North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S428 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 428
	3	+	S D
	4	+	SENATE BILL DRS45236-MH-66A
	5	+
5	6
6	7
7	8		Short Title: IBT Reforms. (Public)
8	9		Sponsors: Senators Daniel, Moffitt, and Hollo (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 25, 2025~~
11		-	~~S428 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS45236 -MH-66A
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT TO REVISE THE LAWS GOVERNING TRANSFERS OF SURFACE WATER 2
14	15		BETWEEN RIVER BASINS. 3
15	16		The General Assembly of North Carolina enacts: 4
16	17		SECTION 1.(a) Subdivisions (1a) and (1b) of G.S. 143-215.22G are recodified as 5
17	18		subdivisions (1b) and (1c), respectively, of that section. 6
18	19		SECTION 1.(b) G.S. 143-215.22G, as recodified by subsection (a) of this section, 7
19	20		reads as rewritten: 8
20	21		"§ 143-215.22G. Definitions. 9
21	22		In addition to the definitions set forth in G.S. 143-212 and G.S. 143-213, the following 10
22	23		definitions apply to this Part. 11
23	24		(1) "Mainstem" means that Mainstem. – That portion of a river having the same 12
24	25		name as a river basin defined in subdivision (1b) (1c) of this section. 13
25	26		"Mainstem" does not include named or unnamed tributaries. 14
26	27		(1a) Major transfer. – A new transfer between river basins greater than 30,000,000 15
27	28		gallons per day, or a modification to an existing transfer that would increase 16
28	29		the existing transfer more than 30,000,000 gallons per day. 17
29	30		(1b) "Public water system" means any Public water system. – Any unit of local 18
30	31		government or large community water system subject to the requirements of 19
31	32		G.S. 143-355(l). 20
32	33		(1c) "River basin" means any River basin. – Any of the following river basins 21
33	34		designated on the map entitled "Major River Basins and Sub-basins in North 22
34	35		Carolina" and filed in the Office of the Secretary of State on 16 April 1991. 23
35	36		The term "river basin" includes any portion of the river basin that extends into 24
36	37		another state. Any area outside North Carolina that is not included in one of 25
37	38		the river basins listed in this subdivision comprises a separate river basin. 26
38	39		… 27
39	40		(2) "Surface water" means any Surface water. – Any of the waters of the State 28
40	41		located on the land surface that are not derived by pumping from groundwater. 29
41	42		(3) "Transfer" means the Transfer. – The withdrawal, diversion, or pumping of 30
42	43		surface water from one river basin and discharge of all or any part of the water 31
43	44		in a river basin different from the origin. However, notwithstanding the basin 32
44	45		definitions in G.S. 143-215.22G(1b), the following are not transfers under this 33
45	46		Part: 34
46		-	a. The discharge of water upstream from the point where it is withdrawn. 35 General Assembly Of North Carolina Session 2025
47		-	Page 2 Senate Bill 428-First Edition
	47	+	a. The discharge of water upstream from the point where it is withdrawn. 35
	48	+	FILED SENATE
	49	+	Mar 24, 2025
	50	+	S.B. 428
	51	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRS45236-MH-66A
48	53		b. The discharge of water downstream from the point where it is 1
49	54		withdrawn." 2
50	55		SECTION 2. G.S. 143-215.22L reads as rewritten: 3
51	56		"§ 143-215.22L. Regulation of surface water transfers. 4
52	57		(a) Certificate Required. – No person, without first obtaining a certificate from the 5
53	58		Commission, may: 6
54	59		(1) Initiate a transfer of 2,000,000 gallons of water or more per day, calculated as 7
55	60		a daily average of a calendar month and not to exceed 3,000,000 gallons per 8
56	61		day in any one day, from one river basin to another. 9
57	62		(2) Increase the amount of an existing transfer of water from one river basin to 10
58	63		another by twenty-five percent (25%) or more above the average daily amount 11
59	64		transferred during the year ending 1 July 1993 if the total transfer including 12
60	65		the increase is 2,000,000 gallons or more per day. 13
61	66		(3) Increase an existing transfer of water from one river basin to another above 14
62	67		the amount approved by the Commission in a certificate issued under 15
63	68		G.S. 162A-7 prior to 1 July 1993. 16
64	69		(b) Exception. – Notwithstanding the provisions of subsection (a) of this section, a 17
65	70		certificate shall not be required to transfer water from one river basin to another up to the full 18
66	71		capacity of a facility to transfer water from one basin to another if the facility was in existence 19
67	72		or under construction on 1 July 1993. 20
68	73		(c) Notice of Intent to File a Petition. – An applicant shall prepare a notice of intent to 21
69	74		file a petition that includes a nontechnical description of the applicant's request and request, an 22
70	75		identification of the proposed water source. source, and a preliminary description of alternatives 23
71	76		to the transfer considered by the applicant that includes an estimate of the costs of those 24
72	77		alternatives. 25
73	78		(c1) Hearing and Public Notice on Notice of Intent and Scope. – Within 90 days after the 26
74	79		applicant files a notice of intent to file a petition, the applicant Commission shall hold at least 27
75	80		two public hearings at the applicant's expense at which the applicant shall provide information 28
76	81		to interested parties and the public regarding the nature and size of the proposed transfer, and the 29
77	82		Commission shall receive public comment on the scope of the environmental documents. The 30
78	83		Commission shall also hold at least one public meeting of these public meetings in the source 31
79	84		river basin upstream from the proposed point of withdrawal, withdrawal and at least one public 32
80	85		meeting in the source river basin downstream from the proposed point of withdrawal, and at least 33
81	86		one public meeting in the receiving river basin to provide information to interested parties and 34
82	87		the public regarding the nature and extent of the proposed transfer and to receive comment on 35
83	88		the scope of the environmental documents. withdrawal. In scheduling the meetings, the 36
