GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
S D
SENATE DRS65599-LDx-158F (04/18)
|
Short Title: Energy Independence Act. |
(Public) |
|
|
Sponsors: |
Senators Albertson, Jenkins, Cowell, and Kinnaird. |
|
|
Referred to: |
|
|
A BILL TO BE ENTITLED
AN ACT to increase energy independence in north carolina by promoting the conservation of energy and water in public facilities, by promoting the use of alternative fuels and advanced technology vehicles in state FLEETs, by creating various energy-related tax incentives, and to appropriate funds.
The General Assembly of North Carolina enacts:
PART I. ENERGY CONSERVATION IN STATE AND LOCAL GOVERNMENT FACILITIES; USE OF ALTERNATIVE FUELS IN STATE MOTOR FLEETS
CLARIFY THAT GUARANTEED ENERGY SAVINGS CONTRACTS INCLUDE CONSERVATION MEASURES FOR WATER AND OTHER UTILITIES, RAISE THE CAP FOR, AND EXTEND THE TERM OF, GUARANTEED ENERGY SAVINGS CONTRACTS, EXPAND THE STATE'S ENERGY POLICY AND LIFE-CYCLE COST ANALYSIS TO INCLUDE THE CONSERVATION OF WATER AND OTHER UTILITIES, AND MAKE CONFORMING CHANGES
SECTION 1.1. The title of Article 3B of
Chapter 143 of the General Statutes reads as rewritten: "Energy Conservation
of Energy, Water, and Other Utilities in Public Government Facilities."
SECTION 1.2. G.S. 143-64.17 reads as rewritten:
"§ 143-64.17. Definitions.
As used in this Part:
(1) "Energy conservation measure" means a facility alteration, training, or services related to the operation of the facility, when the alteration, training, or services provide anticipated energy savings. Energy conservation measure includes any of the following:
a. Insulation of the building structure and systems within the building.
b. Storm windows or doors, caulking, weatherstripping, multiglazed windows or doors, heat-absorbing or heat-reflective glazed or coated window or door systems, additional glazing, reductions in glass area, or other window or door system modifications that reduce energy consumption.
c. Automatic energy control systems.
d. Heating, ventilating, or air-conditioning system modifications or replacements.
e. Replacement or modification of lighting fixtures to increase the energy efficiency of a lighting system without increasing the overall illumination of a facility, unless an increase in illumination is necessary to conform to the applicable State or local building code or is required by the light system after the proposed modifications are made.
f. Energy recovery systems.
g. Cogeneration systems that produce steam or forms of energy such as heat, as well as electricity, for use primarily within a building or complex of buildings.
h. Other
energy conservation measures.
i. Faucets with automatic or metered shut-off valves, leak detection equipment, water recycling equipment, and wastewater recovery systems.
j. Other energy conservation measures that conserve energy, water, or other utilities.
(2) "Energy
savings" means a measured reduction in fuel costs, energy costs, water
costs, stormwater fees, other utility costs, or operating costs costs,
including environmental discharge fees and water and sewer maintenance fees, created
from the implementation of one or more energy conservation measures when
compared with an established baseline of previous fuel costs, energy costs,
or operating costssuch costs developed by the governmental unit.
(2a) "Governmental unit" means either a local governmental unit or a State governmental unit.
(3) "Guaranteed energy savings contract" means a contract for the evaluation, recommendation, or implementation of energy conservation measures, including the design and installation of equipment or the repair or replacement of existing equipment, in which all payments, except obligations on termination of the contract before its expiration, are to be made over time, and in which energy savings are guaranteed to exceed costs.
(4) "Local governmental unit" means any board or governing body of a political subdivision of the State, including any board of a community college, any school board, or an agency, commission, or authority of a political subdivision of the State.
(5) "Qualified provider" means a person or business experienced in the design, implementation, and installation of energy conservation measures.
(6) "Request for proposals" means a negotiated procurement initiated by a governmental unit by way of a published notice that includes the following:
a. The name and address of the governmental unit.
b. The name, address, title, and telephone number of a contact person in the governmental unit.
c. Notice indicating that the governmental unit is requesting qualified providers to propose energy conservation measures through a guaranteed energy savings contract.
d. The date, time, and place where proposals must be received.
e. The evaluation criteria for assessing the proposals.
f. A statement reserving the right of the governmental unit to reject any or all the proposals.
g. Any other stipulations and clarifications the governmental unit may require.
(7) "State governmental unit" means the State or a department, an agency, a board, or a commission of the State, including the Board of Governors of The University of North Carolina and its constituent institutions."
SECTION 1.3. G.S. 143-64.17B(a) reads as rewritten:
"(a) A governmental unit may enter into a guaranteed energy savings contract with a qualified provider if all of the following apply:
(1) The term of the
contract does not exceed 12 20 years from the date of the
installation and acceptance by the governmental unit of the energy conservation
measures provided for under the contract.
(2) The governmental unit finds that the energy savings resulting from the performance of the contract will equal or exceed the total cost of the contract.
(3) The energy conservation measures to be installed under the contract are for an existing building."
SECTION 1.4. G.S. 143-64.17G reads as rewritten:
"§
143-64.17G. Report on guaranteed energy savings contracts.contracts
entered into by local governmental units.
SECTION 1.5. G.S. 143-64.17H reads as rewritten:
"§ 143-64.17H.
Guaranteed Report on guaranteed energy savings contract
reporting requirements.contracts entered into by State governmental
units.
A State governmental unit that enters into a guaranteed energy savings contract must report the contract and the terms of the contract to the State Energy Office of the Department of Administration within 30 days of the date the contract is entered into. In addition, within 60 days after each annual anniversary date of a guaranteed energy savings contract, the State governmental unit must report the status of the contract to the State Energy Office, including any details required by the State Energy Office. The State Energy Office shall compile the information for each fiscal year and report it to the Joint Legislative Commission on Governmental Operations and to the Local Government Commission annually by December 1. In compiling the information, the State Energy Office shall include information on the energy savings expected to be realized from a contract and shall evaluate whether expected savings have in fact been realized."
