A BILL TO BE ENTITLED
AN ACT to direct the department of environment and natural resources to develop a cost‑share program to assist swine growers in funding innovative animal waste management systems that replace systems employing anaerobic lagoons, to create a task force to assist the department of environment and natural resources in developing criteria for implementing the cost‑share program, to appropriate funds for the cost‑share program, and to extend the moratoria on the construction or expansion of swine farms.
The General Assembly of North Carolina enacts:

PART I. COST‑SHARE PROGRAM FOR INNOVATIVE ANIMAL WASTE MANAGEMENT SYSTEMS THAT REPLACE SYSTEMS THAT EMPLOY ANAEROBIC LAGOONS

SECTION 1.1.  Beginning no later than October 1, 2006, the Department of Environment and Natural Resources shall develop a cost‑share program to provide financial and technical assistance to qualifying growers who volunteer to replace any existing anaerobic lagoon that is a primary component of an animal waste management system with an innovative animal waste management system.
SECTION 1.2.  A task force is created within the Department of Environment and Natural Resources. The Secretary of Environment and Natural Resources shall select no more than 21 members to serve on this task force. Members shall include, but not necessarily be limited to, the following:
(1)	The Governor, or the Governor's designee.
(2)	The Attorney General or the Attorney General's designee.
(3)	The Commissioner of Agriculture or the Commissioner's designee.
(4)	The Secretary of Commerce or the Secretary's designee.
(5)	The Secretary of Revenue or the Secretary's designee.
(6)	The Director of the Division of Soil and Water Conservation of the Department of Environment and Natural Resources or the Director's designee.
(7)	The Director of the Division of Water Quality of the Department of Environment and Natural Resources or the Director's designee.
(8)	The Designee appointed pursuant to the agreement entered into by the North Carolina Attorney General and Smithfield Foods, Inc., dated July 25, 2000, or the Designee's designee.
(9)	The Director of the Carolina Environmental Program at the University of North Carolina at Chapel Hill or the Director's designee.
(10)	The President of Frontline Farmers or the President's designee.
(11)	The President of the North Carolina Pork Council or the President's designee.
(12)	The President of the North Carolina Farm Bureau Federation or the President's designee.
(13)	The Southeast Regional Director of Environmental Defense or the Regional Director's designee.
(14)	The Executive Director of the Southern Environmental Law Center or the Executive Director's designee.
(15)	The President of the Rural Economic Development Center, Inc., or the President's designee.
(16)	A member of a local conservation or a community organization.
(17)	A scientist with established expertise in swine waste management.
(18)	An economist.
SECTION 1.3.(a)  The task force created under this Part shall establish program criteria for the implementation of the cost‑share program under this Part and the evaluation of the program's performance. The task force shall assist the Secretary of Environment and Natural Resources regarding all of the following:
(1)	Subject to subsection (b) of this section, identifying animal waste management systems that qualify as innovative.
(2)	Develop additional criteria for selecting innovative animal waste management systems that are eligible to receive cost‑share funds for installation on swine farms under this program, including the cost of purchasing and maintaining the system, potential markets for waste by‑products, whether waste collection and treatment is centralized, and any other criteria the task force deems pertinent.
(3)	Developing criteria to establish funding priorities to guide the selection of swine farms that are eligible for participation in this program, including criteria regarding the farm's geographic location, the grower's compliance history, and any other factors the task force deems pertinent.
(4)	Determining the financial support participating growers must contribute under the program and developing criteria for selecting growers to participate in the program.
(5)	Developing a timetable for growers to implement the innovative animal waste management systems for participating swine farms.
(6)	Developing a process for soliciting and reviewing applications from growers and a process for selecting growers to participate.
(7)	Assessing markets for by‑products derived from swine waste, facilitating development of these markets, and recommending policies to remove obstacles to the creation of these markets.
(8)	Examining 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 swine waste, including an examination of tax incentives, carbon sequestration credits, and trading mechanisms.
(9)	Monitoring the performance of the program under this Part.
(10)	Designating the nonprofit corporation or State agency to implement the cost‑share program under this Part, to select the growers to receive cost‑share funds under this program, and to disburse the cost‑share funds.
(11)	Beginning March 1, 2007, and every six months thereafter, preparing a report to be submitted to the Environmental Review Commission on the success of the program to date in replacing lagoons on swine farms with innovative animal waste management systems, on policies that will provide the greatest benefits to the environment, communities, and swine growers, and on how to modify this program to reflect these policies.
SECTION 1.3.(b)  Animal waste management system technology shall not be considered innovative by the Secretary of Environment and Natural Resources unless the provider of the technology demonstrates to the satisfaction of the Secretary that the technology meets all of the standards set forth in either subdivision (7) or subdivision (8) of subsection (b) of Section 1.1 of S.L. 1997‑458, as amended by Section 2 of S.L. 1998‑188.  The Secretary may rely on the determinations of the Technical Advisory Committee established pursuant to the agreements entered into by the North Carolina Attorney General and Smithfield Foods, Inc., Premium Standard Farms, Inc., and Frontline Farmers, although the Secretary may consider innovative animal waste management system technologies that were not evaluated pursuant to these agreements.
SECTION 1.4.  As part of this cost‑share program, the Department of Environment and Natural Resources, or the nonprofit corporation or State agency designated under subdivision (10) of subsection (a) of Section 1.3 of this Part to implement this program, may contract as needed with third‑party waste management companies for the transport, management, or treatment of waste produced on swine farms participating in this cost‑share program. The Department of Environment and Natural Resources, or the nonprofit corporation or State agency designated under subdivision (10) of subsection (a) of Section 1.3 of this Part to implement this program, may receive and spend any funds received from private, federal, and other public sources for the costs of the cost‑share program under this Part and may adopt rules necessary to implement this program.
SECTION 1.5.  The Secretary of Environment and Natural Resources shall report to the General Assembly no later than August 1, 2007, on the progress of the development and the implementation of the cost‑share program under this Part.
SECTION 1.6.  As used in this Part, the following definitions apply:
(1)	Anaerobic lagoon. – Defined in Section 1.1(a) of S.L. 1997‑458, as amended by Section 2 of S.L. 1998‑188.
(2)	Animal waste management system. – Defined in G.S. 143‑215.10B.
(3)	Grower. – Defined in G.S. 143‑215.10H.
(4)	Innovative animal waste management system. – An animal waste management system that meets all of the standards set forth in either subdivision (7) or subdivision (8) of subsection (b) of Section 1.1 of S.L. 1997‑458, as amended by Section 2 of S.L. 1998‑188.
(5)	Swine farm. – Defined in G.S. 106‑802.
SECTION 1.7.(a)  There is appropriated from the General Fund to the Department of Environment and Natural Resources the sum of ten million dollars ($10,000,000) for the 2006‑2007 fiscal year for the costs of implementing this Part and for cost‑share funds for growers participating in the cost‑share program under this Part.
SECTION 1.7.(b)  Funds appropriated under subsection (a) of this section shall not be disbursed as cost‑share funds for financial or technical assistance to growers under the cost‑share program under this Part until criteria have been developed under Section 1.3 of this Part.

