GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

S	4 

SENATE BILL 1217*
Agriculture/Environment/Natural Resources Committee Substitute Adopted 6/12/96 
Finance Committee Substitute No. 2 Adopted 6/18/96
Fourth Edition Engrossed 6/19/96

Short Title:  Animal Waste Recommendations.	(Public)

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Sponsors:

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Referred to:  

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May 20, 1996

A BILL TO BE ENTITLED
AN ACT TO IMPLEMENT RECOMMENDATIONS OF THE BLUE RIBBON STUDY COMMISSION ON AGRICULTURAL WASTE.
The General Assembly of North Carolina enacts:
PART I.	PERMITS/OPERATIONS REVIEWS/INSPECTIONS/FEES FOR ANIMAL
WASTE MANAGEMENT SYSTEMS FOR ANIMAL OPERATIONS
Section 1.  Article 21 of Chapter 143 of the General Statutes is amended by adding a new Part to read:
"Part 1A.  Animal Waste Management Systems.
"§ 143-215.10A.  Legislative findings and intent.
The General Assembly finds that animal operations provide significant economic and other benefits to this State. The growth of animal operations in recent years has increased the importance of good animal waste management practices to protect water quality.  It is critical that the State balance growth with prudent environmental safeguards.  It is the intention of the State to promote a cooperative and coordinated approach to animal waste management among the agencies of the State with a primary emphasis on technical assistance to farmers.  To this end, the General Assembly intends to establish a permitting program for animal waste management systems that will protect water quality and promote innovative systems and practices while minimizing the regulatory burden.  Technical assistance, through operations reviews, will be provided by the Division of Soil and Water Conservation.  Permitting, inspection, and enforcement will be vested in the Division of Environmental Management.
"§ 143-215.10B.  Definitions.
As used in this Part:
(1)	'Animal operation' means any agricultural farming activity involving 250 or more swine, 100 or more confined cattle, 75 or more horses, 1,000 or more sheep, or 30,000 or more confined poultry with a liquid animal waste management system.  Public livestock markets or sales regulated under Articles 35 and 35A of Chapter 106 of the General Statutes shall not be considered animal operations for purposes of this Part.
(2)	'Animal waste' means livestock or poultry excreta or a mixture of excreta with feed, bedding, litter, or other materials from an animal operation.
(3)	'Animal waste management system' means a combination of structures and nonstructural practices serving a feedlot that provide for the collection, treatment, storage, or land application of animal waste.
(4)	'Division' means the Division of Environmental Management of the Department.
(5)	'Feedlot' means a lot or building or combination of lots and buildings intended for the confined feeding, breeding, raising, or holding of animals and either specifically designed as a confinement area in which animal waste may accumulate or where the concentration of animals is such that an established vegetative cover cannot be maintained.  A building or lot is not a feedlot unless animals are confined for 45 or more days, which may or may not be consecutive, in a 12-month period.  Pastures shall not be considered feedlots for purposes of this Part.
(6)	'Technical specialist' means an individual  designated by the Soil and Water Conservation Commission, pursuant to rules adopted by that Commission, to certify animal waste management plans.
"§ 143-215.10C.  Applications and permits.
(a)	No person shall construct or operate an animal waste management system for an animal operation without first obtaining a permit under this Part. The Commission shall develop a system of general permits for animal operations based on species, number of animals, and other relevant factors.
(b)	An animal waste management system shall be designed, constructed, and operated so that the animal operation served by the animal waste management system does not cause pollution in the waters of the State except as may result because of rainfall from a storm event more severe than the 25-year, 24-hour storm.
(c)	The Commission shall act on a permit application as quickly as possible and may conduct any inquiry or investigation it considers necessary before acting on an application.  If the Commission fails to act on an application for a permit, including a renewal of a permit, within 90 days after the applicant submits all information required by the Commission, the application is considered to be approved.
(d)	All applications for permits or for renewal of an existing permit shall be in writing, and the Commission may prescribe the form of the applications.  All applications shall include an animal waste management system plan approved by a technical specialist. The Commission may require an applicant to submit additional information the Commission considers necessary to evaluate the application.   Permits and renewals issued pursuant to this section shall be effective until the date specified therein or until rescinded unless modified or revoked by the Commission.
(e)	Animal waste management plans shall include all of the following components:
(1)	A checklist of potential odor sources and a choice of site-specific, cost-effective remedial best management practices to minimize those sources.
(2)	A checklist of potential insect sources and a choice of site-specific, cost-effective best management practices to minimize insect problems.
(3)	Provisions that set forth acceptable methods of disposing of mortalities.
