A BILL TO BE ENTITLED
AN ACT TO PROVIDE REGULATORY RELIEF TO THE CITIZENS OF nORTH CAROLINA BY creating a fast track permitting process for certain environmental permits; by CLARIFYING THE PReEmption of city ordinances and clarifyING that similar rules apply to COUNTY ORDINANCES; BY CLARIFYING THE LAWS RELATING TO GROUNDWATER COMPLIANCE BOUNDARIES; BY EXTENDING THE TERMS OF CERTAIN ENVIRONMENTAL PERMITS; BY AMENDING THE ADMINISTRATIVE PROCEDURE ACT TO ELIMINATE THE REQUIREMENT THAT AN AGENCY PREPARE A FISCAL NOTE WHEN REPEALING A RULE; BY REQUIRING THE REPEAL OR REVISION OF EXISTING environmental rules more restrictive than federal rules pertaining to the same subject matter; by allowing municipalities to lease real property for a term of up to twenty‑five years to private companies constructing renewable energy facilities; by allowing going‑out‑of‑business sale licenses to be issued by any municipal official designated by the governing body of the municipality; BY directING the department of Environment and natural resources and the department of transportation to jointly petition the wilmington district of the united states army corps of engineers to allow for greater flexibility and opportunity to perform wetlands mitigation beyond the immediate watershed WHERE DEVELOPMENT WILL OCCUR; BY CLARIFYING THAT THE DEFINITION OF "BUILT‑UPON AREA" INCLUDES ONLY IMPERVIOUS SURFACES; AND BY REQUIRING MEMBERS OF advisory bodies to state agencies and boards to disclose potential conflicts of interest prior to making any recommendation.
The General Assembly of North Carolina enacts:

PART I. FAST‑TRACK PERMITTING FOR CERTAIN ENVIRONMENTAL PERMITS
SECTION 1.1.(a)  Stormwater. – The Department of Environment and Natural Resources shall develop Minimum Design Criteria for permits issued by the stormwater runoff permitting programs authorized by G.S. 143‑214.7. The Minimum Design Criteria shall include all requirements for siting, site preparation, design and construction, and post‑construction monitoring and evaluation necessary for the Department to issue a stormwater permit.
SECTION 1.1.(b)  Erosion and Sedimentation Control. – The Department of Environment and Natural Resources shall develop Minimum Design Criteria for erosion and sedimentation control plans issued by the Department and local governments under the authority of Article 4 of Chapter 113A of the General Statutes. The Minimum Design Criteria shall include all requirements for siting, site preparation, design and construction, and post‑construction monitoring and evaluation necessary for the Department or a local government stormwater program to approve an erosion and sedimentation control plan.
SECTION 1.1.(c)  Designation of Appropriate Professionals. – In the development of Minimum Design Criteria under this section, the Department shall specify types of licensed professionals qualified to certify the design, effectiveness, and appropriateness of each criterion. For purposes of this subsection, "licensed professionals" shall include, but not be limited to, engineers certified under Chapter 89C of the General Statutes, geologists certified under Chapter 89E of the General Statutes, and landscape architects certified under Chapter 89A of the General Statutes, and "qualified to certify" means, at a minimum, that the licensing board for that professional has the statutory authority to discipline the professional for falsely certifying design, effectiveness, or appropriateness of the particular criterion.
SECTION 1.2.  Technical Working Group. – In developing the Minimum Design Criteria, the Department may consult with a technical working group that consists of industry experts, environmental engineers or consultants, relevant faculty from The University of North Carolina, and other interested stakeholders. The Department shall submit the final Minimum Design Criteria to the Environmental Review Commission no later than March 1, 2014.
SECTION 1.3.  Article 21 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143‑214.7B.  Fast‑track permitting.
The Commission shall adopt rules implementing a fast‑track permitting process allowing for issuance of stormwater management system permits without a technical review when the permit applicant (i) complies with the Minimum Design Criteria for stormwater management developed by the Department and (ii) submits a permit application sealed by the appropriate professional specified in the criteria."
SECTION 1.4.  Article 4 of Chapter 113A of the General Statutes is amended by adding a new section to read:
"§ 113A‑68.  Fast‑track plan approval.
