A BILL TO BE ENTITLED
AN ACT to create a permitting program for dry litter poultry operations; to direct the environmental review commission to study and determine the number and location of poultry farms (CAFOs) in North Carolina, the dry litter waste management systems and practices that are employed by these farms, the potential environmental and health impacts and damages these systems and practices may have, and recommendations on how best to regulate these waste management systems in protecting the environment and the public's health and safety; and to revise waste management plan submission requirements for dry litter poultry facilities.
Whereas, as poultry production in the United States has increased, the total number of farms has declined; and
Whereas, ninety‑seven percent (97%) of the 9 billion chickens produced for consumption each year are raised in Concentrated Animal Feeding Operations (CAFOs); and
Whereas, it is estimated that in 2022, the State had over 544 million poultry and 4,863 dry litter poultry facilities, compared to 8.8 million hogs and 2,489 hog farms; and
Whereas, among all animal operations in the State, those with poultry are the largest source of nutrients from waste. The waste produced, known as dry litter, is a mixture of manure, bedding, and feathers that contains heavy metals and pathogens in addition to nutrients; and
Whereas, for disposal, the waste is applied onto adjacent fields or trucked a short distance to be used as fertilizer. When mobilized in runoff or subsurface flow, the waste is a threat to water quality; and
Whereas, because dry litter poultry operations do not discharge their waste directly to surface waters, they are not regulated under the National Pollution Discharge Elimination System (NPDES), and these operations are deemed permitted unless an illicit discharge is reported and documented by staff; and
Whereas, the nation's leading poultry states, including Georgia and Arkansas, have adopted proactive policy and comprehensive nutrient management plans that protect the natural environment and public health without creating an unnecessary burden on agricultural interests; and
Whereas, in addition to nutrient pollution from runoff of land application sites, the lack of regulatory oversight for dry poultry litter also threatens surrounding communities through pathogen‑laden surface waters and contaminated flood waters; and
Whereas, this pollution disproportionately impacts communities of color and jeopardizes economic drivers in all communities; and
Whereas, G.S. 143‑215.10C requires that any owner or operator of a dry litter poultry facility that is not subject to federal regulation but that involves 30,000 or more birds shall develop an animal waste management plan; and
Whereas, the North Carolina Department of Environmental Quality basin planning group has requested access to any information regarding nutrient loading rates from dry litter poultry operations; and
Whereas, there have been substantial technological advances to the disposition of poultry waste, including various recycling technologies such as anaerobic digestion, with beneficial economic outcomes to both the industry and the public, and there has been significant passage of time since this agricultural industry has been studied. Such review and discovery can be beneficial to all; Now, therefore,
The General Assembly of North Carolina enacts:

Part I. Permitting of industrial Poultry operations and limit those operations in 100‑year floodplain
SECTION 1.(a)  G.S. 143‑215.10B(1) reads as rewritten:
"(1)	"Animal operation" means any agricultural feedlot activity involving 250 or more swine, 100 or more confined cattle, 75 or more horses, 1,000 or more sheep, or 30,000 or more confined poultry, or any agricultural feedlot activity with a liquid animal waste management system that discharges to the surface waters of the State. A public livestock market regulated under Article 35 of Chapter 106 of the General Statutes is an animal operation for purposes of this Part."
SECTION 1.(b)  G.S. 143‑215.10C reads as rewritten:
"§ 143‑215.10C.  Applications and permits.
(a)	No person shall construct or operate an animal waste management system for an animal operation without first obtaining an individual permit or a general permit under this Article. The Commission shall develop a system of individual and general permits for animal operations, including dry litter poultry facilities, based on species, number of animals, and other relevant factors. The Commission shall develop a general permit for animal operations that includes authorization for the permittee to construct and operate a farm digester system. It is the intent of the General Assembly that most animal waste management systems be permitted under a general permit. The Commission, in its discretion, may require that an animal waste management system, including an animal waste management system that utilizes a farm digester system, be permitted under an individual permit if the Commission determines that an individual permit is necessary to protect water quality, public health, or the environment. After the general permit for animal operations that includes authorization for the permittee to construct and operate a farm digester system has been issued, the decision to require an individual permit shall not be based solely on the fact that the animal waste management system utilizes a farm digester system. The owner or operator of an animal operation shall submit an application for a permit at least 180 days prior to construction of a new animal waste management system or expansion of an existing animal waste management system and shall obtain the permit prior to commencement of the construction or expansion.
