GENERAL ASSEMBLY OF NORTH CAROLINA
SENATE BILL 709
AN ACT to increase energy production in north carolina to develop a secure, stable, and predictable energy supply to facilitate economic growth, job creation, and expansion of business and industry opportunities and to assign future revenue from energy exploration, development, and production of energy resources in order to protect and preserve the state's natural resources, cultural heritage, and quality of life.
Whereas, the citizens of North Carolina would benefit not only from energy-related employment opportunities, but also the discovery of secure domestic energy resources and the associated federal royalty and revenue sharing that should accompany successful discoveries; and
Whereas, the citizens of North Carolina deserve strong representation in both regional and national coastal coalitions by their Governor and General Assembly to secure energy jobs and revenue; and
Whereas, such coalitions will promote a better understanding of the relationship between coastal states, their unique resources, and the potential for energy development in connection with federal agencies and Congress; and
Whereas, North Carolina's neighboring states are also hopeful of new energy discoveries and related employment and revenue sharing and currently are taking the initiative to secure a robust energy jobs sector; and
Whereas, in April 2011, the President of the United States linked economic growth to energy independence and stated that the nation must increase its domestic energy production and efficiency while concurrently decreasing energy imports; and
Whereas, in May 2011, the U.S. House of Representatives passed H.R. 1230 to require that within one year the U.S. Department of the Interior is required to hold a lease sale for energy exploration offshore Virginia directly adjacent to North Carolina's offshore waters; and
Whereas, in May 2011, the Governors of Alaska, Texas, Louisiana, Mississippi, and Virginia created the Outer Continental Shelf Governors Coalition for the greater coordination between the state and federal governments on offshore energy exploration, development, and production and are calling for a better understanding of how federal decisions impact state and local economies; and
Whereas, North Carolina has had active offshore leases with estimated economically recoverable natural gas of approximately five trillion cubic feet specific to two individual lease blocks, each with an area of approximately nine square nautical miles; and
Whereas, North Carolina's 60 million acres of federal offshore waters is the largest along the Atlantic and the fourth largest in the United States; and
Whereas, the General Assembly authorized the creation of the Legislative Research Commission's Advisory Subcommittee on Offshore Energy Exploration in 2008 to study offshore hydrocarbon and other energy resources; and
Whereas, the Legislative Research Commission's Advisory Subcommittee on Offshore Energy Exploration heard testimony and received a report from the University of North Carolina Wind Study Group that found a yet-to-be-quantified potential for utility-scale production of wind energy off the coast of North Carolina and possibly within eastern Pamlico Sound; and
Whereas, both State and federal agencies indicate a yet-to-be-quantified potential for onshore energy resources in the State that include shale gas, nonedible biofuels crops in the agricultural and forestry industries, wind, and other alternative energy sources; and
Whereas, onshore renewable energy and energy efficiency industries in North Carolina comprise more than 1,100 companies and currently employ more than 12,500 North Carolinians, representing a 22% growth in jobs from 2009 to 2010; and
Whereas, the findings in the April 2010 final report of the Legislative Research Commission's Advisory Subcommittee on Offshore Energy Exploration noted that potentially significant energy resources exist offshore North Carolina that included quantifiable estimates from the federal government of almost 30 trillion cubic feet of natural gas in offshore North Carolina and adjacent mid-Atlantic states; and
Whereas, the Legislative Research Commission's Advisory Subcommittee on Offshore Energy Exploration heard comments and received a report from the Southeast Energy Alliance that found production of natural gas and associated hydrocarbons offshore North Carolina would create more than 6,700 new jobs and add more than $659 million annually to the State's Gross Domestic Product over three decades, during which time this energy production could generate almost $10 billion in cost sharing of government revenues at an average of $484 million per year to the State; and
Whereas, the Legislative Research Commission's Advisory Subcommittee on Offshore Energy Exploration recommended that production of fossil fuel and alternative energy resources in North Carolina's outer continental shelf should include provisions for revenue and royalty sharing directed to the State of North Carolina; and
Whereas, the Legislative Research Commission's Advisory Subcommittee on Offshore Energy Exploration recommended that North Carolina participate cooperatively in regional offshore energy endeavors with Virginia and South Carolina; and
Whereas, the General Assembly of South Carolina authorized an offshore energy study with findings in the final report, completed in 2009, recommending that the state of South Carolina should consider the development of an offshore natural gas industry with appropriate federal revenue sharing; and
Whereas, the General Assembly of the Commonwealth of Virginia authorized an offshore energy study of natural gas potential with findings in the final report, completed in 2006, recommending exploration and development of natural gas resources offshore Virginia as well as federal revenue sharing of these resources; and
Whereas, during the past few years, the Governor of Virginia, the General Assembly of the Commonwealth of Virginia, and the United States Congressional delegation for Virginia continue to proactively support, put forth legislation in both the Commonwealth and in the United States Congress, and ratify legislation in the Commonwealth to move forward with energy exploration, development, and production as well as ensuring federal revenue sharing of these resources; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.(a) Royalties and revenue from offshore and onshore energy production. - Any revenues and royalties paid to the State as a result of offshore or onshore leasing, exploration, development, and production of all energy resources shall be deposited in an interest-bearing special revenue fund to be established within the State treasury until a total of five hundred million dollars ($500,000,000) is reached. This fund shall be used only for emergency response, emergency environmental protection, or mitigation associated with a release of liquid hydrocarbons or associated fluids directly related to offshore or onshore energy exploration, development, production, or transmission after such an event has been declared a disaster by the Governor. Once the fund balance reaches the amount of five hundred million dollars ($500,000,000), the funds shall be appropriated as provided in subsection (b) of this section. If monies are withdrawn from this fund to carry out the provisions in this section, all revenues and royalties paid to the State as a result of offshore or onshore leasing, exploration, development, and production of all energy resources shall be deposited in the fund until a total of five hundred million dollars ($500,000,000) is reestablished. Once the fund balance reaches the amount of five hundred million dollars ($500,000,000), the funds shall be appropriated as provided in subsection (b) of this section. Any interest or other income generated from the corpus of this fund in excess of the five hundred million dollars ($500,000,000) fund balance shall be deposited back into this fund.
