State Environmental Policy Act (SEPA)


What is SEPA?

The North Carolina Environmental Policy Act of 1971 (SEPA) requires state agencies to review and report the environmental effects of all activities that: 1) involve a state action, 2) involve an expenditure of public money or private use of public land, and 3) have a potential environmental effect. This may include some local government projects. If SEPA applies, the state agency involved must process an environmental document through the State Clearinghouse under the North Carolina Department of Administration before a permit, license, grant, or other state authority can be completed.

When does SEPA Apply?

For a project or activity to be subject to the North Carolina Environmental Policy Act (SEPA) it must involve all three of the following:

  1. an action by a state agency (such as land and money appropriations, awarding grants, issuing permits, or granting licenses); and,
  2. an expenditure of public monies or private use of public land; and,
  3. has a potential detrimental environmental effect upon natural resources, public health and safety, natural beauty, or historical or cultural elements of the state’s common inheritance.

SEPA applies when all three criteria are present. (General Statute 113A, sec. 1 to 13)

Defining Environmental Impact

Defining the potential impact a project or activity may have on the environment and other resources is generally the most difficult criteria to assess. Making this determination is necessary to evaluate the applicability of SEPA and the type of environmental documents that must be prepared.

Most state agencies have developed rules establishing minimum thresholds based on the size and type of the project or activity. In cases where the project or activity falls below the minimum threshold, agencies may be exempt from SEPA, or they may be required to submit only general environmental information. However, if there is reasonable evidence that a project or activity has significant impacts, a state agency can call for an environmental document to be prepared, even if it is normally listed as exempt from SEPA. If the project or activity is above the minimum thresholds established or if there are questions regarding the applicability of SEPA, you should contact the appropriate agency for guidance.

If a project has federal involvement, it may require the preparation of a report under the National Environmental Policy Act (NEPA). If a report has been prepared for NEPA, and submitted for review through the State Clearinghouse process, then additional filing under the North Carolina Environmental Policy Act (SEPA) is not required.

SEPA Review Process and Time Frame

The type of environmental document a state agency is required to provide is based on the potential for environmental harm. An Environmental Assessment (EA) or a more complex Environmental Impact Statement (EIS) must be prepared to provide the needed environmental information. Specific guidelines for preparing an EA and an EIS have been established by the N.C. Department of Administration (DOA). Additional guidance may be available from the state agency reviewing the activity.

All environmental documents (EA or EIS) are submitted for processing through the State Clearinghouse, which is administered by the N.C. Department of Administration (DOA). The Clearinghouse then circulates these environmental documents, for review and comment, to all environmental divisions and other relevant state and local agencies. Public notification of the environmental documents available for review is through the Environmental Bulletin distributed by the Clearinghouse. Upon review of the comments received, the DOA submits a recommendation back to the state agency making the SEPA compliance review. Some state agencies require submission of the EA or EIS environmental documents to their office, for approval prior to submission to the Clearinghouse.

The State Clearinghouse review process generally takes 30 to 45 days after publication in the Environmental Bulletin. The review and decision-making process for a permit, license, grant, or other state authority can take much longer, depending on the requirements of the specific state agency. And, depending on the complexity and controversial nature of a project, an even greater amount of time may be required to prepare an Environmental Assessment or an Environmental Impact Statement.

For more information . . .

The Environmental Permit Information Center (EPIC) can assist with any questions regarding the SEPA processes or provide additional contacts for more detailed information. EPIC may be reached at 919-733-1398 or toll-free at 888-368-2640.