North Carolina 2025-2026 Regular Session

North Carolina House Bill H752 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 752
	3	+	H D
	4	+	HOUSE BILL DRH10314-MWa-7
	5	+
5	6
6	7
7	8		Short Title: Transportation Economic Development Funding. (Public)
8		-	Sponsors: Representatives Reives, Carney, Belk, and Cervania (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
11		-	April 3, 2025
12		-	H752 -v-1
	9	+	Sponsors: Representative Reives.
	10	+	Referred to:
	11	+
	12	+	DRH10314 -MWa-7
13	13		A BILL TO BE ENTITLED 1
14	14		AN ACT TO FUND RAILROAD AND AIRPORT DEVELOPMENT AND TO FUND THE 2
15	15		PORT OF MOREHEAD CITY. 3
16	16		The General Assembly of North Carolina enacts: 4
17	17		5
18	18		GENERAL ASSEMBLY FINDINGS 6
19	19		SECTION 1. The General Assembly finds that: 7
20	20		(1) Transportation infrastructure is a foundational pillar for economic 8
21	21		development, enabling the efficient movement of goods, services, and people 9
22	22		across North Carolina, strengthening communities' abilities to connect and 10
23	23		grow. 11
24	24		(2) North Carolina's railroads serve as a critical component of the State's logistics 12
25	25		and supply chain infrastructure, necessary for freight movement, reducing 13
26	26		transportation costs, and providing a sustainable alternative to road 14
27	27		transportation, vital for supporting North Carolina's manufacturing and 15
28	28		agricultural industries. Upgrading our railroad infrastructure will reduce 16
29	29		transportation costs, improve freight efficiency, and will help alleviate road 17
30	30		congestion. 18
31	31		(3) Airports are integral anchors for regional economies, serving as key 19
32	32		transportation hubs, direct and indirect job creators, catalysts for trade, 20
33	33		tourism, and business growth, and supports for key industries. They attract 21
34	34		infrastructure investment and enhance connectivity, which strengthens North 22
35	35		Carolina's communities and expands its access to global opportunities. 23
36	36		(4) Located near more than seventy percent (70%) of the U.S. industrial base and 24
37	37		easily accessed by Interstates 95 and 40 via U.S. Highways 70 and 17, the Port 25
38	38		of Morehead City fills an important role in our chemical products and bulk 26
39	39		shipping industries. Along with the Port of Wilmington, it contributes heavily 27
40	40		to the economy of North Carolina, helping generate sixteen billion one 28
41	41		hundred million dollars ($16,100,000,000) in economic output. The 29
42	42		construction of a roll-on-roll-off facility would greatly enhance the port's 30
43	43		efficiency and capacity, fostering job creation, strengthening supply chains, 31
44	44		and driving further economic growth across North Carolina. 32
45	45		(5) Investing in transportation infrastructure is essential for keeping North 33
46	46		Carolina competitive in both national and global markets, ensuring efficient 34
47		-	trade, business growth, and economic resilience. 35 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 752-First Edition
49		-	1
50		-	RAILROAD DEVELOPMENT FUND 2
51		-	SECTION 2.1. Article 2D of Chapter 136 of the General Statutes reads as rewritten: 3
52		-	"Article 2D. 4
53		-	"Railroad Revitalization.Development. 5
54		-	… 6
55		-	"§ 136-44.41. Special Economic Development Fund for Rail. 7
56		-	(a) Creation. – The Special Economic Development Fund for Rail (Rail Fund) is 8
57		-	established as a special fund within the General Fund to be administered by the Division of Rail 9
58		-	in accordance with this Article. 10
59		-	(b) Purpose. – The purpose of the Rail Fund is primarily for rail construction, rail 11
60		-	improvements, industry rail connections, railcar and locomotive acquisition, and railyard 12
61		-	construction. A portion of the Rail Fund may also be used for project preparation uses such as 13
62		-	preliminary engineering and due diligence. 14
63		-	(c) Source. – The Rail Fund shall consist of funds transferred to the Rail Fund and 15
64		-	revenue generated by Rail Fund investments and interest. Monies in the Rail Fund shall be 16
65		-	invested in accordance with G.S. 147-69.1, except that all interest or income received and 17
66		-	accruing on the monthly balance of the Rail Fund shall be paid into the Rail Fund. Unexpended 18
67		-	funds appropriated to the Rail Fund shall not revert. 19
68		-	(d) Uses. – Funds in the Rail Fund shall be used in accordance with the purpose of this 20
69		-	section. 21
70		-	(e) Cost-Sharing. – An allocation of funds under this section shall be in accordance with 22
71		-	the following requirements: 23
72		-	(1) No more than sixty percent (60%) of the annual allocations from the Rail Fund 24
