Senate committee substitute makes the following changes to the 3rd edition.

Changes the act's long and short titles.

Deletes the provisions amending Section 37.2(e) of SL 2016-94, concerning the remainder of funds appropriated to Environmental Quality Incentives Program projects in the Appropriations Act of 2016.

Deletes the provisions amending GS 143-215.72, which provided that when the Secretary of Environmental Quality issued new and revised policies for review of grant applications for water resource development projects and disbursement of funds under that statute, those policies did not apply to a project already approved for funding unless the project applicant agreed to the policy change.

Amends GS 113-201, authorizing the Marine Fisheries Commission to adopt rules to establish Shellfish Aquaculture Enterprise Areas to facilitate shellfish aquaculture opportunities through advanced siting and preapprovals from relevant federal and State agencies. Establishes that the Secretary of the Department of Environmental Quality (Secretary) can only issue nontransferrable leases within designated Shellfish Aquaculture Enterprise Areas. Adds that any leased parcel within a Shellfish Aquaculture Enterprise Area that is relinquished or terminated must revert to the State and be made available to other applicants. 

Amends GS 113-201.1, defining Shellfish Aquaculture Enterprise Area to mean an area designated and permitted by the Department of Environmental Quality (DEQ) that is subdivided into parcels and made available for shellfish aquaculture leasing. 

Amends GS 113-203, concerning the transplanting of oysters and clams. Clarifies that it is unlawful to transplant oysters or clams from public grounds or permitted aquaculture operations utilizing waters in the prohibited, restricted, or conditionally approved classification (currently, does not expressly refer to prohibited classification) to private beds except when the transplanting is done in accordance with the provisions of the statute and implementing rules. Modifies subsection (a3) to provide that it is lawful to transplant seed oysters or seed clams taken from permitted aquaculture operations that use waters in the prohibited, restricted, or conditionally approved classification to private beds pursuant to the specified permit and its restrictions, unless the Secretary determines that nursery or shellfish in an area will present a risk to public health (currently, does not depend upon the Secretary's public health determination; also does not currently expressly refer to prohibited classification).

Modifies GS 113-168.4(b), allowing the sale of fish reared in (currently, of oysters or clams from) a hatchery or aquaculture operation to the holder of an Aquaculture Operation Permit, an Under Dock Culture Permit, or a shellfish cultivation lease. 

Directs the Division of Marine Fisheries to review its Fishery Management Plan for river herring, as specified, and report to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources by December 15, 2017, regarding the continuing validity and scientific basis for the continued status of both species as overfished. Provides that if the Division of Marine Fisheries does not have an adequate scientific basis to review the status of both species, then the report must include cost estimates for the restoration of spawning and nursery area surveys and age composition work for all coastal streams within the State that historically contained significant river herring fisheries. 

Authorizes the Division of Water Resources of DEQ and the State Property Office to negotiate with appropriate federal agencies an agreement for the State to assume responsibility for acquiring dredged material easement sites appropriate for maintenance dredging of the Atlantic Intracoastal Waterway between Beaufort Inlet and the Virginia border in exchange for the reduction in size and possible change in location of dredged material disposal easement sites currently held by the federal government. Details required terms of this agreement. 

Amends GS 143-215.73F(b), authorizing funds of the Shallow Draft Navigation Channel Dredging and Aquatic Weed Fund to be used to provide funding for siting and acquisition of dredged disposal easement sites associated with the maintenance of the Atlantic Intracoastal Waterway north of Beaufort Inlet and south of the border with the Commonwealth of Virginia, under a memorandum of agreement between the State and the federal government. 

Amends GS 130A-309.09B(a), adding to the requirements for local governments to establish and maintain a solid waste reduction program, to forbid local governments from prohibiting by ordinance or otherwise the disposal of construction and demolition debris in any sanitary landfill permitted for the disposal of construction and demolition debris, which landfill has a valid and operative franchise agreement and is otherwise properly permitted pursuant to GS 130A-294.

Enacts new Part 8D in Article 21 of GS Chapter 143, establishing the Coastal Storm Damage Mitigation Fund (Fund). Provides for the sources of funding in the Fund. Limits the use of revenue credited to the Fund to costs associated with beach nourishment, artificial dunes, and other projects to mitigate or remediate coastal storm damage to the ocean beaches and dune systems of the State. Requires cost-sharing for any project funded by revenue from the Fund and sets forth cost-sharing requirements based on whether the projects are located in a development tier one area. Provides for non-state entities that contribute to the Fund for a particular project or group of projects to request that the contribution be returned if it has not been spent or encumbered within two years of receipt of the contribution by the Fund. 

Adds a severability clause.