2019 North Carolina Legislative Scorecard A Message From Our Director Dear Conservation Voter, For the last nine years, the General Assembly has been bent on rolling back decades of environmental progress that protected North Carolinians’ health from polluters’ worst abuses, advanced our clean energy economy, and preserved the natural beauty that makes this state a great place to live, visit, and do business. But the pendulum began to swing back in 2017. With significant help from NCLCV, North Carolinians showed a 30-year Duke Energy employee the door and welcomed Roy Cooper to the governor’s mansion. Gov. Cooper has lived up to his promise on our issues, bringing science back to decision-making, and putting public health and environmental enforcement back at the forefront of our government’s priorities. In October 2018, he signed Executive Order 80, setting in motion a plan to move our state to a 100% clean energy economy with net-zero carbon emissions by 2050. That plan was released a few months ago, and Gov. Cooper’s adminis- tration is moving to enact the parts that it can, like electrifying state-owned vehicles, expanding electric vehicle charging infrastructure, and improving state-owned building energy efficiency. But fully enacting the plan requires major legislative action, and right now, legislative leaders are throwing up roadblocks and sending us in the opposite direction. The 2019 session was the longest in almost 20 years, and legislators threw a lot of spaghetti at the wall to see what would stick. They tried to allow Duke Energy to pad its profits and pay for coal ash clean up by raising your rates for three years at a time. They floated making electric and hybrid vehicle registration fees the highest in the South. They tried again to renew the wind energy ban across an even wider swath of our coast than their last moratorium. They wanted to let billboard companies clear more trees without local input. And they continue to shelve any bills that would tackle the climate crisis, boost our vital clean energy economy, fully staff environmental regulators, or deal seriously with persistent problems like coal ash, GenX, hog waste, and offshore drilling. With your advocacy and the growing ranks of environmental champions backing up Gov. Cooper’s vetoes after the 2018 elections, we have — at least so far — stopped the Duke rate hike, the wind ban, the billboard bill, the electric car rate hike, and other measures. But others we could not prevent, and just a few positive measures passed this session. It’s clear the current majority isn’t serious about protecting us from polluters or the worst climate impacts. So to see Gov. Cooper’s plan come to fruition, we need our legislative Green Caucus to become a majority caucus in 2021. Please use this scorecard to hold your legislators accountable for their votes. And use it when you consider your own vote next year. Thanks, Carrie Clark Executive Director 4 Long Session Energy Rules the Day in 2019 Long Session Duke’s Dirty Dealing The most notorious legislation this session was cleaning up coal ash, and hindering progress Senate Bill 559, better known as the Duke Energy toward a clean energy economy. rate hike bill. Though S559 was first introduced in early April, a Upon first glance, the bill appeared noncontrover- drawn-out partisan stalemate prevented the bill sial, with its first section focusing on financing for from appearing on Gov. Cooper’s desk. The bill storm recovery costs. Even its second section on passed the Senate 27-21 in early May, but took over utilities employing alternative rate plans explicitly two months to make its way to the House floor, called for rate setting to be fair to both utilities and where it was repeatedly pulled from the calendar consumers, something everyone can get on board for a lack of votes. with. In a last-ditch bid for Democratic support, House However, Duke Energy expertly worked with bill Republicans amended the bill to require that any sponsors to write the language to its benefit. The Duke overearnings are invested in infrastruc- bill’s implementation would have boosted Duke’s ture projects for “low income areas.” The reality, profits at North Carolina ratepayers’ expense. however, is that the bill still lacked the teeth to ensure such communities receive any benefit from Of most concern was the bill’s second section, Duke’s “investment.” Written in broad terms, the which would have authorized multi-year rate plans, amendment would have potentially allowed Duke and would have likely circumvented the current to “double dip,” earning profits from new infrastruc- yearly review of utility rates. By one estimate, if ture without returning benefits and excess income S559 had been enacted under the current rate to areas in need. plan, Duke would have stood to reap more than $100 million in additional annual profits, while Additionally, despite a supposed interest in