(4)	Provisions regarding best management practices for riparian buffers or equivalent controls, particularly along perennial streams.
(5)	Provisions regarding the use of emergency spillways and site-specific emergency management  plans that set forth operating procedures to follow during emergencies in order to minimize the risk of environmental damage.
(6)	Provisions regarding periodic testing of waste products used as nutrient sources as close to the time of application as practical and at least within 60 days of the date of application and periodic testing, at least annually, of soils at crop sites where the waste products are applied.  Nitrogen shall be the rate-determining element.  Zinc and copper levels in the soils shall be monitored, and alternative crop sites shall be used when these metals approach excess levels.
(7)	Provisions regarding waste utilization plans that assure a balance between nitrogen application rates and nitrogen crop requirements, that assure that lime is applied to maintain pH in the optimum range for crop production, and that include corrective action, including revisions to the waste utilization plan based on data of crop yields and crops analysis, that will be taken if this balance is not achieved as determined by testing conducted pursuant to subdivision (6) of this subsection.
(8)	Provisions regarding the completion and maintenance of records on forms developed by the Department, which records shall include information addressed in subdivisions (6) and (7) of this subsection, including the dates and rates that waste products are applied to soils at crop sites, and shall be made available upon request by the Department.
(f)	Any operator of an animal operation with a dry litter animal waste management system involving 30,000 or more birds shall develop an animal waste management plan that complies with the testing and record-keeping requirements under subdivisions (6) through (8) of subsection (e) of this section.  Any operator of this type of animal waste management system shall retain records required under this section and by the Department on-site for three years.
(g)	The Commission shall encourage the development of alternative and innovative animal waste management technologies.  The Commission shall provide sufficient flexibility in the regulatory process to allow for the timely evaluation of alternative and innovative animal waste management technologies and shall encourage operators of animal waste management systems to participate in the evaluation of these technologies.  The Commission shall provide sufficient flexibility in the regulatory process to allow for the prompt implementation of alternative and innovative animal waste management technologies that are demonstrated to provide improved protection to public health and the environment.
"§ 143-215.10D.  Operations review.
(a)	The Division, in cooperation with the Division of Soil and Water Conservation, shall develop a reporting procedure for use by technical specialists who conduct operations reviews of animal operations.  The reporting procedure shall be consistent with the Division's inspection procedure of animal operations and with this Part.  The report shall include any corrective action recommended by the technical specialist to assist the owner or operator of the animal operation in complying with all permit requirements.  The report shall be submitted to the Division within 10 days following the operations review unless the technical specialist observes a violation described in G.S. 143-215.10E.  If the technical specialist finds a violation described in G.S. 143-215.10E, the report shall be filed with the Division immediately.
(b)	As part of its animal waste management plan, each animal operation shall have an operations review at least once a year.  The operations review shall be conducted by a technical specialist employed by the Division of Soil and Water Conservation of the Department, a local Soil and Water Conservation District, or the federal Natural Resources Conservation Services working under the direction of the Division of Soil and Water Conservation.
(c)	Operations reviews shall not be performed by technical specialists with a financial interest in any animal operation.
"§ 143-215.10E.  Violations requiring immediate notification.
(a)	Any employee of a State agency or unit of local government lawfully on the premises and engaged in activities relating to the animal operation who observes any of the following violations shall immediately notify the owner or operator of the animal operation and the Division:
(1)	Any direct discharge of animal waste into the waters of the State.
(2)	Any deterioration or leak in a lagoon system that poses an immediate threat to the environment.
(3)	Failure to maintain adequate storage capacity in a lagoon that poses an immediate threat to public health or the environment.
(4)	Overspraying animal waste either in excess of the limits set out in the animal waste management plan or where runoff enters waters of the State.
(5)	Any discharge that bypasses a lagoon system.
(b)	Any employee of a federal agency lawfully on the premises and engaged in activities relating to the animal operation who observes any of the above violations is encouraged to immediately notify the Division.
"§ 143-215.10F.  Inspections.
The Division shall conduct inspections of all animal operations that are subject to a permit under G.S. 143-215.10C at least once a year to determine whether the system is causing a violation of water quality standards and whether the system is in compliance with its animal waste management plan or any other condition of the permit.
"§ 143-215.10G.  Fees for animal waste management systems.
The Department shall charge an annual permit fee of all animal operations that are subject to a permit under G.S. 143-215.10C for animal waste management systems according to the following schedule:
(1)	For a system with a design capacity of 38,500 or more and less than 100,000 pounds steady state live weight, fifty dollars ($50.00).
(2)	For a system with a design capacity of 100,000 or more and less than 800,000 pounds steady state live weight, one hundred dollars ($100.00).