The Commission shall adopt rules implementing a fast‑track plan approval process allowing for approval of erosion and sedimentation control plans by the Department or a local erosion and sedimentation control program without a technical review when the person files a plan that (i) complies with the Minimum Design Criteria for erosion and sedimentation control developed by the Department and (ii) is sealed by the appropriate professional specified in the criteria."
SECTION 1.5.(a)  The Environmental Management Commission shall adopt temporary rules implementing Section 1.3 of this act no later than May 1, 2014. The temporary rules shall remain in effect until permanent rules that replace the temporary rules become effective.
SECTION 1.5.(b)  The Sedimentation Control Commission shall adopt temporary rules implementing Section 1.4 of this act no later than May 1, 2014. The temporary rules shall remain in effect until permanent rules that replace the temporary rules become effective.
SECTION 1.6.  G.S. 89C‑19 reads as rewritten:
"§ 89C‑19.  Public works; requirements where public safety involved.
This State and its political subdivisions such as counties, cities, towns, or other political entities or legally constituted boards, commissions, public utility companies, or authorities, or officials, or employees of these entities shall not engage in the practice of engineering or land surveying involving either public or private property where the safety of the public is directly involved without the project being under the supervision of a professional engineer for the preparations of plans and specifications for engineering projects, or a professional land surveyor for land surveying projects, as provided for the practice of the respective professions by this Chapter. These entities shall not, in the course of conducting technical review of an application for a permit or a plan submitted for approval by the entity, require revisions to that part of the application or plan that constitutes the practice of engineering and that has been supervised and sealed by a professional engineer unless the employee or official of the reviewing entity requiring the revision is also a professional engineer or is an engineering intern under the responsible charge of a professional engineer. Any revisions to the application or plan that are required by the reviewing entity and that constitute the practice of engineering shall be provided by written notice to the permit applicant or the person submitting a plan for approval. The written notice shall be on agency letterhead and shall be signed by the professional engineer reviewing or supervising the review of the submission and shall include the engineer's state license number.
An official or employee of the State or any political subdivision specified in this section, holding the positions set out in this section as of June 19, 1975, shall be exempt from the provisions of this section so long as such official or employee is engaged in substantially the same type of work as is involved in the present position.
Nothing in this section shall be construed to prohibit inspection, maintenance and service work done by employees of the State of North Carolina, any political subdivision of the State, or any municipality including construction, installation, servicing, and maintenance by regular full‑time employees of, secondary roads and drawings incidental to work on secondary roads, streets, street lighting, traffic‑control signals, police and fire alarm systems, waterworks, steam, electric and sewage treatment and disposal plants, the services of superintendents, inspectors or foremen regularly employed by the State of North Carolina or any political subdivision of the State, or municipal corporation.
The provisions in this section shall not be construed to alter or modify the requirements of Article 1 of Chapter 133 of the General Statutes."
SECTION 1.7.  The Department of Environment and Natural Resources shall identify other permitting programs for which the fast‑track permitting process described by this Part would be appropriate and make a report, including proposed legislation, to the Environmental Review Commission no later than May 1, 2014.

PART II. CLARIFY LOCAL GOVERNMENT PREEMPTION
SECTION 2.1. G.S. 160A‑174(b) reads as rewritten:
"(b)	A city ordinance shall be consistent with the Constitution and laws of North Carolina and of the United States. An ordinance is not consistent with State or federal law when:
(1)	The ordinance infringes a liberty guaranteed to the people by the State or federal Constitution;
(2)	The ordinance makes unlawful an act, omission or condition which is expressly made lawful by State or federal law;
(3)	The ordinance makes lawful an act, omission, or condition which is expressly made unlawful by State or federal law;
(4)	The ordinance purports to regulate a subject that cities are expressly forbidden to regulate by State or federal law;
(5)	The ordinance purports to regulate a field for which a State or federal statute clearly shows a legislative intent to provide a complete and integrated regulatory scheme to the exclusion of local regulation;
(5a)	The ordinance (i) regulates a field that is also regulated by a State or federal statute enforced by, or a regulation promulgated by, an environmental agency; and (ii) is more stringent than the State or federal statute or regulation; or
(6)	The elements of an offense defined by a city ordinance are identical to the elements of an offense defined by State or federal law.
