SB 1047 — Regulatory Reform Act of 2026.

Page 4 Senate Bill 1047-Second Edition General Assembly Of North Carolina Session 2025 b.

The Department of EnvironmentalAdministration Quality shall adopt temporaryrulestemporary rules to implement Sections 11-3 through 3 of this actact, and shall adopt permanent rules to replace the temporary Senate Bill 1047-First Edition Page 5 General Assembly Of North Carolina Session 2025 rules.

AUTHORITY4 FORGUARANTEED MOBILEENERGY HOMESAVINGS PARKCONTRACTS AND– TINYFINANCING HOMEESTIMATES COMMUNITYAND LANDLORDSDISCLOSURES TO BILL TENANTS FOR MASTER-METERED WATER SERVICE SECTION 7.5.(a) Definitions.

G.S.– For purposes of this section and its implementation, "Financing Disclosure Rule" means 01 NCAC 41B .0302 (Solicitation Documents).

62-110(g)SECTION reads5.(b) asFinancing rewritten:Disclosure Rule.

"(g)– InUntil addition to the authorityeffective todate issueof athe certificaterevised ofpermanent publicrule conveniencethat andthe necessityDepartment andof establishAdministration rates(Department) otherwiseis grantedrequired into thisadopt Chapter,pursuant forto thesubsection purpose(d) of encouragingthis watersection, conservation, the CommissionDepartment may,shall consistentimplement with the publicFinancing interest,Disclosure adoptRule proceduresas thatprovided allowin (i)subsection a(c) lessor of anythis leasedsection. residential premises, as that term is defined under G.S.

42-59(3),SECTION to5.(c) chargeImplementation. for the costs of providing water or sewer service to persons who occupy the leased premises, (ii) an owners' association, as that term is defined under G.S.

47F-1-103(3),– toFor chargeState forgovernmental theunits, costssolicitation ofdocuments providingshall waterinclude orthe sewerestimated servicecost toof personsfinancing whoobtained occupyfrom townhomesthe withinDirector aof plannedDebt community,Management, asOffice thatof termthe isState definedTreasurer. under G.S.

47F-1-103(23),Local andgovernmental (iii)units amay unitobtain owners'information association,on astheestimated thatcostoffinancingfromtheOfficeoftheStateTreasurerorfromaqualifiedprovider. term is defined under G.S.

47C-1-103(3),SECTION to5.(d) chargeAdditional forRulemaking theAuthority. costs of providing water or sewer service to persons who occupy a condominium, as that term is defined under G.S.

47C-1-103(7).– The Department shall adopt a rule to amend the Financing Disclosure Rule consistent with subsection (c) of this section.

For purposes of this subsection, the term "townhome" means a single-family dwelling unit constructed in a group of three or more attached units.

The following provisions shall apply:

(1) Except as provided in subdivisions (1a), (1b), and (1c) (1c), and (1d) of this subsection, all charges for water or sewer service shall be based on the user's metered consumption of water, which shall be determined by metered measurement of all water consumed.

The rate charged by the lessor, owners' association, orunit owners'association,as applicable,shall notexceedtheunit consumption rate charged by the supplier of the service.

(1a) If the leased premises are contiguous dwelling units built prior to 1989, and the lessor determines that the measurement of the lessee's total water usage is impractical or not economical, the lessor may allocate the cost for water and sewer service to the lessee using equipment that measures the lessee's hot waterusage.

In thatcase, eachlesseeshall bebilled apercentageofthelessor's water and sewer costs for water usage in the dwelling units based upon the hot Senate Bill 1047-Second Edition Page 5 General Assembly Of North Carolina Session 2025 water used in the lessee's dwelling unit.

The percentage of total water usage allocated for each dwelling unit shall be equal to that dwelling unit's individually submetered hot water usage divided by all submetered hot water usage in all dwelling units.

The followingconditions applyto billingfor water and sewer service under this subdivision:

a.

Alessorshallnotutilizearatioutilitybillingsystemorotherallocation billing system that does not rely on individually submetered hot water usage to determine the allocation of water and sewer costs.

b.

Thelessorshallnotincludein alessee'sbillthecostofwaterandsewer service used in common areas or water loss due to leaks in the lessor's water mains.

A lessor shall not bill or attempt to collect for excess water usage resulting from a plumbing malfunction or other condition that is not known to the lessee or that has been reported to the lessor.

c.

All equipment used to measure water usage shall comply with guidelines promulgated by the American Water Works Association.

d.

The lessor shall maintain records for a minimum of 12 months that demonstrate how each lessee's allocated costs were calculated for water and sewer service.

Upon advanced written notice to the lessor, a lessee may inspect the records during reasonable business hours.

e.

Bills for water and sewer service sent by the lessor to the lessee shall contain all the following information:

1.

The amount of water and sewer services allocated to the lessee during the billing period.

2.

The method used to determine the amount of water and sewer services allocated to the lessee.

3.

Beginning and ending dates for the billing period.

4.

The past-due date, which shall not be less than 25 days after the bill is mailed.

5.

A local or toll-free telephone number and address that the lessee can use to obtain more information about the bill.

(1b) Notwithstanding the provisions of subdivisions (1), (1a), and (1c) of this subsection, if the Commission approves a flat rate to be charged by a water or sewer utility for the provision of water or sewer services to contiguous dwelling units, the lessor, owners' association, or unit owners' association, as applicable, may pass through and charge the tenants or occupants of the contiguous dwelling units the same flat rate for water or sewer services, rather than a rate based on metered consumption, and an administrative fee as authorized in subdivision (2) of this subsection.

Bills for water and sewer service sent by the lessor, owners' association, or unit owners' association, as applicable, to the lessee or occupant shall contain all the information required by sub-sub-subdivisions e.2.

through e.5.

of subdivision (1a) of this subsection.

(1c) The lessor may equally divide the amount of the water and sewer bill for a unit among all the lessees in the unit and maysend one bill to each lessee.

The amount charged shall be prorated when a lessee has not leased the unit for the same number of days as the other lessees in the unit during the billing period.

