AN ACT to amend various laws relating to energy and environmental matters.

The General Assembly of North Carolina enacts:

PART I. REQUIRE THE DEPARTMENT OF ENVIRONMENTAL QUALITY TO REPORT QUARTERLY ON APPLICATIONS FOR PERMITS REQUIRED FOR NATURAL GAS PIPELINES AND GAS‑FIRED ELECTRIC GENERATION FACILITIES

SECTION 1.(a)  Part 1 of Article 7 of Chapter 143B of the General Statutes is amended by adding a new section to read:

§ 143B‑279.20.  Report on Department activity to process applications for permits required for natural gas pipelines and gas‑fired electric generation facilities.

The Department of Environmental Quality shall report on any applications received for permits required for siting or operation of natural gas pipelines and gas‑fired electric generation facilities within the State, and activities of the Department to process such applications, including tracking of processing times. The processing time tracked shall include (i) the total processing time from when an initial permit application is received to issuance or denial of the permit and (ii) the processing time from when a complete permit application is received to issuance or denial of the permit. The Department shall report quarterly to the Joint Legislative Commission on Energy Policy pursuant to this section.

SECTION 1.(b)  This section is effective when it becomes law and applies to applications for permits for natural gas pipelines and gas‑fired electric generation facilities pending on or received on or after that date. The Department shall submit the initial report due pursuant to G.S. 143B‑279.20, as enacted by this section, no later than October 1, 2024.

PART II. INCREASE THE PUNISHMENT FOR PROPERTY CRIMES COMMITTED AGAINST CRITICAL INFRASTRUCTURE, INCLUDING PUBLIC WATER SUPPLIES, WASTEWATER TREATMENT FACILITIES, AND MANUFACTURING FACILITIES, AND MAKE CONFORMING CHANGES TO UPDATE STATUTES RELATING TO DAMAGE TO UTILITIES

SECTION 2.(a)  G.S. 14‑159.1 reads as rewritten:

§ 14‑159.1.  Contaminating or injuring a public water system.system; injuring a wastewater treatment facility.

(a)        A person commits the offense of contaminating a public water system, as defined in G.S. 130A‑313(10), if he willfully or wantonly:Contaminating a Public Water System. –

(1)        Contaminates, adulterates or otherwise impurifies or attempts It is unlawful to knowingly and willfully contaminate, adulterate, or otherwise impurify, or attempt to contaminate, adulterate or otherwise impurify impurify, the water in a public water system, as defined in G.S. 130A‑313(10), including the water source, with any toxic chemical, biological agent or radiological substance that is harmful to human health, except those added in approved concentrations for water treatment operations; oroperations.

(2)        Damages or tampers with the property or equipment of a public water system with the intent to impair the services of the public water system.

(b)        Injuring a Public Water System. – It is unlawful to knowingly and willfully stop, obstruct, impair, weaken, destroy, injure, or otherwise damage, or attempt to stop, obstruct, impair, weaken, destroy, injure, or otherwise damage, the property or equipment of a public water system, as defined in G.S. 130A‑313(10), with the intent to impair the services of the public water system.

(c)        Injuring a Wastewater Treatment System. – It is unlawful to knowingly and willfully stop, obstruct, impair, weaken, destroy, injure, or otherwise damage, or attempt to stop, obstruct, impair, weaken, destroy, injure, or otherwise damage, the property or equipment of a wastewater treatment system that is owned or operated by a (i) public utility, as that term is defined under G.S. 62‑3, or (ii) local government unit, as defined in G.S. 159G‑20(13). For purposes of this section, the term wastewater treatment facility means the various facilities and devices used in the treatment of sewage, industrial waste, or other wastes of a liquid nature, including the necessary interceptor sewers, outfall sewers, nutrient removal equipment, pumping equipment, power and other equipment, and their appurtenances.

(b)(d)   Any person who commits the offense defined in Punishment. – A person who violates subsection (a), (b), or (c) of this section is guilty of a Class C felony. Additionally, a person who violates subsection (a), (b), or (c) of this section shall be ordered to pay a fine of two hundred fifty thousand dollars ($250,000).

(e)        Merger. – Each violation of this section constitutes a separate offense and shall not merge with any other offense.

(f)        Civil Remedies. – Any person whose property or person is injured by reason of a violation of subsection (a), (b), or (c) of this section shall have a right of action on account of such injury done against the person who committed the violation and any person who acts as an accessory before or after the fact, aids or abets, solicits, conspires, or lends material support to the violation of this section. If damages are assessed in such case, the plaintiff shall be entitled to recover treble the amount of damages fixed by the verdict or punitive damages pursuant to Chapter 1D of the General Statutes, together with costs, including attorneys' fees. A violation of subsection (a), (b), or (c) of this section shall constitute willful or wanton conduct within the meaning of G.S. 1D‑5(7) in any civil action filed as a result of the violation. The rights and remedies provided by this subsection are in addition to any other rights and remedies provided by law. For purposes of this subsection, the term damages includes actual and consequential damages.

(g)        The provisions of subsection (f) of this section relating to treble damages shall not be made known to the trier of fact through any means, including voir dire, the introduction into evidence, argument, or instructions to the jury.

(h)        Nothing in this section shall apply to work or activity that is performed at or on a public water supply or wastewater treatment facility by the owner or operator of the facility, or an agent of the owner or operator authorized to perform such work or activity by the owner or operator.

(i)         For purposes of this section, the term property or equipment shall include hardware, software, or other digital infrastructure necessary for the operations of a public water system or wastewater treatment system.

SECTION 2.(b)  G.S. 143‑152 is repealed.

SECTION 2.(c)  G.S. 62‑323 reads as rewritten:

§ 62‑323.  Willful injury to property of public utility a misdemeanor.felony.

(a)        If any person shall willfully do or cause to be done any act or acts whatever whereby any building, construction or work of any public utility, or any engine, machine or structure or any matter or thing appertaining to the same same, including hardware, software, or other digital infrastructure necessary for the operations of the public utility, shall be stopped, obstructed, impaired, weakened, injured or destroyed, he shall be guilty of a Class 1 misdemeanor.Class C felony.

(b)        Merger. – Each violation of this section constitutes a separate offense and shall not merge with any other offense.

(c)        Civil Remedies. – Any person whose property or person is injured by reason of a violation of subsection (a) of this section shall have a right of action on account of such injury done against the person who committed the violation and any person who acts as an accessory before or after the fact, aids or abets, solicits, conspires, or lends material support to the violation of this section. If damages are assessed in such case, the plaintiff shall be entitled to recover treble the amount of damages fixed by the verdict or punitive damages pursuant to Chapter 1D of the General Statutes, together with costs, including attorneys' fees. A violation of subsection (a) of this section shall constitute willful or wanton conduct within the meaning of G.S. 1D‑5(7) in any civil action filed as a result of the violation. The rights and remedies provided by this subsection are in addition to any other rights and remedies provided by law. For purposes of this subsection, the term damages includes actual and consequential damages.

(d)       The provisions of subsection (c) of this section relating to treble damages shall not be made known to the trier of fact through any means, including voir dire, the introduction into evidence, argument, or instructions to the jury.

