Conservation Council of North Carolina

The goal of GREEN BUDGET 2007 is to inform lawmakers on opportunities to improve North Carolina's efforts to protect and conserve our natural resources, increase our sustainability, and improve public health. In particular, GREEN BUDGET 2007 addresses key components of the "Environmental Action Agenda 2007." Environmental Action Agenda 2007 is the product of a collaborative effort by eight North Carolina environmental groups to prioritize three key environmental action issues for the 2007-2008 Session of the General Assembly. The Environmental Action Agenda 2007 includes the following items:

We believe these issues are bi-partisan and have broad, state-wide appeal. In addition to these three issues, our GREEN BUDGET 2007 highlights a number of other environmental issues critical to North Carolina's future. These include: budgetary options for addressing hog lagoon reform; enforcement of environmental laws in NC; restoration of proposed cuts; and proposals for focused revenue enhancement. North Carolina has the opportunity to make sustainable choices that will protect and conserve our natural resources and our communities - the question is, will we take it?

Making sustainable choices will not only lead to the protection of our natural resources, but will be beneficial to North Carolina's economy, both in the short- and long-term. Protecting our environment and natural resources is vital to the ever-growing tourism industry within North Carolina. Tourism has grown to a $14 billion a year industry in North Carolina by attracting 45 million visitors to enjoy pristine mountains, beautiful beaches, and large array of open spaces and wildlife.¹ The principal reason travelers give for visiting our state is our outstanding natural resources.² However, if development continues unchecked, it is estimated that North Carolina will lose a minimum of two-million acres of forests and farmlands in the next twenty years.³ This loss of open space will seriously jeopardize the natural resources that visitors to North Carolina have come to love and enjoy. Failure to protect the quality of our environment will negatively impact the growing tourism industry unless action is taken. Investing in these resources, and the environmental programs designed to protect them, will ensure a sound and growing economy and healthy communities.

Energy independence is a buzz word we hear a lot these days. From security concerns to global warming to the economic costs of high energy prices, energy is on everyone's mind. This year, North Carolina has the opportunity to take several key steps that will increase our energy independence, address global climate change, and save money. Addressing energy concerns is a win-win for both government and tax-payers.

North Carolina currently imports 97% of our energy needs, such as coal and oil, from suppliers located out of the state and country. This drains a staggering $1.6 billon OUT of our state's economy each year. Increasing our energy efficiency and using more homegrown, renewable energy can transform our economy for the better. Keeping this money in North Carolina by supporting local energy sources would increase our economic vitality, create jobs for our workers, and keep more money in the pockets of consumers. In addition, the reduced consumption of traditional energy sources could lead to less pollution and cleaner air. Many respected economists believe that the non-traditional energy sector-, renewable energy sources, such as solar, wind, or biofuels- will be an area of dynamic growth for the U.S. economy in coming decades.

North Carolina can take the simple step right now of reducing the state government's energy use to save taxpayers' money, encourage growth, and create new jobs in North Carolina. Reducing state government energy use will save taxpayers' money and help businesses.

We recommend:

North Carolina's natural resources and open spaces are essential for maintaining the high quality of life that attracts residents, tourists, and businesses to North Carolina. The very things that draw people and investments to our state are in danger of being lost-our open spaces, wildlife habitats, and farmland. The preservation of our mountains, beaches, and parks is contingent on state and private land conservation efforts. The General Assembly should continue its commitment of preserving these valuable resources through funding of the Natural Resource Trust Funds and supporting ongoing research and grant programs.

Over the past 16 years, these funds-the Clean Water Management Trust Fund, the Natural Heritage Trust Fund, the Parks and Recreation Trust Fund, and the Farmland Preservation Trust Fund-have provided critical protection for hundreds of thousands of acres of land and thousands of miles of waterways, protecting our state's waters, ecological diversity, and cultural heritage. These funds are imperative to preserving North Carolina's natural heritage and natural resources.

Additionally we believe the state can go a step further by providing incentives and tax benefits for activities aimed at conserving our natural resources and protecting our environment. Examples of how North Carolina is already providing incentives for environmental stewardship include: tax credits for the purchase or lease of renewable energy systems such as solar hot water heaters; removing tax penalties for landowners who place their land in conservation easements; and "present use tax valuation" of lands in conservation. The General Assembly should continue this trend of rewarding environmentally beneficial behavior.

In response to proposals to place up to 4 mega-landfills in North Carolina that could receive garbage from up and down the eastern seaboard, the state legislature passed a 12 month moratorium in 2006 on the siting of new landfills in North Carolina. The idea behind the moratorium was to allow the state time to craft new regulations to govern landfill operations in our state.

