State Water Infrastructure Authority Meets to Advance Major Helene Recovery Projects

The State Water Infrastructure Authority convened on Dec. 10 for a day-long meeting, taking up a packed agenda centered on funding decisions for communities recovering from Hurricane Helene and expanding statewide drinking water and wastewater resilience.

Key agenda items included funding awards from the State Revolving Funds’ supplemental appropriations they received from the Environmental Protection Agency (EPA) for Helene, Milton, and the Hawai‘i wildfires; lead service line replacement grants through the Drinking Water State Revolving Fund; and allocations for a Clean Water State Revolving Fund pilot program focused on decentralized wastewater systems. All are part of rolling application programs with upcoming cut-off dates published by the Division of Water Infrastructure.

The meeting came one day before Governor Josh Stein and the Department of Environmental Quality announced $270 million in new awards to repair and upgrade water and wastewater systems in 26 western counties struck by Hurricane Helene. The funding covers 58 projects — spanning drinking water, sewer, and septic systems — and represents the second major allocation under federal supplemental appropriations.

“Hurricane Helene laid bare North Carolina’s need to upgrade its water infrastructure,” Stein said. “Making these investments today makes us more resilient in the face of future disasters.”

DEQ Secretary Reid Wilson said water utilities across the mountains were significantly strained by Helene. “These awards will help communities rebuild to ensure that systems are less vulnerable to future flooding,” he said.

Among the local awards highlighted:

• Chimney Rock Village (Rutherford County) will receive more than $11.8 million for a drinking water resiliency project, a new wastewater treatment plant and sewer improvements, and sewer extensions for homes currently on septic.

• Old Fort (McDowell County) will receive $15 million, split between drinking water and sewer system resiliency upgrades.

• The Western Piedmont Council of Governments will receive $7.5 million to repair 300 Helene-damaged septic systems across 11 mountain counties.

• Burnsville (Yancey County) will receive more than $13 million for water distribution upgrades and sewer line improvements.

• Crossnore (Avery County) will receive more than $10.3 million for water and wastewater resiliency improvements.

  
  

The Authority’s decisions this week follow a rapid funding timeline. DEQ previously awarded $86 million at its Sept. 17 meeting for applications submitted by Aug. 1. The $270 million awarded this week covers applications received by Nov. 3. Additional deadlines run through March 2, 2026, with approvals scheduled for upcoming Authority meetings in February and April.

The SRF Helene program — created through the 2025 American Relief Act — provides zero-interest loans and principal-forgiveness options for drinking water and clean water projects. Eligible recipients include local governments, nonprofit water corporations, and, for drinking-water projects, investor-owned utilities. Applicants must document Helene-related impacts and incorporate long-term flood-resilience measures.

Clean Water SRF Helene dollars also cover septic system repair and the conversion of homes from septic to public sewer. Funding is available to local governments, nonprofit water providers, Community Development Financial Institutions, and nonprofits that finance homeowner septic repairs.

Wednesday’s meeting also included awards for $9 million in lead service line inventory and replacement projects and $750,000 for septic-system repair under a Clean Water SRF pilot program.

The meeting comes against a backdrop of substantial federal investment. In September, EPA Region 4 announced $337 million for North Carolina to support water-system resiliency and environmental recovery efforts after Helene. The announcement included $276 million under the Clean Water Act, $409 million earlier that summer for drinking-water improvements, and $61 million through the Resource Conservation and Recovery Act for hazardous-waste and debris cleanup.

EPA Regional Administrator Kevin McOmber said at the time that the funds were critical as the state works to rebuild stronger systems that can “withstand severe weather.”

The Division of Water Infrastructure continues to offer application training and informational sessions for communities seeking SRF Helene support, with both in-person and virtual resources available.