(e)        The provisions of this section shall only apply to conduct resulting in injury to a public utility, or property thereof, not otherwise covered by G.S. 14‑150.2, 14‑154, or 14‑159.1.

(f)        Nothing in this section shall apply to work or activity that is performed at or on a public utility by the owner or operator of the utility, or an agent of the owner or operator authorized to perform such work or activity by the owner or operator.

SECTION 2.(d)  Article 22 of Chapter 14 of the General Statutes is amended by adding a new section to read:

§ 14‑150.3.  Injuring manufacturing facility.

(a)        Injuring a Manufacturing Facility. – It is unlawful to knowingly and willfully stop, obstruct, impair, weaken, destroy, injure, or otherwise damage, or attempt to stop, obstruct, impair, weaken, destroy, injure, or otherwise damage, the property or equipment of a manufacturing facility. For purposes of this section: (i) the term manufacturing facility means a facility used for the lawful production or manufacturing of goods; and (ii) the term property or equipment shall include hardware, software, or other digital infrastructure necessary for the operations of the manufacturing facility.

(b)        Punishment. – A person who violates subsection (a) of this section is guilty of a Class C felony. Additionally, a person who violates subsection (a) of this section shall be ordered to pay a fine of two hundred fifty thousand dollars ($250,000).

(c)        Merger. – Each violation of this section constitutes a separate offense and shall not merge with any other offense.

(d)       Civil Remedies. – Any person whose property or person is injured by reason of a violation of subsection (a) of this section shall have a right of action on account of such injury done against the person who committed the violation and any person who acts as an accessory before or after the fact, aids or abets, solicits, conspires, or lends material support to the violation of this section. If damages are assessed in such case, the plaintiff shall be entitled to recover treble the amount of damages fixed by the verdict or punitive damages pursuant to Chapter 1D of the General Statutes, together with costs, including attorneys' fees. A violation of subsection (a) of this section shall constitute willful or wanton conduct within the meaning of G.S. 1D‑5(7) in any civil action filed as a result of the violation. The rights and remedies provided by this subsection are in addition to any other rights and remedies provided by law. For purposes of this subsection, the term damages includes actual and consequential damages.

(e)        The provisions of subsection (d) of this section relating to treble damages shall not be made known to the trier of fact through any means, including voir dire, the introduction into evidence, argument, or instructions to the jury.

(f)        Nothing in this section shall apply to (i) work or activity that is performed at or on a manufacturing facility by the owner or operator of the facility, or an agent of the owner or operator authorized to perform such work or activity by the owner or operator, and (ii) lawful activity authorized or required pursuant to State or federal law.

SECTION 2.(e)  G.S. 1D‑27 reads as rewritten:

§ 1D‑27.  Injuring energy energy, water, wastewater, or manufacturing facility; exemption from cap.

G.S. 1D‑25(b) shall not apply to a claim for punitive damages for injury or harm arising from actions of the defendant that constitute a violation of G.S. 14‑150.2(b).G.S. 14‑150.2(b), 14‑150.3(a), 14‑159.1(a), (b), or (c), or 62‑323(a).

SECTION 2.(f)  Prosecutions for offenses committed before the effective date of this act are not abated or affected by this act, and the statutes that would be applicable but for this act remain applicable to those prosecutions.

SECTION 2.(g)  This section becomes effective December 1, 2024, and applies to offenses committed on or after that date.

PART III. PROHIBIT THE ACQUISITION OF QUARTZ MINING OPERATIONS AND LANDS CONTAINING HIGH PURITY QUARTZ BY FOREIGN GOVERNMENTS DESIGNATED AS ADVERSARIAL BY THE UNITED STATES DEPARTMENT OF COMMERCE

SECTION 3.(a)  Chapter 64 of the General Statutes is amended by adding a new Article to read:

Article 3.

Prohibit Adversarial Foreign Government Acquisition of High Purity Quartz.

§ 64‑50.  Title.

This act shall be known and be cited as the North Carolina High Purity Quartz Protection Act.

§ 64‑51.  Purpose.

The General Assembly finds that high purity quartz is a highly valuable resource used in the manufacture of semiconductors, optical fibers, circuit boards, and other technologically advanced components and it is therefore in the public interest for the State to guard its deposits of high purity quartz from the potential of adversarial foreign government control in order to protect our vital mineral and economic resources.

§ 64‑52.  Definitions.

As used in this Article, the following definitions apply:

(1)        Adversarial foreign government. – A state‑controlled enterprise or the government of a foreign nation that has received a designation under 15 C.F.R. § 7.4 from a determination by the United States Secretary of Commerce that the entity has engaged in a long‑term pattern or serious instances of conduct significantly adverse to the national security of the United States or security and safety of United States persons.

(2)        Controlling interest. – Possession of more than fifty percent (50%) of the ownership interest in an entity. The term also includes possession of fifty percent (50%) or less of the ownership interest in an entity if an owner directs the business and affairs of the entity without the requirement or consent of any other party.

(3)        High purity quartz. – A mineral made of silicon dioxide and containing fewer than 50 parts per million of impurity elements.

(4)        Interest. – Any estate, remainder, or reversion, or any portion of the estate, remainder, or reversion, or an option pursuant to which one party has a right to cause the transfer of legal or equitable title to land covered by G.S. 64‑53(a); or ownership or partial ownership of a mining operation covered under G.S. 64‑53(a).

(5)        State‑controlled enterprise. – A business enterprise, however denominated, in which a foreign government has a controlling interest.

§ 64‑53.  Adversarial foreign government acquisition of high purity quartz resources prohibited.

(a)        Notwithstanding any provision of law to the contrary, no adversarial foreign government shall purchase, acquire, lease, or hold any interest in the following:

(1)        A quartz mining operation.

(2)        Land containing commercially valuable amounts of high purity quartz.

(b)        Any transfer of an interest in land or a mining operation in violation of this section shall be void.

(c)        The responsibility for determining whether an individual or other entity is subject to this Article rests solely with the United States Secretary of Commerce and the State of North Carolina and no other individual or entity. An individual or other entity who is not an adversarial foreign government shall bear no civil or criminal liability for failing to determine or make inquiry of whether an individual or other entity is an adversarial foreign government.

SECTION 3.(b)  This section is effective when it becomes law and applies only to ownership interests acquired on and after that date.

PART IV. EXPAND REQUIREMENTS FOR ISSUANCE OF 401 CERTIFICATIONS BY THE DEPARTMENT OF ENVIRONMENTAL QUALITY TO PROJECTS LOCATED AT AN EXISTING OR FORMER ELECTRIC GENERATING FACILITY

SECTION 4.(a)  G.S. 143‑214.1A reads as rewritten:

§ 143‑214.1A.  Water quality certification requirements for certain projects.

(a)        The following requirements shall govern applications for certification filed with the Department pursuant to section 401 of the Clean Water Act, 33 U.S.C. § 1341(a)(1), for maintenance dredging projects partially funded by the Shallow Draft Navigation Channel Dredging and Aquatic Weed Fund Fund, electric generation projects located at an existing or former electric generating facility, and projects involving the distribution or transmission of energy or fuel, including natural gas, diesel, petroleum, or electricity:

….

SECTION 4.(b)  This section is effective when it becomes law and applies to applications for 401 Certification pending or submitted on or after that date.

