Funding Database: Viable Utilities Reserve

The Viable Utility Reserve (VUR) is part of the Viable Utilities Program, which provides technical assistance and funding to assist distressed drinking and wastewater service providers with the goal of creating a viable utility system. A viable utility system is a utility that functions as a long-term, self-sufficient business enterprise. Systems should establish organizational excellence and provides appropriate levels of infrastructure maintenance, operation and reinvestment that allow the utility to provide reliable water and wastewater services. The NC Department of Environmental Quality (NC DEQ) Division of Water Infrastructure (DWI) awards VUR grants to aid with the pressures of declining revenue streams, increasing infrastructure costs and the difficulty in recruiting and maintaining qualified utility managers.

Eligible Applicants

Eligible applicants are distressed units of public water or wastewater systems operated by a government unit. Distressed units are designated by the State Water Infrastructure Authority and Local Government Commission. DWI provides a list of distressed government units eligible for this funding under the Units Designated Under Identification Criteria heading. 

Eligible Projects

The Viable Utility Reserve provides grants to water utility programs to ensure economic security. VUR grants can be used to implement the following:

• Physically interconnect and extend public water or wastewater infrastructure to provide a regional service
• Rehabilitate existing public water or wastewater infrastructure
• Decentralize an existing public water or wastewater system into smaller viable parts
• Fund a study of rates, asset inventory and assessment, merger options or regionalization options
• Build capacity of local government units for generating sufficient revenues to adequately fund management and operations, personnel, and appropriate levels of maintenance and reinvestment that facilitate the provision of reliable water or wastewater services
• Fund emergency grants for operating deficits

Funding Amount

The maximum cap per local government that has been designated as distressed is $15 million, or up to $30 million for projects that consolidate two or more local governments. Emergency grants for operating deficits will not exceed $750,000.

As of 2023, VUR funding is limited.

Match Requirements

The funder does not require a match.

Application Schedule

The VUR program holds two application cycles per year, closing approximately at the end of April and September. The NC DEQ Application Forms page contains specific application deadlines. All DWI grants follow the same funding schedule.

Application Process

NC DEQ posts applications and application cycle information a couple months prior to the funding cycle closing dates on the VUR website. The VUR program accepts applications electronically through the website.

Application Assistance

DWI offers application training twice annually, both in-person and virtually. DWI will connect distressed local governments with the appropriate staff for technical assistance questions. Contact Victor D'Amato several weeks before the application deadline if you need assistance with the application or application process.

Funding Source

The NC General Assembly funds the Viable Utilities Reserve fund through congressional appropriations.