84	89		Commission shall consult with the board of commissioners of each county in the source river 37
85	90		basin to identify a venue of sufficient size to accommodate anticipated attendance. Written notice 38
86	91		of the public meetings shall be provided at least 30 days before the public meetings. At the time 39
87	92		the applicant Commission gives notice of the public meetings, the applicant Commission shall 40
88	93		request comment on the alternatives and issues that should be addressed in the environmental 41
89	94		documents required by this section. The applicant Commission shall accept written comment on 42
90	95		the scope of the environmental documents for a minimum of 30 days following the last public 43
91	96		meeting. The applicant may hold other public meetings in addition to those required by this 44
92	97		subsection. Notice of the public meetings and opportunity to comment on the scope of the 45
93	98		environmental documents shall be provided as follows: 46
94	99		(1) By publishing notice in the North Carolina Register. 47
95	100		(2) By publishing notice in a newspaper of general circulation in: 48
96	101		a. Each county in this State located in whole or in part of the area of the 49
97	102		source river basin upstream from the proposed point of withdrawal. 50 General Assembly Of North Carolina Session 2025
98		-	~~Senate Bill 428-First Edition~~ Page 3
	103	+	DRS45236-MH-66A Page 3
99	104		b. Each city or county located in a state located in whole or in part of the 1
100	105		surface drainage basin area of the source river basin that also falls 2
101	106		within, in whole or in part, the area denoted by one of the following 3
102	107		eight-digit cataloging units as organized by the United States 4
103	108		Geological Survey: 5
104	109		03050105 (Broad River: NC and SC); 6
105	110		03050106 (Broad River: SC); 7
106	111		03050107 (Broad River: SC); 8
107	112		03050108 (Broad River: SC); 9
108	113		05050001 (New River: NC and VA); 10
109	114		05050002 (New River: VA and WV); 11
110	115		03050101 (Catawba River: NC and SC); 12
111	116		03050103 (Catawba River: NC and SC); 13
112	117		03050104 (Catawba River: SC); 14
113	118		03010203 (Chowan River: NC and VA); 15
114	119		03010204 (Chowan River: NC and VA); 16
115	120		06010105 (French Broad River: NC and TN); 17
116	121		06010106 (French Broad River: NC and TN); 18
117	122		06010107 (French Broad River: TN); 19
118	123		06010108 (French Broad River: NC and TN); 20
119	124		06020001 (Hiwassee River: AL, GA, TN); 21
120	125		06020002 (Hiwassee River: GA, NC, TN); 22
121	126		06010201 (Little Tennessee River: TN); 23
122	127		06010202 (Little Tennessee River: TN, GA, and NC); 24
123	128		06010204 (Little Tennessee River: NC and TN); 25
124	129		03060101 (Savannah River: NC and SC); 26
125	130		03060102 (Savannah River: GA, NC, and SC); 27
126	131		03060103 (Savannah River: GA and SC); 28
127	132		03060104 (Savannah River: GA); 29
128	133		03060105 (Savannah River: GA); 30
129	134		03040203 (Lumber River: NC and SC); 31
130	135		03040204 (Lumber River: NC and SC); 32
131	136		03040206 (Lumber River: NC and SC); 33
132	137		03040207 (Lumber River: NC and SC); 34
133	138		03010205 (Albemarle Sound: NC and VA); 35
134	139		06020003 (Ocoee River: GA, NC, and TN); 36
135	140		03010101 (Roanoke River: VA); 37
136	141		03010102 (Roanoke River: NC and VA); 38
137	142		03010103 (Roanoke River: NC and VA); 39
138	143		03010104 (Roanoke River: NC and VA); 40
139	144		03010105 (Roanoke River: VA); 41
140	145		03010106 (Roanoke River: NC and VA); 42
141	146		06010102 (Watauga River: TN and VA); 43
142	147		06010103 (Watauga River: NC and TN); 44
143	148		03040101 (Yadkin River: VA and NC); 45
144	149		03040104 (Yadkin River: NC and SC); 46
145	150		03040105 (Yadkin River: NC and SC); 47
146	151		03040201 (Yadkin River: NC and SC); 48
147	152		03040202 (Yadkin River: NC and SC). 49
148	153		c. Each county in this State located in whole or in part of the area of the 50
149	154		source river basin downstream from the proposed point of withdrawal. 51 General Assembly Of North Carolina Session 2025
150		-	Page 4 ~~Senate Bill 428-First Edition~~
	155	+	Page 4 DRS45236-MH-66A
151	156		d. Any area in the State in a river basin for which the source river basin 1
152	157		has been identified as a future source of water in a local water supply 2
153	158		plan prepared pursuant to G.S. 143-355(l). 3
154	159		e. Each county in the State located in whole or in part of the receiving 4
155	160		river basin. 5
156	161		(3) By giving notice by first-class mail or electronic mail to each of the following: 6
157	162		a. The board of commissioners of each county in this State or the 7
158	163		governing body of any county or city that is politically independent of 8
159	164		a county in any state that is located entirely or partially within the 9
160	165		source river basin of the proposed transfer and that also falls within, in 10
161	166		whole or in part, the area denoted by one of the eight-digit cataloging 11
162	167		units listed in sub-subdivision b. of subdivision (2) of this subsection. 12
163	168		b. The board of commissioners of each county in this State or the 13
164	169		governing body of any county or city that is politically independent of 14
165	170		a county in any state that is located entirely or partially within the 15
166	171		receiving river basin of the proposed transfer and that also falls within, 16
167	172		in whole or in part, the area denoted by one of the eight-digit 17
168	173		cataloging units listed in sub-subdivision b. of subdivision (2) of this 18
169	174		subsection. 19
170	175		c. The governing body of any public water system that withdraws water 20
171	176		upstream or downstream from the withdrawal point of the proposed 21
172	177		transfer. 22
173	178		d. If any portion of the source or receiving river basins is located in 23
174	179		another state, all state water management or use agencies, 24
175	180		environmental protection agencies, and the office of the governor in 25
176	181		that state upstream or downstream from the withdrawal point of the 26
177	182		proposed transfer. 27
178	183		e. All persons who have registered a water withdrawal or transfer from 28
179	184		the proposed source river basin under this Part or under similar law in 29