PART V. prohibit public water and sewer systems from imposing unauthorized conditions and implementing preference systems for allocating service to residential development

SECTION 5.(a)  Chapter 162A of the General Statutes is amended by adding a new Article to read:

Article 11.

Miscellaneous.

§ 162A‑900.  Limitations on allocating service for residential development.

(a)        For purposes of this section, residential development means new development of single‑family or multifamily housing.

(b)        A local government unit, as defined in G.S. 162A‑201, shall not require an applicant for water or sewer service for residential development to agree to any condition not otherwise authorized by law, or to accept any offer by the applicant to consent to any condition not otherwise authorized by law. These conditions include, without limitation, any of the following:

(1)        Payment of taxes, impact fees or other fees, or contributions to any fund.

(2)        Adherence to any restrictions related to land development or land use, including those within the scope of G.S. 160D‑702(c).

(3)        Adherence to any restrictions related to building design elements within the scope of G.S. 160D‑702(b).

(c)        A local government unit, as defined in G.S. 162A‑201, shall not implement a scoring or preference system to allocate water or sewer service among applicants for water or sewer service for residential development that does any of the following:

(1)        Includes consideration of building design elements, as defined in G.S. 160D‑702(b).

(2)        Sets a minimum square footage of any structures subject to regulation under the North Carolina Residential Code.

(3)        Requires a parking space to be larger than 9 feet wide by 20 feet long unless the parking space is designated for handicap, parallel, or diagonal parking.

(4)        Requires additional fire apparatus access roads into developments of one‑ or two‑family dwellings that are not in compliance with the required number of fire apparatus access roads into developments of one‑ or two‑family dwellings set forth in the Fire Code of the North Carolina Residential Code.

SECTION 5.(b)  This section is effective when it becomes law.

PART VI. SWINE FARM SITING ACT TECHNICAL CORRECTION

SECTION 6.(a)  G.S. 106‑803(a2) reads as rewritten:

(a2)    No component of a liquid animal waste management system for which a permit is required under Part 1 or 1A Part 1A of Article 21 of Chapter 143 of the General Statutes, other than a land application site, shall be constructed on land that is located within the 100‑year floodplain.

SECTION 6.(b)  G.S. 106‑805 reads as rewritten:

§ 106‑805.  Written notice of swine farms.

Any person who intends to construct a swine farm whose animal waste management system is subject to a permit under Part 1 or 1A Part 1A of Article 21 of Chapter 143 of the General Statutes shall, after completing a site evaluation and before the farm site is modified, notify all adjoining property owners; all property owners who own property located across a public road, street, or highway from the swine farm; the county or counties in which the farm site is located; and the local health department or departments having jurisdiction over the farm site of that person's intent to construct the swine farm. This notice shall be by certified mail sent to the address on record at the property tax office in the county in which the land is located. Notice to a county shall be sent to the county manager or, if there is no county manager, to the chair of the board of county commissioners. Notice to a local health department shall be sent to the local health director. The written notice shall include all of the following:

(1)        The name and address of the person intending to construct a swine farm.

(2)        The type of swine farm and the design capacity of the animal waste management system.

(3)        The name and address of the technical specialist preparing the waste management plan.

(4)        The address of the local Soil and Water Conservation District office.

(5)        Information informing the adjoining property owners and the property owners who own property located across a public road, street, or highway from the swine farm that they may submit written comments to the Division of Water Resources, Department of Environmental Quality.

PART IX. NATURAL GAS LOCAL DISTRIBUTION COMPANIES COST RECOVERY MODIFICATIONS

SECTION 9.(a)  G.S. 62‑133.4 reads as rewritten:

§ 62‑133.4.  Gas cost adjustment for natural gas local distribution companies.

…

(c)        Each natural gas local distribution company shall submit to the Commission information and data for an historical 12‑month test period concerning the utility's actual cost of gas, volumes of purchased gas, sales volumes, negotiated sales volumes, and transportation volumes. This information and data shall be filed on an annual basis in the form and detail and at the time required by the Commission. The Commission, upon notice and hearing, shall compare the utility's prudently incurred costs with costs recovered from all the utility's customers that it served during the test period. If those prudently incurred costs are greater or less than the recovered costs, the Commission shall, subject to G.S. 62‑158, require the utility to refund any overrecovery by credit to bill or through a decrement in its rates and shall permit the utility to recover any deficiency through an increment in its rates. If the Commission finds the overrecovery or deficiency has been or is likely to be substantially reduced, negated, or reversed before or during the period in which it would be credited or recovered, the Commission, in its discretion, may order the utility to make an appropriate adjustment or no adjustment to its rates, consistent with the public interest.

…

(d1)     The utility shall not recover from ratepayers, in any rate recovery proceeding or rider, the incremental cost of natural gas attributable to renewable energy biomass resources that exceeds the average system cost of gas unattributable to renewable energy biomass resources calculated and filed with the Commission pursuant to subsection (c) of this section. Each natural gas local distribution company that incurs costs attributable to renewable energy biomass resources shall submit the utility's actual cost thereof to the Commission monthly for purposes of determining the total amount of natural gas costs recoverable under this section.

(e)        As used in this section, the word cost or costs shall be defined by Commission rule or order and may include all costs related to the purchase and transportation of natural gas to the natural gas local distribution company's system.The following definitions apply in this section:

(1)        Cost or costs shall be defined by Commission rule or order and may include all costs related to the production, purchase, and transportation of natural gas to the natural gas local distribution company's system.

(2)        Domestic wastewater means water‑carried human wastes together with all other water‑carried wastes normally present in wastewater from non‑industrial processes.

(3)        Natural gas or gas includes gas derived from renewable energy biomass resources.

(4)        Renewable energy biomass resources includes agricultural waste, animal waste, wood waste, spent pulping liquors, organic waste, combustible residues, combustible gases, energy crops, landfill methane, or domestic wastewater.

SECTION 9.(b)  G.S. 62‑133.7A reads as rewritten:

§ 62‑133.7A.  Rate adjustment mechanism mechanisms for natural gas local distribution company rates.

(a)        In setting rates for a natural gas local distribution company in a general rate case proceeding under G.S. 62‑133, the Commission may adopt, implement, modify, or eliminate a rate adjustment mechanism mechanisms to enable the company to recover the prudently incurred capital investment and associated costs of complying any of the following, including a return based on the company's then authorized return:

(1)        Complying with federal gas pipeline safety requirements, including a return based on the company's then authorized return.requirements.

(2)        Producing and transporting natural gas, as defined in G.S. 62‑133.4(e)(3), or consistent with the intent and purpose of G.S. 62‑133.4.

(b)        The Commission shall adopt, implement, modify, or eliminate a any of the rate adjustment mechanism mechanisms authorized under this section only upon a finding by the Commission that the mechanism is in the public interest.

SECTION 9.(c)  This section is effective when it becomes law and applies to rate case proceedings filed on or after that date.

PART X. EXCLUDE AQUACULTURE FROM THE DEFINITION OF DEVELOPMENT FOR PURPOSES OF CAMA AND LIMIT THE AUTHORITY OF THE MARINE FISHERIES COMMISSION TO ADOPT RULES REGULATING AQUACULTURE EQUIPMENT

SECTION 10.(a)  G.S. 113A‑103 reads as rewritten:

§ 113A‑103.  Definitions.