The state worked diligently and new recommendations were recently introduced by the Division of Waste Management. The "Solid Waste Management Act of 2007" (SB1492/HB1233) will put these recommendations into effect and we encourage you to support this legislation. Passage will give the state additional tools to manage solid waste as our state grows.

Specifically, we recommend:

North Carolina has numerous environmental regulations that require the protection of our state's vital natural resources. However, these laws are not always adequately enforced. Habitual under-funding of the Department of Environmental and Natural Resource's (DENR) enforcement efforts has undermined our state's ability to safeguard the environment. DENR is critically short of inspectors and other staff needed to monitor and inspect environmental violators and polluters.

Sedimentation and erosion are the primary pollution sources impacting North Carolina waters; however the Division of Land Resources' Erosion and Sedimentation Program currently has only 32 available FTE (full time equivalent) positions responsible for inspecting over 9,100 sites. Additionally, staffing problems such as high rates of turnover and loss of positions significantly limit the program's effectiveness. DENR is less able to respond to permit applications, take enforcement action, inspect and monitor permitted facilities, and respond to priority issues, thus limiting DENR's ability to perform its mission. The result is an ongoing decline in DENR's capacity to protect public health and ensure resources vital to our economy. To begin addressing this shortfall, the Governor's budget calls for adding 7 sedimentation inspector positions to the Division of Land Resources.

"Green Fees" are fees that reflect the true costs of the state's services by incorporating environmental costs that are usually borne indirectly by taxpayers. Many green fees that reflect the full cost of environmentally harmful activities have already been adopted in North Carolina. These include an advance recycling fee on all large appliances that is collected from the consumer at the time of purchase. The fee is then distributed to counties to fund recycling programs that keep these appliances out of landfills. Another program provides for a sales tax on dry cleaning services that is then used to clean up environmental contamination caused by toxic dry cleaning solvents.

We ask the General Assembly to expand the use of green fees to mitigate the damages caused by goods and services that have negative environmental or health impacts. Creative and successful examples of these fees can be found across the United States. A statewide "tipping fee" at all public and private solid waste facilities, like those levied in over a dozen states, will generate substantial revenue that can be used to clean up abandoned landfills and for certain recycling programs.

By imposing green fees on certain services that are deemed environmentally harmful, the state can reduce pollution and waste while simultaneously generating revenue to fund the permitting programs. Increased revenues from targeted green fees will allow state agencies to better staff and administer programs and decrease their reliance on state appropriations.

In North Carolina, many local governments impose erosion and sedimentation control fees on developers that are significantly higher than the state fee of $50 per acre. For example, Asheville's stormwater and erosion control agency charges $540 per acre being disturbed. A portion of the fee is allocated to cover the actual cost of an inspector's time for plan review, investigation of complaints, and issuing Notices of Violation.⁴

Funds that are raised from the state sedimentation and erosion control fee go into a special fund that is used for plan review, travel expenses for inspection visits, and enforcement. Previous proposals to increase the state fee from $50 per acre to $100 per acre have invariably failed in the face of fierce opposition from development interests.

An electronics recycling program is another arena where green fees could be implemented. Electronics recycling is a critical strategy to prevent toxic heavy metals from entering the waste stream and polluting our water, recover valuable materials, and create jobs in the recycling industry. By imposing advance recovery fees on the sale of electronics, local governments could recover the costs of establishing such programs and the state could retain the necessary resources to administer the program.

The hog industry plays a significant economic role in our state. The environmental impact is also significant - so significant that the legislature passed a moratorium on new hog farms ten years ago. Despite this moratorium, the number of hogs in North Carolina has grown by an estimated 500,000 additional hogs. While this increase was allowed under the terms of the moratorium, it does not negate the negative impacts on water quality, nor the degraded quality of life in many of our rural communities over the past decade.

For the residents who live next to or near these large hog farms, the negative impacts of odor and groundwater contamination continue unabated. Ten years after the moratorium, hog waste is still stored in lagoons and sprayed onto spray fields, often resulting in direct contamination of surface and ground water. To address these concerns, new legislation has been introduced that acknowledges the important economic role of the N.C. hog industry, gives a strong push for cleaner waste management systems, and helps citizens gain access to clean drinking water. The "Swine Farm Environmental Performance Standards/Funds" (HB 1115) has a strong, bi-partisan group of sponsors and co-sponsors.

