Asset Inventory and Assessment Grants

The Asset Inventory and Assessment Grants program is administered through the North Carolina Department of Environmental Quality’s Division of Water Infrastructure as authorized by Session Law 2015-241 and codified under NCGS 159G. The program was established to expand the allowable use of state reserve funding and to encourage water and wastewater utilities to improve operational viability through better asset management and long-term planning. The initiative reflects the state’s emphasis on proactive infrastructure management, particularly for systems that may be financially or operationally vulnerable. The primary purpose of the program is to fund activities that help utilities develop a comprehensive understanding of their infrastructure assets. This includes creating detailed inventories of system components, conducting condition assessments of critical assets, and identifying other key infrastructure elements necessary for effective system management. By supporting these activities, the program aims to enable utilities to make informed decisions about maintenance, repair, replacement, and capital investment planning. The resulting data and analysis are intended to strengthen system sustainability and financial resilience. Funding is provided in the form of grants, with a maximum award of 150000 per recipient over a three-year period. Funds are drawn from either the Wastewater Reserve or the Drinking Water Reserve. These grants are not restricted by affordability criteria, meaning that applicants are not limited in eligibility or award percentage based on financial metrics typically used in other infrastructure funding programs. However, recipients must ensure that project activities align strictly with eligible uses, such as asset inventory development and condition assessments, and must distinguish any ineligible or externally funded activities within their project scope. Eligible applicants include local government units and nonprofit water corporations. These entities must demonstrate the need for asset inventory and assessment activities within their water or wastewater systems. Projects must adhere to established guidance documents provided by the Division, including detailed requirements for scope of work preparation, project milestones, and deliverables. For applicants designated as distressed under NCGS 159G-45, additional requirements apply, including the development of comprehensive asset management plans and capital improvement planning components. The application and project initiation process involves several structured steps. After initial funding selection, recipients must submit a Preliminary Scope of Work outlining project tasks, costs, timelines, and expected outputs. This scope must be approved by the Division before a formal funding offer is issued. Following approval and completion of initial administrative requirements, recipients may begin submitting disbursement requests for eligible project costs. The project must follow a milestone-based schedule, including scope submission, contract execution, draft deliverables, and final closeout within a 24-month period from the Letter of Intent to Fund. Evaluation of proposals is based on alignment with program goals, clarity and feasibility of the proposed scope, and the ability of the project to address identified system challenges. Deliverables must include comprehensive documentation such as GIS data, reports, and presentations to governing bodies. Recipients are also required to submit progress reports regularly and ensure that final outputs are reviewed and approved by the Division. Questions regarding eligibility and application requirements can be directed to Matthew Rushing via phone at 919-707-9060 or email at matthew.rushing@deq.nc.gov. While specific application deadlines are not stated in the provided materials, the program operates within defined funding cycles managed by the Division. Applicants should monitor official communications for announcements of funding rounds and submission timelines. The structured milestone framework ensures accountability and timely completion, reinforcing the program’s goal of advancing sustainable infrastructure management practices across eligible utilities.

Ensure scope aligns with approved application narrative; clearly separate grant-funded vs non-grant-funded activities; follow milestone schedule strictly; justify any equipment or software purchases within limits