H 376

GENERAL ASSEMBLY OF NORTH CAROLINA
  SESSION 2025
  SESSION LAW 2026-32
  HOUSE BILL 376
AN ACT TO ADDRESS WATER AND WASTEWATER AFFORDABILITY AND
  CAPACITY AND TO MAKE VARIOUS CHANGES TO THE STATUTES GOVERNING
  ON-SITE WASTEWATER SYSTEMS AND PRIVATE WELLS.
The General Assembly of North Carolina enacts:
AMEND PROCEDURES REGARDING THE SALE OF A PUBLIC WATER SYSTEM
  SECTION 1. G.S. 62-133.1B(e) reads as rewritten:
    "(e) The Commission shall, after notice and an opportunity for interested parties to be
heard, issue an order ruling on the water or sewer utility's request to adjust base rates under
G.S. 62-133, denying or approving, with or without modifications, a water or sewer utility's
proposed Water and Sewer Investment Plan. The Commission may suspend the effect of the
proposed base rates and the Water and Sewer Investment Plan implementation pending
investigation in the same manner as provided in G.S. 62-134(b), provided that the Commission
may suspend the implementation of the proposed base rates for no longer than 300 days. An
approved plan shall be effective no later than the end of the maximum suspension period pursuant
to G.S. 62-134(b).period."
  SECTION 2. Article 1 of Chapter 162A of the General Statutes is amended by
adding a new section to read:
"§ 162A-19.1. Sale of a public water or sewer system.
    (a)     For purposes of this section, "local government service provider" means any of the
following:
  (1)     A county.
  (2)     A city.
  (3)     A water and sewer authority created under Article 1 of Chapter 162A of the
  General Statutes.
  (4)     A metropolitan sewerage district created under Article 5 of Chapter 162A of
  the General Statutes.
  (5)     A sanitary district created under Part 2 of Article 2 of Chapter 130A of the
  General Statutes.
  (6)     A county water and sewer district created under Article 6 of Chapter 162A of
  the General Statutes.
  (7)     A metropolitan water district created under Article 4 of Chapter 162A of the
  General Statutes.
  (8)     A metropolitan water and sewerage district created under Article 5A of
  Chapter 162A of the General Statutes.
    (b)     No local government service provider may sell to a private company a water or sewer
system that provides service to the public until the governing body of the local government
service provider has held a public hearing on the sale and made a determination that the sale is
in the public interest. In determining if the sale is in the public interest, the local government
service provider shall consider, at a minimum, all of the following:
  (1)     The physical condition of the water or sewer system being sold.
  *H376-v-7*
  (2)      The capital replacements, additions, expansions, and repairs needed to provide
  reliable service and meet all applicable federal standards.
  (3)     The availability of federal and State grants and loans for system upgrades and
  repairs.
  (4)     The willingness and the ability of the purchaser to make system upgrades and
  repairs and provide high-quality and cost-effective service.
  (5)     The reasonableness of the contract sale price and terms.
  (6)     The most recent income and expense statement and asset and liabilities
  balance sheet of the purchaser.
  (7)     The purchaser's existing rate base and projected rates over the next three years.
  (8)     The affordability of the projected rates for the next three years for customers
  serviced by the system, based on the income levels of the customer base.
  (9)     The alternatives to the sale and the potential impact on utility customers if the
  sale is not made.
     (c)    The local government service provider shall prepare a statement showing that the sale
is in the public interest, including a summary of the purchaser's experience in water or sewer
utility operation and a showing of financial ability to provide the service.
     (d)    All moneys paid by a private company to a local government service provider for the
purchase of a water system or sewer system shall be used for the purpose of debt reduction for
the system, if applicable, and repayment of federal grant awards associated with the system as
may be required by federal law or regulation. Any unspent funds remaining after debts and
federal grant awards have been repaid shall be deposited in the general fund of the local
government service provider."
  SECTION 3. Article 1 of Chapter 162A of the General Statutes is amended by
adding a new section to read:
"§ 162A-19.2. Limitation on water and sewer rates charged to customers outside the
  jurisdictional boundaries of the provider.
