Senate amendment #1 makes the following changes to the 1st edition.

Modifies the proposed changes to GS 159G-42 providing that before disbursement of a loan or grant to a recipient that is engaged in regionalization or initiating regionalization with the loan or grant, the Department of Environmental Quality (DEQ) must encourage the recipient to have, rather than ensure that the recipient has, one of the following with respect to each local government unit that serves over 5,000 (previously did not specify customer base size) and purchases treated or untreated water from the recipient at the time of the disbursement of the loan or grant or anticipated to be served within the 30 years following the disbursement of the loan or grant: (1) a written agreement approved by the recipient's governing board and the local government's governing board stating the current rates of purchase and any anticipated increases over the term of the agreement or (2) a resolution approved by the governing board of the purchasing local government unit stating the local government unit waives its option to establish such a written agreement. Eliminates the proposed provision that prohibited disbursement of any loan or grant until a dispute is resolved to the satisfaction of the Local Government Commission.