SECTION 1.6. G.S. 142-63 reads as rewritten:
"§ 142-63. Authorization of financing contract.
Subject to the terms and conditions set forth in this
Article, a State governmental unit that has solicited a guaranteed energy
conservation measure pursuant to G.S. 143-64.17A or G.S. 143-64.17B
or the State Treasurer, as designated by the Council of State, is authorized to
execute and deliver, for and on behalf of the State of North Carolina, a
financing contract to finance the costs of the energy conservation measure. The
aggregate principal amount payable by the State under financing contracts
entered pursuant to this Article shall not exceed fifty million dollars
($50,000,000) one hundred million dollars ($100,000,000) at any one
time."
SECTION 1.7. G.S. 142-64(b)(2) reads as rewritten:
"(2) The Council of State has approved the execution and delivery of the financing contract by resolution that sets forth all of the following:
a. The not-to-exceed
term or final maturity of the financing contract, which shall be no later than 12
years from the date the financing contract is entered.20 years from the
date of acceptance of the project.
b. The not-to-exceed interest rate or rates (or the equivalent thereof), which may be fixed or vary over a period of time, with respect to the financing contract.
c. The appropriate officers of the State to execute and deliver the financing contract and all other documentation relating to it."
SECTION 1.8. G.S. 143-64.10 reads as rewritten:
"§ 143-64.10. Findings; policy.
(a) The General Assembly hereby
finds:finds all of the following:
(1) That the State shall
take a leadership role in aggressively undertaking energy the
conservation of energy, water, and other utilities in North Carolina;Carolina.
(2) That State facilities
have a significant impact on the State's consumption of energy;energy,
water, and other utilities.
(3) That energy
conservation practices to conserve energy, water, and other utilities
that are adopted for the design, construction, operation, maintenance, and
renovation of these facilities and for the purchase, operation, and maintenance
of equipment for these facilities will have a beneficial effect on the State's
overall supply of energy;energy, water, and other utilities.
(4) That the cost of the energy
energy, water, and other utilities consumed by these facilities and
the equipment for these facilities over the life of the facilities shall be
considered, in addition to the initial cost;cost.
(5) That the cost of energy
energy, water, and other utilities is significant and facility designs
shall take into consideration the total life-cycle cost, including the initial
construction cost, and the cost, over the economic life of the facility, of the
energy energy, water, and other utilities consumed, and of
operation and maintenance of the facility as it affects energy consumption;
and the consumption of energy, water, or other utilities.
(6) That State government
shall undertake a program to reduce energy the use of energy,
water, and other utilities in State facilities and equipment in those
facilities in order to provide its citizens with an example of energy-useenergy-use,
water-use, and utility-use efficiency.
(b) It is the policy of
the State of North Carolina to ensure that energy conservation practices
to conserve energy, water, and other utilities are employed in the
design, construction, operation, maintenance, and renovation of State
facilities and in the purchase, operation, and maintenance of equipment for
State facilities."
SECTION 1.9. G.S. 143-64.11(2) reads as rewritten:
"(2) "Energy-consumption
analysis" means the evaluation of all energy- consuming systemssystems,
including systems that consume water or other utilities, and components of
these systems by demand and type of energy,energy or other
utility use, including the internal energy load imposed on a facility by
its occupants, equipment and components, and the external energy load imposed
on the facility by climatic conditions."
SECTION 1.10. G.S. 143-64.11(2b) reads as rewritten:
"(2b) "Energy-consuming system" includes but is not limited to any of the following equipment or measures:
a. Equipment used to heat, cool, or ventilate the facility;
b. Equipment used to heat water in the facility;
c. Lighting systems;
d. On-site equipment used to generate electricity for the facility;
e. On-site equipment that uses the sun, wind, oil, natural gas, liquid propane gas, coal, or electricity as a power source; and
f.
Energy conservation measures measures, as defined in G.S. 143-64.17,
in the facility design and construction that decrease the energy energy,
water, or other utility requirements of the facility."
SECTION 1.11. G.S. 143-64.11(3) reads as rewritten:
"(3) "Facility"
means a building or a group of buildings served by a central energy distribution
system for energy, water, or other utility or components of a central energy
distribution system."
SECTION 1.12. G.S. 143-64.12 reads as rewritten:
"§ 143-64.12. Authority and duties of State agencies.
(a) The General Assembly
authorizes and directs that State agencies shall carry out the construction and
renovation of State facilities, under their jurisdiction in such a manner as to
further the policy declared herein, ensuring the use of life-cycle cost
analyses and energy-conservation practices.practices to conserve
energy, water, and other utilities.
(b) The Department of
Administration shall develop and implement policies, procedures, and standards
to ensure that State purchasing practices improve energy efficiency
regarding energy, water, and other utility use and take the cost of the
product over the economic life of the product into consideration. The
Department of Administration shall adopt and implement Building Energy Design Guidelines.
These guidelines shall include energy-use goals and standards, economic
assumptions for life-cycle cost analysis, and other criteria on building
systems and technologies. The Department of Administration shall modify the
design criteria for construction and renovation of facilities to require that a
life-cycle cost analysis be conducted pursuant to G.S. 143-64.15. The
Department of Administration, as part of the Facilities Condition and
Assessment Program, shall identify and recommend energy conservation
maintenance and operating procedures that are designed to reduce energy
consumption within the facility and that require no significant expenditure of
funds. State departments, institutions, or agencies shall implement these
recommendations. Where energy management equipment is proposed for State
facilities, the maximum interchangeability and compatibility of equipment
components shall be required.
The Department of Administration shall develop a
comprehensive energy management program to manage energy, water, and
other utility use for State government. Each State agency shall develop and
implement an energy a management plan that is consistent with the
State's comprehensive energy management program.program to manage
energy, water, and other utility use.
