Section 1

Amends the provisions pertaining to local permit programs for sewer extension and reclaimed water utilization under GS 143-215.1 as follows. Permits new dwelling units, including units that have yet to be connected and for which they have allocated capacity, to calculate wastewater flows at 75 gallons per day per bedroom. Establishes the following requirements for sewer line extensions for wastewater treatment systems owned or operated by municipalities, counties, sanitary districts, or public utilities: (1) prior to actual flow exceeding 80% of the system's permitted hydraulic capacity, based on the average flow during the last calendar year, the permittee must submit an engineering evaluation with specified requirements concerning their future wastewater treatment, utilization, and disposal needs and (2) prior to actual flow exceeding 90% of the system's permitted hydraulic capacity based on the average flow during the last calendar year, the permittee must obtain all permits needed for the expansion of the system, and submit plans and a schedule for construction, if needed. Sets forth justification requirements that must be met if expansion is not proposed or proposed at a later date. Allows permittees for a wastewater system located in a county with a projected growth rate above 2% annually and operating in compliance with all pollutant discharge standards and not exceeding its 12-month average flow limitation to allocate its system's permitted hydraulic capacity, based on the average flow during the last calendar year, as follows: (1) up to 110% allocation upon signing a contract for the expansion of the wastewater treatment, utilization, or disposal system within 36 months and (2) up to 115% if the expansion of the wastewater treatment, utilization, or disposal system to increase the system capacity is within 24 months of completion.

Section 2

Revises the definition of river basin in GS 143-215.22G. Now defines the term to mean NC portion of the drainages included within the US Geologic Survey, with 17 listed basins with designated subbasins. Specifies that "river basin" includes any portion of the river basin that extends into another state; any area outside of the state that is not included in one of the listed river basins comprises a separate river basin. Eliminates the previously identified river basins as designated on the specified 1991 map. Adds new defined term subbasin. Amends defined term transfer to include subbasins. Makes organizational and technical changes.

Expands upon the required information a person must provide upon registering a water withdrawal or transfer to the North Carolina Environmental Management Commission (Commission) to include a specification that for transfers of 2 million gallons of water or more per day, the registrant must submit a water balance for the water system with a 50-year planning horizon beginning with the current year, the name of the water system owning the pipe transferring water across the basin boundary, the daily raw water withdrawals or purchase amounts in million-gallons of water per day (MGD), the average daily or maximum daily wastewater discharge for each basin in MGD, the total water returned to the source basin, and the estimated water being transferred. Requires that the data used to determine the water balance align with the local water supply plan. Requires these same persons to submit an annual report on water withdrawals.

Amends GS 143-215.22L (pertaining to regulation of surface water transfers) to change the certification requirements for interbasin transfers to require a certification for the following:

(1) Initiate a transfer from 5 million gallons of water or more per day (currently, 2 million), calculated as a daily average of a calendar maximum month and not to exceed 7.5 million gallons per day in any one day (currently 3 million), from one river basin or one subbasin to another (currently just river basin).

(2) Increase the amount of an existing transfer of water from one river basin or one subbasin (currently just river basin) to another by 25% or more above the  average daily amount transferred during the year ending July 1, 1993, if the total transfer including the increase is 7.5 million gallons or more per day (currently, 2 million).

(3) Increase an existing transfer of water from one river basin to another by 2 million gallons of water per day, calculated as a daily average of a calendar maximum month and not to exceed 3 million gallons per day in any one day, above the amount approved by the Commission in a certificate issued before July 1, 1993. (Currently applies to all transfers of water without taking the amount transferred into account.)

(4) Increase an existing transfer of water from one subbasin to another subbasin within the same river basin by 5 million gallons of water or more per day, calculated as a daily average of a calendar maximum month, with an increase of no more than 7.5 million gallons per day in any one day during any consecutive 10-year period.

Adds to certificate exceptions by exempting tests of interconnections between parties to an interlocal mutual support agreement when all parties to the agreement request the transfer and the test complies with Secretary of Environmental Quality (Secretary) requirements. Deletes requirement for notice of intent to file a petition. Instead just requires an applicant to submit a notice of intent to initiate an environmental study. Amends contents for notice of interbasin transfer as well as requirements for the record the Commission prepares of responses to the proposed interbasin transfer. Makes technical changes. Allows the Commission to grant a certificate for a proposed transfer of water in whole or in part, or to deny the certificate. (Currently, can’t grant the certificate in part.) Requires holding at least one public hearing on the draft determination (was, at least two hearings held in specified areas). Adds two additional required determinations to the factors the Commission must consider in determining whether a certificate should be issued for a water transfer in its findings of fact: whether the application is materially and substantially in compliance with GS 143-215.22L and whether the applicant complied with the statute’s notice requirements. Amends the required finding needed to ultimately issue a certificate for transfer from a finding that the detriments have been mitigated to the maximum degree possible to a finding that the detriments will be mitigated in line with the principles underlying the statement of policy in GS 143-215.22L. Removes the requirement that an applicant proceeding under the alternate requirements for coastal counties file a notice of intent that includes a nontechnical description of the request and identification of the proposed water source. Establishes a subbasin transfer annual reporting requirement on subbasin to subbasin impact to the Department by August 1 for transfers of more than 5 million gallons of water or more per day, calculated as a daily average of a calendar month or more than 7.5 million gallons per day in any one day, without obtaining a certificate.  

Makes conforming changes to account for newly expanded scope of transfer to include subbasins and for removal of required notice of intent to file a petition. Makes technical changes.

Applies to any petition for a certificate for a transfer of surface water from one river basin or subbasin to another river basin or subbasin first made on or after the date the act becomes law.