The recommendations in GREEN BUDGET 2007 are only a step in moving North Carolina towards a future that recognizes the benefits of our natural resources and the costs to us all if they are lost. North Carolina's natural resources are a critical component of both our heritage and our economy. As such, it is in the state's best interest to act as a responsible steward of the environment. The decisions made by the General Assembly this year will have long-lasting impacts on our future. The decision to protect our State and its citizens should be clear.

¹ NC Department of Commerce, Tourism Division, www.nccommerce.com/tourism/
² One NC Naturally, http://www.onencnaturally.org/pages/impactfacts.html
³ Environment North Carolina, Research and Policy Center, "Losing our Natural Heritage: Development and Open Space Loss in North Carolina," April 2007, http://www.environmentnorthcarolina.org/uploads/y2/Im/y2ImsX7sICsJeIFfcjicvw/Losing_Our_Natural_Heritage.pdf
⁴ NC DENR/Division of Land Resources/Land Quality Section, "Local Erosion and Sedimentation Control Ordinances, Fees Listing of 12/2003," http://www.dlr.enr.state.nc.us/images/localprogramfeeslist.pdf


	Renewable Energy, Energy Efficiency and Climate Change	Land for Tomorrow: Investing in Conservation Programs	Landfill Reform
	Allocate Resources for Enforcement	Expand the Use of Green Fees	Hogs
The goal of GREEN BUDGET 2007 is to inform lawmakers on opportunities to improve North Carolina's efforts to protect and conserve our natural resources, increase our sustainability, and improve public health. In particular, GREEN BUDGET 2007 addresses key components of the "Environmental Action Agenda 2007." Environmental Action Agenda 2007 is the product of a collaborative effort by eight North Carolina environmental groups to prioritize three key environmental action issues for the 2007-2008 Session of the General Assembly. The Environmental Action Agenda 2007 includes the following items: Renewable Energy Land for Tomorrow Solid Waste Reform We believe these issues are bi-partisan and have broad, state-wide appeal. In addition to these three issues, our GREEN BUDGET 2007 highlights a number of other environmental issues critical to North Carolina's future. These include: budgetary options for addressing hog lagoon reform; enforcement of environmental laws in NC; restoration of proposed cuts; and proposals for focused revenue enhancement. North Carolina has the opportunity to make sustainable choices that will protect and conserve our natural resources and our communities - the question is, will we take it? Making sustainable choices will not only lead to the protection of our natural resources, but will be beneficial to North Carolina's economy, both in the short- and long-term. Protecting our environment and natural resources is vital to the ever-growing tourism industry within North Carolina. Tourism has grown to a $14 billion a year industry in North Carolina by attracting 45 million visitors to enjoy pristine mountains, beautiful beaches, and large array of open spaces and wildlife.¹ The principal reason travelers give for visiting our state is our outstanding natural resources.² However, if development continues unchecked, it is estimated that North Carolina will lose a minimum of two-million acres of forests and farmlands in the next twenty years.³ This loss of open space will seriously jeopardize the natural resources that visitors to North Carolina have come to love and enjoy. Failure to protect the quality of our environment will negatively impact the growing tourism industry unless action is taken. Investing in these resources, and the environmental programs designed to protect them, will ensure a sound and growing economy and healthy communities. Renewable Energy, Energy Efficiency and Climate Change Energy independence is a buzz word we hear a lot these days. From security concerns to global warming to the economic costs of high energy prices, energy is on everyone's mind. This year, North Carolina has the opportunity to take several key steps that will increase our energy independence, address global climate change, and save money. Addressing energy concerns is a win-win for both government and tax-payers. North Carolina currently imports 97% of our energy needs, such as coal and oil, from suppliers located out of the state and country. This drains a staggering $1.6 billon OUT of our state's economy each year. Increasing our energy efficiency and using more homegrown, renewable energy can transform our economy for the better. Keeping this money in North Carolina by supporting local energy sources would increase our economic vitality, create jobs for our workers, and keep more money in the pockets of consumers. In addition, the reduced consumption of traditional energy sources could lead to less pollution and cleaner air. Many respected economists believe that the non-traditional energy sector-, renewable energy sources, such as solar, wind, or biofuels- will be an area of dynamic growth for the U.S. economy in coming decades. North Carolina can take the simple step right now of reducing the state government's energy use to save taxpayers' money, encourage growth, and create new jobs in North Carolina. Reducing state government energy use will save taxpayers' money and help businesses. We recommend: Increasing energy efficiency in state buildings; Lowering state fleet oil dependence and providing incentives for alternative fuel vehicles to reduce the demand for petroleum-based fuel; Reducing state government's use of energy; Fully funding the State Energy Office; Supporting renewable energy and appropriate biofuels as an integral part of economic development. Land for Tomorrow: Investing in Conservation