NC S1260

Appropriates $50,000,000 to the Rural Economic Development Center for the 2010-2011 fiscal year to provide grants to local government units for wastewater collection systems, wastewater treatment works, and public water system projects in rural areas.

Establishes supplemental grants available to rural counties and economically distressed areas, with maximum grants of $500,000 for standard applicants or up to $1,000,000 (25% of project cost) for economically distressed applicants.

Requires eligible applicants to document critical water or wastewater needs affecting human health or the environment, or critical economic development needs, with priority given to projects serving economically distressed areas.

Sets matching fund requirements at dollar-for-dollar basis for standard applicants, with reduced matching requirements (50% or less) available for economically distressed counties or areas with poverty rates at least 150% of the state poverty rate.

Requires the Rural Economic Development Center to review applications, award grants based on point-assigned criteria, disburse funds in multiple payments based on project progress, and submit annual reports to the Joint Legislative Commission on Governmental Operations beginning September 1, 2011.