GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 1942

Short Title:  Env. Permitting Reform.	(Public)
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Sponsors: Representative B. Miller.

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Referred to:  Judiciary III.
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June 1, 1994

A BILL TO BE ENTITLED
AN ACT TO REFORM AND EXPEDITE THE PROCESS BY WHICH APPLICATIONS FOR PERMITS UNDER CERTAIN ENVIRONMENTAL REGULATORY PROGRAMS ARE CONSIDERED, TO REFORM AND EXPEDITE ADMINISTRATIVE AND JUDICIAL REVIEW OF PERMIT DECISIONS, AND TO INCREASE THE MAXIMUM AMOUNT OF THE FEE THAT THE ENVIRONMENTAL MANAGEMENT COMMISSION MAY ASSESS FOR PROCESSING AN APPLICATION FOR A PERMIT UNDER THE WATER QUALITY PROGRAM, AS RECOMMENDED BY THE ENVIRONMENTAL REVIEW COMMISSION.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 143-213 is amended by adding the following three new subdivisions to read:
"(13a)	'Person affected' means a person aggrieved, as defined in G.S. 150B-2, except that, if notice and opportunity for comment are provided by the Department, 'person affected' means a person aggrieved, as defined in G.S. 150B-2 who either:
a.	Submits to the Department in a timely manner, either individually or jointly with other persons, written comment containing a specific recommendation on a permit application or a draft permit.
b.	Presents oral comment at a public hearing on a permit application that makes a specific recommendation on the permit application or draft permit, if a public hearing is conducted by the Department.
c.	Makes a good cause showing that comment was not submitted or presented because there was no reason to have anticipated being adversely affected by the qualifying permit decision.
(13b)	'Qualifying permit' means a permit, other than a general permit or a temporary permit for:
a.	An outlet, point source, treatment works, or disposal system discharging to the surface waters of the State other than an individual permit for a stormwater discharge issued pursuant to 33 U.S.C. § 1342(p)(2).
b.	Recurring land application involving:
1.	Petroleum-contaminated soil;
2.	Residuals management involving a total application area of more than 1,000 acres; or
3.	An expansion of residuals management involving an increase in the application area of 500 acres or more.
(13c)	'Qualifying permit decision' means any of the following actions by the Department:
a.	The approval or denial of an application for a qualifying permit or to renew a qualifying permit.
b.	The approval or denial of an application for a modification of a qualifying permit, other than a minor modification."
Sec. 2.  G.S. 143-215.1 reads as rewritten:
"§ 143-215.1.  Control of sources of water pollution; permits required.
(a)	Activities for Which Permits Required. – No person shall do any of the following things or carry out any of the following activities until or unless such person shall have applied for and shall have received from the Department a permit therefor and shall have complied with such conditions, if any, as are prescribed by such permit:
(1)	Make any outlets or otherwise discharge any waste into the waters of the State;
(2)	Construct or operate any sewer system, treatment works, or disposal system within the State;
(3)	Alter, extend, or change the construction or method of operation of any sewer system, treatment works, or disposal system within the State;
(4)	Increase the quantity of waste discharged through any outlet or processed in any treatment works or disposal system to any extent which would result in any violation of the effluent standards or limitations established for any point source or which would adversely affect the condition of the receiving waters to the extent of violating any of the standards applicable to such water;
(5)	Change the nature of the waste discharged through any disposal system in any way which would exceed the effluent standards or limitations established for any point source or which would adversely affect the condition of the receiving waters in relation to any of the standards applicable to such waters;
(6)	Cause or permit any waste, directly or indirectly, to be discharged to or in any manner intermixed with the waters of the State in violation of the water quality standards applicable to the assigned classifications or in violation of any effluent standards or limitations established for any point source, unless allowed as a condition of any permit, special order or other appropriate instrument issued or entered into by the Department under the provisions of this Article;
(7)	Cause or permit any wastes for which pretreatment is required by pretreatment standards to be discharged, directly or indirectly, from a pretreatment facility to any disposal system or to alter, extend or change the construction or method of operation or increase the quantity or change the nature of the waste discharged from or processed in such facility;
(8)	Enter into a contract for the construction and installation of any outlet, sewer system, treatment works, pretreatment facility or disposal system or for the alteration or extension of any such facilities;
(9)	Dispose of sludge resulting from the operation of a treatment works, including the removal of in-place sewage sludge from one location and its deposit at another location, consistent with the requirement of the Resource Conservation and Recovery Act and regulations promulgated pursuant thereto;
(10)	Cause or permit any pollutant to enter into a defined managed area of the State's waters for the maintenance or production of harvestable freshwater, estuarine, or marine plants or animals;
(11)	Cause or permit discharges regulated under G.S. 143-214.7 which result in water pollution.
(a1)	In the event that both effluent standards or limitations and classifications and water quality standards are applicable to any point source or sources and to the waters to which they discharge, the more stringent among the standards established by the Commission shall be applicable and controlling.
(a2)	In connection with the above, no such permit shall be granted for the disposal of waste in waters classified as sources of public water supply where the head of the agency which administers the public water supply program pursuant to Article 10 of Chapter 130A of the General Statutes, after review of the plans and specifications for the proposed disposal facility, determines and advises the Department that such disposal is sufficiently close to the intake works or proposed intake works of a public water supply as to have an adverse effect on the public health.