180	185		an another state. 30
181	186		f. All persons who hold a certificate for a transfer of water from the 31
182	187		proposed source river basin under this Part or under similar law in an 32
183	188		another state. 33
184	189		g. All persons who hold a National Pollutant Discharge Elimination 34
185	190		System (NPDES) wastewater discharge permit for a discharge of 35
186	191		100,000 gallons per day or more upstream or downstream from the 36
187	192		proposed point of withdrawal. 37
188	193		h. To any other person who submits to the applicant a written request to 38
189	194		receive all notices relating to the petition. 39
190	195		(d) Environmental Documents. – Except as provided in this subsection, the definitions 40
191	196		set out in G.S. 113A-9 apply to this section. Notwithstanding the thresholds for significant 41
192	197		expenditure of public monies or use of public land set forth in G.S. 113A-9, the Department shall 42
193	198		conduct a study of the environmental impacts of any proposed transfer of water for which a 43
194	199		certificate is required under this section. The study shall meet all of the requirements set forth in 44
195	200		G.S. 113A-4 and rules adopted pursuant to G.S. 113A-4. Notwithstanding G.S. 113A-4(2), the 45
196	201		study shall include secondary and cumulative impacts. An environmental assessment shall be 46
197	202		prepared for any petition for a certificate under this section. The determination of whether an 47
198	203		environmental impact statement shall also be required shall be made in accordance with the 48
199	204		provisions of Article 1 of Chapter 113A of the General Statutes; except that an environmental 49
200	205		impact statement shall be prepared for every proposed transfer of water from one major river 50
201	206		basin to another for which a certificate is required under this section. The applicant who petitions 51 General Assembly Of North Carolina Session 2025
202		-	~~Senate Bill 428-First Edition~~ Page 5
	207	+	DRS45236-MH-66A Page 5
203	208		the Commission for a certificate under this section shall pay the cost of special studies necessary 1
204	209		to comply with Article 1 of Chapter 113A of the General Statutes. An environmental impact 2
205	210		statement prepared pursuant to this subsection shall include all of the following: 3
206	211		(1) A comprehensive analysis of the impacts that would occur in the source river 4
207	212		basin and the receiving river basin if the petition for a certificate is granted. 5
208	213		(2) An evaluation of alternatives to the proposed interbasin transfer, including 6
209	214		water supply sources that do not require an interbasin transfer and use of water 7
210	215		conservation measures. 8
211	216		(3) A description of measures to mitigate any adverse impacts that may arise from 9
212	217		the proposed interbasin transfer. 10
213	218		(4) With respect to petitions for certificates for a major transfer, a demonstration 11
214	219		that the petitioner, if the petitioner owns or operates a drinking water system, 12
215	220		has a water loss ratio of less than fifteen percent (15%). The Commission shall 13
216	221		specify by rule the form and manner for calculating and presenting the water 14
217	222		loss ratio. 15
218	223		(e) Public Hearing on the Draft Environmental Document. – The Commission shall hold 16
219	224		a public hearing on the draft environmental document for a proposed interbasin transfer after 17
220	225		giving at least 30 days' written notice of the hearing in the Environmental Bulletin and as 18
221	226		provided in subdivisions (2) and (3) of subsection (c) of this section. The notice shall indicate 19
222	227		where a copy of the environmental document can be reviewed and the procedure to be followed 20
223	228		by anyone wishing to submit written comments and questions on the environmental document. 21
224	229		The Commission shall prepare a record of all comments and written responses to questions posed 22
225	230		in writing. The record shall include complete copies of scientific or technical comments related 23
226	231		to the potential impact of the interbasin transfer. The Commission shall accept written comment 24
227	232		on the draft environmental document for a minimum of 30 days following the last public hearing. 25
228	233		The applicant who petitions the Commission for a certificate under this section shall pay the costs 26
229	234		associated with the notice and public hearing on the draft environmental document. 27
230	235		(f) Determination of Adequacy of Environmental Document. – The Commission shall 28
231	236		not act on any petition for an interbasin transfer until the Commission has determined that the 29
232	237		environmental document is complete and adequate. A decision on the adequacy of the 30
233	238		environmental document is subject to review in a contested case on the decision of the 31
234	239		Commission to issue or deny a certificate under this section. 32
235	240		(g) Petition. – An applicant for a certificate shall petition the Commission for the 33
236	241		certificate. The petition shall be in writing and shall include all of the following: 34
237	242		(1) A general description of the facilities to be used to transfer the water, including 35
238	243		current and projected areas to be served by the transfer, current and projected 36
239	244		capacities of intakes, and other relevant facilities. 37
240	245		(2) A description of all the proposed consumptive and nonconsumptive uses of 38
241	246		the water to be transferred. 39
242	247		(3) A description of the water quality of the source river and receiving river, 40
243	248		including information on aquatic habitat for rare, threatened, and endangered 41
244	249		species; in-stream flow data for segments of the source and receiving rivers 42
245	250		that may be affected by the transfer; and any waters that are impaired pursuant 43
246	251		to section 303(d) of the federal Clean Water Act (33 U.S.C. § 1313(d)). 44
247	252		(4) A description of the water conservation measures used by the applicant at the 45
248	253		time of the petition and any additional water conservation measures that the 46
249	254		applicant applicant: (i) could implement to eliminate or reduce the need for 47
