CLEAN ENERGY/OTHER CHANGES. (NEW)

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View NCGA Bill Details2023-2024 Session
Senate Bill 678 (Public) Filed Thursday, April 6, 2023
AN ACT TO (I) DEFINE "CLEAN ENERGY," WHICH INCLUDES "RENEWABLE ENERGY" AND NUCLEAR AND FUSION ENERGY; (II) ELIMINATE LANGUAGE IMPEDING CPCN ISSUANCE FOR NUCLEAR FACILITIES; (III) MODIFY CLOSURE DEADLINES FOR CERTAIN COAL COMBUSTION RESIDUALS SURFACE IMPOUNDMENTS; (IV) MODIFY APPLICATIONS FEES FOR DAM CONSTRUCTION, REPAIR, ALTERATION, OR REMOVAL UNDER THE DAM SAFETY ACT; (V) REQUIRE APPROVAL BY THE LOCAL GOVERNMENT COMMISSION FOR LOCAL GOVERNMENTS TO ENTER INTO AGREEMENTS TO CEDE OR TRANSFER CONTROL OVER A PUBLIC ENTERPRISE TO A NONGOVERNMENTAL ENTITY; (VI) PROHIBIT LOCAL GOVERNMENTS FROM ENTERING NONDISCLOSURE AGREEMENTS IN ORDER TO RESTRICT ACCESS TO PUBLIC RECORDS SUBJECT TO DISCLOSURE UNDER THE PUBLIC RECORDS ACT; AND (VII) ESTABLISH EMPLOYEE CLASSIFICATION AND COMPENSATION EXEMPTIONS FOR THE UTILITIES COMMISSION AND PUBLIC STAFF.
Intro. by P. Newton, B. Newton, Craven.

Status: Ch. SL 2023-138 (Oct 10 2023)

SOG comments (3):

Long title change

Committee substitute to the 3rd edition changed the long title. Previous long title was AN ACT TO REDEFINE "RENEWABLE ENERGY" AS "CLEAN ENERGY," TO PROVIDE THAT THE TERM INCLUDES NUCLEAR RESOURCES AND FUSION ENERGY, AND TO ELIMINATE LANGUAGE IMPEDING CPCN ISSUANCE FOR NUCLEAR FACILITIES.

Long title change

House committee substitute to the 4th edition changed the long title. Previous title was AN ACT TO: (I) REDEFINE "RENEWABLE ENERGY" AS "CLEAN ENERGY," TO PROVIDE THAT THE TERM INCLUDES NUCLEAR RESOURCES AND FUSION ENERGY, AND TO ELIMINATE LANGUAGE IMPEDING CPCN ISSUANCE FOR NUCLEAR FACILITIES; (II) MODIFY CLOSURE DEADLINES FOR CERTAIN COAL COMBUSTION RESIDUALS SURFACE IMPOUNDMENTS; (III) MODIFY APPLICATIONS FEES FOR DAM CONSTRUCTION, REPAIR, ALTERATION, OR REMOVAL UNDER THE DAM SAFETY ACT; AND (IV) INCREASE THE ROOFTOP SOLAR LEASING CAP.

Long title change

Conference report to the 5th edition changed the long title. Previous long title was AN ACT TO: (I) REDEFINE "RENEWABLE ENERGY" AS "CLEAN ENERGY," TO PROVIDE THAT THE TERM INCLUDES NUCLEAR RESOURCES AND FUSION ENERGY, AND TO ELIMINATE LANGUAGE IMPEDING CPCN ISSUANCE FOR NUCLEAR FACILITIES; (II) MODIFY CLOSURE DEADLINES FOR CERTAIN COAL COMBUSTION RESIDUALS SURFACE IMPOUNDMENTS; (III) MODIFY APPLICATIONS FEES FOR DAM CONSTRUCTION, REPAIR, ALTERATION, OR REMOVAL UNDER THE DAM SAFETY ACT; (IV) INCREASE THE ROOFTOP SOLAR LEASING CAP; (V) REQUIRE APPROVAL BY THE LOCAL GOVERNMENT COMMISSION FOR LOCAL GOVERNMENTS TO ENTER INTO AGREEMENTS TO CEDE OR TRANSFER CONTROL OVER A PUBLIC ENTERPRISE TO A NONGOVERNMENTAL ENTITY; AND (VI) PROHIBIT LOCAL GOVERNMENTS FROM ENTERING NONDISCLOSURE AGREEMENTS IN ORDER TO RESTRICT ACCESS TO PUBLIC RECORDS SUBJECT TO DISCLOSURE UNDER THE PUBLIC RECORDS ACT.

