SB 605 — North Carolina Farm Act of 2021.

…."All CREATEdesigners Aand NEWconsultants GENERALshall PERMITbe FORselected FARMSwithin WITH60 FARMdays DIGESTERof SYSTEMSthe SECTIONdate 11.(a)funds G.S.are appropriated for a project by the General Assembly or the date of project authorization by the Director of the Budget;

provided, however, the State Building Commission may grant an exception to this requirement upon written request of the funded agency if (i) no site was selected for the project beforethe fundswereappropriatedor(ii) fundswereappropriatedfor advance Senate Bill 605-First Edition Page 9 General Assembly Of North Carolina Session 2021 planning only;

provided, further, the Director of the Budget, after consultation with the State Construction Office, may waive the 60-day requirement for the purpose of minimizing project costs through increased competition and improvements in the market availability of qualified contractors to bid on Statecapital improvement projects.

TheDirector of the Budget also may, after consultation with the State Construction Office, schedule the availability of design and construction funds for capital improvement projects for the purpose of minimizing project costs through increased competition and improvements in the market availability of qualified contractors to bid on State capital improvement projects.

The State Building Commission shall submit a written report to the Joint Legislative Commission on Governmental Operations on the Commission's selection of a designer for a project within 30 days of selecting the designer.

…." SECTION 10.(b) Part 3 of Article 1 of Chapter 106 of the General Statutes is amended by adding a new section to read:

"§ 106-22.8.

Powers of the Board regarding certain fee negotiations, contracts, and capital improvements.

(a) Notwithstanding G.S.

143-341(3), the Board of Agriculture shall, with respect to the design, construction, or renovation of buildings, utilities, and other property developments of the Department of Agriculture and Consumer Services requiring the estimated expenditure of public funds of two million dollars ($2,000,000) or less, do all of the following:

(1) Conduct the fee negotiations for all design contracts and supervise the letting of all construction and design contracts.

(2) Develop procedures governing the responsibilities of the Department of Agriculture and Consumer Services to perform the duties of the Department of Administration and the Director or Office of State Construction under G.S.

133-1.1(d) and G.S.

143-341(3).

(3) Develop procedures and reasonable limitations governing the use of open-end design agreements, subject to G.S.

143-64.34 and the approval of the State Building Commission.

(4) Useexistingplansandspecifications forconstructionprojects, wherefeasible.

Prior to designing a project, the Board of Agriculture shall consult with the Department of Administration on the availability of existing plans and specifications and the feasibility of using them for a project.

(b) The Department of Agriculture and Consumer Services shall use the standard contracts for design and construction currently in use for State capital improvement projects by the Office of State Construction of the Department of Administration.

(c) A contract may not be divided for the purpose of evading the monetary limit under this section.

(d) The Board of Agriculture shall annually report to the State Building Commission the following:

(1) A list of projects governed by this section.

(2) The estimated cost of each project along with the actual cost.

(3) The name of each person awarded a contract under this section.

(4) Whether the person or business awarded a contract under this section meets the definition of "minority business" or "minority person" as defined in G.S.

143-128.2(g)." SECTION 10.(c) This section becomes effective July 1, 2021, and applies to contracts executed on or after that date.

Page 10 Senate Bill 605-First Edition General Assembly Of North Carolina Session 2021 CREATE A NEW GENERAL PERMIT FOR FARMS WITH FARM DIGESTER SYSTEMS SECTION 11.(a) G.S.

Unless the context otherwise requires, the following terms as used in this Article and Articles 21A and 21B of this Chapter are defined as follows:

… (5a) The termsterm "animal waste"biomass andgas "animalfacility" wastemeans managementa system"facilitythat havereceives the samegases meaningcollected asfrom inone G.S.or more farm digester systems, for collection, cleaning, or other preparation of those gases prior to their introduction into a system for the collection and transport of natural gas or other similar energy resources.

(5b) The terms "animal waste" and "animal waste management system" have the same meaning as in G.S.

… Senate Bill 605-Second Edition Page 9 General Assembly Of North Carolina Session 2021 (12a) The term "farm digester system" means a system, including all associated equipmentequipment, and lagoon covers, by which gases are collected and processed from an animal wastemanagementsystemwaste forthemanagement digestionofsystem for the digestion of animal biomass for use as a renewable energy resource.

