House committee substitute to the 2nd edition replaces the content of the previous edition with the following and makes conforming changes to the act’s titles.

Section 1

Amends GS 143-214.1A to require that for projects eligible for a Nationwide Permit or Regional General Permit that are not subject to (a) (setting out requirements for applications for certification under section 401 of the Clean Water Act filed for maintenance dredging projects partially funded by the Shallow draft navigation channel Dredging and Aquatic Weed Fund, projects involving the distribution or transmission of energy or fuel, and projects involving construction of an upland basin marina) that are required or elect to be covered under an Individual Water Quality Certification, that DEQ review the application according to the specified requirements. Those requirements address notification of the required fees, determining completeness of the application and providing notice of incompleteness, holding any necessary public hearings, a timeline for approval or denial of an application, issuance of a certification (which may include conditions if the proposed discharges into navigable waters subject to the Clean Water Act will comply with State water quality requirements), conditions under which a certification can be denied, and allowing a certification to be granted, denied, or waived, but prohibiting requiring withdrawal of an application. Requires DEQ, upon receiving an application for certification under section 401 of the Clean Water Act, to notify the applicant of required fees within five business days; if it fails to send the fee request within that time, the fee is waived.

Applies to applications for section 401 certifications pending or submitted on or after October 1, 2025.

Section 2

Adds new Part 5A, Upland basin marinas, to Article 7 of GS Chapter 113A, providing as follows.

Sets out NCGA findings and the intent that the Part be broadly construed to further the Part’s general purposes. Defines an upland basin marina as a marina constructed by excavating or dredging lands of elevations above the current mean or ordinary high-water mark and designed to accommodate more than ten vessels or boat slips. Considers an upland basin marina a water dependent use for purposes of general use standards adopted by the Coastal Resources Commission.

Requires, unless the Director of the Division of Water Resources or the director of the Division of Coastal Management makes a finding, based on site-specific technical information that the applicant cannot substantially comply with one or more of the criteria specified in the statute, that the Division of Water Resources and the Division of Coastal Management approve an application for the development of an upland basin marina project within 60 days after the applicant submits a completed application or requested supplemental information. Sets out provisions governing requests for supplemental information. Deems an application approved if the Department of Environmental Quality (DEQ) fails to act on an application for the development of an upland basin marina project within the 60-day review period. Sets out 10 criteria with which an upland basin marina must comply to qualify for permitting, including: (1) the upland basin marina is designed to accommodate ten or more vessels, including individual homeowner boat slips, boat lifts, or dry stack storage; (2) the waters contained in the upland basin marina meet the specified standards for dissolved oxygen content; (3) construction of the upland basin marina impacts or removes a total area of coastal wetlands that is no more than 5% of the total area of the proposed upland basin marina waters; (4) construction of the upland basin marina impacts or removes a total linear footage of coastal wetlands fringe that is no more than 10% of the total linear footage of existing coastal wetlands along the shoreline of the property or properties of the permit applicant; and (5) the upland basin marina has a 30-foot vegetated buffer along the post-project shoreline. Sets out provisions applicable when a Major Development Coastal Area Management Act permit application has been submitted for a project. Sets out provisions under which an applicant for an upland basin marina project is allowed to use innovative technology to maintain dissolved oxygen levels or to improve dissolved oxygen, including requiring financial assurance. Deems an upland basin marina project that satisfies the 10 criteria above to also satisfy other specified provisions, including the requirements for CAMA management objects and use standards of coastal wetlands areas of environmental concern (AEC) and estuarine and ocean system AEC. Allows, when data indicates material noncompliance with applicable water quality standards in the waters within the upland basin marina or adjacent waters within the vicinity of each entrance to the upland basin marina, DEQ to require the owner to bring the waters within the upland basin marina and adjacent waters into compliance with applicable water quality standards. Specifies that the statute does not obviate the need for an applicant to obtain all relevant federal permits. Makes conforming changes to GS 143-214.1A (water quality certification requirements for certain projects) applicable to applications for section 401 certification pending or submitted on or after the act becomes law.

Section 3

Amends GS 113A-103, which includes definitions for the Coastal Area Management Act, by defining man-made ditches as constructed, altered, or excavated features used to convey water, including but not limited to artificial ponds, culverts, canals, swales, storm channels, minor-drainage features, and roadside ditches (specifies that "altered" does not include the alteration of a natural shoreline, and "excavated" does not include submerged lands dredged for navigation). Amends GS 113A-113 by prohibiting the Coastal Area Management Commission from designating man-made ditches as areas of environmental concern. Makes conforming changes. Amends GS 113-229 by amending the definition of marshland as it is used in the statute (permits to dredge or fill in or about estuarine waters or state‑owned lakes) to exclude any areas contained within a man-made ditch.