The fact that a State or federal law, standing alone, makes a given act, omission, or condition unlawful shall not preclude city ordinances requiring a higher standard of conduct or condition.
(c)	The limitation set forth in subdivision (5a) of subsection (b) of this section does not apply to any ordinance if adoption of the ordinance was and continues to be required by one of the following:
(1)	A serious and unforeseen threat to the public health, safety, or welfare.
(2)	An act of the General Assembly or United States Congress that expressly requires the city to adopt an ordinance.
(3)	A provision in federal or State budgetary policy.
(4)	A federal regulation required by an act of the United States Congress to be adopted or administered by the State.
(5)	A court order.
(d)	For purposes of this section, "an environmental agency" means any of the following:
(1)	The Department of Environment and Natural Resources created pursuant to G.S. 143B‑279.1.
(2)	The Environmental Management Commission created pursuant to G.S. 143B‑282.
(3)	The Coastal Resources Commission established pursuant to G.S. 113A‑104.
(4)	The Marine Fisheries Commission created pursuant to G.S. 143B‑289.51.
(5)	The Wildlife Resources Commission created pursuant to G.S. 143‑240.
(6)	The Commission for Public Health created pursuant to G.S. 130A‑29, when regulating pursuant to the authority granted by Articles 9, 10, 11, 19, 19A, and 19B of Chapter 130A of the General Statutes.
(7)	The Sedimentation Control Commission created pursuant to G.S. 143B‑298.
(8)	The Mining and Energy Commission created pursuant to G.S. 143B‑293.1.
(9)	The Pesticide Board created pursuant to G.S. 143‑436."
SECTION 2.2.  G.S. 153A‑121 is amended by adding a new subsection to read:
"(a1)	A county ordinance shall be consistent with the Constitution and laws of North Carolina and of the United States. An ordinance is not consistent with State or federal law when:
(1)	The ordinance infringes a liberty guaranteed to the people by the State or federal Constitution;
(2)	The ordinance makes unlawful an act, omission, or condition which is expressly made lawful by State or federal law;
(3)	The ordinance makes lawful an act, omission, or condition which is expressly made unlawful by State or federal law;
(4)	The ordinance purports to regulate a subject that counties are expressly forbidden to regulate by State or federal law;
(5)	The ordinance purports to regulate a field for which a State or federal statute clearly shows a legislative intent to provide a complete and integrated regulatory scheme to the exclusion of local regulation;
(6)	The ordinance (i) regulates a field that is also regulated by a State or federal statute enforced by, or a regulation promulgated by, an environmental agency; and (ii) is more stringent than the State or federal statute or regulation; or
(7)	The elements of an offense defined by a county ordinance are identical to the elements of an offense defined by State or federal law.
The fact that a State or federal law, standing alone, makes a given act, omission, or condition unlawful shall not preclude county ordinances requiring a higher standard of conduct or condition.
(a2)	The limitation set forth in subdivision (6) of subsection (a1) of this section does not apply to any ordinance if adoption of the ordinance was and continues to be required by one of the following:
(1)	A serious and unforeseen threat to the public health, safety, or welfare.
(2)	An act of the General Assembly or United States Congress that expressly requires the county to adopt an ordinance.
(3)	A provision in federal or State budgetary policy.
(4)	A federal regulation required by an act of the United States Congress to be adopted or administered by the State.
(5)	A court order.
(a3)	For purposes of this section, "an environmental agency" means any of the following:
(1)	The Department of Environment and Natural Resources created pursuant to G.S. 143B‑279.1.
(2)	The Environmental Management Commission created pursuant to G.S. 143B‑282.
(3)	The Coastal Resources Commission established pursuant to G.S. 113A‑104.
(4)	The Marine Fisheries Commission created pursuant to G.S. 143B‑289.51.
(5)	The Wildlife Resources Commission created pursuant to G.S. 143‑240.
(6)	The Commission for Public Health created pursuant to G.S. 130A‑29, when regulating pursuant to the authority granted by Articles 9, 10, 11, 19, 19A, and 19B of Chapter 130A of the General Statutes.
(7)	The Sedimentation Control Commission created pursuant to G.S. 143B‑298.
(8)	The Mining and Energy Commission created pursuant to G.S. 143B‑293.1.
(9)	The Pesticide Board created pursuant to G.S. 143‑436."

