A proposal at the North Carolina General Assembly could reshape how parking lots are built and help reduce pollution from paved surfaces like roads and driveways.

House Bill 369, known as the Parking Lot Reform and Modernization Act, advanced last week in the House. The current version of the bill focuses on two changes: limiting local parking mandates and banning the use of certain toxic pavement sealants.

As rain drenches much of the state this week, the environmental stakes are hard to ignore. Stormwater runoff from paved surfaces is one of the leading sources of water pollution in North Carolina, carrying oil, chemicals and other contaminants into streams and rivers.

In a blog post, Catawba Riverkeeper Ellie Riggs called the proposed bill “a critical step to protect waterways, businesses, and communities from runoff and flooding.”

According to the U.S. Geological Survey, just one inch of rain on an acre of pavement can generate more than 27,000 gallons of runoff. 

“Reducing unnecessary pavement and banning toxic sealants are crucial steps to protect our waterways,” Riggs wrote.

What the bill would do

The current version of HB 369 includes two main provisions:

• Parking reform: Cities and counties would no longer be allowed to require more parking spaces than a developer chooses to build. It also limits local authority to mandate oversized parking spaces, except in cases like handicapped or diagonal parking. Supporters say the change could reduce unnecessary pavement, lower development costs and allow for more flexible land use.
• Pollution prevention: Beginning in 2026, the bill would ban the sale and use of pavement sealants containing high levels of polycyclic aromatic hydrocarbons, or PAHs. Studies show these chemicals, found in coal tar-based products, can be harmful to human health and aquatic life. Several cities in North Carolina and across the U.S. have already banned these products.

The bill also includes a $5,000 appropriation to the Department of Commerce to help educate property owners about potential savings from reducing the size or number of parking spaces.

What changed from the original draft

Earlier versions of the bill also included language aimed at limiting how local governments regulate stormwater during redevelopment projects. Specifically, it would have prevented cities and counties from requiring new runoff controls on areas that were already paved or developed, particularly for small-scale residential projects.

That draft language allowed local governments to require stormwater capture for up to 50 percent of runoff from an entire redevelopment site and encouraged the use of incentives for capturing more. Supporters argued the section would help promote redevelopment by setting clear limits on what could be required.

However, some environmental advocates and local officials raised concerns that it could weaken efforts to manage flooding and water pollution, especially in areas facing growing stormwater challenges.

In response to those concerns, lawmakers removed the stormwater language from the most recent version of the bill. Stormwater rules would remain unchanged, leaving cities and counties with the authority to require runoff controls as they see fit.

The bill remains under consideration in the House State and Local Government Committee. It must pass both the House and Senate before becoming law.