Appropriates $72,000 from the General Fund to the Office of State Budget and Management for 2026-27 to provide a directed grant to the named nonprofit organization, for the annual Winston-Salem HIV/AIDS Awareness Walk, designed to raise awareness, reduce stigma, and increase education regarding HIV/AIDS. Effective July 1, 2026.

Appropriates $31,000 from the General Fund to the Office of State Budget and Management for 2026-27 to provide a directed grant to the named nonprofit organization, for a marketing campaign and an eight-week workshop event designed to enhance sexual health education and awareness among adolescents aged 13-18. Effective July 1, 2026.

Appropriates $1 million from the General Fund to the Office of State Budget and Management for 2026-27 to provide a directed grant to Forsyth County to be used for the Cure Violence Program to address violence. Effective July 1, 2026.

Part I.

Sets a monthly teacher salary schedule for "A" teachers for 2025-26 for licensed public school personnel classified as teachers, based on years of experience, ranging from $4,469 for teachers with 0 years of experience to $6,099 for 25 or more years of experience. Provides for a 12% salary supplement for licensed teachers who have National Board for Professional Teaching Standards certification; a 10% salary supplement for licensed teachers classified as "M" teachers; a $126 salary supplement for licensed teachers with licensure based on academic preparation at the six-year degree level, in addition to the "M" teachers salary supplement; a $253 salary supplement for licensed teachers with licensure based on academic preparation at the doctoral degree level, in addition to the "M" teachers salary supplement; a 10% salary supplement for certified school nurses; and monthly salary supplement of $100 for school counselors licensed at the master’s degree level or higher. Requires that the first step of the salary schedule for school psychologists, school speech pathologists licensed at the master's degree level or higher, and school audiologists licensed at the master's degree level or higher, must be equivalent to the sixth step of the "A" salary schedule. Provides for a salary supplement of the $350 and 10% of their salary. Deems these employees eligible to receive salary supplements equivalent to those of teachers for academic preparation at the six-year degree level or the doctoral degree level. Requires that the twenty-sixth step of the salary schedule for school psychologists, school speech pathologists licensed at the master's degree level or higher, and school audiologists licensed at the master's degree level or higher must be 7.5% higher than the salary received by these same employees on the twenty-fifth step of the salary schedule. Provides that in lieu of the amounts of annual longevity payments to teachers paid on the teacher salary schedule, beginning with the 2014-15 fiscal year, the amounts of those longevity payments are included in the monthly amounts under the teacher salary schedule. Details teacher compensation for the 2026-27 school year based on either (1) the applicable salary schedule; (2) the sum of the salary the teacher received in 2013-14, longevity pay for the 2013-14 school year, and annual bonus provided in SL 2014-100; or (3) the sum of the salary and annual bonus the teacher received in the 2014-15 school year, with the compensation amount determined to be equal to the greater of those amounts. Provides that teacher includes instructional support personnel.

Sets an annual principal salary schedule, applicable to the 2026-27 fiscal year beginning July 1, 2026. Sets out the schedule based on average daily membership (ADM) with amounts increasing from the base amount, for meeting and then for exceeding growth; sets out provisions for determining which category to use. Amounts range from $84,793 for an ADM of 0-200 base salary to $127,189 for an ADM of 1,601 or more that exceeds growth. Sets out provisions governing placement on the salary scale. Provides that in lieu of the amounts of annual longevity payments, beginning with the 2017-18 fiscal year, the amounts of those longevity payments are included in the salary. Details principal compensation for the applicable school year based on (1) the applicable salary schedule, (2) the sum of the salary received in 2016-17 and longevity pay for the 2016-17 school year, or (3) the salary received in 2016-17 if not eligible for longevity at that time. Defines six terms.

Provides that for 2026-27, starting on July 1, 2026, assistant principals are to receive a monthly salary based on the "A" teacher salary schedule plus 19%, with placement based on total years the assistant principal has spent as a certified employee. Requires assistant principals with certification based on academic preparation at the six-year degree level to be paid a salary supplement of $126 per month, and at the doctoral degree level to be paid a salary supplement of $253 per month. Provides for a 10-month stipend for participants in an approved full-time master's in-school administration program. Details limitations and required certification. Provides that in lieu of the amounts of annual longevity payments to assistant principals paid on the assistant principal salary schedule, beginning with the 2017-18 fiscal year, the amounts of those longevity payments are included in the monthly amounts provided to assistant principals pursuant to the act. Requires assistant principals paid under the salary schedule provided for 2026-27 to receive the greater amount of (1) the applicable amount on the salary schedule for the applicable year, (2) the salary the assistant principal received in the 2016-17 school year under Sections 9.1 or 9.2 of SL 2016-94 plus the longevity that would have been received, or (3) the salary received in 2016-17 if not eligible for longevity at that time.

