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SB 1001

Coastal Regulatory Reform.

2025-2026 Session Introduced by Michael Lazzara and 1 co-sponsor

Expands coastal management tools and requirements, including new DO demonstration options for upland basins, longer-term financial assurances, and broader uses of the Coastal Storm

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Bill Summary · SB 1001

Summary of SB 1001 (Coastal Regulatory Reform) – North Carolina, Session 2025

Purpose and intent

SB 1001 seeks to modify several aspects of coastal management regulation in North Carolina. The bill aims to:
- Clarify adjacent landowner notice requirements under the Coastal Area Management Act (CAMA) processing rules.
- Amend upland basin rules related to dissolved oxygen standards and financial assurance.
- Implement technical corrections to upland basin permitting provisions.
- Expand eligible uses of the Coastal Storm Damage Mitigation Fund and provide additional funding.

Key provisions

1) CAMA Application Processing Rule – Adjacent landowner notice

  • Defines “CAMA Application Processing Rule” and addresses notice to adjacent riparian landowners.
  • For both major and minor CAMA permit applications, documentation that certified mail notice was sent to adjacent riparian landowners at the tax address of record would be sufficient to meet notice requirements.
  • If an adjacent landowner does not receive or respond, that non-receipt would not delay permit processing.
  • Minor development applications may use other permitted notice methods as allowed by law or rule.
  • The Coastal Resources Commission must adopt a rule consistent with this approach. Such rulemaking would be exempt from certain standard rulemaking procedures and would become effective as provided in existing statute. The section includes a sunset: it expires when the permanent rule becomes effective.

2) Upland Basin – Dissolved Oxygen (DO) Requirements

  • Expands or clarifies the baseline area for DO considerations: 50 feet (+/- 5 feet) from the entrance to the upland basin marina.
  • Applicants must provide site-specific sampling data of DO levels within the project baseline area.
  • If pre-project ambient DO is at least 5.0 mg/L, the applicant may use site-specific, engineer-certified modeling to demonstrate that the marina design maintains DO at the higher of pre-project ambient levels or levels required to support aquatic habitat.
  • If such a demonstration is provided, the Department may refrain from requiring additional mechanical aeration or DO interventions, unless findings identify material errors within 90 days.

3) Upland Basin – Financial Assurance

  • Revisions to the bond/set-aside requirements: must cover long-term operation and maintenance costs of any treatment technology to meet standards.
  • Applicants must provide an estimated annual O&M cost; the bond or set-aside must equal five years of O&M costs.
  • Bond or set-aside funds must name the state or the appropriate permitting agency as beneficiary (or be placed in a trust with the state as beneficiary).
  • The Department may specify the form and transfer procedures if ownership of the upland basin marina changes.

4) Technical Corrections to Upland Basin Provisions

  • Minor textual corrections to definitions and policy goals to align with existing statutes (G.S. 113A-129.12 and related sections).

5) Coastal Storm Damage Mitigation Fund

  • Revisions to eligible uses and governance of the fund:
    • Fund may cover costs for beach nourishment, artificial dunes, and other mitigation/remediation projects.
    • Allows costs for permitting, construction, or repair of a terminal groin under specified conditions (sponsored by a local government unit and providing benefits to public lands near the groin).
    • Excludes certain costs (e.g., financial assurance costs, or components of inlet management plans) from the calculated project costs.
  • A nonrecurring appropriation of $800,000 from the General Fund to DEQ for FY 2026-2027 to support the Fund.

Who is affected

  • Coastal Resources Commission and the Department of Environmental Quality (DEQ) in administering CAMA rules, DO standards, and financial assurance requirements.
  • Prospective upland basin marina developers and owners, who would face changes to DO compliance demonstrations and longer-term financial assurances.
  • Local governments and stakeholders involved in coastal storm damage mitigation, beach nourishment, dunes projects, and terminal groin initiatives.
  • Adjacent riparian landowners, who are affected by clarified notice requirements (though the statute emphasizes that notice can be via certified mail and that delays due to non-receipt would be avoided).

Timing and effective date

  • The act becomes effective upon becoming law, with the CAMA notice rule changes tied to the permanent rule’s effectiveness.
  • The COASTAL STORM DAMAGE MITIGATION Fund provisions include a specific $800,000 nonrecurring appropriation for 2026-2027.

Compiled from official sources — confirm details with the bill’s official record.

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