Bill Summary for H 613 (2013-2014)

Summary date: 

Apr 8 2013

Bill Information:

View NCGA Bill Details2013-2014 Session
House Bill 613 (Public) Filed Monday, April 8, 2013
A BILL TO BE ENTITLED AN ACT TO (1) PRESERVE THE APPALACHIAN MOUNTAINS BY PROHIBITING ELECTRIC PUBLIC UTILITIES THAT OPERATE COAL-FIRED GENERATING UNITS LOCATED IN NORTH CAROLINA FROM PURCHASING OR USING COAL THAT IS EXTRACTED USING MOUNTAINTOP REMOVAL COAL MINING; (2) REQUIRE PERMITS FOR CERTAIN SOLID WASTE DISPOSAL SITES FOR THE REUSE OF COMBUSTION PRODUCTS AND FOR CERTAIN SOLID WASTE DISPOSAL SITES FOR STRUCTURAL FILL AND TO ESTABLISH PERMIT FEES FOR THESE DISPOSAL SITES IN ORDER TO ADEQUATELY PROTECT THE PUBLIC HEALTH AND THE ENVIRONMENT; (3) PROVIDE ECONOMIC RELIEF TO ELECTRIC UTILITY RATEPAYERS DURING THIS PERIOD OF ECONOMIC RECESSION AND THE COMING RECOVERY PERIOD BY PLACING A MORATORIUM ON THE CONSTRUCTION OF ANY NEW COAL-FIRED POWER PLANT UNLESS IT IS CARBON NEUTRAL; AND (4) REQUIRE THE STATE TREASURER TO REPORT TO THE GENERAL ASSEMBLY PRIOR TO THE 2014 SHORT SESSION REGARDING DIVESTMENT OF PUBLIC FUNDS FROM COMPANIES INVOLVED IN THE EXTRACTION, PROCESSING, COMBUSTION, TRANSPORTATION, STORAGE, OR BROKERAGE OF FOSSIL FUELS.
Intro. by Harrison, Fisher, Luebke.

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Bill summary

Enacts a new Article 5B in GS Chapter 62 to be known as the Appalachian Mountains Preservation Act. Includes findings and purpose regarding the negative impact of mountaintop removal coal mining on the Appalachian Mountains.

Prohibits electric public utilities that operate coal-fired generating units in North Carolina from purchasing or using coal that is extracted by mountaintop removal coal mining. Authorizes the NC Utilities Commission (Commission) to adopt rules to implement proposed new Article 5B. Defines coal-fired generating unit as defined in GS 62-133.6 and mountaintop removal coal mining to mean any method of surface coal mining that removes a mountaintop or ridgeline, whether or not the mined area will be returned to its approximate original contour.

Requires each electric public utility that operates a coal-fired generating unit located in the state to secure the sworn statement of an authorized officer from the coal provider attesting that the coal the utility agrees to purchase or use was not, nor will be, extracted using mountaintop removal coal mining. Specifies information that must be included in the sworn statement. Directs each public utility to provide the Commission, on the fifteenth of each month, a report itemizing its costs for purchasing or using coal extracted by a method other than mountaintop removal coal mining. Requires that as a part of its annual report, each electric public utility operating a coal-fired generator in NC submit to the Commission copies of each required sworn statement and each purchase contract. Provides additional guidelines regarding information regarding rate determinations, determining compliance, and confidentiality of information.

Provides for penalties for any electric public utility company that is in violation of the prohibition against contracting to purchase or use coal extracted by mountaintop removal coal mining or in violation of the monthly or annual reporting requirements. Enacts new GS 62-133.10 in Article 7 of GS Chapter 62 to provide for cost recovery through an annual rider for the incremental cost of purchasing or using coal extracted by a method other than mountaintop removal coal mining. The above indicated provisions are effective January 1, 2014, and apply to contracts to purchase coal entered into on or after that date.

Amends GS 130A-290(a) to modify the definition for combustion products landfill and to add definitions for the terms fully encapsulated and structural fill. Makes organizational changes. Amends GS 130A-294(a) to provide that the permit requirements of this section apply to a solid waste disposal site for their use of combustion products and a solid waste disposal site for structural fill unless the end product or structural fill is fully encapsulated and otherwise prohibited in such a way as to prevent the leaching of coal combustion residual constituents.

Amends GS 130A-295.8(c) and (d) to expand the fee schedule for permits to include permit application fees for disposal sites for the reuse of combustion products or for structural fill consistent with the provisions of GS 130A-294(a). Fee amount varies depending on the type of permit sought, whether new, amendment, or modification, and based on the annual tonnage of the combustion products.

The above indicated provisions are effective January 1, 2014 and applies to combustion products that are reused or disposed of on or after that date.

Creates The Electric Utility Ratepayers Relief Act (Relief Act). Enumerates findings by the General Assembly to support its finding that for a certificate issued before the current recession, construction of a new coal-fired generating unit is no longer in the public interest. Provides that the purpose of the Relief Act is to promote economic relief to public utility rate payers by temporarily prohibiting the issuance of any new certificate authorizing the construction of a coal-fired generating unit by the North Carolina Utilities Commission and requiring the suspension of any certificate issued before July 1, 2013 for any generating unit not in operation by July 1, 2013, unless the new or pre-July 1, 2013 certificate is for a coal-fired generating unit that is carbon neutral. Provides definitions as follows: (1) carbon neutral means emitting no carbon dioxide into the atmosphere and includes employing a technique to absorb carbon dioxide so that it is not emitted into the atmosphere; (2) certificate as defined in GS 62-3; (3) coal-fired generating unit as defined in GS 62-133.6; and (4) public utility as defined in GS 62-3.

Declares a moratorium on the issuance of a certificate to operate a coal-fired generating unit pursuant to any application filed with the NC Utilities Commission (Commission) on or after July 1, 2013 unless the unit is carbon neutral. Temporarily suspends any certificate issued prior to July 1, 2013 for construction of any coal-fired generating unit that has not begun operations as of July 1, 2013, unless the coal-fired unit is carbon neutral. Provides that the suspension is to be in place until July 1, 2018. Does not prohibit costs recovery for an electric public utility. Provides for penalties for construction of a coal-fired generating unit in violation of this act.

Requires the State Treasurer to report to the Joint Legislative Commission on Governmental Operations, no later than May 1, 2014,on a plan that includes a list of companies to be divested from the Public Funds as well as a schedule for completing the divestment. Defines Public Funds as having the meaning set forth in GS 147-86.42.

Except as otherwise indicated, effective when the act becomes law.

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