North Carolina HB 1136: Cape Fear Interbasin Transfers Moratorium/Environmental Management Commission Interbasin Transfers Reductions.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1136

Short Title: Cape Fear IBT Moratorium/EMC IBT Reductions. (Public)
Sponsors: Representative Davis.
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Agriculture and Environment, if favorable, Appropriations, if favorable, Rules,
Calendar, and Operations of the House
May 4, 2026
*H1136-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO IMPOSE A LIMITED MORATORIUM ON INITIATING CERTAIN SURFACE 2
WATER TRANSFERS FROM THE CAPE FEAR RIVER BASIN, TO DIRECT THE 3
NORTH CAROLINA COLLABORATORY TO STUDY THE CAPE FEAR RIVER 4
BASIN, AND TO MAKE CERTAIN REVISIONS TO THE ENVIRONMENTAL 5
MANAGEMENT COMMISSION'S AUTHORITY TO REQUIRE REDUCTIONS TO 6
EXISTING SURFACE WATER TRANSFERS FROM ANY RIVER BASIN IN THE 7
STATE. 8
The General Assembly of North Carolina enacts: 9
10
PART I. CAPE FEAR WATER RESOURCES 11
12
LEGISLATIVE PURPOSE AND FINDINGS 13
SECTION 1.(a) Title. ‒ This Part shall be known as the Cape Fear Water Resources 14
Modernization and Regionalization Act of 2026. 15
SECTION 1.(b) Legislative Findings. – The General Assembly finds that the State's 16
laws regulating surface water transfers, originally enacted more than 30 years ago, should be 17
comprehensively reviewed and evaluated for updates in light of the State's and, in particular, the 18
Cape Fear River Basin's tremendous economic and population growth and the impacts of drought 19
and natural disasters on riverine and water reservoir systems over that period. The General 20
Assembly finds that the approval of new or modified transfers that substantially diminish the 21
overall hydrologic flow, current and future water storage capacity, and water quality of the Cape 22
Fear River Basin should be temporarily paused while this review and evaluation is ongoing. 23
SECTION 1.(c) Legislative Purpose. – The purpose of this Part is to ensure the 24
sustainable use and protection of the Cape Fear River Basin's water resources by temporarily 25
pausing new surface water transfers from the upper reaches of the Cape Fear River Basin while 26
a comprehensive review is conducted. 27
28
MORATORIUM ON NEW OR INCREASED INTERBASIN TRANSFERS FROM THE 29
UPPER REACHES OF THE CAPE FEAR RIVER BASIN 30
SECTION 2.(a) Definitions. – The definitions set forth in G.S. 143-215.22G apply 31
to this section. 32
SECTION 2.(b) Moratorium on New or Increased Interbasin Transfers. – There is 33
hereby established a moratorium on the initiation of new surface water transfers or increases in 34

General Assembly Of North Carolina Session 2025
Page 2 House Bill 1136-First Edition
existing surface water transfers from any source in the Cape Fear River Basin located upstream 1
of Cape Fear Lock and Dam #2 in Bladen County. The Environmental Management Commission 2
shall not issue a certificate authorizing a new surface water transfer or an increase in an existing 3
surface water transfer from any source in the Cape Fear River Basin located upstream of Cape 4
Fear Lock and Dam #2. 5
SECTION 2.(c) Exceptions. – The moratorium established by subsection (b) of this 6
section shall not prohibit the following surface water transfers from the Cape Fear River Basin: 7
(1) Any existing transfers authorized by the Environmental Management 8
Commission or else lawfully initiated prior to the effective date of this act. No 9
person who maintains an existing transfer under this subdivision shall increase 10
the amount of surface water transferred to another river basin. 11
(2) Any emergency transfer of surface water authorized by the Secretary of 12
Environmental Quality under G.S. 143-215.22L(q) or G.S. 143-355.3. 13
SECTION 2.(d) Moratorium Duration. – This section is effective when it becomes 14
law and expires June 1, 2030. 15
16
CAPE FEAR RIVER BASIN STUDY 17
SECTION 3.(a) Study. – The North Carolina Collaboratory at the University of 18
North Carolina at Chapel Hill (Collaboratory) shall study the Cape Fear River Basin to determine 19
its reliable yield of water supply and make recommendations for any legislative changes 20
necessary to ensure the sustainability of existing and future in-basin water uses. The 21
Collaboratory shall include all of the following in its study: 22
(1) A catalog of the existing water uses and users of the Cape Fear River Basin. 23
(2) An assessment of the reliable yield of water supply of the Cape Fear River 24
Basin, including an assessment for each of its subbasins and major tributaries. 25
This assessment shall include a scientific evaluation of the quantity of water 26
that can be dependably withdrawn or transferred under current and projected 27
future hydrologic conditions without causing unacceptable environmental or 28
economic impacts to in-basin uses. 29
(3) An analysis of the adequacy of the environmental impact study requirements 30
for interbasin transfers from sources in the Cape Fear River Basin located 31
upstream of Cape Fear Lock and Dam #2. 32
(4