Section 1

Amends GS 113A-57 by amending the requirements for undertaking land-disturbing activity, as follows. Amends the requirement applicable when the activity will disturb more than one acre that erosion and sedimentation control devices and practices be installed that retain the sediment generated by the land-disturbing activity within the boundaries of the tract during construction and development and that a permanent ground cover be provided or planned to restrain erosion after completion of construction or development, by adding that requirements for ground cover necessary to terminate coverage under an erosion and sedimentation control plan must not exceed the requirements for final vegetative or non-vegetative stabilization set forth in Part 2.2.14c. of the National Pollutant Discharge Elimination System (NPDES) Construction General Permit (CGP) for Stormwater Discharges from Construction Activities issued by the US EPA. Adds that persons initiating land-disturbing activity who must obtain coverage under NPDES General Permit No. NCG01000 (NCG01), the requirements of subdivision (4) of this section (prohibiting initiating any land-disturbing activity that will disturb more than one acre on a tract unless, 30 or more days prior, an erosion and sedimentation control plan has been filed with the agency and been approved) are satisfied by application for and receipt of the NCG01. Provides that no additional or different requirements can be imposed for the submission or approval of an erosion and sedimentation control plan beyond that required for the NCG01 permit, whether such permit is issued by the Department of Environmental Quality (Department) or by a local government.

Requires that North Carolina Sedimentation Control Commission (Commission) to adopt temporary rules to implement the ground cover requirements established in GS 113A-57, above, to remain in effect until permanent rules that replace the temporary rules become effective. 

Section 2

Amends GS 113A-54 to require the Commission's rules for the control of erosion and sedimentation resulting from land-disturbing activities, to also include standards, policies, and procedures for permitting of grading to be adopted by any local government operating an approved erosion and sedimentation control program within its jurisdiction. Prohibits requiring a separate permit for grading when grading is to be conducted as part of land-disturbing activity required to obtain coverage under NPDES General Permit No. NCG01000 (NCG01) or have an approved erosion and sedimentation control plan. Prohibits charging a permit fee when a grading permit is required as part of land-disturbing activity not required to obtain coverage under the NCG01 or have an approved erosion and sedimentation control plan pursuant to the requirements of the Sedimentation Pollution Control Act of 1973.

Requires the Commission to adopt temporary rules to implement these new requirements no later than 60 days after the act becomes law. Temporary rules remain in effect until permanent rules that replace the temporary rules become effective.

Requires a local government operating an approved erosion and sedimentation control program within its jurisdiction on the date this act becomes law, by October 1, 2023, submit to the Commission for its approval standards, policies, and procedures for permitting of grading to be adopted by the local government and incorporated into its erosion and sedimentation control program for its jurisdiction. Provides that all grading permit standards, policies, and procedures of those local governments that are in effect when this act becomes law will remain in effect until December 31, 2023, but be void and unenforceable after that, until the Commission has approved new or revised standards, policies, and procedures for permitting of grading to be adopted by the local government and incorporated into the erosion and sedimentation control program for its jurisdiction in compliance with rules adopted by the Commission. Specifies that when a local government has issued a grading permit for a multiyear project, however, that permit will remain in effect until the termination of the project, and modifications to the permit that would result in additional cost to the permittee are prohibited. 

Section 3

Amends GS 113A-60, concerning local erosion and sedimentation control programs, as follows. Limits the requirements of an approved local sedimentation control program to meeting, not exceeding, the requirements for stormwater discharges from construction activities under the 2022 Clean Water Act NPDES general permit for stormwater discharges from construction activities, as specified.

Also amends the statue to require an approved local program to issue an NPDES General Permit No. 15 NCG01000 (NCG01) to persons initiating land-disturbing activity in their jurisdictions that are required to obtain coverage under the NCG01, instead of a land disturbance permit or other permit or certification, issued for purposes of compliance with the Sedimentation Pollution Control Act of 1973 and rules adopted thereunder. Caps the fee a local program may charge for issuance of an NCG01 at $200 and prohibits charging other fees. Allows half of the fee to stay with the local program while the other half goes to the Department. Limits the Commission to approving local erosion and sedimentation control programs that meet, not exceed, the standards of the Sedimentation Pollution Control Act of 1973 and rules adopted thereunder. Effective upon the date the temporary rules required below become effective and applies to applications for permits for land-disturbing activities submitted on or after that date.

Requires a local government operating an approved erosion and sedimentation control program within its jurisdiction on the date this act becomes law that wants to continue the program to submit a revised program to the Commission by October 1, 2023, for its approval and allows adoption of ordinances and regulations necessary to meet, but not exceed, the requirements for stormwater discharges from construction activities under the 2022 Clean Water Act NPDES general permit for stormwater discharges from construction activities, as specifies. Sets out the process for the reivew and approval of the revised programs. Provides that after the effective date of this act, a local government is deemed only to have approval to administer a limited erosion and sedimentation control program for its jurisdiction that gives the local government responsibility only for the assessment and collection of fees and for the inspection of land-disturbing activities until: (1) the Commission has approved a revised program and (2) the Commission or Department, as applicable, has established processes to enable local governments to issue NCG01 instead of a land disturbance permit or other permit or certification issued for purposes of compliance with the Sedimentation Pollution Control Act of 1973.

Requires the Commission to adopt temporary rules, no later than 60 days after this act becomes law, to require approved local programs to issue NCG01 to persons initiating land-disturbing activity in their jurisdictions that are required to obtain coverage under the NCG01 instead of a land disturbance permit or other permit or certification issued for purposes of compliance with the Sedimentation Pollution Control Act of 1973. Makes the temporary rules effective until permanent rules that replace the temporary rules become effective.

