GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H D HOUSE BILL DRH40406-MHa-68 Short Title: Poultry Waste Management. (Public) Sponsors: Representative Harrison. Referred to: *DRH40406 -MHa-68* A BILL TO BE ENTITLED 1 AN ACT TO CREATE A PERMITTING PROGRAM FOR DRY LITTER POULTRY 2 OPERATIONS; TO DIRECT THE ENVIRONMENTAL REVIEW COMMISSION TO 3 STUDY AND DETERMINE THE NUMBER AND LOCATION OF POULTRY FARMS 4 (CAFOS) IN NORTH CAROLINA, THE DRY LITTER WASTE MANAGEMENT 5 SYSTEMS AND PRACTICES THAT ARE EMPLOYED BY THESE FARMS, THE 6 POTENTIAL ENVIRONMENTAL AND HEALTH IMPACTS AND DAMAGES THESE 7 SYSTEMS AND PRACTICES MAY HAVE, AND RECOMMENDATIONS ON HOW 8 BEST TO REGULATE THESE WASTE MANAGEMENT SYSTEMS IN PROTECTING 9 THE ENVIRONMENT AND THE PUBLIC 'S HEALTH AND SAFETY; AND TO REVISE 10 WASTE MANAGEMENT PLAN SUBMISSION REQUIREMENTS FOR DRY LITTER 11 POULTRY FACILITIES. 12 Whereas, as poultry production in the United States has increased, the total number 13 of farms has declined; and 14 Whereas, ninety-seven percent (97%) of the 9 billion chickens produced for 15 consumption each year are raised in Concentrated Animal Feeding Operations (CAFOs); and 16 Whereas, it is estimated that in 2022, the State had over 544 million poultry and 4,863 17 dry litter poultry facilities, compared to 8.8 million hogs and 2,489 hog farms; and 18 Whereas, among all animal operations in the State, those with poultry are the largest 19 source of nutrients from waste. The waste produced, known as dry litter, is a mixture of manure, 20 bedding, and feathers that contains heavy metals and pathogens in addition to nutrients; and 21 Whereas, for disposal, the waste is applied onto adjacent fields or trucked a short 22 distance to be used as fertilizer. When mobilized in runoff or subsurface flow, the waste is a 23 threat to water quality; and 24 Whereas, because dry litter poultry operations do not discharge their waste directly to 25 surface waters, they are not regulated under the National Pollution Discharge Elimination System 26 (NPDES), and these operations are deemed permitted unless an illicit discharge is reported and 27 documented by staff; and 28 Whereas, in addition to nutrient pollution from runoff of land application sites, the 29 lack of regulatory oversight for dry poultry litter also threatens surrounding communities through 30 pathogen-laden surface waters, odor and health hazards from disposal of dead birds, and 31 contaminated flood waters; and 32 Whereas, this pollution disproportionately impacts communities of color and 33 jeopardizes economic drivers in all communities; and 34 H.B. 867 Apr 9, 2025 HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025 Page 2 DRH40406-MHa-68 Whereas, G.S. 143-215.10C requires that any owner or operator of a dry litter poultry 1 facility that is not subject to federal regulation but that involves 30,000 or more birds shall 2 develop an animal waste management plan; and 3 Whereas, the North Carolina Department of Environmental Quality basin planning 4 group has requested access to any information regarding nutrient loading rates from dry litter 5 poultry operations; and 6 Whereas, a study of the industrial poultry industry would be beneficial to all because 7 there have been substantial technological advances in the disposition of poultry waste, including 8 various recycling technologies such as anaerobic digestion that result in beneficial economic 9 outcomes to both the industry and the public, and there has been significant passage of time since 10 this part of the agricultural sector of the State has been studied; Now, therefore, 11 The General Assembly of North Carolina enacts: 12 13 PART I. PERMITTING OF INDUSTRIAL POULTRY OPERATIONS AND LIMIT 14 THOSE OPERATIONS IN 100-YEAR FLOODPLAIN 15 SECTION 1.(a) G.S. 143-215.10B(1) reads as rewritten: 16 "(1) "Animal operation" means (i) any agricultural feedlot activity involving 250 17 or more swine, 100 or more confined cattle, 75 or more horses, 1,000 or more 18 sheep, or 30,000 or more confined poultry with a liquid animal waste 19 management system, or 82,000 or more confined poultry with a dry litter 20 waste management system or (ii) any agricultural feedlot activity with a liquid 21 animal waste management system that discharges to the surface waters of the 22 State. A public livestock market regulated under Article 35 of Chapter 106 of 23 the General Statutes is an animal operation for purposes of this Part." 24 SECTION 1.(b) G.S. 143-215.10C reads as rewritten: 25 "§ 143-215.10C. Applications and permits. 