Adds new Part 9, Emerging Contaminant Mitigation, to Article 9 of GS Chapter 130A, with the purpose of providing funding to support the mitigation of the impacts of environmental contamination due to emerging contaminants on local public water and wastewater systems. Defines emerging contaminants as PFAS and 1,4-Dioxane. Establishes the Emerging Contaminant Mitigation Fund within the Department of Environmental Quality (DEQ) to support statewide efforts to detect, reduce, mitigate, and prevent exposure to emerging contaminants and to support scientific research and technology development related to removal, treatment, monitoring, and precursor identification for emerging contaminants. Specifies that the fund consists of any funds appropriated by the NCGA and grants from federal agencies or other non-State entities. Allows the Fund to be used by the State Water Infrastructure Authority (SWIA) to provide grants to units of local government operating public water or wastewater treatment systems for: (1) emerging contaminant sampling and monitoring in drinking water, wastewater, surface water, and groundwater; (2) installation or upgrade of water treatment technologies for emerging contaminant removal; (3) emergency response and remediation of emerging contaminant contamination in soil, surface water, and groundwater; and (4) providing technical assistance to significant industrial users for the purpose of eliminating discharges of PFAS and 1,4-dioxane to publicly owned treatment works. Gives priority to public water systems and public wastewater systems (1) for which contamination from emerging contaminants has caused the greatest impacts on public health and the environment and (2) that are or meet the criteria to be categorized as a distressed unit. Requires SWIA to report annually as a part of the report required by GS 159G-72 regarding projects funded under this provision. Makes conforming changes to GS 159G-71. Appropriates $56 million in recurring funds for 2026-27 from the General Fund to DEQ for the Fund.

Appropriates $14 million in recurring funds for 2026-27 from the General Fund to the UNC North Carolina Collaboratory to support scientific research on emerging contaminants conducted by or in collaboration with public or nonprofit academic institutions, including any of the six specified issues. Requires consultation with affected stakeholders, scientific experts, and State and local officials to ensure funding is targeted to research in areas of highest environmental and public health impact. Applies GS 116-255(c) to these funds. Requires the Collaboratory to include in their report under GS 116-256 documentation of its use of the funds and updates on the research funded by this section.

Appropriates $25 million for 2026-27 to the UNC Board of Governors, to be allocated to the NC Collaboratory for any of the eight listed research, development, and remedial activities related to PFAS. Requires a summary of these activities to be included in the report that must be submitted under GS 116-256.

Enacts new GS 130A-315.1 setting out maximum contaminant levels for Perfluorooctanoic acid (PFOA), Perfluorooctanesulfonic acid (PFOS), Perfluorononanoic acid, Hexafluoropropylene oxide dimer acid, Perfluorohexanesulfonic acid (PFHxS), Perfluorobutanesulfonic acid (PFBS), and mixtures containing two or more of PFHxS, PFNA, and HFPO-DA. Requires the adoption of rules to establish a compliance schedule with respect to these levels for all public water systems.

Requires DEQ, in consultation with the North Carolina Collaboratory, by October 1, 2026, to develop: (1) science-based PFAS concentration limits for commonly detected PFAS, which must be used to establish monitoring, permitting, and pollution reduction requirements for direct discharges to surface waters and significant industrial users ("regulated entities") as provided in this section; (2) source reduction and treatment requirements to be imposed, including requiring regulated entities to do one or more of the specified four actions; and (3) a compliance schedule of up to 36 months to begin no later than January 1, 2027, for regulated entities to achieve the requirements. Requires all National Pollutant Discharge Elimination System (NPDES) permits and pretreatment permits, as applicable, for regulated entities subject to this section to include enforceable limits or conditions for PFAS discharges based on the established concentration limits and available treatment options, as determined by DEQ. Sets out allowable exemptions. Makes this section applicable only to the following regulated entities: (1) significant industrial users that discharge wastewater containing PFAS compounds to a POTW and have exceedances of the established PFAS concentration limits and (2) direct dischargers that discharge wastewater containing PFAS compounds to surface waters of the state under an NPDES permit, and have exceedances of the established PFAS concentration limits. Requires the Environmental Management Commission to adopt temporary and permanent rules to implement the provisions of this section and allows DEQ to issue interim guidance pending rule adoption.

Establishes a moratorium on new or increased interbasin surface water transfers from defined area of Cape Fear River Basin. Prohibits Environmental Management Commission (EMC) from issuing certificates authorizing such transfers. Creates exceptions for existing transfers and any emergency transfer authorized by the Secretary of Environmental Quality. Expires June 1, 2030.

Directs the North Carolina Collaboratory at the University of North Carolina at Chapel Hill (Collaboratory) to study the Cape Fear River Basin to determine its reliable yield of water supply and make recommendations for legislative changes to ensure sustainability of use. Sets out required contents of the study. Directs Collaboratory to consult with the Department of Environmental Quality, the EMC, the State Water Infrastructure Authority, the North Carolina League of Municipalities, and other relevant entities. Requires Collaboratory to report to the General Assembly no later than July 1, 2029.

Appropriates $1.5 million for 2026-27 from the General Fund to the Board of Governors of the University of North Carolina to be allocated to the Collaboratory for this study. Provides that the funds shall not revert at the end of the 2026-27 fiscal year and shall remain available until the end of the 2028-29 fiscal year.

Requires that the NC Collaboratory carry out a collaborative research effort in partnership with utilities and state regulators to provide utilities, state regulators, and other relevant entities with the knowledge, data, and strategies they need for utility management and decision making. Sets out three issues that must be studied. Requires publicly owned or operated wastewater treatment works and DEQ to partner with the Collaboratory in conducting the study. Allows the Collaboratory to use any prior or future funds appropriated by the NCGA for PFAS-specific research, or other discretionary funds, to carry out this study and present the final results to DEQ, the Environmental Review Commission, and the Environmental Management Commission by January 31, 2029.

Appropriates $10 million in nonrecurring funds and $200,000 in recurring funds for 2026-27 from the General Fund to DEQ for the Bernard Allen Drinking Water Fund.

Appropriates $2,613,925 in nonrecurring funds and $1,659,393 in recurring funds for 2026-27 from the General Fund to DEQ for lab operations and field work, including the development of new sampling and testing protocols, to identify, reduce, and remediate PFAS contamination.

Includes a severability clause.

Effective July 1, 2026, unless otherwise indicated.