     (a)    For purposes of this section, "local government service provider" means any of the
following:
  (1)     A county.
  (2)     A city.
  (3)     A water and sewer authority created under Article 1 of Chapter 162A of the
  General Statutes.
  (4)     A metropolitan sewerage district created under Article 5 of Chapter 162A of
  the General Statutes.
  (5)     A sanitary district created under Part 2 of Article 2 of Chapter 130A of the
  General Statutes.
  (6)     A county water and sewer district created under Article 6 of Chapter 162A of
  the General Statutes.
  (7)     A metropolitan water district created under Article 4 of Chapter 162A of the
  General Statutes.
  (8)     A metropolitan water and sewerage district created under Article 5A of
  Chapter 162A of the General Statutes.
     (b)    Any local government service provider establishing an increase in the rates, fees, or
charges for water or sewer system customers outside of the local government service provider's
jurisdictional boundaries may impose rates, fees, and charges that exceed the charges to
customers inside its boundaries. Notwithstanding G.S. 130A-64.1, 153A-277(a1)(1),
160A-314(a1)(1), and 162A-9(a), if the total of all rates, fees, and charges, excluding tap fees
and impact fees, does not exceed the rates, fees, and charges to customers inside its boundaries
by more than twenty-five percent (25%), the local government service provider shall not be
required to hold a public hearing except as may be provided for service to customers inside the
Page 2  Session Law 2026-32  House Bill 376
boundaries of the local government service provider. If the total of all rates, fees, and charges,
excluding tap fees and impact fees, exceeds the rates, fees, and charges to customers inside its
boundaries by more than twenty-five percent (25%), the local government service provider shall
hold a public hearing and explain how the rates, fees, and charges for customers outside its
boundaries were determined. This section shall not be construed to prohibit a local government
service provider from charging a tap fee or impact fee separate from the provisions of this
subsection."
  SECTION 4. Section 1 is effective when it becomes law and applies to rate schedules
filed on or after that date. Section 2 is effective when it becomes law and applies to contracts for
sales of water systems executed on or after that date. Section 3 is effective when it becomes law
and applies to rates established on or after that date.
COMMERCIAL WASTEWATER DESIGN FLOW RATE STUDY
  SECTION 5.(a) The Environmental Management Commission shall study whether
the wastewater design flow rates established pursuant to 15A NCAC 02T .0114(c) and (d)
(Wastewater Design Flow Rates) as those rates apply to commercial and industrial water users
accurately measure the actual flow rates used by those water users. In conducting the study, the
Commission shall consider all of the following:
  (1)    Reduced water consumption associated with new plumbing fixtures, fittings,
  and appliances, including any reductions attributable to standards adopted
  under the North Carolina Building Code or federal efficiency standards since
  the flow rates in the rule were last established.
  (2)    Actual metered water use and measured wastewater flows from commercial
  and industrial water users in the State.
  (3)    Wastewater design flow rates used by other states for comparable commercial
  and industrial water users.
  SECTION 5.(b) The Environmental Management Commission shall report its
findings to the Environmental Review Commission no later than January 1, 2027.
MODIFY THE AUTHORITY OF CERTAIN LOCAL GOVERNMENTS TO REQUIRE
STORMWATER CONTROL FOR REDEVELOPED PROPERTY
  SECTION 5.5.(a) G.S. 143-214.7 reads as rewritten:
"§ 143-214.7. Stormwater runoff rules and programs.
    …
    (a1) Definitions. – The following definitions apply in this section:
  (1)    Built-upon area. – As defined in G.S. 143-214.7D.
  (2)    Development. – Any land-disturbing activity that increases the amount of
  built-upon area or that otherwise decreases the infiltration of precipitation into
  the subsoil. When additional development occurs at a site that has existing
  development, the built-upon area of the existing development shall not be
  included in the density calculations for additional stormwater control
  requirements, and stormwater control requirements cannot be applied
  retroactively to existing development, unless otherwise required by federal
  law.
