A BILL TO BE ENTITLED
AN ACT to MODIFY the COASTAL AREA MANAGEMENT ACT APPLICATION PROCESSING RULE TO CLARIFY ADJACENT LANDOWNER NOTICE REQUIREMENTS, TO INCREASE THE MAXIMUM CAMA APPLICATION PROCESSING FEE, TO AMEND UPLAND BASIN DISSOLVED OXYGEN AND FINANCIAL ASSURANCE REQUIREMENTS, TO MAKE OTHER TECHNICAL CORRECTIONS TO THE UPLAND BASIN PERMITTING STATUTE, AND TO CLARIFY AGENCY AUTHORITY OVER THE COASTAL RESERVE.
The General Assembly of North Carolina enacts:

MODIFY COASTAL AREA MANAGEMENT ACT APPLICATION PROCESSING RULE TO CLARIFY ADJACENT LANDOWNER NOTICE REQUIREMENTS
SECTION 1.(a)  Definitions. – For purposes of this section and its implementation, "CAMA Application Processing Rule" means 15A NCAC 07J .0204 (Processing the Application).
SECTION 1.(b)  CAMA Application Processing Rule. – Until the effective date of the revised permanent rule that the Coastal Resources Commission (Commission) is required to adopt pursuant to subsection (d) of this section, the Commission shall implement the CAMA Application Processing Rule as provided in subsection (c) of this section.
SECTION 1.(c)  Implementation. – For both CAMA major and minor development permit applications, the CAMA Application Processing Rule shall provide the following:
(1)	Documentation showing that notice was sent by certified mail to an adjacent riparian landowner at the tax address of record satisfies the notice requirements of the CAMA Application Processing Rule if the applicant provides proof that the adjacent riparian landowner received the notice.
(2)	If the applicant cannot provide proof that the adjacent riparian landowner received the notice, the permit application may proceed without proof of receipt only if the applicant provides documentation showing that notice was sent by certified mail, return receipt requested, at least 60 days before issuance of the permit, to both (i) the adjacent riparian landowner's tax address of record and (ii) the property address of the adjacent riparian property, if a separate property address has been assigned and differs from the landowner's tax address of record.
(3)	During the 60‑day period following the date the notice was sent by certified mail, the Department of Environmental Quality, the Division of Coastal Management, or the local permit officer may continue to process the application. If there is no proof of receipt, however, the permit shall not be issued until the 60‑day period has expired. The failure of an adjacent riparian landowner to receive, claim, or respond to the certified mail notice shall not delay or prevent issuance of the permit after the 60‑day period has expired.
(4)	Nothing in this subsection is intended to limit or prohibit an applicant for a minor development permit from using any other method of notice permitted by applicable law or rule.
SECTION 1.(d)  Additional Rulemaking Authority. – The Commission shall adopt a rule to amend the CAMA Application Processing Rule consistent with subsection (c) of this section. Notwithstanding G.S. 150B‑19(4), the rule adopted by the Commission pursuant to this section shall be substantively identical to the provisions of subsection (c) of this section. Rules adopted pursuant to this section are not subject to Part 3 of Article 2A of Chapter 150B of the General Statutes. Rules adopted pursuant to this section shall become effective as provided in G.S. 150B‑21.3(b1), as though 10 or more written objections had been received as provided in G.S. 150B‑21.3(b2).
SECTION 1.(e)  Sunset. – This section expires when permanent rules adopted as required by subsection (d) of this section become effective.

INCREASE MAXIMUM CAMA FEE
SECTION 2.  G.S. 113A‑119.1 reads as rewritten:
"§ 113A‑119.1.  Permit fees.
(a)	The Commission shall have the power to establish a graduated fee schedule for the processing of applications for permits, renewals of permits, modifications of permits, or transfers of permits issued pursuant to this Article. In determining the fee schedule, the Commission shall consider the administrative and personnel costs incurred by the Department for processing the applications, related compliance activities, and the complexity of the development sought to be undertaken for which a permit is required under this Article. The fee to be charged for processing an application may not exceed five hundred sixty‑four dollars ($564.00). The total funds collected from fees authorized by the Commission pursuant to this section in any fiscal year shall not exceed thirty‑three and one‑third percent (33 ⅓%) of the total personnel and administrative costs incurred by the Department for permit processing and compliance programs within the Division of Coastal Area Management.
(b)	Fees collected under this section shall be applied to the costs of administering this Article.
(c)	Repealed by Session Laws 1991 (Regular Session, 1992), c. 1039, s. 4."

