HB 694 — Regional Water Study/Interbasin Transfer Subbasin/Total Maximum Daily Load.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 21 HOUSE BILL 694 Senate Agriculture, Energy, and Environment Committee Substitute Adopted 6/4/25 Short Title:

Reg'lStudy WaterWater/Wastewater Study/IBTRegionalization. Subbasin/TMDL.

Representatives Warren and Ross (Primary Sponsors).

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

Agriculture and Environment, if favorable, Rules, Calendar, and Operations of the House April 3, 2025 A BILL TO BE ENTITLED AN ACT TO DIRECT THE ENVIRONMENTAL FINANCE CENTER AT THE SCHOOL OF GOVERNMENT AT THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL TO STUDY WATER AND WASTEWATER REGIONALIZATION,REGIONALIZATION TOAND ELIMINATEIDENTIFY CERTAINAREAS SUBBASINOF DESIGNATIONSTHE ANDSTATE REMOVEWHERE THE REQUIREMENTCOSTS FOROF AN INTERBASIN TRANSFER CERTIFICATE FOR WATER TRANSFERSOR BETWEENWASTEWATER THOSESERVICES CERTAINCOULD SUBBASINSBE WITHINLOWERED THE SAME MAJOR RIVER BASIN, AND TOQUALITY REVISEOF 2020THOSE FARMSERVICES ACTIMPROVED. TMDL TRANSPORT FACTOR CALCULATION APPLICABILITY.

TheWhereas, GeneralNorth AssemblyCarolina has a significant number of Northdistressed Carolinawater enacts:and wastewater systems, defined as systems that fail to generate sufficient revenues to adequately fund management and operations, personnel, appropriate levels of maintenance, and reinvestment that facilitate the provision of reliable water or wastewater services;

STUDYand WATER/WASTEWATERWhereas, REGIONALIZATIONsignificant SECTIONfactors 1.(a)contributing Legislativeto Findings.distressed systems include service populations too small or too geographically dispersed, or the closure of major industrial or commercial customers, which results in systems much larger and more expensive to operate than is needed for the population they serve;

‒and TheWhereas, Generalcompetition Assemblymakesamong thelocal followinggovernments findings:to capture large industrial or commercial customers can lead to unnecessary facility duplication and result in short-term decisionsthatdonot reflectaresponsibleandprudentapproachtolong-terminfrastructureneeds;

(1)and Whereas, North CarolinaCarolina's hasfunding aprograms significantfor number of distressed water and wastewater systems,infrastructure defineddemonstrate aspreferences systemsfor thatregionalization failof towater generateand sufficientwastewater revenuesinfrastructure tosolutions adequatelyin fundorder managementto andcreate operations,or personnel,sustain appropriatefinancial levelsviability offor maintenance,systems andwith reinvestmentsignificant thatmaintenance facilitateor theupgrade provisionneeds, ofor reliableserving waterhigh orpoverty wastewaterareas services.of the State;

(2)and SignificantWhereas, factorsthere contributingcontinue to distressedbe systemsinformation includegaps serviceand populationslack tooof smallawareness oron toothe geographicallypart dispersed,of orlocal thegovernment closureofficials and policymakers of majorthe industrialbenefits orand commercialobstacles customers,to whichregionalization resultsand inthe systemsinformation muchthese largerofficials and morepolicymakers expensiveneed to operateguide thanlocal isdecisions neededon forregionalization and other infrastructure decisions, particularly with regard to economic development and growth-related infrastructure needs, water system efficiency measures, and costs related to the populationdevelopment theyof serve.new water sources;

(3)Now, Competitiontherefore, amongThe localGeneral governmentsAssembly toof captureNorth largeCarolina industrialenacts: or commercial customers can lead to unnecessary facility duplication and result in short-term decisions that do not reflect a responsible and prudent approach to long-term infrastructure needs.

(4)SECTION North1. Carolina's funding programs for water and wastewater infrastructure demonstrate preferences for regionalization of water and wastewater infrastructure solutions in order to create or sustain financial viability for systems with significant maintenance or upgrade needs or serving high poverty areas of the State.

(5)Study. There continue to be information gaps and lack of awareness on the part of local government officials and policymakers of the benefits and obstacles to regionalization and the information these officials and policymakers need to guide local decisions on regionalization and other infrastructure decisions, *H694-v-2* General Assembly Of North Carolina Session 2025 particularly with regard to economic development and growth-related infrastructure needs, water system efficiency measures, and costs related to the development of new water sources.

SECTION– 1.(b)The Study.Environmental Finance Center at the University of North Carolinaat Chapel Hill School ofGovernment (EFC)shall studyandreport on thebenefits, costs, and financial, statutory, or regulatory obstacles to regionalization of water and wastewater *H694-v-1* General Assembly Of North Carolina Session 2025 services across the State.

– The Environmental Finance Center at the University of NorthCarolinaatChapel HillSchoolofGovernment(EFC)shallstudyandreportonthebenefits, costs, and financial, statutory, or regulatory obstacles to regionalization of water and wastewater services across the State.

SECTION 1.(c)2. Consultation.

Consultation.

SECTION 1.(d)3. Report.

Report.

SECTION1.(e)SECTION Definitions.–Forthepurposesofthissection,"publicwatersystem"4. has the same meaning as in G.S.

Definitions.

– For the purposes of this act, "public water system" has the same meaning as in G.S.

ELIMINATE SUBBASIN DESIGNATIONS FOR IBT PROCESS SECTION 2.(a)5. Legislative Findings.

–This Theact Generalis Assemblyeffective makeswhen theit followingbecomes findingslaw. with respect to eliminating the Haw River, Deep River, and Contentnea Creek subbasin designations:

(1)Page These2 subbasinsHouse serveBill rapidly694-First growingEdition areas facing urgent water supply and economic development pressures.

(2) Flexibility in intrabasin transfers within the Neuse and Cape Fear major river basins strengthens drought resilience and supports emergency water management.

(3) Reducing unnecessary regulatory barriers allows municipalities and utilities in these subbasins to better plan and finance regional water infrastructure, improving affordability for consumers.

(4) Existing watershed planning and management systems within the Cape Fear River and Neuse River major river basins mitigate potential environmental impacts caused by intrabasin transfers.

SECTION 2.(b) G.S.

143-215.22G reads as rewritten:

"§ 143-215.22G.

Definitions.

In addition to the definitions set forth in G.S.

143-212 and G.S.

143-213, the following definitions apply to this Part.

… (1b) "River basin" means any of the following river basins designated on the map entitled "Major River Basins and Sub-basins in North Carolina" and filed in the Office of the Secretary of State on 16 April 1991.

The term "river basin" includes anyportion oftheriver basin thatextendsintoanotherstate.Anyarea Page 2 House Bill 694-Second Edition General Assembly Of North Carolina Session 2025 outside North Carolina that is not included in one of the river basins listed in this subdivision comprises a separate river basin.

a.

1-1 Broad River.

b.