Infrastructure.

Through this designation, the water system is eligible to apply for ARPA funding through the Viable Utility Reserve - $353M has been set aside specifically for distressed units.
 

Learn more about the Viable Utility Reserve and its identification criteria for distressed systems 

As displayed below, the purpose of ARPA funding through the Viable Utility Reserve is to award "Grants for water and wastewater systems that have been designated as distressed by the State Water Infrastructure Authority and the Local Government Commission, for the purposes set forth in subdivisions (1) through (5) of G.S. 159G-32(d)."  

Meaning your utility can apply for ARPA funds to achieve the following: 
(1) Provide physical interconnection and extension of public water or wastewater infrastructure to provide regional service. 
(2) Rehabilitate existing public water or wastewater infrastructure. 
(3) Decentralize an existing public water system or wastewater system into smaller viable parts. 
(4)  Fund a study of any one or more of the following: a. Rates. b. Asset inventory and assessment. c. Merger and regionalization options. 
(5) Fund other options deemed feasible which result in local government units generating sufficient revenues to adequately fund management and operations, personnel, appropriate levels of maintenance, and reinvestment that facilitate the provision of reliable water or wastewater services. 
To assist utilities in applying for ARPA funds, the Division of Water Infrastructure is hosting a series of trainings from February 21st - March 3rd. Please note that there is no cost to attend the trainings, and the Division is available to meet on an individual basis with your utility if needed.

The Division of Water Infrastructure has posted all ARPA information for utilities, including other funding opportunities, on their webpage.

Recordings of trainings and webinars will also be posted here.
Division staff have made it very clear that they are available to assist utilities in applying for ARPA funds. Please do not hesitate to contact them directly for any questions you may have!

Director of Division of Water Infrastructure:
Shadi Eskaf
shadi.eskaf@ncdenr.gov

Public Information Officer:
Cathy Akroyd
cathy.akroyd@ncdenr.gov

Funding Questions:
Jon Risgaard
jon.risgaard@ncdenr.gov

Viable Utility Reserve:
Victor D'Amato
victor.damato@ncdenr.gov

Wastewater Projects:
Ken Pohlig
ken.pohlig@ncdenr.gov

Drinking Water Projects:
Vincent Tomaino
vincent.tomaino@ncdenr.gov