250	255		the requested transfer and (ii) will implement if the certificate is granted. 48
251	256		(5) A description of all sources of water within the receiving river basin, including 49
252	257		surface water impoundments, groundwater wells, reinjection storage, and 50
253	258		purchase of water from another source within the river basin, that is a 51 General Assembly Of North Carolina Session 2025
254		-	Page 6 ~~Senate Bill 428-First Edition~~
	259	+	Page 6 DRS45236-MH-66A
255	260		practicable alternative to the proposed transfer that would meet the applicant's 1
256	261		water supply needs. The description of water sources shall include sources 2
257	262		available at the time of the petition for a certificate and any planned or 3
258	263		potential additional water sources. An applicant shall also provide analyses 4
259	264		of: (i) water treatment infrastructure that could be constructed or otherwise 5
260	265		employed to render sources of water within the receiving river basin at the 6
261	266		time of the petition sufficient for the applicant's water supply needs, thereby 7
262	267		eliminating or reducing the need for the requested transfer and (ii) potential 8
263	268		water sources that could be developed that would eliminate or reduce the need 9
264	269		for the requested transfer, including the establishment or expansion of water 10
265	270		supply reservoirs or other water supply resources in the receiving river basin. 11
266	271		(6) A description of water transfers and withdrawals registered under 12
267	272		G.S. 143-215.22H or included in a local water supply plan prepared pursuant 13
268	273		to G.S. 143-355(l) from the source river basin, including transfers and 14
269	274		withdrawals at the time of the petition for a certificate and any planned or 15
270	275		reasonably foreseeable transfers or withdrawals by a public water system with 16
271	276		service area located within the source river basin. 17
272	277		(7) A demonstration that the proposed transfer, if added to all other transfers and 18
273	278		withdrawals required to be registered under G.S. 143-215.22H or included in 19
274	279		any local water supply plan prepared by a public water system with service 20
275	280		area located within the source basin pursuant to G.S. 143-355(l) from the 21
276	281		source river basin at the time of the petition for a certificate, would not reduce 22
277	282		the amount of water available for use in the source river basin to a degree that 23
278	283		would impair existing uses, pursuant to the antidegradation policy set out in 24
279	284		40 Code of Federal Regulation § 131.12 (Antidegradation Policy) (1 July 2006 25
280	285		Edition) and the statewide antidegradation policy adopted pursuant thereto, or 26
281	286		existing and planned consumptive and nonconsumptive uses of the water in 27
282	287		the source river basin. If the proposed transfer would impact a reservoir within 28
283	288		the source river basin, the demonstration must include a finding that the 29
284	289		transfer would not result in a water level in the reservoir that is inadequate to 30
285	290		support existing uses of the reservoir, including recreational uses. 31
286	291		(8) The applicant's future water supply needs and the present and reasonably 32
287	292		foreseeable future water supply needs for public water systems with service 33
288	293		area located within the source river basin. The analysis of future water supply 34
289	294		needs shall include agricultural, recreational, and industrial uses, and electric 35
290	295		power generation. Local water supply plans prepared pursuant to 36
291	296		G.S. 143-355(l) for water systems with service area located within the source 37
292	297		river basin shall be used to evaluate the projected future water needs in the 38
293	298		source river basin that will be met by public water systems. 39
294	299		(9) The applicant's water supply plan prepared pursuant to G.S. 143-355(l). If the 40
295	300		applicant's water supply plan is more than two years old at the time of the 41
296	301		petition, then the applicant shall include with the petition an updated water 42
297	302		supply plan. 43
298	303		(10) Any other information deemed necessary by the Commission for review of 44
299	304		the proposed water transfer. 45
300	305		(h) Settlement Discussions. – Upon the request of the applicant, any interested party, or 46
301	306		the Department, or upon its own motion, the Commission may appoint a mediation officer. The 47
302	307		mediation officer may be a member of the Commission, an employee of the Department, or a 48
303	308		neutral third party but shall not be a hearing officer under subsections (e) or (j) of this section. 49
304	309		The mediation officer shall make a reasonable effort to initiate settlement discussions between 50
305	310		the applicant and all other interested parties. Evidence of statements made and conduct that 51 General Assembly Of North Carolina Session 2025
306		-	~~Senate Bill 428-First Edition~~ Page 7
	311	+	DRS45236-MH-66A Page 7
307	312		occurs in a settlement discussion conducted under this subsection, whether attributable to a party, 1
308	313		a mediation officer, or other person shall not be subject to discovery and shall be inadmissible in 2
309	314		any subsequent proceeding on the petition for a certificate. The Commission may adopt rules to 3
310	315		govern the conduct of the mediation process. 4
311	316		(i) Draft Determination. – Within 90 days after the Commission determines that the 5
312	317		environmental document prepared in accordance with subsection (d) of this section is adequate 6
313	318		or the applicant submits its petition for a certificate, whichever occurs later, the Commission 7
314	319		shall issue a draft determination on whether to grant the certificate. The draft determination shall 8
315	320		be based on the criteria set out in this section and shall include the conditions and limitations, 9
316	321		findings of fact, and conclusions of law that would be required in a final determination. Notice 10
317	322		of the draft determination shall be given as provided in subsection (c) of this section. 11
318	323		(j) Public Hearing on the Draft Determination. – Within 60 days of the issuance of the 12
