CWSRF Helene Decentralized Wastewater Treatment Systems (DWTS)

The North Carolina Division of Water Infrastructure (DWI), operating under the North Carolina Department of Environmental Quality (DEQ), administers the Clean Water State Revolving Fund (CWSRF) Helene Decentralized Wastewater Treatment Systems (DWTS) program. This disaster-specific funding initiative was established in response to the damage caused by Hurricane Helene to decentralized wastewater treatment infrastructure across North Carolina communities. The program provides forgivable loans at zero interest with 100% principal forgiveness, effectively functioning as grants, to support the repair, replacement, and resilience improvement of decentralized wastewater treatment systems throughout the state. Total program funding is $22 million, drawn from Supplemental Appropriation Helene Major Disaster/Catastrophic Disaster (SA-HMW) funds allocated through the State Revolving Fund. Eligible applicants include units of local government, nonprofit water and wastewater corporations, Community Development Finance Institutions (CDFIs), and nonprofits that provide financing assistance to homeowners for the repair or replacement of decentralized wastewater treatment systems in North Carolina. The program targets projects that improve the resilience of decentralized wastewater treatment systems to flooding, assess the potential to connect homes served by decentralized systems to centralized wastewater treatment systems, or fund such connections. Additionally, access to repair and replacement of decentralized wastewater treatment systems is an eligible use of funds. Award maximums are determined based on the applications received rather than a fixed ceiling, allowing flexibility in how the $22 million in total funding is distributed across qualifying projects. Applications must include comprehensive narratives with supporting documentation, a priority rating system score sheet, affordability or handwritten affordability calculations, a financial information form, current water and sewer rate sheets, a fund transfer certification, and an application resolution by the governing body of the applicant. These components are designed to enable the Division to evaluate each project in terms of prioritization criteria established by the State Water Infrastructure Authority. Cost sharing or matching funds are required as a condition of the award, though the specific matching percentage or amount is determined on a project-by-project basis. The application deadline is March 2, 2026, and this is a one-time funding opportunity with a fixed deadline. Multiple deadlines may apply for different funding rounds. All funded projects must expend awarded funds within five years or by December 2031, whichever comes first. After the deadline for each funding round, the Division reviews all applications and assigns priority rating points based on the criteria described in the program guidance. Projects are then ranked in priority point order and presented to the State Water Infrastructure Authority for final selection and award decisions. Specific compliance requirements apply to all funded projects, including SRF federal crosscutter requirements such as Engineering Report approval, Environmental Review, federal and state procurement requirements, American Iron and Steel requirements, and Davis-Bacon Wage requirements. These crosscutters apply to the entire project scope. Notably, Build America, Buy America (BABA) Act requirements do not apply to SA-HMW funds under this program. Procurement must comply with both federal and state law. A webinar recording and presentation slides on SRF Helene funding are available through the North Carolina DEQ website for additional guidance and information about the application process and program requirements.

Applications are scored using a priority rating system established by the State Water Infrastructure Authority, so applicants should carefully complete the priority rating form and provide thorough documentation to maximize their score. Ensure comprehensive narratives are well-supported with documentation as this is the primary basis for evaluation. Note that while these are technically loans, they carry zero interest with 100% principal forgiveness. BABA Act requirements do not apply to SA-HMW funds, which may simplify procurement for certain materials. All projects must comply with federal crosscutters including Davis-Bacon wages and American Iron and Steel requirements, so factor these into project budgets and timelines from the outset.