A BILL TO BE ENTITLED
AN ACT to extend and clarify the statewide moratorium on the construction or expansion of swine farms and to provide for a study and report on currently available incentives and any needed additional incentives to encourage purchasers and producers of renewable energy to cooperate regarding the production and use of renewable energy or other marketable by‑products derived from animal waste.
Whereas, the 1997 General Assembly established moratoria on the construction or expansion of certain swine farms and on lagoons and animal waste management systems for certain swine farms; and
Whereas, one of the original purposes of these moratoria was to allow completion of certain studies related to swine farms and animal waste management systems; and
Whereas, the 1998 General Assembly extended these moratoria and established exceptions for animal waste management systems that meet certain performance standards; and
Whereas, the 1999 General Assembly, the 2001 General Assembly, and the 2003 General Assembly further extended the moratoria so that moratoria have remained in effect continuously since 1 March 1997; and
Whereas, the Animal and Poultry Waste Management Center at North Carolina State University has been evaluating a number of animal waste management system technologies in order to identify one or more technologies that meet the performance standards established by the General Assembly and that are economically feasible; and
Whereas, it has been determined that none of the technologies evaluated during this process that met the performance standards was found also to be economically feasible for use on existing swine farms; and
Whereas, it appears that additional time is needed to continue the evaluation of these technologies as well as other potential technologies that could enhance the current state of animal waste management systems; and
Whereas, it appears that, because of the duration of the moratoria, hardships have been created for property owners, estates, and others needing or desiring to withdraw from farming without unacceptable or unreasonable financial hardship, and other issues concerning the interpretation and application of the moratoria have arisen; and
Whereas, hog production and a clean and safe environment are both important to the farming community and economy of North Carolina; and
Whereas, ensuring the long-term viability and sustainability of hog production is in the long-term best interest of the State; and
Whereas, it further appears that any legislation that may be enacted by the 2006 Session of the General Assembly would take some time to become fully implemented; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.  Subsection (a1) of 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, reads as rewritten:
"(a1)	There is hereby established a moratorium on the construction or expansion of swine farms and on lagoons and animal waste management systems for swine farms. The purposes of this moratorium are to allow time for the completion of ongoing evaluations of animal waste management technologies and related research and studies; to allow the General Assembly to receive and act on the findings and recommendations of those evaluations, research, and studies; and to allow for the implementation of any legislation that may be enacted. Except as provided in subsection (b) of this section, the Environmental Management Commission shall not issue a permit for an animal waste management system for a new swine farm or the expansion of an existing swine farm for a period beginning on 1 March 1997 and ending on 1 September 2012."
SECTION 2.  The Department of Commerce, in consultation with the Department of Revenue, shall conduct a study and shall prepare and submit a report based on the results of the study to the Agriculture and Forestry Awareness Study Commission no later than October 15, 2006.  During the study, the Department shall examine and discuss ways to encourage swine producers and utility providers to cooperate in the production and use of renewable energy or other marketable by‑products derived from animal waste, including an examination of tax incentives, carbon sequestration credits and trading mechanisms, expedited permitting of animal waste management systems that generate energy, and other means to increase the likelihood that economically feasible and sustainable versions of such animal waste management system technologies will be developed, tried, and utilized on swine farms.  This study and the report shall include a discussion of:
(1)	All technologies that are currently available under North Carolina law and rule that are capable of producing renewable energy or other marketable by‑products derived from animal waste and can be used by the utility providers, and
(2)	Based on a survey and review of the laws, rules, and similar activities of other states to encourage these activities, any other such technologies that comply with North Carolina law and rule that should be available in North Carolina.
SECTION 3.  The Agriculture and Forestry Awareness Study Commission may, based on its review of the report under Section 2 of this act, make any recommendations, including any related legislative proposals, to the 2007 General Assembly.
SECTION 4.  There is appropriated from the General Fund to the Department of Commerce the sum of five thousand dollars ($5,000) for the 2006‑2007 fiscal year for the costs of conducting the study and preparing its report under Section 2 of this act.
SECTION 5.  This act is effective when it becomes law.