The URL can be used to link to this page

Home My WebLink AboutDWI SWIA Review WQC May 2017Department of Environmental Quality May 10, 2017 State Water Infrastructure Authority Division of Water Infrastructure General Assembly Legislation in 2013 •Created Division of Water Infrastructure •Consolidated major water-related infrastructure funding programs •One department (NCDEQ) and one division •Created 9-member State Water Infrastructure Authority •Qualifications and knowledge •Wastewater professional engineer •Federal water/wastewater funding •Urban water/wastewater systems •Rural water/wastewater systems •Rural county commissioner/resident; public health services experience •Water, wastewater, stormwater issues and state funding sources •12 tasks Department of Environmental Quality Some of the Authority’s Tasks •Establish criteria and set priorities for project funding •Distribute loan and grant funds •Assess and make recommendations on the role of the State in the development and funding of water infrastructure •Maximize the use of current funding resources –federal, state, local –and ensure coordinated use •Review the application of emerging best practices in utility management •Develop a master plan to meet the State's water infrastructure needs Department of Environmental Quality State Water Infrastructure Authority •Synchronization of funding programs •Priority systems •Fixing existing infrastructure first •Benefits (environmental / public health) •Proactive system management •Financial •Utility best practices •Funding long-term solutions •Stretching grants funds •Recommended changes to funding statutes •Affordability (replaced High-Unit Cost) •Asset Inventory and Assessment Grants •Merger / Regionalization Feasibility Grants 4 Department of Environmental Quality Water Infrastructure Funding Programs Department of Environmental Quality •State Revolving Funds (SRF) •Clean Water SRF •Drinking Water SRF •CDBG-Infrastructure •Non-entitlement areas only •Water and sewer •State Programs •Projects –loans and grants •Asset Inventory and Assessment grants •Merger Regionalization Feasibility grants Summary of January 2017 Funding Decisions Department of Environmental Quality Project Funding Program Requested in Complete Apps. Funding Amount No. of Apps. Funded CDBG-I grants $57.9 M $27.0 M 19 DW State Reserve loans and grants $89.4 M $49.1 M 25 DWSRF loans $92.6 M $56.0 M 12 WW State Reserve loans and grants $111.3 M $89.0 M 24 CWSRF loans $112.9 M $73.9 M 8 Asset Inventory and Assessment grants $22.8 M $8.3 M 65 Merger/Regionalization Feasibility grants $150,000 $150,000 3 Total $303.5 M 156 Department of Environmental Quality Projects Awarded by State Water Infrastructure Authority since 2013 Water Infrastructure Needs •Drinking water systems needs are $10-$15 billion over next 20 years* •Wastewater systems needs are $7-$11 billion over next 20 years* •For most funding sources, users pay to meet capital needs (e.g., loans, bonds, reserves, etc.) (*) Environmental Finance Center at the University of North Carolina’s School of Government (EFC) evaluation of needs surveys 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 $ Millions (2014 dollars)Public Spending on Water Infrastructure, 1956 to 2014 State and Local Spending for Infrastructure, Net of Federal Grants and Loan Subsidies, 1956–2014 Federal Grants and Loan Subsidies for Infrastructure, 1956–2014 Federal grants and loans make up only 4% of water infrastructure spending in 2014 Source: CBO's March 2015 report Public Spending on Transportation and Water Infrastructure, 1956 to 2014. Operating as an Enterprise System? Department of Environmental Quality Source: UNC-CH Environmental Finance Center Master Plan Vision The state will best be able to meet its water infrastructure needs by ensuring individual utilities are, or are on a path to be, viable systems A viable system is one that functions as a long-term, self-sufficient business enterprise, establishes organizational excellence, and provides appropriate levels of infrastructure maintenance, operation, and reinvestment that allow the utility to provide reliable water services now and in the future Best Practices in Utility Management Department of Environmental Quality Infrastructure management •Proactive approaches •Life-cycle costs •Risk management Financial management •Sufficient revenue generation for O&M, renewal/replacement, reserves •Permanent local funding solutions Organizational management •Long-term nature of system needs •Governing boards prioritize the most critical projects Steps Toward Achieving the Vision Department of Environmental Quality Resource partnerships •State agencies •Key organizations Prioritized funding •Targeted to specific needs that create permanent solutions •Linked to utility viability Resources andtools •Available today,many at no cost •Appendix B –Resource Toolbox •Webinars, videos •Publications Master Plan Take-Aways •Vision is for viable water and wastewater utilities across NC •Organizational and financial management needs are as critical as infrastructure/construction needs •Governing boards must make long-term decisions about water and wastewater infrastructure spending •Investing in their economic future •Beyond 2-to 4-year terms Department of Environmental Quality Master Plan Take-Aways •Target limited grant funds for permanent solutions and proactive system management •Merger Regionalization Feasibility grants •Asset Inventory and Assessment grants •Project selection •Strengthen partnerships •Local discussion of water infrastructure issues Department of Environmental Quality Division of Water Infrastructure http://portal.ncdenr.org/web/wi/home State Water Infrastructure Authority http://portal.ncdenr.org/web/wi/authority