A BILL TO BE ENTITLED
AN ACT to establish the agricultural water resources assistance program in the department of environment and natural resources.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 21 of Chapter 143 of the General Statutes is amended by adding a new Part to read:
"Part 12. Agricultural Water Resources Assistance Program.
"§ 143‑215.74P.  Agricultural Water Resources Assistance Program.
(a)	Program Established. – The Agricultural Water Resources Assistance Program is established in the Department of Environment and Natural Resources. The Program shall be implemented by the Soil and Water Conservation Commission. The Soil and Water Conservation Commission and the Board of Agriculture shall have joint responsibility for program oversight.
(b)	Purposes. – The purpose of the Program shall be to assist farmers and agricultural landowners to do the following:
(1)	Identify opportunities to increase water use efficiency, availability, and storage.
(2)	Implement best management practices to conserve and protect water resources and increase water use efficiency.
(3)	Increase water storage and availability for agricultural purposes.
(c)	The Program shall be subject to the following requirements and limitations:
(1)	A plan of work to establish Program priorities shall be jointly approved for this Program each program year by the Soil and Water Conservation Commission and the Board of Agriculture.
(2)	Priority designations for inclusion in the Program for State funding shall be established in the annual plan of work. The Soil and Water Conservation Commission shall allocate the cost share and technical assistance funds as specified in the annual plan of work.
(3)	Funding may be provided to assist design and implementation of water resource infrastructure, water conservation, and water use efficiency practices approved by the Soil and Water Conservation Commission.
(4)	Subject to subdivision (5) 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.
(5)	When the applicant is either (i) a limited‑resource farmer, (ii) a beginning farmer, (iii) a person farming land that is located in an enhanced voluntary agricultural district and is subject to a conservation agreement under G.S. 106‑743.2 that remains in effect, or (iv) a person farming land that is subject to a 10‑year or greater duration conservation easement, State funding shall be limited to ninety percent (90%) of the average cost for each practice with the assisted farmer providing ten percent (10%) of the cost, which may include in‑kind support of the practice, with a maximum of one hundred thousand dollars ($100,000) per year to each applicant. The definitions in G.S. 143‑215.74 for beginning farmer, enhanced voluntary agricultural district, limited‑resource farmer, and materially and substantially participate apply to this subdivision. 
(6)	Participation in the Program shall be voluntary.
(d)	Advisory Committee. – There is established the Agricultural Water Resources Assistance Program Advisory Committee to advise the Commission and Board of Agriculture on the development and administration of the Program, including development of the annual plan of work for the Program. The Advisory Committee shall meet quarterly to evaluate program effectiveness and provide recommendations to the Commission. The Advisory Committee shall consist of the following members:
(1)	The director of the Division of Soil and Water Conservation or the Director's designee, who shall serve as the Chair of the Advisory Committee.
(2)	The Commissioner of Agriculture or the Commissioner's designee.
(3)	The President of the North Carolina Association of Soil and Water Conservation Districts or the President's designee.
(4)	The Director of the Cooperative Extension Service at North Carolina State University or the Director's designee.
(5)	The Dean of the School of Agriculture and Environmental Sciences at North Carolina A&T State University, or the Dean's designee.
(6)	The State Conservationist of the Natural Resources Conservation Service of the United States Department of Agriculture or the State Conservationist's designee.
(7)	The President of the North Carolina Farm Bureau Federation, or the President's designee.
(8)	The President of the North Carolina State Grange, or the President's designee.
(9)	The President of the North Carolina Conservation District Employees Association, or the President's designee.
(10)	The President of the North Carolina Irrigation Society, or the President's designee.
(11)	Five at large members representing the diversity of North Carolina agriculture, appointed by the Commissioner of Agriculture for a term of two years. Members appointed by the Commissioner may be reappointed.
(e)	Report. – The Soil and Water Conservation Commission and the Board of Agriculture shall jointly report no later than 31 March of each year to the Environmental Review Commission and the Fiscal Research Division. The report shall include a summary of projects that received State funding pursuant to the Program and any recommendations to assure that State funding is used in the most cost‑effective manner to achieve the Program purposes.
(f)	Rules. – The Commission shall adopt rules as necessary to implement this Program.
"§ 143‑215.74Q.  Agricultural Water Resources Assistance Account.
The Agricultural Water Resources Assistance Account is established within the Division of Soil and Water Conservation of the Department of Environment and Natural Resources. Funds in the Account shall only be used for technical and financial assistance as provided in G.S. 143‑215.74P. The Account shall consist of funds available for this purpose and any grants, gifts, or contributions to the State for this purpose.  Funds in the Account shall not revert and shall remain available until expended."
SECTION 2.  G.S. 14‑234(d3) reads as rewritten:
"(d3)	Subsection (a) of this section does not apply to an application for or the receipt of a grant under the Agriculture Cost Share Program for Nonpoint Source Pollution Control created pursuant to Part 9 of Article 21 of Chapter 143 of the General Statutes, the Community Conservation Assistance Program created pursuant to Part 11 of Article 21 of Chapter 143 of the General Statutes, or the Agricultural Water Resources Assistance Program created pursuant to Part 12 of Article 21 of Chapter 143 of the General Statutes by a member of the Soil and Water Conservation Commission if the requirements of G.S. 139‑4(e) are met, and does not apply to a district supervisor of a soil and water conservation district if the requirements of G.S. 139‑8(b) are met."
SECTION 3.  G.S. 139‑4(d) reads as rewritten:
"(d)	In addition to the duties and powers hereinafter conferred upon the Soil and Water Conservation Commission, it shall have the following duties and powers:
…
(9)	To create, implement, and supervise the Agriculture Cost Share Program for Nonpoint Source Pollution Control created pursuant to Part 9 of Article 21 of Chapter 143 of the General Statutes, the Community Conservation Assistance Program created pursuant to Part 11 of Article 21 of Chapter 143 of the General Statutes, and the Agricultural Water Resources Assistance Program created pursuant to Part 12 of Article 21 of Chapter 143 of the General Statutes.
(10)	To review and approve or disapprove the application of a district supervisor for a grant under the Agriculture Cost Share Program for Nonpoint Source Pollution Control, the Community Conservation Assistance Program, or the Agricultural Water Resources Assistance Program created pursuant to Part 12 of Article 21 of Chapter 143 of the General Statutes as provided by G.S. 139‑8(b)."
SECTION 4.   G.S. 139‑4(e) reads as rewritten:
"(e)	A member of the Commission may apply for and receive a grant under the Agriculture Cost Share Program for Nonpoint Source Pollution Control, the Community Conservation Assistance Program, or the Agricultural Water Resources Assistance Program if:
(1)	The member does not vote on the application or attempt to influence the outcome of any action on the application; and
(2)	The application is approved by the Secretary of Environment and Natural Resources."
SECTION 5.  G.S. 139‑8(b) reads as rewritten:
"(b)	A district supervisor may apply for and receive a grant under the Agriculture Cost Share Program for Nonpoint Source Pollution Control created pursuant to Part 9 of Article 21 of Chapter 143 of the General Statutes, the Community Conservation Assistance Program created pursuant to Part 11 of Article 21 of Chapter 143 of the General Statutes, or the Agricultural Water Resources Assistance Program created pursuant to Part 12 of Article 21 of Chapter 143 of the General Statutes if:
1.	The district supervisor does not vote on the application or attempt to influence the outcome of any action on the application; and
2.	The application is approved by the Commission."
SECTION 6.  The first report required under G.S. 143‑215.74P, as enacted by Section 1 of this act, is due on or before March 31, 2013.
SECTION 7.  This act becomes effective July 1, 2011.