Provides that for 2026-27, starting on July 1, 2026, increases the annual salaries of central office employees (superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers) whose salaries are supported by State fund by 9%. Sets monthly salary maximums for 2026-27 for those employees, ranging from $8,255 for School Administrator I to $11,031 to School Administrator VII, beginning July 1, 2026. Sets monthly salary maximums for 2026-27 for superintendents, ranging from $11,692 for Superintendent I to $14,760 to Superintendent V, beginning July 1, 2026. Requires the local board of education to determine the appropriate category and placement for the superintendent based on the average daily membership of the local school administrative unit and within funds appropriated by the General Assembly for central office administrators and superintendents. Provides a salary supplement of $126 for central office administrators and superintendents who have certification based on a six-year degree level. Provides a salary supplement of $253 per month to central office administrators and superintendents with certification based on a doctoral degree. Provides for longevity pay under the State Human Resources Act. Directs the State Board of Education (SBE) to prevent local school administrative units from transferring state funds from other funding categories to salaries for central office employees.

Provides that for 2026-27, starting on July 1, 2026, increases the annual salaries for noncertified public school employees whose salaries are supported from State funds as follows: (1) by 9% for permanent, full-time employees; (2) by equitable amount based on the 9% increase for permanent, full-time employees on a contract less than 12 months, part-time employees, and temporary/permanent hourly employees.

Requires that employees of schools operated by the Department of Health and Human Services (DHHS), the Department of Public Safety (DPS), the Department of Adult Correction (DAC), and SBE who are paid on the teacher salary schedule to be paid as authorized by the act for 2026-27.

Appropriates $939.8 million from the General Fund to DPI in recurring funds starting in 2026-27 for the compensation increases authorized above.

Part II.

Provides that for 2026-27, effective on July 1, 2026, increases the annual salaries for persons who are not one of the nine listed categories of employees exempted from the increase and whose (1) salary is set by Part III of the act under the SHRA and (2) who is employed in a State-funded position on June 30, 2026 by:

• 7% cost of living adjustment for State employees; and
• Any other salary adjustment otherwise allowed or provided by law.

Provides for prorated, equitable salary increases for eligible part-time employees. Specifies that no eligible State-funded employee will be prohibited from receiving the full salary increases solely because the employee's salary after applying the legislative salary increase is above the maximum of the salary range prescribed by the State Human Resources Commission.

Increases the Governor’s annual salary under GS 147-11 from $203,073 to $217,288. Provides for annual salaries for the members of the Council of State. Effective July 1, 2026.

Lists annual salaries for the eleven listed Executive Branch Members and the thirteen listed Judicial Branch Officials. Authorizes the district attorneys and public defenders to set salaries of assistant district attorneys and public defenders, as described, ranging from $58,175 to $108,390. Effective July 1, 2026.

Increases the compensation of the clerks of superior court in GS 7A-101, the assistant and deputy clerks of court in GS 7A-102, and full-time magistrates in GS 7A-171.1, effective July 1, 2026.

Provides that, starting on July 1, 2026, increases the annual salaries of the Legislative Services Officer and of nonelected employees of the General Assembly in effect on June 30, 2026, by 7%. Specifies that the act does not limit the provisions of GS 120-32. Increases the salaries of the General Assembly principal clerks under GS 120-37 and the Sergeants-at-arms and readings clerks under GS 120-37, effective July 1, 2026.

Directs the State Board of Community Colleges, starting on July 1, 2026,  to increase the annual salaries of community college faculty and non-faculty personnel by 7%. Sets minimum salaries for month, full-time curriculum community college faculty, effective July 1, 2026. Specifies that full-time faculty member cannot earn less than the minimum salary for the faculty member's education level. Provides for determination of minimum salary for part-time faculty members.

Directs the UNC Board of Governors, effective July 1, 2026, to provide SHRA and EHRA employees and teachers employed by the North Carolina School of Science and Mathematics with a 7% salary increase.