Bill History:

S 678/S.L. 2023-138

Bill Summaries:

  • Summary date: Oct 12 2023 - View Summary

    AN ACT TO (I) DEFINE "CLEAN ENERGY," WHICH INCLUDES "RENEWABLE ENERGY" AND NUCLEAR AND FUSION ENERGY; (II) ELIMINATE LANGUAGE IMPEDING CPCN ISSUANCE FOR NUCLEAR FACILITIES; (III) MODIFY CLOSURE DEADLINES FOR CERTAIN COAL COMBUSTION RESIDUALS SURFACE IMPOUNDMENTS; (IV) MODIFY APPLICATIONS FEES FOR DAM CONSTRUCTION, REPAIR, ALTERATION, OR REMOVAL UNDER THE DAM SAFETY ACT; (V) REQUIRE APPROVAL BY THE LOCAL GOVERNMENT COMMISSION FOR LOCAL GOVERNMENTS TO ENTER INTO AGREEMENTS TO CEDE OR TRANSFER CONTROL OVER A PUBLIC ENTERPRISE TO A NONGOVERNMENTAL ENTITY; (VI) PROHIBIT LOCAL GOVERNMENTS FROM ENTERING NONDISCLOSURE AGREEMENTS IN ORDER TO RESTRICT ACCESS TO PUBLIC RECORDS SUBJECT TO DISCLOSURE UNDER THE PUBLIC RECORDS ACT; AND (VII) ESTABLISH EMPLOYEE CLASSIFICATION AND COMPENSATION EXEMPTIONS FOR THE UTILITIES COMMISSION AND PUBLIC STAFF. SL 2023-138. Enacted October 10, 2023. Effective October 10, 2023, except as otherwise provided.


  • Summary date: Oct 2 2023 - View Summary

    The Governor vetoed the act on October 2, 2023. The Governor's objections and veto message are available here: https://webservices.ncleg.gov/ViewBillDocument/2023/7387/0/S678-BILL-NBC-11458


  • Summary date: Sep 20 2023 - View Summary

    Conference report makes the following changes to the 5th edition. 

    Part I.

    Section 1.

    Amends GS 62-133.8 (pertaining to clean energy and energy efficiency portfolio standard (CEPS)) to add new defined terms (1) clean energy facility: a renewable energy facility, a nuclear energy facility, including an uprate to a nuclear energy facility, or a fusion energy facility; (2) clean energy resource: renewable energy resources, nuclear energy resources, including an uprate to a nuclear energy facility, and fusion energy; and (3) new clean energy facility: a new renewable energy facility, or facilities placed into service on or after January 1, 2007, which are either (a) a nuclear energy facility, including an uprate to a nuclear energy facility or (b) a fusion energy facility. Reinstates defined term new renewable energy facility. Reverts defined term clean energy facility back to renewable energy facility. Amends newly defined term renewable energy resource (was, clean energy resource) to remove references to nuclear energy in the definition’s list of what types of energy constitute a renewable energy resource. Makes conforming changes.  

    Removes proposed changes to  GS 62-110.8 (concerning competitive procurement of clean energy); GS 62-126.4 (concerning the establishment of net metering rates by the Utilities Commission [Commission]); GS 62-133.2 (pertaining to fuel and fuel-related charge adjustments for electric utilities); GS 62-133.20 (cleanfields clean energy demonstration parks); GS 62-153 (contracts of public utilities with certain companies for services); GS 62-156 (power sales by small power producers to public utilities); GS 62-159.2 (direct clean energy procurement for major military installations, public universities, and large customers); GS 143-213 (proposed changes to defined terms farmer digester system and clean animal biomass energy resource); GS 160A-272 (lease or rental of property); and GS 160D-1320 (local government programs to finance energy improvements).

    Section 2.

    Changes the standard governing the Commission’s determination under GS 62-110.1 (pertaining to permits for generating facilities) as to whether to grant a certificate for a generating facility by an electric public utility to whether facility is part of the least cost path to achieve compliance with the authorized carbon reduction goals in GS 62-110.9 (carbon dioxide reduction standards), will maintain or improve upon the adequacy and reliability of the existing grid, in addition to whether the construction and operation of the facility is in the public interest. (Previously, Commission had to find that energy efficiency measures, demand-side management, renewable clean energy resource generation, combined heat and power generation, or any combination thereof would not establish or maintain a more cost-effective and reliable generation system, in addition to public interest evaluation.)

