Conference report recommends the following changes to 5th edition to reconcile matters in controversy. Amends Section 3.(a) (onshore shale gas) to direct the Department of Environment and Natural Resources to provide a comprehensive report to specified parties by May 1, 2012, on the commercial potential of onshore shale gas resources within the state; encourages DENR to collaborate with the newly created Energy Jobs Council (previously directed DENR to work in conjunction with the Energy Jobs Council to provide the report). Amends GS 113B-11(e) to authorize (rather than direct) the Utilities Commission to make its staff available to the Energy Jobs Council. Makes the entire act effective when it becomes law (previously made the energy policy compact effective when a direct sharing of the royalties and revenues became effective). Makes a clarifying change.
Bill Summaries: S709 (2011-2012 Session)
Summary date: Jun 16 2011 - View summary
Summary date: Jun 14 2011 - View summary
House amendments make the following changes to 4th edition, as amended. Amendment #6 adds new Section 3.(b) to direct the Department of Environment and Natural Resources and the Energy Jobs Council to conduct joint studies as required by the Energy Jobs Act and by Section 4 of House Bill 242 (if it becomes law). Makes other conforming changes.
Amendment #7 reinstates previously deleted Section 2.(a)(3), specifying that the compact negotiations and recommendations must advocate proactively with each state’s Congressional delegation and appropriate federal agencies to ensure direct sharing of royalties and revenues related to energy leasing, exploration, development, and production of all offshore energy resources in federal waters adjacent to the state and the three-state region.
Summary date: Jun 13 2011 - View summary
House amendments make the following changes to 4th edition.
Amendment #2 deletes provision requiring the compact negotiations and recommendations to address proactive advocacy with each member state’s congressional delegation and appropriate federal agencies to ensure direct sharing of royalties and revenues related to the activities of the compact. Also makes Section 2 of the act, Development of Governor’s Regional Interstate Offshore Energy Policy Compact, effective when a direct sharing with the state of royalties and revenues related to energy leasing, exploration, development and production of all offshore energy resources in federal waters adjacent to the state becomes effective.
Amendment #3 provides that the Department of Environment and Natural Resources’ (DENR) regulatory framework proposal should include reporting requirements necessary to evaluate the technical and public health and public safety merits of shale gas exploration and energy production (was, technical and public safety merits).
Amendment #4 prohibits funds appropriated to DENR by Section 1.(b) of this act to be used for the construction or maintenance of terminal groins.
Summary date: Jun 9 2011 - View summary
House committee substitute, reported in on 6/8/11, makes the following changes to 3rd edition. Adds a new section to require any revenues and royalties paid to the state as a result of offshore or onshore energy resources activities be deposited in an interest-bearing special revenue fund. Requires the fund to maintain a $500 million balance, and directs monies from the fund to be used only for emergency response, emergency environmental protection, or mitigation associated with the release of liquid hydrocarbons or related substances directly related to offshore or onshore energy exploration, development, or transmission after such event has been declared a disaster by the Governor. Requires funds in excess of the $500 million balance be appropriated as follows: 24% to the General Fund, 10% (was, 15%) to the Highway Trust Fund, 10% to the Community Colleges System Office, 15% to the UNC Board of Governors, 30% to the Department of Environment and Natural Resources, 1% to the Department of Commerce, and 5% to the Rural Center (deletes 5% appropriation to State Ports Authority). Makes a clarifying change to GS 113B-6 (duties and responsibilities of the Energy Jobs Council). Amends GS 113B-9(b) to clarify that certain electric utilities, natural gas utilities, and major oil producers must submit a plan or analysis, as specified, if such action is required for an update of the program. Adds that utilities regulated under GS Chapter 62 may satisfy the requirement by submitting the General Load Reduction and System Restoration Plan. Makes additional conforming and clarifying changes.
Summary date: May 10 2011 - View summary
Senate amendment makes the following changes to 2nd edition. Amends and adds various ‘whereas’ clauses. Directs 15% (previously 20%) of revenues and royalties be credited to the Highway Trust Fund. Directs 10% (previously 5%) of revenues and royalties be transferred to the Community Colleges System Office. Adds new section encouraging the Governor to join the governors of Alaska, Texas, Louisiana, Mississippi, and Virginia and any others who may sign on to the Outer Continental Shelf Governors Coalition.
Summary date: May 4 2011 - View summary
Senate committee substitute makes the following changes to 1st edition. Provides information regarding the renewable energy and energy efficiency industries in North Carolina. Amends certain royalty percentage appropriations.
Directs the Governor to develop a regional energy compact with the governors of South Carolina and Virginia to develop a detailed unified regional strategy on off-shore energy with the three-state region. Also directs the Governor to develop recommendations for the General Assembly to consider for the development of a statutory regional compact as specified. Clarifies that no later than three months after the effective date of the act (previously, no later than December 1, 2011), and at least every three months thereafter, the Governor must report to the General Assembly on the progress in complying with the requirements of the section. Further provides the Governor must report her final recommendations for the three-state energy compact to the Joint Regulatory Reform Committee before May 1, 2012.