319	324		draft determination as provided in subsection (i) of this section, the Commission shall hold public 13
320	325		hearings on the draft determination. At least one hearing shall be held in the affected area of the 14
321	326		source river basin, and at least one hearing shall be held in the affected area of the receiving river 15
322	327		basin. In determining whether more than one public hearing should be held within either the 16
323	328		source or receiving river basins, the Commission shall consider the differing or conflicting 17
324	329		interests that may exist within the river basins, including the interests of both upstream and 18
325	330		downstream parties potentially affected by the proposed transfer. The public hearings shall be 19
326	331		conducted by one or more hearing officers appointed by the Chair of the Commission. The 20
327	332		hearing officers may be members of the Commission or employees of the Department. The 21
328	333		Commission shall give at least 30 days' written notice of the public hearing as provided in 22
329	334		subsection (c) of this section. The Commission shall accept written comment on the draft 23
330	335		determination for a minimum of 30 days following the last public hearing. The Commission shall 24
331	336		prepare a record of all comments and written responses to questions posed in writing. The record 25
332	337		shall include complete copies of scientific or technical comments related to the potential impact 26
333	338		of the interbasin transfer. The applicant who petitions the Commission for a certificate under this 27
334	339		section shall pay the costs associated with the notice and public hearing on the draft 28
335	340		determination. 29
336	341		(k) Final Determination: Factors to be Considered. – In determining whether a certificate 30
337	342		may be issued for the transfer, the Commission shall specifically consider each of the following 31
338	343		items and state in writing its findings of fact and conclusions of law with regard to each item: 32
339	344		(1) The necessity and reasonableness of the amount of surface water proposed to 33
340	345		be transferred and its proposed uses. 34
341	346		(2) The present and reasonably foreseeable future detrimental effects on the 35
342	347		source river basin, including present and future effects on public, industrial, 36
343	348		economic, recreational, and agricultural water supply needs, wastewater 37
344	349		assimilation, water quality, fish and wildlife habitat, electric power 38
345	350		generation, navigation, and recreation. Local water supply plans for public 39
346	351		water systems with service area located within the source river basin prepared 40
347	352		pursuant to G.S. 143-355(l) shall be used to evaluate the projected future 41
348	353		water needs in the source river basin that will be met by public water systems. 42
349	354		Information on projected future water needs for public water systems with 43
350	355		service area located within the source river basin that is more recent than the 44
351	356		local water supply plans may be used if the Commission finds the information 45
352	357		to be reliable. The determination shall include a specific finding as to 46
353	358		measures that are necessary or advisable to mitigate or avoid detrimental 47
354	359		impacts on the source river basin. 48
355	360		(3) The cumulative effect on the source major river basin of any water transfer or 49
356	361		consumptive water use that, at the time the Commission considers the petition 50
357	362		for a certificate is occurring, is authorized under this section, or is projected 51 General Assembly Of North Carolina Session 2025
358		-	Page 8 ~~Senate Bill 428-First Edition~~
	363	+	Page 8 DRS45236-MH-66A
359	364		in any local water supply plan for public water systems with service area 1
360	365		located within the source river basin that has been submitted to the 2
361	366		Department in accordance with G.S. 143-355(l). 3
362	367		(4) The present and reasonably foreseeable future beneficial and detrimental 4
363	368		effects on the receiving and source river basin, basins, including present and 5
364	369		future effects on public, industrial, economic, recreational, and agricultural 6
365	370		water supply needs, wastewater assimilation, water quality, fish and wildlife 7
366	371		habitat, electric power generation, navigation, and recreation. Local water 8
367	372		supply plans prepared pursuant to G.S. 143-355(l) that affect the receiving 9
368	373		river basin shall be used to evaluate the projected future water needs in the 10
369	374		receiving river basin that will be met by public water systems. Information on 11
370	375		projected future water needs that is more recent than the local water supply 12
371	376		plans may be used if the Commission finds the information to be reliable. The 13
372	377		determination shall include a specific finding as to measures that are necessary 14
373	378		or advisable to mitigate or avoid detrimental impacts on the receiving river 15
374	379		basin.basin, and whether drought mitigation and resiliency infrastructure 16
375	380		improvements in the source basin are necessary to avoid detrimental impacts 17
376	381		to affected communities in the source basin during droughts and other 18
377	382		low-flow conditions. If the Commission finds that drought mitigation and 19
378	383		resiliency infrastructure improvements are necessary, the Commission is 20
379	384		authorized to make the funding of such improvements a condition of the 21
380	385		certificate issued under this section. 22
381	386		(5) The availability of reasonable alternatives to the proposed transfer, including 23
382	387		the potential capacity of alternative sources of water, the potential of each 24
383	388		alternative to reduce the amount of or avoid the proposed transfer, probable 25
384	389		costs, and environmental impacts. In considering alternatives, the 26
385	390		Commission is not limited to consideration of alternatives that have been 27
386	391		proposed, studied, or considered by the applicant. The determination shall 28
387	392		include a all of the following: 29
388	393		a. A specific finding as to why the applicant's need for water cannot be 30
389	394		satisfied by alternatives within the receiving basin, including unused 31