(3)	For a system with a design capacity of 800,000 pounds or more state live weight, two hundred dollars ($200.00)."
Sec. 2.  G.S. 143-215.1(a) reads as rewritten:
"(a)	Activities for Which Permits Required. – No person shall do any of the following things or carry out any of the following activities unless that person has received a permit from the Commission and has complied with all conditions set forth in the permit:
(1)	Make any outlets into the waters of the State.
(2)	Construct or operate any sewer system, treatment works, or disposal system within the State.
(3)	Alter, extend, or change the construction or method of operation of any sewer system, treatment works, or disposal system within the State.
(4)	Increase the quantity of waste discharged through any outlet or processed in any treatment works or disposal system to any extent that would result in any violation of the effluent standards or limitations established for any point source or that would adversely affect the condition of the receiving waters to the extent of violating any applicable standard.
(5)	Change the nature of the waste discharged through any disposal system in any way that would exceed the effluent standards or limitations established for any point source or that would adversely affect the condition of the receiving waters in relation to any applicable standards.
(6)	Cause or permit any waste, directly or indirectly, to be discharged to or in any manner intermixed with the waters of the State in violation of the water quality standards applicable to the assigned classifications or in violation of any effluent standards or limitations established for any point source, unless allowed as a condition of any permit, special order or other appropriate instrument issued or entered into by the Commission under the provisions of this Article.
(7)	Cause or permit any wastes for which pretreatment is required by pretreatment standards to be discharged, directly or indirectly, from a pretreatment facility to any disposal system or to alter, extend or change the construction or method of operation or increase the quantity or change the nature of the waste discharged from or processed in that facility.
(8)	Enter into a contract for the construction and installation of any outlet, sewer system, treatment works, pretreatment facility or disposal system or for the alteration or extension of any such facility.
(9)	Dispose of sludge resulting from the operation of a treatment works, including the removal of in-place sewage sludge from one location and its deposit at another location, consistent with the requirement of the Resource Conservation and Recovery Act and regulations promulgated pursuant thereto.
(10)	Cause or permit any pollutant to enter into a defined managed area of the State's waters for the maintenance or production of harvestable freshwater, estuarine, or marine plants or animals.
(11)	Cause or permit discharges regulated under G.S. 143-214.7 that result in water pollution.
(12)	Construct or operate an animal waste management system, as defined in G.S. 143-215.10B, without obtaining a permit under Part 1A of this Article.
(a1)	In the event that both effluent standards or limitations and classifications and water quality standards are applicable to any point source or sources and to the waters to which they discharge, the more stringent among the standards established by the Commission shall be applicable and controlling.
(a2)	No permit shall be granted for the disposal of waste in waters classified as sources of public water supply where the head of the agency that administers the public water supply program pursuant to Article 10 of Chapter 130A of the General Statutes, after review of the plans and specifications for the proposed disposal facility, determines and advises the Commission that any outlet for the disposal of waste is, or would be, sufficiently close to the intake works or proposed intake works of a public water supply as to have an adverse effect on the public health.
(a3)	If the Commission denies an application for a permit, the Commission shall state in writing the reason for the denial and shall also state the Commission's estimate of the changes in the applicant's proposed activities or plans that would be required in order that the applicant may obtain a permit."
PART II.	SPECIAL ORDERS OF CONSENT/PENALTIES
Sec. 3.  G.S. 143-215.2(a) reads as rewritten:
"(a)	Issuance. – The Commission may, after the effective date of classifications, standards and limitations adopted pursuant to G.S. 143-214.1 or G.S. 143-215, or a water supply watershed management requirement adopted pursuant to G.S. 143-214.5, issue, and from time to time modify or revoke, a special order, or other appropriate instrument, to any person whom it finds responsible for causing or contributing to any pollution of the waters of the State within the area for which standards have been established. The order or instrument may direct the person to take, or refrain from taking an action, or to achieve a result, within a period of time specified by the special order, as the Commission deems necessary and feasible in order to alleviate or eliminate the pollution.  The Commission is authorized to enter into consent special orders, assurances of voluntary compliance or other similar documents by agreement with the person responsible for pollution of the water, subject to the provisions of subsection (a1) of this section regarding proposed orders, and the consent order, when entered into by the Commission after public review, shall have the same force and effect as a special order of the Commission issued pursuant to hearing.  "
Sec. 4.  G.S. 143-215(e) reads as rewritten:
"(e)	Except as required by federal law or regulations, the Commission may not adopt effluent standards or limitations applicable to animal and poultry feeding operations. Notwithstanding the foregoing, where manmade pipes, ditches, or other conveyances have been constructed for the purpose of willfully discharging pollutants to the waters of the State, the Secretary shall have the authority to assess fines and penalties not to exceed ten thousand dollars ($10,000) for the first offense. The definitions and provisions of 40 Code of Federal Regulations § 122.23 (July 1, 1990 Edition) shall apply to this subsection."