AThe term may also refer to a part of the farm digester systemsystem, shallincluding belagoon consideredcovers, andigester agriculturalequipment, feedlotassociated activitysafety withinequipment, theemergency meaningflares, ofor "animalany operation"piping andor shallother alsoequipment beor consideredmeans afor partthe ofcollection, anhandling, "animalprocessing, wasteor managementtransport system"of ascollected thosegases termsto areor definedfrom inan G.S.animal biomass gas facility.

A farm digester system shall be considered an agricultural feedlot activity within the meaning of "animal operation" as that term is defined in G.S.

62-133.8(a)(8), that utilizes animal waste asasabiomassresource,includingafarmdigestersystemandananimalbiomass agas biomassfacility. resource, including a farm digester system.

The Commission, in its discretion, may require that an animal wastewastemanagementsystembepermittedunderanindividualpermitiftheCommissiondetermines management system system, including an animal waste management system that utilizes a farm digester system, be permitted under an individual permit ifis thenecessary Commissionto determinesprotect thatwater anquality, individualpublic permithealth, isor necessarytothe protectenvironment. waterquality,publichealth,ortheenvironment.

AfterThe theowner generalor permitoperator forof an animal operationsoperation thatshall includessubmit authorizationan application for thea permitteepermit toat constructleast and180 operatedays prior to construction of a farmnew digesteranimal waste management system hasor beenexpansion issued,of thean decisionexisting toanimal requirewaste anmanagement individualsystem permitand shall notobtain bethe basedpermit solelyprior onto thecommencement factSenate thatBill the605-First animalEdition wastePage management11 systemGeneral utilizesAssembly aOf farmNorth digesterCarolina system.Session 2021 of the construction or expansion.

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.

(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 Page 10 Senate Bill 605-Second Edition General Assembly Of North Carolina Session 2021 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.

(1) "Certificate of coverage" means an approval granted to a person who meets the requirements of coverage under a general permit as provided in 15A NCAC 02T02H .0111.0127 (Conditions(General for Issuing General Permits).

(3) "Notice of intent" means a request for coverage under a general permit usingas formsprovided approvedin by15A theNCAC Division02H of.0127 Water(General ResourcesPermits). of the Department of Environmental Quality.

In addition to conditions required to describe and authorize the construction,construction monitoring, and proper operation of farm digester systems, the general permit shall contain the same conditions that are included in the currently existinggeneralexisting general permits foranimalfor operations.animal operations, except for conditions relating to phosphorus loss assessment tests, groundwater monitoring, and the filing of annual reports.

The general permit shall becomeeffectivenolaterbecome than 12 months after the effective dateno of this section and shall expire on the later ofthan Septembersix 30,months 2024,after or the effective date of thethis nextsection. version of the currently existing general permit for animal operations.

SECTION 11.(e) Until the general permit issued under subsection (d) of this section becomes effective, any animal operation that holds a general or individual permit that (i) is in effect on the effective date of this section and (ii) authorizes the construction and operation of a farm digester systemsystem, may construct and continue to operate the farm digester system as authorized by that permit.

For any animal operation that holds a general or individual permit that is in effect on the effective date of this section, but that does not authorize the construction and operation ofafarmdigestersystem,ofafarm digestersystem, anoperatormaysubmit anoticeofintent to becoveredunder thethegeneral general permit to bebedevelopedundersubsection(d)ofthis developed under subsection (d) of this section.

IfWhenanoperatorsubmits a notice of intent, the submittedCommission shall, within 90 days of receipt of the notice of intentintent, iseither incomplete,issue a certificate of coverage allowing the Commissionoperator shallto construct and operate the farm digester system or notify the applicantoperator of the deficiencybasis infor the noticedenial of intent.the certificate of coverage and give the operator an opportunity to respond to the denial, provided that the denial must be based on a substantial deviation from the applicable requirements to receive the certificate of coverage.

WhenIf anthe operatorCommission submitsfails ato completedtake action on the notice of intent,intent within 90 days, authorization to construct and operate a farm digester system under the existing general permit shall be deemed approved, and the Commission shall, within 9010 days offollowing receiptthe expiration of the completed90-day noticetime ofperiod, intent, either issue a certificatewritten ofconfirmation coveragethat allowingthe animal operation is covered by the operatorthen-existing togeneral constructpermit and operatethat the farmapplicant digestermay systemcontinue orto notifyoperate thean operatorexisting offarm thedigester basissystem, foror themay denialconstruct ofand theoperate certificatea ofnew coverage.farm digester system.