PART II. EXTEND MORATORIA

SECTION 2.1.  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 2009. The construction or expansion of a swine farm or animal waste management system for a swine farm is prohibited during the period of the moratorium regardless of the date on which a site evaluation for the swine farm is completed and regardless of whether the animal waste management system is permitted under G.S. 143‑215.1 or Part 1A of Article 21 of Chapter 143 of the General Statutes or deemed permitted under 15A North Carolina Administrative Code 2H.0217."
SECTION 2.2.  Section 1.2 of S.L. 1997‑458, as amended by Section 3 of S.L. 1998‑188, Section 2.2 of S.L. 1999‑329, Section 2 of S.L. 2001‑254, and Section 2 of S.L. 2003‑266, reads as rewritten:
"Section 1.2. (a)  As used in this section, 'swine farm' and 'lagoon' have the same meaning as in G.S. 106‑802. As used in this section, 'animal waste management system' has the same meaning as in G.S. 143‑215.10B. There is hereby established a moratorium for any new or expanding swine farm or lagoon for which a permit is required under Parts 1 or 1A of Article 21 of Chapter 143 of the General Statutes in any county in the State: (i) that has a population of less than 75,000 according to the most recent decennial federal census; (ii) in which there is more than one hundred fifty million dollars ($150,000,000) of expenditures for travel and tourism based on the most recent figures of the Department of Commerce; and (iii) that is not in the coastal area as defined by G.S. 113A‑103. Effective 1 January 1997, until 1 September 2009, the Environmental Management Commission shall not issue a permit for an animal waste management system, as defined in G.S. 143‑215.10B, or for a new or expanded swine farm or lagoon, as defined in G.S. 106‑802. The exemptions set out in subsection (b) of Section 1.1 of this act do not apply to the moratorium established under this section.
(b)	In order to protect travel and tourism, effective 1 September 2009, no animal waste management system shall be permitted except under an individual permit issued under Part 1 of Article 21 of Chapter 143 of the General Statutes in any county in the State: (i) that has a population of less than 75,000 according to the most recent decennial federal census; (ii) in which there is more than one hundred fifty million dollars ($150,000,000) of expenditures for travel and tourism based on the most recent figures of the Department of Commerce; and (iii) that is not in the coastal area as defined by G.S. 113A‑103."

PART III. EFFECTIVE DATE.

SECTION 3.1.  This act becomes effective July 1, 2006.