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

Amends the long and short titles.

Amends GS 130A-334, which defines terms for GS Chapter 130A, Article 11 (Wastewater Systems), to amend the definition ofrepair to exclude replacement of a damaged distribution device by a certified on-site wastewater contractor.

Amends GS 130A-337 (Inspection; operation permit required). Amends provisions within subsection (b), regarding the issuance of an operation permit for a wastewater system by a local health department, to further require written release by a certified on-site wastewater contractor that the system has been installed or repaired as per the conditions of the improvement permit and authorization for wastewater system construction. Further directs the local health department to issue any conditions imposed in the operation permit. Provides that subsequent findings or interpretation of rules of the local board of health by the local health department outside the initial site evaluation and conditions of the initial improvement permit and authorization for wastewater system construction must not be used to deny the operation permit.

Amends GS 130A-335 (Wastewater collection, treatment and disposal; rules). Requires proposed sites for new wastewater systems, or where repair is necessary for compliance, to be evaluated for soil conditions and site features by a licensed soil scientist (was, licensed soil scientist or licensed geologist). Authorizes a licensed geologist to evaluate the proposed site or repair area for geologic and hydro-geologic conditions. Requires evaluations for soil conditions and site features be approved by the applicable permitting authorities to produce the design and construction features of the new proposed wastewater system or repair project, provided that the evaluation of soil conditions, site features, or special hydrologic conditions satisfies all requirements of GS Chapter 130, Article 11, and a licensed soil scientist or geologist conducting such an evaluation maintains an errors and omissions liability insurance policy as specified. Directs local boards of health to use historical experience to establish modifications or additions to rules established by the Commission for review and approval of wastewater systems, subject to approval by the Department of Health and Human Services. Prohibits the Commissions' and the local boards of health's rules from establishing limitations on depths to suitable, provisionally suitable, or unsuitable soils or saprolite, or limitations based solely on gallons per day, or require sufficient available space for a replacement wastewater system of 480 gallons per day or less of domestic wastewater.

Amends GS 130A-336.1 (Alternative process for wastewater system approvals). Amends the provision requiring the owner of a proposed wastewater system to employ a licensed soil scientist or geologist, to clarify that the requirement to hire a licensed geologist is subject to the need to evaluate geologic and hydrologic conditions.

Requires the Commission for Public Health and any local board of health to implement 15 NCAC 18A .1945 (Available Space) as follows. Prohibits the Commission or the rules of a local board of health from requiring sufficient available space for a replacement wastewater system of 480 gallons per day or less of domestic wastewater. Directs the Commission to amend the Primary Personnel Rule consistent with these provisions.

Requires the Commission for Public Health and any local board of health to implement 15 NCAC 18A .1943 (Soil Depth) as follows. Prohibits the Commission or the rules of a local board of health from establishing limitations on depths to suitable, provisionally suitable, or unsuitable soils or saprolite, or limitations based solely on gallons per day. Directs the Commission to amend the Primary Personnel Rule consistent with these provisions.

Directs the Environmental Management Commission to adopt temporary rules implementing SL 2015-241, Section 14.16B (eliminating initial abatement requirements for noncommercial tanks), no later than October 1, 2017. Directs the Commission to report the status of rulemaking to the Fiscal Research Division and the chairs of the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources by December 31, 2017.

Amends GS 113-201 to authorize the Marine Fisheries Commission to adopt rules to establish Shellfish Aquaculture Enterprise Areas [as defined in new GS 113-201.1(3a)] to facilitate shellfish aquaculture opportunities through advanced siting and preapprovals from relevant federal and State agencies. Requires the Secretary of Environmental Quality to only issue nontransferable leases within designated Shellfish Aquaculture Enterprise Areas, with relinquishment or termination of the lease making the land revert back to the State to be made available to other applicants.

Amends GS 113-203 (Transplanting of oysters and clams). Amends the prohibition on transplanting oysters or clams from public grounds or permitted aquaculture operations utilizing waters in theprohibited, restricted, or conditionally approved classification to private beds as specified (currently does not include prohibited classification). Subjects the provision making it lawful to transplant seed oysters or clams to the requirement that the Secretary of Environmental Quality not have determined that the nursery or shellfish would present a risk to public health, and includes the transplant of seed oysters or clams taken from permitted aquaculture operations that use waters in theprohibitedclassification.

Amends GS 113-168.4 to authorize a person licensed under GS Chapter 113, Article 14A, to sell fish (was, oysters or clams) reared in a hatchery or aquaculture operation to the holder of an Aquaculture Operation Permit, an Under Dock Culture Permit, or a shellfish cultivation lease for further grow out.

Directs the Division of Marine Fisheries to review its Fishery Management Plan for river herring, and report no later than December 15, 2017, to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources regarding the continuing validity and scientific basis for the continued status of the species as "overfished," as specified.

Authorizes the Division of Water Resources and the State Property Office to negotiate an agreement with appropriate federal agencies for the State to assume responsibility for acquiring dredged material easement sites for maintenance dredging of the Atlantic Intracoastal Waterway between Beaufort Inlet and the Virginia border in exchange for the reduction in size and possible change in location of dredged material disposal easement sites currently held by the federal government, as specified.

Amends GS 143-215.73F(b) to authorize the use of the Shallow Draft Navigation Channel Dredging and Aquatic Weed Fund to provide funding for the above agreement with the federal government.

Provides a severability clause.

The act is effective when it becomes law.