Each bill may include an administrative fee up to the amount of the then-current administrative fee authorized by the Commission in Rule 18-6 for water service and, when applicable, a late fee in an amount determined by the Commission.

The lessor shall not charge the cost of water and sewer from Page 6 Senate Bill 1047-Second Edition General Assembly Of North Carolina Session 2025 any other unit or common area in a lessee's bill sent pursuant to this subdivision.

(1d) Notwithstanding the provisions of subdivisions (1), (1a), and (1c) of this subsection, if the leased premises is a mobile home located within a mobile home park, or a tiny home located within a tiny home community, and the lessor determines that the measurement of the lessee's total water usage is impractical or not economical, the lessor may allocate the cost for water and sewer service to the lessee using either of the following:

a.

Equipment that measures the lessee's hot water usage.

In that case, each lessee shall be billed a percentage of the lessor's water and sewer costs for water usage in the mobile home park or tiny home community,as applicable,baseduponthehotwaterusedinthelessee's mobile home or tiny home.

The percentage of total water usage allocated for each mobile home or tiny home, as applicable, shall be equal to thatmobilehome's ortinyhome's individuallysubmeteredhot water usage divided by all submetered hot water usage in all mobile homes located within the mobile home park or tiny homes within the tiny home community, as applicable.

b.

A ratio utility billing system or other allocation billing system that does not rely on individuallysubmetered hot water usage to determine the allocation of water and sewer costs.

The conditions set forth in sub-subdivisions b.

through e.

of subdivision (1a) of this subsection shall apply to billing for water and sewer service under this subdivision.

For purposes of this subsection, the term "tiny home" means a single-family detached dwelling unit that is 400 square feet or less in floor area, specifically excluding lofts.

…." MINING PERMIT MODIFICATIONS SECTION 8.(a) G.S.

74-49 reads as rewritten:

"§ 74-49.

Definitions.

Wherever used or referred to in this Article, unless a different meaning clearly appears from the context:

… (7) "Mining" means any of the following:

(i) the breaking of the surface soil in order to facilitate or accomplish the extraction or removal of minerals, ores, or other solid matter;

(ii) any activity or process constituting all or part of a process for the extraction or removal of minerals, ores, soils, and other solid matter from their original location;

or (iii) the preparation, washing, cleaning, or other treatment of minerals, ores, or other solid matter so as to make them suitable for commercial, industrial, or construction use.

"Mining" does not include:

… h.

Activities undertaken at any time within the mine permit boundaries for the production and harvesting of timber and timber products and conducted in accordance with standards defined by the Forest Practice Guidelines Related to Water Quality, as adopted by the Department of Agriculture and Consumer Services.

…." SECTION 8.(b) G.S.

74-50 reads as rewritten:

"§ 74-50.

Permits – General.

Senate Bill 1047-Second Edition Page 7 General Assembly Of North Carolina Session 2025 … (b2) The notice shall inform the owners of record and chief administrative officers of the opportunity to submit written comments to the Department regarding the proposed new or modified mining operation that adds land to the permitted area and the opportunity to request a public hearing regarding the proposed new or modified mining operation.

Requests for public hearing shall be made within 30 days of issuance of the notice.notice or receipt of the application by the Department, whichever is later.

… (c) NopermitshallbecomeeffectiveuntiltheoperatorhasdepositedwiththeDepartment an acceptable performance bond or other security pursuant to G.S.

74-54.

(1) If at any time the bond or other security, or any part thereof, shall lapse for any reason other than a release by the Department, and the lapsed bond or securityis not replaced bythe operatorwithin30days afternoticeofthelapse, the permit to which the lapsed bond or securitypertains shall be automatically revoked.

(2) If the Department is noticed of pending cancellation of a bond by the surety pursuant to G.S.

74-54(a) and the bond is not replaced within 45 days of the Department's receipt of the notice, the permit to which the bond or security pertains shall be automatically revoked.

… (e) Public comment periods and time frames for conducting public hearings as established by this Article shall not be extended nor altered by the Department.

When the Department holds a public hearing pursuant to G.S.

74-51(c), the 60-day technical review period established in G.S.

74-51(b1) shall not conclude until either 30 days following the public hearing or the original 60-day technical review period, whichever is later." SECTION 8.(c) G.S.

74-51 reads as rewritten:

"§ 74-51.

Permits – Application, granting, conditions.

… (b) Before deciding whether to grant a new permit, the Department shall circulate copies of a notice of application for review and comment as it deems advisable.

The Department shall grant or denythe permit requested as expeditiouslyas possible, but in no event later than 60 days after the application form and any relevant and material supplemental information reasonably required shall have been filed with the Department, or if a public hearing is held, within 30 days following the hearing and the filing of any relevant and material supplemental information reasonably required by the Department.

possible.

Priority consideration shall be given to applicants who submit evidence that the mining proposed will be for the purpose of supplying materials to the Board of Transportation.

In accordance with G.S.

143B-279.18, except to the extent required by federal or State law, the Department shall not refuse to accept an application for, nor refuse to issue, a new, modified, or transferred mining permit based solely on the failure of an applicant to obtain another permit, authorization, or certification required for the same project.

Forpurposes ofthis section,failureto obtain apermit, authorization,orcertificationshall not include denial of the permit, authorization, or certification by the Department based on the standards for approval of the permit, authorization, or certification provided by law.

(b1) The Department shall act on a permit application as quickly as possible.

The Department may conduct any inquiry or investigation it considers necessary before acting on an application and may require an applicant to submit plans, specifications, and other information the Department considers necessary to evaluate the application.

If the Department fails to act on an application for a new, modified, or transferred mining permit as specified in this subsection after the applicant submits all information required by the Department, the application shall be deemed approved without modification.

The following provisions apply:

Page 8 Senate Bill 1047-Second Edition General Assembly Of North Carolina Session 2025 (1) The Department shall perform an administrative review of an application and of a resubmittal of an application determined to be incomplete under subdivision (3) of this subsection within 10 working days of receipt to determine if the information is administratively complete.

