Bill Summary for S 533 (2017-2018)

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Summary date: 

Mar 30 2017

Bill Information:

View NCGA Bill Details2017-2018 Session
Senate Bill 533 (Public) Filed Thursday, March 30, 2017
AN ACT TO ESTABLISH THE DIVISION OF MITIGATION SERVICES IN THE DEPARTMENT OF TRANSPORTATION AND REQUIRE THE DEPARTMENT OF ADMINISTRATION TO INVENTORY EXISTING MITIGATION CREDITS HELD BY THE STATE AND DEVELOP A PLAN FOR DISPOSING OF UNNEEDED MITIGATION CREDITS.
Intro. by Rabon.

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Bill summary

Eliminates the Division of Mitigation Services in the Department of Environmental Quality (DEQ), and all positions within that division. Vests all functions, powers, duties, obligations, and services vested in the Division of Mitigation Services in DEQ prior to its elimination under this act in the Division of Mitigation Service in the Department of Transportation (DOT), as established below. Mandates the elimination to occur no later than August 1, 2017.

Eliminates the Indirect and Cumulative Impacts/On-Site Mitigation Group in DOT, and all positions within that group. Mandates the elimination to occur no later than August 1, 2017.

Enacts new Article 21, establishing the Division of Mitigation Services (Division) within DOT. Directs DOT to develop the Division as a nonregulatory statewide mitigation services program for the acquisition, maintenance, restoration, enhancement, and creation of wetland and riparian resources that contribute to the protection and improvement of water quality, flood prevention, fisheries, wildlife habitat, and recreational opportunities. Establishes the components of the Division to consist of: (1) restoration and perpetual maintenance of wetlands; (2) development of restoration plans; (3) landowner contact and land acquisition; (4) evaluation of site plans and engineering studies; (5) oversight of construction and monitoring of restoration sites; (6) land ownership and management; (7) mapping, site identification, and assessment of wetlands functions; and (8) oversight of private wetland mitigation banks to facilitate the components of the Division.

Details six purposes of the Division, including fostering a comprehensive approach to environmental protection. 

Directs DOT to develop basinwide plans for wetlands and riparian area restoration with the goal of protecting and enhancing water quality, flood prevention, fisheries, wildlife habitat, and recreational opportunities within each of the 17 major river basing in the State. Further directs DOT to develop and implement a basinwide restoration plan for each of the 17 river basins in the State in accordance with the basinwide schedule currently established by the Division of Water Resources in DEQ.

Requires DOT to coordinate all compensatory mitigation required by permits or authorizations issued by DOT or by the US Army Corps of Engineers consistent with the basinwide restoration plans and rules developed by the Environmental Management Commission. Requires all compensatory mitigation to be consistent with the basinwide restoration plans, whether performed by DOT or by permit applicants. Requires all compensatory mitigation to be consistent with rules adopted by the Commission for wetland and stream mitigation and for protection and maintenance of riparian buffers. Defines compensatory mitigation as the restoration, creation, enhancement, or preservation of jurisdictional waters required as a condition of a permit issued by DOT or by the US Army Corps of Engineers. 

Directs that the emphasis of compensatory mitigation is to be on replacing functions within the same river basin unless it is demonstrated that restoration of other areas would be more beneficial to the overall purposes of the Division. 

Details actions that a government entity can take to satisfy compensatory mitigation requirements, including payment of a fee, so long as those actions are consistent with the basinwide restoration plans and meet or exceed the requirements of the DOT or the US Army Corps of Engineers. 

Details actions that an applicant other than a government entity can take, including donating land, to satisfy compensatory mitigation requirements so long as those actions meet or exceed the requirements of the US Army Corps of Engineers. 

Directs the Environmental Management Commission to establish a standardized schedule of compensatory mitigation payment amounts. Provides that payments are to be made by applicants to the Ecosystem Restoration Fund established in GS 136-281, enacted below. Further details factors for determining compensatory mitigation payments.

Directs State agencies and mitigation banks to demonstrate that adequate, dedicated financial surety exists to provide for the perpetual land management and hydrological maintenance of lands acquired by the State as mitigation banks, or proposed to the State as privately operated and permitted mitigation banks. Defines compensatory mitigation bank as a private compensatory mitigation bank or an existing local compensatory mitigation bank. Defines private compensatory mitigation bank as a site created by a private compensatory mitigation provider and approved for mitigation credit by State and federal regulatory authorities through execution of a mitigation banking instrument, but does not include a site owned by a government entity or unit of local government. Defines existing local compensatory bank as a mitigation bank operated by a unit of local government that is a party to a mitigation banking instrument executed on or before July 1, 2011, notwithstanding subsequent amendments to such instrument executed after July 1, 2011.