…

(5)       a.         Development means any activity in a duly designated area of environmental concern (except as provided in paragraph b of this subdivision) involving, requiring, or consisting of the construction or enlargement of a structure; excavation; dredging; filling; dumping; removal of clay, silt, sand, gravel or minerals; bulkheading, driving of pilings; clearing or alteration of land as an adjunct of construction; alteration or removal of sand dunes; alteration of the shore, bank, or bottom of the Atlantic Ocean or any sound, bay, river, creek, stream, lake, or canal; or placement of a floating structure structure, except a floating structure used primarily for aquaculture as defined in G.S. 106‑758 and associated with an active shellfish cultivation lease area or franchise, in an area of environmental concern identified in G.S. 113A‑113(b)(2) or (b)(5).

b.         The following activities including the normal and incidental operations associated therewith shall not be deemed to be development under this section:

…

4.         The use of any land for the purposes of planting, growing, or harvesting plants, crops, trees, or other agricultural or forestry products, including normal private road construction, raising livestock or poultry, uses related to aquaculture and aquaculture facilities as defined in G.S. 106‑758 and associated with an active shellfish cultivation lease area or franchise, or for other agricultural purposes except where excavation or filling affecting estuarine waters (as defined in G.S. 113‑229) or navigable waters is involved;

…

(5a)      Floating structure means any structure, not a boat, supported by a means of floatation, designed to be used without a permanent foundation, which is used or intended for human habitation or commerce. A structure shall be considered a floating structure when it is inhabited or used for commercial purposes for more than thirty days in any one location. A boat may be considered a floating structure when its means of propulsion has been removed or rendered inoperative.

….

SECTION 10.(b)  G.S. 143B‑289.52 is amended by adding a new subsection to read:

(j)       The Commission may not adopt rules regulating cages, poles, anchoring systems, or any above‑water frames or structural supports used to suspend or hold in place equipment or floating structures used for aquaculture as defined in G.S. 106‑758.

SECTION 10.(c)  No later than August 1, 2024, the Department of Environmental Quality shall prepare and submit to the United States National Oceanic and Atmospheric Administration for approval by that agency the proposed changes made to Article 7 of Chapter 113A of the General Statutes, as enacted by subsection (a) of this section. The Department of Environmental Quality shall report to the Environmental Review Commission on the status of their activities pursuant to this section quarterly, beginning September 1, 2024, until such time as the General Assembly repeals this reporting requirement.

SECTION 10.(d)  Subsection (a) of this section becomes effective on the later of the following dates and applies to applications for permits pending or filed on or after that date:

(1)        October 1, 2024.

(2)        The first day of a month that is 60 days after the Secretary of the Department of Environmental Quality certifies to the Revisor of Statutes that the National Oceanic and Atmospheric Administration has approved the changes made to Article 7 of Chapter 113A of the General Statutes, as enacted by subsection (a) of this section, as required by subsection (c) of this section. The Secretary shall provide this notice along with the effective date of subsection (a) of this section on its website. The remainder of this section is effective when it becomes law.

PART XII. REMOVE TIME LIMITS ON CERTAIN VUR GRANTS

SECTION 12.  G.S. 159G‑36(d)(2) reads as rewritten:

(2)      Grants for the purpose set forth in G.S. 159‑32(d)(6) G.S. 159G‑32(d)(6) to any single local government unit shall not (i) exceed seven hundred fifty thousand dollars ($750,000) in any fiscal year and (ii) be awarded for more than three consecutive fiscal years.year.

PART XIII. ESTABLISH A TIME LIMIT FOR REVIEW OF APPLICATIONS SUBMITTED TO THE DEPARTMENT OF ENVIRONMENTAL QUALITY FOR WATER DISTRIBUTION SYSTEMS TO CONSTRUCT OR ALTER A PUBLIC WATER SYSTEM

SECTION 13.(a)  G.S. 130A‑328 is amended by adding a new subsection to read:

(c1)    The Department shall perform a review of an application for a water distribution system authorization subject to the following requirements:

(1)        The Department shall review the application within 45 days of receipt of a complete application when a professional engineer provides certification that the design meets or exceeds the Minimum Design Criteria developed by the Department applicable to the project. For purposes of this section, a complete application is defined as an application that includes all of the required components described in the application form.

(2)        The Department shall perform an administrative review of a new application within 10 days of receipt to determine if all required information is included in the application. If the application is complete, the Department shall issue a receipt letter or electronic response stating that the application is complete and that a 45‑calendar‑day technical review period has started as of the date on which the Department received the complete application. If required items or information are not included in the application, the application is incomplete, and the Department shall issue an application receipt letter or electronic response identifying the information required to complete the application before the technical review begins. When the Department receives the required information, the Department shall issue a receipt letter or electronic response specifying that the application is complete and that the 45‑calendar‑day review period has started as of the date on which the Department received the remaining required information.

(3)        If additional information is required to complete the technical review, the Department shall issue a request for additional information required to complete the review, and the 45‑calendar‑day technical review period shall pause until the additional information is received. If the Department does not receive the requested additional information from the applicant within 30 calendar days, the Department shall return the application to the applicant.

(4)        If the Department receives the additional information from the applicant within 30 days, the technical review period review time shall restart, and the Department shall complete its review within the number of days that remained in the technical review period on the date the technical review period was paused by the request for additional information.

(5)        Should the Department not complete its review of the application within the 45‑day technical review period, the application shall be considered deemed approved.

SECTION 13.(b)  This section becomes effective December 1, 2024, and applies to applications submitted on or after that date.

part XIV. AMEND STATUTES AND RULES APPLICABLE TO DOCK, PIER, AND WALKWAY REPLACEMENT IN THE COASTAL AREA

SECTION 14.(a)  Definitions. – For purposes of this section:

(1)        CAMA Rules means 15A NCAC Subchapter 07J (Procedures for Processing and Enforcement of Major and Minor Development Permits, Variance Requests, Appeals from Permit Decisions, Declaratory Rulings, and Static Line Exceptions).

(2)        Replacement of Existing Structures Rule means 15A NCAC 07J .0210 (Replacement of Existing Structures).

SECTION 14.(b)  Replacement of Existing Structure. – Until the effective date of the revised permanent rules that the Coastal Resources Commission is required to adopt pursuant to subsection (d) of this section, the Commission shall implement the Replacement of Existing Structures Rule and the CAMA Rules as provided in subsection (c) of this section.

SECTION 14.(c)  Implementation. – For fixed docks, floating docks, fixed piers, floating piers, or walkways damaged or destroyed by natural elements, fire, or normal deterioration, activity to rebuild the dock, pier, or walkway to its pre‑damage condition shall be considered repair of the structure, and shall not require CAMA permits, without regard to the percentage of framing and structural components required to be rebuilt. At the time a dock, pier, or walkway damaged or destroyed by natural elements, fire, or normal deterioration is repaired, the width and length of the dock, pier, or walkway structure may be enlarged by not more than 5 feet or five percent (5%), whichever is less, and the structure may be heightened, without need for a CAMA permit. The owner shall, however, be required to comply with all other applicable State and federal laws. The provisions of this subsection shall not apply to docks and piers (i) greater than 6 feet in width, (ii) greater than 800 square feet of platform area, or (iii) that are adjacent to a federal navigation channel.

