H.B. 722 GENERAL ASSEMBLY OF NORTH CAROLINA Apr 18, 2023 SESSION 2023 HOUSE PRINCIPAL CLERK H D HOUSE BILL DRH40389-MHa-23A Short Title: Poultry Waste Management. (Public) Sponsors: Representative Harrison. Referred to: 1 A BILL TO BE ENTITLED 2 AN ACT TO CREATE A PERMITTING PROGRAM FOR DRY LITTER POULTRY 3 OPERATIONS; TO DIRECT THE ENVIRONMENTAL REVIEW COMMISSION TO 4 STUDY AND DETERMINE THE NUMBER AND LOCATION OF POULTRY FARMS 5 (CAFOS) IN NORTH CAROLINA, THE DRY LITTER WASTE MANAGEMENT 6 SYSTEMS AND PRACTICES THAT ARE EMPLOYED BY THESE FARMS, THE 7 POTENTIAL ENVIRONMENTAL AND HEALTH IMPACTS AND DAMAGES THESE 8 SYSTEMS AND PRACTICES MAY HAVE, AND RECOMMENDATIONS ON HOW 9 BEST TO REGULATE THESE WASTE MANAGEMENT SYSTEMS IN PROTECTING 10 THE ENVIRONMENT AND THE PUBLIC'S HEALTH AND SAFETY; AND TO REVISE 11 WASTE MANAGEMENT PLAN SUBMISSION REQUIREMENTS FOR DRY LITTER 12 POULTRY FACILITIES. 13 Whereas, as poultry production in the United States has increased, the total number 14 of farms has declined; and 15 Whereas, ninety-seven percent (97%) of the 9 billion chickens produced for 16 consumption each year are raised in Concentrated Animal Feeding Operations (CAFOs); and 17 Whereas, it is estimated that in 2022, the State had over 544 million poultry and 4,863 18 dry litter poultry facilities, compared to 8.8 million hogs and 2,489 hog farms; and 19 Whereas, among all animal operations in the State, those with poultry are the largest 20 source of nutrients from waste. The waste produced, known as dry litter, is a mixture of manure, 21 bedding, and feathers that contains heavy metals and pathogens in addition to nutrients; and 22 Whereas, for disposal, the waste is applied onto adjacent fields or trucked a short 23 distance to be used as fertilizer. When mobilized in runoff or subsurface flow, the waste is a 24 threat to water quality; and 25 Whereas, because dry litter poultry operations do not discharge their waste directly to 26 surface waters, they are not regulated under the National Pollution Discharge Elimination System 27 (NPDES), and these operations are deemed permitted unless an illicit discharge is reported and 28 documented by staff; and 29 Whereas, the nation's leading poultry states, including Georgia and Arkansas, have 30 adopted proactive policy and comprehensive nutrient management plans that protect the natural 31 environment and public health without creating an unnecessary burden on agricultural interests; 32 and 33 Whereas, in addition to nutrient pollution from runoff of land application sites, the 34 lack of regulatory oversight for dry poultry litter also threatens surrounding communities through 35 pathogen-laden surface waters and contaminated flood waters; and *DRH40389-MHa-23A* General Assembly Of North Carolina Session 2023 1 Whereas, this pollution disproportionately impacts communities of color and 2 jeopardizes economic drivers in all communities; and 3 Whereas, G.S. 143-215.10C requires that any owner or operator of a dry litter poultry 4 facility that is not subject to federal regulation but that involves 30,000 or more birds shall 5 develop an animal waste management plan; and 6 Whereas, the North Carolina Department of Environmental Quality basin planning 7 group has requested access to any information regarding nutrient loading rates from dry litter 8 poultry operations; and 9 Whereas, there have been substantial technological advances to the disposition of 10 poultry waste, including various recycling technologies such as anaerobic digestion, with 11 beneficial economic outcomes to both the industry and the public, and there has been significant 12 passage of time since this agricultural industry has been studied. Such review and discovery can 13 be beneficial to all; Now, therefore, 14 The General Assembly of North Carolina enacts: 15 16 PART I. PERMITTING OF INDUSTRIAL POULTRY OPERATIONS AND LIMIT 17 THOSE OPERATIONS IN 100-YEAR FLOODPLAIN 18 SECTION 1.(a) G.S. 143-215.10B(1) reads as rewritten: 19 "(1) "Animal operation" means any agricultural feedlot activity involving 250 or 20 more swine, 100 or more confined cattle, 75 or more horses, 1,000 or more 21 sheep, or 30,000 or more confined poultry with a liquid animal waste 22 management system, poultry, or any agricultural feedlot activity with a liquid 23 animal waste management system that discharges to the surface waters of the 24 State. A public livestock market regulated under Article 35 of Chapter 106 of 25 the General Statutes is an animal operation for purposes of this Part." 26 SECTION 1.(b) G.S. 143-215.10C reads as rewritten: 27 "§ 143-215.10C. Applications and permits. 