Senate committee substitute to the 1st edition makes the following changes.
Amends proposed GS 143-64.18A by no longer requiring a governmental unit to consider the following when determining which qualified provider best meets the governmental unit's needs: (1) the technical feasibility of the proposal; (2) the life cycle cost analysis; (3) certification by a licensed professional engineer that the proposed measurement and verification protocol, to be used as the basis of the annual reconciliation statement, is capable of measuring actual savings in accordance with the specified methods; and (4) the total project costs, inclusive of all financing options. Makes conforming changes. Removes the requirement that the qualified provider make a pre-award report. Removes the provisions: (1) allowing a local government to waive the investment grade audit for a contract with a total cost below $250,000, (2) allowing a State governmental unit to terminate the project based on audit results; and (3) allowing local government units to terminate the project based on certain variance thresholds. Limits the requirement for a qualified reviewer to provide an evaluation of specified matters concerning the negotiated scope, saving methodology, and impact of changes on projected savings and risk profile, to the award of a State government unit's award.
Amends GS 143-64.18B by removing the proposed $1,000 administrative fee for reviewing and administering the program under a guaranteed energy savings contract.
Makes the Department of Environmental Quality, instead of the Department of Administration responsible for adopting rules to implement Section 1-3 of the act.
Removes Section 5 of the act concerning implementation of the Financing Disclosure Rule.
Removes Section 6 of the act concerning implementation of the Federal Funds Certification Rule.
Adds the following content.
Section 7
Amends GS 62-110 by providing that for a leased mobile home in a mobile home park or a tiny home, as defined, within a tiny home community where the lessor determines it is impractical or not economic to measure the lessee’s total water usage, the lessor may allocate the cost for water and sewer service to the lessee using either: (1) equipment that measures the lessee’s hot water usage, using the described process to calculate billing or (2) a ratio utility billing system or other allocation billing system that does not rely on individually submetered hot water usage to determine the allocation of costs. Specifies that the conditions of (1a) b. through e. (concerning billing for common areas or leaks, equipment for measuring usage, record keeping, and information that must be in bill) apply. Makes conforming changes.
Section 8
Amends GS 74-49, which defines terms as they are used in Article 7 (The Mining Act of 1971) of GS Chapter 74, by excluding from the definition of mining activities undertaken at any time within the mine permit boundaries for the production and harvesting of timber and timber products and conducted according to standards defined by the Forest Practice Guidelines Related to Water Quality, as adopted by the Department of Agriculture and Consumer Services.
Amends GS 74-50 by amending the timing by which requests must be made for public hearings on proposed new or modified mining operations that add land to the permitted area, so that requests must be made within 30 days of the later of the issuance of the notice or receipt of the application (was, within 30 days of issuance of the notice). Requires that if the Department of Environmental Quality (DEQ) is noticed of pending cancellation of the operator’s bond by the surety and the bond is replaced within 45 days of receiving notice, then the permit to which the bond applies is automatically revoked. Prohibits DEQ from extending or altering public comment periods and time frames for conducting public hearings under Article 7. Specifies that when there is a public hearing under GS 74-51(c) (when significant public interest exists in an application for a new mining permit or for a modification of a mining permit to add land to the permitted area), the 60-day technical review period does not end until the later of 30 days following the hearing or the original 60-day technical review period.
Amends GS 74-51 by removing the specified time limitations for deciding on mining permits, leaving the requirement that they be granted or denied as expeditiously as possible. Prohibits refusing to accept an application for, nor refusing to issue, a new, modified, or transferred mining permit only because of the applicant’s failure to obtain another permit, authorization, or certification required for the same project (specifies that such failure does not include denial based on the standards for approval of the permit, authorization, or certification provided by law). Requires DEQ to act on a permit application as quickly as possible. Allows conducting any necessary inquiry or investigation before acting on the application and allows requiring an application to submit additional information. Deems an application approved without modification if DEQ fails to act on an application for a new, modified, or transferred mining permit as required by the statute after the applicant submits all of the information required by DEQ. Requires reviewing an application for completeness within ten working days and then sets out additional deadlines for the start of the technical review period depending on completeness. Requires DEQ to develop an application package checklist. Requires an application to be approved when, during the 60-day technical review period, DEQ determines that the application meets the standards for issuance of a new, modified, or transferred mining permit. Sets out steps that must be taken when, during the 60-day technical review period, DEQ determines that additional information is needed to process the application. Allows a permit to be denied if the applicant failed to pay the application processing fee within 30 days of DEQ receiving the application. Automatically denies a permit if the operator fails to deposit the required bond or security within 60 days after DEQ mails a notice of the required bond to the operator.
Applies to permit applications filed on or after October 1, 2026.
