Merger/Regionalization Feasibility Grants

The Merger/Regionalization Feasibility Grants program is administered through the North Carolina Department of Environmental Quality’s Division of Water Infrastructure under statutory authority established in Session Law 2015-241 and subsequent amendments to North Carolina General Statute 159G. The program was created to encourage water and wastewater utilities to improve long-term viability through consolidation, regionalization, or enhanced cooperative management structures. The funder’s broader mission is to support sustainable, efficient, and financially resilient water and wastewater systems across the state, particularly by addressing fragmentation and capacity limitations among smaller or distressed utilities. The primary purpose of this grant program is to fund feasibility studies that evaluate the potential for merging or regionalizing water and wastewater systems. These studies are intended to analyze both administrative and physical integration opportunities, including interconnection of infrastructure and shared service delivery models. The program focuses on identifying efficiencies, improving service quality, and strengthening financial and managerial capacity through collaborative approaches. Funding supports investigative and analytical work rather than capital construction, ensuring that participating entities can make informed decisions before pursuing implementation. Grant funding is limited to a maximum of 50000 dollars per recipient over a three-year period and may be sourced from either the Wastewater Reserve or the Drinking Water Reserve. The funds are specifically designated for feasibility-related activities such as engineering assessments, financial analyses, and planning studies. There are no restrictions imposed by affordability criteria on eligibility or funding percentage, which allows a broad range of applicants to access full funding for eligible study activities. However, funded activities must align with program guidelines and remain consistent with the approved scope of work. Eligible applicants include local government units and nonprofit water corporations. These entities may apply independently or in partnership with other systems to evaluate potential consolidation or regionalization opportunities. The program emphasizes collaboration, requiring applicants to consider joint solutions that improve operational efficiency and service delivery. Projects must focus on evaluating the feasibility of combining two or more systems or establishing physical interconnections for regional water supply or wastewater treatment. The application and award process involves submission of a funding application followed by the development and submission of a Preliminary Scope of Work upon selection for funding. This scope outlines project activities, timelines, costs, and deliverables and must be approved by the Division before a formal funding offer is issued. Once approved and contractual requirements are met, recipients may begin incurring eligible expenses and submitting disbursement requests. The program includes structured milestones and requires adherence to a defined project schedule, typically concluding within 24 months of the funding offer. Evaluation of proposals is based on how effectively the proposed study addresses identified system challenges and demonstrates potential benefits such as improved efficiency, cost savings, or enhanced service reliability. Deliverables from funded projects typically include technical reports, financial analyses, and recommendations for future action, which must be presented to governing bodies of participating utilities. The program requires documentation of these presentations and final deliverables prior to grant closeout. For additional information or assistance, applicants may contact Matthew Rushing at the Division of Water Infrastructure via phone at 919-707-9060 or by email at matthew.rushing@deq.nc.gov. While specific application deadlines are not detailed in the provided materials, the program operates within structured funding cycles and requires close coordination with Division staff throughout the application and project development process.

Ensure scope aligns with approved application and clearly connects project activities to identified system challenges; provide detailed cost breakdowns and timelines consistent with milestone schedule; include clear deliverables and documentation requirements