GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H D HOUSE BILL DRH30313-MHa-29 Short Title: Environmental Justice in North Carolina. (Public) Sponsors: Representative Crawford. Referred to: *DRH30313 -MHa-29* A BILL TO BE ENTITLED 1 AN ACT RELATING TO ENVIRONMENTAL JUSTICE IN NORTH CAROLINA. 2 The General Assembly of North Carolina enacts: 3 SECTION 1. The General Assembly finds all of the following: 4 (1) According to American Journal of Public Health studies published in 2014 5 and 2018 and affirmed by decades of research, Black, Indigenous, and Persons 6 of Color (BIPOC) and individuals with low income are disproportionately 7 exposed to environmental hazards and unsafe housing, facing higher levels of 8 air and water pollution, mold, lead, and pests. 9 (2) The cumulative impacts of environmental harms disproportionately and 10 adversely impact the health of BIPOC and communities with low income, 11 with climate change functioning as a threat multiplier. These disproportionate 12 adverse impacts are exacerbated by lack of access to affordable energy, 13 healthy food, green spaces, and other environmental benefits. 14 (3) Since 1994, Executive Order 12898 has required federal agencies to make 15 achieving environmental justice part of their mission by identifying and 16 addressing disproportionately high and adverse human health or 17 environmental effects of its programs, policies, and activities on minority 18 populations and populations with low incomes in the United States. 19 (4) In 2018, the Secretary of the North Carolina Department of Environmental 20 Quality established the Secretary's Environmental Justice and Advisory 21 Board. 22 (5) Executive Order 14008 issued in 2021 created the White House 23 Environmental Justice Interagency Council within the Executive Office of the 24 President and the White House Environmental Justice Advisory Council 25 within the Environmental Protection Agency. 26 (6) Following Executive Order 14008, the U.S. Department of the Interior enacted 27 Secretary Order 3399 to establish the Climate Task Force to address current 28 and historic environmental injustice. This order also made it the Department's 29 mission to consider environmental justice when conducting National 30 Environmental Protection Act analyses. 31 (7) Executive Order 14096 issued in 2023 established a goal that forty percent 32 (40%) of the overall benefits of certain federal climate, clean energy, 33 affordable and sustainable housing, and other investments flow to 34 disadvantaged communities that are marginalized by underinvestment and 35 overburdened by pollution. 36 H.B. 684 Apr 1, 2025 HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025 Page 2 DRH30313-MHa-29 (8) Governor Cooper issued Executive Order 246 in 2022 and Executive Order 1 292 in 2023 directing various actions to advance environmental justice in 2 North Carolina, including requirements that agencies consider environmental 3 justice when taking actions related to climate change, resilience, and clean 4 energy, and identify an environmental justice lead to serve as the point person 5 for agency environmental justice efforts. 6 (9) State agencies receiving federal funds are also subject to the 7 antidiscrimination requirements of Title VI of the Civil Rights Act of 1964. 8 (10) In response to the documented inadequacy of state and federal environmental 9 and land use laws to protect vulnerable communities, increasing numbers of 10 states have adopted formal environmental justice laws and policies. 11 (11) The 1991 Principles of Environmental Justice adopted by The First National 12 People of Color Environmental Leadership Summit demand the right of all 13 individuals to participate as equal partners at every level of decision making, 14 including needs assessment, planning, implementation, enforcement, and 15 evaluation. 16 (12) Section 33 of Article I of the North Carolina Constitution establishes the 17 government as a vehicle for the common benefit, protection, and security of 18 the State's citizens and not for the particular emolument or advantage of any 19 single set of persons who are only a part of that community. This principle, 20 coupled with Section 1 of Article I of the North Carolina Constitution's 21 guarantee of equal rights to enjoying life, liberty, and enjoyment of the fruits 22 of their own labor, and the assurance of timely and equitable justice for all set 23 forth in Article I. Sections 18 and 19 of the North Carolina Constitution 24 encourage political officials to identify how particular communities may be 25 unequally burdened or receive unequal protection under the law due to race, 26 income, or geographic location. 27 (13) Lack of a clear environmental justice policy has resulted in a piecemeal 28 approach to understanding and addressing environmental justice in North 29 Carolina and creates a barrier to establishing clear definitions, metrics, and 30 strategies to ensure meaningful engagement and more equitable distribution 31 of environmental benefits and burdens. 32 (14) It is the State's responsibility to pursue environmental justice for its residents 33 and to ensure that its agencies do not contribute to unfair distribution of 34 environmental benefits to or environmental burdens on low-income, 35 limited-English proficient, and BIPOC communities. 