SECTION 1.(b) Any revenues and royalties paid to the State as a result of offshore or onshore leasing, exploration, development, and production of all energy resources in excess of the amount needed to establish the fund created in subsection (a) of this section shall be appropriated and used for the following purposes:
(1) Twenty-four percent (24%) of such revenues and royalties shall be credited to the General Fund.
(2) Ten percent (10%) of such revenues and royalties shall be credited to the Highway Trust Fund established under G.S. 136-176.
(3) Ten percent (10%) of such revenues and royalties shall be transferred to the Community Colleges System Office to establish and manage a fund for curriculum development and implementation as well as financial assistance for students attending community college to receive vocational training through this curriculum in fields directly related to energy exploration and development and related energy infrastructure.
(4) Fifteen percent (15%) of such revenues and royalties shall be transferred to the Board of Governors of The University of North Carolina System to establish and manage research and development funds for programs directly related to energy research and development.
(5) Thirty percent (30%) of such revenues and royalties shall be transferred to the Department of Environment and Natural Resources for conservation, protection, and mitigation, including, but not limited to, beach and inlet management projects, channel navigation and maintenance, public beach and water access, water quality management, and habitat restoration. Monies may also be used for environmental assessment and cleanup for non-energy-related activities, including an inactive hazardous substance or waste disposal site remedial action program where a responsible person cannot be identified or located, or where the responsible person is unable to pay the costs of remediation. No funds appropriated to the Department by this section shall be used for the construction or maintenance of terminal groins.
(6) Five percent (5%) of such revenues and royalties shall be transferred to the State Ports Authority for expansion and maintenance of State Port infrastructure associated with energy-related commerce.
(7) One percent (1%) of such revenues and royalties shall be transferred to the Department of Commerce for recruitment of energy-related industries to the State.
(8) Five percent (5%) of such revenues and royalties shall be transferred to the Rural Center for administration of a fund for water and sewer infrastructure related to energy exploration, production, and development.
SECTION 2.(a) Development of Governors' Regional Interstate Offshore Energy Policy Compact. - The Governor is directed to commence development of a regional energy compact with the governors of South Carolina and Virginia in order to develop a unified regional strategy for the exploration, development, and production of all commercially viable federal and state offshore energy resources within the three-state region. The Governor shall develop recommendations for the General Assembly to consider for the development of a statutory regional compact, and these recommendations shall reflect the collective agreement of all three governors in the three-state region in order to provide common language for consideration by each state's General Assembly. During the development of these compact recommendations, the Governor is authorized to work directly with each of the three states' Congressional delegations, the United States Department of the Interior, the United States Environmental Protection Agency, and other appropriate federal agencies on behalf of the State of North Carolina to develop appropriate strategies to be considered in the development of the three-state compact for increasing domestic energy exploration, development, and production within each state in the three-state region and their adjacent state and federal waters. The compact negotiations and recommendations shall address at least all of the following:
(1) Ensure a timely review and consideration of permits and proposals at both the state and federal level for both state and federal waters adjacent to each state in the three-state region for seismic and other marine geophysical exploration to identify and quantify natural gas and related hydrocarbon resources along the continental margin.
(2) Amend the Five Year Leasing Plan of the United States Department of the Interior to include leasing federal waters adjacent to the State and the three-state region for the exploration, quantification, and development of natural gas and related hydrocarbon energy resources.
(3) Advocate proactively with each state's Congressional delegation and appropriate federal agencies to ensure direct sharing of royalties and revenues related to energy leasing, exploration, development, and production of all offshore energy resources in federal waters adjacent to the State and the three-state region.
(4) Request the United States Department of the Interior to reinstate the federal Offshore Policy Committee with new members and new alternate members to be nominated by the governor of the state represented on the Offshore Policy Committee and appointed by the Secretary of the Interior, six of whom are to be one member and one alternate member from each of North Carolina, Virginia, and South Carolina.
