Coastal Regulatory Reform.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 4
SENATE BILL 1001
Agriculture, Energy, and Environment Committee Substitute Adopted 6/17/26
Finance Committee Substitute Adopted 6/23/26
Fourth Edition Engrossed 6/30/26

Short Title: Coastal Regulatory Reform. (Public)
Sponsors:
Referred to:
May 4, 2026
*S1001-v-4*
A BILL TO BE ENTITLED 1
AN ACT TO MODIFY THE COASTAL AREA MANAGE MENT ACT APPLICATION 2
PROCESSING RULE TO C LARIFY ADJACENT LAND OWNER NOTICE 3
REQUIREMENTS, TO INCREASE THE MAXIMUM CAMA APPLICATION 4
PROCESSING FEE, TO AMEND UPLAND BASIN DISSOLVED OXYGEN AND 5
FINANCIAL ASSURANCE REQUIREMENTS, TO MAKE OTHER TECHNICAL 6
CORRECTIONS TO THE UPLAND BASIN PERMITTING STATUTE, AND TO 7
CLARIFY AGENCY AUTHORITY OVER THE COASTAL RESERVE. 8
The General Assembly of North Carolina enacts: 9
10
MODIFY COASTAL AREA MANAGEMENT ACT APPLI CATION PROCESSING 11
RULE TO CLARIFY ADJACENT LANDOWNER NOTICE REQUIREMENTS 12
SECTION 1.(a) Definitions. – For purposes of this section and its implementation, 13
"CAMA Application Processing Rule" means 15A NCAC 07J .0204 (Processing the 14
Application). 15
SECTION 1.(b) CAMA Application Processing Rule. – Until the effective date of 16
the revised permanent rule that the Coastal Resources Commission (Commission) is required to 17
adopt pursuant to subsection (d) of this section, the Commission shall implement the CAMA 18
Application Processing Rule as provided in subsection (c) of this section. 19
SECTION 1.(c) Implementation. – For both CAMA major and minor development 20
permit applications, the CAMA Application Processing Rule shall provide the following: 21
(1) Documentation showing that notice was sent by certified mail to an adjacent 22
riparian landowner at the tax address of record satisfies the notice 23
requirements of the CAMA Application Processing Rule if the applicant 24
provides proof that the adjacent riparian landowner received the notice. 25
(2) If the applicant cannot provide proof that the adjacent riparian landowner 26
received the notice, the permit application may proceed without proof of 27
receipt only if the applicant provides documentation showing that notice was 28
sent by certified mail, return receipt requested, at least 60 days before issuance 29
of the permit, to both (i) the adjacent riparian landowner's tax address of 30
record and (ii) the property address of the adjacent riparian property, if a 31
separate property address has been assigned and differs from the landowner's 32
tax address of record. 33
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 1001-Fourth Edition
(3) During the 60-day period following the date the notice was sent by certified 1
mail, the Department of Environmental Quality, the Division of Coastal 2
Management, or the local permit office r may continue to process the 3
application. If there is no proof of receipt, however, the permit shall not be 4
issued until the 60-day period has expired. The failure of an adjacent riparian 5
landowner to receive, claim, or respond to the certified mail notic e shall not 6
delay or prevent issuance of the permit after the 60-day period has expired. 7
(4) Nothing in this subsection is intended to limit or prohibit an applicant for a 8
minor development permit from using any other method of notice permitted 9
by applicable law or rule. 10
SECTION 1.(d) Additional Rulemaking Authority. – The Commission shall adopt 11
a rule to amend the CAMA Application Processing Rule consistent with subsection (c) of this 12
section. Notwithstanding G.S. 150B-19(4), the rule adopted by the Commission pursuant to this 13
section shall be substantively identical to the provisions of subsection (c) of this section. Rules 14
adopted pursuant to this section are not subject to Part 3 of Article 2A of Chapter 150B of the 15
General Statutes. Rules adopted pursu ant to this section shall become effective as provided in 16
G.S. 150B-21.3(b1), as though 10 or more written objections had been received as provided in 17
G.S. 150B-21.3(b2). 18
SECTION 1.(e) Sunset. – This section expires when permanent rules adopted as 19
required by subsection (d) of this section become effective. 20
21
INCREASE MAXIMUM CAMA FEE 22
SECTION 2. G.S. 113A-119.1 reads as rewritten: 23
"§ 113A-119.1. Permit fees. 24
(a) The Commission shall have the power to establish a graduated fee schedule for the 25
processing of applications for permits, renewals of permits, modifications of permits, or transfers 26
of permits issued pursuant to this Article. In determining the fee schedule, the Commission shall 27