36 SECTION 2. Chapter 143 of the General Statutes is amended by adding a new 37 Article to read: 38 "Article 21D. 39 "Environmental Justice. 40 "§ 143-215.130. Purpose. 41 The purpose of this Article is to identify, reduce, and eliminate environmental health 42 disparities to improve the health and well-being of all State residents. 43 "§ 143-215.131. Definitions. 44 The following definitions apply in this Article: 45 (1) Communities of color. – Communities in which the share of nonwhites and 46 Hispanic or Latino (of any race) residents is forty percent (40%) or higher or 47 at least ten percent (10%) higher than the residing county or State share. 48 (2) Community. – A group of individuals living in geographic proximity to one 49 another as a census block group or at the municipal level. 50 General Assembly Of North Carolina Session 2025 DRH30313-MHa-29 Page 3 (3) Disproportionate impact. – Disproportionately higher adverse health or 1 environmental effects on communities of color, low-income communities, 2 limited English language proficiency communities, or indigenous 3 communities at levels that are statistically significant. 4 (4) Environmental benefits. – The assets and services that enhance the capability 5 of communities and individuals to function and flourish in society. Examples 6 of environmental benefits include access to a healthy environment and clean 7 natural resources, including air, water, land, green spaces, constructed 8 playgrounds, and other outdoor recreational facilities and venues; affordable 9 clean renewable energy sources; public transportation; fulfilling and dignified 10 green jobs; healthy homes and buildings; health care; nutritious food; 11 indigenous food and cultural resources; environmental enforcement; and 12 training and funding disbursed or administered by governmental agencies. 13 (5) Environmental burdens. – Any significant impact to clean air, water, and land, 14 including any destruction, damage, or impairment of natural resources 15 resulting from intentional or reasonably foreseeable causes. Examples of 16 environmental burdens include climate change impacts; air and water 17 pollution; improper sewage disposal; improper handling of solid wastes and 18 other noxious substances; excessive noise; activities that limit access to green 19 spaces, nutritious food, indigenous food or cultural resources, or constructed 20 outdoor playgrounds and other recreational facilities and venues; inadequate 21 remediation of pollution; reduction of groundwater levels; increased flooding 22 or stormwater flows; home and building health hazards, including lead paint, 23 lead plumbing, asbestos, and mold; and damage to inland waterways and 24 waterbodies, wetlands, forests, green spaces, or constructed playgrounds or 25 other outdoor recreational facilities and venues from private, industrial, 26 commercial, and government operations or other activities that contaminate 27 or alter the quality of the environment and pose a risk to public health. 28 (6) Environmental justice. – The just treatment and meaningful involvement of 29 all people, regardless of income, race, color, national origin, tribal affiliation, 30 or English language proficiency, in State action that affect human health, 31 well-being, quality of life, and the environment so that people: 32 a. Are protected from disproportionate and adverse human health effects 33 and environmental hazards, including: those related to climate change, 34 the cumulative impacts of environmental and other burdens, and the 35 legacy of racism or other structural barriers. 36 b. Have equitable access to environmental benefits in which to live, play, 37 work, learn, grow, worship, and engage in cultural and subsistence 38 practices. 39 c. Have meaningful participation in decision-making processes, 40 including the development, implementation, and enforcement of 41 environmental laws, regulations, and policies. 42 (7) Environmental justice communities. – Communities of color, low-income 43 communities, indigenous communities, and limited English language 44 proficiency communities that experience, or are at risk of, environmental 45 burdens or lack access to environmental benefits. 46 (8) Indigenous communities. – Communities where "American Indian Tribes" as 47 defined by 01 NCAC 15. 0292, reside or where the share of American and 48 Alaskan Native populations are five percent (5%) higher than the residing 49 county or State share. 50 General Assembly Of North Carolina Session 2025 Page 4 DRH30313-MHa-29 (9) Limited English language proficiency communities. – Communities where at 1 least one percent (1%) or more of households do not have a member 14 years 2 or older who speaks English "very well" as defined by the U.S. Census 3 Bureau. 4 (10) Low-income communities. – Communities in which the share of population 5 experiencing poverty is more than twenty percent (20%) or the share of 6 households in poverty is at least five percent (5%) higher than the residing 7 county or State share. 