Restores language previously removed from GS 113B-1(4) concerning a General Assembly finding. Amends GS 113B-3 to increase the number of members on the Energy Jobs Council from 9 to 12. Specifies that one member must be an energy economist or a person with experience in the financing or business development or an energy-related business. Specifies that one member must be knowledgeable of alternative and renewable sources of energy, other than wind energy. Directs the Governor to appoint a member with experience in wind energy. Details additional appointing authority.
Amends GS 113B-6 to specify the Energy Jobs Council is to provide oversight and approval to the duties delegated to the State Energy Office. Restores language previously deleted from GS 113B-6(1) and adds the term “smart grid” to such language.
Amends the act to delegate many of the responsibilities, formerly delegated to the State Energy Office, to the Energy Jobs Council instead.
Amends GS 113B-11 to direct (currently, authorizes) the Utilities Commission to make staff available to the Energy Jobs Council to assist in the development of a state energy policy.
Provides that upon ratification the Secretary of State must also furnish certified copies of the act to the governors of South Carolina and Virginia, the legislative bodies of South Carolina and Virginia, the Secretary of the United States Department of the Interior, and the President of the United States.
Makes further clarifying, conforming and technical changes.
Summary date: Apr 20 2011 - View summary
Includes whereas clauses regarding offshore energy exploration. Appropriates any revenues and royalties paid to the state from offshore or onshore leasing, exploration, development, and production of energy resources as follows: (1) 25% to the General Fund, (2) 20% to the Highway Trust Fund, (3) 15% to the Community Colleges System Office, (4) 15% to the UNC Board of Governors, (5) 15% to the Department of Environment and Natural Resources (DENR), (6) 5% to the State Port Authority, and (7) 5% to the Department of Commerce.
Directs the Governor to contract with South Carolina and Virginia to increase exploration and production of domestic offshore energy resources, and to include four listed provisions in the agreement. Requires the Governor to report to the General Assembly before December 1, 2011, and at least every three months thereafter on progress and correspondence with the other states.
Directs DENR, with the Energy Jobs Council, to report to the Governor, General Assembly, and Joint Regulatory Reform Committee by May 1, 2012, on the commercial potential of onshore shale gas resources in the state and any necessary regulatory framework. Requires DENR to review all relevant state and federal laws and regulations, existing laws in other states, and to include four specified actions in the report.
Rewrites the title of GS Chapter 113B as North Carolina Energy Policy and Jobs Act. Amends GS 113B-1 to delete several legislative findings regarding energy conservation and include additional findings regarding domestic energy resources. Amends GS 113B-2, stating that the Energy Jobs Council (currently, the Energy Policy Council), located in the Department of Commerce, advises and makes recommendations to increase domestic energy exploration, development, and production in the state and region to promote economic growth and job creation. Makes conforming changes throughout GS Chapter 113B. Clarifies that the Energy Jobs Council (Council) and the State Energy Office will serve as central energy policy planning bodies. Makes conforming changes. Amends GS 113B-3, providing that the Council will consist of 9 members (rather than 16 members in the Energy Policy Council) as follows: the Secretary of Commerce and eight public members, appointed as specified. Requires that appointments be made by October 1, 2011, with all appointed members serving four-year terms. Makes additional conforming changes. Amends GS 113B-4, declaring the Secretary of Commerce as chair of the Council. Makes other conforming changes.
Amends GS 113B-6, providing that the Council’s goal is to identify and utilize all domestic energy resources to ensure a stable energy supply and to protect the economy, promote job creation, and expand business opportunities while protecting natural resources, cultural heritage, and quality of life. Directs the Council to share duties with the State Energy Office as appropriate, and authorizes the Secretary of Commerce to delegate duties to the Council or the State Energy Office. Clarifies the four listed duties of the Council. Amends GS 113B-7, 113B-8, and 113B-9 to replace all references to the Energy Policy Council with references to the State Energy Office. Makes additional conforming changes to add the State Energy Office to various provisions of GS Chapter 113B. Amends GS 113B-12 (annual reports), requiring the State Energy Office, with the Council, to provide a comprehensive report on energy conditions in NC to specified parties every two years (rather than every year). Amends GS 113B-21(a), clarifying that a Legislative Committee on Energy Crisis Management will be created, with membership as detailed, upon the declaration of an energy crisis by the Governor.
Makes conforming changes to GS 114-4.2D, 143-58.5(c), and 143-345.13, replacing Energy Policy Council with Energy Jobs Council. Directs the Revisor of Statutes to make additional conforming changes, as necessary. Terminates the memberships of all members serving on the Energy Policy Council on the date the act becomes law. Directs the Secretary of State to provide copies of the ratified bill to the NC members of the U.S. Congress.