    Part IV.

    Deletes old Part IV, concerning an increase in the rooftop solar leasing cap.

    Amends proposed GS 159-154 (nongovernmental control of public enterprises) by adding that the statute does not apply to the sale of a public enterprise to a utility regulated by the Commission.

    Changes the effective date of the changes to GS 132-1 from October 1, to November 1, 2023.

    Part V.

    Adds the following new content.

    Amends GS 62-14 by exempting the Commission and its employees from classification and compensation rules established by the State Human Resources Commission under GS 126-4(1) through (4) (concerning position classification plans, compensation plans, reasonable position qualifications, and recruitment programs); GS 126-4(5) only as it applies to hours and days of work, vacation, and sick leave; GS 126-4(6) only as it applies to promotion and transfer; GS 126-4(10) only as it applies to the prohibition of the establishment of incentive pay programs; and Article 2 (Salaries, Promotions, and Leave of State Employees) of GS Chapter 126, except for GS 126-7.1 (Posting requirement; State employees receive priority consideration; reduction-in-force; Work First hiring; reorganization through reduction).

    Amends GS 62-15 by adding in the same exemptions for the Public Staff (except for the executive director).

    Makes conforming changes to GS 126-5(c11).

    Makes organizational changes and conforming changes to act’s long title.


  • Summary date: Aug 16 2023 - View Summary

    House committee substitute to the 4th edition makes the following changes.

    Adds new Part V with the following content. 

    Creates new GS 159-154 (Non-governmental control of public enterprises), which:

    (1) Adopts definitions relevant for the section.

    (2) Prohibits a unit of local government from conceding or transferring control of any public enterprise to a non-governmental entity unless the concession/transfer and the agreement controlling the concession/transfer are approved by the Local Government Commission (LGC) under the terms of the section. Requires any agreement for concession/transfer to bear the LGC Secretary’s certificate to be valid. 

    (3) Requires the governing board of a unit of local government to submit an application to the LGC prior to entering into an agreement subject to this section. Allows the LGC to require a preliminary conference with the governing board or representatives of the board prior to approving the application. 

    (4) Requires the governing body of a unit of local government to hold a public hearing to determine if an agreement subject to this section is in the public interest prior to the LGC’s consideration of the agreement. Establishes requirements for the public hearing. Outlines 11 criteria for consideration by the governing body when determining whether the agreement is in the public interest. 

    (5) Allows the LGC to approve an agreement if it finds that the agreement will reduce short and long term costs to customers without the imposition of material costs or charges to the local government unit or the customers upon termination of the agreement. Permits the LGC to inquire into and consider matters that it believes have bearing on whether the agreement should be approved, including any of 12 listed criteria. 

    (6) Permits the LGC to require any projection or analysis provided along with an agreement to be prepared by an independent expert approved by the LGC. 

    (7) Allows the LGC to inform the unit of local government if it tentatively decides to deny an agreement because it cannot be supported by the information submitted to the LGC. Requires the LGC to enter an order denying or approving an application. Clarifies that LGC approval of an agreement does not represent approval of the legality of the agreement. 

    (8) Requires a unit of local government to seek approval from the LGC before terminating an agreement approved under this section prior to the expiration of its stated term. Specifies that the approval must follow a procedure similar to the initial approval of the agreement. Clarifies that this requirement does not apply to termination of the agreement as an exercise of legal remedies following a breach of the agreement’s terms. 

    (9) Imposes a similar LGC approval requirement prior to adoption of an amendment to an agreement initially approved under this section. 

    Amends the title of Article 8, GS Chapter 159, to include “Arrangements for Non-Governmental Control of Public Enterprises.”

    Prohibits political subdivisions of the State from entering into non-disclosure agreements to restrict access to public records by creating new subsection (c) in GS 132-1. Makes a public record any contract where a political subdivision agrees not to disclose information confidential under state law, unless the existence of the contract is also confidential under state law. Requires that a non-disclosure agreement associated with a closed session meeting under GS Chapter 143, Article 33C, be included in the minutes of each closed session meeting. Effective and applicable to any non-disclosure agreements entered into on or after October 1, 2023. 

    Makes conforming changes to the act's long title.


  • Summary date: Jun 27 2023 - View Summary

    House committee substitute to the 3rd edition makes the following changes.

    Adds the following content.

    Part II.