(c) through (g) Repealed by Session Laws 1993, c. 334, s. 4."
SECTION 1.13. G.S. 143-64.15 reads as rewritten:
"§ 143-64.15. Life-cycle cost analysis.
(a) A life-cycle cost analysis shall include, but not be limited to, all of the following elements:
(1) The coordination,
orientation, and positioning of the facility on its physical site;site.
(2) The amount and type of
fenestration employed in the facility;facility.
(3) Thermal
characteristics of materials and the amount of insulation incorporated into the
facility design;design.
(4) The variable occupancy
and operating conditions of the facility, including illumination levels; andlevels.
(5) Architectural features
which that affect energy consumption.the consumption of
energy, water, and other utilities.
(b) The life-cycle cost analysis performed for any State facility shall, in addition to the requirements set forth in subsection (a) of this section, include, but not be limited to, all of the following:
(1) An energy-consumption
analysis of the facility's energy-consuming systems in accordance with the
provisions of subsection (g) of this section;section.
(2) The initial estimated
cost of each energy-consuming system being compared and evaluated;evaluated.
(3) The estimated annual
operating cost of all utility requirements;requirements.
(4) The estimated annual
cost of maintaining each energy-consuming system; andsystem.
(5) The average estimated replacement cost for each system expressed in annual terms for the economic life of the facility.
(c) The General
Assembly requires eachEach entity to shall conduct a
life-cycle cost analysis pursuant to this section for the construction or the
renovation of any State facility or State-assisted facility of 20,000 or more
gross square feet. For the replacement of heating, ventilation, and air
conditioning equipment in any State facility or State-assisted facility of 20,000
or more gross square feet, the entity shall conduct a life-cycle cost analysis
of the replacement equipment pursuant to this section when the replacement is
financed under a guaranteed energy savings contract or financed using repair
and renovation funds.
(d) The life-cycle cost analysis shall be certified by a registered professional engineer or bear the seal of a North Carolina registered architect, or both. The engineer or architect shall be particularly qualified by training and experience for the type of work involved, but shall not be employed directly or indirectly by a fuel provider, utility company, or group supported by fuel providers or utility funds. Plans and specifications for facilities involving public funds shall be designed in conformance with the provisions of G.S. 133-1.1.
(e) In order to protect
the integrity of historic buildings, no provision of this Article shall be
interpreted to require the implementation of energy-cost measures to
conserve energy, water, or other utility use that conflict with respect to
any property eligible for, nominated to, or entered on the National Register of
Historic Places, pursuant to the National Historic Preservation Act of 1966,
P.L. 89-665; any historic building located within an historic district as
provided in Chapters 160A or 153A of the General Statutes; any historic
building listed, owned, or under the jurisdiction of an historic properties
commission as provided in Chapter 160A or 153A; nor any historic property owned
by the State or assisted by the State.
(f) Each State agency shall use the life-cycle cost analysis over the economic life of the facility in selecting the optimum system or combination of systems to be incorporated into the design of the facility.
(g) The energy-consumption
analysis of the operation of energy-consuming systems utilities in a facility
shall include, but not be limited to:to, all of the following:
(1) The comparison of two
or more system alternatives;alternatives.
(2) The simulation or
engineering evaluation of each system over the entire range of operation of the
facility for a year's operating period; andperiod.
(3) The engineering
evaluation of the energy consumption of energy, water, and other
utilities of component equipment in each system considering the operation
of such components at other than full or rated outputs."
ESTABLISH GOALS FOR THE USE OF ALTERNATIVE FUELS AND ADVANCED TECHNOLOGY VEHICLES FOR STATE-OWNED VEHICLES
SECTION 1.14. Article 3 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143-58.6. Alternative fuel use credits program.
(a) Goal. - The State fleet shall accrue a total of 2,000,000 alternative fuel use credits during each calendar year 2006 and 2007. The State fleet shall accrue a total of 5,000,000 alternative fuel use credits during each calendar year 2008 and 2009. The State fleet shall accrue a total of 10,000,000 alternative fuel use credits during the calendar year 2010 and each calendar year thereafter.
(b) Planning. - The State Energy Office, the Division of Motor Fleet Management of the Department of Administration, the Department of Transportation, and representatives of each State department, institution, and agency that has a State fleet shall meet annually to develop a plan for meeting the alternative fuel use credit requirements under subsection (a) of this section. The State Energy Office shall set the dates of these annual meetings.
(c) Report. - No later than March 1 of each year, the State Energy Office shall submit an annual status report to the General Assembly covering participation in and compliance with the goals under subsection (a) of this section by each State department, institution, and agency.
(d) Monitoring. - In 2010, the General Assembly shall examine the program under this section for cost and effectiveness. At such time that the State Energy Office determines by rule that the prices of alternative fuels exceed the cost of gasoline and diesel fuel to a degree that renders the program under this section impracticable and unreasonable, the requirements of this section shall be suspended until such time that the State Energy Office determines by rule that the prices of alternative fuels no longer render the program impracticable and unreasonable.
(e) Formulas for Calculating Credits. - Alternative fuel use credits are calculated as follows:
(1) Subject to subdivision (2) of this subsection, one alternative fuel credit accrues for each one gallon of one hundred percent (100%) alternative fuel utilized by a State fleet vehicle. When alternative fuel is blended with petroleum-based fuel, the alternative fuel credit accrues for each one gallon of alternative fuel utilized by a State vehicle at a rate that is based on the percentage of alternative fuel that is utilized by a State fleet vehicle. (For example, one alternative fuel use credit accrues for every five gallons of B20 that is utilized by a State fleet vehicle.)
(2) One and one-half alternative fuel credits accrue for each one gallon of alternative fuel produced in North Carolina that is utilized by a State fleet vehicle.
