GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S 2 SENATE BILL 472 Regulatory Reform Committee Substitute Adopted 4/9/25 Short Title: Amend 401 Certification Process. (Public) Sponsors: Referred to: March 25, 2025 *S472 -v-2* A BILL TO BE ENTITLED 1 AN ACT TO MAKE VARIOUS CHANGES TO THE PROCESS FOR 401 WATER QUALITY 2 CERTIFICATIONS ISSUED BY THE DEPARTMENT OF ENVIRONMENTAL 3 QUALITY. 4 The General Assembly of North Carolina enacts: 5 SECTION 1.(a) Definitions. – For purposes of this section and its implementation, 6 "Water Quality Certification Rules" means 15A NCAC 02H .0500 (Water Quality Certification 7 Rules). 8 SECTION 1.(b) Water Quality Certification Rules. – Until the effective date of the 9 revised permanent rule that the Environmental Management Commission is required to adopt 10 pursuant to subsection (d) of this section, the Commission shall implement the Water Quality 11 Certification Rules as provided in subsection (c) of this section. 12 SECTION 1.(c) Implementation. – Notwithstanding 15A NCAC 02H .0502(a)(10), 13 the Department shall begin review of permit applications immediately upon receipt. The 14 Department shall inform an applicant of the requisite fee within five business days after receipt 15 of the application. The 401 Water Quality Certification shall not be issued until the applicant has 16 paid the requisite fee. 17 SECTION 1.(d) Additional Rulemaking Authority. – The Commission shall adopt 18 rules to amend the Water Quality Certification Rules consistent with subsection (c) of this 19 section. Notwithstanding G.S. 150B-19(4), the rule adopted by the Commission pursuant to this 20 section shall be substantively identical to the provisions of subsection (c) of this section. Rules 21 adopted pursuant to this section are not subject to Part 3 of Article 2A of Chapter 150B of the 22 General Statutes. Rules adopted pursuant to this section shall become effective as provided in 23 G.S. 150B-21.3(b1), as though 10 or more written objections had been received as provided in 24 G.S. 150B-21.3(b2). 25 SECTION 1.(e) Sunset. – This section expires when permanent rules adopted as 26 required by subsection (d) of this section become effective. 27 SECTION 2. The Department of Environmental Quality shall request that the United 28 States Army Corps of Engineers approve a modification to the Programmatic Agreement 29 executed between the agencies to reflect the review and decision time lines for water quality 30 certifications set forth in 15A NCAC 02H .0507. 31 SECTION 3. The Department of Environmental Quality shall adopt rules to establish 32 an expedited review process for water quality certifications required for projects that have 33 received a Nationwide Permit issued by the United States Army Corps of Engineers. The 34 expedited process shall require the Department to review and approve or deny an application for 35 a water quality certification within five business days of receipt of the application and fee. Failure 36 General Assembly Of North Carolina Session 2025 Page 2 Senate Bill 472-Second Edition to take action within five business days shall result in a waiver of the certification requirement 1 by the Director. 2 SECTION 4.(a) No later than August 1, 2025, the Department of Environmental 3 Quality shall prepare and submit to the United States Environmental Protection Agency 4 (USEPA) for approval by that agency the proposed changes set forth in Section 3 of this act. 5 SECTION 4.(b) Section 3 of this act become effective on the later of the following 6 dates: 7 (1) October 1, 2025. 8 (2) The first day of a month that is 60 days after the Secretary of the Department 9 of Environmental Quality certifies to the Revisor of Statutes that USEPA has 10 approved the proposed changes set forth in Section 3 of this act, as required 11 by subsection (a) of this section. The Secretary shall provide this notice along 12 with the effective date of this act on its website. 13 SECTION 4.(c) On the date that USEPA notifies the Department of Environmental 14 Quality that it has approved the proposed changes set forth in Section 3 of this act, the Department 15 of Environmental Quality shall request that the United States Army Corps of Engineers approve 16 a modification to the Programmatic Agreement executed between the agencies to reflect the 17 review and decision time lines for water quality certifications set forth in Section 3 of this act. 18 SECTION 4.(d) The Department of Environmental Quality shall report to the Joint 19 Legislative Commission on Governmental Operations on the status of their activities pursuant to 20 subsection (c) of this section quarterly, beginning September 1, 2025, until the date this act 21 becomes law. 22 SECTION 5. Except as otherwise provided, this act is effective when it becomes 23 law. 24