IfSECTION the11.(f) CommissionIn failsacting to take action on thea notice of intent withinfor 90all days,or authorizationpart toof construct and operate a farm digester systemsystem, under the existingCommission generalmay permitsolicit public comment but shall benot deemedhold approved.or require a public hearing.

SECTION 11.(f) Nothing in this section shall apply to permits for facilities that are required to be permitted under 40 C.F.R.

§ 122, as amended at 73 Federal Register 70418 (November 20, 2008).

"New swine farm" does not include any Senate Bill 605-Second Edition Page 11 General Assembly Of North Carolina Session 2021 preexisting swine farm, even if a subsequent site evaluation is performed on or after October 1, 1995, at the preexisting swine farm.

Page 12 Senate Bill 605-First Edition General Assembly Of North Carolina Session 2021 (2)(3) "Preexistingswinefarm" means anyswine farm eithertheoperations ofwhich were begun prior to October 1, 1995, or the site evaluation of which was approved prior to October 1, 1995, by the Department of Environmental Quality under Part 1A of Article 21 of Chapter 143 of the General Statutes.

(3) TheExcept constructionas orprovided renovationin subsection (c) of thethis section, for any portion of a farm digester system shallthat complyfails withto themeet any siting requirementsrequirement setfor outa inlagoon under G.S.

106-803106-803, the construction or renovation of the farm digester system does not result in any portion of the constructed or renovated farm digester system being located any closer to the maximumbuilding, extentproperty, practicable.or well that is the object of the siting requirement that the farm digester system fails to meet.

Except as provided in subsection (c) of this section, construction or renovation of the farm digester system shall not result in any portion of the constructed or renovated farm digester system being located closer to the building, property, or well that is the object of the siting requirement than any existing component of the animal waste management system that fails to meet the siting requirements of G.S.

106-803.

105-275(8)150B-34 is amended by adding a new sub-subdivisionsubsection to read:

"a2."(f) In any contested case involving a permitting action for a general permit for animal operations that includes authorization for the permittee to construct and operate a farm digester system, unless all parties to thecase agreeotherwisein writing, theadministrativelawjudgeshall conduct the hearing and make a final decision or order no later than 90 days after the commencement of the contested case pursuant to G.S.

Notwithstanding150B-23. sub-subdivision a1.

Upon written request of the administrative law judge or any party to the hearing, the Chief Administrative Law Judge may extend this subdivision,deadline sub-subdivisionfor a.good cause shown, no more than two times, for not more than 30 days per extension." SECTION 11.(i) G.S.

of150B-44 thisreads subdivision applies to a farm digester system as definedrewritten: in G.S.

143-213(12a).""§ SECTION150B-44. 11.(i) This section is effective when it becomes law.

CLARIFYRight THEto DURATIONjudicial OFintervention DRIVERSwhen LICENSESfinal FORdecision H-2Aunreasonably WORKERSdelayed. SECTION 12.(a) G.S.

(a) Failure of an administrative law judge subject to Article 3 of this Chapter or failure of an agencysubject to Article 3A of this Chapter to make a final decision within 120 days of the close of the contested case hearing is justification for a person whose rights, duties, or privileges are adversely affected by the delay to seek a court order compelling action by the agency or by the administrative law judge.

(b) Failure of an agency to make a final permitting decision involving 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 agency's receipt of a notice of intent, is justification for a person whose rights, duties, or privileges are adverselyaffected bythe delay to seek a court order compelling action by the agency.

It shall not be necessary to file a petition for a contested case hearing pursuant to Article 3 of this Chapter to seek judicial relief.

Any judicial review pursuant to this subsection involving allegations of failure to act within 90 days, or involving a claim of Senate Bill 605-First Edition Page 13 General Assembly Of North Carolina Session 2021 delay in the issuance of any order under G.S.

150B-34(f), shall be given expedited judicial review." SECTION 11.(j) G.S.

105-275 reads as rewritten:

"§ 105-275.

Property classified and excluded from the tax base.

The following classes of property are designated special classes under Article V, Sec.

2(2), of the North Carolina Constitution and are excluded from tax:

… (8) a.