SECTION 2.(b) No later than three months after the effective date of this act, and at least every three months thereafter, the Governor shall report to the General Assembly on the progress of the Governor and others in complying with the requirements under this section, to include providing copies of correspondence and other relevant materials to or from the Office of the Governor when the correspondence or materials pertain to the subject under this section or to any requirement under this section. The Governor shall report her final recommendations for the three-state energy compact to the Joint Regulatory Reform Committee no later than May 1, 2012.
SECTION 2.(c) In addition to the provisions in Sections 2(a) and 2(b) of this act, the Governor is encouraged to join the Governors of Alaska, Texas, Louisiana, Mississippi, and Virginia and any others who may sign on to the Outer Continental Shelf Governors Coalition announced on May 3, 2011, to promote a constructive dialogue among the coastal state governors and the federal government on offshore energy issues important to the future of North Carolina and the United States.
SECTION 3.(a) Onshore shale gas. - The Department of Environment and Natural Resources shall provide a comprehensive report to the Governor, the General Assembly, the Energy Jobs Council, created in G.S. 113B-2, as amended in Section 4 of this act, and the Joint Regulatory Reform Committee by May 1, 2012, that outlines the commercial potential of onshore shale gas resources within the State as well as the regulatory framework necessary to develop this resource. As part of this study, the Department is encouraged to collaborate with the Energy Jobs Council. As part of this report, the Department shall review all existing State laws and regulations regarding natural gas and related onshore hydrocarbon production specific to shale gas. The Department shall also review existing laws and regulations in states currently exploring for or producing shale gas, including Texas, Pennsylvania, and Arkansas, as well as related federal regulations and programs. In addition, the Department shall do all of the following for inclusion in its report under this section:
(1) Review State laws and regulations, including G.S. 113-393(d) and 15 NCAC 05D, and provide recommendations on amendments and additions to address issues related to shale gas exploration, development, and production, including horizontal drilling, well permitting, well spacing, maximum permitted well depth, reporting requirements, bonding requirements, fees, and penalties.
(2) Review State laws and regulations, including G.S. 87-88(c) and 15A NCAC 02C, and provide recommendations on amendments and additions to address issues related to shale gas exploration, development, and production, including hydraulic fracturing, reporting requirements for fracturing fluids, environmental management of fracturing fluids, water use, and groundwater protection. In addition, provide recommendations on the reuse, recycling, and disposal requirements for waste hydraulic fluids, water, and related solid waste and recommend well drilling, casing, and cementing standards for wells that may be subject to hydraulic fracturing.
(3) Provide an inventory of all water supplies and evaluate the availability of water supply and potential impacts on other water users in any area of shale gas interest identified by either the State Geologist or the United States Geological Survey.
(4) Develop a regulatory framework proposal, including agencies, staffing, processes, permit requirements, penalties, fees, and reporting requirements necessary to evaluate the technical and public health and public safety merits of shale gas exploration and energy production and, where appropriate, outline processes for the provision of permit oversight, approval, and management.
SECTION 3.(b) In order to avoid redundancy and to make the most efficient use of State resources, the Department of Environment and Natural Resources and the Energy Jobs Council shall, to the maximum extent practicable, conduct the study required by Section 3(a) of this act in conjunction with the study required by Section 4 of House Bill 242, 2011 Regular Session, if House Bill 242 becomes law. The result of these consolidated studies, if applicable, shall result in one final report from the Department.
SECTION 4.(a) Amend Energy Policy Act. - The title of Chapter 113B of the General Statutes reads as rewritten:
Carolina Energy Policy
Act of 1975.and Jobs Act."
SECTION 4.(b) G.S. 113B-1 reads as rewritten:
"§ 113B-1. Legislative findings and purpose.
Upon investigation the General Assembly hereby finds that:
Energy is essential to the health, safety and welfare of the people of this
State and to the workings of the State
Growth in the consumption of energy resources is in some part due to
wasteful, uneconomic and inefficient uses of energy and a continuation of this
trend will adversely affect the future social, economic and environmental
development of North Carolina;
the responsibility of State government to encouragein the
State's best interest to support the development of a reliable and adequate
supply of energy for North Carolina at a level consistent with such energy
needs required for the protection of public health and safety, and for the
promotion of the general welfare; andthat is secure, stable, and
predictable in order to facilitate economic growth, job creation, and expansion
of business and industry opportunities.
(3a) It is in the State's best interest to support the exploration, development, and production of domestic energy supplies, preferably from the resources within the State or region and most certainly from within the country.
(3b) It is the duty of State government to protect and preserve the State's natural resources, cultural heritage, and quality of life and, above all, the public health and safety of its residents during the exploration, development, and production of domestic energy resources.