SECTION 14.(d)  Additional Rulemaking Authority. – The Commission shall adopt rules to amend the Replacement of Existing Structures Rule and any other pertinent CAMA Rules consistent with subsection (c) of this section. Notwithstanding G.S. 150B‑19(4), the rules adopted by the Commission pursuant to this section shall be substantively identical to the provisions of subsection (c) of this section. Rules adopted pursuant to this section are not subject to Part 3 of Article 2A of Chapter 150B of the General Statutes. Rules adopted pursuant to this section shall become effective as provided in G.S. 150B‑21.3(b1), as though 10 or more written objections had been received as provided in G.S. 150B‑21.3(b2).

SECTION 14.(e)  Sunset. – This section expires when permanent rules adopted as required by subsection (d) of this section become effective.

SECTION 14.(f)  No later than August 1, 2024, the Department of Environmental Quality shall prepare and submit to the United States National Oceanic and Atmospheric Administration for approval by that agency the proposed changes made to the CAMA Rules, as enacted by this section. The Department of Environmental Quality shall report to the Environmental Review Commission on the status of their activities pursuant to this section quarterly, beginning September 1, 2024, until such time as the General Assembly repeals this reporting requirement.

SECTION 14.(g)  Subsections (a) through (e) of this section become effective on the later of the following dates and apply to applications for permits pending or filed on or after that date:

(1)        October 1, 2024.

(2)        The first day of a month that is 60 days after the Secretary of the Department of Environmental Quality certifies to the Revisor of Statutes that the National Oceanic and Atmospheric Administration has approved the changes made to the CAMA Rules, as enacted by subsections (a) through (e) of this section, as required by subsection (f) of this section. The Secretary shall provide this notice along with the effective date of this act on its website.

SECTION 14.1.(a)  G.S. 160D‑1104 is amended by adding a new subsection to read:

(g)      No later than 60 days after an inspection of a dock, pier, or catwalk or walkway that has been replaced in the coastal area, as that term is defined under G.S. 113A‑103(2), an inspection department shall notify the Division of Coastal Management of the replacement.

SECTION 14.1.(b)  Notwithstanding Section 35 of S.L. 2023‑137, the North Carolina Residential Building Code shall not require a professional engineer or architect to design or otherwise certify the construction of residential docks, piers, or catwalks or walkways.

Part xV. PROHIBIT CERTAIN BACKFLOW PREVENTER Requirements by Public Water Systems

SECTION 15.(a)  Article 10 of Chapter 130A of the General Statutes is amended by adding a new section to read:

§ 130A‑330.  Local authority to require backflow preventers; testing.

(a)        No public water system owned or operated by a local government unit, as that term is defined in G.S. 159G‑20(13), shall require a customer to install a backflow preventer on an existing nonresidential or residential connection, including multifamily dwellings, not otherwise required by State or federal law except where the degree of hazard from the customer's connection is determined to be high by the Department.

(b)        The limitation established in subsection (a) of this section shall not be construed to prohibit requirements for installation of backflow preventers pursuant to the North Carolina Plumbing Code or the North Carolina Fire Code due to retrofit or upfit/fit‑up to the customer's plumbing, facility addition on the customer's property, or change in use of the property served by the connection. The single act of a retrofit or upfit/fit‑up to the customer's plumbing limited to the service line between the home or building and the meter, and without a change in use or facility addition, does not necessitate a backflow preventer. An increase in the flow of water to the home or building, without a change in use or facility addition, does not necessitate a backflow preventer.

(c)        A public water system owned or operated by a local government unit, and its employees, including the Cross Connection Control Operator in Responsible Charge, is immune from civil liability in tort from any loss, damage, or injury arising out of or relating to the backflow of water into potable water supply systems where a backflow preventer is not required by State or federal law, or where the degree of hazard from the customer's connection is not determined to be high by the Department.

(d)       The Department shall determine whether the degree of hazard for a service connection is high when the installation of a backflow preventer is not otherwise required by State or federal law. The Department shall provide notice of such determinations on its website.

(e)        Nothing in this section shall prohibit a public water system owned or operated by a local government unit from requiring the installation of a backflow preventer if the system pays all costs associated with the backflow preventer, including the device, installation, and appropriate landscaping.

(f)        No public water system owned or operated by a local government unit shall require periodic testing more frequently than once every three years for backflow preventers installed or replaced within the last 10 years on residential irrigation systems that do not apply or dispose chemical feeds.

(g)        A public water system owned or operated by a local government, and its employees, including the Cross Connection Control Operator in Responsible Charge, is immune from civil liability in tort from any loss, damage, or injury resulting from compliance with the limitations on periodic testing provided in subsection (f) of this section.

(h)        A public water system owned or operated by a local government unit may accept the results of backflow preventer testing conducted by a plumbing contractor licensed under Article 2 of Chapter 87 of the General Statutes or a certified backflow prevention assembly tester approved by the public water system.

(i)         For purposes of this section, the following definitions apply:

(1)        Backflow preventer means an assembly, device, or method that prohibits the backflow of water into potable water supply systems.

(2)        Certified backflow prevention assembly tester means an individual who holds a certificate of completion from a training program in the testing of backflow preventers.

(3)        High hazard means a cross‑connection or potential cross‑connection involving any substance that could, if introduced into the potable water supply, cause illness or death, spread disease, or have a high probability of causing such effects.

(4)        Qualified instructor means an individual who holds an active and current Cross‑Connection Control Operator certification issued by the Water Treatment Facility Operators Board of Certification.

(5)        Training program means a program of classroom training, education, and instruction and a written practical examination provided by a qualified instructor offered by any of the following:

a.         A public water system owned and operated by a local government unit.

b.         A North Carolina community college.

c.         A North Carolina nonprofit corporation that is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code, whose membership primarily consists of public water systems owned or operated by local government units, that offers other certification programs and provides on‑site technical assistance and training for public water systems across the State.

SECTION 15.(b)  G.S. 150B‑2 reads as rewritten:

§ 150B‑2.  Definitions.

As used in this Chapter, the following definitions apply:

…

(8a)      Rule. – Any agency regulation, standard, or statement of general applicability that implements or interprets an enactment of the General Assembly or Congress or a regulation adopted by a federal agency or that describes the procedure or practice requirements of an agency. The term includes the establishment of a fee and the amendment or repeal of a prior rule. The term does not include the following:

…

m.        Determinations by the Department of Environmental Quality of high hazards pursuant to G.S. 130A‑330.

….

SECTION 15.(c)  This section is effective when it becomes law and applies to requirements for installation or testing of backflow preventers made by a public water supply on or after that date.

part XVI. exempt certain food service establishments from septage management firm permitting requirements

SECTION 16.(a)  G.S. 130A‑291.1 is amended by adding a new subsection to read:

(k)      A food service establishment not involved in pumping or vacuuming a grease appurtenance does not need a permit under this section.

SECTION 16.(b)  This section is effective when it becomes law.

