A BILL TO BE ENTITLED
AN ACT to codify and make permanent the swine farm animal waste management system performance standards that the general assembly enacted in 1998 and to phase out the use of the lagoon and sprayfield animal waste management system for swine farms.
The General Assembly of North Carolina enacts:
SECTION 1.  Section 1.1 of S.L. 1997‑458, as amended by Section 2 of S.L. 1998‑188, Section 2.1 of S.L. 1999‑329, Section 1 of S.L. 2001‑254, and Section 1 of S.L. 2003‑266, is codified as G.S. 143‑215.10I and reads as rewritten:
"§ 143‑215.10I.  Performance standards for animal waste management systems that serve swine farms; lagoon and sprayfield systems prohibited.
(a)	As used in this section:
(1)	'Swine farm' and 'lagoon' have the same meaning as in G.S. 106‑802. 
	
(2)	'Anaerobic lagoon' means a lagoon that treats waste by converting it into carbon dioxide, methane, ammonia, and other gaseous compounds; organic acids; and cell tissue through an anaerobic process.
(3)	'Anaerobic process' means a biological treatment process that occurs in the absence of dissolved oxygen.
	
(b)																
	The Department shall not issue or modify a permit to authorize the construction, operation, or expansion of an animal waste management system that serves a swine farm and that employs an anaerobic lagoon as the primary method of treatment and land application of waste by means of a sprayfield as the method of waste disposal. The Commission may issue a permit for the construction, operation, or expansion of an animal waste management system that serves a swine farm under this Article only if the Commission determines that the animal waste management system will meet or exceed all of the following performance standards:
(1)	Eliminate the discharge of animal waste to surface water and groundwater through direct discharge, seepage, or runoff.
(2)	Substantially eliminate atmospheric emission of ammonia.
(3)	Substantially eliminate the emission of odor that is detectable beyond the boundaries of the parcel or tract of land on which the swine farm is located.
(4)	Substantially eliminate the release of disease‑transmitting vectors and airborne pathogens.
(5)	Substantially eliminate nutrient and heavy metal contamination of soil and groundwater.
		"
SECTION 2.  An animal waste management system that serves a swine farm for which a permit was issued prior to 1 September 2005, and that does not meet the requirements of G.S. 143‑215.10I, as enacted by Section 1 of this act, may continue to operate under, and shall operate in compliance with, that permit until the later of 1 September 2010 or 10 years from the date on which the animal waste management system was first permitted or deemed permitted.  The owner or operator of an animal waste management system that serves a swine farm and that employs a lagoon and sprayfield system that is phased out pursuant to this act shall close all of the components of the animal waste management system in compliance with all applicable federal and State laws, regulations, and rules.
SECTION 3.(a)  North Carolina State University and the University of North Carolina at Chapel Hill shall jointly develop an implementation plan to convert animal waste management systems that serve swine farms and that employ anaerobic lagoons as the primary method of treatment and land application of waste by means of a sprayfield as a method of waste disposal to alternative animal waste management systems that achieve the performance standards required by G.S. 143‑215.10I(b), as enacted by Section 1 of this act.  The implementation plan shall include, but not be limited to, all of the following:
(1)	One or more business models for the implementation of alternative animal waste management systems.
(2)	An assessment of the capital needs and labor and construction resource availability associated with each business model identified.
(3)	An analysis of the full costs associated with each business model identified.
(4)	Identification and assessment of the potential revenue streams generated by each alternative animal waste management system that achieves the performance standards required by G.S. 143‑215.10I(b), as enacted by Section 1 of this act. This shall include identification of new markets for by‑products, including consideration of the purchase of by‑products by State agencies.
(5)	An assessment of ways to minimize conversion costs and to help finance conversion for contract and independent swine growers. This shall include an assessment of financial mechanisms that could be used by swine farmers who are unable to fully afford the costs to convert to alternative animal waste management systems. Financial mechanisms assessed shall include, but not be limited to, existing and potential federal and State cost‑share and other financial assistance programs, tax and other incentive programs, and financial and technical assistance by private processors and other companies in the pork industry.
(6)	An assessment of new institutional and public policy mechanisms that may be needed to facilitate the conversion of the swine industry in North Carolina to alternative animal waste management systems, including prioritization of alternative animal waste management systems and of the order in which the conversion of existing swine farms to alternative animal waste management systems should occur.
(7)	Recommendations for permitting of alternative animal waste management systems.
(8)	An evaluation of the Department of Environment and Natural Resources and other agency staff needed to process permit applications and provide for technology transfer.
SECTION 3.(b)  North Carolina State University and the University of North Carolina at Chapel Hill shall jointly present the implementation plan developed pursuant to subsection (a) of this section to the Environmental Review Commission no later than 1 April  2006.
SECTION 4.  There is appropriated from the General Fund to The University of North Carolina the sum of two hundred thousand dollars ($200,000) for fiscal year 2005‑2006 to develop the implementation plan required by Section 3 of this act.
SECTION 5.  Sections 1 and 2 of this act become effective 1 September 2005 and apply to any application for a new permit or to modify a permit for an animal waste management system that serves a swine farm.  Sections 3, 4, and 5 of this act become effective 1 July 2005.