GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 1 HOUSE BILL 616 Short Title: Selectsite Readiness Program Modifications. (Public) Sponsors: Representative Johnson. For a complete list of sponsors, refer to the North Carolina General Assembly web site. Referred to: Finance, if favorable, Rules, Calendar, and Operations of the House April 1, 2025 *H616 -v-1* A BILL TO BE ENTITLED 1 AN ACT TO MODIFY THE SELECTSITE READINESS PROGRAM. 2 The General Assembly of North Carolina enacts: 3 SECTION 1. Section 11.12 of S.L. 2023-134 reads as rewritten: 4 "SELECTSITE READINESS PROGRAM 5 "SECTION 11.12.(a) Funds appropriated by Section 11.4 of S.L. 2022-74 to the Department 6 of Commerce (Department) and allocated to the nonprofit corporation with which the 7 Department contracts pursuant to G.S. 143B-431.01(b) that remain unspent as of June 30, 2023, 8 shall be transferred to the North Carolina Selectsite Fund established in subsection (c) of this 9 section to shall be used for purposes consistent with subdivision (e)(1) of this section. Of the 10 funds appropriated from the Economic Development Project Reserve established in Section 2.2 11 of this act to the Department to be allocated to the nonprofit corporation with which the 12 Department contracts pursuant to G.S. 143B-431.01(b), the sum of ten million dollars 13 ($10,000,000) in nonrecurring funds for the 2024-2025 fiscal year shall be used to support local 14 governments or a partnership of local governments in conducting due diligence as described in 15 subdivision (b)(5) of this section. 16 "SECTION 11.12.(b) Purpose. – It is in the best economic and developmental interests of 17 the State to support the development of selectsites to ensure the State's ongoing competitiveness 18 for major manufacturing opportunities, including, but not limited to, the aerospace, automotive, 19 clean energy, food processing, semiconductor, and life science industries. The purpose of this 20 section is to establish a competitive grant program serving to do the following: 21 (1) Identify and evaluate up to 15 selectsites of less than 1,000 acres for preferred 22 development and marketing. 23 (2) Assist local governments or a partnership of local governments in the 24 acquisition of a newly identified or existing selectsite. 25 (3) Support local governments or a partnership of local governments to analyze, 26 plan, perform engineering design, permit, install, or upgrade public 27 infrastructure, including publicly owned water, gas, and sewer systems; 28 transportation infrastructure; and the electrical utility lines necessary to meet 29 the needs of prospective employers for selectsites. 30 (4) Support local governments or a partnership of local governments to fund 31 on-site preparation, including permitting, clearing, grading, or other related 32 expenses for selectsites. 33 (5) Support local governments or a partnership of local governments in 34 conducting due diligence, including, but not limited to, the following: site 35 General Assembly Of North Carolina Session 2025 Page 2 House Bill 616-First Edition characteristics, preliminary engineering reports for water and wastewater 1 provision to the site, geotechnical investigations and evaluations, 2 environmental permitting, studies and assessments related to road and 3 highway infrastructure to serve the site, and other assessments as needed. 4 (6) Facilitate coordination between the economic development entities and the 5 North Carolina Department of Environmental Quality and the North Carolina 6 Department of Transportation to expedite needs related to timely site 7 development. 8 "SECTION 11.12.(c) Fund Established. – There is created in the Department a special fund 9 to be known as the North Carolina Selectsite Fund for grants awarded by the Economic 10 Development Partnership of North Carolina (EDPNC) for purposes consistent with this section. 11 EDPNC shall be responsible for administering the program. The provisions prohibiting EDPNC 12 from the awarding of grants contained in G.S. 143B-431.01 do not apply to the Fund. 13 "SECTION 11.12.(d) Definitions. – The definitions in Section 11.11(c) of S.L. 2022-74 14 apply in this section. For purposes of this section, a "selectsite" is a parcel of contiguous property 15 consisting of less than 1,000 acres that is viable for industrial development and listed in the report 16 pursuant to subsection (h) of this section. For purposes of this section, "Fund" is the North 17 Carolina Selectsite Fund. 18 "SECTION 11.12.