Guidelines: State & Local Grants

Overview

Projects planned and constructed by a federal agency with a local cost-share and projects without federal assistance are both eligible for state financial assistance provided that the applicant is a unit of local government. Non-eligible purposes include projects directly associated with maintenance or repairs, meeting an existing environmental permit requirement (i.e., NPDES Phase I and Phase II Stormwater) or regulatory enforcement action, generating nutrient credits and small watershed projects of the NRCS (reviewed by the N.C. Soil and Water Conservation Commission). Removing stream debris other than that which is required to implement the project is non-eligible. Any stream debris removal shall be done in accordance with the Guidelines for Snagging and Clearing Operations of Stream Debris dated 8/19/21. Compensatory mitigation projects and the generation of compensatory mitigation credits for impacts to aquatic resources per the Federal Mitigation Rule (33 CFR Part 332) are non-eligible purposes. Compensatory mitigation projects can be located directly adjacent to an eligible project for the purposes of achieving maximum ecological benefit. Should a compensatory mitigation project be conducted on land previously acquired using DWR grant funds the mitigation project sponsor shall reimburse either DWR or its Grantee for the full value, plus appreciation, of the DWR investment in that portion of the land to be used for compensatory mitigation to ensure that DWR does not directly or indirectly subsidize the mitigation project.

Pre-Application Consultations

A project team member representing a potential applicant is required to contact the Administrator at least one month prior to the end of the application cycle (by June  1 if possible) to schedule a virtual pre-application consultation. The purpose of this informal consultation is for the project team member to provide the Administrator with information regarding the proposed project to assist with determining project eligibility prior to the submission of an application. Additionally, any questions the applicant has regarding the application submission and review process can addressed during this consultation. A brief project narrative, site photos, conceptual project plan map, if available, and project coordinates shall be provided to the Administrator to assist with eligibility determination. For greenway and trail projects, applicants are encouraged to flag proposed alignments if not in obvious rights-of-ways prior to taking geotagged photos so that the proposed alignment can be generally identified in the photos. A link to geotagged photos of the entire project area shall be included as part of the application submittal.

An application for funding consideration shall include information about the four items listed below to be considered complete. Additional supplementary documentation (reports, photos, etc.) are not required but can be provided as separate attachments or uploaded to an authorized, secure filesharing website. The Checklist sheet of the application spreadsheet contains a list of all required submittal documents. The most recent versions of all required forms and grant information can be found at the WRDG website. Please check this website periodically for updates. 

1. Application Spreadsheet (MS Excel) – The most recent version of the application spreadsheet shall be used. All applications should include the appropriate project information in the designated sheets including checklist confirmations, contacts, general information, narratives, treatment amounts, benefits, budget, and budget in-kind notes. Detailed instructions about how to complete this application are provided on the Instructions sheet of this spreadsheet and within each of the individual sheets.

   Project Narrative: shall begin with a statement outlining the overall project scope (what is being proposed), followed by the project justification (why it is being proposed). For stream restoration projects, a brief description of how the proposed stream treatments will mitigate the documented stream impairments shall be included. Information about proposed riparian buffers (minimum/maximum or average proposed widths) and stream crossings shall also be provided. 

   Preliminary Feasibility or Engineering Studies may be funded to more accurately determine project costs, benefits or scale of implementation. If awarded WRDG grant funding an updated project implementation timeline shall be provided in a cover letter or in the final Study report that is required as a grant deliverable at project closeout. 

   Budget:The application budget will serve as the basis for the financial administration of the grant contract and reimbursement requests for projects that are awarded funding. The budget shall only include cost estimates for expenses directly associated with the project scope and treatments as written in the application, or any subsequent contract amendments. Matching contributions must be those directly related to the eligible elements of the project that grant funds are being requested for, or those that may affect the overall outcome and improve the overall quality of the eligible elements. Applicants shall list all sources of funding contributions (including federal and nonfederal funding) on this sheet to minimize the potential for duplicative funding for identical work activities associated with a single project.

   If a project includes, or may include other sources of grant funding, such as from the NC Land and Water Fund, applicants are strongly encouraged to separate DWR-requested funding from other grant funding. This can be accomplished by not requesting matching funds from DWR for budget line items in which matching funds from other grants have been secured or may be applied for. For example, if grant funds have been secured, or are being requested for design services, then DWR funding should be requested for other budget categories besides design services. Conversely, estimated expenses can be lumped into just a few budget categories if a project has a single funding source. Construction costs may be shared among other sources of grant funding so as long as the total amount of funding would not exceed the total construction costs. Reimbursable costs for project elements associated with renovation, or with the construction of impervious surfaces such as buildings and paved surfaces should not exceed 25% of grant-reimbursable costs and 50% of total project costs. Expenses associated with monitoring or sampling activities can be listed as a matching contribution, but those activities must be completed within the three year grant contract period. Allowable non-reimbursable project expenditures can be considered as matching contributions if the project tasks were completed after the end date of the preceding application cycle.

