Upland Basin Permitting Reform.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 665

Short Title: Upland Basin Permitting Reform. (Public)
Sponsors: Senators Hanig and Sanderson (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S665-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO REFORM PERMITTING RELATED TO UPLAND BASINS. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. Article 7 of Chapter 113A of the General Statutes is amended by 4
adding a new Part to read: 5
"Part 5A. Upland Basins. 6
"§ 113A-129.10. Legislative findings; broad construction. 7
(a) The General Assembly finds that development of properly sited and planned upland 8
basins to accommodate vessels is preferable to open -water marinas for a number of reasons, 9
including all of the following: 10
(1) Increasing riparian property owner access to the State's public trust waters. 11
(2) Expanding the total area of the State's public trust waters. 12
(3) Reducing and confining potential storm debris. 13
(4) Reducing the need for additional onshore impervious surfaces associated with 14
parking. 15
(5) Promoting the use of innovative technologies. 16
(6) Promoting the collection of site -specific data designed to assure compliance 17
with applicable water quality standards. 18
(7) Maintaining or improving overall water quality when sited, designed, 19
constructed, and operated in conformance with the provisions of this Part. 20
(b) Accordingly, it is the intent of the General Assembly that this Part be broadly 21
construed to further the general purposes stated in this Part. 22
"§ 113A-129.11. Definitions. 23
As used in this Part, the following definitions apply: 24
(1) AEC or Area of Environmental Concern. – An area designated by the Coastal 25
Resources Commission pursuant to G.S. 113A-113. 26
(2) Boat slip. – Any structure adjoining, attached to, or part of a pier which has 27
the capacity to store one boat. 28
(3) Upland basin. – A marina constructed by excavating or dredging lands of 29
elevations above the current mean or ordinary high-water mark and designed 30
to accommodate more than ten vessels or boat slips . Upland basins shall be 31
considered a water dependent use for purposes of general use standards adopted 32
by the Coastal Resources Commission. 33
"§ 113A-129.12. Upland basin permitting and development. 34
(a) Unless the Director of the Divi sion of Water Resources makes a finding, based on 35
site-specific technical information , that the applicant cannot substantially comply with one or 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 665-First Edition
more of the criteria listed in subsection (b) of this section, the Division of Water Resources and 1
the Division of Coastal Management shall approve an application for the development of an 2
upland basin project, within 60 days after the applicant submits a completed application or 3
supplemental information requested by the Department to demonstrate substantial compliance 4
with all of the criteria set forth in subsection (b) of this section. The Department may make one 5
written request for any supplemental information necessary to make its finding within 30 days after 6
the applicant submits a complete application, and the permit may be conditioned upon measures 7
that are materially necessary to ensure that the applicant complies with all the criteria set forth in 8
subsection (b) of this section. When the Department requests supplemental information, the 60-day 9
review period restarts upon receipt of the supplemental information requested by the Department. 10
If the Department fails to act on an application for the development of an upland basin project 11
within the 60-day review period, the application shall be deemed approved. 12
(b) The criteria with which an upland basin shall comply to qualify for permitting pursuant 13
to subsection (a) of this section are all of the following: 14
(1) The upland basin is designed to accommodate ten or more vessels, including 15
individual homeowner boat slips, boat lifts, or dry stack storage. 16
(2) The waters contained in the upland basin have a dissolved oxygen content 17
equal to or greater than the dissolved oxygen content of the water located 50 18
feet plus or minus 5 feet from the entrance to the upland basin before 19
development. As part of the application, an applicant shall provi de to the 20
Division of Water Resources and the Division of Coastal Management 21
site-specific sampling data documenting pre -project dissolved oxygen levels 22
of the water located 50 feet plus or minus 5 feet from each proposed entrance 23
to the proposed upland basin. Waters located within the upland basin shall be 24
classified the same as the waters in the immediate vicinity of any entrance to 25
the upland basin. 26
(3) The project has a bond or set -aside funds for the long -term operation and 27
maintenance of any technology required t o meet or exceed then-applicable 28
water quality standards. The applicant shall provide an estimate of annual 29
operation and maintenance costs and the bond or set aside funds shall be equal 30
to five years of the estimated annual operation and maintenance costs. 31
(4) Construction of the upland basin impacts or removes a total area of coastal 32
wetlands that is no more than five percent (5%) of the total area of the 33
proposed upland basin waters. 34
(5) Construction of the upland basin impacts or removes a total linear footage of 35
coastal wetlands fringe that is no more than ten percent (10%) of the total 36
linear footage of existing coastal wetlands along the shoreline of the property 37
or properties of the permit applicant. 38
(6) The proposed upland basin project complies with specific use standards 39
adopted by the Coastal Resources Commission for navigation channels, canals 40
and boat basins . An upland basin project shall not be considered a "finger 41
canal" or "finger canal system" if the project does cot contain right angle 42
corners. 43
(7) The upland basin h as a 30-foot vegetated buffer or buffers along the 44
post-project shoreline , excluding any newly created inside shorelines , if 45
required by the Department. 46
(8) The proposed upland basin project complies with specific use standards 47
adopted by the Coastal Resources Commission for marinas, with the following 48
exceptions: 49
General Assembly Of North Carolina Session 2025
Senate Bill 665-First Edition Page 3
a. An upland basin may be sited within an area where shellfish harvesting 1