(a3)	In any case where the Department denies a permit, it shall, within the time periods prescribed in this section, state in writing the specific reasons for the denial, including a description of the changes in the application, plans, or proposed activities that would be required in order that the applicant may obtain a permit, if a permit could be issued for the proposed activity under the provisions of all applicable federal and State laws, regulations, and rules.
	 (a4) The Department shall regulate wastewater systems under rules adopted by the Commission for Health Services pursuant to Article 11 of Chapter 130A of the General Statutes except as otherwise provided in this subsection.  No permit shall be required under this section for a wastewater system regulated under Article 11 of Chapter 130A of the General Statutes.  The following wastewater systems shall be regulated by the Department under rules adopted by the Commission:
(1)	Wastewater systems designed to discharge effluent to the land surface or surface waters.
(2)	Wastewater systems designed for groundwater remediation, groundwater injection, or landfill leachate collection and disposal.
(3)	Wastewater systems designed for the complete recycle or reuse of industrial process wastewater.
(b)	Power of the Department as to Permits. –
(1)	The Department shall act on all permits so as to prevent, so far as reasonably possible, considering relevant standards under State and federal laws, any significant increase in pollution of the waters of the State from any new or enlarged sources.  No permit shall be denied and no condition shall be attached to the permit, except when the Commission finds such denial or such conditions necessary to effectuate the purposes of this Article.
(2)	The Department shall also act on all permits so as to prevent violation of water quality standards due to the cumulative effects of permit decisions.  Cumulative effects are impacts attributable to the collective effects of a number of projects and include the effects of additional projects similar to the requested permit in areas available for development in the vicinity.  All permit decisions shall require that the practicable waste treatment and disposal alternative with the least adverse impact on the environment be utilized.
(3)	General permits may be issued under rules adopted pursuant to Chapter 150B of the General Statutes.  Such rules may provide that minor activities may occur under a general permit issued in accordance with conditions set out in such rules.  All persons covered under general permits shall be subject to all enforcement procedures and remedies applicable under this Article.
(4)	The Department shall have the power:
a.	To grant a permit with such conditions attached as the Department believes necessary to achieve the purposes of this Article.
b.	To require that an applicant satisfy the Department that the applicant, or any parent, subsidiary, or other affiliate of the applicant or parent:
1.	Is financially qualified to carry out the activity for which the permit is required under subsection (a) of this section; and
2.	Has substantially complied with the effluent standards and limitations and waste management treatment practices applicable to any activity in which the applicant has previously engaged, and has been in substantial compliance with other federal and state laws, regulations, and rules for the protection of the environment.
	As used in this subdivision, the words 'affiliate,' 'parent,' and 'subsidiary' have the same meaning as in 17 Code of Federal Regulations § 240.12b-2 (1 April 1990 Edition).
c.	To modify or revoke any permit upon not less than 60 days' written notice to any person affected.
d.	To designate certain classes of minor activities for which a general permit may be issued, after considering:
1.	The environmental impact of the activities;
2.	How often the activities are carried out;
3.	The need for individual permit oversight; and
4.	The need for public review and comment on individual permits.
e.	To designate certain classes of minor activities for which:
1.	Performance conditions may be established by rule; and
2.	Individual or general permits are not required.
(b1)	Repealed by Session Laws 1991, c. 156, s. 1, effective October 1, 1991.
(b2)	The Commission shall adopt rules regarding information required to be included in applications for qualifying permits and shall prepare and publish a checklist for applicants that lists all items of information required for a complete application.
(b3)	For the purpose of computing all dates and times with respect to an action on an application for a qualifying permit under this section, time shall be computed as provided in G.S. 1A-1, Rule 6.  Unless otherwise specifically provided, periods of time shall commence, or actions shall be deemed complete, when an application, notice, or comment is deposited enclosed in a first-class postpaid, properly addressed wrapper in a post office or official depository under the exclusive care and custody of the Postal Service.
(c)	Applications and Renewals for Qualifying Permits. –
(1)	a.	All applications for qualifying permits and for renewal of existing qualifying permits shall be in writing, and the Department may prescribe the form of such applications.  All applications shall be filed with the Commission at least 180 days in advance of the date on which it is desired to commence the discharge or land application of wastes or the date on which an existing qualifying permit expires, as the case may be.  Not more than 30 days before the date that an application is filed but prior to the date on which the application is filed, the applicant shall (i) publish notice of application at least once in a newspaper having general circulation within the county where the discharge, source, treatment works, disposal system, or land application is located; (ii) file the notice of application with the office of the manager of each incorporated city and county having jurisdiction over the location of the discharge, source, treatment works, disposal system, or land application; (iii) prominently post the notice of application at the public entrance to the facility for which the qualifying permit is sought.  The notice of application shall be continuously posted until the qualifying permit is issued or denied.  The notice of application shall state, at a minimum, the name of the applicant; the activity for which a qualifying permit is sought; the receiving body of water, if any; the location of the discharge, source, treatment works, disposal system, or land application; the name and telephone number of a contact person for the applicant; and the name and location of the office of the Department to which application will be made.  The Department shall act on a qualifying permit application as quickly as possible.  The Department may conduct any inquiry or investigation it considers necessary before acting on an application and may require an applicant to submit plans, specifications, and other information the Department considers necessary to evaluate the application.