(3) Six thousand alternative fuel credits accrue for each advanced technology vehicle that is purchased for a State fleet.
(f) The Department of Administration may adopt rules necessary to implement the program under this section.
(g) Definitions. - The following definitions apply to this section:
(1) 'Alternative fuel' means any of the following:
a. Biodiesel (B100).
b. B20, which is a blend of twenty percent (20%) biodiesel with eighty percent (80%) petroleum diesel fuel.
c. Ethanol (E100).
d. E10, which is a blend of ten percent (10%) ethanol with ninety percent (90%) unleaded gasoline.
e. E85, which is a blend of eighty-five percent (85%) ethanol with fifteen percent (15%) gasoline.
f. Compressed natural gas.
g. Propane.
h. Hydrogen.
(2) 'Advanced technology vehicle' means:
a. A hybrid electric vehicle operating on gasoline or another alternative fuel that has an emissions certification level of Ultra Low Emission Vehicle (ULEV) or greater.
b. A low-speed electric vehicle that replaces a gasoline-powered vehicle and that is legal to operate on streets rated for vehicular traffic less than 30 MPH.
(3) 'State fleet' means those motor vehicles that are operated by a State department, institution, or agency that purchases fuel for these vehicles under a State purchasing contract."
SECTION 1.15. Article 2 of Chapter 136 of the General Statutes is amended by adding a new section to read:
"§ 136-28.143. Participation in alternative fuel use credits program.
The Department of Transportation shall participate in the alternative fuel use credits program under G.S. 143-58.4. The Department of Transportation may adopt rules to implement this section."
SECTION 1.16. G.S. 143-341(8)i. reads as rewritten:
"i. To establish and operate a central motor pool and such subsidiary related facilities as the Secretary may deem necessary, and to that end:
1. To establish and operate central facilities for the maintenance, repair, and storage of state-owned passenger motor vehicles for the use of State agencies; to utilize any available State facilities for that purpose; and to establish such subsidiary facilities as the Secretary may deem necessary.
2. To acquire passenger motor vehicles by transfer from other State agencies and by purchase. All motor vehicles transferred to or purchased by the Department shall become part of a central motor pool.
3. To participate in the alternative fuel use credits program under G.S. 143-58.4."
REDUCE AND DISPLACE PETROLEUM PRODUCTS IN STATE-OWNED VEHICLE FLEETS
SECTION 1.17. Article 3B of Chapter 143 of the General Statutes is amended by adding a new Part to read:
"Part 3. Reduction and Displacement of Petroleum Product Dependence.
"§ 143-64.18. State Motor Fleet to reduce dependence on petroleum products.
(a) All State agencies, universities, and community colleges that have State-owned vehicle fleets shall develop and implement plans to improve the State's use of alternative fuels, synthetic lubricants, and efficient vehicles. The plans shall achieve a twenty percent (20%) reduction or displacement of the current petroleum products consumed by January 1, 2010. Before implementation of any plan, all affected agencies shall report their plan to the Department of Administration. The Department of Administration shall compile a report on the plans submitted and report to the Joint Legislative Commission on Governmental Operations. Agencies shall implement their plans by January 1, 2006. Reductions may be met by petroleum or oils displaced through the use of biodiesel, ethanol, synthetic oils or lubricants, other alternative fuels, the use of hybrid electric vehicles, other fuel-efficient or low-emission vehicles, or additional methods as may be approved by the State Energy Office, thereby reducing the amount of harmful emissions. The plan shall not impede mission fulfillment of the agency and shall specifically address a long-term cost-benefit analysis, allowances for changes in vehicle usage, total miles driven, and exceptions due to technology, budgetary limitations, and emergencies.
(b) For the purposes of this section, a State-owned vehicle fleet consists of more than 10 motor vehicles, as defined by G.S. 20-4.01, that are designed for highway use and titled to one of the aforementioned entities. Specialty vehicles, as defined by G.S. 20-4.01, that are used for educational purposes and vehicles exempted under U.S. Executive Order 13149 are subject to ten percent (10%) reductions.
(c) Agencies shall report by September 1, 2006, and annually thereafter on September 1, to the Department of Administration on the efforts undertaken to achieve the reductions. The Department of Administration shall compile and forward a report to the Joint Legislative Commission on Governmental Operations by November 1, 2006, and annually thereafter on November 1, on the agencies' progress in meeting their plans."
REQUIRE STATE BUILDINGS, PUBLIC SCHOOL BUILDINGS, AND ANY OTHER BUILDINGS THAT RECEIVE FUNDING IN THE STATE CAPITAL BUDGET TO BE SUBJECT TO A UTILITY ENERGY PURCHASES REDUCTION GOAL
SECTION 1.18. Article 8 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143-128.5. Utility energy purchases reduction goal.
Any State department, agency, or institution and any entity that received funding in the State capital budget for a major facility project shall reduce energy purchases from a public utility by twenty percent (20%) by 2015 through cost-effective measures and distributed generation technologies for those facilities constructed with State capital funds."
PART II. PROVIDE ENERGY ASSISTANCE FOR LOW-INCOME PERSONS
SECTION 2.1. Article 3 of Chapter 143B of the General Statutes is amended by adding a new Part to read:
"Part 34A. North Carolina Energy Assistance Act for Low-Income Persons.
"§ 143B-216.72A. Legislative findings and purpose.
(a) The General Assembly makes the following findings:
(1) Maintaining the general health, welfare, and prosperity of the people of this State requires that all citizens receive essential levels of heat and electric service regardless of their economic circumstances.
(2) Serving the State's most vulnerable citizens: its low-income elderly, persons with disabilities, families with children, high residential energy users, and households with a high-energy burden, is a priority.
(3) Conserving energy benefits all citizens and their environment.
(4) Ensuring proper payment to public utilities and other entities providing energy services actually rendered is a responsibility of this State.
(5) Declining federal low-income energy assistance funding necessitates a State response to ensure the continuity and further development of energy assistance and related policies and programs in the State.