390	395		capacity under a transfer for which a certificate is in effect or that is 32
391	396		otherwise authorized by law at the time the applicant submits the 33
392	397		petition. The determination shall consider the 34
393	398		b. The extent to which access to potential sources of surface water or 35
394	399		groundwater within the receiving river basin is no longer available due 36
395	400		to depletion, contamination, or the declaration of a capacity use area 37
396	401		under Part 2 of Article 21 of Chapter 143 of the General Statutes. The 38
397	402		determination shall consider the 39
398	403		c. The feasibility of the applicant's purchase of water from other water 40
399	404		suppliers within the receiving basin and of the transfer of water from 41
400	405		another sub-basin within the receiving major river basin. Except in 42
401	406		circumstances of technical or economic infeasibility or adverse 43
402	407		environmental impact, the Commission's determination as to 44
403	408		reasonable alternatives shall give preference to alternatives that would 45
404	409		involve a transfer from one sub-basin to another within the major 46
405	410		receiving river basin over alternatives that would involve a transfer 47
406	411		from one major river basin to another major river basin. 48
407	412		(5a) With respect to major transfers, the extent to which the applicant has 49
408	413		demonstrated the capacity to maintain the water loss ratio in its water system 50
409	414		at a level below fifteen percent (15%) for the duration of the certificate. The 51 General Assembly Of North Carolina Session 2025
410		-	~~Senate Bill 428-First Edition~~ Page 9
	415	+	DRS45236-MH-66A Page 9
411	416		Commission must also specifically find that the applicant has submitted 1
412	417		sufficient evidence that, at the time of the petition, the applicant's water loss 2
413	418		ratio, as determined under subdivision (d)(4) of this section, is less than fifteen 3
414	419		percent (15%). 4
415	420		(6) If applicable to the proposed project, the applicant's present and proposed use 5
416	421		of impoundment storage capacity to store water during high-flow periods for 6
417	422		use during low-flow periods and the applicant's right of withdrawal under 7
418	423		G.S. 143-215.44 through G.S. 143-215.50. 8
419	424		(7) If the water to be withdrawn or transferred is stored in a multipurpose reservoir 9
420	425		constructed by the United States Army Corps of Engineers, the purposes and 10
421	426		water storage allocations established for the reservoir at the time the reservoir 11
422	427		was authorized by the Congress of the United States. 12
423	428		(8) Whether the service area of the applicant is located in both the source river 13
424	429		basin and the receiving river basin. 14
425	430		(9) Any other facts and circumstances that are reasonably necessary to carry out 15
426	431		the purposes of this Part. 16
427	432		(l) Final Determination: Information to be Considered. – In determining whether a 17
428	433		certificate may be issued for the transfer, the Commission shall consider all of the following 18
429	434		sources of information: 19
430	435		(1) The petition. 20
431	436		(2) The environmental document prepared pursuant to subsection (d) of this 21
432	437		section. 22
433	438		(3) All oral and written comment and all accompanying materials or evidence 23
434	439		submitted pursuant to subsections (e) and (j) of this section. 24
435	440		(4) Information developed by or available to the Department on the water quality 25
436	441		of the source river basin and the receiving river basin, including waters that 26
437	442		are identified as impaired pursuant to section 303(d) of the federal Clean 27
438	443		Water Act (33 U.S.C. § 1313(d)), that are subject to a total maximum daily 28
439	444		load (TMDL) limit under subsections (d) and (e) of section 303 of the federal 29
440	445		Clean Water Act, or that would have their assimilative capacity impaired if 30
441	446		the certificate is issued. 31
442	447		(5) Any other information that the Commission determines to be relevant and 32
443	448		useful. 33
444	449		(m) Final Determination: Burden and Standard of Proof; Specific Findings. – The 34
445	450		Commission shall grant a certificate for a water transfer if the Commission finds that the 35
446	451		applicant has established by a preponderance of the evidence all of the following: 36
447	452		(1) The benefits of the proposed transfer outweigh the detriments of the proposed 37
448	453		transfer. In making this determination, the Commission shall be guided by the 38
449	454		approved environmental document and the policy set out in subsection (t) of 39
450	455		this section. 40
451	456		(2) The detriments have been or will be mitigated to the maximum degree 41
452	457		practicable. 42
453	458		(3) The amount of the transfer does not exceed the amount of the projected 43
454	459		shortfall under the applicant's water supply plan after first taking into account 44
455	460		all other sources of water that are available to the applicant. 45
456	461		(3a) Denying the certificate will result in the applicant incurring infrastructure 46
457	462		costs that would result in a significant increase in utility rates and cause a 47
458	463		financial hardship for the applicant. For purposes of this subdivision, an 48
459	464		increase in utility rates is significant if it results in the applicant's utility rates 49
460	465		falling within the highest twenty-five percent (25%) among all utilities in the 50
461	466		State. 51 General Assembly Of North Carolina Session 2025
462		-	Page 10 ~~Senate Bill 428-First Edition~~
	467	+	Page 10 DRS45236-MH-66A
463	468		(4) There are no reasonable alternatives to the proposed transfer. 1
464	469		(n) Final Determination: Certificate Conditions and Limitations. – The Commission may 2
465	470		grant the certificate in whole or in part, or deny the certificate. The Commission may impose any 3
466	471		conditions or limitations on a certificate that the Commission finds necessary to achieve the 4
467	472		purposes of this Part including a limit on the period for which the certificate is valid. The 5
468	473		conditions and limitations shall include any mitigation measures proposed by the applicant to 6