PART III.	CERTIFICATION/TRAINING OF ANIMAL WASTE MANAGEMENT SYSTEM OPERATORS
Sec. 5.  G.S. 143B-301(a) reads as rewritten:
"(a)	The Water Pollution Control System Operators Certification Commission shall consist of 11 members.  Two members shall be from the animal agriculture industry and shall be appointed by the Commissioner of Agriculture. Nine members shall be  appointed by the Secretary of Environment, Health, and Natural Resources with the approval of the Environmental Management Commission with the following qualifications:
(1)	Two members shall be currently employed as water pollution control facility operators, water pollution control system superintendents or directors, water and sewer superintendents or directors, or equivalent positions with a North Carolina municipality;
(2)	One member shall be manager of a North Carolina municipality having a population of more than 10,000 as of the most recent federal census;
(3)	One member shall be manager of a North Carolina municipality having a population of less than 10,000 as of the most recent federal census;
(4)	One member shall be employed by a private industry and shall be responsible for supervising the treatment or pretreatment of industrial wastewater;
(5)	One member who is a faculty member of a four-year college or university and whose major field is related to wastewater treatment;
(6)	One member who is employed by the Department of Environment, Health, and Natural Resources and works in the field of water pollution control, who shall serve as Chairman of the Commission;
(7)	One member who is employed by a commercial water pollution control system operating firm; and
(8)	One member shall be currently employed as a water pollution control system collection operator, superintendent, director, or equivalent position with a North Carolina municipality."
Sec. 6.  (a) The title of Article 3 of Chapter 90A reads as rewritten:
"ARTICLE 3.
Certification of Water Pollution Control System 
Operators and Animal Waste Management System Operators.
Part 1.  Certification of Water Pollution Control System Operators."
(b)	Article 3 of Chapter 90A of the General Statutes, as amended by subsection (a) of this section, is amended by adding a new Part to read:
"Part 2.  Certification of Animal Waste Management System Operators.
"§ 90A-47.  Purpose.
The purpose of this Part is to reduce nonpoint source pollution in order to protect the public health and to conserve and protect the quality of the State's water resources, to encourage the development and improvement of the State's agricultural land for the production of food and other agricultural products, and to require the examination of animal waste management system operators and certification of their competency to operate or supervise the operation of those systems.
"§ 90A-47.1.  Definitions.  
(a)	As used in this Part:
(1)	'Animal waste' means liquid residuals resulting from an animal operation that are collected, treated, stored, or applied to the land through an animal waste management system.
(2)	'Application' means laying, spreading on, irrigating, or injecting animal waste onto land.
(3)	'Commission' means the Water Pollution Control System Operators Certification Commission.
(4)	'Owner' means the person who owns or controls the land used for agricultural purposes or the person's lessee or designee.
(5)	'Operator in charge' means a person who holds a currently valid certificate to operate an animal waste management system and who has primary responsibility for the operation of the system.
(b)	The definitions set out in G.S. 143-215.10B, other than the definition of 'animal waste', apply to this Part.
"§ 90A-47.2.  Certified operator in charge required; qualifications for certification.
(a)	No owner or other person in control of an animal operation having an animal waste management system shall allow the system to be operated by a person who does not hold a valid certificate as an operator in charge of an animal waste management system issued by the Commission.  No person shall perform the duties of an operator in charge of an animal waste management system without being certified under the provisions of this Part.  Other persons may assist in the operation of an animal waste management system so long as they are directly supervised by an operator in charge who is certified under this Part.
(b)	The owner or other person in control of an animal operation may contract with a certified animal waste management system operator in charge to provide for the operation of the animal waste management system at that animal operation.  The Commission may adopt rules requiring that any certified animal waste management system operator in charge who contracts with one or more owners or other persons in control of an animal operation file an annual report with the Commission as to the operation of each system at which the services of the operator in charge are provided.
"§ 90A-47.3.  Qualifications for certification; training; examination.
(a)	The Commission shall develop and administer a certification program for animal waste management system operators in charge that provides for receipt of applications, training and examination of applicants, and investigation of the qualifications of applicants.
(b)	The Commission, in cooperation with the Division of Environmental Management of the Department of Environment, Health, and Natural Resources, and the Cooperative Extension Service, shall develop and administer a training program for animal waste management system operators in charge.  An applicant for initial certification shall complete 10 hours of classroom instruction prior to taking the examination.  In order to remain certified, an animal waste management system operator in charge shall complete six hours of approved additional training during each three-year period following initial certification.  A certified animal waste management system operator in charge who fails to complete approved additional training within 30 days of the end of the three-year period shall take and pass the examination for certification in order to renew the certificate.
