Frequently Asked Questions about ARPA Reimbursement in NC

NC Gov. Roy Cooper and the General Assembly budgeted $150 million dollars to address lead in water, asbestos, and lead-based paint inspections and abatement of hazards in NC public schools and licensed child care facilities. This funding was specifically budgeted in Session Law 2021-180 Section 9G.8(a)-9G(c). The Session Law directed the Commission for Public Health, Child Care Commission, and State Board of Education to adopt rules as necessary to implement the two programs.

The Session Law indicates, “As part of this program, public school units shall be required to test for lead levels in drinking water at their facilities” and “As part of the program, public school units and licensed child care facilities shall be required to conduct inspections for lead paint and asbestos hazards in their facilities.” Therefore, it is our interpretation that participation is mandatory for inspection and testing. Facilities must enroll by May 31, 2025. This is an extension due to effects of Hurricane Helene (PDF). Licensed child care facilities are already required to test for lead in water under 15A NCAC 18A.2816.

The American Rescue Plan Act (ARPA) enacted on March 11, 2021, provides one-time federal funding to states and local governments.

NC public schools (including charter schools), licensed child care centers and licensed family child care homes are eligible for reimbursement as of April 1, 2023, when the permanent rules went into effect. Private schools are not eligible for reimbursement.

No. NCDHHS has contracted with RTI International (RTI) to coordinate the asbestos and lead-based paint inspections at no cost to NC public schools or licensed child care facilities through the Clean Classrooms for Carolina Kids program.

Yes, NC public schools and charter schools are required to provide matching funds of $1 of local funds for every $2 of State funds reimbursed. In other words, NC public schools and charter schools will be reimbursed for two-thirds of the cost of eligible expenses.

Yes, but NC licensed child care facilities and family child care homes do not have a cost match requirement for reimbursement.

NC public schools (including charter schools), licensed child care centers and licensed family child care homes are eligible for reimbursement as of April 1, 2023, when the permanent rules went into effect.

Reimbursement is available to eligible schools and child care facilities until Dec. 31, 2026, or until the funding is depleted, whichever comes first.

Should there not be enough NC certified risk assessors to perform lead-based paint hazard assessments in NC public schools or child care facilities, this rule will allow NC to enter into a reciprocity agreement with another state, that has a three-year training schedule, to increase the number of certified risk assessors needed to meet the rule requirement.

Yes, reimbursement is available for projects that began on or after April 29, 2022.

S.L. 2021-180 states, “Capital projects may include HVAC, window, or other ventilation projects related to COVID 19 mitigation, or other capital, renovation, or repair projects. Asbestos and lead-based paint activities and associated replacement materials are eligible for reimbursement if approved by the NC Division of Public Health (DPH) but all public schools are required to provide matching funds in the amount of $1 of local funds for every $2 of state funds for eligible expenditures. Participation in the mitigation reimbursement program is not mandatory.

No, the purpose of this funding is to pay for inspections and reimbursement for capital projects and abatement or remediation of identified asbestos and lead-based paint hazards.

Yes, but the reimbursement will only pay to replace the areas where asbestos or lead-based painted materials were removed with new building materials that contain less than 1% asbestos or less than 90 parts per million of lead-based paint or coatings. Supporting documentation is required.

For example, if your project included removal of 500 square feet of asbestos floor tile and 5,000 square feet of non-asbestos floor tile, only the cost for the 500 square feet is eligible. Either provide an itemized list or pro-rate the cost for the 500 square feet. Document that the replacement material is below the acceptable asbestos level by including one of the following with your reimbursement request:

• The safety data sheet
• A letter from the manufacturer
• Supportive sampling data

No. Session Law 2021-180 does not allow for the reimbursement of administrative or indirect costs incurred by public schools or child care facilities participating in this program.

No, the reimbursement is dedicated to paying for inspections, and abatement or interim controls addressing asbestos and lead-based paint hazards.

Yes, it can. DPH staff will review state and federal debarment lists, along with suspension-of-funding lists. If a facility is on the list, DPH staff will consult with the DPH budget office for clarification regarding reimbursement. If debarment affects reimbursement, your facility will be notified.

