Transportation Economic Development Funding.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 752

Short Title: Transportation Economic Development Funding. (Public)
Sponsors: Representatives Reives, Carney, Belk, and Cervania (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
April 3, 2025
*H752-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO FUND RAILR OAD AND AIRPORT DEVE LOPMENT AND TO FUND THE 2
PORT OF MOREHEAD CITY. 3
The General Assembly of North Carolina enacts: 4
5
GENERAL ASSEMBLY FINDINGS 6
SECTION 1. The General Assembly finds that: 7
(1) Transportation infrastructure is a foundational pillar for economic 8
development, enabling the efficient movement of goods, services, and people 9
across North Carolina, strengthening communities' abilities to connect and 10
grow. 11
(2) North Carolina's railroads serve as a critical component of the State's logistics 12
and supply chain infrastructure, necessary for freight movement, reducing 13
transportation costs, and providing a sustainable alternative to road 14
transportation, vital for supporting North Carolina's manufacturing and 15
agricultural industries. Upgrading our railroad infrastructure will reduce 16
transportation costs, improve freight efficiency, and will help alleviate road 17
congestion. 18
(3) Airports are integral anchors for regional economies, serving as key 19
transportation hu bs, direct and indirect job creators, catalysts for trade, 20
tourism, and business growth, and supports for key industries. They attract 21
infrastructure investment and enhance connectivity, which strengthens North 22
Carolina's communities and expands its access to global opportunities. 23
(4) Located near more than seventy percent (70%) of the U.S. industrial base and 24
easily accessed by Interstates 95 and 40 via U.S. Highways 70 and 17, the Port 25
of Morehead City fills an important role in our chemical products and bulk 26
shipping industries. Along with the Port of Wilmington, it contributes heavily 27
to the economy of North Carolina, helping generate sixteen billion one 28
hundred million dollars ($16,100,000,000) in economic output. The 29
construction of a roll -on-roll-off facility would greatly enhance the port's 30
efficiency and capacity, fostering job creation, strengthening supply chains, 31
and driving further economic growth across North Carolina. 32
(5) Investing in transportation infrastructure is essential for keeping North 33
Carolina competitive in both national and global markets, ensuring efficient 34
trade, business growth, and economic resilience. 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 752-First Edition
1
RAILROAD DEVELOPMENT FUND 2
SECTION 2.1. Article 2D of Chapter 136 of the General Statutes reads as rewritten: 3
"Article 2D. 4
"Railroad Revitalization.Development. 5
… 6
"§ 136-44.41. Special Economic Development Fund for Rail. 7
(a) Creation. – The Special Economic Development Fund for Rail (Rail Fund) is 8
established as a special fund within the General Fund to be administered by the Division of Rail 9
in accordance with this Article. 10
(b) Purpose. – The purpose of the Rail Fund is primarily for rail construction, rail 11
improvements, industry rail connections, railcar and locomotive acquisition , and railyard 12
construction. A portion of the Rail Fund may also be used for project preparation uses such as 13
preliminary engineering and due diligence. 14
(c) Source. – The Rail Fund shall consist of funds transferred to the Rail Fund and 15
revenue generated by Rail Fund investments and interest . Monies in the Rail Fund shall be 16
invested in accordance with G.S. 147-69.1, except that all interest or income received and 17
accruing on the monthly balance of the Rail Fund shall be paid into the Rail Fund. Unexpended 18
funds appropriated to the Rail Fund shall not revert. 19
(d) Uses. – Funds in the Rail Fund shall be used in accordance with the purpose of this 20
section. 21
(e) Cost-Sharing. – An allocation of funds under this section shall be in accordance with 22
the following requirements: 23
(1) No more than sixty percent (60%) of the annual allocations from the Rail Fund 24
shall be for the State match on federal grant applications. 25
(2) No more than thirty percent (30%) of the annual allocations from the Rail 26
Fund shall be for project preparation uses such as preliminary engineering and 27
due diligence. 28
(f) Criteria. – The Division shall establish procedures and criteria and adopt rules for 29
allocating funds from the Rail Fund in accordance with the purpose of this section and the 30
following criteria: 31
(1) The rail project is projected to increase capital investment, jobs, and revenue, 32
independently determined by the Department. 33
(2) Allocations shall be competitive and , after consultation with the Department 34
of Commerce, awarded t o proposals with the greatest projected economic 35
impact benefitting North Carolina. 36
(g) Administrative Costs. – The Department may use no more than three percent (3%) of 37
