A recent decision by Superior Court Judge Donald Stephens requires that the Titan America/Carolinas Cement project be subject to the State Environmental Policy Act (SEPA).  Much more concerning to our efforts is that this ruling would require that private economic development projects, that are eligible for state or local incentives, could also be subject to the act.  SEPA is an intensive review process for state construction projects with a potential detrimental environmental impact, never intended to have application in the private development sector.

Projects or activities subject to SEPA require all three of the following conditions to be met:

1.   An action by a state agency (issuing permits);

2.   An expenditure of public money or private use of public land; and

3.   A potential detrimental environmental effect upon natural resources, public health and safety, natural beauty, or historical

SEPA was intended for major state construction projects like highways, reclaimed water utilization systems, surface disposal sites, and major discharge facilities impacting a river basin.  SEPA requires that the state must first study the project, get public input and consider all possible options, which can add years to the construction process.  Most importantly, a SEPA review does not provide increased environmental protections, it is simply an enhanced review process.

For almost 30 years, SEPA has been used exclusively for major state construction projects – never applying to private economic development projects.  Judge Stephens’ decision is in direct conflict with the NC Department of Administration and NC Department of Environment and Natural Resources active and historical application of SEPA.

This recent decision can have a negative, long-term impact on economic development and job creation projects throughout North Carolina, creating significant delays before a company could begin construction.  Judge Stephens’ order would place undue burden on companies that want to expand in North Carolina as well as companies considering new construction projects for relocation. 

We need clarity in the application of SEPA to ensure that private economic development projects are not impacted, and that our state can continue to enjoy a strong reputation as a premier location for business and industry.