b.	An applicant for a qualifying permit shall request each local government having jurisdiction over any part of the land on which the facility and its appurtenances are located or to be located to issue a determination as to whether the local government has in effect a zoning or subdivision ordinance applicable to the facility and whether the proposed activity would be consistent with the ordinance.  The request to the local government shall be accompanied by a copy of the permit application and shall be delivered to the clerk of the local government personally or by certified mail.  The determination shall be verified or supported by affidavit signed by the official designated by the local government to make the determination and, if the local government states that the activity is inconsistent with a zoning or subdivision ordinance, shall include a copy of the ordinance and the specific reasons for the determination of inconsistency.  A copy of any such determination shall be provided to the applicant when the determination is submitted to the Department.  The Department shall not act upon an application for a permit under this section until it has received a determination from each local government requested to make a determination by the applicant.  Unless the local government makes a subsequent determination of consistency with all ordinances cited in the determination or the proposed activity is determined by a court of competent jurisdiction to be consistent with the cited ordinances, the Department shall attach as a condition of the permit a requirement that the applicant, prior to commencing the activity for which the qualifying permit is sought, comply with all lawfully adopted local ordinances, including those cited in the determination, that apply to the activity.  If a local government fails to submit a determination to the Department as provided by this subsection within 15 days after receipt of the request, the Department may proceed to consider the application for a qualifying permit without regard to local zoning and subdivision ordinances.  This subsection shall not be construed to limit any opportunity a local government may have to comment on a permit application under any other law or rule.  This subsection shall not apply to any facility with respect to which local ordinances are subject to review under either G.S. 104E-6.2 or G.S. 130A-293.
(2)	a. 	
			As soon after receiving the application as possible, and in any event within 20 days of the receipt of an application under this subsection, the Department shall determine whether the application is complete by comparing the information provided in the application with the checklist prepared pursuant to subsection (b2) of this section.
1.	If the application is not complete as provided in this subdivision, the Department shall promptly return the application to the applicant, and in any event within 20 days of the receipt of the application, notify the applicant in writing of all deficiencies of the application, specifying the items that need to be included, modified, or supplemented in order to make the application complete in comparison with the checklist.  The applicant may provide the additional information requested by the Department and resubmit the application without further notice of its intent to apply for a permit or for the renewal of a permit within 90 days.  The time limits for the notice of intent to issue or deny the qualifying permit and for the issuance or denial of the qualifying permit shall exclude time prior to receipt by the Department of an application that is deemed to be complete.
2.	If the Department fails to notify the applicant that an application is not complete within the time period set forth in this paragraph, the application shall be deemed to be complete.
b.	Repealed by Session Laws 1987, c. 734.
c.	The Department shall refer each application for qualifying permit or renewal of an existing qualifying permit to its staff for written evaluation and proposed determination with regard to issuance or denial of the qualifying permit.  The Department shall give notice of intent to issue or deny the qualifying permit, along with any other data that the Department may determine appropriate, to the appropriate state, interstate, and federal agencies, to the applicant, to interested persons, and to the public.  The Department shall issue or deny the qualifying permit within the time limits set out in this subsection unless the Department and the applicant agree to stay the time for the issuance or denial of the permit.
1.	If no public hearing is held regarding the application for a qualifying permit or renewal of an existing qualifying permit, the Department shall issue or deny the qualifying permit within 180 days of the receipt of the complete application.
2.	If notice of a public hearing regarding the application for a qualifying permit or renewal of an existing qualifying permit is given at the same time as the Department issues a notice of its intent to issue or deny the qualifying permit, the Department shall issue or deny the qualifying permit within 225 days of the receipt of the complete application.
3.	If notice of a public hearing regarding the application for a qualifying permit or renewal of an existing qualifying permit is given after the Department has received public comment in response to a notice of intent to issue or deny the qualifying permit, the Department shall issue or deny the qualifying permit within 270 days of the receipt of the complete application.
4.	The Department may request additional information from the applicant if the Department determines during the review of the application that additional information is necessary in order for the Department to make a qualifying permit decision.  If the Department requests additional information with respect to an application that has been deemed complete, the date on which the Department must give notice of its intent to issue or deny the qualifying permit is extended by the time that elapses between the time the Department requests the additional information and the time the additional information is provided by the applicant.  An applicant from whom the Department requests additional information may either provide the information or may seek review as provided in G.S. 143-215.5.