If complete, the Department shall issue a receipt letter or electronic response stating that the application is complete and that a 60-calendar day technical review period has started as of the original date the application was received.

If required items or information is not included, the application shall be deemed incomplete, and the Department shall issue an application receipt letter or electronic response identifying the information required to complete the application package before the technical review begins.

When the required information is received, theDepartment shall thenissueareceipt letteror electronicresponse specifying that it is complete and that the 60-calendar day technical review period has started as of the date of receipt of all required information.

The Department shall develop an application package checklist identifying the items and information required for an application to be considered administratively complete.

(2) If, during the 60-calendar day technical review period, the Department determines that the application meets the standards for issuance of a new, modified, or transferred mining permit, it shall approve the application.

(3) If, during the 60-calendar day technical review period, the Department determines that additional information is required to continue processing the application,theDepartmentandtheapplicantshallcomplywiththefollowing:

a.

The Department shall issue a letter or electronic response with a list of the additional information required to issue the permit.

b.

The applicant shall have up to 180 calendar days from the date the letter or electronic response is sent to submit the additional information to the Department.

c.

If the applicant is unable to provide the required information within the time frame specified in sub-subdivision b.

of this subdivision, the applicant may request, with good cause, that a one-year extension be granted by the Department;

if the one-year extension granted by the Department is insufficient, the applicant may then request another one-year extension granted by the Mining Commission.

d.

If the applicant fails to provide the required information within 180 calendar days or within any extensions granted by the Department and Commission pursuant to sub-subdivision c.

of this subdivision, the Department shall return the application to the applicant, the application is deemed denied, and the applicant must resubmit a completeapplicationwith anewapplicationfeebeforetheproject may be reviewed.

e.

Upon receipt of the required information from the applicant, the Department shall have 45 calendar days to complete the subsequent technical review and issue the permit, issue the permit with modifications, deny the permit, or issue a letter or electronic response with a list of additional information required to continue processing the application, and the review process will proceed in accordance with sub-subdivision b.

or c.

of this subdivision, as applicable.

f.

After issuing a letter or electronic response requesting additional information under this subdivision, the Department shall not subsequently request additional information that was not previously Senate Bill 1047-Second Edition Page 9 General Assembly Of North Carolina Session 2025 identified as missing or required in that additional information letter or electronic response.

The Department may, however, request additional information if required for the technical review based on any new information, changed circumstances, or changed designs provided by the applicant in a response provided pursuant to sub-subdivision b.

or c.

of this subdivision, as applicable.

g.

Where the Department identifies information that should have been requested, the Department may address this information by including conditions in or modifications to the permit upon issuance but shall not deny the permit because of the missing information.

This prohibition on permit denial shall not apply where an application was deemed denied under sub-subdivision d.

of this subdivision.

… (d) The Department may deny the permit upon finding:

… (7) That the applicant or any parent, subsidiary, or other affiliate of the applicant or parent has not been in substantial compliance with this Article, rules adoptedunderthis Article,orotherlaws orrules of this Statefortheprotection of the environment or has not corrected all violations that the applicant or any parent, subsidiary, or other affiliate of the applicant or parent may have committed under this Article or rules adopted under this Article and that resulted in:

a.

Revocation of a permit, b.

Forfeiture of part or all of a bond or other security, c.

Conviction of a misdemeanor under G.S.

74-64, d.

Any other court order issued under G.S.

74-64, or e.

Final assessment of a civil penalty under G.S.

74-64, [or] f.

Failure to pay the application processing fee required under G.S.

74-54.1.

(8) That the applicant failed to pay the application processing fee required by G.S.

74-54.1 within 30 days of receipt of the application by the Department.

… (h) Upon approval of an application, the Department shall set the amount of the performance bond or other security that is to be required pursuant to G.S.

74-54.

The operator shall have 60 days after the Department mails a notice of the required bond to the operator in which to deposit the required bond or security with the Department.

Department or the permit application will be automatically denied.

The operating permit shall not be issued until receipt of this deposit.

…." SECTION 8.(d) This section becomes effective October 1, 2026, and applies to permit applications filed on or after that date.

EXEMPT CERTAIN COMPOST FACILITIES FROM FINANCIAL ASSURANCE REQUIREMENTS SECTION 8.5.

G.S.

130A-295.2 is amended by adding a new subsection to read:

"(k) An owner or operator of a permitted Small or Large Type 1, Type 2, or Type 3 compost facility shall be exempt from financial assurance requirements under this section, provided that:

(1) The facility does not accept mixed municipal solid waste, post-collection separated or processed waste, industrial solid waste, sewage sludge, biosolids, Page 10 Senate Bill 1047-Second Edition General Assembly Of North Carolina Session 2025 septage, or anyother feedstock that would cause the facilityto be classified as a Type 4 compost facility.

(2) The facilityis in substantial compliance with its permit, this Article, and rules adopted under this Article.

(3) The owner or operator has not abandoned the facility.

Notwithstanding the exemption provided herein, the Department shall retain full authority to require financial assurance for a facility if it makes a written, site-specific determination that a facility has (i) been abandoned;

(ii) failed to meet closure requirements;

(iii) caused or contributed to a release of pollutants;

or (iv) a history of significant or repeated violations, as defined in G.S.

130A-295.3.

Nothing in this subsection shall be construed to exempt a facility from requirements for permitting, siting, design, operational, closure, enforcement, or corrective action under this Article, or rules adopted thereunder.

This subsection shall not applyto a Type 4 compost facility, sanitarylandfill, transfer station, septage management facility, or any other solid waste management facility located on the same site as a facility exempt pursuant to this subsection, unless the other solid waste management facility is independently exempt under law.

Upon request by an owner or operator qualifying under this subsection, the Department shall release or authorize cancellation of anyfinancial assurance instrument required solelyfor closure of the compost facility." ALIGN NORTH CAROLINA LEAD-DUST HAZARD STANDARDS WITH FEDERAL STANDARDS ADOPTED BY THE U.S.