PART XVII. authorize replacement of certain Erosion CONTROL STRUCTURES

SECTION 17.(a)  G.S. 113A‑115.1 reads as rewritten:

§ 113A‑115.1.  Limitations on erosion control structures.

(a)        As used in this section:

(1)        Erosion control structure means a breakwater, bulkhead, groin, jetty, revetment, seawall, or any similar structure.

(1a)      Estuarine shoreline means all shorelines that are not ocean shorelines that border estuarine waters as defined in G.S. 113A‑113(b)(2).

(2)        Ocean shoreline means the Atlantic Ocean, the oceanfront beaches, and frontal dunes. The term ocean shoreline includes an ocean inlet and lands adjacent to an ocean inlet but does not include that portion of any inlet and lands adjacent to the inlet that exhibits characteristics of estuarine shorelines.

(3)        Terminal groin means one or more structures constructed at the terminus of an island or on the side of an inlet, inlet, or where the ocean shoreline converges with Frying Pan Shoals, with a main stem generally perpendicular to the beach shoreline, that is primarily intended to protect the terminus of the island from shoreline erosion and or inlet migration. A terminal groin shall be pre‑filled with beach quality sand and allow sand moving in the littoral zone to flow past around, over, or through the structure. A terminal groin may include other design features, such as a number of smaller supporting structures, that are consistent with sound engineering practices and as recommended by a professional engineer licensed to practice pursuant to Chapter 89C of the General Statutes. A terminal groin is not a jetty.

(b)        No person shall construct a permanent erosion control structure in an ocean shoreline. The Commission shall not permit the construction of a temporary erosion control structure that consists of anything other than sandbags in an ocean shoreline. This subsection shall not apply to any of the following:

(1)        Any permanent erosion control structure that is approved pursuant to an exception set out in a rule adopted by the Commission prior to July 1, 2003.

(2)        Any permanent erosion control structure that was originally constructed prior to July 1, 1974, and that has since been in continuous use to protect an inlet that is maintained for navigation.

(3)        Any terminal groin permitted pursuant to this section.

(b1)      This section shall not be construed to limit the authority of the Commission to adopt rules to designate or protect areas of environmental concern, to govern the use of sandbags, or to govern the use of erosion control structures in estuarine shorelines.

(c)        The Commission may renew a permit for a permanent erosion control structure originally permitted pursuant to a variance granted by the Commission prior to July 1, 1995, if the Commission finds that: (i) the structure will not be enlarged beyond the dimensions set out in the original permit; (ii) there is no practical alternative to replacing the structure that will provide the same or similar benefits; and (iii) the replacement structure will comply with all applicable laws and with all rules, other than the rule or rules with respect to which the Commission granted the variance, that are in effect at the time the structure is replaced.replaced, except as otherwise provided in this subsection. If a permanent erosion control structure originally permitted pursuant to a variance granted by the Commission prior to July 1, 1995, consists of a field of geotextile sand tubes, the field of geotextile sand tubes may be replaced with rock erosion control structures subject to the following criteria:

(1)        The number of rock erosion control structures shall be equal to or less than the number of geotextile sand tubes originally permitted.

(2)        The structure(s) or field of structures may consist of groins, including T‑head or lollipop groins, or breakwaters to be approved by the Division of Coastal Management, in its discretion, or by variance from the Coastal Resources Commission.

(3)        The structure field shall not be enlarged beyond the alongshore dimensions authorized under the original permit, and the aggregate overall length of the rock structures shall not exceed the aggregate overall length of the geotextile sand tubes authorized under the original permit.

(4)        The plans for the work shall be sealed by a professional engineer licensed to practice pursuant to Chapter 89C of the General Statutes with experience in engineering in the coastal area.

The Commission shall permit replacement of the geotextile sand tubes with rock erosion control structures meeting the criteria of subdivisions (1) through (4) of this subsection as replacement of the permanent erosion control structure originally permitted. Such a permanent erosion control structure is not a terminal groin and shall not be subject to the provisions of this section applicable to terminal groins.

…

(g)        The Commission may issue no more than six seven permits for the construction of a terminal groin pursuant to this section, provided that two of the six seven permits may be issued only for the construction of terminal groins on the sides of New River Inlet in Onslow County and Bogue Inlet between Carteret and Onslow Counties.

….

SECTION 17.(b)  No later than August 1, 2024, the Department of Environmental Quality shall prepare and submit to the United States National Oceanic and Atmospheric Administration for approval by that agency the proposed changes made to G.S. 113A‑115.1, as amended by subsection (a) of this section. The Department of Environmental Quality shall report to the Environmental Review Commission on the status of their activities pursuant to this section quarterly, beginning September 1, 2024, until such time as the General Assembly repeals this reporting requirement.

SECTION 17.(c)  Subsection (a) of this section becomes effective on the later of the following dates and applies to applications for permits pending or filed on or after that date:

(1)        October 1, 2024.

(2)        The first day of a month that is 60 days after the Secretary of Environmental Quality certifies to the Revisor of Statutes that the National Oceanic and Atmospheric Administration has approved the changes made to G.S. 113A‑115.1, as amended by subsection (a) of this section, as required by subsection (b) of this section. The Secretary shall provide this notice along with the effective date of this section on its website.

PART XVIII. Add compost to right to farm/Nuisance actions statute

SECTION 18.(a)  G.S. 106‑701 reads as rewritten:

§ 106‑701.  Right to farm defense; nuisance actions.

(a)        No nuisance action may be filed against an agricultural or forestry operation unless all of the following apply:

(1)        The plaintiff is a legal possessor of the real property affected by the conditions alleged to be a nuisance.

(2)        The real property affected by the conditions alleged to be a nuisance is located within one half‑mile of the source of the activity or structure alleged to be a nuisance.

(3)        The action is filed within one year of the establishment of the agricultural or forestry operation or within one year of the operation undergoing a fundamental change.

(a1)      For the purposes of subsection (a) of this section, a fundamental change to the operation does not include any of the following:

(1)        A change in ownership or size.

(2)        An interruption of farming for a period of no more than three years.

(3)        Participation in a government‑sponsored agricultural program.

(4)        Employment of new technology.

(5)        A change in the type of agricultural or forestry product produced.

(a2)      Repealed by Session Laws 2018‑113, s. 10(a), effective June 27, 2018.

(b)        For the purposes of this Article, agricultural operation includes, without limitation, a Type I compost facility, and any facility for the production for commercial purposes of crops, livestock, poultry, livestock products, or poultry products.

….

SECTION 18.(b)  This section is effective when it becomes law and applies to actions filed on or after that date.

PART XVIII.I RURAL ELECTRIFICATION AUTHORITY/FEE UPDATE

SECTION 18.1.(a)  G.S. 117‑3 reads as rewritten:

§ 117‑3.  Authority not granted power to fix rates or order line extensions; right of suggestion and petition.

