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

Part II

Section 2

Makes a clarifying change to the title of GS 1D-27 (concerning exempting injury to certain facilities from the punitive damages cap).

Part III

Section 3

Clarifies that the effective date of new Article 3 (prohibiting adversarial foreign governments from acquiring high purity quartz) applies only to ownership interests (was, interests in land) acquired on or after the act becomes law.

Part IV

Section 4

Specifies that GS 143-214.1A (water certification projects) applies to electric generation projects (was, just projects) at or near an existing or former electric generating facility, in addition to those that fall under Section 401 of the federal Clean Water Act.

Part V

Section 5

Moves all of Part V (provisions changing the implementation of the Replacement of Existing Structures Rule) to Part XIV and replaces it with the following content from Part XIV with the following changes.

Moves new GS 162A-900 (concerning limitations on allocating service for residential development) into the section. Now prevents local government units from requiring applicants for water and sewer service for residential development (defined) to agree to conditions not otherwise authorized by law or offers to consent to any condition not otherwise authorized by law, including: (1) payment of taxes, impact fees or other fees, or contributions to any fund; (2) adherence to restrictions on land development or land use; and (3) adherence to any restrictions related to building design elements.

Prevents local government units from implementing a scoring system or preference system to allocate water or sewer service applicants for residential development that now includes four listed matters, including considering building design elements, setting minimum square footage, or requiring additional fire apparatus roads that are not in compliance with the required number of such roads set forth in the NC Residential Code.

Part X

Section 10

Amends GS 113A-103 by excluding from the definition of development, as that term is used in the Coastal Area Management Act, floating structures used primarily for aquaculture and associated with an active shellfish cultivation lease area or franchise (was, just floating structures used for aquaculture). Makes conforming change.

Part XI

Removes all of former Part XI (amending various statutes related to coastal development) and replaces it with the following new content.

Section 11

Adds new GS 113A-113.1 (requiring the Office of State Archeology [OSA] to provide information to owners and prospective purchasers in areas of environmental concern). Requires OSA to, upon request of an owner or prospective purchaser of land located in an area of environmental concern, to provide the owner or prospective purchaser with information as to any known or suspected archaeological or historical significance of the property, including any supporting evidence. Beginning either October 1, 2024, or 60 days after the provision described below is reported as approved, specifies that if OSA has informed the requesting party that there is no known or suspected archaeological or historical significance associated with the property, then prohibits OSA for a period of three years thereafter from adding a condition to a permit that requires or restricts a permittee's activity with respect to the property based on any archaeological or historical significance of the property unless a new finding or study indicates otherwise. If a new finding or study reveals information to support imposition of such a condition in a permit issued within the three-year period, requires OSA to notify the prospective purchaser or owner of the finding or study prior to imposition of the condition. 

Requires OSA to apply for any State, federal, or private grant funding available to purchase properties within areas of environmental concern of exceptional archaeological or historical significance to the State.

Requires the Department of Environmental Quality (DEQ), by no later than August 1, 2024, to prepare and submit GS 113A-113.1 to the US National Oceanic and Atmospheric Administration (NOAA) for approval. Requires DEQ to report to the Environmental Review Commission quarterly on its activities under GS 113A-113.1 starting September 1, 2024, and ending when the NCGA repeals the reporting requirement. Effective August 1, 2024.