(3)	a.	If any person desires a public hearing on any application for a qualifying permit or renewal of an existing qualifying permit, he shall so request in writing to the Department within 30 days following date of the notice of intent.  The Department shall consider all such requests for such hearings, and if the Department determines that there is a significant public interest in holding such hearing, at least 30 days' notice of such hearing shall be given to all persons to whom notice of intent was sent and to any other person requesting notice.  At least 30 days prior to the date of such hearings, the Department shall also cause a copy of the notice of the hearing to be published at least one time in a newspaper having general circulation in such county.  In any county in which there is more than one newspaper having general circulation in that county, the Department shall cause a copy of the notice of the hearing to be published in as many newspapers having general circulation in the county as the Department in its discretion determines may be necessary to assure that such notice is generally available throughout the county.  The Commission shall prescribe the form and content of the notice of the public hearing.
b.	The Commission shall prescribe the procedures to be followed in such hearings.  Detailed minutes of the hearing shall be kept and, along with any other written comments, exhibits, or documents presented at the hearing, shall be made a part of the record of decision on the application.
c.	Any person, including the applicant, who believes that any aspect of a proposed qualifying permit decision is incorrect must raise all reasonably ascertainable issues and submit all supporting arguments not later than the close of the public comment period.  The Department is not required to consider written or oral comment unless the comment is accompanied by the name and current mailing address of the person making the comment.  Other than federal or State laws, regulations, or rules, any supporting materials that are submitted shall be included in full and may not be incorporated by reference unless the supporting materials are a part of the administrative record in the same proceeding.
(4)	All qualifying permit decisions shall be in writing and shall include a concise written statement explaining, in light of timely comments received, why the Department issued or denied the qualifying permit.
(5)	Within five days of its decision to grant or deny any application for a qualifying permit, the Department shall give notice of its decision, along with any other data that the Department may require, to the appropriate state, interstate, and federal agencies, to the applicant, to interested persons, and to the public.
(6)	If the Department fails to act within any of the time periods set out in this subsection, the applicant may seek administrative review as provided in G.S. 143-215.5.  In addition, an applicant for renewal or modification of an existing qualifying permit may operate the facility for which the existing qualifying permit was issued without modification pending the renewal or modification of the existing qualifying permit so long as the waste discharged from the facility does not violate the effluent limitations set out in the existing qualifying permit.
(7)	No qualifying permit shall be issued or renewed for a term exceeding five years.
	(8)	The record of the decision on an application for a qualifying permit or renewal of an existing qualifying permit shall consist of:
a.	The complete application and any supporting materials requested by the Department and submitted by the applicant.
b.	The checklist issued to determine that the application is complete.
c.	All notices required under this section.
d.	The qualifying permit decision, including any draft permit on which the Department requested comment.
e.	All requests for a public hearing.
f.	If a public hearing is held on the application, a list of persons who presented oral comment at the public hearing.
g.	A list of persons who submitted written comment containing a specific recommendation regarding the application.
h.	All comment received, including oral and written comment submitted at the public hearing, if one is held, and written comment received at any time prior to the close of the comment period.
i.	An explanation by the Department of the qualifying permit decision along with any supporting material on which the Department relied.
j.	Any other material that the Commission by rule requires or allows.
(9)	The Department shall report on or before 1 October of each year to the Environmental Review Commission on its implementation of this section, including the time required to make qualifying permit decisions, any delays in the processing of permit applications, statistics on administrative and judicial review of actions by the Department and the Commission on permit applications, and any recommendations to improve the efficiency of the permitting process.
(c1)	Minor Modification of Permits. – The Commission shall adopt rules providing for minor modification of a permit required by this section in order to correct clerical mistakes or similar errors arising from oversight or omission, to change monitoring or reporting requirements, to change compliance schedules not in excess of 120 days, to change construction schedules, to delete a point source outlet, to reflect a name change or change in ownership of a facility for which a permit has been issued when no other change in the permit is indicated, to incorporate pretreatment program or other program requirements, or to make similar unsubstantial changes that do not result in an increase in the discharge of waste.  An applicant for a minor modification to reflect a change in ownership shall comply with the requirements relating to financial qualification and compliance history under subsection (b) of this section.  An application for a minor modification of a permit is not subject to the notice and comment requirements of this section.  If the Department has not acted on an application for a minor modification within 30 days after receipt of all required information, the permit shall be deemed modified and issued as requested in the application.
(c2)	Expedited process of certified applications for permits. – The Commission may adopt rules that provide for the expedited processing of an application that is certified by relevant licensed professionals to conform to design standards or other criteria specified by the Commission.
(d)	Applications and Renewals for Permits Other Than Qualifying Permits.  –All applications for new permits and for renewals of existing permits and all permits or renewals and decisions denying any application for permit or renewal shall be in writing.  The Department shall act on a permit application as quickly as possible.  The Department may conduct any inquiry or investigation it considers necessary before acting on an application and may require an applicant to submit plans, specifications, and other information the Department considers necessary to evaluate the application.  If the Department fails to act on an application for a permit, including a renewal of a permit, within 90 days after the applicant submits all information required by the Department, the application is considered to be approved.  Permits and renewals issued in approving such facilities pursuant to this subsection shall be effective until the date specified therein or until rescinded unless modified or revoked by the Department.  Local governmental units to whom pretreatment program authority has been delegated shall establish, maintain, and provide to the public, upon written request, a list of pretreatment applications received.