26 (a) No person shall construct or operate an animal waste management system for an 27 animal operation or operate an animal waste management system for a dry litter poultry facility 28 that is required to be permitted under 40 Code of Federal Regulations § 122, as amended at 73 29 Federal Register 70418 (November 20, 2008), without first obtaining an individual permit or a 30 general permit under this Article. The Commission shall develop a system of individual and 31 general permits for animal operations and operations, including dry litter poultry facilities 32 facilities, based on species, number of animals, and other relevant factors. The Commission shall 33 develop a general permit for animal operations that includes authorization for the permittee to 34 construct and operate a farm digester system. It is the intent of the General Assembly that most 35 animal waste management systems be permitted under a general permit. The Commission, in its 36 discretion, may require that an animal waste management system, including an animal waste 37 management system that utilizes a farm digester system, be permitted under an individual permit 38 if the Commission determines that an individual permit is necessary to protect water quality, 39 public health, or the environment. After the general permit for animal operations that includes 40 authorization for the permittee to construct and operate a farm digester system has been issued, 41 the decision to require an individual permit shall not be based solely on the fact that the animal 42 waste management system utilizes a farm digester system. The owner or operator of an animal 43 operation shall submit an application for a permit at least 180 days prior to construction of a new 44 animal waste management system or expansion of an existing animal waste management system 45 and shall obtain the permit prior to commencement of the construction or expansion. The owner 46 or operator of a dry litter poultry facility that is required to be permitted under 40 Code of Federal 47 Regulations § 122, as amended at 73 Federal Register 70418 (November 20, 2008), shall submit 48 an application for a permit at least 180 days prior to operation of a new animal waste management 49 system. 50 General Assembly Of North Carolina Session 2025 DRH40406-MHa-68 Page 3 (a1) An owner or operator of an animal waste management system for an animal operation 1 or a dry litter poultry facility that is required to be permitted under 40 Code of Federal 2 Regulations § 122, as amended at 73 Federal Register 70418 (November 20, 2008), shall apply 3 for an individual National Pollutant Discharge Elimination System (NPDES) permit or a general 4 NPDES permit under this Article and may not discharge into waters of the State except in 5 compliance with an NPDES permit. 6 (b) An animal waste management system that is not required to be permitted under 40 7 Code of Federal Regulations § 122, as amended at 73 Federal Register 70418 (November 20, 8 2008), shall be designed, constructed, and operated so that the animal operation served by the 9 animal waste management system does not cause pollution in the waters of the State except as 10 may result because of rainfall from a storm event more severe than the 25-year, 24-hour storm. 11 (b1) An existing animal waste management system that is required to be permitted under 12 40 Code of Federal Regulations § 122, as amended at 73 Federal Register 70418 (November 20, 13 2008), shall be designed, constructed, maintained, and operated in accordance with 40 Code of 14 Federal Regulations § 412, as amended at 73 Federal Register 70418 (November 20, 2008), so 15 that the animal operation served by the animal waste management system does not cause 16 pollution in waters of the State except as may result because of rainfall from a storm event more 17 severe than the 25-year, 24-hour storm. A new animal operation or dry litter poultry facility that 18 is required to be permitted under 40 Code of Federal Regulations § 412.46, as amended at 73 19 Federal Register 70418 (November 20, 2008), shall be designed, constructed, maintained, and 20 operated so that there is no discharge of pollutants to waters of the State. 21 (c) The Commission shall act on a permit application as quickly as possible and may 22 conduct any inquiry or investigation it considers necessary before acting on an application. No 23 permit shall be denied, and no condition shall be attached to a permit, except when the 24 Commission finds that the denial or conditions are necessary to effectuate the purposes of this 25 Part. 26 (c1) Failure of the Commission to make a final permitting decision involving a notice of 27 intent for a certificate of coverage under a general permit for animal operations that includes 28 authorization for the permittee to construct and operate a farm digester system within 90 days of 29 the Commission's receipt of a completed notice of intent shall result in the deemed approval of 30 coverage under the permit. If the Commission fails to act within 90 days of the Commission's 31 receipt of a completed notice of intent, the permittee may request that the Commission provide 32 written confirmation that the notice of intent is deemed approved. Failure to provide this written 33 confirmation within 10 days of the request shall serve as a basis to seek a contested case hearing 34 pursuant to Article 3 of Chapter 150B of the General Statutes. Unless all parties to the case agree 35 otherwise in writing, the administrative law judge shall issue a final decision or order in the 36 contested case no later than 120 days after its commencement pursuant to G.S. 150B-23; 37 provided that, upon written request of the administrative law judge or any party to the hearing, 38 the Chief Administrative Law Judge may extend this deadline for good cause shown, no more 39 than two times, for not more than 30 days per extension. Upon review of a failure to act on a 40 notice of intent, the administrative law judge may either (i) direct the Commission to issue a 41 written certificate of coverage under the general permit or (ii) deny the petition. 