North Carolina lawmakers finalize bill to scrap 2030 carbon reduction goal

North Carolina lawmakers finalize bill to scrap 2030 carbon reduction goal

Raleigh, North Carolina — North Carolina legislators passed a bill Thursday that would repeal an interim greenhouse gas reduction mandate established in a landmark 2021 law, while still directing regulators to aim to eliminate power plant carbon emissions in the state within the next 25 years.

With some bipartisan support, the state Senate voted to accept the House version that would repeal the 2021 law’s requirement that electric regulators take “all reasonable steps to achieve” a 70% reduction in carbon dioxide output from 2005 levels by 2030. The law’s directive to take similar steps to achieve a carbon neutrality standard by 2050 would remain in effect.

The bill’s Republican supporters argue that eliminating the interim goal benefits ratepayers who are asked to pay for future electric-production construction while also making Duke Energy, the state’s dominant electric utility, more efficient.

The bill now goes to Democratic Gov. Josh Stein, who can either veto it, sign it, or allow it to become law without his signature. Stein previously expressed concerns about the Senate version of the bill, fearing that it would harm electricity users and jeopardize the state’s clean-energy economy. His office did not immediately respond to Thursday’s vote.

With over a dozen House and Senate Democrats voting for the final version, the chances of any Stein veto being overridden increase. Republicans in charge of the General Assembly are just one House seat away from a veto-proof majority.

The bill also includes language that would allow Duke Energy to seek higher electric rates to cover financing costs for building nuclear or gas-powered plants incrementally, rather than waiting until the project is completed.

The 2021 greenhouse gas law represented a rare agreement on environmental issues between then-Democratic Governor Roy Cooper and Republican lawmakers.

According to the Natural Resources Defense Council, at least 17 other states, the majority of which are Democrat-controlled, have laws requiring net-zero power plant emissions or 100% renewable energy targets. North Carolina and Virginia are the only ones from the southeast.

The legislation was introduced as President Donald Trump’s administration proposed rolling back federal environmental and climate change policies, which critics say could increase pollution and endanger human health. Republicans are promoting them as a way to lower living costs and stimulate the economy.

The state Utilities Commission, which regulates public utility rates and services, has already pushed the 2030 deadline back by at least four years, as allowed by the 2021 law. Last year, the panel acknowledged that meeting the reduction standard by 2030 was “no longer reasonable or executable” for Duke Energy.

Bill supporters argue that meeting the goal would necessitate the immediate use of expensive alternative energy sources. If the interim standard is removed, the GOP bill authors argue, Duke Energy will be able to build less expensive power sources and moderate electricity rate increases to meet the 2050 standard.

“Our residents shouldn’t be saddled with higher power bills to satisfy arbitrary targets,” Republican Senate leader Phil Berger said in a press release following the vote.

Citing an analysis conducted by a state agency that represents consumers before the commission, GOP lawmakers claim that eliminating the interim goal would save Duke Energy at least $13 billion in spending — and passing it on to customers — over the next 25 years.

Bill opponents question the savings figure, citing uncertainties in plant fuel prices, energy demand, and construction costs. They say the interim goal remains aspirational and is something Duke Energy agreed to meet in 2021.

Provisions in the measure aimed at recouping plant construction costs over time would reduce accumulated borrowing interest.

Environmentalists argue that the financing option would benefit Duke Energy’s bottom line on costly projects even if they were never completed, and that the bill would generally prevent cleaner energy sources from coming online sooner. They also argue that another bill section would shift costs to residential customers.

“This bill is bad for all North Carolinians, whether they’re Duke Energy customers or simply people who want to breathe clean air,” North Carolina Sierra Club director Chris Herndon said after the vote, urging Stein to veto it.

In addition to Duke Energy, the North Carolina Chamber of Commerce and a manufacturers’ association backed the bill.

“We appreciate bipartisan efforts by policymakers to keep costs as low as possible for customers and enable the always-on energy resources our communities need,” the business announced this past week.

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