PART III. ENVIRONMENTAL REGULATORY REFORM
SECTION 3.2.(a)  G.S. 143‑215.1 is amended by adding three new subsections to read:
"§ 143‑215.1.  Control of sources of water pollution; permits required.
…
(i)	Any person subject to the requirements of this section who is required to obtain an individual permit from the Commission for a disposal system under the authority of G.S. 143‑215.1 or Chapter 130A of the General Statutes shall have a compliance boundary as may be established by rule or permit for various categories of disposal systems and beyond which groundwater quality standards may not be exceeded. The location of the compliance boundary shall be established at the property boundary, except as otherwise established by the Commission. Multiple contiguous properties under common ownership and permitted for use as a disposal system shall be treated as a single property with regard to determination of a compliance boundary under this subsection. Nothing in this subsection shall be interpreted to require a revision to an existing compliance boundary previously approved by rule or permit.
(j)	When operation of a disposal system permitted under this section results in an exceedance of the groundwater quality standards adopted in accordance with G.S. 143‑214.1, the Commission shall require that the exceedances within the compliance boundary be remedied through clean‑up, recovery, containment, or other response only when any of the following conditions occur:(1)	A violation of any water quality standard in adjoining classified waters of the State occurs or can be reasonably predicted to occur considering hydrogeological conditions, modeling, or any other available evidence.
(2)	An imminent hazard or threat to the environment, public health, or safety exists.
(3)	A violation of any standard in groundwater occurring in the bedrock other than limestones found in the Coastal Plain sediments, unless it can be demonstrated that the violation will not adversely affect, or have the potential to adversely affect, a water supply well.
(k)	Where operation of a disposal system permitted under this section results in exceedances of the groundwater quality standards at or beyond the compliance boundary established under subsection (i) of this section, exceedances shall be remedied through clean‑up, recovery, containment, or other response as directed by the Commission."
SECTION 3.2.(b)  With respect to exceedances of groundwater quality standards within a compliance boundary and related remedy requirements, G.S. 143‑215.1(j) as set forth in Section 3.1(a) of this act shall apply in lieu of the restricted designation directives found in 15A NCAC 2L .0104(d) and (e) until the Department of Environment and Natural Resources has adopted revisions to those rules to comply with this act.SECTION 3.3.(a)  G.S. 143‑215.1 reads as rewritten:
"§ 143‑215.1.  Control of sources of water pollution; permits required.
…
(d2)	No permit issued pursuant to subsection (c) of this section shall be issued or renewed for a term exceeding five years. All other permits issued pursuant to this section for which an expiration date is specified shall be issued for a term not to exceed eight years.
(e)	Administrative Review. – A permit applicant, a permittee, or a third party who is dissatisfied with a decision of the Commission may commence a contested case by filing a petition under G.S. 150B‑23 within 30 days after the Commission notifies the applicant or permittee of its decision. If the permit applicant or permittee does not file a petition within the required time, the Commission's decision is final and is not subject to review.
…."
SECTION 3.3.(b)  G.S. 143‑215.108 reads as rewritten:
"§ 143‑215.108.  Control of sources of air pollution; permits required.
…
(d1)	No Title V permit issued pursuant to this section shall be issued or renewed for a term exceeding five years. All other permits issued pursuant to this section shall be issued for a term not to exceed eight years.
(e)	A permit applicant, a permittee, or a third party who is dissatisfied with a decision of the Commission may commence a contested case by filing a petition under G.S. 150B‑23 within 30 days after the Commission notifies the applicant or permittee of its decision. If the permit applicant or permittee does not file a petition within the required time, the Commission's decision on the application is final and is not subject to review.
…."
SECTION 3.4.(a)  Section 2 of S.L. 2006‑246 reads as rewritten:
"SECTION 2.  Definitions. – The following definitions apply to this act and its implementation:
…
(7)	"Built‑upon area" means that portion of a project that is covered by impervious surface including, but not limited to, buildings; pavement areas such as roads, parking lots, and paths; and recreation facilities such as tennis courts. "Built‑upon area" does not include a wooden slatted deck, the water area of a swimming pool, gravel, or pervious or partially pervious paving material to the extent that the paving material absorbs water or allows water to infiltrate through the paving material.
…."