the Rail Fund for administrative costs. 38
(h) Report. – No later than March 1, 2026, the Division shall submit an initial report on 39
the implementation of this section to the Joint Legislative Commission on Governmental 40
Operations, the Joint Legislative Transportation Oversight Committee, and the Fiscal Research 41
Division and thereafter shall submit an annual report no later than December 1 of each year. The 42
report shall include the following information: use of funds, projects approved, and estimated 43
economic impact." 44
SECTION 2.2. There is appropriated from the General Fund to the Special Economic 45
Development Fund for Rail the sum of fifty million dollars ($50,000,000) in nonrecurring funds. 46
47
AIRPORT DEVELOPMENT FUND 48
SECTION 3.1. Chapter 63 of the General Statutes is amended by adding a new 49
Article to read: 50
"Article 7A. 51
General Assembly Of North Carolina Session 2025
House Bill 752-First Edition Page 3
"Airport Special Economic Development Fund. 1
"§ 63-76. Special Economic Development Fund for Airports. 2
(a) Creation. – The Special Economic Development Fund for Airports (Airports Fund) is 3
established as a special fund within the General Fund to be administered by the Division of 4
Aviation in accordance with this Article. 5
(b) Purpose. – The purpose of the Airports Fund is for airport capital improvements and 6
to incentivize and retain economically strategic flights. 7
(c) Source. – The Airports Fund shall consist of funds transferred to the Airports Fund 8
and revenue generated by Airports Fund investments and interest. Monies in the Airports Fund 9
shall be invested in accordance with G.S. 147-69.1, except that all interest or income received 10
and accruing on the monthly balance of the Airports Fund shall be paid into the Airports Fund. 11
Unexpended funds appropriated to the Airports Fund shall not revert. 12
(d) Uses. – Funds in the Airports Fund shall be used in accordance with the purpose of 13
this section. 14
(e) Limitations. – An allocation of funds under this section shall be in accordance with 15
the following limitations: 16
(1) No more than eighty percent (80%) of the annual allocations from the Airports 17
Fund shall be used for airport capital improvements, including those necessary 18
to attract or retain commercial aviation operators or manufacturers that require 19
the use of an airport. 20
(2) No more than seventeen percent (1 7%) of the annual allocations from the 21
Airports Fund shall be used to incentivize and retain economically strategic 22
flights. 23
(3) Up to twenty percent (20%) of the annual allocations from the Airports Fund 24
may be applied to airport safety improvements, t o the extent that the 25
Department determines that the l ack of airport safety improvements is 26
inhibiting economic growth. 27
(f) Cost-Sharing. – The total allocation of funds from the Airports Fund shall not exceed 28
fifty percent (50%) of the cost for airport improvements. 29
(g) Criteria. – The Division shall establish procedures and criteria and adopt rules for 30
allocating funds from the Airports Fund in accordance with the purpose of this section and the 31
following criteria: 32
(1) The airport project is projected to increase jobs, w ages, capital investment , 33
and tourism to North Carolina, with a particular emphasis on educational 34
tourism, as independently determined by the Department. 35
(2) Allocations shall be competitive and, after consultation with the Department 36
of Commerce, awarded to proposals with the greatest projected economic 37
impact benefitting North Carolina. 38
(h) Administrative Costs. – The Department may use no more than three percent (3%) of 39
the Airports Fund for administrative costs. 40
(i) Report. – No later than March 1, 202 6, the Division shall submit an initial report on 41
the implementation of this section to the Joint Legislative Commission on Governmental 42
Operations, the Joint Legislative Transportation Oversight Committee, and the Fiscal Research 43
Division and thereafter shall submit an annual report no later than December 1 of each year. The 44
report shall include the following information: use of funds, projects approved, and estimated 45
economic impact." 46
SECTION 3.2. There is appropriated from the General Fund to the Special Economic 47
Development Fund for Airports the sum of one hundred million dollars ($100,000,000) in 48
nonrecurring funds. 49
50
FUNDING FOR PORT OF MOREHEAD CITY ROLL-ON-ROLL-OFF FACILITY 51
General Assembly Of North Carolina Session 2025
Page 4 House Bill 752-First Edition
SECTION 4. There is appropriated from the General Fund to the Department of 1
Transportation the sum of thirty million dollars ($30,000,000) for the 2025 -2026 fiscal year to 2
be allocated to the North Carolina Ports Authority for the Authority to use for the construction 3
of a roll-on-roll-off facility for the Port of Morehead City. 4
5
EFFECTIVE DATE 6
SECTION 5. This act becomes effective July 1, 2025. 7