(6) Current energy assistance policies and programs have benefited North Carolina citizens and should be continued with the modifications provided in this Part.
(b) The General Assembly declares that it is the policy of the State that weatherization, replacement of heating and cooling systems, and other energy-related assistance programs be utilized to increase the energy efficiency of dwellings owned or occupied by low-income persons, reduce their total residential expenditures, and improve their health and safety. The State shall utilize all appropriate and available means to fund the Weatherization Assistance Program for Low-Income Families and the Heating/Air Repair and Replacement Program under G.S. 108A-70.30, and any other energy-related assistance program for low-income persons while, to the extent possible, identifying and utilizing sources of funding to achieve the objectives of this Part.
"§ 143B-216.72B. Definitions.
The following definitions apply to this Part:
(1) Applicant. - A member of the family residing in the dwelling unit, the owner, or designated agent of the owner of a dwelling unit applying for program services.
(2) Department. - The Department of Health and Human Services.
(3) Secretary. - The Secretary of Health and Human Services.
(4) Subgrantee. - An entity managing a weatherization project that receives a federal grant of funds awarded pursuant to 10 C.F.R. § 440 from the State or other entity named in the Notification of Grant Award and otherwise referred to as the grantee.
(5) Weatherization. - The modification of homes and home heating and cooling systems to improve heating and cooling efficiency by caulking and weather stripping, as well as insulating ceilings, attics, walls, and floors.
"§ 143B-216.72C. The Office of Economic Opportunity designated agency; powers and duties.
(a) The Office of Economic Opportunity of the Department shall administer the Weatherization Assistance Program for Low-Income Families established by 42 U.S.C. § 6861, et seq., and 42 U.S.C. § 7101, et seq., the Heating/Air Repair and Replacement Program established by the Secretary under G.S. 108A-70.30, and any other energy-related assistance program for the benefit of low-income persons. The Office of Economic Opportunity shall exercise the following powers and duties:
(1) Establish standards and criteria to carry out the provisions and purposes of this Part.
(2) Develop policy, criteria, and standards for receiving and processing applications for weatherization assistance.
(3) Make decisions and pursue appeals from decisions to accept or deny applications for weatherization, replacement of heating and cooling systems, and other energy-related assistance programs or otherwise participate in the State plan as a subgrantee or contractor.
(4) Adopt, amend, and repeal rules, consistent with the laws of this State, that may be required by the federal government for grants-in-aid for the Weatherization Assistance Program for Low-Income Families, the Heating/Air Repair and Replacement Program, or other energy-related assistance programs. This section shall be liberally construed in order that the State and its citizens may benefit from such grants-in-aid.
(5) Establish procedures for the submission of periodic reports by any community action agency or other agency or entity authorized to manage a weatherization project, replacement of heating and cooling system, or other energy-related assistance project.
(6) Implement criteria for periodic review of weatherization, replacement of heating and cooling systems, or other energy-related programs.
(7) Solicit, accept, hold, and administer on behalf of the State any grants or bequests of money, securities, or property for use by the Department or other agencies in the administration of this Part.
(8) Adopt rules pursuant to Chapter 150B of the General Statutes.
(9) Create a Policy Advisory Council within the Office of Economic Opportunity that shall advise the Office of Economic Opportunity with respect to the development and implementation of a Weatherization Program for Low-Income Families, the Heating/Air Repair and Replacement Program, and any other energy-related assistance program for the benefit of low-income persons.
(b) The Secretary shall have final decision-making authority with regard to all functions described in this Part."
PART III. ENERGY TAX INCENTIVES; MOBILE SOURCE EMISSIONS REDUCTIONS
CREATE AN INCOME TAX CREDIT FOR ENERGY EFFICIENT HOMES
SECTION 3.1. Part 1 of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-130.48. Construction or improvement of energy-efficient home.
(a) Definitions. - The following definitions apply in this section:
(1) Energy-efficient home. - A one- or two-family home that is a federally qualified energy-efficient home or a State-certified energy-efficient home.
(2) Federally qualified energy-efficient home. - A residence qualified under the ENERGY STAR Program administered by the United States Environmental Protection Agency.
(3) State-certified energy-efficient home. - A residence certified under the NC HealthyBuilt Homes Program administered by the North Carolina Solar Center, the State Energy Office, and the North Carolina Department of Administration.
(b) Credit. - A taxpayer that builds or manufactures an energy-efficient home or that improves an existing structure so that it becomes an energy-efficient home is allowed a credit against the taxes imposed by this Part. In order to claim a credit under this section, the taxpayer must include with the tax return documentation that the property with respect to which a credit is claimed is an energy-efficient home. The amount of the credit is as follows:
(1) For a taxpayer that builds or manufactures a new federally qualified energy-efficient home, the credit is five hundred dollars ($500.00).
(2) For a taxpayer that improves an existing structure so that it becomes a federally qualified energy-efficient home, the credit is equal to the cost of improvements not to exceed one thousand dollars ($1,000).
(3) For a taxpayer that builds or manufactures a new State-certified energy-efficient home, the credit is one thousand five hundred dollars ($1,500).
(4) For a taxpayer that improves an existing structure so that it becomes a State-certified energy-efficient home, the credit is equal to the cost of improvements not to exceed two thousand dollars ($2,000).
(c) Cap. - The credit allowed under this section may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, except tax payments made by or on behalf of the taxpayer. Any unused portion of a credit under this section may be carried forward for the succeeding five years.
(d) Sunset. - This section is repealed effective for taxable years beginning on or after January 1, 2011."
SECTION 3.2. Part 2 of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-151.30. Construction or improvement of energy-efficient home.
(a) Definitions. - The following definitions apply in this section:
(1) Energy-efficient home. - A one- or two-family home that is a federally qualified energy-efficient home or a State-certified energy-efficient home.