Section 8.5
Amends GS 130A-295.2 to exempt from financial assurance requirements the owner or operator of a permitted Small or Large Type 1, 2, or 3 compost facility if: (1) the facility does not accept mixed municipal solid waste, post-collection separated or processed waste, industrial solid waste, sewage sludge, biosolids, septage, or any other feedstock that would cause the facility to be classified as a Type 4 facility, (2) the facility is in substantial compliance with its permit, the Article, and rules, and (3) the facility has not been abandoned. Allows the Department of Health and Human Services to require financial assurance for a facility if it has been abandoned, failed to meet closure requirements, caused or contributed to release of pollutants, or has a history of significant or repeated violations. Exempts from these new provisions, a Type 4 compost facility, sanitary landfill, transfer station, septage management facility, or any other solid waste management facility located on the same site as an exempt facility unless the other solid waste management facility is independently exempt. Requires DHHS, when requested by an owner or operator, to release or authorize cancellation of any financial assurance instrument required solely for closure of the compost facility.
Section 9
Amends the definition of lead poisoning hazard in GS 130A-131.7 so that the concentration of lead dust on floors is equal to or greater than five micrograms (was, 10 micrograms) and interior windowsills is equal to or greater than 40 micrograms (was, 100, micrograms); retains the specified amounts for vinyl miniblinds, bathtubs, kitchen sinks, and lavatories. Also amends the definition so that the concentration for any lead-based paint or their substance containing lead on a friction or impact surface subject to abrasion, rubbing, binding, or damage by repeated contact and where the lead dust concentrations on the nearest horizontal surface underneath the friction or impact surface are equal to or greater than five micrograms (was, 40 micrograms) per square foot on floors or 40 micrograms (was, 250 micrograms) per square foot on interior windowsills.
Amends GS 130A-131.9C by requiring that remediation plans require that the lead poisoning hazards be reduced to less than five micrograms (was, less than 10 micrograms) per square foot for lead dust on floors, less than 40 micrograms (was, less than 100 micrograms) per square foot for lead dust on interior windowsills, and less than 100 micrograms (was, less than 400 micrograms) per square foot for lead dust on window troughs.
Effective January 1, 2027.
Section 10
Requires DEQ to approve for use as a new stormwater technology any prefabricated permeable block panel system approved for use in the state. Requires that the Minimum Design Criteria follows the manufacturer's installation and service requirements as closely as possible while still complying with federal requirements. Provides that when it is used in traffic areas, a professional engineer may use the approved prefabricated permeable block panel system after showing that the system meets H-20 structural loading requirements.
Section 11
Amends GS 87-43.1 by exempting from Article 4, Electrical Contractors, of GS Chapter 87 a person temporarily attaching listed single 3-prong receptacles or power taps to existing temporary luminaries or lighting fixtures and plugging those luminaries or fixtures into exiting permanent receptacles, only when the three listed conditions apply, including that a valid electrical permit is obtained from the local authority having jurisdiction before the work.
Section 12
Requires the Building Code Council and the Residential Code Council (Council) and local governments enforcing the North Carolina State Building Code collection, and amendments to the Code, to adhere to the following as it relates to the R402 (provisions and tables within Section 402, Building Thermal Envelope, North Carolina-–Residential Provisions, of the North Carolina Energy Conversation Code) rules within the North Carolina Energy Conservation Code. Provides that when Table R402.1.2, Insulation and Fenestration Requirements by Component, requires wood frame wall R-Values, installing air-impermeable spray foam insulation as cavity insulation, which meets R13 in climate zones 3 and 4, and R-15 insulation in climate zone 5, without installation of additional continuous insulation, will be deemed to satisfy the R-value requirements for the wood frame wall in the appropriate climate zone, so long as the building envelope obtains an ACH50 blower door test result of less than or equal to 3.0. Requires the Council to adopt rules to amend the R402 Rules to be consistent with this provision.
Section 12.5
Specifies that there is no requirement that that building thermal envelope meets or exceeds the levels of efficiency and Solar Heat Gain Coefficients in tables R406.2.1 and R406.2.2, which must be deleted from the R406 Rules (as defined). Requires that the minimum standards associated with compliance must be the ANSI RESNET ICC Standard 301-2022. Requires the Building Code Council and the Residential Code Council to adopt rules to amend R406 Rules consistent with this provision.
Section 13
Amends GS 143-755 by prohibiting a development permit applicant from selecting a version of an erosion and sediment control permit or a stormwater permit that does not comply with federal law. Amends the definitions of the following terms as they are used in the statute. Amends the definition of development permit so that it includes legislative approval (in addition to the already included administrative or quasi-judicial approval) required before commencing development or undertaking a specific activity, project, or development proposal and expands upon the list of those items to include conditional zoning, rezoning, and stormwater permits. No longer requires the approval to be in writing. Amends the definition of land development regulation by expanding upon the examples of statutes, rules, or regulations, or local ordinances affecting the development or use of real property meeting the definition to also include conditional zoning, rezoning, and stormwater permits. Makes conforming changes.