42 (d) All applications for permits or for renewal of an existing permit shall be in writing, 43 and the Commission may prescribe the form of the applications. All applications shall include an 44 animal waste management system plan approved by a technical specialist. The Commission may 45 require an applicant to submit additional information the Commission considers necessary to 46 evaluate the application. Permits and renewals issued pursuant to this section shall be effective 47 until the date specified therein or until rescinded unless modified or revoked by the Commission. 48 (e) An animal waste management plan for an animal operation shall include all of the 49 following components: 50 General Assembly Of North Carolina Session 2025 Page 4 DRH40406-MHa-68 (1) A checklist of potential odor sources and a choice of site-specific, 1 cost-effective remedial best management practices to minimize those sources. 2 (2) A checklist of potential insect sources and a choice of site-specific, 3 cost-effective best management practices to minimize insect problems. 4 (3) Provisions that set forth acceptable methods of disposing of mortalities. 5 (4) Provisions regarding best management practices for riparian buffers or 6 equivalent controls, particularly along perennial streams. 7 (5) Provisions regarding the use of emergency spillways and site-specific 8 emergency management plans that set forth operating procedures to follow 9 during emergencies in order to minimize the risk of environmental damage. 10 (6) Provisions regarding periodic testing of waste products used as nutrient 11 sources as close to the time of application as practical and at least within 60 12 days of the date of application and periodic testing, at least once every three 13 years, of soils at crop sites where the waste products are applied. Nitrogen 14 shall be a rate-determining element. Phosphorus shall be evaluated according 15 to the nutrient management standard approved by the Soil and Water 16 Conservation Commission of the Department of Agriculture and Consumer 17 Services and the Natural Resources Conservation Service of the United States 18 Department of Agriculture for facilities that are required to be permitted under 19 40 Code of Federal Regulations § 122, as amended at 73 Federal Register 20 70418 (November 20, 2008). If the evaluation demonstrates the need to limit 21 the application of phosphorus in order to comply with the nutrient 22 management standard, then phosphorus shall be a rate-determining element. 23 Zinc and copper levels in the soils shall be monitored, and alternative crop 24 sites shall be used when these metals approach excess levels. 25 (7) Provisions regarding waste utilization plans that assure a balance between 26 nitrogen and phosphorus application rates and nitrogen and phosphorus crop 27 requirements, that assure that lime is applied to maintain pH in the optimum 28 range for crop production, and that include corrective action, including 29 revisions to the waste utilization plan based on data of crop yields and crops 30 analysis, that will be taken if this balance is not achieved as determined by 31 testing conducted pursuant to subdivision (6) of this subsection. 32 (8) Provisions regarding the completion and maintenance of records on forms 33 developed by the Department, which records shall include information 34 addressed in subdivisions (6) and (7) of this subsection, including the dates 35 and rates that waste products are applied to soils at crop sites, and shall be 36 made available upon request by the Department. 37 (f) Any owner or operator of a dry litter poultry facility that is not required to be 38 permitted under 40 Code of Federal Regulations § 122, as amended at 73 Federal Register 70418 39 (November 20, 2008), but that involves 30,000 or more birds shall develop an animal waste 40 management plan that complies with the testing and record-keeping requirements under 41 subdivisions (6) through (8) of subsection (e) of this section. Any operator of this type of animal 42 waste management system shall retain records required under this section and by the Department 43 on-site for three years. 44 (f1) An animal waste management plan for a dry litter poultry facility required to be 45 permitted under 40 Code of Federal Regulations § 122, as amended at 73 Federal Register 70418 46 (November 20, 2008), shall include the components set out in subdivisions (3), (6), (7), and (8) 47 of subsection (e) of this section, and to the extent required by 40 Code of Federal Regulations § 48 122, as amended at 73 Federal Register 70418 (November 20, 2008), for land application 49 discharges, subdivision (4) of subsection (e) of this section. 