A BILL TO BE ENTITLED
AN ACT to amend various environmental laws.
The General Assembly of North Carolina enacts:

REPORT ON RULES FOR REMEDIATION OF CERTAIN UNDERGROUND STORAGE TANKS
SECTION 1.(a)  The Environmental Management Commission shall adopt temporary rules implementing Section 14.16B of S.L. 2015‑241 no later than October 1, 2017. Notwithstanding G.S. 150B‑21.1(d), the temporary rules shall remain in effect until the effective date of the permanent rule adopted to replace the temporary rule.
SECTION 1.(b)  The Commission shall report regarding the status of the rule making required by this act and by Section 14.16B of S.L. 2015‑241 to the Fiscal Research Division and the chairs of the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources no later than December 31, 2017.

SHELLFISH ENTERPRISE AREAS
SECTION 2.(a)  G.S. 113‑201 is amended by adding a new subsection to read:
"(d)	The Marine Fisheries Commission may adopt rules to establish Shellfish Aquaculture Enterprise Areas to facilitate shellfish aquaculture opportunities through advanced siting and preapprovals from relevant federal and State agencies. The Secretary shall only issue nontransferrable leases within designated Shellfish Aquaculture Enterprise Areas. Any leased parcel within a Shellfish Aquaculture Enterprise Area that is relinquished or terminated shall revert to the State and be made available to other applicants."
SECTION 2.(b)  G.S. 113‑201.1 is amended by adding a new subdivision to read:
"(3a)	"Shellfish Aquaculture Enterprise Area" means an area designated and permitted by the Department that is subdivided into parcels and made available for shellfish aquaculture leasing."

MARINE FISHERIES CLARIFYING CHANGES
SECTION 3.(a)  G.S. 113‑203 reads as rewritten:
"§ 113‑203.  Transplanting of oysters and clams.
…
(a2)	It is unlawful to do any of the following:
(1)	Transplant oysters or clams taken from public grounds to private beds except when lawfully taken during open season and transported directly to a private bed in accordance with rules of the Marine Fisheries Commission.
(2)	Transplant oysters or clams taken from permitted aquaculture operations to private beds except from waters in the approved classification.
(3)	Transplant oysters or clams from public grounds or permitted aquaculture operations utilizing waters in the prohibited, restricted or conditionally approved classification to private beds except when the transplanting is done in accordance with the provisions of this section and implementing rules.
(a3)	Unless the Secretary determines that the nursery of shellfish in an area will present a risk to public health, it is lawful to transplant seed oysters or seed clams taken from permitted aquaculture operations that use waters in the prohibited, restricted or conditionally approved classification to private beds pursuant to an Aquaculture Seed Transplant Permit issued by the Secretary that sets times during which transplant is permissible and other reasonable restrictions imposed by the Secretary under either of the following circumstances:
(1)	When transplanting seed clams less than 12 millimeters in their largest dimension.
(2)	When transplanting seed oysters less than 25 millimeters in their largest dimension.
…."
SECTION 3.(b)  G.S. 113‑168.4(b) reads as rewritten:
"(b)	Except as otherwise provided in this section, it is unlawful for any person licensed under this Article to sell fish taken outside the territorial waters of the State or to sell fish taken from coastal fishing waters. A person licensed under this Article may sell fish taken outside the territorial waters of the State or sell fish taken from coastal fishing waters under any of the following circumstances:
(1)	The sale is to a fish dealer licensed under G.S. 113‑169.3.
(2)	The sale is to the public and the seller is a licensed fish dealer under G.S. 113‑169.3.
(3)	The sale is of fish reared in a hatchery or aquaculture operation to the holder of an Aquaculture Operation Permit, an Under Dock Culture Permit, or a shellfish cultivation lease for further grow out."

RIVER HERRING FISHERIES MANAGEMENT
SECTION 4.  The Division of Marine Fisheries shall review its Fishery Management Plan for river herring (blueback herring, Alosa aestivalis, and alewife, Alosa pseudoharengus) and report no later than December 15, 2017, to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources regarding the continuing validity and scientific basis for the continued status of both species as "overfished." If the Division does not have an adequate scientific basis to review the status of both species, then the report should include cost estimates for the restoration of spawning and nursery area surveys and age composition work for all coastal streams within the State that historically contained significant river herring fisheries.