ENVIRONMENTAL PROTECTION AGENCY SECTION 9.(a) G.S.

130A-131.7 reads as rewritten:

"§ 130A-131.7.

Definitions.

The following definitions apply in this Part:

… (7) "Lead poisoning hazard" means any of the following:

… c.

Any concentration of lead dust that is equal to or greater than 10 micrograms 5 micrograms per square foot on floors, 100 micrograms 40 micrograms per square foot on interior windowsills, or 250 micrograms per square foot on vinyl miniblinds, bathtubs, kitchen sinks, or lavatories.

d.

Anylead-based paint or othersubstancethat contains leadon a friction or impact surface that is subject to abrasion, rubbing, binding, or damage by repeated contact and where the lead dust concentrations on the nearest horizontal surface underneath the friction or impact surface are equal to or greater than 40 micrograms 5 micrograms per square foot on floors or 250 micrograms 40 micrograms per square foot on interior windowsills.

…." SECTION 9.(b) G.S.

130A-131.9C(i) reads as rewritten:

"(i) All remediation plans shall require that the lead poisoning hazards be reduced to the following levels:

(1) Less than 10 micrograms 5 micrograms per square foot for lead dust on floors.

(2) Less than 100 micrograms 40 micrograms per square foot for lead dust on interior windowsills.

(2a) Less than 250 micrograms per square foot for lead dust on vinyl miniblinds, bathtubs, kitchen sinks, and lavatories.

Senate Bill 1047-Second Edition Page 11 General Assembly Of North Carolina Session 2025 (3) Less than 400 micrograms 100 micrograms per square foot for lead dust on window troughs.

(4) Less than 400 parts per million for lead in bare soil in play areas, gardens, pet sleeping areas, and areas within three feet of the residential housing unit or child-occupied facility.

Lead in bare soil in other locations of the yard shall be reduced to less than 1,200 parts per million.

(5) Less than 10 parts per billion for lead in drinking water." SECTION 9.(c) This section becomes effective January 1, 2027.

ON-SITE WASTEWATER PRODUCTS FOR STORMWATER SECTION 10.

The Department of Environmental Quality shall approve for use as a new stormwater technology any prefabricated permeable block panel system approved for use in the State, as defined in G.S.

130A-343(a)(6a).

In developing Minimum Design Criteria for this technology, the Department shall ensure that the MDC follows the manufacturer's installation and service requirements as closely as possible while still complying with federal requirements.

When utilized in traffic-rated areas, a person licensed as a professional engineer pursuant to Chapter 89C of the General Statutes may use the approved prefabricated permeable block panel system upon a showing that the system meets H-20 structural loading requirements.

For the purposes ofthis section, "traffic-ratedareas"does not includeDepartment ofTransportationrated areas but does include driveways and private parking areas with impervious or pervious pavement areas.

TEMPORARY EVENT EXEMPTION FOR ELECTRIC WORK SECTION 11.(a) G.S.

87-43.1 is amended by adding a new subdivision to read:

"(12) To any person when that person is temporarily attaching listed single 3-prong (NEMA 5-15R or 5-20R) receptacles or power taps to existing temporary luminaires or lighting fixtures and plugging those luminaires or fixtures into existing permanent receptacles, only when all of the following apply:

a.

The work is performed solely for a permitted international wholesale trade show in an exhibition hall, mercantile, or assembly occupancy space in this State.

b.

A valid electrical permit is obtained from the local authority having jurisdiction prior to the work.

c.

The work is inspected and approved by the local electrical inspector before the international wholesale trade show opens." SECTION 11.(b) This section is effective when it becomes law and applies to permitted events occurring on or after that date.

IMPLEMENTATION OF CODE CHANGES FOR USE OF CERTAIN INSULATION IN WALLS SECTION 12.(a) Definitions.

– As used in this section, "Code" means the current North Carolina State Building Code collection, and amendments to the Code, as adopted by the Council.

For purposes of this section and its implementation, "R402 Rules" means provisions and tables within Section 402, Building Thermal Envelope, North Carolina – Residential Provisions, of the North Carolina Energy Conservation Code.

As used in this section, "Council" means the Building Code Council and the Residential Code Council.

SECTION 12.(b) R402 Rules Amendment.

– Until the effective date of the rules to amend the Code that the Council is required to adopt pursuant to subsection (d) of this section, the Council and local governments enforcing the Code shall follow the provisions of subsection (c) of this section as it relates to the R402 Rules within the North Carolina Energy Conservation Code.

Page 12 Senate Bill 1047-Second Edition General Assembly Of North Carolina Session 2025 SECTION 12.(c) Implementation.

– Where Table R402.1.2, Insulation and Fenestration Requirements by Component, within the R402 Rules, require wood frame wall R-values, installing air-impermeable spray foam insulation as cavity insulation, which meets R-13 in climate zones 3 and 4, and R-15 insulation in climate zone 5, without installation of additional continuous insulation, shall be deemed to satisfy the R-value requirements for the wood frame wall in the appropriate climate zone, provided that the building envelope obtains an ACH50 blower door test result of less than or equal to 3.0.

SECTION 12.(d) Additional Rulemaking Authority.

– The Council shall adopt rules to amend the R402 Rules to be consistent with subsection (c) of this section.

150B-19(4), the rule adopted by the CouncilDepartment pursuant to this section shall be substantively identical to the provisions of subsection (c) of this section.

SECTION 12.(e)5.(e) Sunset.

AMENDGUARANTEED ENERGY RATINGSAVINGS INDEXCONTRACTS COMPLIANCE– ALTERNATIVEAUTHORIZATION TO USE FEDERAL FUNDS SECTION 12.5.(a)6.(a) Definitions.

– AsFor usedpurposes inof this section,section "Code"and meansits theimplementation, current"Federal NorthFunds CarolinaCertification StateRule" Buildingmeans Code01 collection,NCAC and41B amendments.0305 to(Prohibition theon Code,Federal asFunds). adopted by the Council.