(d1)	Within 90 days after the issuance of a qualifying permit or after the receipt from the permittee of the construction plans for the facility for which the qualifying permit is issued, whichever is later, the Department shall determine whether the construction plans are approved and, if the plans are approved, shall issue authorization for the permittee to begin construction.  If the construction plans are not approved, the Department shall promptly return the construction plans to the applicant with a detailed explanation of the deficiencies of the plans, specifying the items that need to be modified or supplemented in order to make the plans acceptable.  A request for administrative review of an action by the Department on an application for a qualifying permit or renewal of an existing qualifying permit shall not affect the issuance of an authorization for the permittee to begin construction unless the effective date of the permits stayed by an order of an administrative law judge or a judge of the General Court of Justice.
(d2)	(1)	An applicant for a permit under subsections (c) or (d) of this section to dispose of petroleum contaminated soil by land application shall give written notice that he intends to apply for such a permit to each city and county government having jurisdiction over any part of the land on which disposal is proposed to occur.  The Department shall not accept such a permit application unless it is accompanied by a copy of the notice and evidence that the notice was sent to each such government by certified mail, return receipt requested.  The Department may consider, in determining whether to issue the permit, the comments submitted by local governments.
	(2)	Each applicant under subsections (c) or (d) for a permit or renewal of an existing permit for the operation of a treatment works for a private multi-family or single family residential development, in which the owners of individual residential units are required to organize as a lawfully constituted and incorporated homeowners' association of a subdivision, condominium, planned unit development, or townhouse complex, shall be required to enter into an operational agreement with the Department as a condition of any such permit granted.  The agreement shall address, as necessary, construction, operation, maintenance, assurance of financial solvency, transfers of ownership and abandonment of the plant, systems, or works, and shall be modified as necessary to reflect any changed condition at the treatment plant or in the development.  Where the Department finds appropriate, it may require any other private residential subdivision, condominium, planned unit development or townhouse complex which is served by a private treatment works and does not have a lawfully constituted and incorporated homeowners' association, and for which an applicant applies for a permit or the renewal thereof under subsections (c) or (d), to incorporate as a lawfully constituted homeowners' association, and after such incorporation, to enter into an operational agreement with the Department and the applicant as a condition of any permit granted under subsections (c) or (d).  The local government unit or units having jurisdiction over the development shall receive notice of the application within an established comment period and prior to final decision.
(e)	Notice and Review. –G.S. 143-215.5 governs public notice of a permit decision and administrative and judicial review of a permit decision.
(f)	Local Permit Programs for Sewer Extension. – Municipalities, counties, local boards or commissions, water and sewer authorities, or groups of municipalities and counties may establish and administer within their utility service areas their own general permit programs in lieu of State permit required in G.S. 143-215.1(a)(2), (3), and (8) above, for construction, operation, alteration, extension, change of proposed or existing sewer system, subject to the prior certification of the Commission.  For purposes of this subsection, the service area of a municipality shall include only that area within the corporate limits of the municipality and that area outside a municipality in its extraterritorial jurisdiction where sewer service is already being provided by the municipality to the permit applicant or connection to the municipal sewer system is immediately available to the applicant; the service areas of counties and the other entities or groups shall include only those areas where sewer service is already being provided to the applicant by the permitting authority or connection to the permitting authority's system is immediately available.  No later than the 180th day after the receipt of a program and statement submitted by any local government, commission, authority, or board the Commission shall certify any local program that:
(1)	Provides by ordinance or local law for requirements compatible with those imposed by this Part and the rules implementing this Part;
(2)	Provides that the Department receives notice and a copy of each application for a permit and that it receives copies of approved permits and plans upon request by the Commission;
(3)	Provides that plans and specifications for all construction, extensions, alterations, and changes be prepared by or under the direct supervision of an engineer licensed to practice in this State;
(4)	Provides for the adequate enforcement of the program requirements by appropriate administrative and judicial process;
(5)	Provides for the adequate administrative organization, engineering staff, financial and other resources necessary to effectively carry out its plan review program;
(6)	Provides that the system is capable of interconnection at an appropriate time with an expanding municipal, county, or regional system;
(7)	Provides for the adequate arrangement for the continued operation, service, and maintenance of the sewer system; and
(8)	Is approved by the Commission as adequate to meet the requirements of this Part and the rules implementing this Part.
The Commission may deny, suspend, or revoke certification of a local program upon a finding that a violation of the provisions in subsection (f)	of this section has occurred.  A denial, suspension, or revocation of a certification of a local program shall be made only after notice and a public hearing.  If the failure of a local program to carry out this subsection creates an imminent hazard, the Commission may summarily revoke the certification of the local program.  Chapter 150B of the General Statutes does not apply to proceedings under this subsection.
Notwithstanding any other provision of this subsection, if the Commission determines that a sewer system, treatment works, or disposal system is operating in violation of the provisions of this Article and that the appropriate local authorities have not acted to enforce those provisions, the Commission may, after written notice to the appropriate local government, take enforcement action in accordance with the provisions of this Article.
(g)	Any person who is required to hold a permit under this section shall submit to the Department a written description of his current and projected plans to reduce the discharge of waste and pollutants under such permit by source reduction or recycling.  The written description shall accompany the payment of the annual permit fee.  The written description shall also accompany any application for a new permit, or for modification of an existing permit, under this section.  The written description required by this subsection shall not be considered part of a permit application and shall not serve as the basis for the denial of a permit or permit modification."