50 General Assembly Of North Carolina Session 2025 DRH40406-MHa-68 Page 5 (f2) Periodic testing of waste products as required in subdivision (6) of subsection (e) of 1 this section, subsection (f) of this section and subsection (f1) of this section may be temporarily 2 suspended in compliance with G.S. 106-399.4 when the State Veterinarian, in consultation with 3 the Commissioner of Agriculture and with the approval of the Governor, determines that there is 4 an imminent threat within the State of a contagious animal disease. The suspension of testing 5 only applies to the animal operation types designated by the State Veterinarian, and shall be in 6 effect for a period of time that the State Veterinarian deems necessary to prevent and control the 7 animal disease. During the suspension of waste analysis, waste product nutrient content to be 8 used for application of waste at no greater than agronomic rates shall be established by the 1217 9 Interagency Committee as created by Session Law 1995-626. 10 …." 11 SECTION 1.(c) Part 1A of Article 21 of Chapter 143 of the General Statutes is 12 amended by adding a new section to read: 13 "§ 143-215.10J. Industrial scale animal waste management systems forbidden in 100-year 14 floodplain. 15 No component of an animal waste management system for an animal operation shall be 16 constructed on land that is located within the 100-year floodplain. As used in this section, 17 "100-year floodplain" means any area subject to inundation by the one percent (1%) annual 18 chance flood event, as indicated on the most recent Flood Insurance Rate Map prepared by the 19 Federal Emergency Management Agency under the National Flood Insurance Program." 20 SECTION 1.(d) G.S. 106-850 reads as rewritten: 21 "§ 106-850. Agriculture cost share program. 22 (a) There is created the Agriculture Cost Share Program for Nonpoint Source Pollution 23 Control. The program shall be created, implemented, and supervised by the Soil and Water 24 Conservation Commission. 25 (b) The program shall be subject to the following requirements and limitations: 26 … 27 (5) Funding may be provided to assist practices including conservation tillage, 28 diversions, filter strips, field borders, critical area plantings, sedimentation 29 control structures, sod-based rotations, grassed waterways, strip-cropping, 30 terraces, cropland conversion to permanent vegetation, grade control 31 structures, water control structures, closure of lagoons, closure of animal 32 waste management systems as defined in G.S. 143-215.10B located in 33 100-year floodplains, emergency spillways, riparian buffers or equivalent 34 controls, odor control best management practices, insect control best 35 management practices, and animal waste management systems and 36 application. Funding for animal waste management shall be allocated for 37 practices in river basins such that the funds will have the greatest impact in 38 improving water quality. 39 …." 40 SECTION 1.(e) This section becomes effective January 1, 2026. 41 42 PART II. STUDY 43 SECTION 2.(a) The definitions set out in G.S. 143-215.10B shall apply to this act. 44 SECTION 2.(b) The Environmental Review Commission shall conduct a 45 fact-driven, science-based study of the environmental and public health impacts of dry litter 46 poultry waste in North Carolina and the potential regulatory and technological solutions for 47 addressing these impacts. The Commission shall specifically study all of the following: 48 (1) The growth of the poultry industry in the State, including the current location, 49 size, and number of dry litter poultry facilities in the State. 50 General Assembly Of North Carolina Session 2025 Page 6 DRH40406-MHa-68 (2) The location, size, and number of dry litter poultry facilities located in the 1 100-year and 500-year floodplains. The Commission shall consider options 2 for removing such facilities from floodplains or requiring management 3 practices to make such facilities more resilient during flooding events. 4 (3) The amount of dry litter poultry waste produced by dry litter poultry facilities, 5 the methods of disposing of the waste, the documentation of how waste is 6 disposed of, and how much of the waste is disposed of on-site by the waste 7 generator and how much is disposed of off-site by a third-party hauler or waste 8 transport and disposal company. 9 (4) For dry litter poultry waste that is land applied off-site, the location of those 10 land application sites, and the number of such sites in the 100-year floodplain 11 and 500-year floodplain. 12 (5) The environmental impacts of dry litter poultry waste, including surface water 13 impacts, groundwater impacts, soil contamination, and atmospheric 14 deposition caused by nutrients such as nitrogen and phosphorus and heavy 15 metals such as arsenic, copper, and zinc. 16 (6) The public health impacts of dry litter poultry waste, including impacts related 17 to odor, drinking water contamination, drug residues, pathogens, and disease 18 vectors and pests. 19 (7) The health impacts of dry litter poultry waste on workers at dry litter poultry 20 facilities and people living in close proximity to dry litter poultry facilities. 21 (8) The cumulative environmental and public health impacts of waste produced 22 by dry litter poultry facilities and animal operations for swine. 23 (9) The current regulation of dry litter poultry facilities and the potential 24 regulation of dry litter poultry facilities to better protect the environment and 25 public health. The Commission shall identify the deficiencies in the regulation 26 of dry litter poultry facilities in the State and consider whether and to what 27 extent the regulation of animal operations for swine and other livestock in the 28 State should be applied to dry litter poultry facilities. 