73		-	shall be for the State match on federal grant applications. 25
74		-	(2) No more than thirty percent (30%) of the annual allocations from the Rail 26
75		-	Fund shall be for project preparation uses such as preliminary engineering and 27
76		-	due diligence. 28
77		-	(f) Criteria. – The Division shall establish procedures and criteria and adopt rules for 29
78		-	allocating funds from the Rail Fund in accordance with the purpose of this section and the 30
	47	+	trade, business growth, and economic resilience. 35
	48	+	36
	49	+	H.B. 752
	50	+	Apr 2, 2025
	51	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRH10314-MWa-7
	53	+	RAILROAD DEVELOPMENT FUND 1
	54	+	SECTION 2.1. Article 2D of Chapter 136 of the General Statutes reads as rewritten: 2
	55	+	"Article 2D. 3
	56	+	"Railroad Revitalization.Development. 4
	57	+	… 5
	58	+	"§ 136-44.41. Special Economic Development Fund for Rail. 6
	59	+	(a) Creation. – The Special Economic Development Fund for Rail (Rail Fund) is 7
	60	+	established as a special fund within the General Fund to be administered by the Division of Rail 8
	61	+	in accordance with this Article. 9
	62	+	(b) Purpose. – The purpose of the Rail Fund is primarily for rail construction, rail 10
	63	+	improvements, industry rail connections, railcar and locomotive acquisition, and railyard 11
	64	+	construction. A portion of the Rail Fund may also be used for project preparation uses such as 12
	65	+	preliminary engineering and due diligence. 13
	66	+	(c) Source. – The Rail Fund shall consist of funds transferred to the Rail Fund and 14
	67	+	revenue generated by Rail Fund investments and interest. Monies in the Rail Fund shall be 15
	68	+	invested in accordance with G.S. 147-69.1, except that all interest or income received and 16
	69	+	accruing on the monthly balance of the Rail Fund shall be paid into the Rail Fund. Unexpended 17
	70	+	funds appropriated to the Rail Fund shall not revert. 18
	71	+	(d) Uses. – Funds in the Rail Fund shall be used in accordance with the purpose of this 19
	72	+	section. 20
	73	+	(e) Cost-Sharing. – An allocation of funds under this section shall be in accordance with 21
	74	+	the following requirements: 22
	75	+	(1) No more than sixty percent (60%) of the annual allocations from the Rail Fund 23
	76	+	shall be for the State match on federal grant applications. 24
	77	+	(2) No more than thirty percent (30%) of the annual allocations from the Rail 25
	78	+	Fund shall be for project preparation uses such as preliminary engineering and 26
	79	+	due diligence. 27
	80	+	(f) Criteria. – The Division shall establish procedures and criteria and adopt rules for 28
	81	+	allocating funds from the Rail Fund in accordance with the purpose of this section and the 29
	82	+	following criteria: 30
	83	+	(1) The rail project is projected to increase capital investment, jobs, and revenue, 31
	84	+	independently determined by the Department. 32
	85	+	(2) Allocations shall be competitive and, after consultation with the Department 33
	86	+	of Commerce, awarded to proposals with the greatest projected economic 34
	87	+	impact benefitting North Carolina. 35
	88	+	(g) Administrative Costs. – The Department may use no more than three percent (3%) of 36
	89	+	the Rail Fund for administrative costs. 37
	90	+	(h) Report. – No later than March 1, 2026, the Division shall submit an initial report on 38
	91	+	the implementation of this section to the Joint Legislative Commission on Governmental 39
	92	+	Operations, the Joint Legislative Transportation Oversight Committee, and the Fiscal Research 40
	93	+	Division and thereafter shall submit an annual report no later than December 1 of each year. The 41
	94	+	report shall include the following information: use of funds, projects approved, and estimated 42
	95	+	economic impact." 43
	96	+	SECTION 2.2. There is appropriated from the General Fund to the Special Economic 44
	97	+	Development Fund for Rail the sum of fifty million dollars ($50,000,000) in nonrecurring funds. 45
	98	+	46
	99	+	AIRPORT DEVELOPMENT FUND 47
	100	+	SECTION 3.1. Chapter 63 of the General Statutes is amended by adding a new 48
	101	+	Article to read: 49
	102	+	"Article 7A. 50
	103	+	"Airport Special Economic Development Fund. 51 General Assembly Of North Carolina Session 2025
	104	+	DRH10314-MWa-7 Page 3
	105	+	"§ 63-76. Special Economic Development Fund for Airports. 1
	106	+	(a) Creation. – The Special Economic Development Fund for Airports (Airports Fund) is 2
	107	+	established as a special fund within the General Fund to be administered by the Division of 3
	108	+	Aviation in accordance with this Article. 4
	109	+	(b) Purpose. – The purpose of the Airports Fund is for airport capital improvements and 5