Sec. 3.  G.S. 143-215.2(b) reads as rewritten:
"(b)	Review. – G.S. 143-215.5 governs administrative and judicial review of an order issued under this section."
Sec. 4.  G.S. 143-215.4(b) reads as rewritten:
"(b)	Procedures for Public Input. –
(1)	The Commission or Department may, on its own motion or when required by federal law, request public comments on or hold public hearings on matters within the scope of its authority under this Article or Articles 21A or 21B of this Chapter.  Before making a qualifying permit decision, the Department shall consider all relevant oral comment presented at any public hearing conducted by the Department and all relevant written comment submitted in a timely manner.  Written comment is submitted in a timely manner if it is postmarked prior to the expiration of the comment period stated in the newspaper notice or during any period that the Department holds the application or special order open for receipt of additional information from the applicant.
(2)	To request public comments on a matter, the Commission or Department shall notify appropriate agencies of the opportunity to submit written comments to the Commission or Department on the matter and shall publish a notice in a newspaper having general circulation in the affected area, stating the matter under consideration by the Commission or Department and informing the public of its opportunity to submit written comments to the Commission or Department on the matter.  A public comment period shall extend for at least 30 days after the notice is published.
(3)	To hold a public hearing on a matter, the Commission or Department shall notify the applicant or permit holder by first class mail and shall publish a notice in a newspaper having general circulation in the affected area, stating the matter under consideration by the Commission or Department and the time, date, and place of a public hearing to be held on the matter.  A public hearing shall be held no sooner than 20 days after the notice is published.  The proceedings at a public hearing held under this subsection shall be recorded.  Upon payment of a fee established by the Commission, any person may obtain a copy of the record of the public hearing.  After a public hearing, the Commission or Department shall accept written comments for the time period prescribed by the Commission or Department.
(4)	This subsection does not apply to rule-making proceedings, contested case hearings, or the issuance of permits required under Title V.  The Commission shall establish procedures for public hearings, public notice, and public comment respecting permits required by Title V as provided by G.S. 143-215.111(4)."
Sec. 5.  G.S. 143-215.5 reads as rewritten:
"§ 143-215.5.  Public notice of qualifying permit decisions; administrative and judicial review of decisions.
(a)	Public Notice. – The Department shall give notice of a qualifying permit decision by publishing the notice in a newspaper having general circulation in the area affected by the decision and by either publishing the notice in the North Carolina Register or mailing a copy of the notice to each person who submitted comment on the application for a qualifying permit in a timely manner.  If the Department has not given notice within 20 days after it makes the decision, the applicant may give the required notice by publishing the notice in a newspaper having general circulation in the area affected by the decision and by submitting the notice for publication in the North Carolina Register.  At a minimum, the notice shall:
(1)	Identify the application, including the name of the applicant and the date the application was submitted.
(2)	Clearly identify the location of the activity, including each county in which the activity is located.
(3)	State the decision on the application.
(4)	State the last date on which a contested case petition may be filed in the Office of Administrative Hearings.
(5)	State the name and address of the agency that made the decision.
(b)	Effect. – Notice of a qualifying permit decision given in accordance with subsection (a) of this section satisfies G.S. 150B-23(f).
(c)	Notice by Mail. – In addition to notice as provided in subsection (a) of this section, the Department shall, to the extent practicable, mail a copy of the notice described in subsection (a) of this section to persons who provide the Department with a self-addressed envelope with sufficient postage affixed.
(d)	Applicants and Permit Holders. – A permit applicant or permit holder may contest a qualifying permit decision by filing a petition for a contested case under G.S. 150B-23 within 30 days after notice of the decision is given as provided in subsection (a) of this section.  A permit applicant or permit holder may contest any other permit decision by filing a petition for a contested case under G.S. 150B-23 within 30 days after receiving written notice of the decision.
(e)	Persons Affected. – A person affected may contest a qualifying permit decision, but may not contest any other permit decision, by filing a petition for a contested case under G.S. 150B-23 within 30 days after notice of the decision is given as provided in subsection (a) of this section.  When a person affected contests a qualifying permit decision, the assigned administrative law judge shall by order make the permit holder a party to the contested case proceeding.  In the contested case, the person affected may not contest an issue that was not raised, either by the person affected or another person, with the Department when the contested decision was pending before the Department unless the administrative law judge assigned to the contested case makes an exception for good cause shown.  The assigned administrative law judge may allow a person affected to be heard on a new issue only if the administrative law judge finds that the issue could not reasonably have been raised while the contested decision was pending before the Commission.  If the contested case concerns the approval of an application to renew a permit, the person affected may contest only a difference between the renewed permit and the former permit unless there is substantial evidence in the administrative record that the conditions set out in the former permit allow significant environmental damage.  If a person is denied administrative review of any aspect of a qualifying permit decision under this subsection, and the person has submitted oral or written comment within the comment period on the aspect of the qualifying permit for which the person is denied administrative review, the right of judicial review shall be fully preserved.
(f)	Other Persons. – A person aggrieved by a permit decision who is not a permit applicant, a permit holder, or a person affected may not contest the decision by filing a petition for a contested case but may petition to intervene in any contested case on the decision.
