The North Carolina legislature gave final approval to the Power Bill Reduction Act on Thursday, June 19, a bill that would eliminate the state’s statutory goal to cut carbon emissions by 70% by 2030.
Senate Bill 266 passed the Senate in a 29-11 vote and now heads to the governor’s desk after the chamber voted to concur with House changes. Supporters say the policy change could save North Carolinians up to $15 billion in future utility costs and will help meet skyrocketing power demand.
“The House has returned to us the Power Bill Reduction Act in Senate Bill 266. Section one of both bills is the same. It eliminates the interim date for carbon reduction. But it also maintains the 2050 goal,” explained Sen. Tim Moffitt, R-Henderson.
The bill maintains the long-term goal to reduce 100% of carbon emissions from 2005 levels by 2050. However, it removes the requirement that utilities hit an interim 2030 milestone. Utilities like Duke Energy must still file long-range carbon plans with the Utilities Commission, but the focus now shifts to the longer-term goal of net-zero emissions.
“If our state wants to remain competitive globally, we need to take steps now to keep our energy sources reliable and least-cost,” Moffitt said in a press release. “By taking these proactive steps, our residents and job creators can confidently build a future here knowing that blackouts and astronomical bills won’t plague North Carolina.”
The move to repeal the 2030 goal gives more flexibility in North Carolina’s energy make-up, enabling the use of natural gas, nuclear, and emerging technologies alongside renewables, without being restricted by what many believe are politically driven deadlines.
“Our residents shouldn’t be saddled with higher power bills to satisfy arbitrary targets,” Senate Leader Phil Berger, R-Rockingham, said. “Senate Bill 266 ensures that North Carolina will have reliable energy at competitive prices to serve our citizens and businesses. Gov. Stein must sign this bill immediately.”
Beyond eliminating the interim 2030 carbon reduction deadline, the bill makes other regulatory changes. CWIP would be permitted only if the NCUC determines it would create overall cost savings to customers over the facility’s lifetime. It would also require annual reviews of any facility using CWIP to ensure accountability and cost-effectiveness.
The legislation also implements a new financing mechanism to help reduce the construction costs of new facilities by about 5%.
SEE ALSO: NC House votes to repeal 2030 carbon mandate promising $15B in savings
“By repealing the interim 70% carbon reduction mandate by 2030, this legislation removes a key pressure point that would have shoehorned nondispatchable resources like wind and solar onto North Carolina’s grid — regardless of cost or reliability,” Donald Bryson, CEO of the John Locke Foundation, recently said of the bill. “This is a smart, bipartisan step that gives the Utilities Commission more flexibility to pursue a balanced energy mix that keeps power affordable and dependable for ratepayers and businesses alike.”
The bill’s passage comes as North Carolina continues its pivot toward a cleaner energy economy while grappling with the cost of grid modernization and plant retirements. Stein has not publicly indicated whether he will sign the bill.