469	474		minimize any detrimental effects within the source and receiving river basins. In addition, the 7
470	475		certificate shall require all of the following conditions and limitations: 8
471	476		(1) A water conservation plan that specifies the water conservation measures that 9
472	477		will be implemented by the applicant in the receiving river basin to ensure the 10
473	478		efficient use of the transferred water. Except in circumstances of technical or 11
474	479		economic infeasibility or adverse environmental impact, the water 12
475	480		conservation plan shall provide for the mandatory implementation of water 13
476	481		conservation measures by the applicant that equal or exceed the most stringent 14
477	482		water conservation plan implemented by a public water system that withdraws 15
478	483		water from the source river basin. 16
479	484		(2) A drought management plan that specifies how the transfer shall be managed 17
480	485		to protect the source river basin during drought conditions or other 18
481	486		emergencies that occur within the source river basin. Except in circumstances 19
482	487		of technical or economic infeasibility or adverse environmental impact, this 20
483	488		drought management plan shall include mandatory reductions in the permitted 21
484	489		amount of the transfer based on the severity and duration of a drought 22
485	490		occurring within the source river basin and shall provide for the mandatory 23
486	491		implementation of a drought management plan by the applicant that equals or 24
487	492		exceeds the most stringent water conservation plan implemented by a public 25
488	493		water system that withdraws water from the source river basin. 26
489	494		(3) The maximum amount of water that may be transferred, calculated as a daily 27
490	495		average of a calendar month, and methods or devices required to be installed 28
491	496		and operated that measure the amount of water that is transferred. 29
492	497		(4) A provision that the Commission may amend a certificate to reduce the 30
493	498		maximum amount of water authorized to be transferred whenever it appears 31
494	499		that an alternative source of water is available to the certificate holder from 32
495	500		within the receiving river basin, including, but not limited to, the purchase of 33
496	501		water from another water supplier within the receiving basin or to the transfer 34
497	502		of water from another sub-basin within the receiving major river basin. 35
498	503		(5) A provision that the Commission shall amend the certificate to reduce the 36
499	504		maximum amount of water authorized to be transferred if the Commission 37
500	505		finds that the applicant's current projected water needs are significantly less 38
501	506		than the applicant's projected water needs at the time the certificate was 39
502	507		granted. 40
503	508		(6) A requirement that the certificate holder report the quantity of water 41
504	509		transferred during each calendar quarter. The report required by this 42
505	510		subdivision shall be submitted to the Commission no later than 30 days after 43
506	511		the end of the quarter. 44
507	512		(7) Except as provided in this subdivision, a provision that the applicant will not 45
508	513		resell the water that would be transferred pursuant to the certificate to another 46
509	514		public water system. This limitation shall not apply in the case of a proposed 47
510	515		resale or transfer among public water systems within the receiving river basin 48
511	516		as part of an interlocal agreement or other regional water supply arrangement, 49
512	517		provided that each participant in the interlocal agreement or regional water 50
513	518		supply arrangement is a co-applicant for the certificate and will be subject to 51 General Assembly Of North Carolina Session 2025
514		-	~~Senate Bill 428-First Edition~~ Page 11
	519	+	DRS45236-MH-66A Page 11
515	520		all the terms, conditions, and limitations made applicable to any lead or 1
516	521		primary applicant. 2
517	522		(8) With respect to a new or modified transfer that is a major transfer, provisions 3
518	523		requiring that (i) the term of the certificate is 20 years and may not be renewed 4
519	524		or extended and (ii) that the petitioner reserve no less than ten percent (10%) 5
520	525		of gross revenues from its water and wastewater operations for the duration of 6
521	526		the certificate to a fund that shall be used only for the planning, permitting, 7
522	527		and construction of water treatment facilities or other water or wastewater 8
523	528		infrastructure in the source basin that will reduce the total transfer below 9
524	529		15,000,000 gallons per day. 10
525	530		(o) Administrative and Judicial Review. – Administrative and judicial review of a final 11
526	531		decision on a petition for a certificate under this section shall be governed by Chapter 150B of 12
527	532		the General Statutes. 13
528	533		… 14
529	534		(r) Relationship to Federal Law. – The substantive restrictions, conditions, and 15
530	535		limitations upon surface water transfers authorized in this section may be imposed pursuant to 16
531	536		any federal law that permits the State to certify, restrict, or condition any new or continuing 17
532	537		transfers or related activities licensed, relicensed, or otherwise authorized by the federal 18
533	538		government. This section shall govern the transfer of water from one river basin to another unless 19
534	539		preempted by federal law. 20
535	540		(s) Planning Requirements. – When any transfer for which a certificate was issued under 21
536	541		this section equals or exceeds eighty percent (80%) of the maximum amount authorized in the 22
537	542		certificate, the applicant shall submit to the Department a detailed plan that specifies how the 23
538	543		applicant intends to address future foreseeable water needs. If the applicant is required to have a 24
539	544		local water supply plan, then this plan shall be an amendment to the local water supply plan 25
540	545		required by G.S.143-355(l). When the transfer equals or exceeds ninety percent (90%) of the 26
541	546		maximum amount authorized in the certificate, the applicant shall begin implementation of the 27
