NC GOP Lawmakers Challenge Clean Energy Policies Amid Federal Shifts

In 2021, a significant agreement was reached among North Carolina lawmakers, Governor Roy Cooper, and public energy utilities to strive towards carbon neutrality by 2050 for the state’s largest electric generation facilities. This agreement included an interim target of a 70% reduction in emissions by 2030, marking a pivotal step for the state’s clean energy future.

Currently, some legislators are looking to revise this commitment by eliminating the interim 2030 target, signaling a retreat from earlier climate-friendly policies. Additional legislative proposals this session include phasing out solar energy property tax exemptions, asserting legislative control over environmental agreements, and expanding the definition of clean energy to include older nuclear and hydroelectric plants.

In a move last year, the legislature also reduced the governor’s influence over the Utilities Commission, diminishing the governor’s control over the state’s energy regulation.

These developments suggest a pivot away from North Carolina’s previously robust clean energy initiatives. According to State Rep. Pricey Harrison, D-Guilford, legislators seem “emboldened” by former President Trump’s national energy strategy, which has included efforts to dismantle major climate legislation such as the Inflation Reduction Act.

Despite this pushback, Governor Josh Stein’s veto power could serve as a check on these environmental rollbacks.

North Carolina’s Position in Clean Energy

North Carolina has emerged as a leader in the clean energy sector, notably in solar power and electric vehicle advancements. This status began to take shape following a 2007 law mandating utilities to generate electricity from renewable sources, as explained by Josh Brooks from the North Carolina Sustainable Energy Association.

The solar market in North Carolina expanded rapidly, making solar energy development more cost-effective than in many other states. Consequently, the state now ranks second in the nation for solar deployment. In 2021, Gov. Cooper set an ambitious target for offshore wind energy, aiming for eight gigawatts of capacity by 2040.

Federal support through the Bipartisan Infrastructure Law and the Inflation Reduction Act injected billions into North Carolina’s clean energy sector, leading to over $21 billion in private investment and the creation of more than 17,000 jobs.

Challenges from Federal Policy Shifts

Under the Trump administration, North Carolina’s clean energy progress faced potential setbacks. Trump’s initiatives included freezing federal climate funding and promoting energy sources like coal and natural gas, actions that have created uncertainty within the clean energy industry, according to Brooks.

Further, Trump’s policy changes have jeopardized funding for electric vehicle infrastructure and the work of EPA scientists in North Carolina, impacting projects like highway charging stations, said Mary MacLean Asbill from the Southern Environmental Law Center.

These federal moves have sparked proposals from congressional Republicans to repeal clean energy tax credits, which could undermine ongoing investments and projects.

Legislative Proposals and Economic Implications

Senate Bill 261, which proposes to eliminate the 2030 interim emissions reduction goal, has become a focal point of the legislative session. Proponents argue it will save billions, but critics, including Stephen Smith from the Southern Alliance for Clean Energy, warn of long-term costs and a lack of accountability.

The bill’s inclusion of construction work in progress (CWIP) provisions is controversial, drawing parallels to costly unfinished projects in other states.

Additionally, the Farmland Protection Act aims to phase out solar tax exemptions, despite solar developments constituting a minor fraction of farmland loss. Critics argue that this could disincentivize solar projects that have been economically beneficial, particularly in rural areas.

Linda Birnbaum, a former director at the National Institute of Environmental Health Sciences, emphasized the urgency of addressing climate change’s impacts, which are backed by extensive research. Smith and Brooks stress the importance of maintaining diverse energy sources to ensure grid reliability.

Amidst these legislative challenges, the economic benefits of clean energy remain a strong argument for maintaining North Carolina’s current trajectory. The state’s commitment to clean energy not only supports environmental goals but also aligns with the interests of major companies seeking sustainable energy solutions.