A BILL TO BE ENTITLED
AN ACT requiring electric power suppliers to purchase electric power from facilities that use hog waste to generate electricity.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 7 of Chapter 62 of the General Statutes is amended by adding the following new section to read:
"§ 62‑133.7.  Pilot program for renewable energy from hog waste.
(a)	The following definitions apply in this section:
(1)	Electric power supplier. –  A public utility, an electric membership corporation, or a municipality that sells electric power to retail electric power customers in the State.
(2)	Hog farm facility. – A facility that generates electric power by using hog waste and whose electric power is available for purchase by an electric power supplier on or before December 1, 2012.
(b)	The electric power suppliers in the State in the aggregate shall be required to purchase all electricity generated by hog farm facilities located within the State up to a total amount of 25 megawatts per year and at a price of no more than eighteen cents (18¢) per kilowatt hour for a period of seven years, which shall begin to run on the date the hog farm facility begins generating electric power for commercial use. After a period of seven years, an electric power supplier shall not be required to purchase electricity generated by a hog farm facility at a rate that exceeds the avoided cost rate of the electric power supplier.
(c)	All costs incurred by an electric power supplier in complying with the provisions of this section shall be considered fuel costs and may be recovered as authorized by G.S. 62‑133.2."
SECTION 2.  This act is effective when it becomes law.