Senate committee substitute to the 4th edition makes the following changes. Amends the act’s titles.

Removes proposed change to GS 90A-73 concerning the On-Site Wastewater Contractors and Inspectors Certification Board (Board).

Amends GS 90A-72 to require a person conducting any project requiring certification under Article 5 (Certification of On‑Site Wastewater Contractors and Inspectors) to hold sufficient general liability coverage for the project as well as any additional liability coverage required for systems completed under the specified statutes. Removes proposed changes to GS 90A-77(a)(8). Amends the changes to GS 90A-78 by removing the requirement that an applicant submit proof that they hold sufficient liability coverage. Changes the effective date of changes to GS 90A-73 and GS 90A-78 from January 1, 2026, to January 1, 2027.

Removes previous Section 3.5 concerning the Application Submittal Rule.

Removes the proposed changes to GS 87-97(e) concerning determination deadlines. 

Adds the following.

Amends GS 62-133.1B allowing the Utilities Commission to suspend the effect of the proposed base rates and the Water and Sewer Investment Plan implementation pending investigation into a request by a water or sewer utility to adjust base rates for no longer than 300 days.

Enacts new GS 162A-19.1 prohibiting a local government service provider from selling a water or sewer system that provides service to the public to a private company until the governing body of the local government service provider determines, after a public hearing, that the sale is in the public interest. Sets out nine issues to be considered in making the determination. Requires the local government service provider to prepare a statement showing the public interest, including the purchaser’s experience in water or sewer utility operation and showing they are financially capable of providing the service. Requires funds from the sale to be used to reduce debt for the system and repayment of federal grants associated with the system; remaining funds are to be deposited in the local government service provider’s general fund. Enacts new GS 162A-19.2 allowing a local government service provider establishing an increase in the rates, fees, or charges for water or sewer system customers outside of their jurisdictional boundaries to impose those that are higher than the charges to customers inside its boundaries. Sets out when a public hearing is required. Defines local government service provider under both of these statutes as: a county, city, water and sewer authority, metropolitan sewerage district, sanitary district, county water and sewer district, metropolitan water district, or a metropolitan water and sewerage district.

Requires the Environmental Management Commission to study whether the wastewater design flow rates as they apply to commercial and industrial water users accurately measure the user’s actual flow rates. Requires a report to the specified NCGA commission by January 1, 2027.

Amends GS 143-214.7 as follows. Defines built-upon area. Amends the definition of development, by no longer specifying that when additional development occurs at a site that has existing development, the built-upon area of the existing development must not be included in the density calculations for additional stormwater control requirements and that stormwater control requirements cannot be applied retroactively to existing development unless required by federal law. Now requires in (b3) that when development or redevelopment occurs on a site that has existing built-upon area; (1) the existing built-upon area is not included in the density calculations for additional stormwater control requirements; (2) the existing built-upon area is not subject to additional stormwater control requirements; (3) for purposes of determining the size of the area for which stormwater controls are required, a built-upon area that existed before the development or redevelopment must be applied on a square-foot-for-square-foot basis to reduce the built-upon area for which stormwater controls are required; and (4) stormwater control requirements cannot be applied retroactively to existing built-upon areas unless required by federal law. Adds new (b8) allowing local governments to offer nonmandatory incentives that waive building, zoning, connection, or other regulations or fees, provide tax and financial benefits, or institute other incentives for development or redevelopment that implements additional stormwater controls beyond those required. Requires local governments that implement a stormwater management program to amend their ordinances to conform to the changes made to (b3) in this act within 12 months.

Amends GS 130A-334 (definitions pertaining to wastewater systems) as follows. Adds defined terms advanced pretreatment (any biological, chemical, or physical process or system used in addition to or in place of a septic tank system, including, but not limited to, aeration, clarification, digestion, disinfection, filtration, separation, and settling. Advanced pretreatment effluent shall meet the treatment standards adopted by the Commission for Public Health (Commission) for better than septic tank effluent quality; specifies that advanced pretreatment must be part of a ground absorption system) and removes term pretreatment (any biological, chemical, or physical process or system for improving wastewater quality and reducing wastewater constituents prior to final treatment and disposal in a subsurface wastewater system and includes, but is not limited to aeration, clarification, digestion, disinfection, filtration, separation, and settling). Makes organizational changes. Replaces references to “pretreatment” with “advanced pretreatment” in GS 130A-335(f) and GS 130A-336.1(e)(1). Further amends GS 130A-343(g)(3) (allowing for a manufacturer of a wastewater system for on-site subsurface to apply and be considered for innovative system status) as follows. Replaces reference to “wastewater system” with reference to “advanced pretreatment system” when describing the system to be approved as an innovative wastewater system under the subsection so long as the statutory conditions are met. Now also requires the Department of Health and Human Services (DHHS) to verify that (1) the protocol testing dataset includes a minimum of 55 influent and effluent datasets that include the applicable constituents identified in rules adopted by the Commission and obtained from testing for a minimum of 26 weeks, with protocol sampling conducted during all weeks of the testing period and (2) the protocol testing data complies with the applicable effluent standards identified in rules adopted by the Commission in addition to other required verifications for issuance of an innovative wastewater permit under the statute. Allows the Commission to adopt temporary and permanent rules to implement these changes to GS 130A-343(g). 

Amends GS 130A-4 to make the Secretary of Health and Human Services, rather than the Secretary of Environmental Quality, responsible for enforcing rules adopted by the Commission of Public Health and Environmental Management Commission under GS 87-87(6) and (7) concerning private drinking water wells, under supervision of both the Department of Environmental Quality and Department of Health and Human Services (was, Department of Environmental Quality only). Requires a local health department to use local staff authorized by the Department of Health and Human Services (was, Department of Environmental Quality) to enforce the specific rules.