Programs North Carolina's natural resources and open spaces are essential for maintaining the high quality of life that attracts residents, tourists, and businesses to North Carolina. The very things that draw people and investments to our state are in danger of being lost-our open spaces, wildlife habitats, and farmland. The preservation of our mountains, beaches, and parks is contingent on state and private land conservation efforts. The General Assembly should continue its commitment of preserving these valuable resources through funding of the Natural Resource Trust Funds and supporting ongoing research and grant programs. Over the past 16 years, these funds-the Clean Water Management Trust Fund, the Natural Heritage Trust Fund, the Parks and Recreation Trust Fund, and the Farmland Preservation Trust Fund-have provided critical protection for hundreds of thousands of acres of land and thousands of miles of waterways, protecting our state's waters, ecological diversity, and cultural heritage. These funds are imperative to preserving North Carolina's natural heritage and natural resources. We recommend: Full funding for the Clean Water Management Trust Fund at $100 million; Funding the Farmland Preservation Trust Fund at $10 million; No cuts to the Parks and Recreation Trust Fund; A $1 billion bond package for the Land for Tomorrow campaign for the purchase of conservation lands in North Carolina; Additionally we believe the state can go a step further by providing incentives and tax benefits for activities aimed at conserving our natural resources and protecting our environment. Examples of how North Carolina is already providing incentives for environmental stewardship include: tax credits for the purchase or lease of renewable energy systems such as solar hot water heaters; removing tax penalties for landowners who place their land in conservation easements; and "present use tax valuation" of lands in conservation. The General Assembly should continue this trend of rewarding environmentally beneficial behavior. A number of such incentives are being considered in the General Assembly and the Green Budget encourages their passage: Expand the Present Use Valuation program for lands managed for wildlife benefits (SB 1203); Tax credits for building or improvement of energy efficient homes (SB 505); Expanding tax credits for land donated for conservation purposes (HB 463). Landfill Reform In response to proposals to place up to 4 mega-landfills in North Carolina that could receive garbage from up and down the eastern seaboard, the state legislature passed a 12 month moratorium in 2006 on the siting of new landfills in North Carolina. The idea behind the moratorium was to allow the state time to craft new regulations to govern landfill operations in our state. The state worked diligently and new recommendations were recently introduced by the Division of Waste Management. The "Solid Waste Management Act of 2007" (SB1492/HB1233) will put these recommendations into effect and we encourage you to support this legislation. Passage will give the state additional tools to manage solid waste as our state grows. Specifically, we recommend: Adopting a state-wide tipping fee for solid waste of $2 per ton in order to fund the clean up of old and abandoned landfills. Allocate Resources for Enforcement North Carolina has numerous environmental regulations that require the protection of our state's vital natural resources. However, these laws are not always adequately enforced. Habitual under-funding of the Department of Environmental and Natural Resource's (DENR) enforcement efforts has undermined our state's ability to safeguard the environment. DENR is critically short of inspectors and other staff needed to monitor and inspect environmental violators and polluters. Sedimentation and erosion are the primary pollution sources impacting North Carolina waters; however the Division of Land Resources' Erosion and Sedimentation Program currently has only 32 available FTE (full time equivalent) positions responsible for inspecting over 9,100 sites. Additionally, staffing problems such as high rates of turnover and loss of positions significantly limit the program's effectiveness. DENR is less able to respond to permit applications, take enforcement action, inspect and monitor permitted facilities, and respond to priority issues, thus limiting DENR's ability to perform its mission. The result is an ongoing decline in DENR's capacity to protect public health and ensure resources vital to our economy. To begin addressing this shortfall, the Governor's budget calls for adding 7 sedimentation inspector positions to the Division of Land Resources. We support: Funding additional enforcement positions at DENR, particularly 7 inspectors in the Division of Land Resources; Allocating resources to ensure that DENR can attract and retain qualified staff; Increasing fines for air quality violations as provided for in HB 1646/SB 1467, "Increase Penalties for Air Pollution." Expand the Use of Green Fees "Green Fees" are fees that reflect the true costs of the state's services by incorporating environmental costs that are usually borne indirectly by taxpayers. Many green fees that reflect the full cost of environmentally harmful activities have already been adopted in North Carolina. These include an advance recycling fee on all large appliances that is collected from the consumer at the time of purchase. The fee is then distributed to counties to fund recycling programs that keep these appliances out of landfills. Another program provides for a sales tax on dry cleaning services that is then used to clean up environmental contamination caused by toxic dry cleaning solvents. We ask the General