A New Bill Would Roll Back NC’s Climate Commitments and Reward Duke Energy’s Dirty Energy

The NC General Assembly gave its final approval to legislation that would eliminate a key climate action goal now contained in state law, and shift massive risks in the cost of new fossil gas and nuclear plants from Duke stockholders to public ratepayers. Clean energy, environmental, and consumer protection groups are urging Gov. Josh Stein to veto SB 266.

Much of the media attention around the bill focused on its elimination of a key interim climate action goal, the reduction of carbon dioxide emissions from NC power plants by 70% from 2005 levels by 2030. That goal was included in 2021 legislation passed with bipartisan support from legislators and signed by then-Gov. Roy Cooper. 

Environmental Groups Call for a Veto

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

Other opponents, including the NC League of Conservation Voters’ director of governmental affairs Dan Crawford, pointed out that the financial changes in the bill were even more insidious. 

“This bill is a blatant giveaway to Duke Energy – forcing everyday customers to foot the bill for expensive new power plants, even if they never get built, while shielding Duke’s shareholders from any risk. It also shifts more of the cost burden from big industrial users to hardworking families and households. Lawmakers who support this bill are voting to bail out Duke shareholders, while locking us into higher prices and more dirty energy,” said Crawford. “Gov. Stein and North Carolina must reject this bill if we want to remain a national leader in clean energy and continue to be the #1 state in the nation for rural clean energy jobs.” 

Low-Income Households Will Pay The Price

In a news release last week, the North Carolina Justice Center pointed out that the impact of shifting that burden would fall hardest on low-income households who can least afford it. “SB 266 will harm hundreds of thousands of lower-income families across our state, who already have utility bills that they cannot afford. This legislation shifts risks and costs away from utility shareholders and industrial customers and places those burdens on residential customers by changing power plant financing protections and fuel cost allocations.” The group noted that the Public Staff of the NC Utility Commission estimates that SB 266 will result in a $24.8 million cost shift at minimum from non-residential customers to residential customers. 

“Instead of taking steps to protect people in North Carolina from rising energy bills, state lawmakers have chosen a path that enriches Duke Energy shareholders,” said Claire Williamson, Senior Energy Policy Advocate at the NC Justice Center. “Our state’s wealthiest companies should not get even more financial rewards at the expense of North Carolina households, which is what this legislation does.”