The North Carolina Legislature passed the Farm Act of 2021 to facilitate joint ventures between producer organizations and energy utilities to capture biogas from waste lagoons to be distributed as a source of energy. This technology involves placing a flexible covering over hog-waste lagoons. The traditional system of waste disposal involves release to lagoons resulting in release of methane, a potent greenhouse gas. The proposal to convert lagoons to anaerobic digesters would allow biogas to be collected and used subject to installations and required infrastructure. Residue in the lagoons would still be sprayed on pasture. The traditional lagoon and spray installations on large hog farms resulted in a series of lawsuits in 2020, with rulings against Smithfield Foods favoring neighbors of large contract hog operations.
At issue is a $500 million biogas project to be developed as a joint venture between Smithfield Foods and Align Renewable Natural Gas, a subsidiary of Dominion Energy. The utility proposes to install 30 miles of pipeline within major hog producing counties in Eastern North Carolina to collect biogas from 19 farms that will participate in the program. Align Renewable Natural Gas will construct a central processing facility to allow biogas to be used for power generation or to heat homes. Currently only 24 of 2,083 permitted hog facilities have ay form of biodigester system installed
The 2021 Act requires the state Department of Environmental Quality (DEQ) to fast-track approvals for existing hog farms. The NC DEQ must either approve or reject an application within 90 days of submission. Opposition from the Environmental Justice and Equity Advisory Board representing 16 member organizations has requested the DEQ to ensure that minority communities would not be adversely affected by granting of permits. The concern of the Southern Environmental Law Center is that the 90-day period to approve applications may deprive landowners and neighbors of farms to express concerns with an application.