The State has not provided the basis for development of a long-range unified
energy policy to encompass comprehensive energy resource planning and efficient
management of the rate of consumption of existing energy resources in relation
to economic growth, to effectively meet an energy crisis, to encourage
development of alternative sources of energy, and to prudently conserve energy
resources in a manner consistent with assuring a reliable and adequate supply
of energy for North
Carolina.Carolina, including active support and
collaboration with the federal government to ensure access to the nation's
energy resources located on the outer continental shelf directly adjacent to
the State's coastal waters.
It is the expressed intent of this Chapter to provide for development of such a
unified domestic energy policy for the State of North
as part of a nationwide effort for increased domestic energy production in the
interest of national security and economic growth and stability."
SECTION 4.(c) G.S. 113B-2 reads as rewritten:
113B-2. Creation of Energy
Policy Jobs Council; purpose of
There The Energy Jobs Council is hereby created a
council to advise and make recommendations on increasing domestic
energy policy exploration, development, and production within the
State and region to promote economic growth and job creation to the
Governor and the General Assembly to be known as the Energy PolicyAssembly.
The Energy Jobs Council which shall be located within the Department
Except as otherwise provided in this Chapter, the powers, duties and functions
of the Energy
Policy Jobs Council shall be as prescribed by the
Secretary of Commerce.
Policy Jobs Council shall serve as the central energy
policy planning body of the State and shall communicate and cooperate with
federal, State, regional and local bodies and agencies to the end of effecting
a coordinated energy policy."
SECTION 4.(d) G.S. 113B-3 reads as rewritten:
"§ 113B-3. Composition of Council; appointments; terms of members; qualifications.
Policy Jobs Council shall consist of 16 12 members
to be appointed as follows: (1)
Two members of the North Carolina House of Representatives to be appointed
by the Speaker of the House of Representatives; (2)
Two members of the North Carolina Senate to be appointed by the President
Pro Tempore of the Senate;
(2a) The Secretary of Commerce.
Twelve Eleven public members who are citizens of the State of
North Carolina to be appointed by the Governor. The Governor shall designate
one of the public members as chair of the Council.Carolina and who are
appointed in accordance with subsection (c) of this section.
Appointments to the Energy
Policy Jobs Council shall be made by July
15, 2009,October 1, 2011, and each such appointee shall serve until
January 31, 2011. Thereafter, the appointed members of the General
Assembly shall serve two-year terms, and the appointed public members
shall serve four-year four-year terms. A member of the Energy
Policy Council shall continue to serve until his successor is duly appointed,
but such holdover shall not affect the expiration date of such succeeding term.Appointments
made by the President Pro Tempore of the Senate and the Speaker of the House of
Representatives shall be allowed when the General Assembly is not in session.
The public members of the Energy
Policy Jobs Council shall have
the following qualifications:qualifications and shall be appointed as
One member shall be
experienced in the electric power industry;a
representative of an investor-owned electric public utility, to be appointed by
One member shall be
experienced in the natural gas industry;experienced
in offshore natural gas and associated hydrocarbon exploration, development,
and production, to be appointed by the Governor. (2a)
One member shall be experienced in energy policy matters;
One member shall be
experienced in alternative fuels and biofuels;a
representative of an investor-owned natural gas public utility, to be appointed
by the President Pro Tempore of the Senate.
One member shall be
experienced in energy efficient building design or
construction;an energy economist or a person with experience in the
financing or business development or an energy-related business, to be
appointed by the President Pro Tempore of the Senate.
One member shall be
experienced in environmental protection;a
geologist with experience in hydrocarbon resource evaluation and geophysical
data acquisition, to be appointed by the President Pro Tempore of the Senate.
who is engaged in a business providing renewable energy or other
energy services;shall be an industrial energy consumer, to be appointed
by the Speaker of the House of Representatives.
One member shall be knowledgeable of alternative and renewable sources of
other than wind energy, to be appointed by the Speaker of the House of
who, at the time of appointment, is a county commissioner; or
elected municipal officer; provided, the member's term on the Council shall
expire immediately in the event that he or she vacates office as a county
commissioner or municipal officer;who has experience in trucking, rail,
or shipping transportation, to be appointed by the Speaker of the House of
(9) Repealed by Session Laws 2009-446, s. 4, effective August 7, 2009.
member shall be knowledgeable in the finance, business development, or
technology development of energy-related business;One member shall be a
representative with experience in wind energy, to be appointed by the Governor.
member shall be experienced in low-income energy policy matters or low-income
residential weatherization.One member shall be a representative with
experience in environmental management, appointed by the Speaker of the House
member shall be experienced in the petroleum industry.One member shall
be involved with the biofuels industry, to be appointed by the President Pro
Tempore of the Senate."
SECTION 4.(e) G.S. 113B-4 reads as rewritten:
"§ 113B-4. Chairman of Council; replacement; reimbursement of members.
On August 15, 2009, on January 31, 2011, and every four years thereafter,
the Governor shall appoint aThe Secretary of Commerce shall serve as
chair of the Council.
