House committee substitute to the 2nd edition makes the following changes. 

Amends GS 159G-42 concerning the disbursement of the proceeds of a loan or grant to water and wastewater infrastructure, as follows. Amends proposed (b) to require the Department of Environmental Quality (DEQ) to ensure that the recipient (was, to encourage the recipient) has one of the specified agreements or resolutions with respect to each local government unit that (1) serves a customer base of over 5,000 and (2) purchases treated or untreated water from the recipient at the time of the loan or grant disbursement or is anticipated to purchase treated or untreated water from the recipient within the 30 years following the loan or grant disbursement (previously did not include anticipated purchase of treated or untreated water). Amends proposed (c) concerning resolving disputes between local governments in executing the written agreement, by adding that when there is a dispute between the local governments and the parties fail to agree, or do not adopt the Local Government Commission's recommendations upon disagreement, then DEQ must not disburse any loan or grant to either local government unit until the dispute is resolved to the Local Government Commission's satisfaction. Adds new (d) providing that the provisions in (b) and (c) apply only to disbursements of a loan or grant where the disbursement is for regionalization and the recipient or a beneficiary of the disbursement withdraws water from a reservoir owned by the US Army Corps of Engineers lying in at least two states with a dam located outside North Carolina. Amends the act's long title.