Real and personal property that is used or, if under construction, is to be used exclusively for air cleaning or waste disposal or to abate, reduce, or prevent the pollution of air or water (including, but not limited to, waste lagoons and facilities owned by public or private utilitiesbuiltandinstalledprimarilyforthepurposeofprovidingsewer service to areas that are predominantlyresidential in character or areas that lie outside territory already having sewer service), if the Department of Environmental Quality or a local air pollution control program for air-cleaning devices located in an area where the Environmental Management Commission has certified a local air pollution control program pursuant to G.S.

143-215.112 furnishes a certificate to the tax supervisor of the county in which the property is situated or to be situated stating that the Environmental Management Commission or local air pollution control program has found that the described property:

1.

Has been or will be constructed or installed;

2.

Complies with or that plans therefor which have been submitted to the Environmental Management Commission or local air pollution control program indicate that it will comply with the requirements of the Environmental Management Commission or local air pollution control program;

3.

Is being effectively operated or will, when completed, be requiredtooperatein accordancewiththetermsandconditions of the permit, certificate of approval, or other document of approval issued by the Environmental Management Commission or local air pollution control program;

and 4.

Has or, when completed, will have as its primary rather than incidental purpose the reduction of water pollution resulting from the discharge of sewage and waste or the reduction of air pollution resulting from the emission of air contaminants.

a1.

Sub-subdivision a.

of this subdivision shall not apply to an animal wastemanagementsystem, as definedin G.S.

143-215.10B,unless the Environmental Management Commission determines that the animal waste management system will accomplish all of the following:

1.

Eliminate the discharge of animal waste to surface waters and groundwater through direct discharge, seepage, or runoff.

2.

Substantially eliminate atmospheric emissions of ammonia.

3.

Substantially eliminate the emission of odor that is detectable beyond the boundaries of the parcel or tract of land on which the farm is located.

4.

Substantially eliminate the release of disease-transmitting vectors and airborne pathogens.

5.

Substantially eliminate nutrient and heavy metal contamination of soil and groundwater.

Page 14 Senate Bill 605-First Edition General Assembly Of North Carolina Session 2021 …." SECTION 11.(k) Subsection (h) of this section becomes effective on the date that the general permit required to be issued by the Environmental Management Commission under subsection (d) of this section becomes effective.

The remainder of this section is effective when it becomes law.

7 CLARIFY THE DURATION OF DRIVERS LICENSES FOR H-2A WORKERS SECTION 12.(a) G.S.

provided, if at any time during that three-year period an H-2A worker's visa duration is not extended by United States Citizenship and Immigration Page 12 Senate Bill 605-Second Edition General Assembly Of North Carolina Session 2021 Services, the license expires on the date the H-2A worker's visa expires.

7SEVERABILITY RETALIATORYCLAUSE EMPLOYMENTAND DISCRIMINATIONEFFECTIVE ACTDATE AMENDMENT SECTION 13.13.(a) If any provision of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this act that can be given effect without the invalid provision or application, and, to this end, the provisions of this act are declared to be severable.

G.S.SECTION13.(b) Except as otherwise provided,this act is effective when it becomes law.

95-242(a)Senate readsBill as605-First rewritten:Edition Page 15

"(a) An employee allegedly aggrieved by a violation of G.S.

95-241 may file a written complaint with the Commissioner of Labor alleging the violation.

The complaint shall be filed within 180 days of the alleged violation.

Within 20 days following receipt of the complaint, the Commissioner shall forward a copy of the complaint to the person alleged to have committed the violation and shall initiate an investigation.

If the Commissioner determines after the investigation that there is not reasonable cause to believe that the allegation is true, the Commissioner shall dismiss the complaint, complaint and promptly notify the employee and the respondent, and issue a right-to-sue letter to the employee that will enable the employee to bring a civil action pursuant to G.S.

95-243.

respondent.

If the Commissioner determines after investigationthatthereis reasonablecauseto believethattheallegationis true,theCommissioner shall attempt to eliminate the alleged violation by informal methods which may consist of conference, conciliation, and persuasion.

The Commissioner shall make a determination as soon as possible and, in any event, not later than 90 days after the filing of the complaint." SEVERABILITY CLAUSE AND EFFECTIVE DATE SECTION 14.(a) If any provision of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this act that can be given effect without the invalid provision or application, and, to this end, the provisions of this act are declared to be severable.

SECTION14.(b) Except as otherwise provided,this act is effective when it becomes law.

Senate Bill 605-Second Edition Page 13