"§ 90A-47.4.  Fees; certificate renewals.
(a)	An applicant for certification under this Part shall pay a fee of ten dollars ($10.00) for the examination and the certificate.
(b)	The certificate shall be renewed annually upon payment of a renewal fee of ten dollars ($10.00).  A certificate holder who fails to renew the certificate and pay the renewal fee within 30 days of its expiration shall be required to take and pass the examination for certification in order to renew the certificate.
"§ 90A-47.5.  Suspension; revocation of certificate.
(a)	The Commission, in accordance with the provisions of Chapter 150B of the General Statutes, may suspend or revoke the certificate of any operator in charge who:
(1)	Engages in fraud or deceit in obtaining certification.
(2)	Fails to exercise reasonable care, judgment, or use of the operator's knowledge and ability in the performance of the duties of an operator in charge.
(3)	Is incompetent or otherwise unable to properly perform the duties of an operator in charge.
(b)	In addition to revocation of a certificate, the Commission may levy a civil penalty, not to exceed one thousand dollars ($1,000) per violation, for willful violation of the requirements of this Part.
"§ 90A-47.6.  Rules.
The Commission shall adopt rules to implement the provisions of this Part."
PART IV.  SWINE FARM SITING ACT/REQUIREMENTS/NOTICE
Sec. 7.  (a) Article 67 of Chapter 106 of the General Statutes reads as rewritten:
"ARTICLE 67.
"Swine Farms.
"§ 106-800.  Title.
This Article shall be known as the 'Swine Farm Siting Act'.
"§ 106-801.  Purpose.
The General Assembly finds that certain limitations on the siting of swine houses and lagoons for swine farms can assist in the development of pork production, which contributes to the economic development of the State, by lessening the interference with the use and enjoyment of adjoining property.
"§ 106-802.  Definitions.
As used in this Article, unless the context clearly requires otherwise:
(1)	'Lagoon' means a confined body of water to hold animal byproducts including bodily waste from animals or a mixture of waste with feed, bedding, litter or other agricultural materials.
	(3)	'Occupied residence' means a dwelling actually inhabited by a person on a continuous basis as exemplified by a person living in his or her home.
(4)	'Site evaluation' means an investigation to determine if a site meets all federal and State standards as evidenced by the Waste Management Facility Site Evaluation Report on file with the Soil and Water Conservation District office or a comparable report certified by a professional engineer or a comparable report certified by a technical specialist approved by the North Carolina Soil and Water Conservation Commission.
(5)	'Swine farm' means a tract of land devoted to raising 250 or more animals of the porcine species.
(6)	'Swine house' means a building that shelters porcine animals on a continuous basis. 
"§ 106-803. Siting requirements for swine houses, lagoons, and land areas onto which waste is applied at swine farms.
(a)	A swine house or a lagoon that is a component of a swine farm shall be located at least 1,500 feet from any occupied residence; at least 2,500 feet from any school, hospital, or church; and at least 500 feet from any property boundary. The outer perimeter of the land area onto which waste is applied from a lagoon that is a component of a swine farm shall be at least 50 feet from any boundary of property on which an occupied residence is located and from any perennial stream or river, other than an irrigation ditch or canal.
(b)	A swine house or a lagoon that is a component of a swine farm may be located closer to a residence, school, hospital, church, or a property boundary than is allowed under subsection (a) of this section if written permission is given by the owner of the property and recorded with the Register of Deeds.
"§ 106-804.  Enforcement.
(a)	Any person owning property directly affected by the siting requirements of G.S. 106-803 pursuant to subsection (b) of this section may bring a civil action against a swine farmer who has violated G.S. 106-803 and may seek any one or more of the following:
(1)	Injunctive relief.
(2)	An order enforcing the siting requirements under G.S. 106-803.
(3)	Damages caused by the violation.
(b)	A person is directly affected by the siting requirements of G.S. 106-803 only if the person owns:
(1)	An occupied residence located less than 1,500 feet from a swine house or lagoon in violation of G.S. 106-803.
(2)	A school, hospital, or church located less than 2,500 feet from a swine house or lagoon in violation of G.S. 106-803.
(3)	Property whose boundary is located less than 500 feet from a swine house or lagoon in violation of G.S. 106-803.
(4)	Property on which an occupied residence is located and whose boundary is less than 50 feet from the outer perimeter of the land area onto which waste is applied from a lagoon that is a component of a swine farm in violation of G.S. 106-803.