ForSECTION purposes6.(b) ofFederal thisFunds sectionCertification andRule. its implementation, "R406 Rules" means provisions and tables within Section 406, Energy Rating Index Compliance Alternative, North Carolina – Residential Provisions, of the North Carolina EnergyConservation Code.

As– usedUntil inthe effective date of the revised permanent rule that the Department of Administration (Department) is required to adopt pursuant to subsection (d) of this section, "Council"the meansDepartment shall implement the BuildingFederal CodeFunds CouncilCertification andRule theas Residentialprovided Codein Council.subsection (c) of this section.

SECTION 12.5.(b)6.(c) R406Implementation. Rules Amendment.

– UntilWhen thea effectiveguaranteed dateenergy ofsavings thecontract ruleswill tobe amendpaid thein Codewhole thator thein Councilpart iswith requiredfederal tofunds, adopt pursuant to subsection (d) of this section, the Councilagency andshall localcertify governmentsprior enforcingto thecontract Codeexecution shallthat follow the provisionsuse of subsectionfederal (c)funds offor thissuch sectionpurpose ascomplies itwith relatesall toapplicable thefederal R406requirements. Rules within the North Carolina Energy Conservation Code.

SECTIONThe 12.5.(c)certification Implementation.and supporting confirmation shall be included in the contract documents submitted to the Office of State Budget and Management.

–The Therecertification shall be nosupported requirementby thatwritten theconfirmation buildingfrom thermalat envelopeleast meetsone or exceeds the levels of efficiency and Solar Heat Gain Coefficients in Tables R406.2.1 and R406.2.2, which shall be deleted from the R406following: Rules.

The(i) minimumthe standardsagency's associatedlegal withcounsel, compliance(ii) shall be the ANSIagency's RESNETgrants ICCmanagement Standardofficer, 301-2022(iii) "Standard for the CalculationOffice and Labeling of the EnergyState PerformanceController, Indexor of(iv) Dwellingthe andrelevant Sleepingfederal Unitsauthority usingthat anawarded Energythe Ratingfunds. Index." SECTION 12.5.(d) Additional Rulemaking Authority.

– The Councilform of confirmation shall adoptbe rulesappropriate to amend the R406funding Rulessource toand beshall consistentaddress withwhether subsectionthe (c)proposed contract structure, procurement method, and use of thisfunds section.are permissible under the applicable federal award terms.

SECTION 6.(d) Additional Rulemaking Authority.

– The Department shall adopt a rule to amend the Federal Funds Certification Rule consistent with subsection (c) of this section.

150B-19(4), the rule adopted by the CouncilDepartment pursuant to this section shall be substantively identical to the provisions of subsection (c) of this section.

Rules adopted pursuant to this section shall become effective as provided in Page 6 Senate Bill 1047-First Edition General Assembly Of North Carolina Session 2025 G.S.

SECTION 12.5.(e)6.(e) Sunset.

PERMITEFFECTIVE CHOICEDATE MODIFICATIONS SECTION 13.7.

G.S.Except as otherwise provided, this act becomes effective July 1, 2026, and applies to requests for qualifications issued on or after that date.

143-755Senate readsBill as1047-First rewritten:Edition Page 7

"§ 143-755.

Permit choice.

(a) If a development permit applicant submits a permit application for any type of development and a rule or ordinance is amended, including an amendment to any applicable land Senate Bill 1047-Second Edition Page 13 General Assembly Of North Carolina Session 2025 development regulation, between thetimethedevelopment permit applicationwas submittedand a development permit decision is made, the development permit applicant may choose which adoptedversion oftheruleorordinancewill applyto thepermit and useofthebuilding, structure, or land indicated on the permit application.

application, except as provided in subsection (a1) of this section.

If the development permit applicant chooses the version of the rule or ordinance applicable at the time of the permit application, the development permit applicant shall not be required to await the outcome of the amendment to the rule, map, or ordinance prior to acting on the development permit.

If an applicable rule or ordinance is amended after the development permitiswrongfullydeniedorafteranillegalconditionisimposed,asdeterminedinaproceeding challenging the permit denial or the condition imposed, the development permit applicant may choose which adopted version of the rule or ordinance will apply to the permit and use of the building, structure, or land indicated on the permit application.

Provided, however, anyprovision of the development permit applicant's chosen version of the rule or ordinance that is determined to be illegal for any reason shall not be enforced upon the applicant without the written consent of the applicant.

(a1) A development permit applicant may not select a version of an erosion and sediment control permit or a stormwater permit that does not comply with federal law.

(b) This section applies to all development permits issued by the State and by local governments.

(b1) If a permit application is placed on hold at the request of the applicant for a period of six consecutive months or more, or the applicant fails to respond to comments or provide additional information reasonably requested by the local or State government for a period of six consecutive months or more, the application review is discontinued and the development regulations in effect at the time permit processing is resumed apply to the application.

(c) Repealed by Session Laws 2015-246, s.

5(a), effective September 23, 2015.

(d) Any person aggrieved by the failure of a State agency or local government to comply with this section or G.S.

160D-108(b) mayapplyto the appropriate division of the General Court of Justice for an order compelling compliance by the offending agency or local government, and the court may issue that order.

Actions brought pursuant to any of these sections shall be set down for immediate hearing, and subsequent proceedings in those actions shall be accorded priority by the trial and appellate courts.

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

(1) Development.– Withoutalteringthescopeofanyregulatoryauthoritygranted by statute or local act, any of the following:

a.

The construction, erection, alteration, enlargement, renovation, substantial repair, movement to another site, or demolition of any structure.

b.

Excavation, grading, filling, clearing, or alteration of land.

c.

The subdivision of land as defined in G.S.

160D-802.

d.

The initiation of substantial change in the use of land or the intensity of the use of land.

(2) Development permit.

– An administrative administrative, legislative, or quasi-judicialapprovalthatiswrittenandthatis requiredpriortocommencing development or undertaking a specific activity, project, or development proposal, including any of the following:

a.

Zoning permits.

b.

Site plan approvals.

c.

Special use permits.

d.

Variances.

e.

Certificates of appropriateness.

f.