In case of a vacancy in the membership on the Energy
Council prior to the expiration of a member's term, a successor shall be
appointed within 30 days of such vacancy for the remainder of the unexpired
term by the appropriate official pursuant to the provisions of G.S. 113B-3.
Members of the Energy
Policy Jobs Council shall be reimbursed for
their services pursuant to the provisions of G.S. 138-5."
SECTION 4.(f) G.S. 113B-6 reads as rewritten:
"§ 113B-6. General duties and responsibilities.
The goal of the Energy Jobs
Council is to identify and utilize all domestic energy resources in order to
ensure a secure, stable, and predictable energy supply and to protect the
economy of the State, promote job creation, and expand business and industry
opportunities while ensuring the protection and preservation of the State's
natural resources, cultural heritage, and quality of life. The Energy
Council shall may delegate its duties where appropriate to the State
Energy Office. Provided, however, the Council shall provide oversight and
approval to the duties delegated to the State Energy Office. The Energy Jobs
Council shall have the following general duties and responsibilities:
To develop and recommend to the Governor and the General Assembly a
long-range State energy policy that addresses
requirements in the short term (10 years), in the midterm (25 years), and in
the long term (50 years) to achieve maximum effective management and use of
present and future sources of energy, such policy to include but not be limited
to energy efficiency, renewable and alternative sources of energy, research and
development into alternative energy technologies, and improvements to the
State's energy infrastructure and energy economy;economy, including
smart grid and domestic energy resources that shall include at least natural
gas, coal, hydroelectric power, solar, wind, nuclear energy, and biomass. For
utilities regulated under Chapter 62 of the General Statutes, the policy
developed under this subdivision shall be consistent with the analysis and plan
developed under G.S. 62-110.1(c).
To conduct an ongoing assessment of the opportunities and constraints presented
by various uses of all forms of energy to facilitate the expansion of the
domestic energy supply and to encourage the efficient use of all such
energy forms in a manner consistent with State energy
To continually review and coordinate all State government research, education
and management programs relating to energy
matters andmatters, to
continually educate and inform the general public regarding such energy matters;matters,
and to actively engage in discussions with the federal government, its
agencies, and its leaders to identify opportunities to increase domestic energy
supply within North Carolina and its adjacent offshore waters.
(4) To recommend to the Governor and to the General Assembly needed energy legislation and to recommend for implementation such modifications of energy policy, plans and programs as the Council considers necessary and desirable."
SECTION 4.(g) G.S. 113B-7 reads as rewritten:
"§ 113B-7. Energy Efficiency Program; components.
Policy Jobs Council shall prepare a recommended Energy
Efficiency Program for transmittal to the Governor, the initial plan to be completed
by January 30, 1976.
(b) The Energy Efficiency Program shall be designed to assure the public health and safety of the people of North Carolina and to encourage and promote conservation of energy through reducing wasteful, inefficient or uneconomical uses of energy resources.
(c) The Energy Efficiency Program shall include but not be limited to the following recommendations:
(1) Recommendations to the Building Code Council for lighting, insulation, climate control systems and other building design and construction standards which increase the efficient use of energy and are economically feasible to implement;
(2) Recommendations to the Building Code Council for per unit energy requirement allotments based upon square footage for various classes of buildings which would reduce energy consumption, yet are both technically and economically feasible and not injurious to public health and safety;
(3) Recommendations for minimum levels of operating efficiency for all appliances whose use requires a significant amount of energy based upon both technical and economic feasibility considerations;
(4) Recommendations for State government purchases of supplies, vehicles and equipment and such operating practices as will make possible more efficient use of energy;
(5) Recommendations on energy conservation policies, programs and procedures for local units of government;
Any other recommendations which the Energy
Policy Jobs Council
considers to be a significant part of a statewide conservation effort and which
include provisions for sufficient incentives to further energy conservation;
(7) An economic and environmental impact analysis of the recommended program.
(d) In addition to specific conservation recommendations, the Energy Efficiency Program shall contain proposals for implementation of such recommendations as can be carried out by executive order. Upon completion of a draft recommended program, the Council shall arrange for its distribution to interested parties and shall make the program available to the public and the Council further shall set a date for public hearing on said program.
(e) Upon completion of the Energy Efficiency Program, the Council shall transmit said program, to be known as the State Energy Efficiency Program, to the Governor for approval or disapproval. Upon approval, the Governor shall assign administrative responsibility for such implementation as can be carried out by executive order to appropriate agencies of State government, and submit to the General Assembly such proposals which require legislative action for implementation. The Governor shall have the authority to accept, administer, and enforce federal programs, program measures and permissive delegations of authority delegated to the Governor by the President of the United States, Congress, or the United States Department of Energy, on behalf of the State of North Carolina, which pertain to the conservation of energy resources.
(f) The Governor shall transmit the approved Energy Efficiency Program to the President Pro Tempore of the Senate, to the Speaker of the House of Representatives, to the heads of all State agencies and shall further seek to publicize such plan and make it available to all units of local government and to the public at large.
