GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
S 3
SENATE BILL 709
Commerce Committee Substitute
Adopted 5/4/11
Third Edition Engrossed 5/10/11
Short Title: Energy Jobs Act. |
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Sponsors: |
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Referred to: |
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April 20, 2011
A BILL TO BE ENTITLED
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 have created the Outer Continental Shelf Governors Coalition for the greater coordination between the state and federal governments on offshore energy exploration, development, and production as well as calling for a better understanding 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 costsharing 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. 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 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) Fifteen percent (15%) 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 coastal conservation, including, but not limited to, beach and inlet management projects, channel navigation and maintenance, public beach and water access, water quality management, as well as fisheries and shellfish restoration.
(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.
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. Onshore shale gas. - The Department of Environment and Natural Resources shall, in conjunction with the Energy Jobs Council, created in G.S. 113B-2, as amended by Section 4 of this act, provide a comprehensive report to the Governor, the General Assembly, 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 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 Alabama, 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 safety merits of shale gas exploration and energy production and, where appropriate, outline processes for the provision of permit oversight, approval, and management.
SECTION 4.(a) Amend Energy Policy Act. - The title of Chapter 113B of the General Statutes reads as rewritten:
"North 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:
(1) Energy is
essential to the health, safety and welfare of the people of this State and to
the workings of the State economy;economy.
(2) 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;
(3) It is 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.
(4) 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.
(5) It is the
expressed intent of this Chapter to provide for development of such a unified domestic
energy policy for the State of North Carolina.Carolina 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 Council.
(a) 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 of Commerce.
(b) 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.
(c) The Energy 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.
(a) The Energy 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.
(3) 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.
(b) 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.
(c) The public
members of the Energy Policy Jobs Council shall have the following
qualifications:qualifications and shall be appointed as follows:
(1) One member shall
be experienced in the electric power industry;a representative of an
investor-owned electric public utility, to be appointed by the Governor.
(2) 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;
(3) 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.
(4) 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.
(5) 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.
(6) One member 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.
(7) One member shall
be knowledgeable of alternative and renewable sources of energy;energy,
other than wind energy, to be appointed by the Speaker of the House of
Representatives.
(8) One member 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 Representatives.
(9) Repealed by Session Laws 2009-446, s. 4, effective August 7, 2009.
(10) One 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.
(11) One 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 of Representatives.
(12) One 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.
(a) 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.
(b) In case of a
vacancy in the membership on the Energy PolicyJobs 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.
(c) 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 PolicyJobs 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:
(1) To develop and
recommend to the Governor and the General Assembly a comprehensive 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.
(2) 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 policy;policy.
(3) 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.
(a) The Energy 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;
(6) 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.
(g) At least every
two years and whenever such changes take place as would significantly affect
energy supply or demand in North Carolina, the Energy Policy 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.
(a) The Energy 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.
(a) The Energy 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.
(b) Within four months of July 1, 1975:
(1) 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.
(2) Each major oil
producer doing business in this State as determined by the Energy 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.
(c) The Energy 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.
(d) The Energy Policy
Jobs Council shall collect from all relevant governmental agencies
any existing contingency plans for dealing with sudden energy shortages
or information related thereto.
(e) The Energy 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. 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;
(g) The Energy 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.
(a) 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;
(7) 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:
"(a) 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.
(a) Upon the
declaration of an energy crisis, pursuant to G.S. 113B-20, the Energy 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;
(2) 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.
(b) Upon the
declaration of an energy crisis, the Governor shall order the Energy Policy 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:
"(c) 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 Policy
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:
"Article 1.
Energy 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.
(a) 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.
(b) The Energy 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.
(c) The Energy 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 Council."
SECTION 5.(c) G.S. 113B-11 reads as rewritten:
"§ 113B-11. Powers and authority.
(a) The Energy 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.
…
(e) The Department
of Commerce shall provide the staffing capability to the Energy Policy 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 directed to
make its staff available to the Council to assist in the development of a State
energy policy."
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:
"(c) 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 Energy 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 Policy 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 State government.
It is the intent of this section that the reports be filed
only at such times as the Energy Policy Jobs 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.