Requires a State agency acquiring land to restore, enhance, preserve, or create wetland to also pay a sum in lieu of ad valorem taxes lost by the county in accordance with GS 146-22.3.

Provides that an existing local compensatory mitigation bank must comply with the requirements of Article 12 of GS Chapter 160A applicable to the disposal of property whenever it transfers any mitigation credits to another person. 

Directs the Division to exercise its authority to provide for compensatory mitigation under the authority granted by this statute to use mitigation procurement programs in the following order of preference and as further detailed: (1) full delivery/bank credit purchase program, (2) existing local compensatory mitigation bank credit purchase program, (3) design/build program, and (4) design-bid-build program. Sets forth that the regulatory requirements for the establishment, operation, and monitoring of a compensatory mitigation bank or full delivery project vest at the time of the execution of the mitigation banking instrument or the award of a full delivery contract. 

Establishes the Ecosystem Restoration Fund (Fund) as a nonreverting fund within DOT. Provides that the Fund is to be treated as a special trust fund and credited with interest by the State Treasurer pursuant to GS 147-69.2 and GS 147-69.3. Directs that the Fund is to provide a repository for monetary contributions and donations or dedications of interest in real property to promote projects for the restoration, enhancement, preservation, or creation of wetlands and riparian areas and for payment made in lieu of compensatory mitigation. Prohibits any funds from the Fund from being expended for any purpose other than those directly contributing to the acquisition, perpetual maintenance, enhancement, restoration, or creation of wetlands and riparian areas in accordance with the basinwide plan as described in GS 136-179, as enacted. Sets out that the cost of acquisition includes a payment in lieu of ad valorem taxes required under GS 146-22.3 when DOT is the State agency making the acquisition.

Authorizes DOT to distribute funds from the Fund directly to a federal or State agency, a local government, or a private nonprofit conservation organization to acquire, manage, and maintain real property or an interest in real property for the purposes set out above. Requires a recipient of these funds to grant a conservation easement in the real property or interest in real property acquired with the funds to DOT in a form acceptable to DOT. Authorizes DOT to convey real property or an interest in real property that has been acquired under the Division to a federal or State agency, a local government, or a private nonprofit conservation organization to acquire, manage, and maintain real property or an interest in real property under this provision. Requires a grantee of real property or an interest in real property under this provision to grant a conservation easement in the real property or interest in real property to DOT in a form that is acceptable to DOT. 

Sets forth that a person subject to a permit or authorization issued by the US Army Corps of Engineers under 33 USC 1344 can contribute to the Division in order to comply with conditions or terms of the permit or authorization if participation in the Division will meet the mitigation requirements of the US Army Corps. Directs DOT at the discretion of the applicant to accept payment into the Fund in lieu of other compensatory mitigation requirements of any authorizations issued by the US Army Corps under 33 USC 1344 if the contributions will meet the mitigation requirements of the US Army Corps. Sets forth that payment can be made in the form of (1) monetary contributions according to a fee schedule established by the Environmental Management Commission or (2) in the form of donations of real property provided that the property is approved by DOT as a suitable site consistent with the basinwide wetlands restoration plan.

Requires DOT to provide an itemized statement that accounts for each payment into the Fund, including the expenses and activities financed by the payment. 

Directs DOT to annually report by November 1 of each year to the Environmental Review Commission and the Joint Legislative Commission on Governmental Operations regarding the progress and implementation of the Division and its uses of the Fund. Details the requirements of the report. Requires a copy of the report to be sent to the Fiscal Research Division. 

Directs DOT to maintain an inventory of all property that is held, managed, maintained, enhanced, restored, or used to create wetlands under the Division. Further requires the inventory to list all conservation easements held by DOT. Directs the inventory to be included in DOT's annual report.

Closes the Ecosystem Restoration Fund within DEQ and directs the remaining balance to be transferred to the Fund within DOT.

Repeals GS 143-214.8 through GS 143-214.13, concerning the Division of Mitigation Services.

Provides that all of the above provisions are effective August 1, 2017.

Directs DEQ and DOT to take all necessary steps under federal law to implement the provisions of this act.

Directs DOT to inventory all existing mitigation credits held by the State. Directs DOT to develop a plan for the disposal of mitigation credits determined by DOT to be unneeded. Directs DOT to report the inventory and the plan required by this provision to the Joint Legislative Oversight Committee no later than December 1, 2017.

Permits DOT to adopt temporary rules to implement the provisions of this act, which will remain in effect until permanent rules that replace the temporary rules become effective.