In 2021, North Carolina saw a collaboration between its Republican lawmakers and Democratic Governor to pass a groundbreaking energy law aimed at significantly reducing power plant emissions by 2030, with the ultimate goal of achieving carbon neutrality. Governor Roy Cooper heralded this legislation as a step toward a reliable and affordable clean energy future during its signing ceremony in October 2021, calling it “a new beginning.”
However, amid shifting federal priorities, the Republican-dominated state legislature is now attempting to rescind the law’s mandate to take “all reasonable steps” to reduce carbon dioxide emissions by 70% from 2005 levels by 2030. The proposal doesn’t remove the goal of reaching carbon neutrality by 2050, as still mandated by the 2021 legislation.
Proponents of the Senate bill argue that eliminating the 2030 target would allow Duke Energy, North Carolina’s primary electric utility, to explore more cost-effective power sources and curb potential electricity rate increases needed to achieve the 2050 standard. They also note that state regulators have already exercised their power to delay the interim deadline, as allowed by the current law.
This legislative effort coincides with the federal rollback of environmental and climate policies proposed by former President Donald Trump’s administration, which critics fear may increase pollution and jeopardize public health. Supporters claim these rollbacks are designed to decrease living costs and stimulate the economy.
State Senate leader and bill sponsor Phil Berger praised Trump’s actions on a social platform, emphasizing cost reduction for families and the encouragement of new nuclear facilities in North Carolina as key goals. Across the country, at least 17 states, mainly Democrat-controlled, have set laws for net-zero power plant emissions or 100% renewable energy targets. North Carolina and Virginia are unique in the Southeast for such legislation.
Some environmental groups in North Carolina expressed dissatisfaction with the original 2021 law, citing a lack of low-income customer assistance and potential loopholes delaying the 2030 mandate. They now criticize the Senate bill passed in March as a hindrance to climate progress, benefiting Duke Energy financially. The 2021 law also allows the utility to seek multiyear rate hikes and performance-based incentives.
Chris Herndon, Director of the North Carolina Sierra Club, accused Duke Energy of trying to abandon its agreed-upon carbon reduction goals, due to its advantage from a streamlined rate-setting process.
Last year, the state Utilities Commission, which oversees rates and services for public utilities, acknowledged that the 70% reduction target by 2030 was “no longer reasonable or executable,” pushing the deadline by at least four years. If the interim goal is discarded, it might mean halting or delaying current solar and wind energy initiatives and increasing reliance on natural gas in the coming decade, according to models by Duke Energy and a consumer representative state agency.
Outgoing Sen. Paul Newton, a retired Duke Energy executive and bill sponsor, argued that the interim target prevents the commission from choosing cost-effective power generation options. The bill would also permit building a large nuclear plant in the future.
Senate Republicans believe removing the interim target could save customers by reducing Duke Energy’s projected expenses by $13 billion over 25 years. Democrats, however, have challenged this figure and advocate retaining an interim aim. Democratic Sen. Julie Mayfield emphasized the importance of having goals to ensure progress towards the 2050 target.
The bill, which has moved to the House, also proposes permitting Duke Energy to raise electric rates incrementally during new nuclear or gas plant construction rather than waiting for project completion. Newton claims this would mitigate drastic rate spikes, thereby managing customer costs better. Critics argue it may unjustly augment Duke Energy’s profits even if the projects remain unfinished.
Duke Energy supports the bill, citing it as a means to advance efficient power generation economically and swiftly, echoing the commission’s directions from the previous year. The North Carolina Chamber endorses the bill, while some businesses dissent.
If passed, the final bill would be presented to Governor Josh Stein, who opposes the measure, asserting it would negatively impact electric consumers and the state’s clean-energy economic sector. Stein’s spokesperson stressed the need to find solutions that create jobs and reduce costs for North Carolina residents, rather than increasing their financial burdens.
As Democrats hold sufficient legislative seats to uphold Stein’s vetoes if they act in unison, Duke Energy maintains allies in both political ranks, with three Democrats having backed the Senate bill alongside Republicans. Any potential uncertainty surrounding the bill could increase following Newton’s recent resignation from the Senate for a university position.