(2) Federally qualified energy-efficient home. - A residence qualified under the ENERGY STAR Program administered by the United States Environmental Protection Agency.
(3) State-certified energy-efficient home. - A residence certified under the NC HealthyBuilt Homes Program administered by the North Carolina Solar Center, the State Energy Office, and the North Carolina Department of Administration.
(b) Credit. - A taxpayer that builds or manufactures an energy-efficient home or that improves an existing structure so that it becomes an energy-efficient home is allowed a credit against the taxes imposed by this Part. In order to claim a credit under this section, the taxpayer must include with the tax return documentation that the property with respect to which a credit is claimed is an energy-efficient home. The amount of the credit is as follows:
(1) For a taxpayer that builds or manufactures a new federally qualified energy-efficient home, the credit is five hundred dollars ($500.00).
(2) For a taxpayer that improves an existing structure so that it becomes a federally qualified energy-efficient home, the credit is equal to the cost of improvements not to exceed one thousand dollars ($1,000).
(3) For a taxpayer that builds or manufactures a new State-certified energy-efficient home, the credit is one thousand five hundred dollars ($1,500).
(4) For a taxpayer that improves an existing structure so that it becomes a State-certified energy-efficient home, the credit is equal to the cost of improvements not to exceed two thousand dollars ($2,000).
(c) Cap. - The credit allowed under this section may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, except tax payments made by or on behalf of the taxpayer. Any unused portion of a credit under this section may be carried forward for the succeeding five years.
(d) Sunset. - This section is repealed effective for taxable years beginning on or after January 1, 2011."
SECTION 3.3. Part 2 of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-151.31. Purchase of energy-efficient home.
(a) Definitions. - The following definitions apply in this section:
(1) Energy-efficient home. - A one- or two-family home that is a federally qualified energy-efficient home or a State-certified energy-efficient home.
(2) Federally qualified energy-efficient home. - A residence qualified under the ENERGY STAR Program administered by the United States Environmental Protection Agency.
(3) State-certified energy-efficient home. - A residence certified under the NC HealthyBuilt Homes Program administered by the North Carolina Solar Center, the State Energy Office, and the North Carolina Department of Administration.
(b) Credit. - A taxpayer that purchases an energy-efficient home is allowed a credit against the taxes imposed by this Part in the amount of five hundred dollars ($500.00).
(c) Cap. - The credit allowed under this section may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, except tax payments made by or on behalf of the taxpayer. Any unused portion of a credit under this section may be carried forward for the succeeding five years.
(d) No Double Benefit. - A taxpayer that claims a credit under this section may not also claim a credit under G.S. 105-151.29 with respect to the same property.
(e) Sunset. - This section is repealed effective for taxable years beginning on or after January 1, 2011."
SECTION 3.4. Section 3.1 through Section 3.3 of this act become effective for taxable years beginning on or after January 1, 2007, and apply to homes that receive the qualification or certification on or after that date. This section of this act is effective when it becomes law.
EXEMPT BIODIESEL, FUEL ALCOHOL, AND GASOHOL FROM STATE MOTOR FUEL EXCISE TAX
SECTION 3.5. G.S. 105-449.60 reads as rewritten:
"§ 105-449.60. Definitions.
The following definitions apply in this Article:
(1) Biodiesel. - Any fuel or
mixture of fuels derived in whole or in part from agricultural
products or animal fats or wastes from these products or fats.
…
(7) Diesel fuel. - Any
liquid, other than gasoline, that is suitable for use as a fuel in a diesel-powered
highway vehicle. The term includes biodiesel, fuel oil, heating oil,
high-sulfur dyed diesel fuel, and kerosene. The term does not include jet fuel
sold to a buyer who is certified to purchase jet fuel under the Code.Code
or biodiesel.
…
(15) Gasoline. - Any of the following:
a. All products that are commonly or commercially known or sold as gasoline and are suitable for use as a fuel in a highway vehicle, other than products that have an American Society for Testing Materials octane number of less than 75 as determined by the motor method.
b. A petroleum product component of gasoline, such as naptha, reformate, or toluene.
c. Gasohol.
d. Fuel
alcohol.
The term does not include aviation
gasoline sold for use in an aircraft motor. motor, gasohol, or fuel
alcohol. 'Aviation gasoline' is gasoline that is designed for use in an
aircraft motor and is not adapted for use in an ordinary highway vehicle.
…
(31) Supplier. - Any of the following:
a. A position holder or a person who receives motor fuel pursuant to a two-party exchange.
b. A
fuel alcohol provider.
c. A
biodiesel provider.
d. A refiner.
(32) System transfer. - Either of the following:
a. A transfer of motor fuel within the terminal transfer system.
b. A transfer, by transport truck or railroad tank car, of biodiesel or fuel grade ethanol.
…"
SECTION 3.6. G.S. 105-449.72(a)(2) reads as rewritten:
"(2) For an applicant for a license as any of the following, the amount is two times the applicant's average expected monthly tax liability under this Article, as determined by the Secretary. The amount may not be less than two thousand dollars ($2,000) and may not be more than five hundred thousand dollars ($500,000):
a. A
supplier that is a fuel alcohol provider or a biodiesel provider but is neither
a position holder nor a person that receives motor fuel pursuant to a two-party
exchange.
b. An occasional importer.
c. A tank wagon importer.
d. A distributor.
e. Repealed by Session Laws 1997-60, s. 5, effective October 5, 1997."
SECTION 3.7. G.S. 105-449.81 reads as rewritten:
"§ 105-449.81. Excise tax on motor fuel.
An excise tax at the motor fuel rate is imposed on motor fuel that is:
(1) Removed from a refinery or a terminal and, upon removal, is subject to the federal excise tax imposed by § 4081 of the Code.
(2) Imported by a system transfer to a refinery or a terminal and, upon importation, is subject to the federal excise tax imposed by § 4081 of the Code.
