GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 694
Short Title: Study Water/Wastewater Regionalization. (Public)
Sponsors: Representatives Warren and Ross (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Agriculture and Environment, if favorable, Rules, Calendar, and Operations of the
House
April 3, 2025
*H694 -v-1*
A BILL TO BE ENTITLED 1
AN ACT TO DIRECT THE ENVIRONMENTAL FINAN CE CENTER AT THE SCHOOL OF 2
GOVERNMENT AT THE UN IVERSITY OF NORTH CAROLINA AT CHAPEL HILL 3
TO STUDY WATER AND W ASTEWATER REGIONALIZ ATION AND IDENTIFY 4
AREAS OF THE STATE W HERE THE COSTS OF WA TER OR WASTEWATER 5
SERVICES COULD BE LO WERED AND QUALITY OF THOSE SERVICES 6
IMPROVED. 7
Whereas, North Carolina has a significant number of distressed water and wastewater 8
systems, defined as systems that fail to generate sufficient revenues to adequately fund 9
management and operations, personnel, appropriate levels of maintenance, and reinvestment that 10
facilitate the provision of reliable water or wastewater services; and 11
Whereas, significant factors contributing to distressed systems include service 12
populations too small or too geographically dispersed, or the closure of major industrial or 13
commercial customers, which results in systems much larger and more expensive to operate than 14
is needed for the population they serve; and 15
Whereas, competition among local governments to capture large industrial or 16
commercial customers can lead to unnecessary facility duplication and result in short-term 17
decisions that do not reflect a responsible and prudent approach to long-term infrastructure needs; 18
and 19
Whereas, North Carolina's funding programs for water and wastewater infrastructure 20
demonstrate preferences for regionalization of water and wastewater infrastructure solutions in 21
order to create or sustain financial viability for systems with significant maintenance or upgrade 22
needs, or serving high poverty areas of the State; and 23
Whereas, there continue to be information gaps and lack of awareness on the part of 24
local government officials and policymakers of the benefits and obstacles to regionalization and 25
the information these officials and policymakers need to guide local decisions on regionalization 26
and other infrastructure decisions, particularly with regard to economic development and 27
growth-related infrastructure needs, water system efficiency measures, and costs related to the 28
development of new water sources; Now, therefore, 29
The General Assembly of North Carolina enacts: 30
SECTION 1. Study. – The Environmental Finance Center at the University of North 31
Carolina at Chapel Hill School of Government (EFC) shall study and report on the benefits, costs, 32
and financial, statutory, or regulatory obstacles to regionalization of water and wastewater 33 General Assembly Of North Carolina Session 2025
Page 2 House Bill 694-First Edition
services across the State. In the report, the EFC shall provide recommendations regarding all of 1
the following: 2
(1) Legislative or regulatory changes in financial, auditing, or oversight 3
requirements imposed on public water and wastewater systems that will lead 4
to more informed decision making on financial stability of those systems, and 5
the potential of various regionalization measures to address financial 6
instability. 7
(2) Particular public water or wastewater systems in the State that would benefit 8
significantly from various regionalization measures. 9
SECTION 2. Consultation. – In compiling its report and recommendations, the EFC 10
shall consult with the State Water Infrastructure Authority, the Local Government Commission, 11
the North Carolina League of Municipalities, the North Carolina Association of County 12
Commissioners, and any other entity the EFC finds relevant to the issues it is studying. 13
SECTION 3. Report. – The EFC shall report its findings and recommendations no 14
later than April 1, 2026, to the chairs of the House Oversight Committee, the chairs of the Senate 15
Committee on Regulatory Reform, and the Joint Legislative Commission on Governmental 16
Operations. 17
SECTION 4. Definitions. – For the purposes of this act, "public water system" has 18
the same meaning as in G.S. 130A-313 and "wastewater system" has the same meaning as in 19
G.S. 159G-20. 20
SECTION 5. This act is effective when it becomes law. 21