STATE PARTICIPATION IN SITING OF ATLANTIC INTRACOASTAL WATERWAY DREDGED MATERIAL DISPOSAL EASEMENTS
SECTION 5.(a)  The Division of Water Resources of the Department of Environmental Quality and the State Property Office are authorized to negotiate with appropriate agencies of the federal government an agreement for the State to assume responsibility for acquiring dredged material easement sites appropriate for maintenance dredging of the Atlantic Intracoastal Waterway between Beaufort Inlet and the border with the Commonwealth of Virginia in exchange for the reduction in size and possible change in location of dredged material disposal easement sites currently held by the federal government. The agreement shall provide for the federal government to relinquish certain dredged material disposal easements that are excess to maintenance project needs in exchange for the acquisition and furnishing to the federal government other easements that are sited and permitted by the Division of Coastal Management and acquired by the State Property Office under its powers of condemnation or otherwise using such funds as may be appropriated by the General Assembly from the Shallow Draft Navigation Channel Dredging and Aquatic Weed Fund established under Part 8B of Article 21 of Chapter 143 of the General Statutes for that purpose.
SECTION 5.(b)  G.S. 143‑215.73F(b) is amended by adding a new subdivision to read:
"(4)	To provide funding for siting and acquisition of dredged disposal easement sites associated with the maintenance of the Atlantic Intracoastal Waterway north of Beaufort Inlet and south of the border with the Commonwealth of Virginia, under a Memorandum of Agreement between the State and the federal government."

PRESERVE MUNICIPAL SOLID WASTE CAPACITY
SECTION 6.  G.S. 130A‑309.09B(a) reads as rewritten:
"(a)	Each unit of local government shall establish and maintain a solid waste reduction program. The following requirements shall apply:
(1)	Demolition debris consisting of used asphalt or used asphalt mixed with dirt, sand, gravel, rock, concrete, or similar nonhazardous material may be used as fill and need not be disposed of in a permitted landfill or solid waste disposal facility, provided that demolition debris may not be placed in the waters of the State or at or below the seasonal high water table.
(2)	Repealed by Session Laws 1991, c. 621, s. 8.
(3)	Units of local government are encouraged to separate marketable plastics, glass, metal, and all grades of paper for recycling prior to final disposal and are further encouraged to recycle yard trash and other organic solid waste into compost available for agricultural and other acceptable uses.
(4)	Notwithstanding G.S. 130A‑291(b), units of local government shall not, by ordinance or otherwise, prohibit the disposal of (i) waste outside the borders of their county or municipality for waste generated within their county or municipality or (ii) construction and demolition debris in any sanitary landfill permitted for the disposal of construction and demolition debris, which landfill has a valid and operative franchise agreement and is otherwise properly permitted pursuant to G.S. 130A‑294."

ESTABLISH COASTAL STORM DAMAGE MITIGATION FUND
SECTION 7.  Article 21 of Chapter 143 of the General Statutes is amended by adding a new Part to read:
"Part 8D. Coastal Storm Damage Mitigation Fund.
"§ 143‑215.73M.  Coastal Storm Damage Mitigation Fund.
(a)	Fund Established. – The Coastal Storm Damage Mitigation Fund is established as a special revenue fund. The Fund consists of General Fund appropriations, gifts, grants, devises, monies contributed by a non‑State entity for a particular beach nourishment or damage mitigation project or group of projects, and any other revenues specifically allocated to the Fund by an act of the General Assembly.
(b)	Uses of the Fund. – Revenue credited to the Fund may only be used for costs associated with beach nourishment, artificial dunes, and other projects to mitigate or remediate coastal storm damage to the ocean beaches and dune systems of the State.
(c)	Conditions on Funding. – Any project funded by revenue from the Fund must be cost‑shared with non‑State dollars as follows:
(1)	The cost share for dredging projects located, in whole or part, in a development tier one area, as defined in G.S. 143B‑437.08, shall be at least one non‑State dollar for every three dollars from the Fund.
(2)	The cost share for dredging projects not located, in whole or part, in a development tier one area shall be at least one non‑State dollar for every two dollars from the Fund.
(d)	Return of Non‑State Entity Funds. – Non‑State entities that contribute to the Fund for a particular project or group of projects may make a written request to the Secretary that the contribution be returned if the contribution has not been spent or encumbered within two years of receipt of the contribution by the Fund. If the written request is made prior to the funds being spent or encumbered, the Secretary shall return the funds to the entity within 30 days after the later of (i) receiving the request or (ii) the expiration of the two‑year period described by this subsection."

SEVERABILITY CLAUSE AND EFFECTIVE DATE
SECTION 8.(a)  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part declared to be unconstitutional or invalid.
SECTION 8.(b)  Except as otherwise provided, this act is effective when it becomes law.