fairness potentially saddling consumers with the cost of for both the utility and the consumer, legislators 6 avoided engagement with ratepayers and other But the House had the courage of its convictions, stakeholders during the bill drafting process. In its and refused to pass the conference report. So the original form, the bill’s passage would have been controversial second section was removed again, a hard blow to North Carolinians and to the health and the bill passed with only the language on storm of our environment, as Duke continues its dirty securitization. monopoly. This was a truly bipartisan effort, but it also The good news is our advocacy against the bill shows the strength of our movement in electing ultimately won the day. The House voted to make the right leaders and holding their feet to the fire. the second section a larger study of ratemaking procedures, including multi-year rate increases. The improved bill passed the House overwhelm- ingly. However, the Senate did not concur with that change, and the bill went to a conference commit- tee. In conference, the study was removed, revert- ing the bill to its original structure, allowing Duke the extra earnings. 7 An Unexpected Win for Solar In what could have been an enormous burden on In the end, S568 disappeared entirely. Instead, solar North Carolina’s thriving solar industry, Senate Bill panel disposal requirements are now addressed in 568 sought to create rules for what happens when House Bill 329, which largely covers electric vehicle a solar farm is decommissioned, but contained charging stations and small hydroelectric power hefty costs, and was uninformed by research. facilities. It was amended to add a section requir- ing the Environmental Management Commission Bill sponsors Paul Newton, Bill Rabon, and Ralph and Department of Environmental Quality (DEQ) to Hise crafted the bill in a supposed attempt to be develop disposal and recycling regulations before “good stewards of the environment.” And at face January 1, 2022. This change allows ample time value, the bill could be construed as environmen- for DEQ to research best practices regarding solar tally sound — proper cleanup, disposal, and recy- panel waste disposal. cling of renewable energy material are key in a con- tinued push to eliminate environmental hazards, Additionally, the original bill required solar compa- reduce fossil fuel dependence, and protect North nies to provide upfront financial assurance before Carolinians’ health. being granted a permit for solar operation. Instead, the new bill only requires DEQ to determine the Both those in the environmental field and the solar necessity of financial assurance requirements industry, however, found much cause for concern. and to ensure that utility-scale solar projects are The bill initially required heavy up-front insurance properly decommissioned when their service is costs for new solar projects, which would have complete. caused plummeting solar installation costs to sky- rocket instead. Many also argued the bill’s disposal On Monday, July 1, the Senate passed H329 unan- provisions are already common practices incorpo- imously. Just a week later, the House concurred rated into solar companies’ contracts. overwhelmingly, and Gov. Cooper signed the bill on July 19. Overall, the bill simply lacked a factual, research- based foundation or enough stakeholder input to stand as a sound piece of legislation. But in a surprising turn of events, Newton made good on his claim he simply wanted to ensure a clean end of life for solar technology. Committee testimony from solar industry representatives brought assurance that the senator was working closely with them to create a more informed, col- laborative iteration of the bill. 8 Wind Ban No More In a bout of déjà vu from last session, Senate military operations. Both the Clearinghouse and Majority Leader Harry Brown brought his unpopu- the Federal Aviation Administration already review lar wind energy ban back from the dead. concerns with siting and obstruction, rendering this ban redundant2. On top of that, the military has The 18-month moratorium on wind projects Brown openly declared its support for renewables.3 snuck into an otherwise good 2017 solar energy bill expired at the end of 2018, and clean energy advo- In the beginning of June, a Senate Finance cates breathed a cautious sigh of relief. But Brown Committee amendment sought to address public and a few other Senate leaders seemed set on con- backlash by shrinking the moratorium from a per- tinuing their string of poor environmental choices. manent ban to three years. In committee, Sen. In March, Brown introduced Senate Bill 377, this Jim Perry assured the public this period would time proposing a permanent ban on wind facili- be necessary to review and create guidelines for ties across a map that included nearly the entire turbine interference with flight projects.