(3) Imported by a means of transfer outside the terminal transfer system for sale, use, or storage in this State and would have been subject to the federal excise tax imposed by § 4081 of the Code if it had been removed at a terminal or bulk plant rack in this State instead of imported.
(3a) Fuel alcohol or
biodiesel, if it meets either of the following descriptions:
a. Is
removed from a terminal or another storage and distribution facility, unless
the removed fuel is received by a supplier for subsequent sale.
b. Is
imported to this State outside the terminal transfer system by a means other
than a marine vessel, a transport truck, or a railroad tank car.
(4) Blended fuel fuel,
other than a blend of motor fuel with biodiesel or fuel alcohol, made in
this State or imported to this State.
(5) Transferred within the terminal transfer system and, upon transfer, is subject to the federal excise tax imposed by section 4081 of the Code."
SECTION 3.8. G.S. 105-449.83A is repealed.
SECTION 3.9. G.S. 119-15 reads as rewritten:
"§ 119-15. Definitions that apply to Article.
The following definitions apply in this Article:
(1) Alternative fuel. - Defined in G.S. 105-449.130.
(1a) Biodiesel. - Defined in G.S. 105-449.60.
(1b) Biodiesel provider. - Defined in G.S. 105-449.60.
(1c) Blended fuel. - Defined in G.S. 105-449.60.
(1d) Blender. - Defined in G.S. 105-449.60.
(1a)(1e) Dyed diesel fuel. -
Defined in G.S. 105-449.60.
(1b)(1f) Dyed diesel fuel
distributor. - A person who acquires dyed diesel fuel from either of the
following:
a. A person who is not required to be licensed under Part 2 of Article 36C of Chapter 105 of the General Statutes and who maintains storage facilities for dyed diesel fuel to be used for nonhighway purposes.
b. Another dyed diesel fuel distributor.
(1g) Fuel alcohol. - Defined in G.S. 105-449.60.
(1h) Fuel alcohol provider. - Defined in G.S. 105-449.60.
…"
SECTION 3.10. G.S. 119-15.3(a) reads as rewritten:
(a) Initial Bond. - An
A biodiesel provider, a fuel alcohol provider, and an applicant for
a license as a kerosene supplier, kerosene distributor, or kerosene terminal
operator must file with the Secretary of Revenue a bond or an irrevocable
letter of credit. A bond or irrevocable letter of credit must be conditioned
upon compliance with the requirements of this Article, be payable to the State,
and be in the form required by the Secretary. The amount of the bond or
irrevocable letter of credit may not be less than five hundred dollars
($500.00) and may not be more than twenty thousand dollars ($20,000)."
SECTION 3.11. G.S. 119-18(a) reads as rewritten:
"(a) Tax. - An inspection
tax of one fourth of one cent (1/4 of 1¢) per gallon is levied upon all of the
fuel listed in this subsection regardless of whether the fuel is exempt from
the per-gallon excise tax imposed by Article 36C or 36D of Chapter 105 of the
General Statutes. The inspection tax on motor fuel fuel, other than
blended fuel that is not subject to the tax under G.S. 105-449.81(4), is
due and payable to the Secretary of Revenue at the same time that the per
gallon excise tax on motor fuel is due and payable under Article 36C of Chapter
105 of the General Statutes. The inspection tax on alternative fuel is due and
payable to the Secretary of Revenue at the same time that the excise tax on
alternative fuel is due and payable under Article 36D of Chapter 105 of the
General Statutes. The inspection tax on kerosene is payable monthly to the
Secretary by a supplier that is licensed under Part 2 of Article 36C of Chapter
105 of the General Statutes and by a kerosene supplier. A monthly report is due
by the 22nd of each month and applies to kerosene sold during the preceding
month by a supplier licensed under that Part and to kerosene received during
the preceding month by a kerosene supplier. The inspection tax on blended
fuel that is not subject to the tax under G.S. 105-449.81(4), biodiesel,
and fuel alcohol is payable monthly to the Secretary by a blender, a biodiesel
provider, and a fuel alcohol provider. A monthly report is due by the 22nd of
each month and applies to blended fuel that is not subject to the tax under
G.S. 105-449.81(4), biodiesel, and fuel alcohol sold during the preceding
month by a blender, biodiesel provider, or fuel alcohol provider. A
kerosene terminal operator must file a return in accordance with the provisions
of G.S. 105-449.100.
(1) Motor fuel.
(2) Alternative fuel used to operate a highway vehicle.
(3) Kerosene.
(4) Biodiesel.
(5) Fuel alcohol."
SECTION 3.12. The Department of Revenue shall report to the Revenue Laws Study Committee on an annual basis the fiscal impact of the tax exemption for biodiesel, fuel alcohol, and gasohol.
SECTION 3.13. Section 3.5 through Section 3.12 of this act become effective January 1, 2007.
CREATE AN ALTERNATIVE FUELS TAX CREDIT
SECTION 3.14. Chapter 105 of the General Statutes is amended by adding a new Article to read:
"Article 3H.
"Alternative Fuel Vehicle Tax Credit.
"§ 105-129.70. Definitions.
The following definitions apply in this Article:
(1) Alternative fuel vehicle. - An original equipment manufactured motor vehicle that operates on compressed natural gas, propane, or electricity or a hybrid electric vehicle.
(2) Hybrid electric vehicle. - A motor vehicle with a hybrid propulsion system that operates on both electricity and a petroleum-based motor fuel.
(3) Long-term lease. - Defined in G.S. 105-187.1.
(4) Motor vehicle. - Defined in G.S. 105-164.3.
"§ 105-129.71. Credit for purchasing or leasing an alternative fuel vehicle.