Plat approvals.

Page 14 Senate Bill 1047-Second Edition General Assembly Of North Carolina Session 2025 g.

Development agreements.

h.

Building permits.

i.

Subdivision of land.

j.

State agency permits for development.

k.

Driveway permits.

l.

Erosion and sedimentation control permits.

m.

Sign permit.

n.

Conditional zoning.

o.

Rezoning.

p.

Stormwater permits.

(3) Land development regulation.

– Any State statute, rule, or regulation, or local ordinance affecting the development or use of real property, including any of the following:

a.

Unified development ordinance.

b.

Zoning regulation, including zoning maps.

c.

Subdivision regulation.

d.

Erosion and sedimentation control regulation.

e.

Floodplain or flood damage prevention regulation.

f.

Mountain ridge protection regulation.

g.

Stormwater control regulation.

h.

Wireless telecommunication facility regulation.

i.

Historic preservation or landmark regulation.

j.

Housing code.

k.

Conditional zoning.

l.

Rezoning.

m.

Stormwater permits." ESTABLISH REVIEW PERIODS FOR LOCAL GOVERNMENT APPROVALS AND DECISIONS SECTION 14.(a) G.S.

160D-403 reads as rewritten:

"§ 160D-403.

Administrative development approvals and determinations.

(a) Development Approvals.

– To the extent consistent with the scope of regulatory development regulation authority granted by this Chapter, no person shall commence or proceed with development without first securing any required development approval from the local government with jurisdiction over the site of the development.

A development approval shall be in writing and may contain a provision requiring the development to comply with all applicable State and local laws.

A local government may issue development approvals in print or electronic form.

Any development approval issued exclusively in electronic form shall be protected from further editing once issued.

Applications for development approvals may be made by the landowner, a lessee or person holding an option or contract to purchase or lease land, or an authorized agent ofthelandowner.An easement holdermayalso applyfor development approval for such the development as is authorized by the easement.

(a1) TimePeriodforApproval.

–Within seven calendardays ofthefilingofan application for a development approval, a local government or its designated administrative staff, as described under G.S.

160D-402, shall (i) determine whether the application is complete and notify the applicant of the application's completeness and, (ii) if the local government or its designated administrative staff determines the application is incomplete, specify all of the deficiencies in the notice to the applicant.

The applicant may file an amended application or supplemental information to cure the deficiencies identified by the local government or its designated administrative stafffora completeness review,whichshall becompletedwithin seven calendar days after receiving an amended application or supplemental application from the Senate Bill 1047-Second Edition Page 15 General Assembly Of North Carolina Session 2025 applicant.

Upon the date the application is deemed complete, the local government or its designated administrative staff shall issue a receipt letter or electronic response stating that the application is complete.

From the date an application has been determined to be complete, the local government or its designated administrative staff shall have 20 days to perform an initial review of the completed application and notify the applicant of any required changes, to which an applicant shall have 15 days to respond.

If the applicant makes changes in response to comments arising from the initial review, the local government or its designated administrative staff shall have 10 calendar days to review any changes submitted by the applicant.

Upon expiration of that 10-day secondary review period, a final 90-calendar day review period shall begin.

The local government shall approve or deny the application within 90 calendar days of the date the 10-day secondary review period expires, except that if the applicant requests a continuance of the application, the review period shall be tolled for the duration of any continuance.

The time period for review may be extended only by agreement with the applicant if the application cannot be reviewed within the specified time limitation due to circumstances beyond the control of the local government.

The extension shall not exceed six months.

Failure of the local government or its designated administrative staff to act before the expiration of the time period allowed for review shall constitute an approval of the application, and the local government shall issue a written approval upon demand by the applicant.

…." SECTION 14.(b) Article 7 of Chapter 160D of the General Statutes is amended by adding a new section to read:

"§ 160D-707.

Review period for rezoning decisions.

Within seven calendar days of the filing of an application for amendment of a zoning map or zoning regulations, a local government or its designated administrative staff, as described under G.S.

160D-402, shall (i) determine whether the application is complete and notify the applicant of the application's completeness and, (ii) if the local government or its designated administrative staff determines the application is incomplete, specify all of the deficiencies in the notice to the applicant.

The applicant may file an amended application or supplemental information to cure the deficiencies identified by the local government or its designated administrative staff for a completeness review, which shall be completed within seven calendar days after receiving an amended application or supplemental application from the applicant.

Upon the date the application is deemed complete, the local government or its designated administrative staff shall issue a receipt letter or electronic response stating that the application is complete.

From the date an application has been determined to be complete, the local government or its designated administrative staff shall have 20 days to perform an initial review of the completed application and notify the applicant of any required changes, to which an applicant shall have 15 days to respond.

If the applicant makes changes in response to comments arising from the initial review, the local government or its designated administrative staff shall have 10 calendar days to review anychanges submitted by the applicant.

Upon expiration of that 10-daysecondaryreview period, a final 90-calendar day review period shall begin.

The local government shall approve or deny the application within 90 calendar days of the date the 10-day secondary review period expires, except that if the applicant requests a continuance of the application, the review period shall be tolled for the duration of any continuance.

The time period for review may be extended only by agreement with the applicant if the application cannot be reviewed within the specified time limitation due to circumstances beyond the control of the local government.

The extension shall not exceed six months.

Failure of the local government or its designated administrative staff to act before the expiration of the time period allowed for review shall constitute an approval of the application, and the local government shall issue a written approval upon demand by the applicant." SECTION 14.(c) This section becomes effective August 1, 2026, and applies to applications, approvals, and actions filed on or after that date.

Page 16 Senate Bill 1047-Second Edition General Assembly Of North Carolina Session 2025 2 AMEND REQUIREMENTS FOR ESTABLISHMENT OF HISTORIC DISTRICTS SECTION 15.

G.S.

160D-944 reads as rewritten:

"§ 160D-944.

Designation of historic districts.

(a) Anylocal government may, as part of a zoning regulation adopted pursuant to Article 7 of this Chapter or as a development regulation enacted or amended pursuant to Article 6 of this Chapter, designate and from time to time amend one or more historic districts within the area subject to the regulation.

