Bill Summary – FastDemocracy

H.B. 500
                          GENERAL ASSEMBLY OF NORTH CAROLINA
                                                                                             Apr 8, 2021
                                      SESSION 2021                                    HOUSE PRINCIPAL CLERK
     H                                                                                               D
                                  HOUSE BILL DRH40303-NBa-115A
     Short Title:   Disaster Relief and Mitigation Act of 2021.                                 (Public)
     Sponsors:      Representative Bell.
     Referred to:
                                A BILL TO BE ENTITLED
 AN ACT TO ENACT THE DISASTER RELIEF AND MITIGATION ACT OF 2021.
 The General Assembly of North Carolina enacts:
 4
 ESTABLISHMENT OF THE DISASTER RELIEF AND MITIGATION FUND
             SECTION 1.(a) There is established the Disaster Relief and Mitigation Fund (Fund)
 in the Department of Public Safety, Division of Emergency Management (Division). Any funds
 appropriated to the Fund shall remain available for expenditure as provided in this section unless
 directed otherwise by the General Assembly.
             SECTION 1.(b) The Division shall administer a grant program that allows units of
 local government and nonprofit corporations to apply for funds to be used for any of the
 following:
             (1)    Flood mitigation efforts that stabilize areas and reduce future damage.
             (2)    Predevelopment assistance to provide small and underserved communities
                    with technical assistance to identify and design shovel-ready projects related
                    to disaster relief and flood mitigation.
             (3)    Matching funds for federal grants and other federal funding for projects
                    related to disaster relief and flood mitigation.
             SECTION 1.(c) There is appropriated from the General Fund to the Disaster Relief
 and Mitigation Fund in the Department of Public Safety, Division of Emergency Management,
 the sum of twenty million dollars ($20,000,000) in nonrecurring funds for the 2021-2022 fiscal
 year to be used for the purposes set out in this section.
23
 ESTABLISHMENT OF THE TRANSPORTATION INFRASTRUCTURE RESILIENCY
 FUND
             SECTION 2.(a) There is established the Transportation Infrastructure Resiliency
 Fund (Fund) in the Department of Public Safety, Division of Emergency Management (Division).
 Any funds appropriated to the Fund shall remain available for expenditure as provided in this
 section unless directed otherwise by the General Assembly.
             SECTION 2.(b) The Division shall administer a grant program to ensure
 transportation resilience against natural disasters. The Division shall consult with the Department
 of Transportation prior to awarding grants to State agencies, units of local government, and
 nonprofit corporations. Funds may be used for any of the following:
             (1)     Projects that update and prepare transportation infrastructure for storms,
                     mudslides, and flooding events.
                                *DRH40303-NBa-115A*
     General Assembly Of North Carolina                                                  Session 2021
            (2)    Risk assessments for critical transportation routes, building on existing and
                   future reports such as the I-95 and I-40 Flood Resilience Feasibility Study.
             (3)   Create community-informed flood risk and vulnerability assessments that
                   identify resilience gaps and project opportunities for transportation routes in
                   North Carolina to help maintain vital transportation functions following
                   flooding events.
             SECTION 2.(c) There is appropriated from the General Fund to the Transportation
 Infrastructure Resiliency Fund in the Department of Public Safety, Division of Emergency
 Management, the sum of twenty million dollars ($20,000,000) in nonrecurring funds for the
 2021-2022 fiscal year to be used for the purposes set out in this section.
11
 MAKE NORTH CAROLINA OFFICE OF RECOVERY AND RESILIENCY
 PERMANENT
             SECTION 3.(a) Subpart A of Part 5 of Chapter 143B of the General Statutes is
 amended by adding a new section to read:
 "§ 143B-1001. The North Carolina Office of Recovery and Resiliency.
     (a)     There is established within the Division of Emergency Management the North
 Carolina Office of Recovery and Resiliency (NCORR), which shall be organized and staffed in
 accordance with applicable law and within the limits of authorized appropriations.
     (b)     NCORR shall having the following functions:
             (1)    To execute multiyear recovery and resiliency projects.
             (2)    To administer funds provided by the Community Development Block Grant
                    Disaster Recovery program.
             (3)    To provide general disaster recovery coordination and public information,
                    citizen outreach, and application case management.
             (4)    To audit, finance, comply with, and report on disaster recovery funds and
                    program and construction management services.
             (5)    To contract for services from vendors specializing in housing, construction,
                    and project management services.
             (6)    To develop and administer a grant program for financially distressed local
                    governments to assist with recovery and resiliency capacity.
             (7)    To provide technical assistance to local governments.
     (c)     Funds for NCORR may be used to locate NCORR employees in key regions or to
 foster partnerships with councils of government in order to address capacity gaps and aid local
 governments to access federal funds for resiliency and recovery projects and activities."
             SECTION 3.(b) NCORR shall establish an intergovernmental working group
 composed of representatives from the Department of Environmental Quality, local governments,
 and other stakeholders to identify jurisdictional challenges related to stream management and
 flooding reduction. The working group shall make recommendations to the Joint Legislative
 Emergency Management Oversight Committee by February 1, 2022.