Section 14
Clarifies that the authority granted by GS Chapter 160D is development regulation authority (was, regulatory authority). Lays out a time period for approval of an application for a development approval. Establishes a 7-day period within which a local government or its designated staff must determine whether an application for a development approval is complete and notify the applicant of the application's completeness or deficiencies. Establishes a second 7-day period within which a determination of completeness must be made for amended applications or supplemental information submitted to cure identified deficiencies. Requires the local government or its designated staff to issue a receipt letter or electronic response upon the date the application is deemed complete, starting a review period that must meet the specified deadlines. Permits extension of the review period up to six months only by agreement with the applicant and due to circumstances beyond the control of local government. Deems failure to act within the review period to constitute approval of the application, requiring written approval be issued upon demand by the applicant.
Enacts GS 160D-707 (concerning applications for amendment of a zoning map or zoning regulations), establishing a 7-day period within which a local government or its designated staff must determine whether an application for an amendment of a zoning map or zoning regulations is complete and notify the applicant of the application's completeness or deficiencies. Establishes a second 7-day period within which a determination of completeness must be made for amended applications or supplemental information submitted to cure identified deficiencies. Requires the local government or its designated staff to issue a receipt letter or electronic response upon the date the application is deemed complete, starting a review period that must meet the specified deadlines. Permits extension of the review period up to six months only by agreement with the applicant and due to circumstances beyond the control of local government. Deems failure to act within the review period to constitute approval of the application, requiring written approval be issued upon demand by the applicant.
Applies to applications, approvals, and actions filed on or after August 1, 2026.
Section 15
Amends GS 160D-944, adding new criteria for the designation of a historic district. Now requires that 50% of the property owners in the proposed district sign a petition requesting designation of the district. Adds a new requirement for the governing board of the local government to approve the adoption of the district by at least a three-fifths vote of a quorum.
Section 16
Amends GS 160D-102 to define dwelling unit to mean a single unit, subject to the North Carolina Residential Code, providing complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation.
Amends GS 160D-703, adding a new requirement for local governments to classify residential zoning districts based only on the number of dwelling units allowed per acre and prohibits classification based on the minimum lot size allowed. Specifies that this does not: (1) authorize development in an area that may not be developed under State or federal law or (2) limit the authority or duty of a local government to adopt or enforce a regulation required as a condition of a federally delegated or approved program, including those specified.
Section 17
Enacts new GS 160D-402.1 requiring local governments to prominently display their current fee schedules on their website. Requires the website to be updated to reflect any changes to fees, rates, or methods used to develop fees and rates within 30 days of adopting an ordinance that makes the changes. Requires local governments to report annually on fee schedules, fee collections, and compliance with this statute to the Local Government Commission, which must publish and display on its website a statewide report of local governments' current fee schedules. Requires local governments to give the fee schedule and a fee estimate to an applicant before a development approval; requires that the information be provided within 10 days of an application being completed. Also sets the deadline for providing an updated estimate when the project materially changes. Prohibits requiring the fee to be paid before providing an estimate. Requires local governments to give applicants a written, final, binding fee statement when a development approval is issued and prohibits the final fee from exceeding the most recent estimate, unless the local government adopts a new fee schedule by ordinance. Allows applicants to pursue a civil action to compel a local government to comply with this statute.
Specifies that this section does not limit or affect the power or authority of a local government to impose fees consistent with its statutory authority or constitutional requirements. Also specifies that this section does not require the disclosure of confidential information.
Section 18
Amends GS 160D-108, concerning development permit choice and vested rights, by adding to the conditions under which the 24-hour discontinuance period that follows the expiration of the vesting for an uncompleted development project that has been discontinued for no less than 24 consecutive months is automatically tolled so that it is tolled during the duration of an emergency declaration for which the defined emergency area includes the property. Makes conforming and organizational changes.
Section 19
Amends Section 1D.3.(b) of SL 2024-75, as amended, which concerns extension of certain development approvals in the area impacted by Hurricane Helene, by suspending the development approval and any associated vested right development approvals that are current and valid at any point from January 1, 2024, through December 31, 2027, within the affected area during the period beginning January 1, 2024, and ending December 31, 2030 (was, 2027).
Changes the effective date of the changes to (b) to when the act becomes law (was, effective retroactively to December 11, 2024, and applies only to development approvals issued by local governments located in the affected area that qualify, in whole or in part, for FEMA Public Assistance Categories C through G).
Section 20
Changes certain powers of the unit owners’ association (Association) under the NC Condominium Act (GS 47C-3-102) or a homeowners’ association (HOA