NC HB 376 Introduced with Major Wastewater and Well Regulation Changes
Yesterday, House Bill 376 was introduced in the North Carolina General Assembly, making targeted changes to on-site wastewater and well regulations. While the bill seeks to streamline processes, some provisions raise concerns regarding local rule enforcement, permit revocations, and regulatory oversight. The key updates in the bill include:
Board and Certification Updates
Board Term Limits: For the first time, the bill establishes term limits for members of the On-Site Wastewater Contractors and Inspectors Certification Board, restricting members to two consecutive three-year terms. This provision follows ongoing concerns that some current board members have served since the board’s formation and have refused to step down or voluntarily implement term limits. By mandating turnover, the bill aims to bring fresh perspectives to the board and prevent stagnation, though how this transition will be managed remains unclear. We encourage anyone interested in serving on the NCOWCICB to reach out to our team for more information on seeking appointment to the board.
Grade II Contractors and Inspector Certification Pathway: The bill exempts Grade II contractors from having to complete Level IV installer requirements in order to become an inspector. However, this language is imprecise and should be revised for clarity. There is concern that the bill as written does not clearly define the intended exemption, and we will work with the Certification Board and the legislators to refine this provision.
Insurance Coverage Requirements: The bill mandates that installers, inspectors, evaluators, and Private Compliance Inspectors (PCIs) regulated by the NCOWCICB carry insurance and provide proof at both initial licensure and annual renewal. While this represents a major shift for the industry, it is generally viewed as a positive change. However, the language in the bill is unclear, as it requires both professional liability and errors and omissions coverage “where applicable.” Since errors and omissions is a type of professional liability insurance, this section needs revision to better clarify the insurance requirements.
Health Department and Local Regulation Changes
Changes Driven by Inconsistent Local Regulations: This section of the bill appears to be a response to ongoing concerns regarding the lack of uniform state wastewater regulations. Currently, some counties have adopted their own rules and regulations, creating confusion and inconsistencies within the industry. There have been accusations that these local rules codify preferences and policies rather than being truly necessary for protecting public health and the environment. This bill appears to be part of a broader movement to reduce or eliminate local rules that exceed state standards.
Increased State Oversight of Local Rulemaking: The bill creates a structured and transparent process for modifying local wastewater rules by requiring local health departments to obtain approval from the Department of Health and Human Services (DHHS) before adopting modifications.
Rules of Evidence for Local Modifications: The bill mandates that DHHS must establish a rules-based process to evaluate local rule proposals, including public hearings and public notice before any modifications are approved or denied.
State Not Defending Local Regulations: Rather than eliminating local regulations entirely, the bill creates procedural hurdles by stating that the State will not be responsible for defending local health departments when enforcing their own rules. This approach appears to discourage local rulemaking without outright banning it, making it more difficult for local health departments to enforce stricter-than-state standards.
Permitting and Compliance Updates
Improvement Permits No Longer Expire: The bill specifies that improvement permits issued with a plat or site plan will no longer have an expiration date, potentially leading to outdated permits being used on significantly altered sites.
Permit Warnings and Revocations: A new provision requires that permits prominently state they are subject to revocation or amendment only if the property owner consents. This change could strip local health departments of their authority to revoke permits when there have been significant site changes, such as altered soil conditions, water table fluctuations, or land development that impacts wastewater system viability. Critics worry that this could increase environmental risks if site conditions have changed dramatically but a previously issued permit remains valid.
Pre-Construction Verification: Health departments may require a site verification before system installationbut cannot require additional geological soil assessments unless the property owner agrees.
Operation Permit Restrictions: A local health department cannot withhold an operation permit if the wastewater system was installed in compliance with the original permit, unless the system owner agrees in writing to additional conditions. This provision raises concerns about enforcement limitations, as it could prevent health officials from ensuring systems meet public health and safety standards before operation.
Well Regulation Changes
Private Drinking Water Well Task Force Established: A task force will study ways to streamline well regulations, including the potential elimination of local well programs in favor of a statewide system and whether to consolidate regulatory oversight into a single agency.
Expediting Well Permitting by Allowing Certified Professionals to Approve Sites: A new provision would allow a person who is both a licensed well contractor and an Authorized On-Site Wastewater Evaluator (AOWE), Installer, or Inspector to site and permit wells without requiring local health department involvement. The goal appears to be accelerating well permit approvals, reducing the time property owners and developers wait for permits.
Well Site Evaluation Restrictions:
A well contractor cannot conduct the required field investigation for a well site they are installing, ensuring independent assessments.
The Department and local health departments will not be liable for site evaluations performed by certified well contractors.
Concerns and Next Steps
House Bill 376 makes several significant changes to North Carolina’s on-site wastewater and well regulations. While some provisions, such as mandating insurance coverage, creating uniform regulations, and expediting well permitting, are seen as beneficial, other sections raise serious concerns about their potential unintended consequences.
The lack of clarity in the Grade II contractor exemption should be revised to ensure fair and appropriate inspector certification requirements.
The insurance language should be adjusted to avoid redundancy and ensure clear coverage expectations.
The restrictions on permit revocations could undermine local health officials' ability to respond to changing site conditions, which may pose risks to public health and environmental safety.
The approach to local rules is notable—not eliminating them outright but instead making enforcement more difficult, which could create new challenges for both industry professionals and regulators.
As the bill moves forward, we will work with DHHS, stakeholders, and legislators in hope to refine these provisions and ensure that any changes serve both the industry and public health effectively.