At least every two years and whenever such changes take place as would
significantly affect energy supply or demand in North Carolina, the Energy
Jobs Council shall review and, if necessary, revise the Energy
Efficiency Program, transmitting such revised plan to the Governor pursuant to
the procedures contained in subsections (e) and (f) of this section."
SECTION 4.(h) G.S. 113B-8(a) reads as rewritten:
"§ 113B-8. Energy Management Plan; components.
Policy Jobs Council shall prepare a recommended Energy
Management Plan for transmittal to the Governor, the initial plan to be
completed by June 30, 1976."
SECTION 4.(i) G.S. 113B-9 reads as rewritten:
"§ 113B-9. Emergency Energy Program; components.
Policy Jobs Council shall, in accordance with the
provisions of this Article, develop contingency and emergency plans to deal
with possible shortages of energy to protect public health, safety and welfare,
such plans to be compiled into an Emergency Energy Program.
Within four months of July 1, 1975:If required for an update of the
program provided under subsection (j) of this section:
Each electric utility and natural gas utility in the State shall prepare and
submit to the Energy
Policy Jobs Council a proposed emergency
curtailment plan setting forth proposals for identifying priority loads or
users in the event of the declaration of an energy crisis pursuant to
G.S. 113B-20, and proposals for supply allocation to such priority loads
or users. Utilities regulated under Chapter 62 of the General Statutes may
satisfy this requirement by submitting the General Load Reduction and System
Restoration Plan that is prepared annually for the Utilities Commission.
Each major oil producer doing business in this State as determined by the
Policy Jobs Council shall prepare and submit to the Energy
Policy Jobs Council an analysis of how any national supply
curtailment pursuant to federal regulations shall affect the supply for North
Carolina and how priority users will be determined and available supplies
allocated to such users.
Policy Jobs Council shall encourage the preparation
of joint emergency curtailment plans and analyses. If such cooperative
plans and analyses are developed between two or more utilities, major producers
or by an association of such companies, the joint plans or analyses may be
submitted to the Energy Policy Jobs Council in lieu of
information required pursuant to subsection (b) of this section.
Policy Jobs Council shall collect from all relevant
governmental agencies any existing contingency plans for dealing with
sudden energy shortages or information related thereto.
Policy Jobs Council shall hold one or more public
hearings, investigate and review the plans submitted pursuant to this section,
and, within nine months after July 1, 1975, the Energy Policy Jobs Council
shall approve and recommend to the Governor guidelines for emergency
curtailment to be known as the Emergency Energy Program and to be implemented
upon adoption by the Governor after the declaration of an energy crisis and
pursuant to G.S. 113B-20 and 113B-23. Said program shall be based upon the
plans presented to the Energy Policy Jobs Council, upon
independent analysis and study by the Council, and upon information provided at
the hearing or hearings, provided, however, that they are consistent with such
federal programs and regulations as are already in effect at that time.
(f) The Emergency Energy Program shall provide for the maintenance of essential services, the protection of public health, safety, and welfare, and the maintenance of a sound basic State economy. For utilities regulated under Chapter 62 of the General Statutes, the program shall be consistent with the General Load Reduction and System Restoration Plan that is prepared annually for the Utilities Commission. Provisions also shall be made in said program to differentiate curtailment of energy consumption by users on the basis of ability to accommodate such curtailments, and shall also include, but not be limited to, the following:
(1) A variety of strategies and staged conservation measures of increasing intensity and authority to reduce energy use during an energy crisis, as defined in G.S. 113B-20 and guidelines and criteria for allocation of energy sources to priority users. The program shall contain alternative conservation actions and allocation plans to reasonably meet various foreseeable shortage circumstances and to allow a choice of appropriate responses;
(2) Evidence that the program is consistent with requirements of federal emergency energy conservation and allocation laws and regulations;
(3) Proposals to assist such individuals, institutions, agriculture and businesses which have engaged in energy saving measures;
Policy Jobs Council shall carry out such
investigations and studies as are necessary to determine if and when
potentially serious shortages of energy are likely to affect North Carolina and
the Council shall make recommendations to the Governor concerning
administrative and legislative actions required to avert such shortages, such
recommendations to be included as a section of the Emergency Energy Program.
(h) In addition to the above information and recommendations, the program shall contain proposals for implementation of such recommendations which include procedures, rules and regulations and agency administrative responsibilities for implementation, and shall further contain procedures for fair and equitable review of complaints and requests for special exemptions from emergency conservation measures or emergency allocations. Upon completion of a draft recommended plan, the Council shall arrange for its distribution to interested parties and shall make such plan available to the public and the Council further shall set a date for public hearing on said plan.
(i) Upon completion of the Emergency Energy Allocation Program, the Council and the Governor shall follow the procedures as outlined in G.S. 113B-7(e) and (f).
(j) The Council shall update said program upon a finding by it that an update is justified and shall follow the procedures for adoption pursuant to G.S. 113B-7(e) and (f).