Effective July 1, 2026, requires correctional officers in the Department of Adult Correction (DAC) to be compensated at a specific pay rate on the basis of a salary schedule based on years of experience, based on the specified salary schedule. Also requires employees in the Department of Adult Correction, Division of Juvenile Justice and Delinquency Prevention, to be compensated at a specific pay rate based on years of experience; sets out the salary schedule to be used based on type of position. Sets out the annual salary schedule for correctional officers, based on experience and job class, ranging from $40,254 for correctional officers classified as COI with 0 years of experience to $57,863 for correctional officers classified as COIII with 6 or more years of experience. Allows raises equal to the amount of the across-the-board legislative salary increase under this Part for employees who would not receive a raise because their salary exceeds the scheduled salary level.

Sets an annual salary schedule, effective July 1, 2026, based on the officer's respective work experience and job classification, for law enforcement officers of the State Highway Patrol ranging from $58,850 for those with 0 years experience and $85,870 for those with 6 years or more of experience. Allows raises equal to the amount of the across-the-board legislative salary increase under this Part for employees who would not receive a raise because their salary exceeds the scheduled salary level.

Sets an annual salary schedule, effective July 1, 2026, based on the officer's respective work experience and job classification, for law enforcement officers of the State Bureau of Investigation and Alcohol Law Enforcement ranging from $57,220 for those with 0 years experience and $83,495 for those with 6 years or more of experience. Allows raises equal to the amount of the across-the-board legislative salary increase under this Part for employees who would not receive a raise because their salary exceeds the scheduled salary level.

Sets an annual salary schedule for probation and parole officers, based on experience, ranging from $48,602 for officers with 0 years of experience to $70,917 for officers with 6 years or more of experience. Requires Juvenile Court Counselors working in the Division of Juvenile Justice and Delinquency Prevention to also be paid on this salary schedule. Effective July 1, 2026. Allows raises equal to the amount of the across-the-board legislative salary increase under this Part for employees who would not receive a raise because their salary exceeds the scheduled salary level.

Legislatively increases the annual salaries for the following, effective July 1, 2026, for the following persons for salaries in effect on June 30, 2025: (1) permanent, full-time State officials and persons whose salaries are set in accordance with the State Human Resources Act; (2) permanent, full-time State officials and persons in positions exempt from the State Human Resources Act; (3) permanent, part-time State employees; and (4) temporary and permanent hourly State employees.

Requires the legislative salary increases to be paid effective on July 1, 2026, and specifies that they do not apply to persons separated from service due to resignation, dismissal, reduction in force, death, or retirement or whose last workday is before June 30, 2026. Gives the Director of the Budget flexibility in administering the compensation increases. Allows deeming the State employer contribution rates for retirement and related benefits to become effective, for administrative purposes, after July 1st to provide flexibility in the collection and reconciliation of salary-related contributions as required by law, so long as the estimated amount contributed to any affected employee benefit trust equals the amount that would have been contributed to the employee benefit trust if the enacted employer contribution rates had been effective on July 1st. Specifies that this applies to all employees paid from State funds.

Requires the Office of State Budget and Management (OSBM) to ensure the appropriations are being used appropriately. Specifies that funds appropriated for salaries and employee benefit increases cannot be used to adjust the budgeted salaries of vacant positions, to provide salary increases in excess of those required by the General Assembly, or to increase the budgeted salary of filled positions to the minimum of the positions salary range. Specifies that the funds appropriated for salaries and employee benefit increases in excess of the amounts required will be credited to the Pay Plan Reserve. Requires OSBM to report to the specified NCGA committee and division by May 1, 2027, on the expenditure of funds for legislatively mandated salary increases and employee benefits with four specified matters that must be addressed.

Appropriates $939.8 million from the General Fund in recurring funds for 2026-27 for the costs associated with implementing Part II of the act. Effective July 1, 2026.

Directs the State Human Resources Commission (SHRC) to adopt rules to implement enhanced sick leave benefits for State employees by January 1, 2027, that provide for the seven specified matters. Clarifies that the enhanced sick leave should not be construed to modify the treatment of sick leave for purposes of retirement credit under GS Chapter 135.

Part III.

Amends GS 135-5 (pertaining to benefits under TSERS), GS 135-65 (post-retirement increases under Consolidated Judicial Retirement System -CJRS), GS 120-4.22A (post-retirement increases under the Legislative Retirement System - LRS). GS 128-27 (benefits for members of the Local Government Employees Retirement System-LGERS) as follows. Effective July 1, 2026, provides for prorated 3% COLA increase for certain beneficiaries who retired after July 1, 2025, but before June 30, 2026, based on the number of months that a retirement allowance was paid between July 1, 2025, and June 30, 2026.