for human consumption is a significant existing use or adjacent to such 2
areas. 3
b. Upland basin design is no t required to comply with applicable 4
Environmental Management Commission requirements for 5
management of stormwater runoff. Stormwater management systems 6
may be located within the 30-foot buffer area. 7
(9) The project includes mitigation or has mitigation credits for wetland impacts 8
caused by excavation or construction of entrances, exits, and upland vessel 9
accommodation areas, where such entrances, exits, and upland vessel 10
accommodation areas exceed 125 linear feet of shoreline in total. 11
(10) The upland basin is sited and designed to avoid significant adverse impacts to 12
the productivity and biologic integrity of coastal wetlands, shellfish beds, 13
submerged aquatic vegetation, water quality, and spawning and primary 14
nursery areas. Substantial compliance with subdivisions (1) through ( 10) of 15
this subsection shall create a presumption that the project has avoided 16
significant adverse impacts to the productivity and biologic integrity of coastal 17
wetlands, non-coastal wetlands, shellfish beds, submerged aquatic vegetation, 18
water quality, spawning areas, and primary nursery area s and to have 19
complied with State water quality antidegradation requirements . Substantial 20
compliance constitutes appropriate avoidance of significant adverse 21
environmental impacts, including those identified in this Part. 22
(c) Once an upland basin developed and approved in accordance with this Part becomes 23
operational and continues to operate for at least 24 months, if the Director of the Division of 24
Water Resources determines that additional information is needed to assure long term 25
compliance with applicable water quality standards, the Division of Water Resources shall notify 26
the then-owner of that basin project to provide information materially necessary to address the 27
concerns raised by the Director. 28
(d) The submission of a Major Development Coastal Area Management Act (CAMA) 29
permit application for an upland basin project shall constitute a complete application for purposes 30
of water quality certification review by the Division of Water Resources. Unless the Director of 31
the Division of Water Resources objects in writing as provided in subsection (a) of this section, 32
no further information shall be required by the D epartment for purposes of evaluating whether 33
the upland basin project will substantially comply with water quality standards or CAMA use 34
standards referenced in this Part . Substantial compliance with the Major Development CAMA 35
permitting process shall also constitute compliance with all relevant provisions of Article 1 of 36
Chapter 113A of the General Statutes. 37
(e) The permit and any related authorizations or approvals issued for an upland basin 38
project pursuant to this Part shall be transferable. 39
(f) The Department shall allow an applicant for an upland basin project to use innovative 40
technology to maintain dissolved oxygen levels or improve dissolved oxygen above pre-project 41
ambient dissolved oxygen levels in the immediate vicinity of the entrance to the upland basin. If 42
the applicant proposes the use of innovative technology, the Department shall require the permit 43
holder to provide financial assurance, in the form of a bond or set -aside funds, for long -term 44
operation and maintenance of the innovative technology , in accordance with subdivision ( b)(3) 45
of this section . If the applicant provides a certification from a North Carolina licensed 46
professional engineer that the proposed innovative technology is capable of attai ning required 47
dissolved oxygen levels within the proposed upland basin, the Department shall not requ ire any 48
additional information. 49
(g) In the absence of site -specific technical concerns provided to the applicant by the 50
Director of the Division of Water Resources based on information provided during the permit 51
General Assembly Of North Carolina Session 2025
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review process, an upland basin project that satisfies the criteria provided in subsection (b) of 1
this section shall be deemed to satisfy all of the following: 2
(1) The requirements for a State water quality certification pursuant to Section 3
401 of the Clean Water Act (33 U.S.C. § 1341) and shall not require a written 4
concurrence from the Division of Water Resources, additional evaluation for 5
compliance with State water quality standards, or additional mitigation 6
requirements. 7
(2) CAMA management objectives and relevant use s tandards of the estuarine 8
and ocean system AECs. 9
(3) CAMA management objectives and use standards of the coastal wetlands 10
AEC. 11
(4) Water quality antidegradation standards as adopted by the Environmental 12
Management Commission. 13
(5) Wetland water quality standards, unless the United States Army Corps of 14
Engineers (Corps) or the United States Environmental Protection Agency 15
(EPA) provides site-specific information and comments to the contrary. In the 16
event of such comments from the Corps or EPA, the Department shall support 17
efforts by the applicant to satisfy any objections from the C orps or EPA 18
relative to the goals and benefits set forth in this Part. 19
(6) The policy goals stated in G.S. 113-102(b). 20
(g) Nothing in this section shall be construed to abrogate the Department's authority to 21
ensure long term compliance with applicable water quality standards in light of the goals and 22
requirements set forth in this Part. If data collected as part of the requirements of this Part, or 23
otherwise, indicate material noncompliance with applicable water quality standards in the waters 24
within the upland basin or adjacent waters within the vicinity of each entrance to the upland 25
basin, the Department may require the owner of the upland basin development at the time of the 26
noncompliance to bring the waters within the upland basin and adjacent waters into compliance 27
with applicable water quality standards, in light of the overall goals and policies set forth in this 28
Part to promote the construction and use of upland basins. 29
(h) Nothing in this section shall obviate the need for an applicant to obtain all relevant 30
federal permits required for the upland basin project." 31
SECTION 2. This act is effective when it becomes law. 32