consider the administrative and personnel costs incurred by the Depart ment for processing the 28
applications, related compliance activities, and the complexity of the development sought to be 29
undertaken for which a permit is required under this Article. The fee to be charged for processing 30
an application may not exceed five hundred sixty-three dollars ($563.00). five hundred sixty-four 31
dollars ($564.00). The total funds collected from fees authorized by the Commission pursuant to 32
this section in any fiscal year shall not exceed thirty-three and one-third percent (33 ⅓%) of the 33
total personnel and administrative costs incurred by the Department for permit processing and 34
compliance programs within the Division of Coastal Area Management. 35
(b) Fees collected under this section shall be applied to the costs of administering this 36
Article. 37
(c) Repealed by Session Laws 1991 (Regular Session, 1992), c. 1039, s. 4." 38
39
AMEND UPLAND BASIN DISSOLVED OXYGEN REQUIREMENTS 40
SECTION 3.(a) G.S. 113A-129.11 is amended by adding a new subdivision to read: 41
"(2a) Project baseline area. – An area defined as 50 feet plus or minus 5 feet from 42
the location of the proposed entrance to the proposed upland basin marina." 43
SECTION 3.(b) G.S. 113A-129.12(b)(2) reads as rewritten: 44
"(2) The waters contained in the upland basin marina have a dissolved oxygen 45
content equal to or greater than the dissolved oxygen content of the water 46
located 50 feet plus or minus 5 feet from the entrance to the upland basin 47
marina before development. within the project baseline area prior to the 48
development, as provided in this subdivision: 49
a. As part of the application, an applicant shall provide to the Division of 50
Water Resources and the Division of Coastal Management 51
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Senate Bill 1001-Fourth Edition Page 3
site-specific sampling data documenting pre-project dissolved oxygen 1
levels of the water located 50 feet plus or minus 5 feet from each 2
proposed entrance to the proposed upland basin marina. in the project 3
baseline area. Waters located within the upland basin marina shall be 4
classified the same as the waters in the immediate vicinity of any 5
entrance to the upland basin marina. 6
b. If the site -specific sampling data documents pre -project ambient 7
dissolved oxygen levels above 5.0 mg/L in the project baseline area, 8
the applicant may demonstrate compliance with dissolved oxygen 9
standards through site-specific modeling certified by a North Carolina 10
licensed professional engineer that the marina design provides 11
sufficient flushing to maintain dissolved oxy gen levels equal to the 12
greater of (i) the pre-project ambient levels or (ii) the level sufficient 13
to support aquatic habitat. A demonstration under this sub-subdivision 14
is only for pre-permitting design demonstration purposes and shall be 15
used only to determine whether aeration or other active int erventions 16
are required as a condition of permit issuance. 17
c. If the applicant provides a demonstration under sub-subdivision b. of 18
this subdivision , the Department shall not require additional 19
mechanical aeration or other active interventions intended to increase 20
or maintain dissolved oxygen as a condition of permit issuance unless 21
the Department provides written findings to the applicant within 90 22
days of the receipt of the demonstration that identify one or more 23
specific deficiencies in the demonstration. For purpo ses of this 24
sub-subdivision, a specific deficiency may include a deficiency in the 25
methodology, assumptions, data representativeness, model 26
calibration, consistency with applicable water qua lity standards, or 27
site-specific monitoring data relied upon in the demonstration. 28
d. Nothing in this subdivision shall be construed to modify, supersede, or 29
invalidate any certification issued under section 401 of the federal 30
Clean Water Act, 33 U.S.C. § 1341, any federal permit, any permit 31
issued under the Coastal Area Management Act, or any condition of 32
those approvals. The Department 's acceptance of a demonstration 33
under sub -subdivision b. of this subdivision shall not limit or 34
supersede the Department 's continuing authority to require 35
monitoring, adaptive management, mechanical aeration, or other 36
corrective measures as necessary to maintain compliance with 37
applicable water quality standards or with the conditions of any 38