The Except as provided in G.S. 117‑3.1(b), the Authority itself shall not be a rate‑making body, and shall have no power to fix the rates or service charges, or to order the extension of lines by the power companies. The Except as provided in G.S. 117‑3.1(b), the function of making rates and service charges and orders for the extension of lines shall remain in the Utilities Commission of North Carolina, and the Authority shall only have the right of suggestion and petition to the Utilities Commission of its opinion as to the proper rates and service charges and line extensions, and no rate recommended or suggested by the Authority shall be effective until approved by the Utilities Commission: Provided, that if the Utilities Commission of North Carolina does not have the right under the existing law to fix service charges in addition to the rates prescribed for electrical energy, and the power to order line extensions, such power and authority is hereby granted the Utilities Commission of North Carolina to fix and promulgate service charges in addition to rates in any community which avails itself of this Article, and form a corporation authorized hereunder to be known as electric membership corporation, and to order line extensions when it shall determine that the same is proper and feasible.

SECTION 18.1.(b)  G.S. 117‑3.1 reads as rewritten:

§ 117‑3.1.  Regulatory fee.

…

(b)        Rate. – For each fiscal year, year in which the General Assembly does not establish a rate, the regulatory fee shall be the greater of the following:

(1)        The rate established by the General Assembly for that year for each electric membership corporation's North Carolina meter connected for service and each telephone membership corporation's North Carolina access line connected for service for each quarter of the year.

(2)        Four cents (4¢) rate proposed by the Authority in accordance with this subsection, which shall not be more than six cents (6¢) for each electric membership corporation's North Carolina meter connected for service and for each telephone membership corporation's North Carolina access line connected for service for each quarter of the year.

When the Authority prepares its budget request for the upcoming fiscal year, the Authority shall propose a rate for the regulatory fee. For fiscal years beginning in an odd‑numbered year, that proposed rate shall be included in the budget message the Governor submits to the General Assembly pursuant to G.S. 143C‑3‑5. For fiscal years beginning in an even‑numbered year, that proposed rate shall be included in a special budget message the Governor shall submit to the General Assembly. If the General Assembly decides to set the regulatory fee at a rate higher than the rate in subdivision (2) of this subsection, it shall set the regulatory fee by law.

The regulatory fee may not exceed the amount necessary to generate funds sufficient to defray the estimated cost of the operations of the Authority for the upcoming fiscal year, including a reasonable margin for a reserve fund. The amount of the reserve may not exceed the estimated cost of operating the Authority for the upcoming fiscal year. In calculating the amount of the reserve, the General Assembly shall consider all relevant factors that may affect the cost of operating the Authority or a possible unanticipated increase or decrease in North Carolina electric meters and North Carolina telephone access lines.

….

PART XVIII.IA. AMEND ELIGIBILITY CRITERIA FOR ANIMAL WASTE FERTILIZER CONVERSION COST-SHARE PROGRAM

SECTION 18.1A.  Section 10.4(e) of S.L. 2023-134 reads as rewritten:

SECTION 10.4.(e)  Definitions. – The following definitions apply in this section:

(1)        Eligible entity. – Any person who owns or operates an anaerobic lagoon or other liquid animal waste management system treating animal waste from a livestock operation that generates sludge suitable for conversion into fertilizer products.products, or any person converting sludge from an anaerobic lagoon or other liquid animal waste management system treating animal waste from a livestock operation into fertilizer products.

(2)        Eligible project. – Costs associated with the site engineering, permitting, acquisition, or installation of sludge collection and processing equipment needed for production of fertilizers and other soil additives meeting applicable State and federal requirements for use in agricultural operations.

(3)        Foundation. – The NC Foundation for Soil and Water Conservation, Inc., a nonprofit corporation.

(4)        Livestock. – Cattle, sheep, swine, goats, farmed cervids, or bison.

(5)        Person. – Any individual, trust, estate, partnership, receiver, association, company, limited liability company, corporation, or other entity or group.

(6)        Program. – The Animal Waste Fertilizer Conversion Cost‑Share Program created by this section.

PART XVIII.II. MODERNIZE WASTEWATER PERMITTING TO SUPPORT ENVIRONMENTALLY SOUND ECONOMIC DEVELOPMENT.

SECTION 18.2.(a)  The General Assembly finds all of the following:

(1)        Residents of the State should be assured enjoyment of, and access to, proven and reasonable methods of treating and disposing of wastewater that embrace new technologies.

(2)        As the State continues to grow and attract businesses, it is critical that wastewater treatment and disposal facilities are provided for those businesses; and adequate and affordable housing that is proximate to those businesses must be available to assure the success of those businesses.

(3)        Residents of the State should be assured treatment in an equitable manner to their counterparts within other states comprising the United States Environmental Protection Agency's (USEPA) Region 4 where permits are authorized and issued for the discharge of treated wastewater from municipalities, businesses, and developments to, for example, receiving waters in which natural flow is intermittent, or under certain circumstances non‑existent (Alabama Admin. Code r. 335‑6‑10‑.09).

(4)        The discharge of treated wastewater to low flow or zero flow receiving waters is of low risk to the environment, protects and improves water quality, and provides the most prudent use of ratepayer funds.

(5)        For all these reasons, it is necessary to establish methodologies and rules for the discharge of treated domestic wastewaters with low risk following site specific criteria to surface waters of the State, including wetlands, perennial streams, and unnamed tributaries of named and classified streams and intermittent streams or drainage courses where the 7Q10 flow or 30Q2 flow of the receiving waters is estimated to be low flow or zero flow, as determined by the United States Geological Survey (USGS).

(6)        This act preserves and maintains the authority of the Department of Environmental Quality (Department) for appropriate review, including opportunities for public comment, and requires the Department and the Environmental Management Commission (Commission) to seek necessary approvals from USEPA to adopt temporary and permanent rules to authorize discharges of wastewater to such receiving waters.

SECTION 18.2.(b)  G.S. 143‑215.1(c8) is repealed.

SECTION 18.2.(c)  Section 12.9 of S.L. 2023‑134 is repealed.

SECTION 18.2.(d)  No later than August 1, 2024, the Department of Environmental Quality (Department) and the Environmental Management Commission (Commission) shall develop and submit to the United States Environmental Protection Agency for USEPA's approval draft rules that establish methodologies and permitting requirements for the discharge of treated domestic wastewaters with low risk following site‑specific criteria to surface waters of the State, including wetlands, perennial streams, and unnamed tributaries of named and classified streams and intermittent streams or drainage courses where the 7Q10 flow or 30Q2 flow of the receiving water is estimated to be low flow or zero flow, or under certain conditions non‑existent, as determined by the United States Geological Survey (USGS). Within 20 days of the date USEPA approves the draft rules submitted pursuant to this subsection, the Commission shall initiate the process for temporary and permanent rules pursuant to Chapter 150B of the General Statutes. The draft rules submitted to USEPA for approval shall include all of the following:

(1)        Defined terms. –

a.         Treated domestic wastewater shall mean sewage and wastewater comprised of waste and wastewater from household, commercial or light industrial operations (e.g., homes, restaurants, car washes, laundromats servicing only domestic laundry) excluding any industrial process wastewater regulated by USEPA under the Categorical Pretreatment Standards.

b.         Low‑risk discharges means discharges of 2 million gallons per day or less of treated domestic wastewater when the dissolved oxygen content (DO) of the effluent is significantly higher (1.5 mg/l or greater) than the DO of the receiving water during low flow periods and the biological oxygen demand content (BOD) of the effluent is significantly lower (1.5 mg/l or more) than the DO of the effluent.

c.         Sag means a reduction in the existing DO in the background surface receiving water to which treated wastewater will be discharged. Sag is typically related to nutrient elements within treated wastewater, which may promote the growth of oxygen‑consuming micro‑organisms, increasing the BOD, which at elevated levels may reduce DO in the background surface water body.

