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House | June 28, 2016 | Chamber | House Agriculture

Full MP3 Audio File

[BLANK_AUDIO] [SOUND] Members of the committee and guests in the audience we'd like to call the House Committee on Agriculture to order. We would like to recognize the presence of our sergeant at arms, Warren Hopkins, Doug Harris, Myla Kyle Mcculloch Jr. and Joseph Crook. Also this morning we're pleased to have some wonderful young people with us to serve as our pages, Aliena Baptista, Addison Butler, Erring Voe and Sarah Watson. Thank you so much for being here and welcome to the House Committee on Agriculture and we hope that you have an enjoyable experience here in the General Assembly today. We hope that you'll go back and tell your colleagues in school about your experiences and encourage them to come up here and we would also like for you to investigate the opportunity for careers in agriculture. The're enormous opportunities in the field of agriculture and agribusiness. It is our leading economic driver in North Carolina. 84 Billion Dollars. And so the're great opportunities in agriculture. And we would encourage you to investigate those opportunities as you forward with your plans for your education. [BLANK_AUDIO] Representative Cleveland knows that the The PCS for this bill be before the committee. All in favor >. Aye. >> Any opposed. Ayes have it. Senator Jackson welcome back to the house committee on agriculture and please accept our thanks and appreciation for the efforts that you extend in the field of Agriculture and agribusiness. And we welcome you here this morning to continue the process of taking care of this bill. Senator Jackson has requested that we cover two items pertaining to, and I think one of them is now not in the PCS but it was original section 12 and section 14. Senator Jackson you're recognized to proceed as you see fit on your discussion of the bill. >> Thank you Mr. Chairman and thank you members for round two of the [INAUDIBLE] act here for the house ag. As representative chairman Dixon just mentioned on the PCS alleviated section 12 I believe it was the capacity use area, from the PCS that is before you but I have a statement Mr. chairman I'd like to read- >> You're recognized. >> [CROSSTALK] this particular issue. It is my understanding there was originally gonna be an amendment to remove this, but it is already taken care of in the PCS. While I agree we can do this I'd like for it to be known that based upon the data that was produced in 2014 Ag the capacity you said it has only used 7.61% of the water used there. As compared to municipalities that used 36.43%. Mine and Dee/g water and across the state uses 30.89% And in industry across the state uses 25.8%, whereas ag across the whole state only uses 7.61%. And in this particular capacity, use area when it was originally done, Ag was calculated to use only 10%. So it is in my opinion the unique demands of agriculture industry won't be exempting them from the capacity use area withdraw regulations, and having a dependable source of water is crucial to any farm in operation to make it successful or not. So it is my intention this is not the last you will here of this section should ordain and a good deem that I say here next year. So, I just wanna make aware that we do need to continue looking at this, and we need to make sure that our parties are looked at appropriately. The other item that was changed, we cleaned up >> Senator Jackson >> Yes sir >>Representative Pittman. I just wanted to get on the list for later. >> Okay.