  (2)(3) Redevelopment. – Any land-disturbing activity that does not result in a net
  increase in built-upon area and that provides greater or equal stormwater
  control to that of the previous development.
    …
    (b3) Stormwater runoff rules and programs shall not require private property owners to
install new or increased stormwater controls for (i) preexisting development existing built-upon
area or (ii) redevelopment activities that do not remove or decrease existing stormwater controls.
House Bill 376  Session Law 2026-32  Page 3
When a preexisting development is redeveloped, either in whole or in part, increased stormwater
controls shall only be required for the amount of impervious surface being created that exceeds
the amount of impervious surface that existed before the redevelopment, irrespective of whether
the impervious surface that existed before the redevelopment is to be demolished or relocated
during the development activity. When development or redevelopment occurs at a site that has
existing built-upon area: (i) the existing built-upon area shall not be included in the density
calculations for additional stormwater control requirements, irrespective of whether the existing
built-upon area is to be demolished, relocated, replaced, or remains in place during development
activity; (ii) the existing built-upon area at the site is not subject to additional stormwater control
requirements under this section, regardless of whether the existing built-upon area is demolished,
relocated, replaced, or remains in place during the development activity; (iii) for purposes of
determining the size of the area for which stormwater control measures are required for a
development or redevelopment, built-upon area that existed before the development or
redevelopment shall be applied on a square-foot-for-square-foot basis to reduce the built-upon
area for which stormwater control measures are required; and (iv) stormwater control
requirements cannot be applied retroactively to existing built-upon area, unless otherwise
required by federal law. A property owner may elect to treat the stormwater resulting from the
net increase in built-upon area above the preexisting existing built-upon area at the development
or redevelopment for the purpose of exceeding allowable density under the applicable water
supply watershed rules as provided in G.S. 143-214.5(d3). This subsection applies to all local
governments regardless of the source of their regulatory authority. Local governments shall
include the requirements of this subsection in their stormwater ordinances.
    …
    (b8) A local government may offer nonmandatory incentives that waive building, zoning,
connection, or other regulations or fees, provide additional tax and financial benefits, or institute
other incentives for development or redevelopment that implement additional stormwater control
measures beyond those required by this section and rules adopted thereunder.
    …."
  SECTION 5.5.(b)  Each local government that implements a stormwater
management program shall amend its stormwater ordinance to conform to G.S. 143-214.7(b3),
as amended by subsection (a) of this section, within 12 months of the effective date of this section.
Any local stormwater ordinance that is inconsistent with G.S. 143-214.7(b3), as amended by
subsection (a) of this section, is void and unenforceable on and after that date. A local government
may adopt, amend, or repeal ordinance provisions implementing G.S. 143-214.7(b8) at any time
after the effective date of this section.
  SECTION 5.5.(c) This section is effective when it becomes law and applies to
stormwater rules and stormwater program amendments adopted on or after that date.
ON-SITE WASTEWATER BOARD CHANGES
  SECTION 6.(a) G.S. 90A-72(a) reads as rewritten:
    "(a) Certification Required. – No person shall construct, install, or repair or offer to
construct, install, or repair an on-site wastewater system permitted under Article 11 of Chapter
130A of the General Statutes without being certified as a contractor at the required level of
certification for the specified system. No person shall conduct an inspection or offer to conduct
an inspection of an on-site wastewater system as permitted under Article 11 of Chapter 130A of
the General Statutes without being certified in accordance with the provisions of this Article. No
person shall conduct an evaluation or offer to conduct the services authorized in
G.S. 130A-336.2(a) without being certified as an Authorized On-Site Wastewater Evaluator. No
person shall conduct or offer to conduct a private compliance inspection of an on-site wastewater
system for compliance with the designs of a Construction Authorization issued pursuant to
G.S. 130A-335(a5) or a Notice of Intent to Construct issued pursuant to G.S. 130A-336.1 or
Page 4  Session Law 2026-32  House Bill 376
G.S. 130A-336.2 unless certified as a Private Compliance Inspector or pursuant to
G.S. 130A-337(a1). The Private Compliance Inspector shall obtain written consent from the
professional engineer pursuant to G.S. 130A-336.1 or the Authorized On-Site Wastewater
Evaluator pursuant to G.S. 130A-336.2 prior to conducting the compliance inspection. No person
conducting any project requiring certification pursuant to this Article shall do so without holding
sufficient general liability coverage for the project, as well as any additional liability coverage
that may be required for systems completed pursuant to G.S. 130A-336.1 or G.S. 130A-336.2."