Yes, with limitations. A previous MP or RR must document the type and quantity of asbestos building material to be abated and the asbestos sample must contain greater than 1% asbestos. If the previous lab results are less than 10% asbestos and an asbestos hazard was identified, then additional sampling may be collected and analyzed. The previous MP or RR must also be submitted to the Clean Classroom for Carolina Kids program exempt from the required asbestos inspection.

Note: If additional building materials will be disturbed as part of a renovation or capital improvement, that are not addressed in the existing MP or RR, then a thorough inspection of the affected area(s) is required to meet EPA 40 CFR Part 61, Subpart M, NESHAP regulations.

Yes, with limitations. A previous lead risk assessment must document if deteriorated lead-based paint is present, if the lead content sample contains lead equal to or in excess of 1.0 milligrams per square centimeter or 0.5% by weight. A lead hazard is also present if the dust sampling results exceed 10 ppm on the floor, 100 ppm on the windowsill and 400 ppm in the window trough. Additional lead hazards are also referenced in 130A-131.7 and 15A NCAC 18A .3105. The previous lead risk assessment must also be submitted to the Clean Classrooms for Carolina Kids program to determine if the facility can be exempt from the required lead-based paint inspection.

Note: If additional building materials will be disturbed as part of a renovation or capital improvement, that are not addressed in the previous risk assessment, then additional sampling may be necessary.

Remediation of hazards in areas designated or licensed as part of the child care facility can be reimbursed at 100%. Remediation of hazards in all other areas of the school will be reimbursed in the amount of $2 of State funds for every $1 of local funds used.

No, for public schools to meet the match requirement, each school seeking reimbursement must provide matching funds in the amount of $1 of local funds for every $2 of State funds.

Highlight or mark each item that qualifies for reimbursement when submitting an invoice with multiple items. Provide proof of payment(s) that confirms the amount of reimbursement being requested.

No, please submit a separate reimbursement form for each project. This helps prevent delays during review of reimbursement submission packets.

Complete and submit the following:

1. Applicable reimbursement request form:
   • ARPA Asbestos Remediation Reimbursement Request Form (PDF)
   • ARPA Lead-Based Paint Remediation Reimbursement Request Form (PDF)
2. Current NC Substitute W-9 Form (PDF)
3. Unique Entity Identifier (UEI) Fact Sheet (PDF)

Use the ARPA Reimbursement Documents Checklist (PDF) to determine what documents you should include with your reimbursement packet.

Email all reimbursement packets to ARPA-Reimbursement@dhhs.nc.gov.

DPH will review, approve and obligate funding to a specific project. Once approved, we'll issue a confirmation of reimbursement.

It depends on the documentation you submit to the Clean Classrooms for Carolina Kids program when you enroll.

The program will conduct inspections at:

• All pre-1988 facilities that do not have current documentation related to asbestos hazards.
• Any facility built after 1988 that does not submit the proper building age exemption documentation.

Public schools already have management plans in place. If the previous AHERA inspection meets the rule requirements, there is no need for another inspection or a new asbestos management plan. If your AHERA inspection is past due, you may use the inspection reports from this program to fulfill the AHERA reinspection report requirement.

There may be a visual inspection at each public school. Unless you have documentation confirming asbestos content is 10% or greater, any identified asbestos hazard may require samples to be collected.

Licensed child care centers and family child care homes have not previously been required to conduct asbestos inspections. The new rules require licensed child care facilities to be inspected following the AHERA sampling requirements.

For facilities built after Oct. 12, 1988, an inspection is not required by the rules, but a copy of the letter is required per the Asbestos Hazard Emergency Response Act (AHERA). The letter or statement must be signed by the architect, engineer or an accredited inspector. Child care facilities must provide a tax record showing date of construction. This documentation must be submitted to the Clean Classroom for Carolina Kids program to be exempt from the required asbestos inspection. Other federal regulations may require an inspection to meet EPA 40 CFR Part 61, Subpart M, NESHAP regulations or the OSHA Asbestos Construction Standard 1926.1101 prior to conducting renovation or demolition activities.

When an asbestos hazard is identified, it is important to prevent children from coming into direct contact with the hazard by restricting access. Access should be restricted until the hazard is abated or remediated per 10A NCAC 41C .1003.

