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Bill Summary · HB 738

HB 738 — Restore Wetlands Protections (North Carolina)

Status: Passed 1st Reading
Introduced: November 12, 2024
Subject: Conservation; Environment; Water resources; Wetlands

Purpose / Intent

HB 738 restores and clarifies State-level protections for wetlands in North Carolina by repealing prior session-law provisions that limited State jurisdiction and by revising statutory definitions in G.S. 143‑212. The bill aims to re-establish regulatory authority over certain “isolated wetlands” and to ensure a broader set of wetland types are treated as “waters” subject to State oversight.

Key provisions

  • Repeals:
    • Section 54 of Session Law 2014‑120.
    • Section 4.18 of Session Law 2015‑286. (Both previously narrowed State regulatory authority over certain wetlands.)
  • Amends G.S. 143‑212 (Definitions) to:
    • Define “isolated wetlands” to include:
    • Wetlands that the U.S. Army Corps of Engineers had confirmed as isolated prior to June 22, 2020; and
    • Wetlands described as basin wetlands or bogs in the North Carolina Wetland Assessment User Manual (NCWFAT), version 4.1 (Oct. 2010).
    • Explicitly excludes man‑made isolated ditches or ponds constructed for stormwater management or other man‑made isolated ponds.
    • Define “waters” to explicitly include wetlands (so “waters” covers streams, rivers, swamps, lakes, tidal estuaries, wetlands, etc., whether surface or groundwater).
    • Define “wetland” using a hydrology/vegetation standard (areas inundated or saturated sufficiently and that support vegetation adapted to saturated soils). Wetlands do not include prior‑converted cropland (as defined in the National Food Security Act Manual, 5th Ed.).
    • Specify that wetlands classified as State “waters” include (i) waters of the United States (per 33 C.F.R. § 328.3 and 40 C.F.R. § 230.3) and (ii) isolated wetlands as defined above.

Who is affected

  • Developers, landowners, and local governments: more areas may be subject to State wetland permitting, mitigation, or restrictions.
  • Regulatory agencies: NC environmental regulators (e.g., Division of Water Resources / DEQ) will reassert permitting and enforcement responsibilities for the re‑included wetland types.
  • Agricultural interests: prior‑converted cropland remains excluded; man‑made stormwater ponds and similar features are excluded from the “isolated wetlands” definition.
  • Federal regulators (USACE): coordination continues where wetlands are also “waters of the United States.”

Procedural / timeline notes

  • Effective date: the act becomes effective when it becomes law (upon gubernatorial approval or otherwise).
  • Legislative history (selected): Filed Nov 12, 2024; first reading Mar 5, 2025; referred to Rules Committee Apr 3, 2025. (Status noted as Passed 1st Reading.)

Potential impacts (practical)

  • Regulatory: Reinstates State permitting and oversight for certain isolated wetlands that had been exempted under prior session laws — likely increasing the number of sites requiring wetland delineations, permits, mitigation, or conservation measures.
  • Development/Costs: Developers may face additional permitting timelines, compliance costs, or redesigns for projects affecting wetlands newly covered by the statute.
  • Environmental: Restored protections can improve water quality, flood attenuation, and habitat preservation by conserving wetlands previously excluded from State regulation.

This summary focuses on statutory definitional changes and the repeal of prior session law exceptions that narrowed State wetland jurisdiction. For project‑level or agency practice impacts, stakeholders should consult the Department of Environmental Quality (or relevant NC agencies) and legal counsel for application to specific parcels or proposals.

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

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