    Extends deadlines for the following nine listed coal combustion residuals surface impoundments to be closed as soon as practicable, but not later than the following dates, except as otherwise preempted by the requirements of federal law, and notwithstanding any applicable deadlines established in State law:

    • Coal combustion residuals surface impoundments located at the H.F. Lee Steam Station owned and operated by Duke Energy Progress, and located in Wayne County. December 31, 2035.
    • Coal combustion residuals surface impoundments located at the Cape Fear Steam Station, owned and operated by Duke Energy Progress, and located in Chatham County, December 31, 2035.
    • Coal combustion residuals surface impoundments located at the Allen Steam Station owned and operated by Duke Energy Carolinas, and located in Gaston County, December 31, 2038.
    • Coal combustion residuals surface impoundments located at the Belews Creek Steam Station owned and operated by Duke Energy Carolinas, and located in Stokes County, December 31, 2034.
    • Coal combustion residuals surface impoundments located at the Buck Steam Station owned and operated by Duke Energy Carolinas, and located in Rowan County, December 31, 2035.
    • Coal combustion residuals surface impoundments located at the Rogers Energy Complex (formerly Cliffside Steam Station) owned and operated by Duke Energy Carolinas, and located in Cleveland County and Rutherford County, December 31, 2029.
    • Coal combustion residuals surface impoundments located at the Marshall Steam Station owned and operated by Duke Energy Carolinas, and located in Catawba County, December 31, 2035.
    • Coal combustion residuals surface impoundments located at the Mayo Steam Station owned and operated by Duke Energy Progress, and located in Person County, December 31, 2029.
    • Coal combustion residuals surface impoundments located at the Roxboro Steam Station owned and operated by Duke Energy Progress, and located in Person County, December 31, 2036.

    Makes conforming changes to GS 130A-309.214 (pertaining to closure of coal combustion residuals surface impoundments) to account for new deadlines.

    Authorizes the Environmental Management Commission (EMC) to adopt permanent rules governing permitting for closure and post-closure of coal combustion residuals surface impoundments and landfills in accordance with the provisions of GS Chapter 150B, except the EMC is exempt from the fiscal note requirement of GS 150B-21.4 and from the Rules Review Commission review under Part 3 of Article 2A, GS Chapter 150B, in adopting rules to implement such rules.

    Part III.

    Changes the fees for dam construction, repair, alteration, or removal under the Dam Safety Law.

    GS 143-215.28A of the NC Dam Safety Law currently authorizes the EMC to establish a fee schedule for processing applications for approvals of construction or removal of dams issued under the Act. The law specifies that the total amount of fees collected in any fiscal year may not exceed one-third of the total personnel and administrative costs incurred by the Department of Environmental Quality (DEQ) for processing the applications and for related compliance activities in the prior fiscal year. Further, an approval fee may not exceed the larger of $200 or 2% of the actual cost of construction or removal of the applicable dam. The fee for notification of a professionally supervised dam removal under GS 143-215.27(c)(1) must be $500 and paid to the Department. The provisions of GS 143-215.3(a)(1b) do not apply to these fees.

    The act amends GS 143-251.28A to remove the current structure set forth above. Instead, applicants would pay a nonrefundable application processing and compliance fee in the amount of 2.25% of the actual cost of construction, repair, alteration, breach, or removal of the applicable dam for the processing of applications for approvals of construction, repair, or removal of dams as follows: (1) an initial fee of $500 or one-half of the processing and compliance fee based on the engineer's estimated cost of construction, repair, alteration, or removal of the dam, whichever amount is greater, must be submitted with the application and (2) the remainder of the processing  and compliance fee based on the engineer's estimated cost of construction, repair, alteration, or removal of the dam, whichever amount is greater, must be paid when the as-built plans are  submitted to DEQ. Specifies that the maximum fee cannot exceed $50,000 for the construction, repair, alteration, or removal of a dam. Specifies that no application can be reviewed until the initial fee is paid. Provides for a certificate of actual cost incurred by the owner to be filed with DEQ upon completion of the project along with supporting documentation. Authorizes DEQ to withhold or revoke final impoundment approval until accurate information is provided and verified by DEQ if the director finds that the owner’s certification and/or documentation contains inaccurate information. Specifies that final approval to impound cannot be granted until the certification/documentation discussed above has been filed and the remainder of the application processing and compliance fee has been paid. Specifies that for purposes of determining the actual cost of construction, repair, alteration, or removal, the cost must: (1) include all labor and materials costs associated with the project for the applicable dam and (2) cannot include the costs associated with acquisition of land or right-of-way, design, quality control, electrical generating machinery, or constructing a roadway across the dam. Specifies permitted forms of tender.