Section 4

Enacts new GS 143B-279.4A requiring NCGA approval of memorandums of agreement between the US EPA and the Department, the Environmental Management Commission, the Coastal Resources Commission, the Sedimentation Control Commission, and any other board or commission charged with implementation of State or federal environmental law. Prohibits implementing of the terms of such agreements with NCGA confirmation. Provides that if the EPA withdraws the State's authority to administer the Clean Water Act, then the NCGA directs the Department to continue administration of the terms of the most recent version of any applicable memorandum of agreement executed between the State and EPA that governs the State's administration of that program and to continue to timely issue any permits associated with the program if the NCGA determines via resolution that the EPA does not have funding or personnel to effectively administer the program's requirements, and that the EPA's assumption of the program's requirements would cause serious economic hardships. Requires the Department to continue administering the program under the terms of the most recent version of any applicable memorandum of agreement until a new agreement has been approved by the NCGA, subsequently executed by the Department. Prohibits state agencies from incorporating by reference any federal law or regulation for the protection of the environment or natural resources until the NCGA enacts legislation to specifically approve adoption of the rule; sets out the process for approval. Gives the Department the right to define vague, ambiguous, or undefined terms included in any memorandum of agreement with the EPA or federal environmental law as issues arise resulting from application of those terms. Requires the Department to report quarterly to the Environmental Policy Council to identify all changes to federal law or regulations enacted or proposed that would impact the administration of environmental regulatory programs in North Carolina. Requires the first report to be submitted October 1, 2023.

Section 5

Amends the membership of the Sedimentation Control Commission by removing the current membership provisions and provisions concerning term limits, filling vacancies, and removal of members and replaces them with the following. Requires membership to include (1) five members appointed by the Governor and subject to confirmation by the Senate, as recommended jointly by the boards of the NC League of Municipalities and NC Association of County Commissioners, by the Carolinas Branch of the Associated General Contractors of America specializing in commercial site development, by the Professional Engineers of NC, Inc, that is a registered professional engineer specializing in stormwater and erosion control and design, and members of the State Soil and Water Conservation Commission and NC Mining Commission; (2) three members appointed by the NCGA upon recommendation of the Speaker of the House with one member recommended by the Board of the NC Home Builders Association, one contractor specializing in coastal construction, and one licensed soil scientist; (3) three members appointed by the NCGA upon recommendation by the President Pro Tempore of the Senate, with one member recommended by the Board of the NC Home Builders Association specializing in residential site development, one design professional specializing in site development in the piedmont area and one specializing in the highland/mountain area; and (4) the director of the NC Water Resources Research Institute, ex officio and nonvoting. Sets out the process for the Governor to submit appointments. Sets terms of office at four years and prohibits reappointment to more than two consecutive terms. Sets out staggered terms. Sets out the process for filling vacancies depending on the appointing authority. Allows the Governor to remove members for misfeasance, malfeasance, or nonfeasance. Gives members per diem and traveling and subsistence expenses in accordance with GS 138-5. Sets out provisions governing quorum and staffing. Allows membership to be concurrent with other elective or appointive offices.

Section 6

Adds news Article 37 to GS Chapter 20, establishing the 17-member Environmental Policy Council, with members appointed by the Governor and NCGA with the specified qualifications, as well as three specified members. Sets membership terms at two years. Requires the Council to review: (1) the efficacy of State and local programs regulating environmental and natural resource matters in North Carolina, and costs associated with those programs; (2) current federal laws and regulations for the protection of the environment or natural resources, and how those requirements are implemented by State and local entities; and (3) proposed changes to federal laws and regulations for the protection of the environment or natural resources, and potential impacts from those changes. Also requires the Council to make recommendations for legislative action on a continuing basis on any of those, and specifically legislative action to approve or disapprove the authority of any State agency, board, or commission to adopt rules that incorporate proposed changes to federal laws and regulations for the protection of the environment or natural resources by reference. Sets out provisions governing subsistence and travel expenses, meetings, quorum, election of a chairperson, and staffing.

Section 7

Requires the Department, by July 1, 2023, to notify the EPA of its intent to initiate discussions to revise the NPDES Memorandum of Agreement between the State and US EPA Region 4, and any other agreement with EPA governing the State's Sedimentation Pollution Control Act of 1973 (Act), and its implementation of NCG01 to streamline the regulatory requirements of the Act and NCG01 for the purpose of eliminating program redundancies to minimize (1) unnecessary costs to, and duplication of efforts by, persons initiating land-disturbing activities; (2) unnecessary delays in project development, and (3) inefficient use of Department personnel and staff of local governments that administer delegated erosion and sedimentation control programs. Requires the Department to report quarterly to the Environmental Policy Council on the status of these activities beginning August 1, 2024, until this reporting requirement is repealed. 

Section 8

Requires the Department, by July 1, 2023, to request that the EPA consult with the Department on any proposed changes to federal regulations that would impact the State's administration of federal environmental programs in North Carolina, before the EPA notices the proposed changes in the Federal Register, so that the State can have meaningful collaborative input on development of regulations that it may be charged with administering. Requires the Department to report quarterly to the Environmental Policy Council on the status of these activities beginning August 1, 2024, until this reporting requirement is repealed. 

Section 9

Requires the Department, by July 1, 2023, to submit copies of any agreements executed between the Department and the EPA governing the State's administration of programs under the Clean Water Act to the specified NCGA committee. Also requires the Department to give that committee information on any federal funds received by the State in connection with administration of such programs, and all federal requirements for receipt of such funds as well as the adequacy of funding from all sources to fully implement the agreement requirements.

Section 10

Includes a severability clause.