Local providers must review private water system sales in public

A local government service provider must hold a public hearing and decide that a sale serves the public interest before selling a public water or sewer system to a private company. This applies to counties, cities, and the listed local water and sewer authorities and districts selling a system that serves the public. The provider must consider the system's condition and repair needs, available grants and loans, the buyer's ability and finances, expected rates and customer affordability, and alternatives to the sale. Sale proceeds must first pay system debt, if any, and required federal grant repayments. Any money left goes to the provider's general fund. This applies to contracts for water system sales made on or after July 2, 2026.

Local governments generally cannot require new or increased stormwater controls for existing paved areas; for redevelopment, added controls are limited to the net increase in paved area. These rules apply to local governments and property owners when developed sites are redeveloped. Federal law may require otherwise. The limits on added controls also apply to redevelopment that does not remove or reduce existing stormwater controls. The rules apply to stormwater rules and program changes adopted on or after July 2, 2026. Local governments must update their stormwater ordinances within 12 months.

A person installing or repairing an on-site wastewater system may hire an authorized evaluator or licensed engineer to verify the work; after written verification, the person may cover and use the system. This applies to on-site wastewater system applicants who use an authorized evaluator or licensed engineer for required checks or inspections. The written verification must confirm permit conditions were met and include an as-built drawing that meets local health department standards. The person must send the verification to the local health department within two business days. The text releases state and local agencies from liability for claims arising from or attributed to the installation. This applies to permits applied for on or after July 2, 2026.

The Environmental Management Commission must study whether wastewater planning rates match actual flows from commercial and industrial users, then report its findings. The study concerns wastewater design rates for commercial and industrial water users. The study must consider water savings from newer plumbing and appliances, measured water use and wastewater flows in North Carolina, and rates used by other states. The commission must report to the Environmental Review Commission by January 1, 2027.

Local governments may set higher rates for water and sewer customers outside their boundaries, with a public hearing required when total charges exceed inside rates by more than 25 percent. This applies to the listed local government water and sewer providers setting charges for customers outside their boundaries. The 25 percent comparison excludes tap fees and impact fees. Separate tap or impact fees are not prohibited. This applies to rates set on or after July 2, 2026.