8 (11) Meaningful participation. – The opportunity for all individuals to participate 9 in energy, climate change, and environmental decision making. Examples 10 include needs assessments, planning, implementation, permitting, compliance 11 and enforcement, and evaluation. Meaningful participation also integrates 12 diverse knowledge systems, histories, traditions, languages, and cultures of 13 Indigenous communities in decision-making processes and requires that 14 communities are enabled and administratively assisted to participate fully 15 through education and training. Finally, meaningful participation requires the 16 State to operate in a transparent manner with regard to opportunities for 17 community input and also encourages the development of environmental, 18 energy, and climate change stewardship. 19 (12) Program. – The Environmental Justice Program of the Department of 20 Environmental Quality. 21 (13) Rules Review Commission. – As defined in G.S. 143B-30.1. 22 "§ 143-215.132. Environmental justice State policy. 23 It is the policy of the State that no segment of the population of the State should, because of 24 its racial, cultural, or economic makeup, bear a disproportionate share of environmental burdens 25 or be denied an equitable share of environmental benefits. It is further the policy of the State to 26 provide the opportunity for the meaningful participation of all individuals, with particular 27 attention to environmental justice communities, in the development, implementation, or 28 enforcement of any law, regulation, or policy. 29 "§ 143-215.133. Implementation of State policy. 30 (a) As used in this Article, "covered agencies" means the following State agencies: the 31 Departments of Environmental Quality, Health and Human Services, Transportation, Commerce, 32 Public Safety, Agriculture and Consumer Services, and Public Instruction and the Utilities 33 Commission. 34 (b) The covered agencies shall consider cumulative environmental burdens and access to 35 environmental benefits when making decisions about the environment, energy, climate, and 36 public health projects; facilities and infrastructure; and associated funding. 37 (c) Each of the covered agencies shall create and adopt on or before July 1, 2027, a 38 community engagement plan that describes how the agency will engage with environmental 39 justice communities as it evaluates new and existing activities and programs. Each plan shall 40 describe how the agency plans to provide meaningful participation in compliance with Title VI 41 of the Civil Rights Act of 1964. 42 (d) The covered agencies shall submit an annual summary beginning on January 15, 43 2026, and annually thereafter, to the Environmental Justice Advisory Council, detailing all 44 complaints alleging environmental justice issues or Title VI violations and any agency action 45 taken to resolve the complaints. The Advisory Council shall provide any recommendations 46 concerning those reports within 60 days after receipt of the complaint summaries. Agencies shall 47 consider the recommendations of the Advisory Council pursuant to sub-subdivision (c)(1)e. of 48 G.S. 143-215.135 and substantively respond in writing if an agency chooses not to implement 49 any of the recommendations within 90 days after receipt of the recommendations. 50 General Assembly Of North Carolina Session 2025 DRH30313-MHa-29 Page 5 (e) The Program, in consultation with the Environmental Justice Advisory Council and 1 the Interagency Environmental Justice Committee, shall review the definitions contained in 2 G.S. 143-215.131 at least every five years and recommend revisions to the General Assembly to 3 ensure the definition achieves the environmental justice State policy. 4 (f) The Program, in consultation with the Interagency Environmental Justice Committee 5 and the Environmental Justice Advisory Council, shall issue guidance on how the covered 6 agencies shall determine which investments provide environmental benefits to environmental 7 justice communities on or before September 15, 2025. A draft version of the guidance shall be 8 released for a 40-day public comment period before being finalized. 9 (g) Covered Agency Baseline Spending Reports. – 10 (1) On or before February 15, 2026, the covered agencies shall, in accordance 11 with the guidance document developed by the Program pursuant to subsection 12 (f) of this section, review the past three years and generate baseline spending 13 reports that include all of the following: 14 a. Where investments were made, if any, and which geographic areas, at 15 the municipal or census block group level, where practicable, received 16 environmental benefits from those investments. 17 b. A description and quantification of the environmental benefits as an 18 outcome of the investment. 19 (2) The covered agencies shall publicly post the baseline spending reports on their 20 respective websites. 21 (h) On or before July 1, 2026, it shall be the goal of the covered agencies to direct 22 investments proportionately in environmental justice communities. 23 (1) Beginning on January 15, 2028, and annually thereafter, the covered agencies 24 shall either integrate the following information into existing annual spending 25 reports or issue annual spending reports that include all of the following: 26 a. Where investments were made and which geographic areas, at the 27 municipal and census block group level, where practicable, received 28 environmental benefits from those investments. 29 b. The percentage of overall environmental benefits from those 30 investments provided to environmental justice communities. 