Now the latest on some of the more interesting energy bills we’re following: - HB 1198 – Data Center Transparency Act (Loftis, Ward, Harrison) would establish a two-year moratorium on data center siting permits, require a comprehensive study of data center impacts, and mandate annual reporting on the state revenue implications of tax exemptions.
- HB 1192 – Energy and Housing Affordability Act (Scheitzelt, Moss, Parè) would require electric utilities to share fuel costs with customers, rather than passing those costs through entirely. Right now, when the cost of natural gas goes up, Duke Energy is able to pass 100% of that increase on to customers.
- SB 957 – Portable-Scale Solar Energy Devices (Moffitt, Lazzara, Mayfield) would authorize the use of portable-scale solar generation, potentially expanding access to distributed clean energy.
- H.B. 1213 – Protect Taxpayers and Consumers (Loftis, Ward, Harrison) - would repeal sales tax exemptions for data centers.
- S.B. 1019 – Grid Utilization (Brinson, Barnes, Salvador) would direct electric public utilities to submit a grid utilization report to the Utilities Commission as part of the biennial integrated resource plan.
Senator Jarvis has introduced SB 1046 – A.I. in Environmental Permitting, which would direct the Department of Environmental Quality and the Environmental Management Commission to jointly develop a phased-in permitting program incorporating artificial intelligence, while maintaining staff oversight. The proposal outlines a multi-phase rollout beginning with post-construction stormwater permits, followed by air permits, erosion and sedimentation control, and additional permitting programs.
Land use authority remains a point of tension between state and local governments. A 2024 law effectively blocked most local-government–initiated downzoning by requiring written consent from all affected property owners,making it harder for cities to restrict data centers and other development. This biennium, more than 50 local bills have been introduced seeking to restore that authority, though none have advanced. SB 587 – Clarify Nonconforming Uses (Lazzara, Sawrey), which passed the Senate unanimously last year and is now pending in the House, includes provisions that would partially restore local flexibility.
Water rights disputes are also taking center stage. A failed provision in SB 214 – Various Local Provisions VII, would have allowed Franklin County to condemn land in neighboring jurisdictions to secure additional water supply for growth. In response, communities are now introducing legislation to pause water transfers and interbasin transfers pending further study, citing concerns about downstream impacts.
On the budget front, negotiations between the House and Senate remain at an impasse. While the continuation budget keeps current spending levels in place, both chambers have proposed additional funding for teachers and state employees. The primary sticking point remains a proposed 0.5% income tax reduction—estimated at roughly $2 billion in foregone revenue.
Lisa Hazirjian
Legislative & Political Director | NC Chapter
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