More than 1,000 days since the last state budget was approved, N.C. General Assembly leaders unveiled a new two-year spending plan on Tuesday morning. That gave rank-and-file lawmakers scant time to figure out what the document actually contained before voting on it over the next few days. Still, the $34 billion budget passed both chambers, and now goes to Gov. Josh Stein for his signature.
There’s a lot to unpack in S257, the 634-page budget bill, and the accompanying 716-page committee report, so we won't try to get into it now. Be on the lookout next week for a blog post on the Chapter website where we'll break it all down for you!
As legislators and staff were trying to wade through the massive budget documents, the House Finance Committee gutted H1213, Protect Taxpayers and Consumers, originally a Republican-sponsored bill to repeal the sales and use tax exemption for data centers. They replaced it with language to repeal the property tax exemption for solar energy electric systems placed in service on or after July 1, 2027. We’re closely monitoring this bill, which now sits with the House Energy and Public Utilities Committee.
The legislature also approved Governor Stein's two appointments to the N.C. Utilities Commission, the decision-making body on electric costs, energy fuel sources, and other regulations governing power and water utilities. Floyd McKissick Jr., a returning commissioner, and John Gajda, newly nominated by Stein this year, were serving in acting roles pending confirmation. Both have demonstrated a history of supporting clean, sustainable energy, and we hope they'll continue to do so – with encouragement from you!
Last but not least: Congratulations are in order for our friends at Catawba Riverkeeper and the entire coalition that worked with them to pass H162, Parking Lot Reform/Stormwater Control, which won final passage this week. We anticipate Governor Stein's signature soon!
A few other bills of interest advanced this week:
- S1001, Coastal Regulatory Reform, which we discussed last week, passed the full Senate and now sits in House Rules.
- S445, Regulatory Reform Act of 2026, has been sent to a conference committee consisting of four Republicans from each chamber to attempt to sort out their differences.
- The conference committee version of H1094, Ferry Division Audit, passed the House and is on Stein's desk.
Ahead of the holiday weekend, the legislature adjourned until the week of July 27, when we expect them to consider technical corrections to the budget and perhaps take up other matters. We’ll be on hiatus until they’re back.