  SECTION 6.(b) G.S. 90A-77, as amended by S.L. 2024-49, reads as rewritten:
"§ 90A-77. Certification requirements.
    (a)     Certification. – The Board shall issue a certificate to an applicant who satisfies all of
the following conditions:
  (1)     Is at least 18 years of age.
  (2)     Submits a properly completed application with all required supporting
  documents for the certification being applied for to the Board.
  (3)     For grade level II contractor certification, applicant shall satisfy the following
  conditions:
  a.       Complete the basic on-site wastewater education approved by the
  Board for any level.
  b.       Complete any additional class hours required for grade level II.
  (3a) For grade level IV contractor certification, applicant shall satisfy the following
  conditions:
  a.       Hold current and satisfactory certification of grade level II for a
  minimum of two years prior to application for grade level IV.
  b.       Complete any additional class hours required for grade level IV.
  (3b) For inspector certification, applicant shall satisfy the following conditions:
  a.       Complete the point-of-sale inspector education approved by the
  Board.
  b.       Complete any additional class hours required for point-of-sale
  inspector certification.
  c.       Hold current and satisfactory certification of grade level IV contractor,
  or Authorized On-Site Wastewater Evaluator or subsurface operator
  certification for a minimum of two years.
  d.       In lieu of the experience requirements in this subdivision, an applicant
  may instead complete the approved education requirements for the
  grade IV contractor certification as required by the Board. This
  sub-subdivision shall not apply to a person certified as a grade II
  contractor.
  …."
  SECTION 6.(c) G.S. 90A-78 reads as rewritten:
"§ 90A-78. Certification renewal.
    (a)     Renewal. – All certifications shall expire on December 31 of each year unless they
are renewed. To renew a certification, a contractor, inspector, Authorized On-Site Wastewater
Evaluator, or Private Compliance Inspector must meet all of the following conditions:
  (1)     Submit an application for renewal on the form prescribed by the Board, which
  includes all supporting documents requested on the renewal form.
  (2)     Meet the following continuing education requirements:
  a.       Grade level II contractor:  3 hours per year.
  b.       Grade level IV contractor:  6 hours per year.
  c.       Point-of-sale inspector:  6 hours per year.
  d.       Authorized on-site wastewater evaluator: 12 hours per year.
  e.       Private compliance inspector:  12 hours per year.
House Bill 376  Session Law 2026-32  Page 5
  f.     For persons holding more than one certification issued by the Board,
  the higher annual hours continuing education requirement of all
  certificates held.
  (3)     Pay the certification renewal fee.
  (4)     Submit the renewal completed renewal package by November 15 annually.
   …."
  SECTION 6.(d) This section becomes effective January 1, 2027, and applies to
applications for certification or certificate renewal on or after that date.
ON-SITE WASTEWATER SYSTEM CHANGES
  SECTION 7.(a) G.S. 130A-335 reads as rewritten:
"§ 130A-335. Wastewater collection, treatment and disposal; rules.
    …
    (c)      A wastewater system subject to approval under rules of the Commission shall be
reviewed and approved under rules of a local board of health in the following circumstances:
  (1)    The local board of health, on its own motion, has requested the Department to
  review its proposed rules concerning wastewater systems; and
  (2)    The local board of health has adopted by reference the wastewater system
  rules adopted by the Commission, with any more stringent modifications or
  additions deemed necessary by the local board of health to protect the public
  health. Local boards of health shall use historical experience to establish
  modifications or additions to rules established by the Commission; andhealth;
  and
  (3)    The Department has has, consistent with subsection (c3) of this section, found
  that the rules, including modifications or additions to the Commission's rules,
  of the local board of health concerning wastewater collection, treatment and
  disposal systems are at least as stringent as rules adopted by the Commission
  and are sufficient and necessary to safeguard the public health.