Historic districts established pursuant to this Part shall consist of areas that are deemed to be of special significance in terms of their history, prehistory, architecture, or culture and to possess integrity of design, setting, materials, feeling, and association.

A development regulation may treat historic districts either as a separate use district classification or as districts that overlay other zoning districts.

Where historic districts are designated as separate use districts, the zoning regulation may include as uses by right or as special uses those uses found by the preservation commission to have existed during the period sought to be restored or preserved or to be compatible with the restoration or preservation of the district.

(b) No historic district or districts shall be designated under subsection (a) of this section until all of the following occur:

(1) An investigation and report describing the significance of the buildings, structures,features,sites, orsurroundingsincludedintheproposeddistrictand a description of the boundaries of the district have been prepared.

(2) The Department of Natural and Cultural Resources, acting through the State Historic Preservation Officer or his or her designee, has made an analysis of and recommendations concerning the report and description of proposed boundaries.

Failure of the Department to submit its written analysis and recommendations to the governing board within 30 calendar days after a written request for the analysis has been received by the Department relieves the governing board of any responsibility for awaiting the analysis, and the governing board may at any subsequent time take any necessary action to adopt or amend its zoning regulation.

(3) Fifty percent (50%) of the property owners in the proposed district sign a petition requesting designation of the district.

(c) The governing board may also, in its discretion, refer the report and proposed boundaries under subsection (b) of this section to any local preservation commission or other interested body for its recommendations prior to taking action to amend the zoning regulation.

With respect to anychanges in the boundaries of a district, subsequent to its initial establishment, or the creation of additional districts within the jurisdiction, the investigative studies and reports required by subdivision (1) of subsection (b) of this section shall be prepared by the preservation commission and shall be referred to the planning board for its review and comment according to procedures set forth in the zoning regulation.

Changes in the boundaries of an initial district or proposal for additional districts shall also be submitted to the Department of Natural and Cultural Resources in accordance with the provisions of subdivision (2) of subsection (b) of this section.

On receipt of these reports and recommendations, the local government may proceed in the same manner as would otherwise be required for the adoption or amendment of any appropriate zoning regulation.regulation, except that the governing board shall approve the adoption of the district by at least a three-fifths vote of a quorum of the governing board.

(d) G.S.

160D-914 applies to zoning or other development regulations pertaining to historic districts, and the authority under that statute for the ordinance to regulate the location or screening of solar collectors may encompass requiring the use of plantings or other measures to ensurethat theuse ofsolarcollectors is not incongruous with thespecialcharacter ofthe district." Senate Bill 1047-Second Edition Page 17 General Assembly Of North Carolina Session 2025 REQUIRE ZONING BASED ON DENSITY AND CLARIFY DENSITY CALCULATION SECTION 16.(a) G.S.

160D-102 reads as rewritten:

"§ 160D-102.

Definitions.

Unless otherwise specifically provided, or unless otherwise clearly required by the context, the words and phrases defined in this section shall have the following meanings indicated when used in this Chapter:

… (15b) Dwelling unit.

– A single unit, subject to the North Carolina Residential Code, providing complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation.

…." SECTION 16.(b) G.S.

160D-703 reads as rewritten:

"§ 160D-703.

Zoning districts.

(a) Types of Zoning Districts.

– A Except as provided in subsection (a1) of this section, a local government may divide its territorial jurisdiction into zoning districts of any number, shape, and areadeemedbest suited to carryout the purposes ofthis Article.Withinthosedistricts, it may regulate and restrict the erection, construction, reconstruction, alteration, repair, or use of buildings, structures, or land.

Zoning By illustration, zoning districts may include, but are not be limited to, include any of the following:

(1) Conventionaldistricts,inwhichavarietyofusesareallowedas permitteduses or uses by right and that may also include uses permitted only with a special use permit.

(2) Conditional districts, in which site plans or individualized development conditions are imposed.

(3) Form-based districts, or development form controls, that address the physical form, mass, and density of structures, public spaces, and streetscapes.

(4) Overlay districts, in which different requirements are imposed on certain properties within one or more underlying conventional, conditional, or form-based districts.

(5) Districts allowed by charter.

(a1) Residential Zoning Districts Classified Based on Density.

– A local government shall classify residential zoning districts based only on the number of dwelling units allowed per acre.

A local government shall not classify residential zoning districts based on the minimum lot size allowed in the district.

For purposes of determining allowable residential density, the actual gross acreage shall not be reduced by subtracting setbacks, public or private streets, open space or recreation areas, or other areas that are nondevelopable solely because of the local government's development, zoning, or subdivision regulations.

Where a portion of a lot is nondevelopable under State or federal law, the local government shall allow the residential units to be located on thedevelopableportion ofthelot unless thatdevelopment would conflict with theNorth Carolina Residential Code, the North Carolina Building Code, the North Carolina Fire Code, on-site wastewater and well rules, or water supply watershed rules or any law or rule described in subdivision (1) or (2) of this subsection.

This subsection shall not be construed to do any of the following:

(1) Authorize development in an area that may not be developed under State or federal law.

(2) Limit the authority or duty of a local government to adopt or enforce a regulation required as a condition of a federally delegated or approved program, including floodplain management standards required for participation in the National Flood Insurance Program, post-construction stormwater controls required under a National Pollutant Discharge Page 18 Senate Bill 1047-Second Edition General Assembly Of North Carolina Session 2025 Elimination System (NPDES) permit, riparian buffer requirements adopted to meet State or federal water quality obligations, and required standards within Areas of Environmental Concern under the Coastal Area Management Act.

…." 6 PROMOTE FEE TRANSPARENCY AND PREDICTABILITY FOR APPLICANTS PRIOR TO LOCAL GOVERNMENT DEVELOPMENT PERMIT APPROVAL OR ISSUANCE SECTION 17.(a) G.S.