(a1)	An owner or operator of an animal waste management system for an animal operation shall apply for an individual National Pollutant Discharge Elimination System (NPDES) permit or a general NPDES permit under this Article and may not discharge into waters of the State except in compliance with an NPDES permit.
(b)	An animal waste management system that is not required to be permitted under 40 Code of Federal Regulations § 122, as amended at 73 Federal Register 70418 (November 20, 2008), shall be designed, constructed, and operated so that the animal operation served by the animal waste management system does not cause pollution in the waters of the State except as may result because of rainfall from a storm event more severe than the 25‑year, 24‑hour storm.
(b1)	An existing animal waste management system that is required to be permitted under 40 Code of Federal Regulations § 122, as amended at 73 Federal Register 70418 (November 20, 2008), shall be designed, constructed, maintained, and operated in accordance with 40 Code of Federal Regulations § 412, as amended at 73 Federal Register 70418 (November 20, 2008), so that the animal operation served by the animal waste management system does not cause pollution in waters of the State except as may result because of rainfall from a storm event more severe than the 25‑year, 24‑hour storm. A new animal operation shall be designed, constructed, maintained, and operated so that there is no discharge of pollutants to waters of the State.
(c)	The Commission shall act on a permit application as quickly as possible and may conduct any inquiry or investigation it considers necessary before acting on an application.
(c1)	Failure of the Commission to make a final permitting decision involving a notice of intent for a certificate of coverage under a general permit for animal operations that includes authorization for the permittee to construct and operate a farm digester system within 90 days of the Commission's receipt of a completed notice of intent shall result in the deemed approval of coverage under the permit. If the Commission fails to act within 90 days of the Commission's receipt of a completed notice of intent, the permittee may request that the Commission provide written confirmation that the notice of intent is deemed approved. Failure to provide this written confirmation within 10 days of the request shall serve as a basis to seek a contested case hearing pursuant to Article 3 of Chapter 150B of the General Statutes. Unless all parties to the case agree otherwise in writing, the administrative law judge shall issue a final decision or order in the contested case no later than 120 days after its commencement pursuant to G.S. 150B‑23; provided that, upon written request of the administrative law judge or any party to the hearing, the Chief Administrative Law Judge may extend this deadline for good cause shown, no more than two times, for not more than 30 days per extension. Upon review of a failure to act on a notice of intent, the administrative law judge may either (i) direct the Commission to issue a written certificate of coverage under the general permit or (ii) deny the petition.
(d)	All applications for permits or for renewal of an existing permit shall be in writing, and the Commission may prescribe the form of the applications. All applications shall include an animal waste management system plan approved by a technical specialist. The Commission may require an applicant to submit additional information the Commission considers necessary to evaluate the application. Permits and renewals issued pursuant to this section shall be effective until the date specified therein or until rescinded unless modified or revoked by the Commission.
(e)	An animal waste management plan for an animal operation shall include all of the following components:
(1)	A checklist of potential odor sources and a choice of site‑specific, cost‑effective remedial best management practices to minimize those sources.
(2)	A checklist of potential insect sources and a choice of site‑specific, cost‑effective best management practices to minimize insect problems.
(3)	Provisions that set forth acceptable methods of disposing of mortalities.
(4)	Provisions regarding best management practices for riparian buffers or equivalent controls, particularly along perennial streams.
(5)	Provisions regarding the use of emergency spillways and site‑specific emergency management plans that set forth operating procedures to follow during emergencies in order to minimize the risk of environmental damage.
(6)	Provisions regarding periodic testing of waste products used as nutrient sources as close to the time of application as practical and at least within 60 days of the date of application and periodic testing, at least once every three years, of soils at crop sites where the waste products are applied. Nitrogen shall be a rate‑determining element. Phosphorus shall be evaluated according to the nutrient management standard approved by the Soil and Water Conservation Commission of the Department of Agriculture and Consumer Services and the Natural Resources Conservation Service of the United States Department of Agriculture for facilities that are required to be permitted under 40 Code of Federal Regulations § 122, as amended at 73 Federal Register 70418 (November 20, 2008). If the evaluation demonstrates the need to limit the application of phosphorus in order to comply with the nutrient management standard, then phosphorus shall be a rate‑determining element. Zinc and copper levels in the soils shall be monitored, and alternative crop sites shall be used when these metals approach excess levels.