SECTION 3.4.(b)  The Department shall adopt rules to implement this Section. Until permanent rules to implement subsection (a) of this section take effect, the definition of "built‑upon area" in subsection (a) shall apply instead of any other definition of "built‑upon area" appearing in rules adopted pursuant to Session Law 2006‑246.

PART IV. NO FISCAL NOTE FOR RULE REPEAL
SECTION 4.1.  G.S. 150B‑21.4 is amended by adding a new subsection to read:
"(d)	If an agency proposes the repeal of an existing rule, the agency is not required to prepare a fiscal note on the proposed rule change as provided by this section."

PART VI. REFORM OF EXISTING RULES
SECTION 6.1.(a)  Definitions. – For purposes of this section, "an agency authorized to implement and enforce State and federal environmental laws" means any of the following:
(1)	The Department of Environment and Natural Resources created pursuant to G.S. 143B‑279.1.
(2)	The Environmental Management Commission created pursuant to G.S. 143B‑282.
(3)	The Coastal Resources Commission established pursuant to G.S. 113A‑104.
(4)	The Marine Fisheries Commission created pursuant to G.S. 143B‑289.51.
(5)	The Wildlife Resources Commission created pursuant to G.S. 143‑240.
(6)	The Commission for Public Health created pursuant to G.S. 130A‑29.
(7)	The Sedimentation Control Commission created pursuant to G.S. 143B‑298.
(8)	The Mining and Energy Commission created pursuant to G.S. 143B‑293.1.
(9)	The Pesticide Board created pursuant to G.S. 143‑436.
SECTION 6.1.(b)  An agency authorized to implement and enforce State and federal environmental laws shall identify all existing rules for the protection of the environment or natural resources that impose a more restrictive standard, limitation, or requirement than those imposed by federal law or rule, if a federal law or rule pertaining to the same subject matter has been adopted.
SECTION 6.1.(c)  No later than September 1, 2013, agencies identifying rules under subsection (b) of this section shall initiate rule–making proceedings to (i) repeal the rules; or (ii) rewrite the rules to make them no more restrictive than the corresponding federal laws or rules. Rules adopted pursuant to this subsection are not subject to G.S. 150B‑21.9 through G.S. 150B‑21.14.
SECTION 6.1.(d).  The rule–making proceedings required by subsection (c) of this section are not required for any rule identified under subsection (b) of this section if adoption of the rule was and continues to be required by one of the following:
(1)	A serious and unforeseen threat to the public health, safety, or welfare.
(2)	An act of the General Assembly or United States Congress that expressly requires the agency to adopt rules.
(3)	A provision in federal or State budgetary policy.
(4)	A federal regulation required by an act of the United States Congress to be adopted or administered by the State.
(5)	A court order.

PART VII. PERMIT LONGER ALTERNATE ENERGY LEASING PERIODS
SECTION 7.(a)  G.S. 160A‑272 reads as rewritten:
"§ 160A‑272.  Lease or rental of property.
…
(c)	The council may approve a lease for the siting and operation of a renewable energy facility, as that term is defined in G.S. 62‑133.8(a)(7), for a term up to 25 years without treating the lease as a sale of property and without giving notice by publication of the intended lease."
SECTION 7.(b)  Section 3 of S.L. 2010-57 reads as rewritten:
"SECTION 3.  This act is effective when it becomes law but Section 1 expires June 30, 2015."

PART VIII. GOING‑OUT‑OF‑BUSINESS SALE LICENSING FLEXIBILITY
SECTION 8.  G.S. 66‑77 reads as rewritten:
"§ 66‑77.  License required; contents of applications; inventory required; fees; bond; extension of licenses; records; false statements.
(a)	No person shall advertise or offer for sale a stock of goods, wares or merchandise under the description of closing‑out sale, or a sale of goods, wares or merchandise damaged by fire, smoke, water or otherwise, or a distress sale unless he shall have obtained a license to conduct such sale from the officer designated by the governing board of the city or town in which he proposes to conduct such a sale or from the officer designated by the Board of County Commissioners if the sale is conducted in an unincorporated area. The applicant for such a license shall make to the designated officer an application in writing and under oath at least seven days prior to the opening date of sale, showing all the facts relating to the reasons and character of such sale, including the opening and terminating dates of the proposed sale, the opening and terminating dates of any previous distress sale or closing‑out sale held by the applicant within that county during the preceding 12 months, a complete inventory of the goods, wares or merchandise actually on hand in the place where the sale is to be conducted, and all details necessary to locate exactly and identify fully the goods, wares or merchandise to be sold. Provided, the seller in a distress sale need not file an inventory.
