North Carolina SB 261: Energy Security and Affordability Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 261

Short Title: Energy Security and Affordability Act. (Public)
Sponsors: Senators Berger, P. Newton, and Barnes (Primary Sponsors).
Referred to: Agriculture, Energy, and Environment
March 11, 2025
*S261-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ELIMINATE THE INTERIM DATE FOR CARBON REDUCTION BY 2
CERTAIN ELECTRIC PUBLIC UTILITIES AND TO ALLOW AN ALTERNATIVE 3
COST RECOVERY MECHANISM FOR CONSTRUCTION WORK IN PROGRESS FOR 4
BASELOAD ELECTRIC GENERATING FACILITIES. 5
The General Assembly of North Carolina enacts: 6
SECTION 1.(a) G.S. 62-110.9 reads as rewritten: 7
"§ 62-110.9. Requirements concerning reductions in emissions of carbon dioxide from 8
electric public utilities. 9
The Utilities Commission shall take all reasonable steps to achieve a seventy percent (70%) 10
reduction in emissions of carbon dioxide (CO2) emitted in the State from electric generating 11
facilities owned or operated by electric public utilities from 2005 levels by the year 2030 and that 12
result in carbon neutrality by the year 2050. For purposes of this section, (i) "electric public 13
utility" means any electric public utility as defined in G.S. 62-3(23) serving at least 150,000 14
North Carolina retail jurisdictional customers as of January 1, 2021, and (ii) "carbon neutrality" 15
means for every ton of CO2 emitted in the State from electric generating facilities owned or 16
operated by or on behalf of electric public utilities, an equivalent amount of CO2 is reduced, 17
removed, prevented, or offset, provided that the offsets are verifiable and do not exceed five 18
percent (5%) of the authorized reduction goal. In achieving the authorized carbon reduction 19
goals, goal, the Utilities Commission shall: 20
(1) Develop a plan, no later than December 31, 2022, 2026, with the electric 21
public utilities, including stakeholder input, for the utilities to achieve the 22
authorized reduction goals, goal of carbon neutrality by the year 2050, which 23
may, at a minimum, consider power generation, transmission and distribution, 24
grid modernization, storage, energy efficiency measures, demand-side 25
management, and the latest technological breakthroughs to achieve the least 26
cost path consistent with this section to achieve compliance with the 27
authorized carbon reduction goals goal (the "Carbon Plan"). The Carbon Plan 28
shall be reviewed every two years and may be adjusted as necessary in the 29
determination of the Commission and the electric public utilities. 30
(2) Comply with current law and practice with respect to the least cost planning 31
for generation, pursuant to G.S. 62-2(a)(3a), in achieving the authorized 32
carbon reduction goals goal and determining generation and resource mix for 33
the future. Any new generation facilities or other resources selected by the 34
Commission in order to achieve the authorized reduction goals goal for 35

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 261-First Edition
electric public utilities shall be owned and recovered on a cost of service basis 1
by the applicable electric public utility except that: 2
a. Existing law shall apply with respect to energy efficiency measures 3
and demand-side management. 4
b. To the extent that new solar generation is selected by the Commission, 5
in adherence with least cost requirements, the solar generation selected 6
shall be subject to the following: (i) forty-five percent (45%) of the 7
total megawatts alternating current (MW AC) of any solar energy 8
facilities established pursuant to this section shall be supplied through 9
the execution of power purchase agreements with third parties 10
pursuant to which the electric public utility purchases solar energy, 11
capacity, and environmental and renewable attributes from solar 12
energy facilities owned and operated by third parties that are 80 MW 13
AC or less that commit to allow the procuring electric public utility 14
rights to dispatch, operate, and control the solicited solar energy 15
facilities in the same manner as the utility's own generating resources 16
and (ii) fifty-five percent (55%) of the total MW AC of any solar 17
energy facilities established pursuant to this section shall be supplied 18
from solar energy facilities that are utility-built or purchased by the 19
utility from third parties and owned and operated and recovered on a 20
cost of service basis by the soliciting electric public utility. These 21
ownership requirements shall be applicable to solar energy facilities 22
(i) paired with energy storage and (ii) procured in connection with any 23
voluntary customer program. 24
(3) Ensure any generation and resource changes maintain or improve upon the 25
adequacy and reliability of the existing grid. 26
(4) Retain discretion to determine optimal timing and generation and 27
resource-mix to achieve the least cost path to compliance with the authorized 28
carbon reduction goals, goal, inclu