Read the full stored bill text
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
SESSION LAW 2025-74
HOUSE BILL 850
*H850-v-5*
AN ACT TO IMPOSE A M ORATORIUM ON ISSUANC E OF CERTIFICATES FO R
CERTAIN SURFACE WATER TRANSFERS.
The General Assembly of North Carolina enacts:
SECTION 1. Findings. – The General Assembly finds that the State's laws regulating
surface water transfers, originally enacted more than 30 years ago, should be comprehensively
reviewed and evaluated for updates in light of the State's tremendous economic and popul ation
growth and the impact of natural disasters on riverine and water reservoir systems over that
period. In particular, the General Assembly finds that the approval of proposed transfers that are
significant in terms of their size compared to the overall hydrologic flow, current and future water
storage capacity, and cumulative water resources demands within the source river basin should
be temporarily paused while this review and evaluation is ongoing.
SECTION 2.(a) Study. – The North Carolina Collabora tory at the University of
North Carolina at Chapel Hill (Collaboratory) shall study the current statutory process for
approval of surface water transfers and provide any recommendations for legislation revising that
process that the Collaboratory finds is needed. As part of its study, the Collaboratory shall review
all of the following:
(1) The adequacy of the requirements for an environmental impact study set forth
in G.S. 143-215.22L(d) in ensuring that all impacts on upstream and
downstream users of wate r in the river basin are comprehensively and
equitably compiled and considered.
(2) Whether the information on which the Environmental Management
Commission (EMC) bases final certification decisions adequately takes into
account (i) issues of economic equity for lower income and lower population
communities in the source river basin that would experience potential impacts
on future economic growth due to the proposed transfer, (ii) negative impacts
of increases in water pollutant concentration caused by lar ge surface water
transfers on riverine ecosystems, and (iii) whether the denial of the surface
transfer request would result in a substantial increase in utility rates or
otherwise cause a financial hardship due to alternative infrastructure
construction costs for the requesting party.
(3) Changes to the process needed to reflect the impact of recent climate trends
that impact the range of water flows in the State's mainstem rivers during
periods of extreme heat, drought, or flooding events.
(4) How to buil d into the certification process incentives for parties requesting
surface water transfers to implement land use, infrastructure, and drought
resiliency policies that will reduce the size of transfers needed to meet future
water demands.
(5) Any other matters the Collaboratory deems relevant to its efforts to increase
the fairness and effectiveness of the surface water transfer certification
requirements.
Page 2 Session Law 2025-74 House Bill 850
SECTION 2.(b) Consultation. – In conducting the study required by subsection (a)
of this section, the Collaboratory will consult with the Army Corps of Engineers and other private
or public entities with management responsibilities over water impoundments with respect to the
impact of significant surface water transfers, as defined in Section 3 of this act , on those
impoundments continuing to meet their present levels and future projected needs for
hydroelectric power generation and water supply.
SECTION 2.(c) Report. – The Collaboratory shall report its findings, together with
any proposed legislation, to the 2027 General Assembly upon its convening.
SECTION 3. Moratorium on Certain Surface Water Transfer Certificates. – In order
to permit sufficient time for the General Assembly to complete the study described in Section 2
of this act, the EMC shall not issue a certificate authorizing a significant new surface water
transfer or a significant increase in an existing surface water transfer until the end of the
moratorium provided in this section. The moratorium in this section shall end March 1, 2027.
For purposes of this section, a proposed new or increased surface water transfer is significant if
it would result in a total increase in transfer between river basins, as defined in G.S. 143-215.22G,
in excess of 15,000,000 gallons per day.
SECTION 4. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 30th day of June, 2025.
s/ Phil Berger
President Pro Tempore of the Senate
s/ Donna McDowell White
Presiding Officer of the House of Representatives
s/ Josh Stein
Governor
Approved 10:03 a.m. this 9th day of July, 2025