(b)	If the designated officer shall be satisfied from said application that the proposed sale is of the character which the applicant desires to advertise and conduct, the designated officer shall issue a license, upon the payment of a fee of fifty dollars ($50.00) therefor, together with a bond, payable to the city or town or county in the penal sum of five hundred dollars ($500.00), conditioned upon compliance with this Article, to the applicant authorizing him to advertise and conduct a sale of the particular kind mentioned in the application. The license fee provided for herein shall be good for a period of 30 days from its date, and if the applicant shall not complete said sale within said 30‑day period then the applicant shall make application to the designated officer for a license for a new permit, which shall be good for an additional period of 30 days, and shall pay therefor the sum of fifty dollars ($50.00), and a second extension period of 30 days may be similarly applied for and granted by the designated officer upon payment of an additional fee of fifty dollars ($50.00) and upon the designated officer being satisfied that the applicant is holding a bona fide sale of the kind contemplated by this Article and is acting in a bona fide manner; provided, however, that the designated officer may not grant an extension period as provided in this subsection if (i) the applicant conducted a distress sale immediately preceding the current sale for which the extension is applied for and (ii) the period of the extension applied for, when added to the period of the preceding sale and the period of the current sale, will exceed 120 days. No additional bond shall be required in the event of one or more extensions as herein provided for. Any merchant who shall have been conducting a business in the same location where the sale is to be held for a period of not less than one year, prior to the date of holding such sale, or any merchant who shall have been conducting a business in one location for such period but who shall, by reason of the building being untenantable or by reason of the fact that said merchant shall have no existing lease or ownership of the building and shall be forced to hold such sale at  another location, shall be exempted from the payment of the fees and the filing of the bond herein provided for.
…."

PART IX. WETLANDS AND STREAM MITIGATION HUC FLEXIBILITY
SECTION 9.1.  No later than October 1, 2013, the Department of Environment and Natural Resources and the Department of Transportation shall jointly petition the Wilmington District of the United States Army Corps of Engineers (Wilmington District) to allow for greater flexibility and opportunity to perform wetlands and stream mitigation outside of the eight‑digit Hydrologic Unit Code (HUC) where development will occur. The Departments shall seek this greater flexibility and opportunity for mitigation for both public and private development. The Departments shall request that the Wilmington District review the flexibility and opportunities for mitigation allowed by other Districts of the United States Army Corps of Engineers.
SECTION 9.2.  The Departments shall jointly report on their progress in petitioning the Wilmington District as required by Section 9.1 of this act to the Environmental Review Commission no later than January 1, 2014.

PART X. ethics/advisory boards
SECTION 10.  G.S. 138A‑15 is amended by adding a new subsection to read:
"§ 138A‑15.  Duties of heads of State agencies.
…
(i)	Before receiving or accepting any recommendation, the head of each State agency, including the chair of each board subject to this Chapter, shall require each member of an advisory body appointed or created by the State to serve that State agency or board, or appointed or created by the State agency or board subject to this Chapter, to disclose all reasonably foreseeable financial benefits from the matter under recommendation, which financial benefit would impair the member of the advisory body's independence of judgment or from which it could reasonably be inferred that the financial benefit would influence the member of the advisory body participation in the advisory body. Each member of an advisory body appointed or created by a State agency or board subject to this Chapter shall also provide to that State agency or board subject to this Chapter a list of all grants or employment pertaining to the matter under recommendation held or awarded within the previous 24 months before the recommendation and a copy of any deliverable associated with such grants."

PART XI. SEVERABILITY AND EFFECTIVE DATE PROVISIONS
SECTION 11.1.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part so declared to be unconstitutional or invalid.
SECTION 11.2.  Sections 3.1 and 10 of this act become effective July 1, 2013. Section 4.1 of this act is effective when it becomes law and applies to all proposed rules published in the North Carolina Register on or after that date. Except as otherwise provided, the remainder of this act is effective when it becomes law.