(5)	Property that abuts a perennial stream or river, or on which a perennial stream or river is located, and that property and that perennial stream or river are less than 50 feet from the outer perimeter of the land area onto which waste is applied from a lagoon that is a component of a swine farm in violation of G.S. 106-803.
(c)	If the court determines it is appropriate, the court may award court costs, including reasonable attorneys' fees and expert witnesses' fees, to any party.  If a temporary restraining order or preliminary injunction is sought, the court may require the filing of a bond or equivalent security.  The court shall determine the amount of the bond or security.
(d)	Nothing in this section shall restrict any other right that any person may have under any statute or common law to seek injunctive or other relief.
"§ 106-805.  Written notice of swine farms.
Any person who intends to construct a swine farm whose animal waste management system is subject to a permit under Part 1A of Article 21 of Chapter 143 of the General Statutes shall, after completing a site evaluation and before the farm site is modified, attempt to notify all adjoining property owners and all property owners who own property located across a public road, street, or highway from the swine farm of that person's intent to construct the swine farm.  This notice shall be by certified mail sent to the address on record at the property tax office in the county in which the land is located.  The written notice shall include all of the following:
(1)	The name and address of the person intending to construct a swine farm.
(2)	The type of swine farm and the design capacity of the animal waste management system.
(3)	The name and address of the technical specialist preparing the waste management plan.
(4)	The address of the local Soil and Water Conservation District office.
(5)	Information informing the adjoining property owners and the property owners who own property located across a public road, street, or highway from the swine farm that they may submit written comments to the Division of Environmental Management, Department of Environment, Health, and Natural Resources."
(b)	  Subsection (a) of this section does not repeal any rule that does not conflict with the amendments to Article 67 of Chapter 106 of the General Statutes made by subsection (a) of this section.
Sec. 8.  Section 2 of Chapter 420 of the 1995 Session Laws reads as rewritten:
"Sec. 2.  This act applies to the construction or enlargement, on or after October 1, 1995, of swine houses, lagoons, and land areas onto which waste is applied from a lagoon that are components of a swine farm.  This act does not apply under each of the following circumstances:
(1)	When the construction or enlargement occurs on or after October 1, 1995, for the purpose of increasing the swine population to that set forth as the projected population in a registration of the swine operation filed with the Department of Environment, Health, and Natural Resources before October 1, 1995.
(2)	When the construction or enlargement occurs on or after October 1, 1995, for the purpose of increasing the swine population to the population that the animal waste management system is designed to accommodate as that system is set forth in a registration of the swine operation filed with the Department of Environment, Health, and Natural Resources before October 1, 1995, or as that system is set forth in an animal waste management plan approved before October 1, 1995.
(3)	When the construction or enlargement occurs on or after October 1, 1995, for the purpose of complying with applicable animal waste management rules and not for the purpose of increasing the swine population."
PART V.  AGRICULTURAL COST SHARE PROGRAM
Sec. 9.  G.S. 143-215.74(b)(5) reads as rewritten:
"(5)	Funding may be provided to assist practices including conservation tillage, diversions, filter strips, field borders, critical area plantings, sediment control structures, sod-based rotations, grassed waterways, strip-cropping, terraces, cropland conversion to permanent vegetation, grade control structures, water control structures, closure of lagoons, emergency spillways, riparian buffers or equivalent controls, odor control best management practices, insect control best management practices, and animal waste management systems and application.  Funding for animal waste management shall be allocated for practices in river basins such that the funds will have the greatest impact in improving water quality."
Sec. 10.  ¨G.S. 143-215.74(b)(6) reads as rewritten:
"(6)	State funding shall be limited to seventy-five percent (75%) of the average cost for each practice with the assisted farmer providing twenty-five percent (25%) of the cost (which may include in-kind support) with a maximum of seventy-five thousand dollars ($75,000) per year to each applicant."
PART VI.  REPORTS/DEVELOPMENT OF COMPREHENSIVE PLAN/STUDIES
Sec. 11. (a)	The Division of Soil and Water Conservation of the Department of Environment, Health, and Natural Resources, the Cooperative Extension Service of North Carolina State University, and the North Carolina Department of Agriculture shall prepare a coordinated and comprehensive plan that includes use of existing resources at the local level for nonpoint source pollution prevention and control.  The plan shall include mechanisms to be utilized that enhance communication, and  provide information, technical assistance, and environmental education.  The plan shall also include the following:
(1)	Designate the Division of Soil and Water Conservation of the Department of Environment, Health, and Natural Resources as the lead agency with a defined line of authority for agricultural activities affected by the nonpoint source pollution prevention/control plan.