    …
    (c3) The Department shall determine the validity of proposals from local boards of health
seeking modifications or additions to rules established by the Commission based on whether the
rules are at least as stringent as rules adopted by the Commission and necessary to protect the
public health. The Department shall hold public hearings and notice those hearings on the
Department's webpage upon application for modification or addition of Commission rules by the
local health department. The Department shall make its findings available to the public before
approving or denying a proposed modification or addition.
    …."
  SECTION 7.(b) G.S. 130A-336 reads as rewritten:
"§ 130A-336. Improvement permit and construction authorization required.
    …
    (b)      The local health department shall issue a construction authorization Construction
Authorization authorizing work to proceed and the installation or repair of a wastewater system
when it has determined after a field investigation that the system can be installed and operated in
compliance with this Article and rules adopted pursuant to this Article. This construction
authorization Construction Authorization shall be valid for a period equal to the period of validity
of the improvement permit and may be issued at the same time the improvement permit is issued.
Improvement Permit. No person shall commence or assist in the installation, construction, or
repair of a wastewater system unless an improvement permit Improvement Permit and a
construction authorization Construction Authorization have been obtained from the Department
or the local health department unless that person is acting in accordance with the conditions and
criteria of an engineered option permit pursuant to G.S. 130A-336.1 or the Authorized On-Site
Page 6  Session Law 2026-32  House Bill 376
Wastewater Evaluator permit option pursuant to G.S. 130A-336.2. No improvement permit
Improvement Permit or construction authorization Construction Authorization shall be required
for maintenance of a wastewater system. The Department and the local health department may
impose conditions on the issuance of an improvement permit Improvement Permit and a
construction authorization.Construction Authorization.
    …."
  SECTION 7.(c) G.S. 130A-337 reads as rewritten:
"§ 130A-337. Inspection; operation permit required.
    (a)     No system of wastewater collection, treatment and disposal shall be covered or placed
into use by any person until an inspection by the local health department has determined that the
system has been installed or repaired in accordance with any conditions of the Improvement
Permit, the Construction Authorization, the rules, and this Article.
    (a1) Notwithstanding subsection (a) of this section, an applicant may contract with an
Authorized On-Site Wastewater Evaluator certified pursuant to Article 5 of Chapter 90A of the
General Statutes or an engineer licensed pursuant to Chapter 89C of the General Statutes to
conduct any required verifications or inspections. The evaluator or engineer shall provide the
applicant with written verification that all conditions of the Improvement Permit and
Construction Authorization have been met, including an as-built drawing meeting the standards
and scale of the local health department issuing the Construction Authorization as certified by
the evaluator. evaluator or engineer. The applicant may cover the system and place it into
operation upon receipt of the evaluator's written verification and shall submit the verification to
the local health department within two business days of receipt of the verification. The
Department, the Department's authorized agents, and the local health department shall be
discharged and released from any liabilities, duties, and responsibilities imposed by statute or
common law from any claim arising out of or attributed to the on-site wastewater system
installation.
    …
    (b)     Upon determining that the system is properly installed or repaired and that the system
is capable of being operated in installation or repair of a wastewater system in accordance with
the conditions of the Improvement Permit, the rules, this Article and any conditions to be imposed
in the operation permit, Permit and the Construction Authorization, including any site
modification conditions noted in the Improvement Permit or Construction Authorization, as
applicable, applicable, or upon receipt of written verification submitted pursuant to subsection
(a1) or (a2) of this section, the local health department shall issue an operation permit authorizing
the residence, place of business or place of public assembly to be occupied and for the system to
be placed into use or reuse. A local health department shall not withhold issuance of an Operation
Permit if all conditions specified in the Improvement Permit and Construction Authorization
have been met, and the installation complies with all applicable laws and rules. Conditions added
to the Operation Permit shall be consistent with the applicable rules and are enforceable as
requirements of the permit.
    …."
  SECTION 7.(d) This section is effective when it becomes law and applies to permits
applied for on or after that date.
