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SB 428

Relating to sales of units of land not lawfully established for conservation purposes.

2025 Regular Session Introduced by Lisa Fragala and 1 co-sponsor

NC SB 428 sets clearer rules for interbasin transfers: certs required for ≥2M gpd, major transfers defined as >30M gpd, and expands public notice and hearings.

In committee upon adjournment.
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Bill Summary · SB 428

SB 428 — "IBT Reforms" (Interbasin Transfer Reforms) — Summary

Status: Passed 1st Reading (introduced Feb 18, 2025) — referred to committee(s)

This bill revises North Carolina law governing transfers of surface water between river basins (interbasin transfers, or IBTs). Its primary aim is to clarify definitions and procedural requirements for when and how transfers may be authorized, increase public notice and hearing requirements, and restate thresholds that trigger Commission review and certification.

Purpose / intent

  • To modernize and clarify the statutory regime for surface‑water transfers between river basins.
  • To define key terms (e.g., “transfer,” “mainstem,” “river basin”), set clear thresholds for when a certificate from the Commission is required, and strengthen public engagement and environmental review processes.

Key provisions / changes

  • Definitions
    • Creates/recodifies definitions including “mainstem,” “river basin,” “public water system,” and “major transfer.”
    • “Major transfer” is defined as a new transfer > 30,000,000 gallons per day (gpd), or any modification increasing an existing transfer by more than 30,000,000 gpd.
    • “Surface water” defined as waters on the land surface not derived by pumping groundwater.
    • The statute clarifies that certain discharges (upstream of withdrawal or downstream of withdrawal) are not “transfers” for purposes of the Part.
  • Certificate / permitting thresholds (G.S. 143‑215.22L)
    • A certificate from the Commission is required to:
    • Initiate a transfer of 2,000,000 gpd or more (monthly daily average), with any single day not to exceed 3,000,000 gpd.
    • Increase an existing transfer by 25% or more above the average daily amount transferred in the year ending July 1, 1993, when the total reaches ≥ 2,000,000 gpd.
    • Increase an existing transfer above the amount previously approved by the Commission in pre‑1993 certificates.
    • Exception: facilities in existence or under construction on July 1, 1993, may transfer up to their full capacity without a new certificate.
  • Notice, public meetings, and environmental scope
    • Applicant (or Commission) must prepare a Notice of Intent that describes the proposed transfer and alternatives.
    • Within 90 days after filing the Notice of Intent, at least two public hearings must be held (applicant expense) and the Commission must solicit comment on the scope of environmental documents.
    • Statute requires at least one meeting upstream from the proposed withdrawal point, one downstream in the source basin, and at least one meeting in the receiving basin; written notice at least 30 days prior; minimum 30‑day written comment period after the last public meeting.
    • Specifies broad public notice requirements (publication in NC Register and newspapers in counties within affected basins and designated USGS hydrologic units).
  • Other statutory reorganizations and technical clarifications (recodifications of subdivisions).

Who is affected

  • Public water systems, municipal and county utilities, private water suppliers contemplating IBTs.
  • Applicants proposing new transfers or increases (including developers and regional water authorities).
  • Counties, cities, and communities located upstream and downstream in source and receiving basins.
  • Environmental regulators, local governments, and interested public and stakeholder groups who will have expanded opportunities for notice and comment.
  • Facilities grandfathered by the 1993 construction/existence rule are generally unaffected up to existing capacity.

Procedural / timeline aspects

  • Notice of Intent triggers a 90‑day window for required public hearings; 30‑day advance notice of hearings and a minimum 30‑day written comment window after the last hearing.
  • Certificate thresholds and exceptions define when Commission review/authorization is required.
  • The bill recodifies and amends statutory language; affected agencies (the Commission identified in statute) will follow the updated steps when petitions are filed.

Potential impacts / considerations

  • Increases transparency and public participation in IBT decisions via expanded meeting and notice requirements.
  • Maintains statutory thresholds that require Commission review for modest transfers (≥2 M gpd), which continues regulatory oversight for many municipal/regional transfers.
  • The major‑transfer definition (>30 M gpd) clarifies when large interbasin moves are treated as major projects.
  • Entities planning transfers should model their projected daily averages vs. the statutory thresholds and expect more formal environmental scoping and public engagement.

For implementation and agency procedure details, stakeholders should track committee referrals and agency rulemaking or guidance that interpret these statutory changes.

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

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