SB 1001 — Coastal Regulatory Reform.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S 21 SENATE BILL 1001 Agriculture, Energy, and Environment Committee Substitute Adopted 6/17/26 Short Title:

Senators Lazzara and Sanderson (Primary Sponsors).

Rules and Operations of the Senate May 4, 2026 A BILL TO BE ENTITLED AN ACT TO MODIFY THE COASTAL AREA MANAGEMENT ACT APPLICATION PROCESSING RULE TO CLARIFY ADJACENT LANDOWNER NOTICE REQUIREMENTS, TO AMEND UPLAND BASIN DISSOLVED OXYGEN AND FINANCIAL ASSURANCE REQUIREMENTS, TO MAKE OTHER TECHNICAL CORRECTIONS TO THE UPLAND BASIN PERMITTING STATUTE, AND TO EXPAND THEPERMISSIBLEUSESTHE OFTHECOASTALSTORMDAMAGEMITIGATIONFUNDPERMISSIBLE ANDUSES PROVIDEOF FUNDING,THE ANDCOASTAL TOSTORM CLARIFYDAMAGE AGENCYMITIGATION AUTHORITYFUND OVERAND THEPROVIDE COASTALFUNDING. RESERVE.

– For both CAMA major and minor development permit applications, the CAMA Application Processing Rule shall provide that documentation showing that notice was sent by certified mail to the following:adjacent riparian landowners at the tax address of record shall constitute sufficient notice to meet the requirements of the CAMA Application Processing Rule, and the failure of an adjacent riparian landowner to receive, claim, or respond to such notice shall not delay or prevent the processing of the permit application.

(1)Nothing Documentationin showingthis thatsubsection noticeis wasintended sentto bylimit certifiedor mailprohibit to an adjacentapplicant riparianfor landownera atminor thedevelopment taxpermit addressfrom ofusing recordany satisfiesmethod theof notice requirementspermitted ofby theapplicable CAMAlaw Applicationor Processingrule. Rule if the applicant provides proof that the adjacent riparian landowner received the notice.

(2) If the applicant cannot provide proof that the adjacent riparian landowner received the notice, the permit application may proceed without proof of receipt only if the applicant provides documentation showing that notice was sent bycertified mail, returnreceipt requested,at least 60 days beforeissuance of the permit, to both (i) the adjacent riparian landowner's tax address of record and (ii) the property address of the adjacent riparian property, if a separate property address has been assigned and differs from the landowner's tax address of record.

(3) During the 60-day period following the date the notice was sent by certified mail, the Department of Environmental Quality, the Division of Coastal *S1001-v-2* General Assembly Of North Carolina Session 2025 Management, or the local permit officer may continue to process the application.

If there is no proof of receipt, however, the permit shall not be issued until the 60-day period has expired.

The failure of an adjacent riparian landowner to receive, claim, or respond to the certified mail notice shall not delay or prevent issuance of the permit after the 60-day period has expired.

(4) Nothing in this subsection is intended to limit or prohibit an applicant for a minor development permit from using any other method of notice permitted by applicable law or rule.

*S1001-v-1* General Assembly Of North Carolina Session 2025 SECTION 1.(e) Sunset.

4 RESERVED SECTION 2.

7 AMEND UPLAND BASIN DISSOLVED OXYGEN REQUIREMENTS SECTION 3.(a) G.S.

within the project baseline area prior to the development,development. as provided in this subdivision:

a.

b.

AIf demonstrationthe underapplicant provides this sub-subdivisiondemonstration, isthe onlyDepartment for pre-permitting design demonstration purposes and shall benot usedrequire onlyadditional tomechanical determine whether aeration or other active interventions areintended requiredto increase or maintain dissolved oxygen as a condition of permit issuance.issuance unless the Department provides written findings to the applicant within 90 days of the receipt of the demonstration identifying material errors in the applicant's demonstration based on peer-reviewed methodology or site-specific monitoring data." AMEND UPLAND BASIN FINANCIAL ASSURANCE REQUIREMENTS SECTION 4.

Page 2 Senate Bill 1001-Second Edition General Assembly Of North Carolina Session 2025 c.

If the applicant provides a demonstration under sub-subdivision b.

of this subdivision, the Department shall not require additional mechanical aeration or other active interventions intended to increase or maintain dissolved oxygen as a condition of permit issuance unless the Department provides written findings to the applicant within 90 days of the receipt of the demonstration that identify one or more specific deficiencies in the demonstration.

For purposes of this sub-subdivision, a specific deficiency may include a deficiency in the methodology, assumptions, data representativeness, model calibration, consistency with applicable water quality standards, or site-specific monitoring data relied upon in the demonstration.

d.

Nothing in this subdivision shall be construed to modify, supersede, or invalidate any certification issued under section 401 of the federal Clean Water Act, 33 U.S.C.

§ 1341, any federal permit, any permit issued under the Coastal Area Management Act, or any condition of those approvals.

The Department's acceptance of a demonstration under sub-subdivision b.

of this subdivision shall not limit or supersede the Department's continuing authority to require monitoring, adaptive management, mechanical aeration, or other corrective measures as necessary to maintain compliance with applicable water quality standards or with the conditions of any applicable permit or certification." AMEND UPLAND BASIN FINANCIAL ASSURANCE REQUIREMENTS SECTION 4.

Iftherequirementsofthissubdivisionaremetbyset-asidefunds,theapplicantIftherequirementsofthissubdivision aremetbyset-asidefunds,theapplicant shall establish a trust at a bank, savings and loan institution, credit union, brokerage firm, or company registered under the Investment Company Act of 1940, 15 U.S.C.

The Department may specify the form Page 2 Senate Bill 1001-First Edition General Assembly Of North Carolina Session 2025 in which the bond or set-aside funds are provided, as well as a procedure for transfer of the financial assurance if ownership of the upland basin marina changes." 5 UPLAND BASIN TECHNICAL CORRECTIONS SECTION 5.(a) G.S.

Senate Bill 1001-Second Edition Page 3 General Assembly Of North Carolina Session 2025 "§ 143-215.73M.

The Fund consists of General Fund appropriations, gifts, grants, devises, monies contributed byanon-Stateentityfor aparticularbeach nourishment ordamagemitigationor damagemitigation project or group of projects, and any other revenues specifically allocated to the Fund by an act of the General Assembly.

COASTAL RESERVE AGENCY AUTHORITY SECTION 6.5.(a) G.S.

113A-129.2 reads as rewritten:

"§ 113A-129.2.

Coastal Reserve Program.

(a) There is hereby created a North Carolina Coastal Reserve System for the purpose of acquiring, improving, and maintaining undeveloped coastal land and water areas in a natural state.

(b) This system shall be established and administered by the Department of Environmental Quality.

In so doing the Department shall consult with and seek the ongoing advice of Quality, subject to (i) use standards adopted for the system by the Coastal Resources Commission and (ii) permits and orders issued by the Coastal Resources Commission.

Commission concerning activities allowed in the system.

The Department may byrule define the areas to be included in this system and set standards for its use.

(c) This system shall be established within the coastal area as defined by G.S.