PRIVATE DRINKING WATER WELL PROGRAM CHANGES
  SECTION 8.(a) G.S. 87-96 reads as rewritten:
"§ 87-96. Conflict with other laws.
    (a)    The provisions of any law, rule, or local ordinance which establish standards
affording greater protection to for testing of groundwater resources or public health, safety, or
welfare shall prevail, within the jurisdiction to which they apply, over the provisions of this
Article and rules adopted pursuant to this Article.
House Bill 376  Session Law 2026-32  Page 7
    (b)     Rules relating to public health, wells, or groundwater adopted by the Commission for
Public Health shall prevail over this Article, Article and rules adopted pursuant to this Article,
and rules adopted by a local board of health pursuant to subsection (c) of this section. Article.
This Article shall not be construed to repeal any law or rule in effect as of July 1, 1989.
    (c)     A local board of health may adopt by reference rules adopted by the Environmental
Management Commission pursuant to this Article, and may adopt more stringent rules for testing
of water resources when necessary to protect the public health."
  SECTION 8.(b) G.S. 87-97 reads as rewritten:
"§ 87-97. Permitting and testing of private drinking water wells.
    (a)     Mandatory Local Well Programs. Authority. – Each county, through the local health
department that serves the county, shall implement a the private drinking water well permitting,
inspection, and testing program. and inspection program established and adopted by the
Environmental Management Commission. The local health department shall be the exclusive
authority for the permitting of wells and well systems as described in G.S. 143-138(b17)(2).
Local health departments shall administer the program and enforce the minimum well
construction, permitting, inspection, repair, and testing requirements set out in this Article and
rules adopted pursuant to this Article. No person shall unduly delay or refuse to permit a well
that can be constructed or repaired and operated in compliance with the requirements set out in
this Article and rules adopted pursuant to this Article.
    …."
  SECTION 8.(c) G.S. 130A-39 reads as rewritten:
"§ 130A-39. Powers and duties of a local board of health.
    …
    (b)     A local board of health may adopt a more stringent rule in an area regulated by the
Commission for Public Health or the Environmental Management Commission where, in the
opinion of the local board of health, a more stringent rule is required to protect the public health;
otherwise, the rules of the Commission for Public Health or the rules of the Environmental
Management Commission shall prevail over local board of health rules. However, a local board
of health may not adopt a rule concerning the grading, operating, and permitting of food and
lodging facilities as listed in Part 6 of Article 8 of this Chapter and as defined in
G.S. 130A-247(1), or a rule concerning the permitting of private drinking water wells, as defined
in G.S. 87-85, except for testing standards as set out in G.S. 87-96, and a local board of health
may adopt rules concerning wastewater collection, treatment and disposal systems which are not
designed to discharge effluent to the land surface or surface waters only in accordance with
G.S. 130A-335(c).
    …."
  SECTION 8.(d) All local boards of health rules concerning the permitting of private
drinking water wells, as defined in G.S. 87-85, except for testing standards as set out in
G.S. 87-96 and fees adopted pursuant to G.S. 130A-39, in effect when this section becomes law
are repealed.
APPROVE CERTAIN ADVANCED PRETREATMENT SYSTEMS AS INNOVATIVE
WASTEWATER SYSTEMS
  SECTION 9.(a) G.S. 130A-334 reads as rewritten:
"§ 130A-334. Definitions.
    The following definitions shall apply throughout this Article:
  (1)    "Accepted wastewater system" has the same meaning as in G.S. 130A-343.
  (1a) "Advanced pretreatment" means any biological, chemical, or physical process
  or system used in addition to or in place of a septic tank. Advanced
  pretreatment includes, but is not limited to, aeration, clarification, digestion,
  disinfection, filtration, separation, and settling. Advanced pretreatment
Page 8  Session Law 2026-32  House Bill 376
  effluent shall meet the treatment standards adopted by the Commission for
  better than septic tank effluent quality. Advanced pretreatment shall be part of
  a ground absorption system.