28 (a) No person shall construct or operate an animal waste management system for an 29 animal operation or operate an animal waste management system for a dry litter poultry facility 30 that is required to be permitted under 40 Code of Federal Regulations § 122, as amended at 73 31 Federal Register 70418 (November 20, 2008), without first obtaining an individual permit or a 32 general permit under this Article. The Commission shall develop a system of individual and 33 general permits for animal operations and operations, including dry litter poultry facilities 34 facilities, based on species, number of animals, and other relevant factors. The Commission shall 35 develop a general permit for animal operations that includes authorization for the permittee to 36 construct and operate a farm digester system. It is the intent of the General Assembly that most 37 animal waste management systems be permitted under a general permit. The Commission, in its 38 discretion, may require that an animal waste management system, including an animal waste 39 management system that utilizes a farm digester system, be permitted under an individual permit 40 if the Commission determines that an individual permit is necessary to protect water quality, 41 public health, or the environment. After the general permit for animal operations that includes 42 authorization for the permittee to construct and operate a farm digester system has been issued, 43 the decision to require an individual permit shall not be based solely on the fact that the animal 44 waste management system utilizes a farm digester system. The owner or operator of an animal 45 operation shall submit an application for a permit at least 180 days prior to construction of a new 46 animal waste management system or expansion of an existing animal waste management system 47 and shall obtain the permit prior to commencement of the construction or expansion. The owner 48 or operator of a dry litter poultry facility that is required to be permitted under 40 Code of Federal 49 Regulations § 122, as amended at 73 Federal Register 70418 (November 20, 2008), shall submit 50 an application for a permit at least 180 days prior to operation of a new animal waste management 51 system. Page 2 DRH40389-MHa-23A General Assembly Of North Carolina Session 2023 1 (a1) An owner or operator of an animal waste management system for an animal operation 2 or a dry litter poultry facility that is required to be permitted under 40 Code of Federal 3 Regulations § 122, as amended at 73 Federal Register 70418 (November 20, 2008), shall apply 4 for an individual National Pollutant Discharge Elimination System (NPDES) permit or a general 5 NPDES permit under this Article and may not discharge into waters of the State except in 6 compliance with an NPDES permit. 7 (b) An animal waste management system that is not required to be permitted under 40 8 Code of Federal Regulations § 122, as amended at 73 Federal Register 70418 (November 20, 9 2008), shall be designed, constructed, and operated so that the animal operation served by the 10 animal waste management system does not cause pollution in the waters of the State except as 11 may result because of rainfall from a storm event more severe than the 25-year, 24-hour storm. 12 (b1) An existing animal waste management system that is required to be permitted under 13 40 Code of Federal Regulations § 122, as amended at 73 Federal Register 70418 (November 20, 14 2008), shall be designed, constructed, maintained, and operated in accordance with 40 Code of 15 Federal Regulations § 412, as amended at 73 Federal Register 70418 (November 20, 2008), so 16 that the animal operation served by the animal waste management system does not cause 17 pollution in waters of the State except as may result because of rainfall from a storm event more 18 severe than the 25-year, 24-hour storm. A new animal operation or dry litter poultry facility that 19 is required to be permitted under 40 Code of Federal Regulations § 412.46, as amended at 73 20 Federal Register 70418 (November 20, 2008), shall be designed, constructed, maintained, and 21 operated so that there is no discharge of pollutants to waters of the State. 22 (c) The Commission shall act on a permit application as quickly as possible and may 23 conduct any inquiry or investigation it considers necessary before acting on an application. 24 (c1) Failure of the Commission to make a final permitting decision involving a notice of 25 intent for a certificate of coverage under a general permit for animal operations that includes 26 authorization for the permittee to construct and operate a farm digester system within 90 days of 27 the Commission's receipt of a completed notice of intent shall result in the deemed approval of 28 coverage under the permit. If the Commission fails to act within 90 days of the Commission's 29 receipt of a completed notice of intent, the permittee may request that the Commission provide 30 written confirmation that the notice of intent is deemed approved. Failure to provide this written 31 confirmation within 10 days of the request shall serve as a basis to seek a contested case hearing 32 pursuant to Article 3 of Chapter 150B of the General Statutes. Unless all parties to the case agree 33 otherwise in writing, the administrative law judge shall issue a final decision or order in the 34 contested case no later than 120 days after its commencement pursuant to G.S. 150B-23; 35 provided that, upon written request of the administrative law judge or any party to the hearing, 36 the Chief Administrative Law Judge may extend this deadline for good cause shown, no more 37 than two times, for not more than 30 days per extension. Upon review of a failure to act on a 38 notice of intent, the administrative law judge may either (i) direct the Commission to issue a 39 written certificate of coverage under the general permit or (ii) deny the petition. 