31 (2) The covered agencies shall publicly post the annual spending reports on their 32 respective websites. 33 (i) Beginning on January 15, 2027, the covered agencies shall each issue and publicly 34 post an annual report summarizing all actions taken to incorporate environmental justice into its 35 policies or determinations, rulemaking, permit proceedings, or project review. 36 "§ 143-215.134. Rulemaking. 37 (a) On or before July 1, 2027, the Department of Environmental Quality, in consultation 38 with the Environmental Justice Advisory Council and the Interagency Environmental Justice 39 Committee, shall adopt rules to: 40 (1) Define cumulative environmental burdens; 41 (2) Implement consideration of cumulative environmental burdens within the 42 Program; and 43 (3) Inform how the public and the covered agencies implement the consideration 44 of cumulative environmental burdens and use the environmental justice 45 mapping tool developed by the Program. 46 (b) On or before July 1, 2028, and as appropriate thereafter, the covered agencies, in 47 consultation with the Environmental Justice Advisory Council, shall adopt or amend policies and 48 procedures, plans, guidance, and rules, where applicable, to implement this Article. 49 (c) The following requirements apply to rulemaking by covered agencies: 50 General Assembly Of North Carolina Session 2025 Page 6 DRH30313-MHa-29 (1) Prior to drafting new rules required by this Article, agencies shall consult with 1 the Environmental Justice Advisory Council to discuss the scope and 2 proposed content of rules to be developed. Agencies shall also submit draft 3 rulemaking concepts to the Advisory Council for review and comment. Any 4 proposed rule shall be provided to the Advisory Council not less than 45 days 5 prior to submitting the proposed rule or rules to the Rules Review Commission 6 (RRC). 7 (2) The Advisory Council shall vote and record individual members' support or 8 objection to any proposed rule before it is submitted to RRC and make 9 documentation of that proceeding as part of the rulemaking record submitted 10 to RRC. 11 "§ 143-215.135. Environmental Justice Advisory Council and Interagency Environmental 12 Justice Committee. 13 (a) Advisory Council and Interagency Committee. – 14 (1) There is created: 15 a. The Environmental Justice Advisory Council (Advisory Council) to 16 provide independent advice and recommendations to State agencies 17 and the General Assembly on matters relating to environmental 18 justice, including the integration of environmental justice principles 19 into State programs, policies, regulations, legislation, and activities. 20 b. The Interagency Environmental Justice Committee (Interagency 21 Committee) to guide and coordinate State agency implementation of 22 the Environmental Justice State Policy and provide recommendations 23 to the General Assembly for amending the definitions and protections 24 set forth in this Article. 25 (2) Appointments to the groups created in this subsection shall be made on or 26 before December 15, 2025. 27 (3) Both the Advisory Council and the Interagency Committee shall consider and 28 incorporate the Equitable Access & Just Transition to Clean Energy 29 provisions of the North Carolina Clean Energy Plan in their work. 30 (b) Meetings. – The Advisory Council and the Interagency Committee shall each meet 31 not more than eight times per year, with at least four meetings occurring jointly. Meetings may 32 be held in person, remotely, or in a hybrid format to facilitate maximum participation and shall 33 be recorded and publicly posted on the Secretary's website. 34 (c) Duties. – 35 (1) The Advisory Council shall have the following duties: 36 a. To advise State agencies on environmental justice issues and on how 37 to incorporate environmental justice into agency procedures and 38 decision making and evaluate the potential for environmental burdens 39 or disproportionate impacts on environmental justice communities as 40 a result of State actions and the potential for environmental benefits to 41 environmental justice communities. 42 b. To advise State agencies in the development of community 43 engagement plans. 44 c. To advise State agencies on the use of the environmental justice 45 mapping tool established by the Program and on the enhancement of 46 meaningful participation, reduction of environmental burdens, and 47 equitable distribution of environmental benefits. 48 d. To review and provide feedback to the relevant State agency, pursuant 49 to G.S. 143-215.134(c), on any proposed rules for implementing this 50 Article. 51 General Assembly Of North Carolina Session 2025 DRH30313-MHa-29 Page 7 e. To receive and review annual State agency summaries of complaints 1 alleging environmental justice issues, including Title VI complaints, 2 and suggest options or alternatives to State agencies for the resolution 3 of systemic issues raised in or by the complaints. 4 (2) The Interagency Committee shall have the following duties: 5 a. To consult with the Program in the development of the guidance 6 document required by G.S. 143-215.133(f) on how to determine which 7 investments provide environmental benefits to environmental justice 8 communities. 