AN ACT to establish a pilot program to permit construction of shoreline stabilization projects under certain conditions.

The General Assembly of North Carolina enacts:

SECTION 1.  Article 7 of Chapter 113A of the General Statutes is amended by adding a new section to read:

§ 113A‑115.2.  Shoreline stabilization pilot projects.

(a)        Notwithstanding any limitation of G.S. 113A‑115.1, there is established a pilot program to authorize construction of shoreline stabilization pilot projects at locations statewide where oceanfront homes face imminent danger of being lost to the ocean. The North Carolina Collaboratory established pursuant to G.S. 116‑255 shall evaluate potential locations and shall recommend a limited number of pilot projects sufficient to evaluate different shoreline conditions, erosion risks, and management approaches, based on all of the following criteria:

(1)        The severity and immediacy of the erosion threat at the location.

(2)        The potential for adverse effects of the pilot project proposed to be sited at the location on adjacent properties and shorelines.

(3)        The scientific value of monitoring data that can be gathered for a pilot project proposed to be sited at the location.

(4)        The willingness of a governing entity with jurisdiction over the location at which a pilot project is proposed to be sited to comply with requirements of this section and monitoring protocols to be adopted by the Division pursuant to subsection (b) of this section.

(5)        The economic impact of continued erosion, including potential loss of public or private property, public infrastructure, tax base, transportation access, utilities, or other community assets, if shoreline stabilization measures are not authorized.

(b)        The Division of Coastal Management, in coordination with the Collaboratory, shall prior to construction of any pilot project establish active monitoring protocols for such projects, including a defined monitoring period. No later than 60 days after the conclusion of the monitoring period established for each project, the Division and the Collaboratory shall jointly prepare and submit a report on the monitoring results for the project to the Commission and the General Assembly.

(c)        The governing entity with jurisdiction over the location at which a shoreline stabilization project is to be sited, whether a unit of local government or homeowners association, shall be:

(1)        Required to do all of the following:

a.         Fund the pilot project in its entirety. No State funds shall be used for construction of a pilot project unless the General Assembly specifically appropriates funds for that project.

b.         Obtain all federal, State, and local permits and authorizations required for the pilot project.

c.         Prior to construction, post a bond or other financial assurance instrument in an amount sufficient to cover the cost of removal of the structure.

(2)        Exempt from any limitations or requirements of G.S. 113A‑115.1 for the duration of the active pilot project, defined as the period during which the stabilization structure is in place and active monitoring is being conducted. This exemption shall remain in effect for the permitted life of the structure, including any required monitoring period, and shall terminate upon removal of the structure, expiration or revocation of the permit, or a final agency determination requiring removal, whichever occurs first.

(d)       As used in this section, the following definitions apply:

(1)        Sheet pile wall is an erosion control structure that consists of a driven, vibrated, or pushed row of interlocking vertical pile segments to form a continuous wall.

(2)        Shoreline stabilization pilot project means a permanent erosion control structure, as that term is defined under G.S. 113A‑115.1, and including a sheet pile wall and wave attenuation system.

SECTION 2.  The sum of eight hundred fifty thousand dollars ($850,000) in nonrecurring funds for the 2026‑2027 fiscal year is appropriated from the General Fund to the North Carolina Collaboratory at the University of North Carolina at Chapel Hill (Collaboratory) to do both of the following:

(1)        Carry out the study required under Section 1 of this act, including expenses related to consultants or faculty, staff, or students affiliated with institutions of higher education.

(2)        Update the State's Beach and Inlet Management Plan (Plan), notwithstanding subsections (c) and (d) of Section 13.9 of S.L. 2000‑67. The updated Plan should catalog current erosion concerns along the State's oceanfront and estuarine shorelines, evaluate the dredging needs of inlets and navigational channels, and recommend a prioritized schedule of maintenance dredging projects with beneficial placement of beach‑compatible material. In conducting this work, the Collaboratory shall coordinate with the Division of Coastal Management of the Department of Environmental Quality, the United States Army Corps of Engineers, and other knowledgeable coastal authorities. The Collaboratory shall incorporate the findings of the study required by Section 1 of this act, whether preliminary or final, into the final Beach and Inlet Management Plan update. Funds appropriated to the Collaboratory under this section may be used for consultants or faculty, staff, or students affiliated with institutions of higher education to carry out the Plan update. The Collaboratory shall issue the updated plan no later than December 1, 2027.

SECTION 3.  The Department of Environmental Quality shall amend the management program it adopted pursuant to the federal Coastal Zone Management Act, 16 U.S.C. § 1451, et seq., to ensure the management program is consistent with G.S. 113A‑115.2, as enacted by Section 1 of this act, and shall seek approval of the proposed amended management plan by the United States Secretary of Commerce or the Secretary's authorized designee no later than six months after the effective date of this act.

SECTION 4.  This act is effective when it becomes law.