Appropriates $250 million from the General Fund to the Reserve for Retiree Cost-of-Living Adjustments in recurring funds for 2026-27 to implement Part III of the act.

Part IV.

Effective July 1, 2026.

Contains whereas clauses.

Adds GS 160D-707 requiring local governments to allow residential development by right at a density and intensity described in all areas and districts zoned for commercial use. Clarifies that GS 160D-707 does not: (1) apply to areas zoned for industrial use or (2) supersede or diminish any applicable building code, fire code, or other general public health and safety regulations or other building design elements generally applicable to residential development. Applies to permit applications submitted on or after July 1, 2027.

Prevents local governments subject to GS 160D-702 from requiring or establishing a minimum size, placement, configuration, allocation, location, or number of parking spaces in its zoning or other development regulations, except as required by the Americans with Disabilities Act or accompanying federal regulations (currently prevents local zoning regulations from requiring parking spaces to be larger than 9 feet wide by 20 feet long). Applies to ordinances and regulations enacted or amended on or after July 1, 2027.

Adds GS 122A-5.16, directing the NC Housing Finance Agency (Agency) to establish the Municipal Housing Approval Acceleration Program (Program) to reimburse eligible local governments up to 125% for eligible documented costs incurred to accelerate the review of residential development applications, as described.  Tasks the Agency with developing performance reimbursement limits and eligibility guidelines, as described. Provides for a standardized reporting form, application, and annual review. Limits the Agency’s use of funds appropriated to it for the Program only as provided in GS 122A-5.16. Requires the Agency to submit quarterly reports to the specified NCGA committee and division on the seven matters described. Effective July 1, 2027.

Enacts Article 9, “Preservation of Single-Family Homeownership” to GS Chapter 75, making it unlawful in new GS 75-148 for a corporate buyer to purchase, acquire, or otherwise obtain an ownership interest in a single-family home in this State if, upon consummation of the transaction, that corporate buyer would own, lease-purchase, control, or hold a beneficial interest in more than 25 single-family homes in this State that are used primarily for rental, speculative, or other non-owner-occupancy purposes. Specifies that for purposes of GS 75-148 homes owned or controlled by affiliates are aggregated. Makes violation of GS 75-148 an unfair or deceptive act or practice affecting commerce. Sets forth six definitions in GS 75-146. Contains six findings that underlie the Article’s purpose to protect the single-family housing market from excessive concentration, preserve meaningful opportunities for owner-occupancy, deter the  treatment of single-family homes as a large-scale commodity class, and promote the broad distribution of the benefits of homeownership among the people of North Carolina in GS 75-147.

Provides for five categories of exemptions to the Article 9 in new GS 75-149, as follows:

1. A single-family home acquired by devise, descent, or other inheritance.
2. A single-family home acquired by a lender, loan servicer, or governmental entity through foreclosure, including those measures of foreclosure described, provided the acquiring party does not retain the home for rental or speculative purposes longer than 24 months after acquisition.
3. A single-family home acquired, in whole or majority part, by a nonprofit organization, community land trust, or public housing-related entity for the purpose of affordable homeownership, transitional housing, community stabilization, or other public or charitable housing purpose.
4. A builder or developer acquiring, constructing, or holding a single-family home in the ordinary course of development for initial sale to an owner-occupant, and not for long-term rental portfolio purposes.
5. An individual acting in the individual's own name for personal, family, or household purposes.

Provides for enforcement by the Attorney General in GS 75-150, and specifies that the remedies under new Article 9 are cumulative and do not limit any other rights or remedies available to under law.

Effective October 1, 2026 and applies to acquisitions occurring on or after that date.

Adds GS 122A-5.107, directing the Agency to establish and administer the Workforce Housing Preconstruction Revolving Loan Program (Loan Program) for the purpose of making revolving loans for preconstruction costs for workforce housing projects before developers obtain permanent, private financing. Instructs the Agency to establish guidelines for project equity requirements for applicants between 20% and thirty-five percent 35% based on market conditions in the county where the project is located. Limits the Agency’s use of funds appropriated to the North Carolina Housing Trust Fund (Fund) for the Loan Program only as provided in GS 122A-5.17. Defines preconstruction costs and workforce housing. Requires the Loan Program to comply with the following: (1) a million-dollar cap on any issued loan; (2) to reserve 80% of the loans for projects in counties designated as development tier one and tier two areas in GS 143B-437.08; and (3) to reserve 20% of the loans for projects in counties designated as development tier three areas. Provides for determination of development tiers per fiscal year. Requires the Agency to submit an annual report to the specified NCGA committees and division on the Loan Program before February 15 of each year.