9 b. On or before July 1, 2025, to develop, in consultation with the Program 10 and the Environmental Justice Advisory Council, a set of core 11 principles to guide and coordinate the development of the State agency 12 community engagement plans required under G.S 143-215.133(c). 13 (3) The Advisory Council and the Interagency Committee shall jointly: 14 a. Consider and recommend to the General Assembly, on or before 15 December 1, 2026, amendments to the terminology, thresholds, and 16 criteria of the definition of environmental justice communities, 17 including whether to include populations more likely to be at higher 18 risk for poor health outcomes in response to environmental burdens. 19 b. Examine existing data and studies on environmental justice and 20 consult with State, federal, and local agencies and affected 21 communities regarding the impact of current statutes, regulations, and 22 policies on the achievement of environmental justice. 23 (d) Membership. – 24 (1) Advisory Council. – Each member of the Advisory Council shall be well 25 informed regarding environmental justice principles and committed to 26 achieving environmental justice in North Carolina and working 27 collaboratively with other members of the Advisory Council. To the greatest 28 extent practicable, Advisory Council members shall represent diversity in 29 race, ethnicity, age, gender, urban and rural areas, and different regions of 30 the State. The Advisory Council shall consist of the following 11 members, 31 with a goal to have more than fifty percent (50%) residing in environmental 32 justice communities: 33 a. The head of the Program or designee. 34 b. The following members appointed by the Governor: 35 1. One representative of municipal government. 36 2. One representative of a social justice organization. 37 3. One representative of mobile home park residents. 38 4. One representative of a statewide environmental organization. 39 5. One person representing an organization working on food 40 security issues. 41 c. One person who resides in a census block group that is designated as 42 an environmental justice community by the House of Representatives 43 upon the recommendation of the Speaker of the House of 44 Representatives. 45 d. One person who is a representative of immigrant communities in 46 North Carolina appointed by the Senate upon the recommendation of 47 the President Pro Tempore of the Senate. 48 e. One representative of a State-recognized Native American Indian 49 tribe, recommended and appointed by the North Carolina Indian 50 Affairs Commission. 51 General Assembly Of North Carolina Session 2025 Page 8 DRH30313-MHa-29 f. The Executive Director of the North Carolina Housing Finance 1 Agency or designee. 2 g. The Executive Director of the North Carolina Land and Water Fund 3 or designee. 4 (2) Interagency Committee. – The Interagency Committee shall consist of the 5 following nine members: 6 a. The Superintendent of Public Instruction or designee. 7 b. The Secretary of the Department of Environmental Quality or 8 designee. 9 c. The Secretary of Transportation or designee. 10 d. The Director of the North Carolina Housing Finance Agency or 11 designee. 12 e. The Commissioner of the Department of Agriculture and Consumer 13 Services or designee. 14 f. The Secretary of the Department of Health and Human Services or 15 designee. 16 g. The Director of the Division of Emergency Management of the 17 Department of Public Safety or designee. 18 h. The Secretary of the Department of Natural and Cultural Resources or 19 designee. 20 i. The Chair of the Utilities Commission or designee. 21 (3) The Advisory Council and the Interagency Committee may each elect two 22 cochairs. 23 (4) After initial appointments, all appointed members of the Advisory Council 24 shall serve six-year terms and serve until a successor is appointed. The initial 25 terms shall be staggered so that one-third of the appointed members shall serve 26 a two-year term, another third of the appointed members shall serve a 27 four-year term, and the remaining members shall be appointed to a six-year 28 term. 29 (5) Vacancies of the Advisory Council shall be appointed in the same manner as 30 original appointments. 31 (6) The Advisory Council shall have the administrative, technical, and legal 32 assistance of the Program." 33 SECTION 3. Reports. – On or before December 15, 2027, the Program shall submit 34 a report to the Joint Legislative Commission on Governmental Operations and the Fiscal 35 Research Division of the General Assembly describing whether the baseline spending reports 36 completed pursuant to G.S. 143-215.133(g), as enacted by Section 2 of this act, indicate if any 37 municipalities or portions of municipalities are routinely underserved with respect to 38 environmental benefits, taking into consideration whether those areas receive, averaged across 39 three years, a significantly lower percentage of environmental benefits from State investments as 40 compared to other municipalities or portions of municipalities in the State. This report shall 41 include a recommendation as to whether a statutory definition of "underserved community" and 42 any other revisions to Article 21D of Chapter 143 of the General Statutes, as enacted by Section 43 2 of this act, are necessary to best carry out the policies described in this act. 44 SECTION 4. This act is effective when it becomes law. 45