             SECTION 3.(c) There is appropriated from the General Fund to the Department of
 Public Safety, North Carolina Office of Recovery and Resiliency, the sum of five hundred
 twenty-four thousand three hundred sixty-three dollars ($524,363) in recurring funds for the
 2021-2022 fiscal year and five hundred ninety-four thousand three hundred sixty-three dollars
 ($594,363) in recurring funds for the 2022-2023 fiscal year. The funds shall be used to support
 up to five full-time equivalent positions to provide technical support to communities with
 resiliency planning and projects to protect communities from flooding and other natural disasters.
48
 FLOOD RESILIENCE BLUEPRINT
            SECTION 4. Ten million dollars ($10,000,000) of Community Development Block
 Grant. – Mitigation Program funds are hereby allocated to the Department of Public Safety, North
     Page 2                                                                    DRH40303-NBa-115A
     General Assembly Of North Carolina                                                   Session 2021
 Carolina Office of Recovery and Resiliency (NCORR), to be used to develop Flood Resilience
 Blueprints for major watersheds impacted by flooding, including the Cape Fear River and the
 Neuse River Basins. These watershed blueprints shall form the backbone of a State flood
 planning process that increases community resilience to flooding, shall be a resource for riverine
 and stream management to reduce flooding, and should support the establishment and furtherance
 of local government stormwater maintenance programs. NCORR shall identify the major
 watersheds affected by flooding and direct these funds toward the activities which are central to
 the creation of actionable blueprints, namely flood risk assessment, identification of data gaps,
 and recommendations to reduce flood risk for each target watershed. When developing the
 blueprints, NCORR shall incorporate local knowledge, community goals, and hydrologic
 modeling to create a decision tool for flood mitigation investments and strategies from local
 watersheds up to whole river basins. A successful blueprint should ultimately lead to a prioritized
 set of projects and funding strategies that the State can implement. NCORR is encouraged to
 examine examples from other states such as the Louisiana Coastal Master Plan or the flood
 resilience planning processes in South Carolina and Virginia. NCORR shall report by July 1,
 2022, to the Oversight Committee on Agriculture and Natural and Economic Resources and the
 Joint Legislative Emergency Management Oversight Committee the implementation of this
 section.
19
 TARGETED FUNDING FOR FLOOD MITIGATION/NORTH CAROLINA LAND AND
 WATER FUND
              SECTION 5.(a) There is appropriated from the General Fund to the North Carolina
 Land and Water Fund in the Department of Natural and Cultural Resources the sum of twenty
 million dollars ($20,000,000) in nonrecurring funds for the 2021-2022 fiscal year. The Division
 of Land and Water Stewardship shall use the funds to provide grants to counties, municipalities,
 nonprofit corporations, and other State agencies for projects addressing the purposes specified in
 G.S. 143B-135.234(c)(12). The Division shall develop criteria to score projects based on the
 ability of a project to reduce flood risks.
              SECTION 5.(b) G.S 143B-135.244 reads as rewritten:
 "§ 143B-135.244. Clean Water Management Trust Fund: reporting requirement.
     The Chair of the Board of Trustees shall report no later than December 1 each year to the
 Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources, the
 Environmental Review Commission, the Subcommittees of the House of Representatives and
 Senate Appropriations Committees with jurisdiction over natural and economic resources, and
 the Fiscal Research Division of the General Assembly regarding the implementation of this Part.
 The report shall include a list of the projects awarded grants from the Fund for the previous
 12-month period. The list shall include for each project a description of the project, the amount
 of the grant awarded for the project, and the total cost of the project. In 2024 and annually
 thereafter, the report shall also include a review of all projects funded over time pursuant to
 G.S. 143B-135.234(c)(12) and the extent to which each project reduced flooding during flooding
 events."
42
 FUND ADDITIONAL POSITIONS AND OTHER PURPOSES/DIVISION OF COASTAL
 MANAGEMENT/COASTAL RESILIENCY PROGRAM
             SECTION 6. There is appropriated from the General Fund to the Department of
 Environmental Quality, Division of Coastal Management, the sum of one million three hundred
 thousand dollars ($1,300,000) in recurring funds for the 2021-2023 fiscal biennium to be used
 for the following purposes:
             (1)    Create four additional permanent full-time positions to staff the Resilient
                    Coastal Communities Program.
             (2)    Coastal planning and management grants.
     DRH40303-NBa-115A                                                                           Page 3
     General Assembly Of North Carolina                                                  Session 2021
 1
 FUND NC 2-1-1 SYSTEM
            SECTION 7. There is appropriated from the General Fund to the Department of
 Public Safety, Division of Emergency Management, the sum of two hundred fifty thousand
 dollars ($250,000) in nonrecurring funds to support NC 2-1-1 activities.
 6
 ADDITIONAL FUNDS FOR COASTAL STORM MITIGATION
            SECTION 7.1. There is appropriated from the General Fund to the Department of
 Environmental Quality the sum of twenty million dollars ($20,000,000) in nonrecurring funds
 for the 2021-2022 fiscal year to be allocated to the Coastal Storm Mitigation Fund.