	110	+	to incentivize and retain economically strategic flights. 6
	111	+	(c) Source. – The Airports Fund shall consist of funds transferred to the Airports Fund 7
	112	+	and revenue generated by Airports Fund investments and interest. Monies in the Airports Fund 8
	113	+	shall be invested in accordance with G.S. 147-69.1, except that all interest or income received 9
	114	+	and accruing on the monthly balance of the Airports Fund shall be paid into the Airports Fund. 10
	115	+	Unexpended funds appropriated to the Airports Fund shall not revert. 11
	116	+	(d) Uses. – Funds in the Airports Fund shall be used in accordance with the purpose of 12
	117	+	this section. 13
	118	+	(e) Limitations. – An allocation of funds under this section shall be in accordance with 14
	119	+	the following limitations: 15
	120	+	(1) No more than eighty percent (80%) of the annual allocations from the Airports 16
	121	+	Fund shall be used for airport capital improvements, including those necessary 17
	122	+	to attract or retain commercial aviation operators or manufacturers that require 18
	123	+	the use of an airport. 19
	124	+	(2) No more than seventeen percent (17%) of the annual allocations from the 20
	125	+	Airports Fund shall be used to incentivize and retain economically strategic 21
	126	+	flights. 22
	127	+	(3) Up to twenty percent (20%) of the annual allocations from the Airports Fund 23
	128	+	may be applied to airport safety improvements, to the extent that the 24
	129	+	Department determines that the lack of airport safety improvements is 25
	130	+	inhibiting economic growth. 26
	131	+	(f) Cost-Sharing. – The total allocation of funds from the Airports Fund shall not exceed 27
	132	+	fifty percent (50%) of the cost for airport improvements. 28
	133	+	(g) Criteria. – The Division shall establish procedures and criteria and adopt rules for 29
	134	+	allocating funds from the Airports Fund in accordance with the purpose of this section and the 30
79	135		following criteria: 31
80		-	(1) The rail project is projected to increase capital investment, jobs, and revenue, 32
81		-	independently determined by the Department. 33
82		-	(2) Allocations shall be competitive and, after consultation with the Department 34
83		-	of Commerce, awarded to proposals with the greatest projected economic 35
84		-	impact benefitting North Carolina. 36
85		-	(g) Administrative Costs. – The Department may use no more than three percent (3%) of 37
86		-	the Rail Fund for administrative costs. 38
87		-	(h) Report. – No later than March 1, 2026, the Division shall submit an initial report on 39
88		-	the implementation of this section to the Joint Legislative Commission on Governmental 40
89		-	Operations, the Joint Legislative Transportation Oversight Committee, and the Fiscal Research 41
90		-	Division and thereafter shall submit an annual report no later than December 1 of each year. The 42
91		-	report shall include the following information: use of funds, projects approved, and estimated 43
92		-	economic impact." 44
93		-	SECTION 2.2. There is appropriated from the General Fund to the Special Economic 45
94		-	Development Fund for Rail the sum of fifty million dollars ($50,000,000) in nonrecurring funds. 46
95		-	47
96		-	AIRPORT DEVELOPMENT FUND 48
97		-	SECTION 3.1. Chapter 63 of the General Statutes is amended by adding a new 49
98		-	Article to read: 50
99		-	"Article 7A. 51 General Assembly Of North Carolina Session 2025
100		-	House Bill 752-First Edition Page 3
101		-	"Airport Special Economic Development Fund. 1
102		-	"§ 63-76. Special Economic Development Fund for Airports. 2
103		-	(a) Creation. – The Special Economic Development Fund for Airports (Airports Fund) is 3
104		-	established as a special fund within the General Fund to be administered by the Division of 4
105		-	Aviation in accordance with this Article. 5
106		-	(b) Purpose. – The purpose of the Airports Fund is for airport capital improvements and 6
107		-	to incentivize and retain economically strategic flights. 7
108		-	(c) Source. – The Airports Fund shall consist of funds transferred to the Airports Fund 8
109		-	and revenue generated by Airports Fund investments and interest. Monies in the Airports Fund 9
110		-	shall be invested in accordance with G.S. 147-69.1, except that all interest or income received 10
111		-	and accruing on the monthly balance of the Airports Fund shall be paid into the Airports Fund. 11
112		-	Unexpended funds appropriated to the Airports Fund shall not revert. 12
113		-	(d) Uses. – Funds in the Airports Fund shall be used in accordance with the purpose of 13
114		-	this section. 14
115		-	(e) Limitations. – An allocation of funds under this section shall be in accordance with 15
116		-	the following limitations: 16
