Bill
HB 850
Temporarily pauses large interbasin water transfers to study and potentially update criteria for environmental, equity, and climate considerations.
Status and key dates
- Enacted / ratified by the North Carolina General Assembly and signed by the Governor: July 9, 2025 (Session Law 2025‑74).
- Effective: when it became law.
- Moratorium period: prohibits issuance of new certificates (or increases) described below until March 1, 2027.
- Study/report: University of North Carolina Collaboratory to report findings and any proposed legislation to the 2027 General Assembly upon convening.
Purpose
- Temporarily pause approval of large interbasin (surface water) transfers while the State evaluates whether its statutory certification process should be updated to reflect population/economic growth, changing climate conditions, reservoir management needs, and equity concerns.
Key provisions
1. Study by UNC Collaboratory
- Directs the North Carolina Collaboratory (UNC–Chapel Hill) to review the statutory process for approval of surface water transfers and recommend legislative changes as needed.
- Specific review elements include:
- Adequacy of environmental impact study requirements (G.S. 143‑215.22L(d)) for capturing upstream/downstream impacts.
- Whether the Environmental Management Commission’s (EMC) certification decisions adequately consider economic equity for lower‑income/smaller communities, pollutant concentration impacts on riverine ecosystems, and financial hardship from denial (e.g., higher utility rates or alternative infrastructure costs).
- How to account for recent climate trends that affect river flows during drought, heat, or flood events.
- Ways to incentivize requesters to pursue land‑use, infrastructure, and drought‑resiliency measures that reduce future transfer needs.
- Any other relevant matters the Collaboratory deems important.
- Consultation required with U.S. Army Corps of Engineers and other public/private impoundment managers regarding impacts on hydroelectric generation and water supply.
Who is affected
- Applicants seeking large interbasin transfers (municipal utilities, regional authorities, industrial users) — approvals for increases above 15 MGD are paused.
- The Environmental Management Commission (EMC) — temporarily restricted from issuing covered certificates.
- Source‑basin communities, downstream users, reservoir and hydroelectric operators, environmental stakeholders, and water planners — these groups are the focus of the study and potential future changes.
- UNC Collaboratory and state/federal agencies engaged in the review.
Potential impacts and implications
- Short term: delays for projects that require certification for large interbasin transfers (≥15 MGD), potentially affecting water supply planning and timelines for applicants.
- Medium/long term: study recommendations could change statutory criteria and procedures for transfer certification, strengthen environmental and equity assessments, require new mitigations or incentives, and alter how climate risks and reservoir operations are factored into decisions.
- Encourages alternatives (local conservation, reuse, resiliency investments) by pausing major transfers while the statutory framework is reassessed.
Report deadline and follow‑up
- The Collaboratory must submit findings and any proposed statutory language to the 2027 General Assembly when it convenes; the moratorium remains in effect through March 1, 2027 to allow time for study and legislative consideration.
Compiled from official sources — confirm details with the bill’s official record.
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