AN ACT to establish the community college construction workforce program and to appropriate funds for that purpose, to create the construction materials producer incentive grant program and to appropriate funds for that purpose, TO REQUIRE THE BUILDING CODE COUNCIL AND THE RESIDENTIAL CODE COUNCIL TO UPDATE THE NORTH CAROLINA STATE BUILDING CODE TO ALLOW PORTLAND‑LIMESTONE CEMENT AND NATIONALLY RECOGNIZED CEMENT SUBSTITUTES, and to appropriate funds to the department of information technology to provide grants to local governments for the establishment of e‑permitting systems.

Whereas, the General Assembly finds that rises in housing costs stem primarily from bottlenecks in labor and materials; and

Whereas, the most effective way to reduce housing costs in North Carolina is to reduce these bottlenecks; and

Whereas, investments in construction training, material production, and permitting modernization will strengthen North Carolina's economy, enhance housing affordability, and promote regional equity in growth; Now, therefore,

The General Assembly of North Carolina enacts:

PART I. COMMUNITY COLLEGE CONSTRUCTION WORKFORCE PROGRAM

SECTION 1.(a)  Program Established. – There is established the Community College Construction Workforce Program (Program). The purpose of the Program is to provide funds to community colleges in the State to establish credentialing programs for high‑demand construction trades. For the purposes of this section, high‑demand construction trades include electricians, plumbers, carpenters, roofers, HVAC (heating, ventilation, and air conditioning) technicians, or other similar trades with skills applicable to and used in the construction of residential structures.

SECTION 1.(b)  Program Funds. – The Community Colleges System Office shall provide funds to community colleges seeking to establish credentialing programs for high‑demand construction trades. In order to receive funds, a community college must submit a written request to the Community Colleges System Office detailing the credentialing programs to be established with the funds and how the funds will be used to establish the credentialing program. The Community Colleges System Office shall notify the requesting community college of the approval or denial of the request within 30 days of receipt of the written request.

SECTION 1.(c)  Community College Reporting Requirement. – Each community college that receives funds shall submit a report to the Community Colleges System Office by June 30 of each year that funds are received detailing the following:

(1)        How funds distributed through the Program were used to establish high‑demand construction trades credentialing programs at the community college, including which high‑demand construction trades credentialing programs were established.

(2)        The number of students achieving credentials for high‑demand construction trades during the most recent academic year compared to the prior academic year.

(3)        Which specific credential programs were established using Program funds.

(4)        Any further plans by the community college to establish other high‑demand construction trades.

SECTION 1.(d)  Community Colleges System Office Reporting Requirement. – The Community Colleges System Office shall report to the Joint Legislative Education Oversight Committee on the results of the Program by October 1, 2027, and each year thereafter that funds are available for the Program on the following:

(1)        The number of community colleges that applied for funds, the number of community colleges that received funds, and the amount of funds received by each community college.

(2)        The number of high‑demand construction trades credentialing programs that were established, broken down by specific trade credentials.

(3)        The total number of high‑demand construction trades credentials awarded by colleges in the Community Colleges System compared to previous years.

(4)        Any other information the Community Colleges System Office deems relevant.

SECTION 1.(e)  Appropriation. – There is appropriated from the General Fund to the Community Colleges System Office the sum of two hundred million dollars ($200,000,000) in nonrecurring funds for the 2026‑2027 fiscal year to be used for the purposes of this section. The Community Colleges System Office may use up to ten percent (10%) of the funds appropriated pursuant to this section to administer the Program and promote the Program to the public. Funds appropriated pursuant to this section shall not revert but shall remain available until expended.

PART II. CONSTRUCTION MATERIALS PRODUCER INCENTIVE GRANT PROGRAM

SECTION 2.(a)  Appropriation. – There is appropriated from the General Fund to the Department of Commerce (Department) the nonrecurring sum of one hundred million dollars ($100,000,000) for the 2026‑2027 fiscal year to be allocated to, and used for purposes consistent with, the Construction Materials Producer Incentive Grant Program created by subsection (b) of this section.

SECTION 2.(b)  Construction Materials Producer Incentive Grant Program. – The Department shall administer a grant program using funds allocated in subsection (a) of this section to provide grants to producers of construction materials to incentivize investment in production capacity for construction materials. For purposes of this section, construction materials include lumber, engineered wood, concrete, cement substitutes, HVAC (heating, ventilation, and air conditioning) components, windows, doors, and any other material, component, or system assembly that is a standard item used in the construction of buildings or infrastructure. Grants under the program shall be subject to the following conditions, which shall be in addition to any conditions imposed by rules created by the Department pursuant to subsection (c) of this section:

(1)        The maximum award amount under the program, per producer of construction materials, shall not exceed five million dollars ($5,000,000).

(2)        Grants from the program shall only be awarded to producers of construction materials that (i) invest a minimum of ten million dollars ($10,000,000) in the State and (ii) create an average of 250 FTE jobs during the grant period. For purposes of this subdivision, a grant period is a period of time, not to exceed five years, during which producers of construction materials are eligible to receive grants under the program.

SECTION 2.(c)  Rules; Report. – The Department shall adopt rules to implement the grant program created by this section. Beginning September 15, 2026, and continuing annually thereafter until all funds have been awarded, the Department shall submit a report on the grant program to the Joint Legislative Economic Development and Global Engagement Oversight Committee and the Fiscal Research Division.

SECTION 2.(d)  Effective Date. – This section becomes effective July 1, 2026.

PART III. CONSTRUCTION MATERIALS REGULATIONS

SECTION 3.(a)  Definitions. – For purposes of this section, the following definitions apply:

(1)        Nationally recognized cement substitute. – A cementitious material used as a partial replacement for portland cement that conforms to a standard promulgated by ASTM International, the American Association of State Highway and Transportation Officials (AASHTO), or another nationally recognized consensus standards organization.

(2)        Portland‑limestone cement. – Portland‑limestone cement conforming to ASTM C595/C595M, Type IL.

SECTION 3.(b)  Code Amendments Required. – To implement this section, the following shall apply:

(1)        The Building Code Council shall, in accordance with G.S. 143‑138(a) and G.S. 143‑138(d), amend those parts of the North Carolina State Building Code volumes specified in subdivisions (1) through (9) of G.S. 143‑138(a) that apply to commercial and multifamily construction to explicitly allow the use of portland‑limestone cement and nationally recognized cement substitutes, as defined in subsection (a) of this section, in construction regulated by those parts of the Code.

(2)        The Residential Code Council shall, in accordance with G.S. 143‑138(a) and G.S. 143‑138(d), amend those parts of the North Carolina State Building Code volumes specified in subdivisions (1) through (10) of G.S. 143‑138(a) that apply to residential construction to explicitly allow the use of portland‑limestone cement and nationally recognized cement substitutes, as defined in subsection (a) of this section, in construction regulated by those parts of the Code.

SECTION 3.(c)  Effective Date. – This section is effective when it becomes law.

PART IV. e‑permitting grant funds

SECTION 4.(a)  Appropriation. – There is appropriated from the General Fund to the Department of Information Technology the sum of twenty million dollars ($20,000,000) in nonrecurring funds for the 2026‑2027 fiscal year to be provided in the form of grants to local governments in this State for the purpose of establishing e‑permitting systems.

SECTION 4.(b)  Effective Date. – This section becomes effective July 1, 2026.

part v. effective date

SECTION 5.  Effective Date. – Except as otherwise provided, this act is effective when it becomes law.