AMEND UPLAND BASIN DISSOLVED OXYGEN REQUIREMENTS
SECTION 3.(a)  G.S. 113A‑129.11 is amended by adding a new subdivision to read:
"(2a)	Project baseline area. – An area defined as 50 feet plus or minus 5 feet from the location of the proposed entrance to the proposed upland basin marina."
SECTION 3.(b)  G.S. 113A‑129.12(b)(2) reads as rewritten:
"(2)	The waters contained in the upland basin marina have a dissolved oxygen content equal to or greater than the dissolved oxygen content of the water located within the project baseline area prior to the development, as provided in this subdivision:
a.	As part of the application, an applicant shall provide to the Division of Water Resources and the Division of Coastal Management site‑specific sampling data documenting pre‑project dissolved oxygen levels of the water located in the project baseline area. Waters located within the upland basin marina shall be classified the same as the waters in the immediate vicinity of any entrance to the upland basin marina.
b.	If the site‑specific sampling data documents pre‑project ambient dissolved oxygen levels above 5.0 mg/L in the project baseline area, the applicant may demonstrate compliance with dissolved oxygen standards through site‑specific modeling certified by a North Carolina licensed professional engineer that the marina design provides sufficient flushing to maintain dissolved oxygen levels equal to the greater of (i) the pre‑project ambient levels or (ii) the level sufficient to support aquatic habitat. A demonstration under this sub‑subdivision is only for pre‑permitting design demonstration purposes and shall be used only to determine whether aeration or other active interventions are required as a condition of permit issuance.
c.	If the applicant provides a demonstration under sub‑subdivision b. of this subdivision, the Department shall not require additional mechanical aeration or other active interventions intended to increase or maintain dissolved oxygen as a condition of permit issuance unless the Department provides written findings to the applicant within 90 days of the receipt of the demonstration that identify one or more specific deficiencies in the demonstration. For purposes of this sub‑subdivision, a specific deficiency may include a deficiency in the methodology, assumptions, data representativeness, model calibration, consistency with applicable water quality standards, or site‑specific monitoring data relied upon in the demonstration.
d.	Nothing in this subdivision shall be construed to modify, supersede, or invalidate any certification issued under section 401 of the federal Clean Water Act, 33 U.S.C. § 1341, any federal permit, any permit issued under the Coastal Area Management Act, or any condition of those approvals. The Department's acceptance of a demonstration under sub‑subdivision b. of this subdivision shall not limit or supersede the Department's continuing authority to require monitoring, adaptive management, mechanical aeration, or other corrective measures as necessary to maintain compliance with applicable water quality standards or with the conditions of any applicable permit or certification."

AMEND UPLAND BASIN FINANCIAL ASSURANCE REQUIREMENTS
SECTION 4.  G.S. 113A‑129.12(b)(3) reads as rewritten:
"(3)	The project has a bond or set‑aside funds for the long‑term operation and maintenance of any technology required to meet or exceed then‑applicable water quality standards. The applicant shall provide an estimate of annual operation and maintenance costs, and the bond or set‑aside funds shall be equal to five years of the estimated annual operation and maintenance costs. If the requirements of this subdivision are met by a bond, the bond shall identify as the beneficiary of the State or the appropriate permitting agency. If the requirements of this subdivision are met by set‑aside funds, the applicant shall establish a trust at a bank, savings and loan institution, credit union, brokerage firm, or company registered under the Investment Company Act of 1940, 15 U.S.C. § 80a‑1, et seq., and designate the State or the appropriate permitting agency as the beneficiary. The Department may specify the form in which the bond or set‑aside funds are provided, as well as a procedure for transfer of the financial assurance if ownership of the upland basin marina changes."

UPLAND BASIN TECHNICAL CORRECTIONS
SECTION 5.(a)  G.S. 113A‑129.12(b)(1) reads as rewritten:
"(1)	The upland basin marina is designed to accommodate more than 10 vessels, including individual homeowner boat slips, boat lifts, or dry stack storage."
SECTION 5.(b)  G.S. 113A‑129.12(e)(3) reads as rewritten:
"(3)	The policy goals stated in G.S. 113A‑102(b)."

COASTAL RESERVE AGENCY AUTHORITY
SECTION 6.5.(a)  G.S. 113A‑129.2 reads as rewritten:
"§ 113A‑129.2.  Coastal Reserve Program.
(a)	There is hereby created a North Carolina Coastal Reserve System for the purpose of acquiring, improving, and maintaining undeveloped coastal land and water areas in a natural state.
(b)	This system shall be established and administered by the Department of Environmental Quality, subject to (i) use standards adopted for the system by the Coastal Resources Commission and (ii) permits and orders issued by the Coastal Resources Commission concerning activities allowed in the system. The Department may by rule define the areas to be included in this system and set standards for its use.
(c)	This system shall be established within the coastal area as defined by G.S. 113A‑103(2).
(d)	All acquisitions or dispositions of property for lands within this system shall be in accordance with the provisions of Chapter 146 of the General Statutes.
(e)	All lands and waters within the system shall be used primarily for research and education. Other public uses, such as hunting, fishing, navigation, and recreation, shall be allowed to the extent consistent with these primary uses. Improvements and alterations to the lands shall be limited to those consistent with these uses.
(f)	With respect to any component of the system that is also a dedicated nature preserve pursuant to Part 42 of Article 2 of Chapter 143B of the General Statutes, the Department and the Commission, in accordance with the authority granted to each pursuant to subsection (b) of this section, shall act as primary custodian to manage such components, in accordance with the articles of dedication. The Secretary of Natural and Cultural Resources shall monitor these preserves and shall retain authority to report alleged violations of the approved management plan or the articles of dedication for such preserves, in which case the Secretary shall request the Department of Administration to coordinate mediation with the primary custodian. If mediation is unsuccessful in resolving the issue, the Department of Natural and Cultural Resources shall have standing and a right of action in the Superior Court of Wake County, or the county in which the component is located, to enforce the terms of any articles of dedication applicable to such components."
SECTION 6.5.(b)  This section becomes effective January 1, 2027.

EFFECTIVE DATE
SECTION 7.  Except as otherwise provided, this act is effective when it becomes law.