GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

S	2 

SENATE BILL 951
Agriculture/Environment/Natural Resources Committee Substitute Adopted 6/15/95

Short Title:  DEHNR Study/Environmental Regulation.	(Public)

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Sponsors:

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Referred to:  Appropriations

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May 2, 1995

A BILL TO BE ENTITLED
AN ACT TO DIRECT THE DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES TO STUDY WAYS TO SIMPLIFY AND IMPROVE ENVIRONMENTAL REGULATION THROUGH COORDINATION, COMPLIANCE ASSISTANCE, AND INCENTIVES FOR ENHANCED SELF-REGULATION AND TO STUDY WAYS TO STREAMLINE THE PERMIT PROCESS.
The General Assembly of North Carolina enacts:
Section 1.  The General Assembly finds:
(1)	Over the past two decades, environmental regulations and permitting processes have grown increasingly complex, uncoordinated, and difficult to understand.
(2)	Simpler, more predictable, more consistent, and better understood environmental regulations and permitting processes would enhance environmental protection by improving the public's and the regulated community's awareness of the scope and limits of environmental laws.
(3)	Direct compliance assistance to potential permittees and to citizens at large who are concerned about environmental permits would improve environmental permitting through higher quality permit applications and more informed comments on those applications.
(4)	Incentives to regulate persons to prevent pollution and to reduce and self-regulate any remaining emissions of pollutants can reduce the need for and complexity of permits.
(5)	Reforms in the environmental permit process should not be hindered by undue caution arising out of negligence actions brought against individual permit writers and reviewers under the Tort Claims Act, such as Haas v. Caldwell Systems, 98 N.C. App. 679 (1990), rev. denied, 327 N.C. 428 (1990).  Tort claims arising from environmental permits, such as claims for "negligent permitting", are expressly disavowed.
Sec. 2.  The Department of Environment, Health, and Natural Resources shall conduct a study of its mission, authority, duties, structure, and permit process related to environmental programs and shall consider specific actions being undertaken by the Department and further proposals for coordinating and streamlining environmental regulatory and permit processes, which actions and proposals shall include:
(1)	General changes to improve customer service and accountability:
a.	Ways to manage and train Department employees to provide better customer service; and
b.	Ways to improve the efficiency, effectiveness, accountability, flexibility, and fairness of the State environmental regulatory and permit processes.
(2)	Structural and organizational changes to improve performance and effectiveness of environmental programs.
(3)	Narrowing the scope of permitted activities:
a.	Any activities that presently require permits that can be regulated through some more efficient means, such as registration or not at all without undue risk to public health and the environment; and
b.	Eliminating redundant and nonsubstantive activities whose environmental and health effects are known to be insignificant.
(4)	Alternatives to individualized permitting:
a.	Issuing temporary permits to businesses installing new equipment that will facilitate implementation of pollution prevention; and
b.	Issuing temporary or other fast-track permits to facilitate remediation.
(5)	Improvements in processing for individualized permitting:
a.	Eliminating process bottlenecks that delay the processing of permits;
b.	Prioritizing applications in a consistent and efficient manner;
c.	Eliminating unnecessary hearings; and
d.	Rewarding persons who implement pollution prevention programs and comprehensive self-auditing or other quality environmental management programs through recognition and priority in permit processing.
(6)	Improvements in applicants' and affected parties' understanding of the permit system:
a.	Providing applicants with checklists for completing applications;
b.	Advising permit applicants and affected parties of the expected timetable for processing permit applications;
c.	Developing a consistent process and forms that minimize redundant information requests for environmental permit applications across the various divisions and commissions within the Department;
d.	Providing improved and more consistent notice of permit applications and decisions;
e.	Improving Department permit and compliance information systems to allow permit applicants and interested persons quick and simple access to information about permit applications and permitted facilities; and
f.	Developing methods for providing direct compliance assistance, such as assistance in determining which permit requirements apply to particular facilities and assistance in preparing the permit applications or commenting on permit applications.
(7)	Improvements in fee structures and fee handling:
a.	Revising current fee structures for fairness and consistency and to balance the costs of program administration and the impact of fees on regulated business; and
b.	Demonstrating accountability on expenditure of receipts.
Sec. 3.  The Department shall report its findings regarding specific actions being undertaken, its recommendations for further proposals for coordinating and streamlining the environmental regulatory and permit processes, and its progress toward these ends to the Environmental Review Commission no later than 1 January 1996.  The Department shall participate in developing any necessary legislative proposals and proposals for rule changes to implement the report's recommendations.
Sec. 4.  There is appropriated from the General Fund to the Department of Environment, Health, and Natural Resources the sum of fifty thousand dollars ($50,000) for the 1995-96 fiscal year to implement this act.
Sec. 5.  This act becomes effective 1 July 1995.