542	547		plan submitted to the Department. 28
543	548		(t) Statement of Policy. – It is the public policy of the State to maintain, protect, and 29
544	549		enhance water quality within North Carolina. It is the public policy of this State that the 30
545	550		reasonably foreseeable future water needs of a public water system with its service area located 31
546	551		primarily in the receiving river basin are subordinate to the reasonably foreseeable future water 32
547	552		needs of a public water system with its service area located primarily in the source river basin. 33
548	553		Further, it is the public policy of the State that the cumulative impact of transfers from a source 34
549	554		river basin shall not result in a violation of the antidegradation policy set out in 40 Code of 35
550	555		Federal Regulations § 131.12 (1 July 2006 Edition) and the statewide antidegradation policy 36
551	556		adopted pursuant thereto. 37
552	557		(u) Repealed by Session Laws 2013-388, s. 2, effective August 23, 2013. 38
553	558		(v) Modification of Certificate. – A certificate may be modified as provided in this 39
554	559		subsection: 40
555	560		(1) The Commission or the Department may make any of the following 41
556	561		modifications to a certificate after providing electronic notice to persons who 42
557	562		have identified themselves in writing as interested parties: 43
558	563		a. Correction of typographical errors. 44
559	564		b. Clarification of existing conditions or language. 45
560	565		c. Updates, requested by the certificate holder, to a conservation plan, 46
561	566		drought management plan, or compliance and monitoring plan. 47
562	567		d. Modifications requested by the certificate holder to reflect altered 48
563	568		requirements due to the amendment of this section. 49 General Assembly Of North Carolina Session 2025
564		-	Page 12 ~~Senate Bill 428-First Edition~~
	569	+	Page 12 DRS45236-MH-66A
565	570		(2) A person who holds a certificate for an interbasin transfer of water may 1
566	571		request that the Commission modify the certificate. The request shall be 2
567	572		considered and a determination made according to the following procedures: 3
568	573		a. The certificate must have been issued pursuant to G.S. 162A-7, 4
569	574		143-215.22I, or 143-215.22L and the certificate holder must be in 5
570	575		substantial compliance with the certificate. 6
571	576		b. The certificate holder shall file a notice of intent to file a request for 7
572	577		modification that includes a nontechnical description of the certificate 8
573	578		holder's request and identification of the proposed water source. 9
574	579		c. The certificate holder shall prepare an environmental document 10
575	580		pursuant to subsection (d) of this section, except that an environmental 11
576	581		impact statement shall not be required for the modification of a 12
577	582		certificate for a transfer that is not a major transfer unless it would 13
578	583		otherwise be required by Article 1 of Chapter 113A of the General 14
579	584		Statutes. 15
580	585		d. Upon determining that the documentation submitted by the certificate 16
581	586		holder is adequate to satisfy the requirements of this subsection, the 17
582	587		Department shall publish a notice of the request for modification in the 18
583	588		North Carolina Register and shall hold a public hearing at a location 19
584	589		convenient to both the source and receiving river basins. The 20
585	590		Department shall provide written notice of the request for the 21
586	591		modification and the public hearing in the Environmental Bulletin, a 22
587	592		newspaper of general circulation in the source river basin, a newspaper 23
588	593		of general circulation in the receiving river basin, and as provided in 24
589	594		subdivision (3) of subsection (c) of this section. The certificate holder 25
590	595		who petitions the Commission for a modification under this 26
591	596		subdivision shall pay the costs associated with the notice and public 27
592	597		hearing. 28
593	598		e. The Department shall accept comments on the requested modification 29
594	599		for a minimum of 30 days following the public hearing. 30
595	600		f. The Commission or the Department may require the certificate holder 31
596	601		to provide any additional information or documentation it deems 32
597	602		reasonably necessary in order to make a final determination. 33
598	603		g. The Commission shall make a final determination whether to grant the 34
599	604		requested modification based on the factors set out in subsection (k) 35
600	605		of this section, information provided by the certificate holder, and any 36
601	606		other information the Commission deems relevant. The Commission 37
602	607		shall state in writing its findings of fact and conclusions of law with 38
603	608		regard to each factor. 39
604	609		h. The Commission shall grant the requested modification if it finds that 40
605	610		the certificate holder has established by a preponderance of the 41
606	611		evidence that the requested modification satisfies the requirements of 42
607	612		subsection (m) of this section. The Commission may grant the 43
608	613		requested modification in whole or in part, or deny the request, and 44
609	614		may impose such limitations and conditions on the modified certificate 45
610	615		as it deems necessary and relevant to the modification. 46
611	616		i. The Commission shall not grant a request for modification if the 47
612	617		modification would result in the transfer of water to an additional 48
613	618		major river basin. 49
614	619		j. The Commission shall not grant a request for modification if the 50
615	620		modification would be inconsistent with the December 3, 2010 51 General Assembly Of North Carolina Session 2025
616		-	~~Senate Bill 428-First Edition~~ Page 13
	621	+	DRS45236-MH-66A Page 13
617	622		Settlement Agreement entered into between the State of North 1
618	623		Carolina, the State of South Carolina, Duke Energy Carolinas, and the 2
619	624		Catawba River Water Supply Project. 3
620	625		…." 4
621	626		SECTION 3. This act is effective when it becomes law and applies to any petitions 5
622	627		for a certificate to transfer surface water pending on that date or submitted after that date. 6