There are many ways to restrict access, including, but not limited to:

• Covering the hazard
• Placing a physical barrier in front of or on top of the hazard

Submit the ARPA Asbestos Hazard Form within 45 days of inspection, even if no hazards were identified. The Clean Classrooms for Carolina Kids program will help you meet the notification requirement.

Submit the NC ARPA Asbestos Abatement notification 10 calendar days before starting any activity. The notification is required when removing friable, non-friable, regulated or non-regulated asbestos exceeding a small-scale short duration activity. 

Send notifications to ARPA-Reimbursement@dhhs.nc.gov.

Each asbestos activity (response action of friable or regulated asbestos) will require a clearance performed by a NC Accredited Asbestos Air Monitor.

Following the AHERA regulations (40 CFR 763), projects less than 160 square feet or 260 linear feet require Phase Contrast Microscopy (PCM) for clearance. Projects exceeding 160 square feet, or 260 linear feet, require Transmission Electron Microscopy (TEM) for clearance.

Yes, according to 10A NCAC 41C .0605 an asbestos removal permit (PDF) is required 10 working days from postmark when removing friable or regulated asbestos and the amount exceeds 160 square feet or 260 linear feet of asbestos.

Within 45 days following an asbestos abatement activity, submit the required information to the program. Send documentation to ARPA-Reimbursement@dhhs.nc.gov. 

You should also post the actions you took to address any identified hazards in the Clean Classrooms for Carolina Kids online portal and upload the clearance report. 

Keep all reimbursement records on file for five years, starting Jan. 1, 2027 and ending Jan. 1, 2032.

Under the new rules, NC public schools and licensed child care facilities are not required to have a surface-by-surface lead-based paint inspection. Instead, these facilities are required to have a lead-based paint risk assessment performed.

The Clean Classrooms for Carolina Kids program will conduct lead-based paint risk assessments at all pre-1978 facilities that enroll and do not have current documentation related to lead-based paint hazards. The program will also conduct these assessments at any facility build after 1978 that does not submit the proper building age exemption documentation.

For facilities built after Feb. 28, 1978, an inspection is not required by the rules, but a signed statement attesting that no lead-based paint was used is required. This documentation must be submitted to the Clean Classroom for Carolina Kids program to be exempt from the required lead-based paint inspection. Other federal regulations may require an inspection to meet the OSHA 1926.62 Lead in Construction Standard.

When a lead-based paint hazard is identified, it is important to prevent children from coming into direct contact with the hazard by restricting access. Access should be restricted until the hazard is abated or remediated per 10A NCAC 41C .1004.

There are many ways to restrict access, and schools and child care centers can determine their own response.

Submit the ARPA Lead-Based Paint Hazard Form within 45 days of inspection, even if no hazards were identified. The Clean Classrooms for Carolina Kids program will help you meet the notification requirement.

Submit the NC ARPA Lead-Based Paint Abatement notification or the NC ARPA Lead Renovation, Repair and Painting Notification 10 calendar days before starting any lead-based activity exceeding the de minimis amounts.

Send notifications to ARPA-Reimbursement@dhhs.nc.gov.

Each lead abatement or lead RRP activity conducted at a facility requires a clearance be performed by a NC Certified Lead Risk Assessor. A cleaning verification is not acceptable. 

Follow the EPA Lead-Based Paint clearance requirements in 40 CFR 745.227. Clearance inside a facility is less than 10 micrograms per square foot on a floor, less than 100 micrograms per square foot on a windowsill, and less than 400 micrograms per square foot in a window trough. 

When performing lead abatement activities, yes. According to 10A NCAC 41C .0808 a lead abatement permit (LHMP Permit Application) is required 10 working days from postmark when performing lead abatement activities.

No permit is required for lead-based paint RRP activities.

Within 45 days following a lead-based paint abatement activity, submit the required information to the program. Send documentation to ARPA-Reimbursement@dhhs.nc.gov. 

You should also post the actions you took to address any identified hazards in the Clean Classrooms for Carolina Kids online portal and upload the clearance report. 

Keep all reimbursement records on file for five years, starting Jan. 1, 2027 and ending Jan. 1, 2032.