Assembly to expand the use of green fees to mitigate the damages caused by goods and services that have negative environmental or health impacts. Creative and successful examples of these fees can be found across the United States. A statewide "tipping fee" at all public and private solid waste facilities, like those levied in over a dozen states, will generate substantial revenue that can be used to clean up abandoned landfills and for certain recycling programs. By imposing green fees on certain services that are deemed environmentally harmful, the state can reduce pollution and waste while simultaneously generating revenue to fund the permitting programs. Increased revenues from targeted green fees will allow state agencies to better staff and administer programs and decrease their reliance on state appropriations. In North Carolina, many local governments impose erosion and sedimentation control fees on developers that are significantly higher than the state fee of $50 per acre. For example, Asheville's stormwater and erosion control agency charges $540 per acre being disturbed. A portion of the fee is allocated to cover the actual cost of an inspector's time for plan review, investigation of complaints, and issuing Notices of Violation.⁴ Funds that are raised from the state sedimentation and erosion control fee go into a special fund that is used for plan review, travel expenses for inspection visits, and enforcement. Previous proposals to increase the state fee from $50 per acre to $100 per acre have invariably failed in the face of fierce opposition from development interests. An electronics recycling program is another arena where green fees could be implemented. Electronics recycling is a critical strategy to prevent toxic heavy metals from entering the waste stream and polluting our water, recover valuable materials, and create jobs in the recycling industry. By imposing advance recovery fees on the sale of electronics, local governments could recover the costs of establishing such programs and the state could retain the necessary resources to administer the program. We support: Increasing the state's sedimentation and erosion control fee from $50 per acre to a minimum of $65 per acre; Establishing an electronic waste recycling program. Hogs The hog industry plays a significant economic role in our state. The environmental impact is also significant - so significant that the legislature passed a moratorium on new hog farms ten years ago. Despite this moratorium, the number of hogs in North Carolina has grown by an estimated 500,000 additional hogs. While this increase was allowed under the terms of the moratorium, it does not negate the negative impacts on water quality, nor the degraded quality of life in many of our rural communities over the past decade. For the residents who live next to or near these large hog farms, the negative impacts of odor and groundwater contamination continue unabated. Ten years after the moratorium, hog waste is still stored in lagoons and sprayed onto spray fields, often resulting in direct contamination of surface and ground water. To address these concerns, new legislation has been introduced that acknowledges the important economic role of the N.C. hog industry, gives a strong push for cleaner waste management systems, and helps citizens gain access to clean drinking water. The "Swine Farm Environmental Performance Standards/Funds" (HB 1115) has a strong, bi-partisan group of sponsors and co-sponsors. We recommend: Creating a cost-share program of $50 million that will pay farmers up to 90% of the cost of adopting cleaner waste management systems; Providing assistance to low-income people whose drinking water supplies may be contaminated, regardless of the cause; Setting aside $10 million for the testing of drinking water wells and financial assistance for cleaning up or replacing drinking water supplies. Conclusion The recommendations in GREEN BUDGET 2007 are only a step in moving North Carolina towards a future that recognizes the benefits of our natural resources and the costs to us all if they are lost. North Carolina's natural resources are a critical component of both our heritage and our economy. As such, it is in the state's best interest to act as a responsible steward of the environment. The decisions made by the General Assembly this year will have long-lasting impacts on our future. The decision to protect our State and its citizens should be clear. Footnotes ¹ NC Department of Commerce, Tourism Division, www.nccommerce.com/tourism/ ² One NC Naturally, http://www.onencnaturally.org/pages/impactfacts.html ³ Environment North Carolina, Research and Policy Center, "Losing our Natural Heritage: Development and Open Space Loss in North Carolina," April 2007, http://www.environmentnorthcarolina.org/uploads/y2/Im/y2ImsX7sICsJeIFfcjicvw/Losing_Our_Natural_Heritage.pdf ⁴ NC DENR/Division of Land Resources/Land Quality Section, "Local Erosion and Sedimentation Control Ordinances, Fees Listing of 12/2003," http://www.dlr.enr.state.nc.us/images/localprogramfeeslist.pdf

		The Conservation Council of North Carolina fights to preserve North Carolina's natural resources by advocating for positive changes in environmental policy, mobilizing voters, holding legislators accountable for their environmental decisions, and helping to elect candidates to public office who will work to protect the environment.

112 South Blount Street Raleigh, North Carolina 27601 919.839.0006 info@conservationcouncilnc.org

Renewable Energy, Energy Efficiency and Climate Change

Land for Tomorrow: Investing in Conservation Programs

Landfill Reform

Allocate Resources for Enforcement

Expand the Use of Green Fees

Hogs

Conclusion

Footnotes