29 The American Rescue Plan and Local Infrastructure A CLEAR NEED In 2017, the N.C. Division of Water Infrastructure estimated that North Carolina’s water and sewer infrastructure needs over two decades would total between $17 billion and $26 billion. More recently, the University of North Carolina’s Environmental Finance Center has determined that the state’s stormwater infrastructure needs through 2034 will reach an estimated $2.76 billion, with those investments key in mitigating flooding caused by climate change and additional upstream development and growth. To grasp the scope of one part of that need, as of 2016, 80,000 miles of public drinking water distribution lines ran through North Carolina, enough to wrap those lines around the circumference of the Earth three times over. And of that total, over 40% are constructed of materials—galvanized metal, ductile iron, or cast iron—requiring replacement in short order. These needs arise as roughly 40% of North Carolina counties and the municipalities in them have experienced population loss in recent decades, with associated manufacturing plant closings and jobs losses through the 1980s, 90s, and early 2000s. Fewer residents means fewer rate payers and a cash shortfall. The result has been deferred maintenance needs for these systems. The situation was highlighted in 2019 when one Wayne County town, Eureka, saw state legislators suspend its town charter, and the state took over operations as its sewer system operations teetered on financial failure. Nearby municipalities Fremont and Goldsboro—transporters and treaters of Eureka’s wastewater— were affected by the town’s financial and operational struggles. The issue has not gone unnoticed. That same year, state legislators began creating a framework to address struggling public water and sewer systems through a program designated as the Viable Utility Fund (VUF). The program is intended to identify distressed systems and work toward solutions that could be sustained over time. The legislation was passed into law in 2020. Only a small amount of money, however, has thus far been provided by the VUF for actual infrastructure investments. Instead, the state’s primary, ongoing programs to provide funding for local water and sewer systems investment—the Clean Water NCLM.ORG continues on page 30 continued from page 27
RkJQdWJsaXNoZXIy Nzc3ODM=