  (1b) "Approved agency for special inspection" means an individual, corporation,
  company, association, or partnership that is objective, competent, and
  independent from the contractor who is responsible for the work that is
  inspected. The agency shall disclose possible conflicts of interest in a manner
  such that objectivity can be confirmed.
  (1b)(1c) "Approved special inspector" means a person who demonstrates
  competence to the satisfaction of the professional engineer who designed the
  wastewater system for the inspection of the construction or operation subject
  to special inspection.
  (1c)(1d) "Construction" means any work at the site of placement done for the
  purpose of preparing a residence, place of business or place of public assembly
  for initial occupancy, or subsequent additions or modifications which increase
  sewage flow.
  (1d)(1e) "Construction observation" means the visual observation of the
  construction and installation of the wastewater system for general
  conformance with the construction documents prepared by the professional
  engineer who designed the wastewater system. Construction observation that
  is conducted by the professional engineer who designed the wastewater
  system does not include or waive the requirement to conduct special
  inspections.
  (1e)(1f) "Conventional wastewater system" has the same meaning as in
  G.S. 130A-343.
  (1f)(1g) "Department" means the Department of Health and Human Services.
  (1g)(1h) "Engineered option permit" means an on-site wastewater system that is
  permitted pursuant to the rules adopted by the Commission in accordance with
  this Article, meets the criteria established by G.S. 130A-336.1, and is
  designed by a professional engineer who is licensed under Chapter 89C of the
  General Statutes who has expertise in the design of on-site wastewater
  systems.
  (1h)(1i) "Ground absorption system" means a system of tanks, treatment units,
  nitrification fields, and appurtenances for wastewater collection, treatment,
  and subsurface disposal.
  …
  (7b) "Pretreatment" means any biological, chemical, or physical process or system
  for improving wastewater quality and reducing wastewater constituents prior
  to final treatment and disposal in a subsurface wastewater system and
  includes, but is not limited to aeration, clarification, digestion, disinfection,
  filtration, separation, and settling.
  …."
  SECTION 9.(b) G.S. 130A-335(f) reads as rewritten:
    "(f)   The rules of the Commission and the rules of the local board of health shall classify
systems of wastewater collection, treatment and disposal according to size, type of treatment and
any other appropriate factors. The rules shall provide construction requirements, including
advanced pretreatment and system control requirements, standards for operation, maintenance,
monitoring, reporting, and ownership requirements for each classification of systems of
wastewater collection, treatment and disposal in order to prevent, as far as reasonably possible,
any contamination of the land, groundwater and surface waters. The Department and local health
departments may impose conditions on the issuance of permits and may revoke the permits for
House Bill 376  Session Law 2026-32  Page 9
failure of the system to satisfy the conditions, the rules, or this Article. Permits other than
improvement permits shall be valid for a period prescribed by rule. Improvement permits shall
be valid upon a showing satisfactory to the Department or the local health department that the
site and soil conditions are unaltered, that the facility, design wastewater flow, and wastewater
characteristics are not increased, and that a wastewater system can be installed that meets the
permitting requirements in effect on the date the Improvement Permit was issued. Improvement
permits for which a plat is provided shall be valid without expiration. Improvement permits for
which a site plan is provided shall be valid for five years. The period of time for which the permit
is valid and a statement that the permit is subject to revocation if the site plan or plat, whichever
is applicable, or the intended use changes shall be displayed prominently on both the application
form for the permit and the permit."
  SECTION 9.(c) G.S. 130A-336.1(e)(1) reads as rewritten:
  "(1) The professional engineer designing the proposed wastewater system shall use
  recognized principles and practices of engineering and applicable rules of the
  Commission in the calculations and design of the wastewater system. The
  investigations and findings of the professional engineer shall include, at a
  minimum, the information required in rules adopted by the Commission
  pursuant to G.S. 130A-335(e). The professional engineer may, at the
  engineer's discretion, employ advanced pretreatment technologies not yet
  approved in this State."
  SECTION 9.(d) This section is effective when it becomes law and applies to
applications for innovative wastewater system approval filed with the Commission on or after
that date.