   Land Transfers: Costs associated with land acquisition are only reimbursable for eligible Water-Based Recreation projects. DEQ will not reimburse any portions of land purchases that exceed 10% of the appraised land value but will reimburse up to a maximum of $20,000 beyond the appraised land value. The costs associated with land acquisition or donation for non-Water-Based Recreation projects can designated as an In-kind matching contribution for the project. Land transfers such as fee simple purchases, donations and conservation easements cannot have taken place beyond 14 months prior to the application date to be counted as a matching contribution. A Basis For Claimed Value of Land Transfers sheet shall be completed and included with the application submittal for projects involving land transfers. Please see Land Transfers section of the WRDG Reimbursement Instructions (Attachment 1) at the end of this document.

2. Project Plan and Location Maps – A minimum of two scaled maps is required. The location map shall include the project area labeled on recent aerial photography, a street map, a USGS topographic quadrangle map or other spatial reference data. This first map shall be at a large scale (zoomed out) to show the project area within the context of a watershed, county, or region. For phased projects this map should clearly delineate the distinct project phases. The project plan map shall be a conceptual plan that depicts the location of all project elements listed in the Project Narrative sheet and listed as treatments in the Treatments sheet of the application. Additionally, all water resources (surface waters, wetlands) located within the project area should be shown on this map. This second map shall be smaller scale (zoomed in) to show greater detail within the immediate project area. A conceptual plan at the 30% design stage is ideal but not required. At least one map should show the entire project length. Typical engineered drawings, graphics or photos may be required for common stormwater control measures such as bioretention areas or constructed wetlands, or for common water-based recreation structures such as boardwalks, bridges or paddle access facilities. 
    
3. Official Resolution* - The Applicant shall include a resolution adopted by the governing board stating the amount of stat aid requested and accepting the applicant's responsibilities. A representative of the Project Sponsor with signatory authority shall sign this resolution. An Official Resolution template is available for download from our website. In most circumstances the responsibilities listed below shall be included in the Official Resolution.

However, this resolution template can be adapted to fit the unique circumstances of a specific project.

Written justification shall be provided to DWR in the Resolution or cover letter on official agency letterhead for any responsibilities listed below that are not included in the Applicant’s Official Resolution:

1. Assume full obligation for payment of the balance of project costs.
2. Obtain all necessary state and federal environmental permits.
3. Comply with all applicable laws governing the award of contracts and the expenditure of public funds by local governments.
4. Supervise construction of the project to assure compliance with permit conditions and to ensure safe and proper construction in accordance with approved plans and specifications.
5. Obtain appropriate easements, rights-of-way or suitable spoil disposal areas that may be necessary for the construction and operation of the project without cost or obligation to the State.
6. Assure that the project is open for use by the public on an equal basis with limited restrictions (if on public property).
7. Hold the state harmless for any damages that may result from the construction, operation, and maintenance of the project.
8. Accept responsibility for operation and long-term maintenance of the completed project.

* For “Feasibility / Engineering Study Grants” only Items 1 and 3 are required in the Resolution. See Study Resolution Template located on our website. 

4. Other Required Documentation 

Conflict of Interest Certification: certifies that the applicant’s subordinates and any person or persons designated to act on behalf of the applicant do not have an actual or apparent conflict of interest with respect to the project. A representative of the Project Sponsor with signatory authority shall sign this certification.

Conflict of Interest Policy: this is a separate document from the above-referenced Certification and applies to the local government agency as a whole. This policy must address situations in which any of the Applicant’s management employees and the members of its board of directors or other governing body may directly or indirectly benefit (except as the Applicant’s employees or members of its board or other governing body) from the Applicant’s disbursing of State funds. This policy must also include actions to be taken by the Applicant’s or the individual, or both, to avoid conflicts of interest and the appearance of impropriety. Templates of these forms can be downloaded from our website. 

No Overdue Tax Debts Statement: this form is not required for the application submittal but will be required if the application is recommended for funding later in the year. This written statement shall be completed, signed and notarized by that Applicant's board of directors or other governing body stating that the Applicant does not have any overdue tax debts, as defined by G.S. 105-243.1 at the federal, State, or local level.

Templates of these forms can be found on our website. 