(2)	Identify the needs of agricultural crop and livestock operations and the services provided by the various groups.
(3)	Develop a strategic plan for interaction and communication with farmers and livestock operations concerning implementation of agricultural best management practices including nutrient management plans and site-specific nutrient reduction efforts.
(b)	The Commissioner of Agriculture, the Secretary of Environment, Health, and Natural Resources, and the Director of the Cooperative Extension Service shall report their comprehensive plan to the Senate Select Committee on River Water Quality and Fish Kills and the Environmental Review Commission by September 30, 1996.
Sec. 12.  The Environmental Review Commission shall evaluate the animal waste permitting, inspection, and enforcement program established under Section 1 of this act including, whether to transfer responsibility for permitting, compliance inspections, and enforcement to the Division of Soil and Water Conservation. The Commission may report its findings and recommendations to the General Assembly on or before the first day of the 1997 Regular Session and shall report its findings and recommendations on or before the first day of the 1998 Regular Session.
Sec. 13.  Part 9A of Article 21 of Chapter 143 of the General Statutes is repealed effective January 1, 1997.  A person certified under Part 9A of Article 21 of Chapter 143 of the General Statutes shall be certified as an animal waste management system operator by the Water Pollution Control System Operators Certification Commission without additional preexamination training, examination, or payment of an initial certification fee.  A person certified under Part 9A of Article 21 of Chapter 143 of the General Statutes shall complete approved additional training and pay the annual renewal fee in order to maintain certification.
Sec. 14.  (a)	All operators of animal waste management systems, as defined in G.S. 143-215.10B, as enacted by Section 1 of this act, shall register with their local Soil and Water Conservation District office and initiate the process to obtain an approved animal waste management plan pursuant to 15A N.C.A.C. 2H.0217.  Operators who initiate the process of obtaining an approved animal waste management plan before 1 September 1996 shall receive priority for inclusion in the Nonpoint Source Pollution Control Program pursuant to G.S. 143-215.74, et seq., including priority for technical assistance and State funding.
	(b)	The Environmental Management Commission may enter into a special agreement with an operator who registers by 1 September 1996 under subsection (a) of this section and who makes a good faith effort to obtain an approved animal waste management plan by 31 December 1997.  The special agreement shall set forth a schedule for the operator to follow to obtain an approved animal waste management plan by a date certain and shall provide that the Environmental Management Commission shall not issue a notice of violation for failure to have an approved animal waste management plan so long as the operator complies with the special agreement.
(c)	The Environmental Management Commission shall strictly enforce the penalties available against those operators who fail to comply with subsection (a) of this section or otherwise fail to make a good faith effort to obtain an approved animal waste management plan by 31 December 1997.
(d)	The board of each Soil and Water Conservation District shall develop a strategy to assist operators of animal waste management systems in its district to obtain approved animal waste management plans by 31 December 1997.
Sec. 15.  The Environmental Management Commission shall develop a definition for the term "chronic rainfall".  The Commission shall review the meaning of "no discharge of pollutants" as used in the definition of "animal waste management system" in its animal waste management rules to determine whether this phrase constitutes a no discharge requirement and whether this phrase creates a performance standard or a technology standard.  The Commission shall clarify the meaning of "no discharge" such that the no discharge requirement for animal waste management systems is economically practical and technologically achieveable.  The Commission shall complete the requirements of this section by 1 October 1996.
Sec. 16.  No later than September 1, 1996, the Soil and Water Conservation Commission shall specify odor control best management practices, insect control best management practices, and best management practices for riparian buffers or equivalent controls consistent with the provisions of G.S. 143-215.10C(e)(1), (2), and (4), as enacted by Section 1 of this act.
Sec. 17.  No later than October 1, 1996, the Environmental Management Commission and the Soil and Water Conservation Commission, with technical assistance from the Cooperative Extension Service, shall establish the record-keeping requirements under G.S. 143-215.1C(e)(8), as enacted by Section 2 of this act.  The Natural Resources Conservation Service is encouraged to cooperate fully with establishing these requirements.
Sec. 18. (a)	An interagency group is created to:
(1)	Address questions from technical specialists and provide uniform interpretations to technical specialists regarding the requirements of the animal waste management rules.
(2)	Publish its decisions on these questions on a regular and recurring basis.
(3)	Provide uniform strategies for operators of intensive livestock operations to meet the December 31, 1997, deadline to obtain an approved animal waste management plan.
(4)	Develop, no later than August 1, 1996, a standard for the use of riparian buffers or equivalent controls as best management practices, particularly along perennial streams; decide whether a uniform State standard, a uniform basinwide standard, or a site-specific standard best protects water quality; and submit the standard that the group decides upon to the Soil and Water Conservation Commission for adoption in developing best management practices for riparian buffers and equivalent controls under Section 6 of this act.