(g)	Stay. – If a permit holder or a person affected files a petition for a contested case proceeding to challenge a qualifying permit decision, the permit holder or person affected may seek a stay of the qualifying permit decision under G.S. 1A-1, Rule 65.  Qualifying permit decisions shall be effective 10 days after the qualifying permit is issued or denied, unless stayed under this provision or another provision of State or federal law.
(h)	Procedure in Contested Case. –
(1)	In any contested case proceeding regarding a qualifying permit decision, the procedure shall be as provided in Article 3 of Chapter 150B of the General Statutes, except that no formal evidentiary hearing shall be held and the recommended decision shall be made on the basis of the Department's record, along with any exceptions to such record and arguments concerning such record raised by parties to the contested case, unless:
a.	A party, in its initial filing with the Office of Administrative Hearings, requests a formal evidentiary hearing; and
b.	The administrative law judge assigned to the case determines, in a timely manner, that the contested case presents genuine issues of material fact under G.S. 1A-1, Rule 56.
(2)	In any contested case proceeding regarding a qualifying permit decision and unless altered by agreement of all the parties:
a.	A petition for contested case must be filed with the Office of Administrative Hearings within 30 days after notice of a qualifying permit decision is given.
b.	The petition shall include, at a minimum:
1.	An indication that the petitioner seeks review of a qualifying permit decision.
2.	A statement of the reasons supporting the request for review and the permit conditions or other aspects of the qualifying permit decision being challenged.
3.	If the petitioner seeks a formal evidentiary hearing, including sworn testimony and cross-examination of witnesses to supplement the administrative record, a statement of the disputed issues of material fact on which the petitioner seeks a formal evidentiary hearing.
c.	The Office of Administrative Hearings shall issue a notice of contested case and assignment and an order for a prehearing statement within five days after the filing of a petition for administrative review of a qualifying permit decision.  The Department shall transmit the official administrative record within 10 days after the Office of Administrative Hearings issues the notice of contested case and assignment for a qualifying permit decision.
d.	Each party shall file a prehearing statement within 30 days after the order for a prehearing statement is issued.
e.	A motion to intervene shall be filed within 30 days after the order for a prehearing statement is issued.
f.	A determination that a formal evidentiary hearing will be held must be made within 75 days after the petition for contested case is filed.
g.	If a formal evidentiary hearing is determined to be necessary and properly requested, such hearing shall be concluded and a recommended decision proposed and served within 150 days after the petition for contested case is filed.
h.	If no formal evidentiary hearing is determined to be necessary or properly requested, a recommended decision shall be prepared and served within 120 days after the petition for contested case is filed.
(3)	Pursuant to Article 3 of Chapter 150B of the General Statutes, the assigned administrative law judge may:
a.	Approve, reverse, or modify the decision of the Department to grant or deny the qualifying permit.
b.	Issue an interlocutory order requiring the Department or Commission to act pursuant to any of the time limits set forth in G.S. 143-215.1(c).
(4)	If a recommended decision is not prepared and served in the time provided in this subsection, the petitioner may elect to treat the petition as denied and may request a final agency decision based solely on the original qualifying permit decision and any additional materials filed with the Office of Administrative Hearings concerning such decision.
(i)	Final Decision. – The Commission shall make the final decision in a contested case under this section.  Notwithstanding G.S. 150B-44, if the Commission fails to make a final decision within 45 days of its receipt of the recommended decision and record from the Office of Administrative Hearings, the recommended decision becomes the final decision and any party to the proceedings before the Office of Administrative Hearings may seek judicial review as provided in subsection (j) of this section.  If a permit applicant, permit holder, or person affected does not file a petition for a contested case within the required time, the decision by the Commission is final and is not subject to administrative or judicial review.
(j)	Judicial Review. – Except as provided in this subsection,  Article 4 of Chapter 150B of the General Statutes governs judicial review of a final agency decision or order of the Secretary in a contested case and of a final decision for which the administrative remedy of a contested case is not available.  Any person who seeks judicial review of a final decision in a contested case must file a petition for review within 30 days after the parties to the case are served with a written copy of the decision or within 30 days after the recommended decision becomes a final decision as a result of the failure of the Commission to make a final decision.  Any person aggrieved by a final decision for which the administrative remedy of a contested case is not available may obtain judicial review of the decision by filing a petition for review within 30 days after the final decision is issued.  A person aggrieved by a final decision for which the administrative remedy of a contested case is not available may obtain judicial review of the decision by filing a petition in accordance with Article 4 of Chapter 150B of the General Statutes.  A petition for judicial review of a qualifying permit decision shall be dismissed unless the petitioner is either:
(1)	A person affected who either filed a contested case petition on the decision or was a party to a contested case on the decision.
(2)	A person aggrieved only as a result of the final decision in a contested case on the decision.
(k)	Bond on Appeal. – If a case that concerns an action of the Secretary or of the Commission under this Article or Article 21A or 21B of this Chapter is appealed from the superior court to the Appellate Division of the General Court of Justice, no bond shall be required of the Secretary or of the Commission.