    Part IV.

    Amends GS 62-126.5 (pertaining to the scope of a leasing program in offering utilities’ service areas) as follows. Increased the total installed capacity of all solar energy facilities on an offering utility's system leased pursuant to the statute from 1% to 10% of the previous five-year average of the State retail contribution to the offering utility’s coincident retail peak demand. Specifies that a solar energy facility leased to an individual customer generator lessee pursuant to GS 62-126.5 is limited to a capacity of (1) not more than the lesser of 1,000 kilowatts (kW) or 100% of contract demand if a nonresidential customer or (2) not more than 20 kilowatts (kW) or 100% of estimated electrical demand if a residential customer. Effective August 1, 2023, and applies to solar energy facility leases executed on or after that date.

    Makes organizational and conforming changes. Makes conforming changes to act’s long and short titles.   


  • Summary date: Apr 26 2023 - View Summary

    Senate amendment to the 2nd edition makes the following changes. Amends GS 62-110.1 (pertaining to certificates for construction of generating facilities) to specify that a certificate is needed for any electric generating facility (was, just coal facilities).  Deletes requirement that Commission consider power quality, resource availability, dispatchability, capacity, and reasonably anticipated future maintenance and decommissioning costs in determining whether to grant a certificate. Makes technical change. Deletes inclusion of GS 62-126.8


  • Summary date: Apr 19 2023 - View Summary

    Senate committee substitute to the 1st edition makes the following changes.

    Amends GS 62-133.8 by changing the term "clean energy certificate" to "renewable energy certificate" and makes changes throughout the bill to reflect this new terminology.

    Makes a clarifying change in GS 62-110.1.


  • Summary date: Apr 13 2023 - View Summary

    Amends GS 62-133.8 concerning the Renewable Energy and Energy Efficiency Portfolio Standard by changing the term to Clean Energy and Energy Efficiency Portfolio Standard (CEPS) and making the following changes. Changes the term "renewable energy resource" to "clean energy resource" and amends the definition of the term so that it also includes nuclear energy resources, including an uprate to a nuclear energy facility, and fusion energy. Amends all terms as they are used in the statute to refer to "clean energy" instead of "renewable energy," including "clean energy facilities" and "clean energy certificate." Adds and defines the term fusion, meaning a reaction in which at least one heavier, more stable nucleus is produced from two lighter, less stable nuclei, typically through high temperatures and pressures, emitting energy as a result. Adds and defines the term "fusion energy" as meaning the product of fusion reactions inside a "fusion device," used for the purpose of generating electricity or other commercially usable forms of energy. Makes conforming changes throughout the statute by referring to "clean energy" instead of "renewable energy."

    Amends the following statutes to also refer to "clean energy" instead of "renewable energy": GS 62-2 (declaration of policy on clean energy and energy efficiency); GS 62-110.8 (competitive procurement of clean energy); GS 62-126.4 (net metering rates); GS 62-126.8 (community solar energy facilities); GS 62-1332 (fuel and fuel-related charge adjustments for electric utilities); GS 62-113.16 (performance-based regulation authorized); GS 62-133.20 (cleanfields clean energy demonstration parks); GS 62-153 (contracts of public utilities with certain companies and for services); GS 62-156 (power sales by small power producers to public utilities); GS 62-159.2 (direct clean energy procurement for major military installations, public universities, and large customers); GS 62-300 (particular fees and charges fixed; payment); GS 143-213 (amending definitions used in specified articles of GS Chapter 143); GS 143B-282 (Environmental Management Commission); GS 160A-272 (concerning leases for the siting and operation of a clean energy facility); and GS 160D-1320 (program to finance energy improvements).

    Amends GS 62-110.1, concerning certificates for the construction of an electricity-generating facility, as follows. No longer requires an applicant for a certificate for the construction of a nuclear facility to demonstrate (and the Utilities Commission to find) that energy efficiency measures; demand-side management; clean (was, renewable) energy resource generation; combined heat and power generation; or any combination thereof would not establish or maintain a more cost-effective and reliable generation system and that the construction and operation of the facility is in the public interest. Expands upon the issues the Commission must consider when making such a determination to also include power quality, resource availability, dispatchability, capacity, and costs of maintenance and decommissioning. Makes conforming changes.