(b) The interagency group shall consist of two representatives from each of the following State agencies:  the Division of Soil and Water Conservation, Department of Environment, Health, and Natural Resources; the Division of Environmental Management, Department of Environment, Health, and Natural Resources; the Department of Agriculture; and the Cooperative Extension Service.  The General Assembly encourages the Natural Resources Conservation Service, United States Department of Agriculture, to provide two representatives from its agency to participate fully as members of the interagency group.  The interagency group shall remain in existence until such time after December 31, 1997, that the Secretary of Environment, Health, and Natural Resources determines the interagency group is no longer needed to resolve issues related to certifying animal waste management plans.
PART VII.  EFFECTIVE DATES/MISCELLANEOUS PROVISIONS
Sec. 19.  (a)	G.S. 143-215.10A, as enacted by Section 1 of this act, is effective upon ratification.
(b)	G.S. 143-215.10B, as enacted by Section 1 of this act, is effective upon ratification.
(c)(1)	G.S. 143-215.10C, as enacted by Section 1 of this act, becomes effective January 1, 1997.  In order to ensure an orderly and cost-effective phase-in of the permit program, the Department of Environment, Health, and Natural Resources shall issue permits for animal operations over a five-year period.  The Department shall issue permits for  approximately twenty percent (20%) of the animal waste management facilities that are in operation on January 1, 1997, during each of the five calendar years beginning January 1, 1997, and shall give priority to those animal waste management systems serving the largest animal operations.  An animal waste management system that is deemed permitted by rule on January 1, 1997, under 15A N.C.A.C. 2H.0217 may continue to operate on a deemed permitted basis as provided in subsection (b) of this section.
(2)	In accordance with its phase-in schedule, the Department shall notify each owner or operator of an animal waste management system that is deemed permitted of the date by which an application for a permit for that animal waste management system shall be submitted by certified mail.  An owner or operator of an animal waste management system who fails to submit an application for a permit by the date specified by the Department shall not operate the animal waste management system after that date.  An animal waste management system that is authorized to continue operation under this section and for which a timely application for a permit is submitted may continue to operate on a deemed permitted basis until the Department either issues a permit or notifies the owner or operator that the application for a permit is denied.  An animal waste management system that is deemed permitted shall be subject to the annual operational review and annual inspection requirements as though it were permitted.
(3)	The Department shall act on an application for a permit for a new facility or for the expansion of an existing facility within 90 days after the Department receives the application.
(4)	Notwithstanding G.S. 143-215.10C (a) through (d), a dry litter animal waste management system involving 30,000 or more birds shall continue to operate on a deemed permitted basis by rule under 15A N.C.A.C. 2H.0217 and shall comply with the animal waste management plan testing and record-keeping requirements by January 1, 1998.
(d)	G.S. 143-215.10D, as enacted by Section 1 of this act, becomes effective September 1, 1996.
(e)  G.S. 143-215.10E, as enacted by Section 1 of this act, is effective upon ratification.
(f)  G.S. 143-215.10F, as enacted by Section 1 of this act, becomes effective January 1, 1997.
(g)  G.S. 143-215.10G, as enacted by Section 1 of this act, becomes effective January 1, 1997.
Sec. 20.  Section 2 of this act becomes effective January 1, 1997.
Sec. 21.  Sections 3 and 4 of this act are effective upon ratification and apply to violations that occur on or after that date.
Sec. 22.  Section 5 of this act becomes effective October 1, 1996.  In order to maintain staggered terms on the Water Pollution Control System Operator Certification Commission, of the two new members added to the Commission by Section 5 of this act, the initial term of one appointee shall expire on 30 June 1998 and the initial term of the other appointee shall expire on 30 June 1999.
Sec. 23.  Section 6 of this act is effective upon ratification, except that G.S 90A-47.2(a), as enacted by subsection (b) of Section 6 of this act, becomes effective January 1, 1997.
Sec. 24.  Sections 7 and 8 of this act are effective upon ratification, except that the change from 100 to 500 feet made in G.S. 106-803(a) by Section 7 of this act does not apply to a swine farm for which a site evaluation was conducted prior to October 1, 1996.
Sec. 25.  This act constitutes a recent act of the General Assembly within the meaning of G.S. 150B-21.1.  The Environmental Management Commission, the Soil and Water Conservation Commission, and the Water Pollution Control System Operators Certification Commission, may adopt temporary rules to implement this act.
Sec. 26.  Sections 9 through 26 of this act are effective upon ratification.