40 (d) All applications for permits or for renewal of an existing permit shall be in writing, 41 and the Commission may prescribe the form of the applications. All applications shall include an 42 animal waste management system plan approved by a technical specialist. The Commission may 43 require an applicant to submit additional information the Commission considers necessary to 44 evaluate the application. Permits and renewals issued pursuant to this section shall be effective 45 until the date specified therein or until rescinded unless modified or revoked by the Commission. 46 (e) An animal waste management plan for an animal operation shall include all of the 47 following components: 48 (1) A checklist of potential odor sources and a choice of site-specific, 49 cost-effective remedial best management practices to minimize those sources. 50 (2) A checklist of potential insect sources and a choice of site-specific, 51 cost-effective best management practices to minimize insect problems. DRH40389-MHa-23A Page 3 General Assembly Of North Carolina Session 2023 1 (3) Provisions that set forth acceptable methods of disposing of mortalities. 2 (4) Provisions regarding best management practices for riparian buffers or 3 equivalent controls, particularly along perennial streams. 4 (5) Provisions regarding the use of emergency spillways and site-specific 5 emergency management plans that set forth operating procedures to follow 6 during emergencies in order to minimize the risk of environmental damage. 7 (6) Provisions regarding periodic testing of waste products used as nutrient 8 sources as close to the time of application as practical and at least within 60 9 days of the date of application and periodic testing, at least once every three 10 years, of soils at crop sites where the waste products are applied. Nitrogen 11 shall be a rate-determining element. Phosphorus shall be evaluated according 12 to the nutrient management standard approved by the Soil and Water 13 Conservation Commission of the Department of Agriculture and Consumer 14 Services and the Natural Resources Conservation Service of the United States 15 Department of Agriculture for facilities that are required to be permitted under 16 40 Code of Federal Regulations § 122, as amended at 73 Federal Register 17 70418 (November 20, 2008). If the evaluation demonstrates the need to limit 18 the application of phosphorus in order to comply with the nutrient 19 management standard, then phosphorus shall be a rate-determining element. 20 Zinc and copper levels in the soils shall be monitored, and alternative crop 21 sites shall be used when these metals approach excess levels. 22 (7) Provisions regarding waste utilization plans that assure a balance between 23 nitrogen application rates and nitrogen crop requirements, that assure that lime 24 is applied to maintain pH in the optimum range for crop production, and that 25 include corrective action, including revisions to the waste utilization plan 26 based on data of crop yields and crops analysis, that will be taken if this 27 balance is not achieved as determined by testing conducted pursuant to 28 subdivision (6) of this subsection. 29 (8) Provisions regarding the completion and maintenance of records on forms 30 developed by the Department, which records shall include information 31 addressed in subdivisions (6) and (7) of this subsection, including the dates 32 and rates that waste products are applied to soils at crop sites, and shall be 33 made available upon request by the Department. 34 (f) Any owner or operator of a dry litter poultry facility that is not required to be 35 permitted under 40 Code of Federal Regulations § 122, as amended at 73 Federal Register 70418 36 (November 20, 2008), but that involves 30,000 or more birds shall develop an animal waste 37 management plan that complies with the testing and record-keeping requirements under 38 subdivisions (6) through (8) of subsection (e) of this section. Any operator of this type of animal 39 waste management system shall retain records required under this section and by the Department 40 on-site for three years. 41 (f1) An animal waste management plan for a dry litter poultry facility required to be 42 permitted under 40 Code of Federal Regulations § 122, as amended at 73 Federal Register 70418 43 (November 20, 2008), shall include the components set out in subdivisions (3), (6), (7), and (8) 44 of subsection (e) of this section, and to the extent required by 40 Code of Federal Regulations § 45 122, as amended at 73 Federal Register 70418 (November 20, 2008), for land application 46 discharges, subdivision (4) of subsection (e) of this section. 47 (f2) Periodic testing of waste products as required in subdivision (6) of subsection (e) of 48 this section, subsection (f) of this section and subsection (f1) of this section may be temporarily 49 suspended in compliance with G.S. 106-399.4 when the State Veterinarian, in consultation with 50 the Commissioner of Agriculture and with the approval of the Governor, determines that there is 51 an imminent threat within the State of a contagious animal disease. The suspension of testing Page 4 DRH40389-MHa-23A General Assembly Of North Carolina Session 2023 1 only applies to the animal operation types designated by the State Veterinarian, and shall be in 2 effect for a period of time that the State Veterinarian deems necessary to prevent and control the 3 animal disease. During the suspension of waste analysis, waste product nutrient content to be