  SECTION 10.(a) G.S. 130A-343(g) reads as rewritten:
    "(g) Innovative Systems. – A manufacturer of a wastewater system for on-site subsurface
use may apply for and be considered for innovative system status by the Department in one of
the following ways:
  (1)     If the wastewater system has been approved as a provisional wastewater
  system pursuant to subsection (f) of this section, the manufacturer may apply
  to have the system approved as an innovative wastewater system based on
  successful completion of the evaluation protocols established pursuant to
  subsection (d) of this section.
  (2)     If the wastewater system has not been evaluated or approved as a provisional
  wastewater system pursuant to subsection (f) of this section, the manufacturer
  may apply to the Department to have the system approved as an innovative
  wastewater system on the basis of comparable research and testing conducted
  in other states. The manufacturer shall provide the Department with the data
  and findings of all evaluations of the performance of the system that have been
  conducted in any state by or on behalf of the manufacturer. The manufacturer
  shall also provide the Department with a summary of the data and findings of
  all other evaluations of the performance of the system that are known to the
  manufacturer.
  (3)     If the wastewater system advanced pretreatment system has not been
  evaluated or approved as a provisional system pursuant to subsection (f) of
  this section, but has been evaluated approved under protocol established by a
  nationally recognized certification body for at least two consecutive years,
  body, has been found to perform acceptably based on the criteria of the
  protocol, and is designed and will be installed in a manner consistent with the
  system evaluated and approved by the nationally recognized certification
  body, the manufacturer may apply to have the system approved as an
  innovative wastewater system.system, and the Department shall approve the
Page 10  Session Law 2026-32  House Bill 376
  application and issue an innovative wastewater system approval in accordance
  with rules adopted by the Commission upon verifying (i) the protocol testing
  dataset includes a minimum of 55 influent and effluent datasets that include
  the applicable constituents identified in rules adopted by the Commission and
  obtained from testing for a minimum of 26 weeks, with protocol sampling
  conducted during all weeks of the testing period, (ii) the protocol testing data
  complies with the applicable effluent standards identified in rules adopted by
  the Commission, (iii) the nationally recognized certification body's approval,
  and (iv) that the design and installation plans are consistent with that approval.
  When a separate disinfection process or system is proposed, fecal coliform
  datasets are not required if the disinfection technology is approved by a
  nationally recognized certified body. This subdivision shall not apply to a
  manufacturer requesting innovative approval as both an advanced
  pretreatment and dispersal system.
   …."
  SECTION 10.(b) The Commission for Public Health may adopt temporary and
permanent rules to implement this section.
  SECTION 10.(c) This section is effective when it becomes law and applies to
applications for innovative wastewater system approval filed with the Commission on or after
that date.
DEQ/DHHS PRIVATE WELL RULEMAKING TECHNICAL CORRECTION
  SECTION 11. G.S. 130A-4(d) reads as rewritten:
    "(d) When requested by the Secretary of Environmental Quality,Secretary, a local health
department shall enforce the rules of the Commission and the rules adopted by the Environmental
Management Commission pursuant to G.S. 87-87 G.S. 87-87(6) and (7) under the supervision of
the Department of Environmental Quality.Quality and the Department of Health and Human
Services. The local health department shall utilize local staff authorized by the Department of
Environmental QualityHealth and Human Services to enforce the specific rules."
SEVERABILITY & EFFECTIVE DATE
  SECTION 12.(a) If any provision of this act or its application is held invalid, the
invalidity does not affect other provisions or applications of this act that can be given effect
without the invalid provisions or application and, to this end, the provisions of this act are
severable.
House Bill 376  Session Law 2026-32  Page 11
  SECTION 12.(b) Except as otherwise provided, this act is effective when it becomes
law.
  In the General Assembly read three times and ratified this the 25th day of June, 2026.
  s/ Rachel Hunt
  President of the Senate
  s/ John R. Bell, IV
  Presiding Officer of the House of Representatives
  s/ Josh Stein
  Governor
Approved 3:23 p.m. this 2nd day of July, 2026
Page 12  Session Law 2026-32  House Bill 376