(e) Allocation. – EDPNC shall allocate monies in the Fund on the 19 following basis: 20 (1) Unspent funds transferred pursuant to subsection (a) of this section shall be 21 used On a biennial basis, no more than one hundred fifty thousand dollars 22 ($150,000) shall be used for engaging a national site selection firm through a 23 competitive bid process to produce a biennial report identifying and 24 evaluating 15 10 new selectsites for preferred development and marketing, of 25 which seven five must be less than 500 acres and of which an additional two 26 three must be less than 100 acres. Geographic diversity must be a priority 27 consideration in the selection of new sites beginning with the report due in 28 2026. 29 (2) Funds appropriated to the Fund for local government grants shall be allocated 30 for the purposes outlined in subdivisions (b)(2), (b)(3), (b)(4), and (b)(5) of 31 this section for selectsites determined pursuant to subdivision (1) of this 32 subsection. EDPNC shall prioritize local government grants that have the 33 greatest potential to reduce the time for site readiness and reduce the risk of 34 unforeseen conditions that could affect the site viability for advanced 35 manufacturing projects. EDPNC shall base the grant amount on total 36 development needs for the selectsite, prior investment in the selectsite by one 37 or more local governments, the ability of one or more local governments to 38 invest in the selectsite, and the ability and level of participation promised by 39 the local government in exchange for a grant from the Fund. Monies may only 40 be granted for, and used to acquire, a selectsite for which (i) one or more local 41 governments have a binding option or offer to purchase and (ii) all basic due 42 diligence has been completed, including, but not limited to, boundary surveys, 43 title searches, State Historic Preservation Office reviews, Phase I 44 environmental, Threatened & Endangered Species studies, and wetlands 45 delineation. 46 "SECTION 11.12.(f) Matching Funds. – If a grant is awarded that includes site acquisition 47 assistance, the local governments to which a grant is awarded shall provide the remainder of the 48 cost of purchasing the selectsite not provided by the grant. 49 "SECTION 11.12.(g) Agreements Required. – Monies may be disbursed from the Fund only 50 in accordance with agreements entered into between EDPNC and a local government or a 51 General Assembly Of North Carolina Session 2025 House Bill 616-First Edition Page 3 government partnership. The agreement must include all of the performance criteria, remedies, 1 and other safeguards required to secure the assistance provided to ready the selectsite for a major 2 employer and must require EDPNC to recapture a proportionate amount of assistance provided 3 under this section for failure by a local government or government partnership to meet and 4 maintain the selectsite for availability for the purposes for which the assistance was provided. 5 "SECTION 11.12.(h) Reporting. – EDPNC shall file an annual report to the Department on 6 or before April 1 of each year. The annual report prepared will document the total amount of 7 grants awarded, matching funds required, activities to ready selectsites and associated costs, any 8 major employers locating at an improved or acquired selectsite, and the unallocated amount for 9 grants remaining in the Fund. The Department shall prepare and file on or before May 1 of each 10 year with the Senate Appropriations Committee on Agriculture, Natural, and Economic 11 Resources; the House of Representatives Appropriations Committee on Agriculture and Natural 12 and Economic Resources; the Joint Legislative Economic Development and Global Engagement 13 Oversight Committee; the Office of State Budget and Management; and the Fiscal Research 14 Division a consolidated report for the preceding fiscal year concerning the information required 15 by this section. 16 "SECTION 11.12.(i) Program Guidelines. – EDPNC shall develop guidelines related to the 17 administration of this program. At least 20 days before the effective date of any guidelines or 18 nontechnical amendments to the guidelines, EDPNC shall publish the proposed guidelines on its 19 website and provide notice to persons who have requested notice of proposed guidelines. In 20 addition, EDPNC must accept oral and written comments on the proposed guidelines and shall, 21 in its discretion, consider such comments before finalizing the guidelines during the 15 business 22 days beginning on the first day that EDPNC has completed these notifications. Guidelines 23 adopted under this section shall not be subject to the requirements of Article 2A of Chapter 150B 24 of the General Statutes." 25 SECTION 2. This act is effective when it becomes law and applies to appropriations 26 to, and unencumbered funds in, the North Carolina Selectsite Fund on or after that date. 27