Appropriates $120 million from the General Fund to the Agency for 2026-27 as a directed grant to establish the Program. Instructs the State Controller to transfer $40 million for 2026-27 from funds available in the Economic Development Project Reserve to the Fund for the Loan Program.

Effective when it becomes law, except as otherwise provided.

Includes whereas clauses.

Increases the State minimum wage under GS 95-25.3 from $6.15 per hour to $15 per hour, adjusted automatically for inflation to reflect increases in the Consumer Price Index (CPI) with the first adjustment occurring effective January 1, 2027. Specifies that the adjustments are effective on January 1 each year. Provides for calculation of adjustment by the Commissioner of Labor, as described. Specifies that employers whose gross annual receipts for the preceding calendar year were less than $400,000 must pay the higher of $11 per hour or the minimum wage set forth above to the specified employees. Provides for adjustment for inflation. Places the burden on the employer to justify its continued eligibility for this wage rate. Authorizes local governments to adopt ordinances establishing a minimum wage within its jurisdiction that is higher than the State minimum wage. Establishes the NC Wage Board (Board) within the Department of Labor (DOL). Makes conforming changes to GS 95-25.3 and GS 95-25.1.

Enacts Article 6, “Short-Time Compensation,” to GS Chapter 96. Defines six terms. Requires employers wishing to participate in the short-time compensation program to submit a short-time plan to the Department of Commerce’s (DOC) Division of Employment Security (Division). Requires the Division to approve a short-time plan if it finds that the eleven listed criteria are met, including (1) that the normal weekly hours for individuals in the affected unit are reduced by at least 10% and by not more than 60%; (2) approval by any collective bargaining unit; (3) the plan applies to at least 10% of the employees in the affected unit; (4) the plan does not serve as a subsidy to seasonal employers during the off-season or as a subsidy to employers who traditionally use part-time employees; (5) the employer will continue to provide fringe-benefits if it is already doing so; and (6) the plan is in compliance with State and federal law. Specifies that a plan takes effect on its date of approval and expires at the end of the 12th full calendar month after its effective date. Allows the Division to revoke approval for good cause, including noncompliance with the submitted plan. Provides for individual eligibility for short-time compensation if the person complies with GS Chapter 96 and the Division finds (1) the individual is employed as a member of an affected unit in an approved plan that was approved before the week and is in effect for the week, (2) the individual is able to work and is available  for additional hours of work or for full-time work with the short-time employer, and (3) the normal weekly hours of work of the individual are reduced by at least 10% but not by more than 60%, with a corresponding reduction in wages. Specifies conditions under which the Division is prohibited from denying an individual short-time compensation benefits. Sets the weekly benefit as equal to the product of the individual's weekly benefit amount and the ratio of the number of normal weekly hours of work for which the employer would not compensate the individual to the individual's normal weekly hours of work. Specifies that the benefit amount, if not a multiple of $1, is rounded downward to the next lower multiple $1. Clarifies that an individual may not be paid benefits an amount that is more than the individual's maximum entitlement, and an individual may not be paid short-time compensation benefits in excess of that maximum. Specifies that an otherwise eligible individual cannot be disqualified from benefits for leaving employment instead of accepting a reduction in hours under an approved plan.  Specifies that seasonal, temporary, or intermittent (all defined) employees are not eligible for participation in the program.

Effective July 1, 2026, appropriates $150,000 to DOL from the General Fund for 2026-27 to implement the act.

Enacts Article 26A the “Plyler Educational Protections Act,” (Act) as part of GS Chapter 115C.  Specifies, in new GS 115C-386.1 that the Act’s purpose is to codify the right of every child to equal access to a free public education and a school that is safe from intimidation and  fear, consistent with the landmark U.S. Supreme Court decision in Plyler v. Doe, 457 U.S. 202  (1982), which held that it is unconstitutional for states to deny children a free public education based on immigration status in violation of the equal protection clause of the Fourteenth Amendment to the United States Constitution. Contains severability clause.