applicable permit or certification." 39
40
AMEND UPLAND BASIN FINANCIAL ASSURANCE REQUIREMENTS 41
SECTION 4. G.S. 113A-129.12(b)(3) reads as rewritten: 42
"(3) The project has a bond or set -aside funds for the long -term operation and 43
maintenance of any technology required to meet or exc eed then-applicable 44
water quality standards. The applicant shall provide an estimate of annual 45
operation and maintenance costs, and the bond or set -aside funds shall be 46
equal to five years of the estimated annual operation and maintenance costs. 47
If the req uirements of this subdivision ar e met by a bond, t he bond shall 48
identify as the beneficiary of the State or the appropriate permitting agency. 49
If the requirements of this subdivision are met by set-aside funds, the applicant 50
shall establish a tru st at a bank, savings and loan institution, credit union, 51
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 1001-Fourth Edition
brokerage firm, or company registered under the Investment Company Act of 1
1940, 15 U.S.C. § 80a-1, et seq. , and designate the State or the appropriate 2
permitting agency as the beneficiary. The Department ma y specify the form 3
in which the bond or set -aside funds are provided, as well as a procedure for 4
transfer of the financial assurance if ownership of the upland basin marina 5
changes." 6
7
UPLAND BASIN TECHNICAL CORRECTIONS 8
SECTION 5.(a) G.S. 113A-129.12(b)(1) reads as rewritten: 9
"(1) The upland basin marina is designed to accommodate 10 or more more than 10
10 vessels, including individual homeowner boat slips, boat lifts, or dry stack 11
storage." 12
SECTION 5.(b) G.S. 113A-129.12(e)(3) reads as rewritten: 13
"(3) The policy goals stated in G.S. 113-102(b).G.S. 113A-102(b)." 14
15
COASTAL RESERVE AGENCY AUTHORITY 16
SECTION 6.5.(a) G.S. 113A-129.2 reads as rewritten: 17
"§ 113A-129.2. Coastal Reserve Program. 18
(a) There is hereby created a North Carolina Coastal Reserve System for the purpose of 19
acquiring, improving, and maintaining undeveloped coastal land and water areas in a natural 20
state. 21
(b) This system shall be established and administered by the Department of 22
Environmental Quality. In so doing the Department shall consult wi th and seek the ongoing 23
advice of Quality, subject to (i) use standards adopted for the system by the Coastal Resources 24
Commission and (ii) permits and orders issued by the Coastal Resources Commission. 25
Commission concerning activities allowed in the system. The Department may by rule define the 26
areas to be included in this system and set standards for its use. 27
(c) This system shall be established within the coastal area as defined by 28
G.S. 113A-103(2). 29
(d) All acquisitions or dispositions of property for lands within this system shall be in 30
accordance with the provisions of Chapter 146 of the General Statutes. 31
(e) All lands and waters within the system shall be used primarily for research and 32
education. Other public uses, such as hunting, fishing, navi gation, and recreation, shall be 33
allowed to the extent consistent with these primary uses. Improvements and alterations to the 34
lands shall be limited to those consistent with these uses. 35
(f) With respect to any component of the system that is also a dedicated nature preserve 36
pursuant to Part 42 of Article 2 of Chapter 143B of the General Statutes, the Department and the 37
Commission, in accordance with the authority granted to each pursuant to subsection ( b) of this 38
section, shall act as primary custodian to manage such components, in accordance with the 39
articles of dedication . The Secretary of Natural and Cultural Resources shall monitor these 40
preserves and shall retain authority to report alleged violations of the approved management plan 41
or the articles of dedication for such preserves , in which case the Secretary shall request the 42
Department of Administration to coordinate mediation with the primary custodian. If mediation 43
is unsuccessful in resolving the issue, the Department of Natural and Cultural Resour ces shall 44
have standing and a right of action in the Superior Court of Wake County, or the county in which 45
the component is located, to enforce the terms of any articles of dedication app licable to such 46
components." 47
SECTION 6.5.(b) This section becomes effective January 1, 2027. 48
49
EFFECTIVE DATE 50
General Assembly Of North Carolina Session 2025
Senate Bill 1001-Fourth Edition Page 5
SECTION 7. Except as otherwise provided, this act is effective when it becomes 1
law. 2