(2)        Criteria for permitting. –

a.         Applicants shall be required to demonstrate, through an analysis comparing the limits of the NPDES permit to the characteristics of the receiving water, that a proposed discharge meets criteria for a low‑risk discharge as defined in this subsection. When a discharge is determined to be low‑risk, the applicant shall demonstrate using simple modeling of the applicant's choosing, provided that the model chosen is utilized elsewhere in USEPA Region 4, such as the Streeter‑Phelps model used in the State of Alabama, to show that the Sag, if any, in the DO of the receiving water will not exceed 0.1mg/l.

b.         Discharges to low flow or zero flow receiving waters shall be subject to the following conditions:

1.         The receiving waters fall within any of the following categories:

I.          The 7Q10 or 32Q2 flow statistics are estimated to be zero by the USGS.

II.        The drainage area of the discharge point is less than 5 square miles as specified by the USGS on‑line tools or other methodology that meets the standard of care for such work.

III.       The 7Q10 flow is estimated to be less than 1 cubic foot per second by the USGS.

2.         The proposed flow for any wastewater discharge shall be the lesser of the following:

I.          No more than one‑tenth of the flow generated by the one‑year, 24‑hour storm event given the drainage area and calculated using the rational method. The rational method shall be used to calculate the peak runoff for the one‑year, 24‑hour precipitation event in cubic feet per second. The peak runoff shall then be divided by 10 and multiplied by 646,272 to convert the result to gallons per day of allowable discharge at the point studied.

II.        Two million gallons per day.

3.         All discharges shall be directed to buffer systems that utilize low‑energy methodologies to function as a buffer between the discharge and the receiving waters. Buffer systems shall consist of one of the following:

I.          High‑rate infiltration basins that may include engineered materials to achieve high rates of infiltration, which engineered materials shall have an ASTM gradation of a fine to coarse grain sand, and angular to maintain structural integrity of the slope.

II.        Constructed free‑surface wetlands having a hydraulic residence time of 14 days.

III.       Other suitable technologies that provide a physical or hydraulic residence time buffer, or both, between the discharge and the receiving waters.

4.         Discharge to areas that are 50 feet upland of the receiving waters or wetlands at a non‑erosive velocity equal to or less than 2 feet per second through an appropriately designed energy dissipater, or other applicable designs, that meet the standard of practice for professional engineers for such devices.

5.         Utilize more than one outfall to the receiving stream so that no one outfall exceeds 1 cubic foot per second based on the average daily flow of the discharge. Discharges from buffer systems shall be allowed to be placed at increments along a stream or receiving waters at no less than 50 linear feet.

6.         No discharge shall be permitted to classified shellfish waters (SA), tidal waters (SC), water supply waters (WS), or outstanding resource waters (ORW). Discharges to unnamed tributaries of classified shellfish waters, however, shall be authorized in compliance with requirements of this section and only when a low‑risk situation is present. Discharges to nutrient sensitive waters (NSW) may require additional modeling and allocation of flow and will be at the discretion of the Department.

7.         The following effluent limits shall generally apply except where (i) the applicant and Department agree to more stringent limits or (ii) complex modeling conducted pursuant to sub‑sub‑subdivision 8. of this sub‑subdivision demonstrates that Sag in the DO content of the receiving water of 0.1 mg/l or less will occur and water quality standards are protected:

I.          Biological oxygen demand (BOD5) shall not exceed 5.0 mg/l monthly average.

II.        NH3, 0.5 mg/l monthly average, 1.0 mg/l daily maximum.

III.       Total nitrogen shall not exceed 4.0 mg/l monthly average.

IV.       Total phosphorus, 1.0 mg/l monthly average, 2.0 mg/l daily maximum.

V.        Fecal coliforms, 14 colonies/100ml or less.

VI        Dissolved oxygen, 7.0 mg/l or greater.

VII.     Total suspended solids, 5.0 mg/l monthly average, 8mg/l daily maximum.

VIII.    Nitrate, 1.0 mg/l monthly average, 2.0 mg/l daily maximum.

8.         If an applicant proposes less stringent effluent limits than those set forth in sub‑sub‑subdivision 7. of this sub‑subdivision, the applicant shall conduct more complex modeling using any model accepted elsewhere in USEPA Region 4 that the applicant elects to use to confirm that a Sag in the DO content of the receiving water of 0.1 mg/l or less will occur and water quality standards are protected.

9.         The Department shall not require an applicant to obtain mapping data from the USGS as part of an application. In lieu, an engineer of record licensed in the State of North Carolina may prepare required mapping utilizing either USGS maps or other maps approved by the Department.

10.       Within 30 days of the filing of an application for a wastewater discharge subject to this section, the Department shall (i) determine whether or not the application is complete and notify the applicant accordingly and (ii) if the Department determines an application is incomplete, specify all such deficiencies in the notice to the applicant. The applicant may file an amended application or supplemental information to cure the deficiencies identified by the Department for the Department's review. If the Department fails to issue a notice as to whether or not the application is complete within the requisite 30‑day period, the application shall be deemed complete. Within 180 days of the filing of a completed application, the Commission shall either grant or deny the permit. If the Commission fails to act in the requisite time frame, ten percent (10%) of the application fee shall be returned to the applicant for each working day beyond the 180‑day period.

SECTION 18.2.(e)  No later than September 1, 2024, the Department in conjunction with the North Carolina Collaboratory at the University of North Carolina at Chapel Hill (Collaboratory) shall convene a Wastewater General Permit Working Group (Working Group) consisting of Department and Collaboratory staff and a maximum of five consulting experts appointed by the Director of the Collaboratory in the fields of environmental regulation, wastewater regulation, water quality regulation, and wastewater treatment regulation, to develop the draft rules for the implementation of a Wastewater Treatment and Discharge General Permit process for the State. The Working Group shall report its findings to the Environmental Review Commission no later than March 15, 2025. Following consideration by the Environmental Review Commission, and after making any changes required by the Environmental Review Commission, the Department shall develop and submit proposed rules to USEPA for its approval. Within 20 days of the date USEPA approves the draft rules submitted pursuant to this subsection, the Commission shall initiate the process for temporary and permanent rules pursuant to Chapter 150B of the General Statutes.

SECTION 18.2.(f)  Beginning September 1, 2024, and quarterly thereafter until such times as permanent rules as required by subsections (d) and (e) of this section have become effective, the Department and the Environmental Management Commission shall report on their activities to implement subsections (d) and (e) of this section to the Environmental Review Commission, the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources, the Senate Appropriations Committee on Agriculture, Natural and Economic Resources, and the House of Representatives Appropriations Committee on Agriculture and Natural and Economic Resources of the General Assembly.

PART XIx. SEVERANCE CLAUSE AND EFFECTIVE DATE

SECTION 19.(a)  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part so declared to be unconstitutional or invalid.

SECTION 19.(b)  Except as otherwise provided, this act is effective when it becomes law.