(7)	Provisions regarding waste utilization plans that assure a balance between nitrogen application rates and nitrogen crop requirements, that assure that lime is applied to maintain pH in the optimum range for crop production, and that include corrective action, including revisions to the waste utilization plan based on data of crop yields and crops analysis, that will be taken if this balance is not achieved as determined by testing conducted pursuant to subdivision (6) of this subsection.
(8)	Provisions regarding the completion and maintenance of records on forms developed by the Department, which records shall include information addressed in subdivisions (6) and (7) of this subsection, including the dates and rates that waste products are applied to soils at crop sites, and shall be made available upon request by the Department.

(f2)	Periodic testing of waste products as required in subdivision (6) of subsection (e) of this section may be temporarily suspended in compliance with G.S. 106‑399.4 when the State Veterinarian, in consultation with the Commissioner of Agriculture and with the approval of the Governor, determines that there is an imminent threat within the State of a contagious animal disease. The suspension of testing only applies to the animal operation types designated by the State Veterinarian, and shall be in effect for a period of time that the State Veterinarian deems necessary to prevent and control the animal disease. During the suspension of waste analysis, waste product nutrient content to be used for application of waste at no greater than agronomic rates shall be established by the 1217 Interagency Committee as created by Session Law 1995‑626.
…."
SECTION 1.(c)  Part 1A of Article 21 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143‑215.10J.  Industrial scale animal waste management systems forbidden in 100‑year floodplain.
No component of an animal waste management system for an animal operation shall be constructed on land that is located within the 100‑year floodplain. As used in this section, "100‑year floodplain" means any area subject to inundation by the one percent (1%) annual chance flood event, as indicated on the most recent Flood Insurance Rate Map prepared by the Federal Emergency Management Agency under the National Flood Insurance Program."
SECTION 1.(d)  G.S. 106‑850 reads as rewritten:
"§ 106‑850.  Agriculture cost share program.
(a)	There is created the Agriculture Cost Share Program for Nonpoint Source Pollution Control. The program shall be created, implemented, and supervised by the Soil and Water Conservation Commission.
(b)	The program shall be subject to the following requirements and limitations:
…
(5)	Funding may be provided to assist practices including conservation tillage, diversions, filter strips, field borders, critical area plantings, sedimentation control structures, sod‑based rotations, grassed waterways, strip‑cropping, terraces, cropland conversion to permanent vegetation, grade control structures, water control structures, closure of lagoons, closure of animal waste management systems as defined in G.S. 143‑215.10B located in 100‑year floodplains, emergency spillways, riparian buffers or equivalent controls, odor control best management practices, insect control best management practices, and animal waste management systems and application. Funding for animal waste management shall be allocated for practices in river basins such that the funds will have the greatest impact in improving water quality.
…."
SECTION 1.(e)  This section becomes effective January 1, 2024.

Part II. Study
SECTION 2.(a)  The definitions set out in G.S. 143‑215.10B shall apply to this act.
SECTION 2.(b)  The Environmental Review Commission shall conduct a fact‑driven, science‑based study of the environmental and public health impacts of dry litter poultry waste in North Carolina and the potential regulatory and technological solutions for addressing these impacts. The Commission shall specifically study all of the following:
(1)	The growth of the poultry industry in the State, including the current location, size, and number of dry litter poultry facilities in the State.
(2)	The location, size, and number of dry litter poultry facilities located in the 500‑year floodplain. The Commission shall consider options for removing such facilities from the floodplain or requiring management practices to make such facilities more resilient during flooding events.
(3)	The amount of dry litter poultry waste produced by dry litter poultry facilities, the methods of disposing of the waste, the documentation of how waste is disposed of, and how much of the waste is disposed of on‑site by the waste generator and how much is disposed of off‑site by a third‑party hauler or waste transport and disposal company.
(4)	The environmental impacts of dry litter poultry waste, including surface water impacts, groundwater impacts, soil contamination, and atmospheric deposition caused by nutrients such as nitrogen and phosphorus and heavy metals such as arsenic, copper, and zinc.