Part XIII

Section 13

Removes proposed defined terms plan set and technical review period from GS 130A-328 (concerning public water systems operating permits). Changes the applicability of the new process set forth in the act to authorizations for water distribution systems (previously included ground water systems, surface water systems, and distribution systems). Increases the time that DEQ has to review a complete application (now defined) from 30 days to 45 calendar days. Specifies that the 45-day review period begins when a professional engineer provides certification that the design meets or exceeds the Minimum Design Criteria developed by DEQ for the project. Requires DEQ’s initial review of an application to determine if all required information is included, and makes conforming changes. Replaces references to "plan set" with references to "application." Allows DEQ to send notice of a completed application also by letter (was, just electronic notice). Removes provisions pertaining to the extension of the technical review period if requested information is not received within five days of DEQ’s request. Makes technical changes. Now requires DEQ to return the application to the applicant if DEQ requests additional information to complete the technical review and the applicant does not provide that information within 30 days of DEQ’s request (was, 15 days). Pauses the 45-day review period while DEQ awaits any requested information. Removes provisions requiring the applicant to provide a new application fee upon resubmission of a returned plan for failure to supplement with requested information. Unpauses the clock for the 45-day technical review period upon DEQ’s timely receipt of requested information. Removes provisions requiring return of portions of application fee for each day DEQ goes beyond the review period. Instead, specifies that if DEQ goes beyond the technical review period, the authorization to construct will be deemed approved. Removes provisions pertaining to guidance documents. Makes conforming changes to the effective date.  

Part XIV

Moves all of Part V (provisions changing the implementation of the Replacement of Existing Structures Rule) to Part XIV, subject to the following changes.

Section 14

Amends the act’s definition of Replacement of Existing Structure Rule and CAMA Rules (Subchapter 07J of 15A NCAC) under 15A NCAC 07J .0210 as follows. Expands the amount a dock, pier, or walkway damaged or destroyed by fire or other natural elements to include the lesser of five feet or 5% (was, just five feet) without need for a CAMA permit for repair. Exempts docks and piers that are greater than six feet in width, greater than 800 square feet of platform area, or adjacent to a federal navigation channel from the new interpretation of the rule.

Amends GS 160D-1104 (duties and responsibilities pertaining to building code enforcement) so that an inspection department must notify the Division of Coastal Management of a replacement of a dock, pier, catwalk, or walkway in a coastal area no later than 60 days after the inspection department’s inspection. 

Prohibits the NC Residential Building Code from requiring a professional engineer or architect to design or otherwise certify the construction of residential docks, piers, or catwalks or walkways.

Part XV

Section 15

Amends GS 130A-330 (concerning local authority to require backflow preventers) to have the 3-year limits on periodic testing apply only to backflow preventers installed or replaced within the last ten years. Amends defined term certified backflow prevention assembly tester. Adds qualified instructor and training program as defined terms.

Part XVII

Section 17

Beginning either October 1, 2024, or 60 days after the provision described below is reported as approved, amends GS 113A-115.1 (limitations on erosion control structures) as follows.

Specifies that if a permanent erosion control structure originally permitted pursuant to a variance granted by the Environmental Review Commission (Commission) prior to July 1, 1995, consists of a field of geotextile sand tubes, the field may be replaced with rock erosion control structures subject to four listed criteria. Requires the Commission to permit replacement of the geotextile sand tubes with rock erosion control structures meeting that criteria as replacement of the permanent erosion control structure originally permitted. Directs that a permanent erosion control structure is not a terminal groin and is not subject to the provisions of this section applicable to terminal groins. Expands the permits that the Commission may issue for the construction of a terminal groin from six to seven. 

Specifies that DEQ must submit an application to NOAA for approval of the changes to GS 113A-115.1 by no later than July 1, 2024. Requires DEQ to report its activities to the Commission starting September 1, 2024, until the reporting requirements are repealed by the NCGA.

Part XVIII

Section 18

Amends GS 106-701 (right to farm defense in nuisance actions) to include compost facilities as one of the agricultural operations entitled to assert the defense by adding facilities for the production of compost for commercial purposes to those meeting the definition of agricultural operation. 

Removes Part VIII: provisions amending GS 62-133.20 (cleanfields renewal energy demonstration parks); removes Part VIII: when enacted new GS 62-133.8A (renewable energy certificates for natural gas generated from renewable energy resources). Makes conforming organizational changes.

Part XIX

Moves the contents of prior Part XVII into new Section 19.  

Makes technical and organizational changes. Amends the act’s long title.