State House Passes Regulatory Reform Bill

The NC House of Representatives today gave final approval to a 44-page Regulatory Reform bill that contains several critical provisions for residential and commercial developers.

SB 131, ‘Regulatory Reform Act of 2016-2017’, was approved by the House on Thursday by a vote of 84-27, and now heads back to the Senate for a concurrence vote. Among the dozens of reforms it contains, two are of particular interest to developers:

Energy Efficiency Code Exemptions – Section 1.4 of the bill excludes from state Energy Efficiency Code requirements any buildings with the following use classifications:

  • Factory Group F
  • Storage Group S
  • Utility & Miscellaneous Group U

Furthermore, an amendment suggested by REBIC and introduced by Representative Bill Brawley ensures that the energy code exclusion ‘shall apply to the entire floor area of any structure’ included in the provision. This language was intended to prevent the office or showroom portion of a warehouse, industrial or manufacturing building from having to meet energy efficiency code requirements, when the majority of the structure does not.

Stream Mitigation Requirements – Section 3.13 of the bill amends stream mitigation requirements to allow developers to disturb up to 300′ of stream bed before mitigation is required, unless otherwise prohibited by federal law. Current law requires mitigation whenever 150′ or more is disturbed. This provision would bring North Carolina in line with stream mitigation requirements in neighboring states.

REBIC is continuing to review additional provisions in the Regulatory Reform bill, and will provide additional updates in the coming weeks on how this important piece of legislation affects your business.

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