(k) The Governor shall have the authority to accept, administer and enforce federal programs, program measures and permissive delegations of authority delegated to the Governor by the President of the United States, Congress, or the United States Department of Energy, on behalf of the State of North Carolina, which pertain to actions necessary to deal with an actual or impending energy shortage."
SECTION 4.(j) G.S. 113B-12 reads as rewritten:
"§ 113B-12. Annual reports; contents.
Beginning January 1, 1977, and every
yeartwo years thereafter,
the Energy Policy Jobs Council shall transmit to the Governor,
the Speaker of the House of Representatives, the President Pro Tempore of
the Senate, the chairman of the Utilities Commission and the appropriate
chairmen of the House and Senate committees concerned with energy matters, a
comprehensive report providing a general overview of energy conditions in the
State. On January 1, 1976, the Energy Policy Council shall transmit a
progress report to the public officials named above.
(b) The report shall include, but not be limited to, the following:
(1) An overview of statewide growth and development as they relate to future requirements for energy, including patterns of urban and metropolitan expansion, shifts in transportation modes, modifications in building types and design, and other trends and factors which, as determined by the Council, will significantly affect energy needs;
(2) The level of statewide and multi-county regional energy demand for a five, 10- and 20-year forecast period which, in the judgment of the Council, can reasonably be met, with proposals as to possible energy supply sources;
(3) An assessment of growth trends in energy consumption and production and an identification of potential adverse social, economic, or environmental impacts which might be imposed by continuation of the present trends, including energy costs to consumers, significant increases in air, water, and other forms of pollution, threats to public health and safety, and loss of scenic and natural areas;
(4) An analysis of the role of energy efficiency, renewable energy, improvements to the State's energy infrastructure, and other means in meeting the State's current and projected energy demand;
(6) Recommendations to the Governor and the General Assembly for additional administrative and legislative actions on energy matters;
A summary of the Council's activities since
its inception,the last
report, a description of major plans developed by the Council, an
assessment of plan implementation, and a review of Council plans and programs
for the coming biennium."
SECTION 4.(k) G.S. 113B-21(a) reads as rewritten:
There is hereby createdUpon the declaration of an energy crisis by
the Governor, a Legislative Committee on Energy Crisis Management shall
be created to consist of the Speaker, as chairman, the Speaker pro tempore
of the House of Representatives andRepresentatives, the President
pro tempore Pro Tempore of the Senate, and the majority leader of
the Senate. The Lieutenant Governor shall serve as a nonvoting ex officio
member, provided, however, that he shall vote to break a tie."
SECTION 4.(l) G.S. 113B-23 reads as rewritten:
"§ 113B-23. Administration of plans and procedures.
Upon the declaration of an energy crisis, pursuant to G.S. 113B-20, the
Policy Jobs Council shall become the emergency energy
coordinating body for the State and shall carry out the following duties:
(1) Identify and determine the nature and severity of expected energy shortages;
Provide for daily communications with and gather information from significant
energy producers, distributors, transporters and major consumers, as determined
by the Energy
Policy Jobs Council, to carry out its
responsibilities pursuant to this section;
(3) Provide data, carry out continuing assessments of the crisis situation, and make recommendations to the Governor and to the Legislative Committee for further action.
Upon the declaration of an energy crisis, the Governor shall order the Energy
Jobs Council, the Utilities Commission, the Attorney General and
other appropriate State and local agencies to implement and enforce the
Emergency Energy Program pursuant to G.S. 113B-9 and any emergency rules,
orders or regulations approved pursuant to G.S. 113B-22.
(c) Upon the declaration of an energy crisis, the Governor may employ such measures and give such direction to State and local offices and agencies as may be reasonable and necessary for the purpose of securing compliance with the provisions of this Article and with emergency rules, orders and regulations issued pursuant to G.S. 113B-22."
SECTION 4.(m) G.S. 113B-24(c) reads as rewritten:
The provisions of this Article or any rules, orders or regulations promulgated
pursuant to G.S. 113B-22 may be enforced by bringing an action to enjoin
such acts or practices as may be in violation and, upon a proper showing, a
temporary restraining order or a preliminary or permanent injunction shall be
issued. The relief sought may include a mandatory injunction commanding any
person to comply with any such order, rule or regulation and restitution of
money received in violation of any such order, rule or regulation. The Attorney
General shall bring any action under this subsection upon the request of the
Governor, the Legislative Committee on Energy Crisis Management, the Energy
Jobs Council, or upon his direction if he deems such action
advisable and in the public interest. The Attorney General may institute such
action in the Superior Court of Wake County, or, in his discretion, in the
superior court of the county in which the acts or practices constituting a
violation occurred, are occurring or may occur."
SECTION 5.(a) Technical Conforming Statutory Changes. - The title of Article 1 of Chapter 113B of the General Statutes reads as rewritten:
Policy Jobs Council."
SECTION 5.(b) G.S. 113B-5 reads as rewritten:
"§ 113B-5. Organization of the Council; adoption of rules of procedure therefor.