Senator Jackson you may continue. >> Thank you Mr. Chairman. We cleaned up a little bit of language on section 14 which exempts [INAUDIBLE] from the Sedimentation Control Act and basically what we've done is we've alleviated and I might have my sections wrong cuz I'm looking at the old print bare with me please [BLANK_AUDIO] actually 7 section 13. What we've basically done is we took out the reference to the general statute in a bonafide form which I believe this cleans this provision up to make it what we intend it to be. And Mr. Chairman I'll be glad to go over any of the other provisions of this bill at this point in time and will entertain questions. >> Thank you Senator Jackson. Representative pittman. >> Thank you Mr. Chairman. Just three things right quick One thing Senator Jackson I agree with you on section 12 and I'll be glad to work with you anyway to try to put that back in. On the extension in section 10 standing in sunset I'm opposed to that and I was going round an amendment this morning for that but I understand it's gonna be done at finance so I'll just wait for them to do it. And the other thing is I wanna ask you about the C/g on like corn for deer it's gonna affect hunters and that sort of things as well as form operations for deer and that sort of thing and I was I wondering if you'd explain why we're doing that. I think that's something to do with study and [UNKNOWN] or something like that. >> Senator Jackson. >> Thank you Mr. Chairman. Representative Pittman as I understand that this has been requested that we add it to all feed to sorta mirror the Horse Council and the way they're doing it, from what I understand About most deer farmers buy 4-5 bags a year at 10 cents a bag so you're talking about 40-50 cents per year to the deer hunters but at the same token as I understand the intentions of this is for it to go to the foundation for it to be used for research which I'm sure chronic waste and disease will be part of that research Mr Sonda has an additional explanation for Representative Pitttman. >> Thank you Mr. Chairman. What senator Jackson is correct, it gets to World Research, and again the money is refundable if an individual request's to have their funds returned. But the bill language says, the association should ease response to promote the interest of the firm serving industry, and make these firms in the ministry, at the expense that are reasonably necessary to carry out this function. And from what I understand, the majority that will be used for chronic wasting disease research. Research. Chairman and also to have- I agree with Doc, crises where we know, this is sort of totally volunteer >> Representative McGrady, we have members in here that are multiple committees, would it be okay with you if I recognize Representative Brad? To send forth send forth an amendment. >> Representative Brad you're recognized send forth an amendment. >>Thank you Mr Chairman. Is the amendment passed out? >> I don't wanna have top the other [BLANK_AUDIO] Representative Bradford while this amendment's been passed out it's a relatively simple amendment so you're recognised to explain the amendment, we will not deal with it until all members have got it but we'll get the explanation. >> Okay, very good. Thank you Mr. chairman. This particular amendment It's pretty simple, this is in regards to section 13b10 and it's regarding replacement of water heaters, I've already talked to senator Jackson about it at our last meeting. Essentially what I'm doing is this amendment will remove the word capacity because hot water heaters as they have become more energy efficient some of the capacity is actually increased even though the hot water tanks have actually gotten a little smaller if you will because the insulation's not as thick, so this will allow us to still do everything we wanna do but it takes those folks that have older size 38 gallon hot water heaters and can actually increase them to 40 gallons without having to pull a permit. So it's a very minor thing but most certainly something that's supported by everyone that I've talked to. Thank you. >> Senator Jackson. >> Thank you Mr. Chairman and representative Bradford thank you for the amendment, I think it's a good amendment, I think it'll add a lot to this bill for this particular section so I certainly support it So thank you. >> Representative Cleveland. >> Mr.

Chairman in reading the amendment and I'm reading the bill, I believe we should also delete the word or. >> Staff? >> Representative Cleveland did you say the word or? >> If I may. >> Yes sir. >> The sentence reads that do not change size or capacity, we're gonna wind up with do not change size or. >> Mr. Chairman to staff. >> The amendment is on page 11 line 5 where it says no change in fuel energy source location capacity or routing or sizing. So it would just read there's no change in fuel energy source location or routing or sizing eventing and piping [BLANK_AUDIO] Thank you, I'm in the wrong part of the bill. >> Members does any member need additional time before we put the motion on the amendment before us? Representative Bradford moves adoption of the amendment. All in favor say yes. >> Yes. >> Yes. >> All opposed. The ayes have it, the amendment passes. Thank you representative Bradford. Representative Mcgrady. >> I just want to thank the bill sponsor for the change that got made in the bill. I will continue to work with you in the capacity you issue but I'm glad the bill will be moving forward and I think the changes to section 14 make the section clear and I appreciate your willingness to work with us. >> Mr. Chairman. >> Representative Mcgrady thank you and I look forward to our conversations as we move forward. >> Do my co-chairs have any questions or comments? Any other questions or comments from the committee? Representative Ridel/g. [BLANK_AUDIO] >> Thank you Mr. Chairman. Thank you Senator Jackson for being here with us again. This question may be for staff but I'll direct to you. The training that we're requiring for elected soil on water district supervisors, can you give me a little background on that and how does it compare to other requirements or non-requirements for people on planning boards or zoning boards or other maybe similar kind of positions. >> Senator Jackson. >> Thank you, Mr. Chairman. Representative Waddell, there's part of that I can answer. This was a request from the Department of Ag as well as Soil and Water because they were having elected officials that really were not trained in what they were being elected to do. This is training For them to understand how soil and water operate and to get more familiar with it, I take it as more of a indoctrination of what they've been elected to do. Now as far as how it relates to other boards I will have to refer to staff on that cuz I do not know. >> Staff. >> Thank you Mr Chairman. Basically what this does is makes sure that elected and appointed supervisors. have the same training on soil, water and natural resources conservation and their duties and responsibilities as District Supervisors, and I believe that there might be representatives from the department here who can speak to that That more if more detail is needed. >> Representative Randel, do you need additional information? >> Yes. But I can speak with, [INAUDIBLE] many mistakes afterwards but follow up question. >> Follow up >> Now I see that it says the training may be re given at UNC School of Government. Is it possible this could be something that we You know we could arrange to have people do online. Also a necessity for them to actually be some place physically to do- >> Senator Jackson >> Mr. Chairman and Representative, it was my understanding they could it at school of government. All Hilven suggested and I thought it was in this language and now have to re look and see that they do it at their annual meeting so there will not be additional travelling involved. which would be basically be same part is trying to do it online. >> Comment >> Comment >> But real quick, it looks like what you're referring to as paragraph C or other qualified sources as appear by the soil and water commission. So I can assume and tell my people that they can probably get this training after the annual convention >> That That was my intention. On this was a like give it at their annual meeting so you wanna have to like two trips >> Okay. Mr Chairman, can we have that confirmed by maybe the department of agriculture. >> Wale Joy Hick is recognized for an explanation to representative Randel's inquiry. >> Mr. Chairman I Representative Riddell, Joy Hicks with the Department of Agriculture. Yes we plan to provide training at the annual conference.