(5)	The public health impacts of dry litter poultry waste, including impacts related to odor, drinking water contamination, drug residues, pathogens, and disease vectors and pests.
(6)	The health impacts of dry litter poultry waste on workers at dry litter poultry facilities and people living in close proximity to dry litter poultry facilities.
(7)	The cumulative environmental and public health impacts of waste produced by dry litter poultry facilities and animal operations for swine.
(8)	The current regulation of dry litter poultry facilities and the potential regulation of dry litter poultry facilities to better protect the environment and public health. The Commission shall identify the deficiencies in the regulation of dry litter poultry facilities in the State and consider whether the regulations of dry litter poultry facilities in other states and the regulation of animal operations for swine in the State should be applied to dry litter poultry facilities.
(9)	The disposal of dead poultry in cases of severe storms or flooding events.
(10)	The current and potential animal waste management technologies that could reduce or eliminate the environmental and public health impacts of dry litter poultry waste.
(11)	The need for additional resources, including appropriations, professional expertise, and scientific studies, necessary to comprehensively examine the issues set out in this act.
SECTION 2.(c)  Upon its request, the Commission shall be assisted by all State agencies, including the Department of Agriculture and Consumer Services, the Department of Environmental Quality, the Department of Health and Human Services, the Department of Labor, the North Carolina Poultry Federation, and The University of North Carolina and its constituent institutions. The Commission may request recommendations from any of these entities related to any of the topics set out in this act.
SECTION 2.(d)  The Commission shall report its findings, including any recommendations, to the 2024 Regular Session of the 2023 General Assembly upon its convening.

Part III. Reporting requirement
SECTION 3.(a)  G.S. 143‑215.10C(f) reads as rewritten:
"(f)	Any owner or operator of a dry litter poultry facility that is not required to be permitted under 40 Code of Federal Regulations § 122, as amended at 73 Federal Register 70418 (November 20, 2008), but that involves 30,000 or more birds shall develop and annually submit to the Department in a digital format an animal waste management plan that complies with the testing and record‑keeping requirements under subdivisions (6) through (8) of subsection (e) of this section. Any operator of this type of animal waste management system shall retain records required under this section and by the Department on‑site for three years."
SECTION 3.(b)  The sum of twenty‑five thousand dollars ($25,000) in nonrecurring funds for the 2023‑2024 fiscal year is appropriated from the General Fund to the Department of Environmental Quality to be allocated to the Division of Water Resources to develop educational resources and provide technical assistance for owners and operators of dry litter poultry facilities in complying with the reporting requirement set out in this act.
SECTION 3.(c)  Subsection (a) of this section is effective January 1, 2024. Subsection (b) of this section becomes effective July 1, 2023.

Part IV. Increase transparency
SECTION 4.  G.S. 106‑24.1 reads as rewritten:
"§ 106‑24.1.  Confidentiality of information collected and published.
All information published by the Department of Agriculture and Consumer Services pursuant to this Part shall be classified so as to prevent the identification of information received from individual farm operators. All information generated by any federal agency received pursuant to this Chapter that is confidential under federal law shall be held confidential by the Department and its employees, unless confidentiality is waived by the federal agency. Complaints of violations of this Chapter or of Part 1A of Article 21 of Chapter 143 of the General Statutes relating to a farm operation and all other records accumulated in conjunction with the investigation of these complaints shall be considered confidential records and may be released only by order of a court of competent jurisdiction. All information collected by the Department from farm owners or animal owners, including, but not limited to, certificates of veterinary inspection, animal medical records, laboratory reports received or generated from samples submitted for analysis shall not be disclosed without the permission of the owner except in the following situations:
(1)	The State Veterinarian determines that disclosure is necessary to prevent the spread of an animal disease or to protect the public health, or the disclosure is necessary in the implementation of these animal health programs.
(2)	The disclosure is necessary to meet statutory requirements imposed on other State agencies.
(3)	The information is limited to the location, size, and ownership of an individual farm operation."

Part V. severability and effective date
SECTION 5.  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 so declared to be unconstitutional or invalid.
SECTION 6.  Except as otherwise provided, this act is effective when it becomes law.