N.C. Gen. Stat. § 136-44.17

(1) Program Established. - The Department of Transportation shall establish the pavement preservation program.

(2) Eligible Activities or Treatments. - Applications eligible for funding under the pavement preservation program include the following preservation activities or treatments for asphalt pavement structures: Chip seals, slurry seals, fog seals, sand seals, scrub seals, and cape seals.

(3) Microsurfacing.

(4) Profile milling not covered by resurfacing.

(5) Asphalt rejuvenators.

(6) Open graded asphalt friction course.

(7) Overlays less than 1,000 feet in length.

(8) Diamond grinding.

(9) Joint sealing.

(10) Dowel bar retrofit.

(11) Partial-depth or full-depth repairs and reclamations.

(12) Ultra-thin whitetopping.

(13) Thin lift and sand asphalt overlays.

(14) Asphalt crack sealing.

(15) Pavement markers and markings.

(16) Ineligible Activities or Treatments. - The pavement preservation program shall not include the following preservation activities or treatments: Contract resurfacing activities or major pavement rehabilitation treatments and pretreatments that are used in combination with a resurfacing treatment, such as profile milling or chip seals.

(17) Routine maintenance activities used to maintain and preserve the condition of roads. Treatments include, but are not limited to, pothole patching, rut filling, cleaning of roadside ditches and structures, shoulder maintenance, and retracing of pavement markings.

(18) Maintenance and preservation activities performed on bridges or culverts.

(19) Activities related to positive guidance or signal maintenance program functions.

(20) Encumbrance Schedule. - Beginning in the 2015-2016 fiscal year, the Department of Transportation shall spend or encumber all funds appropriated by the General Assembly to the Department for the pavement preservation program by June 30 of the fiscal year for which the funds were appropriated.