What this provision does is currently there's five supervisors for the 95th district. Three are appointed, two are elected. Current statutes require that the appointed members or supervisors are trained but the elected Officials was voluntary and so what they were experiencing was the elected officials weren't coming in with the same level of knowledge and ready to work as the appointed officials who had had the required training. And so this would just make it uniform and it will be provided optional at annual conferences or at the school of government. Thank you, Mr. Leeks. Representative Riddell, any additional follow up? Any other questions from members of the committee. Members of the committee, as you know there's a serial referral for this bill to Finance. Some of our members are on Finance some are not. For the benefit of the members on the House Act Committee, we have two speakers from the audience who are going to speak to the Section 10 issue. If you two gentlemen would come forward, state your name, you have on your desk a hand out that has been prepared by those folks from Sampson County as well as from the KIMTEK corporation to which this section 10 applies only to that. State your name, sir and you have two minutes. Push your button. >> My name is John Swope. I'm the director of the Sampson County Economic Development Commission and I certainly appreciate two minutes to bring to you some thoughts on [UNKNOWN] project. My points are gonna be very simple, two points. One, first and foremost this is an economic development project and second, this project is ready to go. A lot of work has been done in the past in Sampson County in the state of North Carolina in working with With our partners in Washington DC along with of course our company representatives and it is in a position now that it has infrastructure funding as the handout that we've provided shows you. It has local incentives that has been approved, the site is ready to go, preliminary engineering is done on the rail, all the utilities, as a matter of fact, NCDOT has done Part of the improvements to the highway in front of the sight, they hadn't completed only because they wanna wait to start paving to a point when the construction on the side is completed so they don't damage to construction vehicles, don't damage to vehicles going on and off the site. My second point is that this project is a true Through economic development impact, not only in the Sampson County but for the region. You can see on the handout there this project would create 65 jobs, average annual salary of $48,000 per year, that is significant for a rural area, and then a third point I'll make there are others, the tax base is significant, the property Taxes is a little bit derived. But on the third point what is very important is that this project, the main feed stock, the main raw material coming in for this production isn't coming from another state, isn't coming from another country. It's coming from within about 20 mile radius of the site. And that is $12 to $15 million. A year, it's gonna be paying the local land owners, the local farmers, for the feed stock that comes from their fields and goes to this plant as the raw material. Thank you. >> Thank you Mr. Trupe. Mr. Collin. [BLANK_AUDIO]. State your name sir and who you represent Good morning. Thank you for the invitation. Mr. Chairman, my name is Mart Konmem, I represent Biochem Chemtext they appear in company MNG and the capital investment in Clinton Simpson county, no wonder does Carolina say wants to buy fuels. I wanted to make this a couple of quick comments and greatly appreciate the opportunity to Review this with you but it's agriculture that brought this project to North Carolina and the specific uniqueness of East and North Carolina agriculture. So it's an opportunity and it's the nation's first cellulosic biofuels plant, a 200+ million dollar total all in project based on purpose grown energy crops. So there is more than 650 thousand tones of biomass from these energy crops and related materials already committed to this facility. Which is to go to fancial closing in the fourth quarter and begin construction in the subsequent year on an 18 month cycle The tax credit is important to the equity investors. It's known as Carolina saleosic/g biofuels for a number of reasons but there's an additional major equity partner besides our parent company and this had impact on return on investment so we would greatly appreciate your support in extending the tax Credit. Thank you. >> Thank you sir. Representative West is recognized for a motion. [BLANK_AUDIO]

>> Thank you Mr. Chairman, I move that we give the proposed House Committee Senate Bill 74770 a favorable report on favor of the original bill. >> Referral. >> With the referral finance. >> As amended [BLANK_AUDIO]. Any further discussion or comments? All of those in favor say aye. >> Aye. >> Any opposed, no. Aye's have it. >> Thank you members, thank you Mr. Chairman, I appreciate you support. >> Committee's adjourned. [BLANK_AUDIO]