Bill > H1012

This bill, the Disaster Recovery Act of 2025 - Part II, appropriates significant funds and extends regulatory flexibility to communities and citizens impacted by Hurricane Helene and wildfires, primarily for the 2025-2026 fiscal year. * **Hurricane Helene Disaster Recovery Fund (Helene Fund):** This fund receives substantial transfers from various reserves, including $104,963,059 from the State Emergency Response and Disaster Relief Fund, $45,469,983 from the Federal Infrastructure Match Reserve, $476,512,736 from the Medicaid Contingency Reserve, and $8,304,222 from the Information Technology Reserve. An additional $64,750,000 is transferred from previously allocated funds for programs like the Water Infrastructure Emergency Bridge Loan Program and the Emergency Infrastructure Bridge Loan Program for Commercial Underground Storage Tanks. * **Direct Appropriations from Helene Fund:** A total of $500,000,000 is appropriated from the Helene Fund for various purposes: * **Department of Agriculture and Consumer Services:** $63,000,000 for the Agricultural Disaster Crop Loss Program ($25,000,000 for farm infrastructure), the Streamflow Rehabilitation Assistance Program ($15,000,000), the North Carolina Forest Service for wildfire response ($15,000,000), and the North Carolina Agricultural Manufacturing and Processing Initiative ($8,000,000). * **Department of Commerce:** $10,000,000 for Visit NC tourism promotion ($5,000,000) and Division of Community Revitalization operational expenses ($5,000,000). * **Department of Environmental Quality:** $13,000,000 for the Dam Safety Grant Fund ($10,000,000) and landslide hazard mapping ($3,000,000). * **Department of Information Technology:** $3,000,000 for a disaster recovery constituent portal. * **Department of Natural and Cultural Resources:** $12,250,000 for the Parks and Recreation Trust Fund. * **Department of Public Instruction:** $8,000,000 for a competitive grant program to repair public school infrastructure. * **North Carolina Emergency Management (NCEM):** $208,000,000 for the Private Road and Bridge Repair Program ($75,000,000, with $25,000,000 for reimbursements), the nonfederal share for FEMA disaster recovery programs ($70,000,000), the Aerial Asset Accessibility Grant Program ($25,000,000), the Disaster Relief and Mitigation Fund for flood mitigation ($20,000,000), and grants to Volunteer Organizations Active in Disaster (VOADs) ($18,000,000). * **Office of State Budget and Management (OSBM):** $96,250,000 for the Hurricane Helene Local Government Capital Grant Program ($70,000,000, with $20,000,000 allocated to Madison County), $16,000,000 to the Town of Canton for wastewater treatment services and facility acquisition, and $4,250,000 in grants to specific colleges and universities for repairs. * **Office of the Governor:** $10,000,000 for the Governor's Recovery Office for Western NC. * **Office of the State Fire Marshal:** $18,000,000 in grants to fire departments and rescue squads for equipment and facility repairs and wildfire preparedness. * **North Carolina School for the Deaf:** $1,000,000 for building and infrastructure repairs. * **Board of Governors of The University of North Carolina:** $6,000,000 in grants to Western Carolina University, Appalachian State University, and UNC-Asheville/NC Arboretum for repairs and resiliency. * **Department of State Treasurer:** $51,500,000 for cash flow loans to local governments. * **Federal Disaster Funding:** $685,613,000 in federal disaster funding is appropriated for the 2025-2026 fiscal year to the Clean Water State Revolving Fund ($253,681,000) and the Drinking Water State Revolving Fund ($409,422,000) for repair and replacement of water and sewer infrastructure damaged by Hurricane Helene. An additional $22,510,000 is allocated to the Clean Water State Revolving Fund for improving the resilience of decentralized wastewater treatment systems. * **Other Appropriations:** * $28,161,418 in unexpended Dorian Funds/NCFS Budget Fund are reallocated to the Department of Transportation for cash flow and federal matching for Hurricane Helene recovery. * $4,600,000 from NCRR dividends are appropriated to the Department of Transportation for Hurricane Helene recovery and repair. * $15,000,000 is transferred from the Stabilization and Inflation Reserve to the North Carolina Selectsite Fund for public infrastructure and site development improvements. * $20,000,000 is transferred to Robeson County for the Lumber River Basin Coalition waterway restoration project. * **Regulatory Flexibility and Extensions:** The statewide declaration of emergency is extended until October 1, 2025, continuing regulatory flexibilities. Loan terms for water infrastructure are extended to June 30, 2035. The Governor is granted flexibility to reallocate other funds on a nonrecurring basis for emergencies when contingency and emergency funds are insufficient. * **Conditions and Limitations:** Funds appropriated under Part II generally revert to the Savings Reserve if not expended or encumbered by June 30, 2030. Recipients must use best efforts to obtain alternative funds from insurance and federal aid, and any excess funds must be remitted to the State. The Governor is prohibited from using these specific funds for budget adjustments or reallocations under certain statutes. The Governor must also ensure that expenditures do not adversely affect eligibility for federal funds.