House committee substitute deletes all the provisions of the 2nd edition and replaces it with AN ACT TO DESIGNATE RECLAIMED WATER AS A SOURCE WATER UNDER CERTAIN CONDITIONS.

Enacts a new subsection (a2) to GS 143-355.5 declaring that the General Assembly finds that reclaimed water systems permitted and operated under GS 143-215.1(d2) in an approved wastewater reuse program can provide water to supplement the water supply source for potable (safe to drink or drinkable) water in a way that is environmentally acceptable and protective of public health. Provides that regardless of any other provision of law, if all of a list of 11 specified conditions are satisfied, a local water supply system may combine reclaimed water with the source water treated to provide a potable water supply.

Amends GS 143-355.5(b)(3) to provide that standards adopted under this subdivision do not prohibit the direct distribution of reclaimed water as potable water under new subsection (a2) of this section.

Directs the Department of Environment and Natural Resources, in consultation with the Environmental Management Commission, to study the effects of chemicals in wastewater effluent (liquid waste or sewage discharged into a river or the sea) from municipal and privately operated wastewater treatment plants and in source water supplies. Specifies that the report is to provide guidance on future state actions relating to monitoring and mitigating the impacts of chemicals of emerging concern, such as pharmaceuticals and personal care products, flame retardants, and PFCs on source waters and surface waters in order to protect human health and aquatic life.