Letter of Commitment: (Feasibility or Engineering Study and Water-based Recreation Sites Only): a brief statement on the Applicant’s official letterhead shall be provided that states the following: 

Feasibility or Engineering Studies: 1.) the primary purpose and objective(s) of this Study; 2.) the Applicant’s intention to apply to the WRDG in a future grant cycle and implement an associated WRDG-eligible project resulting from this Study within a reasonably short period of time (1-3 years); and 3.) the estimated project implementation timeline after completion of this Study.

Land Acquisition For Water-based Recreation: 1.) the Applicant’s intention to apply to the WRDG in a future grant cycle and implement an associated WRDG-eligible water-based recreation project (see page 1 of our Guidelines for project examples); 2.) a project will be implemented within a reasonably short period of time (1-3 years) after the land acquisition; and 3.) the estimated project implementation timeline after land acquisition.

Geotagged Photos: a link to photos with location information embedded in the digital file is required in lieu of a pre-application site visit and shall be taken according to the most recent version of our Guidelines For Taking Geotagged Digital Photos document available under the State & Local Projects heading on our website.

5. Supplementary Documentation – Additional supplementary documentation (reports, photos, letters of support, etc.) is not required but can be provided as separate attachments via email as part of the application submittal.

Application submittal documents shall be emailed to amin.davis@deq.nc.gov by the last day of the application cycle. A link to a filesharing website should be provided instead of sending file attachments if the cumulative file size exceeds 35 megabytes. The submittal shall consist of an Excel version of the completed application spreadsheet, at least two Adobe pdf documents labeled as Map(s) and Signed Documents (resolution, conflict of interest forms, signed/notarized no overdue tax statement). A third pdf labeled as Supplementary Documents (reports, data, letters of support, etc.) can be provided, or uploaded to a secure filesharing website, but is not required. If an application is submitted by a non-governmental organization (non-profit, consultant, etc.) on behalf of an eligible unit of local government, a staff person of that eligible unit of local government must be copied on the email submittal and all subsequent application-related correspondence.

Note: The complete application will be included in the DEQ contract documentation; therefore, it is very important that its contents are accurate and complete. It is the Applicant’s responsibility to ensure their application is accurate and complete at the time of submission to DWR. Application submittals with four or more errors or omissions may not be accepted for funding consideration. Requested corrections to all application errors or modifications must be submitted by the Applicant to DWR within 30 calendar days of the end of the application cycle in which the application was submitted. Erroneous or incomplete application information can also lead to significant delays with the issuance of a DEQ Contract should the project be recommended for grant funding.

Any changes to the original project budget and/or project scope submitted with the application will require the prior written approval of DWR if an application is recommended for funding. Unapproved changes to the project scope or budget throughout the course of a project may not be eligible for cost-share funding or reimbursement.

Application submittal

Project close-out

The following criteria will be used to approve, approve in part, or disapprove grant applications:

1. The economic, social, and environmental benefits to be provided by the projects;
2. Regional benefits of projects to an area greater than the area under the jurisdiction of the local sponsoring entity;
3. The financial resources of the local sponsoring entity;
4. The environmental impact of the project;
5. Any direct benefit to State-owned lands and properties.

Applicant Obligation – Environmental Permitting

All proposed projects are subject to environmental review and permitting under applicable federal, state and local regulations. It is the applicant’s responsibility to prepare, provide and remain in compliance with all applicable environmental permitting requirements associated with project implementation.

Review Decisions

This is a competitive grant program due to limited funding availability. The grant’s review criteria are contained within the Benefits & Evaluation Criteria sheet of the application form. A multi-agency review team comprised of various subject-matter experts reviews each application to assist the Administrator and Division Director with establishing funding priorities. Applications that receive a median review team score of less than 50 out of 100 possible points will not be recommended for funding. Review decisions and notifications for applications received during the spring application cycle are generally made in October. However, unforeseen circumstances such as legislative, policy or funding allocation changes may delay award notifications. 

Projects Not Awarded Funding

Applicants who are not awarded funding within one calendar year from the end date of the grant cycle in which their application was originally submitted may be required to complete and submit a new application to DWR if they wish to re-apply for funding consideration. A new application submittal may also be required if there have been changes to the project scope or budget. The spring application cycle typically ends on June 30^th.

Acceptance of a grant award will require the applicant to enter into a grant contract with DEQ. A DEQ grant contract is considered ‘fully-executed’ once it has been signed by both a signatory authority of the Grantee and DEQ Financial Services. A copy of the fully-executed contract shall be provided to the Grantee after being signed by DEQ.  No portion of reimbursable work or expenditure of reimbursable funds for the project, plan or services shall begin prior to receiving a fully-executed contract from DEQ. Contracts are valid for two years from the date the contract document is sent to the grant recipient for contract execution.

