NC S1282

Appropriates $50,000,000 from the General Fund to the Rural Economic Development Center for water and wastewater infrastructure grants to local government units in fiscal year 2010-2011.

Establishes supplemental grants up to $500,000 (or $1,000,000 for economically distressed areas) to match federal, State, and local funds for wastewater collection systems, treatment works, and public water systems.

Requires eligible applicants to be located in rural counties (fewer than 250 people per square mile) and to adopt resolutions setting household water and sewer user fees at specified thresholds; economically distressed areas receive priority consideration.

Sets matching fund requirements at dollar-for-dollar basis for most applicants, but allows 50% or less matching for economically distressed areas or those with high poverty rates.

Limits Rural Center administrative costs to 2% of appropriated funds, requires annual reporting to the Joint Legislative Commission on Governmental Operations beginning September 1, 2011, and prohibits use of funds for loans.