A BILL TO BE ENTITLED
AN ACT To Direct the Department of Agriculture and Consumer Services, the Department of Commerce, and the Department of Environment and Natural Resources to evaluate the carbon sequestration potential of Natural and working landscapes in the State; to study other opportunities to develop carbon offsets within the state; and to study the feasibility and advisability of establishing a carbon offset program in the state, as recommended by the Legislative Commission on Global climate Change.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  Definitions. – As used in this act:
(1)	"Cap and trade program" means any program that (i) places a limit, or cap, on the total amount of greenhouse gas emissions that is allowed under the specific target for greenhouse gas  emissions set under the program, (ii) allocates greenhouse gas emissions as credits to individual businesses so that the total credits allocated equal the cap, (iii) and allows businesses to bank credits for the future or to buy and sell credits based on whether a particular business reduced or increased its greenhouse gas emissions in a given year and the value of the credits in the marketplace.
(2)	"Carbon offset" means the credit given for activities that result in the reduction or avoidance of greenhouse gas emissions, or for the sequestration of greenhouse gases. For the purposes of this act, one carbon offset shall be equal to the reduction, avoidance, or sequestration of one metric ton of carbon dioxide emissions or its functional equivalent in other greenhouse gases.
(3)	"Carbon sequestration" means the absorption from the atmosphere of carbon dioxide by vegetation and soils; and the storage of carbon in vegetation and soils.
(4)	"Greenhouse gas" means any gas that contributes to anthropogenic global warming, including, but not limited to, carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
SECTION 1.(b)  Study. – The Department of Agriculture and Consumer Services, the Department of Commerce, and the Department of Environment and Natural Resources shall jointly evaluate all of the following:
(1)	The carbon sequestration or reduced emission potential of all lands, wetlands, and coastal waters, including working and natural landscapes in the State, from the following practices:
a.	Alternative farming practices.
b.	Soil carbon management and storage.
c.	Reduced methane emissions from animal waste management systems.
d.	Alternative methods of forest management that can increase carbon sequestration, accounting for changes in the mortality and distribution of tree and other plant species, and the extent to which carbon is stored in trees and wood‑based building materials.
e.	Avoided conversion of agricultural and forestlands.
f.	Protection and enhancement of natural landscapes and diverse ecosystems.
g.	Preserving and restoring coastal salt marshes, sea grass beds, oyster reefs, and other fisheries habitats.
h.	Sustainable use of forest resources for biomass energy production.
i.	Other practices that the agencies find relevant.
(2)	Current and developing technologies for carbon sequestration, including the potential use of microalgae and biochar.
(3)	Existing carbon sequestration and carbon offset programs and policies, including voluntary programs.
(4)	Standards and certification regimes in place for verifying the benefits of carbon sequestration and carbon offset programs, and the feasibility of utilizing State agencies for verification.
(5)	The anticipated costs for landowners, farmers, foresters, and other interested parties in the State to participate as offset providers in a cap and trade program for greenhouse gas emissions, including the costs of monitoring greenhouse gas emissions, satisfying reporting requirements, and any other costs.
(6)	The anticipated benefits for landowners, farmers, foresters, and other interested parties in the State to participate as offset providers in a cap and trade program for greenhouse gas emissions, including any likely increase in their annual incomes.
(7)	Other co‑benefits associated with activities related to carbon sequestration in the State, including improved water quality, soil quantity and quality, air quality, and wildlife habitat.
(7)	The advantages and disadvantages to the State in developing or implementing its own carbon offset certification programs or carbon offset trading systems in the event a federal cap and trade program for greenhouse gas emissions is enacted. 
(8)	Any other issues the agencies consider relevant to this topic. 
SECTION 1.(c)  Consultants. – In the conduct of this study, the agencies may employ independent consultants as provided by G.S. 120‑32.02 and G.S. 120‑70.44.
SECTION 1.(d)  Advisory committee. – The agencies may convene an advisory committee of interested parties to assist in the design and implementation of the study.
SECTION 1.(e)  Report. – The agencies may submit an interim report of their findings and recommendations to the Environmental Review Commission no later than September 1, 2011.  The agencies shall submit a final report of their findings and recommendations, including any legislative proposals, to the General Assembly on or before April 1, 2012.
SECTION 2.  This act is effective when it becomes law.