A BILL TO BE ENTITLED
AN ACT to authorize cost share funds for swine farms that employ animal waste management system technologies that reduce the emission of greenhouse gases or that result in increased energy production or efficiency.
Whereas, there are existing and developing markets for the trading of allowances and credits for greenhouse gas emissions, and there are new animal waste management system technologies that reduce greenhouse emissions or produce energy from renewable energy sources; and
Whereas, there are opportunities for swine farms to utilize animal waste management system technologies that reduce greenhouse gas emissions or result in increased renewable energy production or energy efficiency and that have been demonstrated to be effective but may not yet be able to compete financially with established existing technologies; and
Whereas, the General Assembly finds that it is in the best interests of the State to reduce greenhouse gas emissions, increase energy production and efficiency, and prevent nonpoint source water pollution by providing partial support through cost share funds to facilitate and encourage the expanded use and adoption of these technologies on swine farms; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 143‑215.74(b) is amended by adding a new subdivision to read:
"(5a)	Funding may be provided for the installation of animal waste management system technologies for swine farms that reduce the emission of greenhouse gases, produce energy qualifying as a renewable energy source, or otherwise reduce energy needs for the swine farm by producing power that is utilized by the farm or sold and supplied over the electricity power grid. State funding under this subdivision shall be limited to seventy‑five percent (75%) of the average cost for each technology with the assisted farmer providing twenty‑five percent (25%) of the cost, which may include in‑kind support of the technology, with a maximum of one hundred twenty‑five thousand dollars ($125,000) per year to each applicant. When making priority designation under subdivision (3) of this subsection, the Soil and Water Conservation Commission shall confer with the Animal and Poultry Waste Management Center of North Carolina State University or its designee."
SECTION 2.  G.S. 143‑215.74(b)(6) reads as rewritten:
"(6)	Except as provided in subdivisions (5a) and (8) of this subsection, State funding shall be limited to seventy‑five percent (75%) of the average cost for each practice with the assisted farmer providing twenty‑five percent (25%) of the cost, which may include in‑kind support of the practice, with a maximum of seventy‑five thousand dollars ($75,000) per year to each applicant."
SECTION 3.  G.S. 139‑4(d) is amended by adding a new subdivision to read:
"(13)	To develop, implement, and supervise the Environmental Innovation Grants Program for Swine Farms pursuant to G.S. 139‑4.1 and any rules adopted under that section."
SECTION 4.  Article 1 of Chapter 139 of the General Statutes is amended by adding a new section to read:
"§ 139‑4.1.  Environmental Innovation Grants Program for Swine Farms.
(a)	The Soil and Water Conservation Commission shall develop, implement, and supervise the Environmental Innovation Grants Program for Swine Farms. The purpose of this program is to encourage, by providing partial funding, the adoption and use at a limited number of swine farms certain approved animal waste management system technologies that have been shown to be effective on a test basis, that do not qualify for funding under the Agriculture Cost Share Program for Nonpoint Source Pollution Control under Part 9 of Article 21 of Chapter 143 of the General Statutes, and that are sufficiently new or isolated so that their increased use at swine farms in North Carolina would enable their effectiveness and economic feasibility on a broader basis to be evaluated.
(b)	The program under subsection (a) of this section shall be subject to the following requirements and limitations:
(1)	Funding may be provided for the installation and use on a limited basis of those animal waste management system technologies that meet the purposes set forth in subsection (a) of this section but with preference for technologies that reduce the emission of greenhouse gases, produce energy qualifying as a renewable energy source, or otherwise reduce energy needs for the swine farm by producing power that is utilized by the farm or sold and supplied over the electricity power grid.
(2)	State funding shall be limited to seventy‑five percent (75%) of the average cost for each technology with the assisted farmer providing twenty‑five percent (25%) of the cost, which may include in‑kind support of the practice, with a maximum of seventy‑five thousand dollars ($75,000) per year to each applicant.
(3)	The Soil and Water Conservation Commission may adopt any rules needed to implement the program under this section, including rules relating to the eligibility of animal waste management system technologies, farms, or entities for the grants provided under this program.
(4)	To be eligible for cost share funds under this section, a project shall be evaluated before funding is awarded to determine its potential for reducing greenhouse gas emissions or increasing energy production or efficiency.
(c)	Prior to implementing the program and annually thereafter, the Environmental Innovation Grants Program for Swine Farms shall be reviewed by the Animal and Poultry Waste Management Center of North Carolina State University. The results of these reviews shall be provided to the committee under G.S. 143‑215.74B that reviews the Agriculture Cost Share Program for Nonpoint Source Pollution Control.
(d)	State funds for the program shall remain available until expended.
(e)	On or before January 31 of each year, the Soil and Water Conservation Commission shall report on this program to the Environmental Review Commission and the Fiscal Research Division. This report shall include a list of projects that received State funding pursuant to the program, the results of the evaluations conducted pursuant to subsection (c) of this section, findings regarding the effectiveness of each of these projects to accomplish the purposes of this program, and any recommendations to assure that State funding is used in the most cost‑effective manner and accomplishes the greatest reduction of greenhouse gas emissions or the greatest increase in energy production or efficiency."
SECTION 5.  There is appropriated from the General Fund to the Soil and Water Conservation Commission the sum of four million dollars ($4,000,000) for the 2007‑2008 fiscal year to be used as grants for projects that qualify under G.S. 143‑215.74(b)(5a), as enacted by Section 1 of this act.
SECTION 6.  There is appropriated from the General Fund to the Soil and Water Conservation Commission the sum of five million five hundred thousand dollars ($5,500,000) for the 2007‑2008 fiscal year and the sum of five million five hundred thousand dollars ($5,500,000) for the 2008-2009 fiscal year to be used as grants for projects under G.S. 139‑4.1, as enacted by Section 4 of this act.
SECTION 7.  There is appropriated from the General Fund to the Board of Governors of The University of North Carolina for the Poultry and Animal Waste Management Center of North Carolina State University the sum of five hundred thousand dollars ($500,000) for the 2007‑2008 fiscal year to be used for evaluating and reporting on the Environmental Innovation Grants Program for Swine Farms, as enacted by Section 4 of this act.
SECTION 8.  This act becomes effective July 1, 2007.