11
 PILOT PROGRAM FOR NATURAL INFRASTRUCTURE FLOOD MITIGATION
 WITHIN THE DIVISION OF MITIGATION SERVICES
             SECTION 8.(a) There is appropriated from the General Fund to the Department of
 Environmental Quality, Division of Mitigation Services, the sum of five million dollars
 ($5,000,000) in nonrecurring funds for the 2021-2022 fiscal year. The funds shall be used in
 accordance with G.S. 143-214.11A to create one or more pilot projects addressing chronic
 flooding in the Stoney Creek watershed impacting businesses, roadways, and access to
 emergency services in Wayne County and Goldsboro. The pilot shall also serve as the basis for
 expanding natural infrastructure flood mitigation projects to additional watersheds and scaling
 solutions to enhance community resilience across North Carolina.
             SECTION 8.(b) There is appropriated from the General Fund to the Department of
 Environmental Quality, Division of Mitigation Services, the sum of twenty-five million dollars
 ($25,000,000) in nonrecurring funds for the 2021-2022 fiscal year to be allocated to the Natural
 Infrastructure Flood Mitigation program to be used for flood reduction projects in no less than
 three and up to six additional priority watersheds.
             SECTION 8.(c) G.S. 143-214.11A is amended by adding a new subsection to read:
     "(e) The Division shall include in the annual report required by G.S. 143-214.13
 information on projects funded under this section. The report shall include a list and description
 of projects funded, the amount of State funds and total budget for each project, and the amount
 of flood storage capacity enhanced or restored for each project."
32
 NEUSE RIVER FLOOD MITIGATION
             SECTION 9. There is appropriated from the General Fund to the Department of
 Public Safety, North Carolina Office of Recovery and Resiliency, the sum of thirty-two million
 two hundred thousand dollars ($32,200,000) in nonrecurring funds for the 2021-2022 fiscal year
 to be allocated as follows and with regard to the Neuse River flood mitigation activities:
             (1)     $5,200,000 for Seven Spring Levee.
             (2)     $5,000,000 for Stoney Creek acquisitions.
             (3)     $12,000,000 for 301/Railroad elevation.
             (4)     $10,000,000 for buyouts.
42
 LUMBER RIVER FLOOD MITIGATION
             SECTION 10. There is appropriated from the General Fund to the Department of
 Public Safety, North Carolina Office of Recovery and Resiliency, the sum of thirty-six million
 five hundred thousand dollars ($36,500,000) in nonrecurring funds for the 2021-2022 fiscal year
 to be allocated as follows and with regard to Lumber River flood mitigation activities:
             (1)     $18,000,000 for channel widening.
             (2)     $5,000,000 for Lumberton CSX/Floodgates.
             (3)     $3,500,000 for Fairbluff levee.
             (4)     $10,000,000 for buyouts.
     Page 4                                                                    DRH40303-NBa-115A
     General Assembly Of North Carolina                                                      Session 2021
 1
 MILITARY PRESERVATION AND RURAL RESILIENCY TAX CREDIT
              SECTION 11.(a) G.S. 105-130.34 is reenacted as it existed immediately before its
 expiration and reads as rewritten:
 "§ 105-130.34. Credit for certain real property donations.
      (a)     Credit. – Any C Corporation that makes a qualified donation of an interest in real
 property located in North Carolina during the taxable year that is useful for (i) public beach access
 or use, (ii) public access to public waters or trails, (iii) fish and wildlife conservation, (iv)
 forestland or farmland conservation, (v) watershed protection, (vi) conservation of natural areas
 as that term is defined in G.S. 113A-164.3(3), (vii) conservation of natural or scenic river areas
 as those terms are used in G.S. 113A-34, (viii) conservation of predominantly natural parkland,
 or (ix) historic landscape conservation (i) for farmland preservation, (ii) as a buffer to limit land
 use activities that would restrict, impede, or interfere with military training, testing, or operations
 on a military installation or training area or otherwise be incompatible with the mission of the
 installation, (iii) for fish and wildlife conservation, or (iv) for floodplain protection in a county
 that, in the five years preceding the donation, was the subject of a Type II or Type III
 gubernatorial disaster declaration, as provided in G.S. 166A-19.21, as a result of a natural disaster
 is allowed a credit against the tax imposed by this Part equal to twenty-five percent (25%) of the
 fair market value of the donated property interest. To be eligible for this credit, the interest in
 real property must be donated in perpetuity for one of the qualifying uses listed in this subsection
 and accepted in perpetuity for the qualifying use for which the property is donated. The person
 to whom the property is donated must be the State, a local government, or a body that is both
 organized to receive and administer lands for conservation purposes and qualified to receive
 charitable contributions pursuant to G.S. 105-130.9. Lands required to be dedicated pursuant to
 local governmental regulation or ordinance and dedications made to increase building density
 levels permitted under a regulation or ordinance are not eligible for this cred