Contract Amendments

Any changes to the project’s scope, budget or duration after a contract has been fully-executed will require written approval from the Administrator and may also require a DEQ contract amendment. Any contract amendment requests shall be submitted electronically to amin.davis@deq.nc.gov at least 30 days prior to the DEQ contract expiration date.              

Typical changes that require a contract amendment are listed as follows:

Extension Requests: Grant recipients can submit an extension request for one additional year beyond the grant expiration date if progress toward project completion can be sufficiently documented. An extension request shall be submitted in a cover letter on the Grantee’s official agency letterhead. This request shall include a justification statement, current project status update and anticipated project schedule moving forward.  No more than one extension shall be granted for an active contract.

Project Scope/Budget Changes: The minimum information that shall be supplied to DEQ for consideration includes a brief written narrative on the Grantee’s official letterhead containing the justification for any proposed changes and a revised scope of work description. Revised project drawing(s)/map(s) to scale and the most recent version of the WRDG Budget Revision sheet submitted as an Excel file shall also be submitted if applicable. Unapproved changes to the project scope or budget shall not be eligible for, and may result in additional reductions to, cost-share funding or reimbursement. 

Requests For Additional Funding

Grant recipients can submit a request for additional funding consideration to DWR for a maximum of 25% of the original grant award, not to exceed $100,000. This request shall be submitted by the project sponsor or primary contact on a cover letter with official agency letterhead via email. The following information shall be submitted by the Grantee to DWR for additional funding consideration: 

• a cover letter describing the circumstances/need for an increased funding award, summary of current project status, revised project scope (if applicable) and anticipated project implementation schedule.
• revised project budget sheet with the amount of additional funding and associated matching funds contributions included.
• revised scaled drawing(s) that clearly depict the location of the proposed revised work (if applicable). 

DWR will review this information and respond to the Grantee with a decision regarding increased funding within 30 calendar days. Funding increases are subject to the availability of funds and to DWR’s actual cost reimbursement policy.  DWR may not be able to grant requests for additional funding caused by inaccurate or incomplete information in the application or project budget provided by the Applicant.

All amendment cover letters shall include the following contact information:

Grant Reimbursements

Allowable expenditures are expenditures associated with the work performed for a specific invoicing cycle that are in accordance with the most recent version of the DWR-approved budget sheet and Reimbursement Instructions document (see Attachment 1). The grant award amount is the maximum possible reimbursement amount. Only expenditures incurred after a fully-executed contract has been issued and that are detailed in the contract budget and are considered eligible reimbursable expenses. Allowable non-reimbursable expenditures can be considered matching contributions if the project tasks were completed after the end date of the previous application cycle.  Invoices or other supporting documentation such as another grant contract agreement must be provided that support all contributions listed on the reimbursement tracking sheet submitted for each reimbursement request. All project-related invoices, receipts, and/or supporting documentation such as another grant contract agreement, including that related to the Grantee’s matching funds listed in the most recent DEQ-approved project budget, shall be submitted and should generally reflect total project costs at project close out. 

Reimbursement requests can be submitted no more frequently than monthly but must be submitted at least every three months (quarterly). DWR will normally pay the Grantee electronically or by mailed check within 30 days of receipt of a complete reimbursement payment request, provided the expenses are in accordance with the budget/contract, or as amended. A final reimbursement request shall be submitted to DWR within 30 days after the contract expiration date. If the Grantee determines that significant changes to a project’s scope from that in the original application are necessary, the Grantee must send a request in writing to the Administrator and receive written approval of those changes from DWR and/or DEQ. Unapproved changes may not be eligible for state cost-share reimbursement.  

Grantees shall submit reimbursement requests in accordance with their fully-executed DEQ Contract and the Reimbursement Instructions document on our website.

Reimbursement requests shall include:

1. A Cover Memo/Letter signed and dated on the Grantee’s official letterhead that lists:
2. DEQ Contract Number
3. total amount of the reimbursement request 
4. actual cost (expenses)by approved budget categories
5. total amount spent on the project to date 
6. Copies of subcontractor invoices or other documentation of materials, services and other project costs listed on the subcontractor’s letterhead.
7. A completed Reimbursement Tracking Summary spreadsheet.

The reimbursement request and supporting documentation should be submitted by email to amin.davis@deq.nc.gov. DWR will retain 10% of the total grant award amount until after the final project has been inspected and approved by DWR staff. 

** Reimbursement Instructions are provided as Attachment 1 at the end of this document.