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Carolina Environmental Policy Act (NCEPA) - which provides a process for environmental review of projects
<br />in which the state is involved.21 An environmental review under NCEPA, however, would not always be
<br />triggered by development of a wind facility. NCEPA environmental review is required for projects that meet
<br />three criteria: (1) where there is an expenditure of public monies or use of public land (including submerged
<br />lands), and (2) a state action (such as a permit), and (3) a potential environmental effect "upon either natural
<br />resources, public health and safety, natural beauty, or historical or cultural elements of the state's common
<br />inheritance. "22 Tax incentives that are available after a facility is operating do not trigger NCEPA.23 The
<br />state Renewable Energy Tax Credits and the Federal Production Tax Credit for Wind would, therefore, not
<br />trigger NCEPA, but it is possible that the State Renewable Energy Grant program would.24 Under the North
<br />Carolina Coastal Area Management Act (CAMA), the primary permitting program for coastal development,
<br />which is discussed in more detail below, most activities requiring a CAMA permit are explicitly exempt from
<br />NCEPA review unless they meet certain criteria established by the Department of Environment and Natural
<br />Resources (DENR).25 For projects requiring a CAMA major permit or Dredge and Fill permit, DENR
<br />has established minimum criteria that must be met in order to trigger NCEPA; projects that do not meet
<br />this minimum threshold are exempt from NCEPA even if they otherwise would be subject to NCEPA.26
<br />One criterion may be applicable to wind farms: excavation of materials from aquatic environments for
<br />non - navigational projects does trigger NCEPA.27 Installation of wind turbines in state waters, either the sound
<br />or up to 3 miles offshore, would involve excavation, and thus, would meet the minimum criteria. Since
<br />projects in state waters would meet the excavation criteria, and would meet the three basic triggers of NCEPA
<br />review — public funds or land (including submerged land), permits, and potential environmental impact -
<br />wind energy projects in state waters would be subject to NCEPA.
<br />Projects that require a CAMA permit but are located on land, however, would be exempt from a NCEPA
<br />review Another provision in the rules allows an agency Secretary, in this case the NC Department of
<br />Environment and Natural Resources (DENR), to require an environmental document when the proposed
<br />activity does not meet the agency's minimum criteria but may have potential for significant adverse effects.za
<br />It is not clear whether this provision only applies to projects that fall under the scope of NCEPA in the first
<br />place — i.e., involve public money or land, require a permit, and have potential environmental impacts, so it is
<br />unclear whether the Secretary's discretion to require an environmental review for CAMA- permitted projects
<br />would apply to wind farms on private land. General permits, which are granted for routine projects with little
<br />or no environmental impact, under the Coastal Area Management Act (CAMA), as well as under air pollution
<br />and water discharge laws, are exempt from NCEPA.29 Also noteworthy is an exemption in the rules from
<br />NCEPA for sampling and research activities, which could include the installation of an anemometer to gather
<br />wind speed data.30
<br />D. Coastal Area Management Act
<br />As authorized by the federal Coastal Zone Management Act, the state developed its own Coastal Management
<br />Program, which was federally approved in 1978. As part of this program, the state adopted the Coastal Area
<br />Management Act (CAMA).31 CAMA established the Coastal Resources Commission (CRC), required local
<br />land use planning in the 20 coastal counties and created a program for regulating development through a
<br />permitting process.32 The statute authorizes the CRC to establish rules for protection and conservation of
<br />natural resources (including scenic vistas), economic development, recreation; preservation of cultural aspects,
<br />and protection of public rights.33 In terms of regulating development, the CRC has the authority to issue
<br />permits for development inside "areas of environmental concern" (AEC), which the CRC is authorized to
<br />define.34 Within the CAMA counties, AECs encompass most navigable waters of the state but only three
<br />percent of the land area.35 The CRC has established rules to define four categories of AECs and has established
<br />general and specific use standards in each AEC.36 Permits are required only if a project falls within or affects an
<br />AEC and does not meet one of the exemptions.
<br />/. When a C 4MA permit is reg wired.
<br />There are two types of permits, "major permits" and "minor permits." A "major permit" is required if the
<br />project (1) falls under the definition of "development ", and (2) is in an AEC, and (3) meets one of the
<br />186 Appendix C
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