Part I.

Titles this part the “Cape Fear Water Resources Modernization and Regionalization Act of 2026.” Sets out legislative findings. States legislative purpose to ensure sustainable use and protection of the Cape Fear River Basin by pausing new surface water transfers during a comprehensive review.

Establishes a moratorium on new or increased interbasin surface water transfers from defined area of Cape Fear River Basin. Prohibits Environmental Management Commission (EMC) from issuing certificates authorizing such transfers. Creates exceptions for existing transfers and any emergency transfer authorized by the Secretary of Environmental Quality. Expires June 1, 2030.

Directs the North Carolina Collaboratory at the University of North Carolina at Chapel Hill (Collaboratory) to study the Cape Fear River Basin to determine its reliable yield of water supply and make recommendations for legislative changes to ensure sustainability of use. Sets out required contents of the study. Directs Collaboratory to consult with the Department of Environmental Quality, the EMC, the State Water Infrastructure Authority, the North Carolina League of Municipalities, and other relevant entities. Requires Collaboratory to report to the General Assembly no later than July 1, 2029.

Appropriates $1.5 million for 2026-27 from the General Fund to the Board of Governors of the University of North Carolina to be allocated to the Collaboratory for this study. Provides that the funds shall not revert at the end of the 2026-27 fiscal year and shall remain available until the end of the 2028-29 fiscal year.

Effective July 1, 2026.

Part II.

Adds new subdivision to GS 143-215.13(d) to permit the EMC, after a public hearing, to issue rules requiring any person who has an existing interbasin surface water transfer to reduce the transfer at a rate established by the rule.

Adds new subdivision to GS 143-215.22L(n) to require surface water transfer certificates issued by the EMC to include a provision stating that the EMC will amend the certificate to reduce the maximum amount of water authorized to be transferred if the EMC finds that a reduction is necessary to avoid harm to the source basin. Requires any person who was issued a certificate for an interbasin transfer on or before the act’s effective date to submit a request to the EMC to modify the certificate to include this new provision.

Part III.

Contains a severability clause. Except as otherwise provided, this act is effective when it becomes law.