Defines four terms in new GS 115C-386.2 (definitions pertaining to new Article 26A). Prohibits, in GS 115C-386.3 a public school from taking any of the following actions based on the citizenship status of a student or their parent:

• Deny a student admission to or enrollment in a public school.
• Exclude a child from participating in or benefiting from an educational program or activity.
• Exclude a parent from participating in parent engagement activities or programs.
• Adopt any policies that, either on their face or in practice, differentiate between students based on citizenship status.

Requires public schools to make its best efforts to develop an alternative instruction plan if a student experiences disruptions to instruction because of immigration enforcement actions.

Adds GS 115C-386.4, pertaining to information privacy, which prevents public school units from making the described inquiries or disclosure pertaining to a student or parent’s citizenship status, place of birth, or national origin unless any of the four following circumstances apply: (1) the school is required to do so by State law, federal law, or pursuant to a warrant, subpoena, or judicial order; (2) when strictly necessary to administer an educational program; (3) in relation to an application for employment or condition for employment; or (4) when a parent has given written consent. Specifies that a public school may only provide accurate information to immigration authorities and cannot provide speculative information. Provides for the creation of public school immigration authority Action Response Plans, to instruct school staff on the proper course of action when immigration authorities request information from a school or request to enter school ground as described, in GS 115C-386.5. Prevents, in GS 115C-386.6, School Resource Officers (SRO’s) from (1) cooperating with immigration authorities in activity related to civil immigration enforcement, including detaining a student; (2) questioning any student about their immigration status; and (3) sharing any student’s information with immigration authorities, unless compelled to do so by judicial process, court order, or State or federal law.  Directs the Attorney General, in consultation with the Department of Public Instruction (DPI) to publish guidance and model policies for law enforcement agencies intended to limit, to the fullest extent possible consistent with State and federal law, immigration enforcement at public schools. Prevents retaliation and provides for enforcement for violations of the Article by a student, parent, or public school unit employee in GS 115C-386.

Applies beginning with the 2026-27 school year.

Appropriates $150,000 from the General Fund to the Department of Justice for 2026-27 to be used to develop the guidance and model policies. Effective July 1, 2026.

Contains whereas clauses.

Enacts new Article 6C, “Data Centers” to GS Chapter 62. Defines three terms. Requires a preconstruction disclosure statement from the owner or operator of a data center to the NC Utilities Commission (Commission), the Department of Environmental Quality (DEQ), and each local government that would have jurisdiction over the data center in new GS 62-129.1, covering the following five specified matters, each supported by clear and credible evidence:  

1. The projected peak electricity demand.
2. The projected annual electricity consumption.
3. The projected annual water consumption.
4. A detailed description of any cooling technologies to be used in the operation of the data center.
5. A detailed description of any on-site clean generation to be used in the operation of the data center.

Requires certification by the Commission for the operation of a large data center (a data center that (i) has a projected peak electricity demand of  megawatts or greater or (ii) has a projected annual water consumption in excess of one billion liters). Provides for an application. Allows the Commission to issue a certificate, after notice and a hearing, upon finding that the applicant is fit, capable, and financially able to operate the large data center in line with new Article 6C. Provides for six requirements that an applicant must establish in order to obtain a large data center certification, including compliance with clean generation and water use standards set forth in the act, that other members of the public will be held harmless and protected from bearing any increased costs as a result of providing electric, water, or sewer services to the large data center, and that the application will operate the large data center in line with any other requirement determined by the Commission to be necessary to protect the public interest.  Provides for certificate review, and adverse action against the certificate after notice and hearing for noncompliance with Article 6C.

Prevents, in GS 62-129.2, a person from operating a large data center without installing sufficient on-site clean generation capacity to offset at least 25% of the data center's projected peak electricity demand. Authorizes the Commission to increase the minimum percentage of on-site clean generation capacity that a large data center must maintain relative to its projected peak demand upon finding that additional on-site clean generation is necessary to maintain the reliability of the electric grid and protect other customers from rate increases and is otherwise consistent with the public interest. Provides for variances, as described.