A taxpayer that purchases or leases, pursuant to a long-term lease, a new alternative fuel vehicle is allowed a credit in the amount of two thousand dollars ($2,000). In order to be eligible for the credit allowed by this section, the vehicle shall have a gross vehicle weight of less than 10,000 pounds and shall be registered in this State. A taxpayer may claim a credit under this section for each qualified purchase or lease. The credit allowed under this section is allowed only to the first individual to take title to the motor vehicle other than for resale. A taxpayer may not take the credit allowed in this section for an alternative fuel vehicle the taxpayer leases from another unless the taxpayer obtains the lessor's written certification that the lessor will not claim a credit under this Article with respect to the alternative fuel vehicle.
"§ 105-129.72. Tax credited; limitations.
(a) Tax Credited. - The credit allowed in this Article is allowed against the franchise tax levied in Article 3 of this Chapter or the income taxes levied in Article 4 of this Chapter. The taxpayer shall elect the tax against which a credit will be claimed when filing the return on which the credit is first claimed. This election is binding. Any carryforwards of a credit shall be claimed against the same tax.
(b) Limitations. - A credit shall be taken for the taxable year in which the property is purchased or leased. A credit allowed under this Article may not exceed the amount of the tax against which it is claimed for the taxable year reduced by the sum of all credits allowed. Any unused portion of the credit may be carried forward for the succeeding five years.
"§ 105-129.73. Substantiation.
To claim a credit allowed by this Article, the taxpayer shall provide any information required by the Secretary of Revenue. The burden of proving eligibility for a credit and the amount of the credit rests upon the taxpayer, and no credit may be allowed to a taxpayer that fails to maintain adequate records or to make them available for inspection.
"§ 105-129.74. Reports.
The Department of Revenue shall report to the Revenue Laws Study Committee and to the Fiscal Research Division of the General Assembly by May 1 of each year the following information for the 12-month period ending the preceding December 31:
(1) The number of vehicles for which taxpayers claimed the credit allowed in this Article, by taxpayer type.
(2) The total cost to the General Fund of the credits claimed.
"§ 105-129.75. Sunset.
This Article is repealed effective for alternative fuel vehicles purchased or leased on or after January 1, 2011."
ESTABLISH MOBILE SOURCE EMISSIONS REDUCTION PROGRAM
SECTION 3.15. Article 36 of Chapter 143 of the General Statutes is amended by adding a new Part to read:
"Part 4. Mobile Source Emissions Reduction Program.
"§ 143-345.19. Mobile Source Emissions Reduction Program established.
(a) Establishment. - There is established the Mobile Source Emissions Reduction Program in the Department of Administration. The Program is to be administered by the State Energy Office.
(b) Purposes. - The Program shall provide for grants for the following purposes:
(1) Payments to the first owner, other than for resale, of alternative fuel vehicles and hybrid vehicles.
(2) Payments to users of alternative fuel to offset the higher cost of alternative fuel as compared to other motor fuels.
(3) Alternative fuel infrastructure projects.
(4) Anti-idling technologies approved by the United States Environmental Protection Agency.
(5) Payments for the installation of particulate traps and oxidation catalysts on diesel vehicles.
(c) Definitions. - The following definitions apply in this Part:
(1) Alternative fuel. - Defined in G.S. 105-449.130.
(2) Alternative fuel vehicle. - An original equipment manufactured motor vehicle that operates on an alternative fuel.
(3) Hybrid vehicle. - A motor vehicle with a hybrid propulsion system that operates on both electricity and a petroleum-based motor fuel.
"§ 143-345.19A. Implementation.
The State Energy Office, in consultation with the Department of Environment and Natural Resources, shall adopt rules regarding the implementation of the Mobile Source Emissions Reduction Program. These rules shall be adopted after consultation with the Department of Transportation, the Department of Correction, the Department of Public Instruction, the Department of Revenue, and any other interested parties. The rules adopted by the State Energy Office shall comply with environmental and energy regulations promulgated by the United States Department of Energy and the United States Environmental Protection Agency.
"§ 143-345.19B. Funding.
(a) Funding Source. - The Mobile Source Emissions Reduction Program shall be funded by a surcharge on the annual registration fees of motor vehicles. The surcharge is determined as follows:
(1) For light-duty vehicles, the surcharge is based on the vehicle's Green Vehicle Guide rating, as published by the United States Environmental Protection Agency, in accordance with the following table:
Combined Green Vehicle Guide Score Surcharge
17-20 $2.00
13-16 $5.00
9-12 $8.00
5-8 $11.00
(2) For medium- and heavy-duty vehicles, the surcharge is fourteen dollars ($14.00).
(b) Transfer. - The Division of Motor Vehicles shall collect the surcharge imposed by this section at the time it collects the registration fee. The Division of Motor Vehicles shall transfer funds collected under this section on a quarterly basis to a special revenue fund in the Department of Administration. Funds in this special revenue fund shall be used by the State Energy Office to implement the Program created in this Part.
(c) Administration Allowance. - The State Energy Office and the Division of Motor Vehicles may use up to five percent (5%) of the funds collected under this Part for the administration of this Part.
"§ 143-345.19C. Reports.
The Division of Motor Vehicles shall provide to the State Energy Office quarterly reports of all registered motor vehicles identified by fuel type. The State Energy Office shall provide an annual report on the expenditure of funds under this Part and the number of alternative fuel vehicles and hybrid vehicles registered in this State to the Joint Legislative Transportation Oversight Committee."
SECTION 3.16. G.S. 143-345.19B, as enacted by Section 3.15 of this act, becomes effective July 1, 2006, and applies to registrations due on or after that date. The remainder of Section 3.15 and this section of this act are effective when the act becomes law. Section 3.15 of this act expires July 1, 2016.
PART IV. APPROPRIATION
SECTION 4.1. There is appropriated from the General Fund to the Department of Administration the sum of five hundred thousand dollars ($500,000) for the 2006-2007 fiscal year for the Energy Policy Council to implement Part I of this act.
PART V. EFFECTIVE DATES
SECTION 5.1. Except as otherwise provided in this act, all other sections of this act are effective when it becomes law.