29 (10) The disposal of dead poultry in cases of severe storms or flooding events. 30 (11) The current and potential animal waste management technologies that could 31 reduce or eliminate the environmental and public health impacts of dry litter 32 poultry waste. 33 (12) Suggestions for changes in public records laws needed to allow for greater 34 public transparency about dry litter poultry facilities and more efficient use of 35 limited public regulatory enforcement resources for protection of the State's 36 air and waters. 37 (13) The need for additional resources, including appropriations, professional 38 expertise, and scientific studies, necessary to comprehensively examine the 39 issues set out in this act. 40 SECTION 2.(c) Upon its request, the Commission shall be assisted by all State 41 agencies, including the Department of Agriculture and Consumer Services, the Department of 42 Environmental Quality, the Department of Health and Human Services, the Department of Labor, 43 the North Carolina Poultry Federation, and The University of North Carolina and its constituent 44 institutions. The Commission may request recommendations from any of these entities related to 45 any of the topics set out in this act. 46 SECTION 2.(d) The Commission shall report its findings, including any 47 recommendations, to the 2026 Regular Session of the 2025 General Assembly upon its 48 convening. 49 50 PART III. REPORTING REQUIREMENT 51 General Assembly Of North Carolina Session 2025 DRH40406-MHa-68 Page 7 SECTION 3.(a) G.S. 143-215.10C(f) reads as rewritten: 1 "(f) Any owner or operator of a dry litter poultry facility that is not required to be 2 permitted under 40 Code of Federal Regulations § 122, as amended at 73 Federal Register 70418 3 (November 20, 2008), but that involves 30,000 or more birds shall develop and annually submit 4 to the Department in a digital format an animal waste management plan that complies with the 5 testing and record-keeping requirements under subdivisions (6) through (8) of subsection (e) of 6 this section. Any operator of this type of animal waste management system shall retain records 7 required under this section and by the Department on-site for three years." 8 SECTION 3.(b) The sum of twenty-five thousand dollars ($25,000) in nonrecurring 9 funds for the 2025-2026 fiscal year is appropriated from the General Fund to the Department of 10 Environmental Quality to be allocated to the Division of Water Resources to develop educational 11 resources and provide technical assistance for owners and operators of dry litter poultry facilities 12 in complying with the reporting requirement set out in this act. 13 SECTION 3.(c) Subsection (a) of this section is effective January 1, 2026. 14 Subsection (b) of this section becomes effective July 1, 2025. 15 16 PART IV. INCREASE TRANSPARENCY 17 SECTION 4. G.S. 106-24.1 reads as rewritten: 18 "§ 106-24.1. Confidentiality of information collected and published. 19 All information published by the Department of Agriculture and Consumer Services pursuant 20 to this Part shall be classified so as to prevent the identification of information received from 21 individual farm operators. All information generated by any federal agency received pursuant to 22 this Chapter that is confidential under federal law shall be held confidential by the Department 23 and its employees, unless confidentiality is waived by the federal agency. Complaints of 24 violations of this Chapter or of Part 1A of Article 21 of Chapter 143 of the General Statutes 25 relating to a farm operation and all other records accumulated in conjunction with the 26 investigation of these complaints shall be considered confidential records and may be released 27 only by order of a court of competent jurisdiction. All information collected by the Department 28 from farm owners or animal owners, including, but not limited to, certificates of veterinary 29 inspection, animal medical records, laboratory reports received or generated from samples 30 submitted for analysis, or other records that may be used to identify a person or private business 31 entity subject to regulation by the Department analysis shall not be disclosed without the 32 permission of the owner unless the except in the following situations: 33 (1) The State Veterinarian determines that disclosure is necessary to prevent the 34 spread of an animal disease or to protect the public health, or the disclosure is 35 necessary in the implementation of these animal health programs. 36 (2) The disclosure is necessary to meet statutory requirements imposed on other 37 State agencies. 38 (3) The information is limited to the location, size, and ownership of an individual 39 farm operation." 40 41 PART V. SEVERABILITY AND EFFECTIVE DATE 42 SECTION 5. If any section or provision of this act is declared unconstitutional or 43 invalid by the courts, it does not affect the validity of this act as a whole or any part other than 44 the part so declared to be unconstitutional or invalid. 45 SECTION 6. Except as otherwise provided, this act is effective when it becomes 46 law. 47