To facilitate the work of the Energy
Policy Jobs Council and for
administrative purposes, the chairman of the Energy Policy Jobs
Council, with the consent and approval of the members, may organize the work of
the Council so as to carry out the provisions of this Chapter and to insure the
efficient operation of the Council.
Policy Jobs Council shall adopt its own rules of
procedure and shall meet regularly at such times and in such places as it may
deem necessary to carry out its functions.
Policy Jobs Council is authorized to create such
advisory committees as will be needed to assist the Council in its efforts and
to assure adequate citizen-consumer input into those efforts. Members of
advisory committees shall be appointed by the Council for terms not to exceed
the expiration date of terms of then present public members of the
SECTION 5.(c) G.S. 113B-11 reads as rewritten:
"§ 113B-11. Powers and authority.
Policy Jobs Council is authorized to secure directly
from any officer, office, department, commission, board, bureau, institution
and other agency of the State and its political subdivisions any information it
deems necessary to carry out its functions; and all such officers and agencies
shall cooperate with the Council and, to the extent permitted by law, furnish
such information to the Council as it may request.
The Department of Commerce shall provide the staffing capability to the Energy
Jobs Council so as to fully and effectively develop recommendations
for a comprehensive State energy policy as contained in the provisions of this
Article. The Utilities Commission is hereby authorized to make its staff
available to the Council to assist in the development of a State energy
SECTION 5.(d) G.S. 114-4.2D reads as rewritten:
114-4.2D. Employment of attorney for Energy
Policy Jobs Council
and Energy Efficiency Program of the Department of Commerce.
The Attorney General shall assign
an attorney to work full time with the Energy
Policy Jobs Council
and Energy Efficiency Program of the Department of Commerce. Such attorney
shall be subject to all provisions of Chapter 126 of the General Statutes relating
to the State Personnel System. Such attorney shall also perform such additional
duties as may be assigned by the Attorney General."
SECTION 5.(e) G.S. 143-58.5(c) reads as rewritten:
The Fund shall be used to offset the incremental fuel cost of biodiesel and
biodiesel blend fuel with a minimum biodiesel concentration of B-20 for use in
State vehicles, for the purchase of ethanol fuel with a minimum ethanol
concentration of E-85 for use in State vehicles, the incremental vehicle cost
of purchasing AFVs, for the development of related refueling infrastructure,
for the costs of administering the Fund, and for projects approved by the
Policy Jobs Council."
SECTION 5.(f) G.S. 143-345.13 reads as rewritten:
"§ 143-345.13. Reporting of stocks of coal and petroleum fuels.
The Department of
Administration may, with the prior express approval of the Energy
Jobs Council and the Governor, require that all coal and petroleum
suppliers in North Carolina supplying coal, motor gasoline, middle distillates,
residual oils, and propane for resale within the State, file with the
Department of Administration, on forms prepared by the Department, accurate
reports as to the stocks of coal and petroleum products and storage capacities
maintained by the supplier, including the supplier's current inventory and
stock of coal, motor gasoline, middle distillates, residual oils and propane,
the expected time such supplies will last under ordinary distribution demand
and the schedule for receiving additional or replacement stocks. The reports
and the information contained therein shall be proprietary information
available only to regular employees of the Department of Administration, except
that aggregate tables or schedules consolidating information from the reports
may be released if they do not reveal individual report data for any named
supplier. It is further the intent of this section that no information shall be
required from coal and petroleum suppliers, that is, at the time the reports
are requested, already on file with any agency, commission, or department of
It is the intent of this section
that the reports be filed only at such times as the Energy
Council and the Governor determine that an energy crisis as defined in
G.S. 113B-20 exists or may be imminent.
If any petroleum or coal supplier fails to file the accurate reports as may be required by this section for more than 10 days after the date on which any such report is due, the Secretary of Administration is authorized and empowered to petition the district court, Division of the General Court of Justice, in the county in which the principal office or place of business of the supplier is located, for a mandatory injunction compelling the supplier to file the report."
SECTION 6.(a) Miscellaneous Provisions. - Notwithstanding G.S. 113B-3 or any other law to the contrary, the memberships of all members of the Energy Policy Council serving as of the effective date of this act shall be terminated on the effective date of this act.
SECTION 6.(b) The Revisor of Statutes shall make the conforming statutory changes necessary to reflect the transfers under this section. The Revisor of Statutes may correct any reference in the General Statutes to the statutes that are recodified by this section and make any other conforming changes necessitated by this section.
SECTION 6.(c) Upon ratification, the Secretary of State shall furnish certified copies of this act to each member of the North Carolina Congressional delegation, the governors of South Carolina and Virginia, the legislative bodies of South Carolina and Virginia, the Secretary of the United States Department of the Interior, and the President of the United States.
SECTION 6.(d) This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 18th day of June, 2011.
Philip E. Berger
President Pro Tempore of the Senate
Speaker of the House of Representatives
Beverly E. Perdue
Approved __________.m. this ______________ day of ___________________, 2011