160D-102 is amended by adding three new subdivisions to read:

"(16a) Feeestimate.–Astatementprojectingallfeesthat mayreasonablybeassessed in the fee statement for the applicant's project, including assumptions applied to the category or purpose of the fees to be charged.

(16b) Fee schedule.

– A statement of all current fees that maybe collected bya local government for the administration and enforcement of provisions set forth in this Chapter and Article 8 of Chapter 162A of the General Statutes and impact fees, facility fees, and other fees authorized by local act, applicable to each project category and purpose, including the data and methodologies used to calculate the fee rates.

(16c) Fee statement.

– An itemized statement of any fees applicable to the applicant's particular project pursuant to this Chapter." SECTION 17.(b) Article 4 of Chapter 160D of the General Statutes is amended by adding a new section to read:

"§ 160D-402.1.

Development fee transparency.

(a) Fee Schedule Publication.

– Each local government shall prominently display on the local government's official website the local government's current fee schedules.

The local government shall update the website to reflect any changes to fees, rates, or methodologies used to develop fees and rates within 30 days of the adoption of any ordinance amending the fees, rates, or methodologies.

Each local government shall submit an annual report of its fee schedule, fee collections, and compliance with this section to the Local Government Commission.

(b) Local Government Commission Report.

– The Local Government Commission shall publish and prominently display on the Commission's website a statewide report of local governments' current fee schedules.

(c) Required Disclosure.

– Each local government shall provide to the applicant prior to a development approval the current fee schedule and a fee estimate.

The local government shall deliver information required under this subsection to the applicant within 10 business days after submission of a completed application.

If the project materially changes after the local government has delivered the fee estimate, the local government shall provide a revised estimate within 10 business days of receiving the updated project information.

The local government shall not require payment of any fees specified in subsection (a) of this section before the local government provides the estimate.

(d) Final Fee Statement.

– Each local government shall provide to the applicant, in writing, a final, binding fee statement of exact fees due when a development approval is issued on the application.

The final fee amount maynot exceed the most recent estimate provided under subsection (c) of this section, unless the local government adopts a new fee schedule by ordinance.

(e) Enforcement.

– An applicant may commence a civil action in superior court of the county in which the applicant's project is located to compel the local government to comply with the requirements of this section.

The court shall allow the prevailing party to recover reasonable attorneys' fees and costs.

Nothing in this section shall limit anyremedyotherwise available under Article 14 of this Chapter." Senate Bill 1047-Second Edition Page 19 General Assembly Of North Carolina Session 2025 SECTION 17.(c) Nothing in this section shall be construed to limit or otherwise affect the power or authority of a local government to impose fees consistent with its statutory authority or constitutional requirements.

This section shall not be construed to require the disclosure of confidential information under G.S.

132-1.2.

6 TOLL DISCONTINUANCE PERIOD FOR VESTED RIGHTS DURING EMERGENCY DECLARATIONS SECTION 18.

G.S.

160D-108 reads as rewritten:

"§ 160D-108.

Permit choice and vested rights.

… (d) Duration of Vesting.

– Upon issuance of a development permit, the statutory vesting granted by subsection (c) of this section for a development project is effective upon filing of the application in accordance with G.S.

143-755, for so long as the permit remains valid pursuant to law.

Unless otherwise specified bythis section or other statute, local development permits expire one year after issuance unless work authorized by the permit has substantially commenced.

A local land development regulation may provide for a longer permit expiration period.

For the purposes of this section, a permit is issued either in the ordinary course of business of the applicable governmental agency or by the applicable governmental agency as a court directive.

Except where a longer vesting period is provided by statute or land development regulation, the statutory vesting granted by this section, once established, expires for an uncompleted development project if development work is intentionally and voluntarily discontinued for a period of not less than 24 consecutive months, and the statutory vesting period granted by this section for a nonconforming use of property expires if the use is intentionally and voluntarily discontinued for a period of not less than 24 consecutive months.

The 24-month discontinuance period is automatically tolled during the any of the following:

(1) The pendency of any board of adjustment proceeding or civil action in a State or federal trial or appellate court regarding the validity of a development permit, the use of the property, or the existence of the statutory vesting period granted by this section.

(2) The 24-month discontinuance period is also tolled during the The pendency of any litigation involving the development project or property that is the subject of the vesting.

(3) The duration of any emergency declaration issued under G.S.

166A-19.20 or G.S.

166A-19.22 for which the defined emergency area includes the property, in whole or in part.

…." MODIFY EXTENSIONS OF CERTAIN GOVERNMENT APPROVALS AFFECTING THE DEVELOPMENT OF REAL PROPERTY IN THE AREA AFFECTED BY HELENE SECTION 19.

Section 1D.3.(b) of S.L.

2024-57, as amended by Section 1.5(a) of S.L.

2025-97, reads as rewritten:

"SECTION 1D.3.(b) For any development approval:

(1) That is current and valid at any point during the period beginning January 1, 2024, and ending December 31, 2027, the running of the period of the development approval and any associated vested right under G.S.

160D-108 or G.S.

160D-108.1 is suspended within the affected area during the period beginning January 1, 2024, and ending December 31, 2027.2030.

(2) That was current and valid on September 25, 2024, the expiration date shall be automaticallyextended for a period of 12 months beyond the date on which Page 20 Senate Bill 1047-Second Edition General Assembly Of North Carolina Session 2025 the approval would otherwise expire pursuant to the suspension of the running of time under subdivision (1) of this subsection.

Notwithstanding the extensions granted by this section, a local government may revoke or modify a development approval automatically extended under this section if, due to changed site conditions resulting from Hurricane Helene or subsequent related natural disasters, the local government determines that it would not issue the permit under current site conditions based on a determination that the site no longer meets applicable State or federal safety, environmental, or engineering standards, or that the extension of the approval would present a material risk to life, health, or property.

A local government exercising authority to revoke or modify a development approval automatically extended under this subsection shall provide written notice to the holder of the development approval of the revocation or modification, including findings of fact to support a determination that the site no longer meets applicable State or federal safety, environmental, or engineering standards, or that the extension of the approval would present a material risk to life, health, or property.