117		-	(1) No more than eighty percent (80%) of the annual allocations from the Airports 17
118		-	Fund shall be used for airport capital improvements, including those necessary 18
119		-	to attract or retain commercial aviation operators or manufacturers that require 19
120		-	the use of an airport. 20
121		-	(2) No more than seventeen percent (17%) of the annual allocations from the 21
122		-	Airports Fund shall be used to incentivize and retain economically strategic 22
123		-	flights. 23
124		-	(3) Up to twenty percent (20%) of the annual allocations from the Airports Fund 24
125		-	may be applied to airport safety improvements, to the extent that the 25
126		-	Department determines that the lack of airport safety improvements is 26
127		-	inhibiting economic growth. 27
128		-	(f) Cost-Sharing. – The total allocation of funds from the Airports Fund shall not exceed 28
129		-	fifty percent (50%) of the cost for airport improvements. 29
130		-	(g) Criteria. – The Division shall establish procedures and criteria and adopt rules for 30
131		-	allocating funds from the Airports Fund in accordance with the purpose of this section and the 31
132		-	following criteria: 32
133		-	(1) The airport project is projected to increase jobs, wages, capital investment, 33
134		-	and tourism to North Carolina, with a particular emphasis on educational 34
135		-	tourism, as independently determined by the Department. 35
136		-	(2) Allocations shall be competitive and, after consultation with the Department 36
137		-	of Commerce, awarded to proposals with the greatest projected economic 37
138		-	impact benefitting North Carolina. 38
139		-	(h) Administrative Costs. – The Department may use no more than three percent (3%) of 39
140		-	the Airports Fund for administrative costs. 40
141		-	(i) Report. – No later than March 1, 2026, the Division shall submit an initial report on 41
142		-	the implementation of this section to the Joint Legislative Commission on Governmental 42
143		-	Operations, the Joint Legislative Transportation Oversight Committee, and the Fiscal Research 43
144		-	Division and thereafter shall submit an annual report no later than December 1 of each year. The 44
145		-	report shall include the following information: use of funds, projects approved, and estimated 45
146		-	economic impact." 46
147		-	SECTION 3.2. There is appropriated from the General Fund to the Special Economic 47
148		-	Development Fund for Airports the sum of one hundred million dollars ($100,000,000) in 48
149		-	nonrecurring funds. 49
150		-	50
151		-	FUNDING FOR PORT OF MOREHEAD CITY ROLL -ON-ROLL-OFF FACILITY 51 General Assembly Of North Carolina Session 2025
152		-	Page 4 House Bill 752-First Edition
	136	+	(1) The airport project is projected to increase jobs, wages, capital investment, 32
	137	+	and tourism to North Carolina, with a particular emphasis on educational 33
	138	+	tourism, as independently determined by the Department. 34
	139	+	(2) Allocations shall be competitive and, after consultation with the Department 35
	140	+	of Commerce, awarded to proposals with the greatest projected economic 36
	141	+	impact benefitting North Carolina. 37
	142	+	(h) Administrative Costs. – The Department may use no more than three percent (3%) of 38
	143	+	the Airports Fund for administrative costs. 39
	144	+	(i) Report. – No later than March 1, 2026, the Division shall submit an initial report on 40
	145	+	the implementation of this section to the Joint Legislative Commission on Governmental 41
	146	+	Operations, the Joint Legislative Transportation Oversight Committee, and the Fiscal Research 42
	147	+	Division and thereafter shall submit an annual report no later than December 1 of each year. The 43
	148	+	report shall include the following information: use of funds, projects approved, and estimated 44
	149	+	economic impact." 45
	150	+	SECTION 3.2. There is appropriated from the General Fund to the Special Economic 46
	151	+	Development Fund for Airports the sum of one hundred million dollars ($100,000,000) in 47
	152	+	nonrecurring funds. 48
	153	+	49
	154	+	FUNDING FOR PORT OF MOREHEAD CITY ROLL -ON-ROLL-OFF FACILITY 50 General Assembly Of North Carolina Session 2025
	155	+	Page 4 DRH10314-MWa-7
153	156		SECTION 4. There is appropriated from the General Fund to the Department of 1
154	157		Transportation the sum of thirty million dollars ($30,000,000) for the 2025-2026 fiscal year to 2
155	158		be allocated to the North Carolina Ports Authority for the Authority to use for the construction 3
156	159		of a roll-on-roll-off facility for the Port of Morehead City. 4
157	160		5
158	161		EFFECTIVE DATE 6
159	162		SECTION 5. This act becomes effective July 1, 2025. 7