Requires that each electric public utility file for Commission approval rates for the provision of electric service to large data centers in GS 62-129.3. Authorizes tiered rate schedules. Prevents the Commission from approving a rate schedule unless it makes that the rates are sufficiently designed to ensure: (1) that large data center customers are responsible for the entire cost of any capital investments or incremental operational expenses necessary and (2) that other retail customers are protected from incurring any rate increases or assuming additional described risks as a result of the large data center. Provides for special high-capacity electric rates for large data centers in GS 62-129.4. Excludes data centers from: (1) any infrastructure grants or other incentives funded directly or indirectly by utility ratepayers and (2) local government tax incentives, subsidies, or financial assistance in GS 62-129.5. Clarifies that GS 62-129.5 does not prohibit local governments from exercising zoning or land use authority. Requires each person who owns or operates a large data center to file an annual report to the Commission and DEQ on the matters specified in GS 62-129.6. Specifies that those reports are public records to be made available on the Commission's website.

Authorizes the Commission to adopt rules to implement Article 6C and for verifying the amount of generation capacity maintained by a large data center in accordance with the on-site clean generation requirement in GS 62-129.2.  Adds a $250 application fee for each large data center certificate application.

Directs that the schedule required to be submitted for approval by the Commission must be submitted by the electric public utility no later than July 1, 2028. Effective January 1, 2029, an electric public utility may not provide electric service to a large data center except under the terms of a rate schedule or special high-capacity rate approved by the Commission.

Adds new GS 143-355.5A (concerning water use standards for data centers), requiring DEQ to adopt rules establishing water use standards for data centers regulated under new Article 6C to ensure the protection of surface water and groundwater resources. Requires the water use standards adopted to mandate that data centers employ closed-loop or reclaimed water systems to the maximum extent practicable and to prohibit data centers from using an evaporative cool system. Requires DEQ to adopt temporary and permanent rules.

Effective January 1, 2027, applying to sales made on or after that date, repeals the following provisions: GS 105-164.3(47) (definition of datacenter), 105-164.3(79) (definition of eligible internet datacenter), 105-164.3(201) (definition of qualifying datacenter), 105-164.13(43a)b (computer software pertaining to datacenter exemptions)., 105-164.13(55) (sales tax exemption for described electric sales to datacenters), and 105-164.13(55a) (sales tax exemption for described electric sales to datacenters and datacenter support equipment).

Adds GS 143B-435.2, specifying that data centers as defined by GS 62-129 are ineligible to receive the incentives provided under Article 10 (pertaining to the Department of Commerce) of GS Chapter 143B. Excludes the operation of data centers from the definition of information and technology services in GS 143B-437.01 (industrial development fund utility account).

Makes the following changes to GS 62-133.2(d) (fuel and fuel-related charge adjustments for electric utilities). Directs the Commission to incorporate  in its cost of fuel and fuel-related costs determination under this subsection the experienced  over-recovery or under-recovery of reasonable costs of fuel and fuel-related costs prudently incurred during the test period, (was, costs prudently incurred by the electric public utility) based upon the prudent standards described, in fixing an increment or decrement rider.  Removes language directing that any experienced over-recovery or under-recovery of reasonable fuel and fuel-related costs prudently incurred accrues interest at the commercial paper rate as identified by the Federal Reserve for A2/P2 nonfinancial issuers, or reasonable successor thereto, on a weighted average basis over the applicable time period.

Makes the following changes to GS 62-133.16 (authorizing performance based regulations [PBR]). Requires a PBR application to include, at minimum, one affordability PIM (a performance incentive mechanism that links electric public utility revenue or earnings to measurable reductions in customer energy burdens, arrearages, disconnections, or other affordability outcomes) and one efficiency PIM (a performance incentive mechanism that links electric public utility revenue or earnings to measurable improvements in system efficiency or cost containment, as described). Requires the Commission to take affordability and efficiency PIMS, as described, into account in making a decision on a PBR application. Makes conforming, technical, and organizational changes.  Applies to any rate-making mechanisms filed by an electric public utility on or after the act becomes law.

Appropriates $240,000 from the General Fund to DEQ in recurring funds starting in 2026-27 to be used for the adoption and implementation of water use standards for data centers. Appropriates $500,000 from the General Fund to the Commission in recurring funds starting in 2026-27 to be used for purposes consistent with the act.

Effective July 1, 2026, except as otherwise provided.

Amends GS 105-164.4L by amending the definition of prepared food by excluding food sold without eating utensils by a retailer whose primary business is food manufacturing as classified in NAICS Sector 311, if the food is sold in a sealed, shelf-stable container that includes a "Nutrition Facts" panel as required by the federal Food, Drug and Cosmetic Act. Amends GS 105-164.13B to exempt those same items from sales tax. Effective October 1, 2026, and applies to sales made on or after that date.