(l)	Judicial Review of Title V Permit Decisions. –  A person aggrieved, as defined in G.S. 150B-2, other than the applicant or permittee, who seeks judicial review of a final agency decision on an application for a permit required under Title V shall file a petition for judicial review under G.S. 150B-45 within 30 days after public notice of the final agency decision is given as provided in rules adopted by the Commission pursuant to G.S. 143-215.4(b)(3).  A permit applicant, permittee, or other person aggrieved who seeks judicial review of a failure of the Commission to act within the time specified in rules adopted pursuant to G.S. 143-215.108(d)(2) on an application for a permit required by Title V or G.S. 143-215.108 shall file a petition for judicial review under G.S. 150B-45 within 30 days after the expiration of the time specified for action on the application."
Sec. 6.  G.S. 143-215.1(b)(4)c. reads as rewritten:
"c.	To modify or revoke any permit upon not less than 60 days' written notice to the permit holder."
Sec. 7.  G.S. 143-215.15(c) reads as rewritten:
"(c)	In all cases in which sufficient evidence of a nonconsumptive use is not presented, the Department shall notify each person required by this Part to secure a permit of the proposed action concerning the permit, and shall transmit with the notice a copy of any permit it proposes to issue to those persons.  The permit will become final unless a request for a hearing is made within 15 days from the date of service of the notice. If sufficient evidence of a nonconsumptive use is not presented, the Commission may: (i) grant the permit with those conditions the Commission deems necessary to implement the rules adopted pursuant to G.S. 143-215.14; (ii) grant any temporary permit for such period of time as the Commission shall specify where conditions make a temporary permit essential, even though the action allowed by the permit may not be consistent with the Commission's rules applicable to the capacity use area; (iii) modify or revoke any permit upon not less than 60 days' written notice to the permit holder; and (iv) deny the permit if the application therefor or the effect of the water use proposed or described therein upon the water resources of the area is found to be contrary to public interest.  Before issuing a permit under this subsection, the Commission shall notify the permit applicant of its proposed action by sending the permit applicant a copy of the permit the Commission proposes to issue.  Unless the permit applicant contests the proposed permit, the proposed permit shall become effective on the date set in the proposed permit.  A water user who is dissatisfied with a decision of the Commission concerning that user's or another user's permit application or permit may commence a contested case under G.S. 150B-23."
Sec. 8.  G.S. 143-215.32(a) reads as rewritten:
"(a)	The Department may at any time inspect any dam, including a dam that is otherwise exempt from this Part, upon receipt of a written request of any person or agency, or upon a motion of the Environmental Management Commission.  Within the limits of available funds the Department shall endeavor to provide for inspection of all dams at intervals of approximately five years."
Sec. 9.  G.S. 143-215.108(c)(3) reads as rewritten:
"(3)	To terminate, modify, or revoke and reissue any permit upon not less than 60 days' written notice to the permit holder;".
Sec. 10.  G.S. 143-215.3(a)(1b) reads as rewritten:
"(1b)	The fee to be charged pursuant to G.S. 143-215.3(a)(1a) for processing an application for a permit under G.S. 143-215.1 may not exceed one thousand dollars ($1,000).  The fee to be charged pursuant to G.S. 143-215.3(a)(1a) for processing an application for a permit under G.S. 143-215.108 and G.S. 143-215.109 may not exceed four hundred dollars ($400.00).   The fee to be charged pursuant to G.S. 143-215.3(a)(1a) for processing a registration under Part 2A of this Article or Article 38 of this Chapter may not exceed fifty dollars ($50.00) for any single registration.  An additional fee of twenty percent (20%) of the registration processing fee may be assessed for a late registration under Article 38 of this Chapter.  The fee for administering and compliance monitoring under G.S. 143-215.1 of Article 21 and G.S. 143-215.108 and G.S. 143-215.109 of Article 21B shall be charged on an annual basis for each year of the permit term and may not exceed one thousand five hundred dollars ($1,500) per year.  Fees for processing all permits under Article 21A and all other sections of Articles 21 and 21B shall not exceed one hundred dollars ($100.00) for any single permit.  Notwithstanding any other provision of this subdivision, the total payment for fees required for all permits under this subsection for any single facility shall not exceed seven thousand five hundred dollars ($7,500) per year, which amount shall include all application fees and fees for administration and compliance monitoring.  A single facility is defined to be any contiguous area under one ownership and in which permitted activities occur.  For all permits issued under these Articles where a fee schedule is not specified in the statutes, the Commission, or other commission specified by statute shall adopt a fee schedule in a rule following the procedures established by the Administrative Procedure Act.  Fee schedules shall be established to reflect the size of the emission or discharge, the potential impact on the environment, the staff costs involved, relative costs of the issuance of new permits and the reissuance of existing permits, and shall include adequate safeguards to prevent unusual fee assessments which would result in serious economic burden on an individual applicant.  A system shall be considered to allow consolidated annual payments for persons with multiple permits.  In its rulemaking to establish fee schedules, the Commission is also directed to consider a method of rewarding facilities which achieve full compliance with administrative and self-monitoring reporting requirements, and to consider, in those cases where the cost of renewal or amendment of a permit is less than for the original permit, a lower fee for the renewal or amendment."
Sec. 11.  This act becomes effective 1 January 1995, and applies to an application for a new permit, a modification of an existing permit, or a reissuance or renewal of an existing permit filed on or after that date.