A couple of very familiar bills got new names, numbers and vehicles for passage this week as the N.C. General Assembly operated amid the desperate and hurried air of a session drawing to a close.
We’re hearing the House and Senate may adjourn at the end of June with no budget in place. That's likely why the CWIP legislation – language that allows utilities to pass along "construction work in progress" costs to ratepayers – has popped up in a third bill.
The CWIP language originated in S261, Energy Security and Affordability Act, and then was fully embedded in the Senate's budget proposal. It also would let Duke Energy abandon the 2030 carbon emission-cutting target that was adopted with bipartisan support just a few years ago.
With budget talks at an apparent stalemate and S261 stalled in the House committee process, the legislation's supporters gutted a Helene recovery-focused bill that called for easing building code requirements after historic flooding events.
In a fine show of irony, S266 has been newly rechristened The Power Bill Reduction Act. Its complex text was provided to committee members for review the night before it was to be heard in the House Energy and Public Utilities Committee, and released to the public only shortly before the hearing began Wednesday.
In addition to the full provisions of S261, it also includes a number of problematic changes. They include codifying the authority for a public utility to securitize costs for retiring coal-fired power plants, which means ratepayers could be on the hook for those costs without a rate case before the N.C. Utilities Commission. On a motion from Rep. Carla Cunningham, D-Mecklenburg, the committee approved the S266 overhaul on a divided voice vote.
WE NEED YOU: We believe S266 will be called for a full House vote as early as Tuesday, June 10. We're gathering volunteers now to visit the Legislative Building in Raleigh on Tuesday to speak to key House members before the vote. Sign up to turn out! (You're welcome to register even if you're not sure you can make it.) Also, keep an eye out for texts, emails, phone calls, and our social media for more ways to take action.
Another bill we're tracking got a makeover. H402, the NC REINS Act, is now called "Limit Rules With Substantial Financial Costs." It caused a lively debate and mixed vote before approval by the Senate Regulatory Reform Committee. The bill requires Administrative Boards with rulemaking authority to provide a cost benefit analysis of each rule. But it's worded in such a way that the benefit must be to the entity governed by the rule, rather than to the citizens of the state. It also requires a supermajority or unanimous vote of the rulemaking body for approval.
The dollar amount threshold to trigger these analyses is made irrelevant by the way the cost benefit analysis would be structured. This would impact new rules and any rules up for renewal (which all rules must eventually face).
The bill is layered atop recent changes in how N.C. rulemaking bodies are appointed, giving the legislature's majority party still more control over the administrative branch. H402 now is back in the Senate Rules Committee awaiting a spot on the full Senate's calendar.
TAKE ACTION:
Ask your state rep to oppose CWIP: In addition to Tuesday's advocacy day against S266, we still have a live action alert opposing S261 and the CWIP/carbon target language in whatever legislation it appears. Even if you already used that form to message your House member, do it again, and ask your friends to do the same. It's critical that you personalize your message to note the new appearance of the CWIP language, and we've provided some new guidance on the action alert page to help.
Speak out against changes to CEPS: Also, be sure to use our action form to oppose a bill that would redefine the state's Clean Energy Portfolio Standard (CEPS) in a way that would completely undermine the standards' intent to encourage development of renewable wind and solar projects. Clean energy businesses have been a boon for North Carolina's economy AND our environment – let's keep our standards strong!