North Carolina HB 638: Capitalize on Wetland Mitigation.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 638

Short Title: Equit. Escalation of Electricity Demand Act. (Public)
Sponsors: Representatives Loftis, Ward, Tyson, and Greene (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Energy and Public Utilities, if favorable, Finance, if favorable, Rules, Calendar,
and Operations of the House
April 2, 2025
*H638-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ASSIGN THE COST OF NEW DATA CENTERS, ELECTRIC VEHICLE 2
CHARGING STATIONS, AND ASSOCIATED ELECTRICITY DEMANDS TO THOSE 3
WHO BENEFIT DIRECTLY FROM THESE POWER SUPPLIES. 4
Whereas, Artificial Intelligence (AI) as commonly understood, is becoming 5
increasingly integrated into everyday life and across multiple sectors – if not every sector – of 6
the American economy; and 7
Whereas, AI is currently placing strains on current power grids and its demand is 8
expected to increase; and 9
Whereas, the Environmental Protection Agency's rules released in 2024 aim to 10
drastically increase the purchase and use of electric and plug-in hybrid electric vehicles; and 11
Whereas, electric grid operators project a rapid increase in American electricity 12
demand, up 4.7% between 2023 and 2028, caused by growth in data centers and electric vehicles; 13
and 14
Whereas, rapid growth of electricity demand without sufficient baseload generation 15
in place to meet the demand jeopardizes reliability and affordability and will cause interruptions 16
of service, often when needed most, during the hottest or coldest months; and 17
Whereas, 230 coal plants, which produced twenty percent (20%) of American 18
electricity in 2022, are being targeted for closure by activist groups, state and federal regulators, 19
and utilities, with dozens across the nation slated for closure in the next three years; and 20
Whereas, the North American Electric Reliability Corp. (NERC), and the Regional 21
Transmission Organizations (RTOs) have warned that large swathes of the United States face 22
elevated risks of electricity shortfalls now and in the future; and 23
Whereas, restricting the supply of electricity without immediate substitutes 24
jeopardizes reliability and affordability and will cause interruptions of service, often when 25
needed most, during the hottest or coldest months; and 26
Whereas, America's coal and natural gas plants should not be recklessly 27
decommissioned or regulated out of existence, they should be kept online (readily available) to 28
meet the projected rapid increase in electricity demand caused by new data centers and electric 29
vehicles; and 30
Whereas, the North Carolina Utilities Commission must prioritize retaining and 31
adding dispatchable, on-demand baseload power to meet the anticipated increase in demand; and 32

General Assembly Of North Carolina Session 2025
Page 2 House Bill 638-First Edition
Whereas, newly built data centers should be the first to have their power curtailed in 1
the event that new dispatchable power is not added to the grid and electricity blackouts or 2
brownouts occur; and 3
Whereas, those benefitting directly from new dispatchable power supplies, like EV 4
and PHEV users and data centers, should have to cover the cost of the additional demand they 5
are placing on the electric grid; Now, therefore, 6
The General Assembly of North Carolina enacts: 7
SECTION 1. Chapter 62 of the General Statutes is amended by adding a new Article 8
to read: 9
"Article 18. 10
"The Equitable Escalation of Electricity Demand Act. 11
"§ 62-360. Definitions. 12
As used in this Article, the following definitions apply: 13
(1) Commission. – Refers to the North Carolina Utilities Commission. 14
(2) Data center. – A physical location and/or facility that stores computing 15
machines and their related hardware equipment. 16
(3) Dispatchable. – A source of electricity that is readily available for use on 17
demand and can be dispatched upon request of a power grid operator, or one 18
that can have its power output adjusted according to market needs, except for 19
routine maintenance or repairs. 20
(4) Economic incentives. – State grants, cash grants, tax exemptions, tax refunds, 21
tax credits, State funds, and other State incentives administered by the State 22
or its political subdivisions. 23
(5) Electric generation facility. – A facility that uses water, coal, natural gas, or 24
nuclear fuel to generate reliable or dispatchable electricity for provision to 25
customers. 26
(6) Electric vehicle (EV). – A vehicle that uses electricity stored in a rechargeable 27
battery and an electric motor instead of a gasoline or other carbon-based fuel 28
tank and internal combustion engine. 29
(7) Firm power. – Includes dispatchable, reliable power generation, as well as 30
battery storage in excess of 24 hours. Firm power does not include power that 31
is not dispatchable. 32
(8) Plug-in hybrid electric vehicle (PHEV). – Any vehicle that uses a c