Keith Clark Lee County North Carolina

From the Office of Representative Jimmy L. Love, Sr. September 3, 2009

This session, I worked with my colleagues in the House to be good stewards of the environment by promoting energy conservation, the use of alternative energy sources and the development of clean energy technology. Energy efficiency and moving toward a more sustainable, greener economy is a top priority for many North Carolina lawmakers.

The following information highlights just some of the legislation that we have passed this session to help us achieve these goals.

I hope you will contact me if you have questions, or if I can be of service. Thank you as always for your support and your interest in our state.


Conservation

_Counties and municipalities in North Carolina will now be authorized to provide development incentives in exchange for reductions in energy consumption under a new state law (S.B. 52 - S.L. 2009-95). More specifically, counties and municipalities will be able to grant incentives to a developer or builder if they agree to construct a new development or reconstruct an existing development in a way that significantly reduces energy consumption.

_The state Department of Administration (DOA) will be directed to consider the fuel economy of state vehicles under a new state law (H.B. 1079 - S.L. 2009-241). Formerly, the law did not require the department to consider fuel economy when buying a new vehicle. The intent of the bill is to reduce the state’s carbon footprint and reduce fuel costs. In addition, DOA will be directed to submit a report outlining the quantity and cost of fuel saved.

_A new state law promotes voluntary, year-round conservation and water use efficiency measures by commercial car washes (H.B. 1236 - S.L. 2009-480). The legislation outlines a number of guidelines by which a trade or professional organization representing commercial car washes may establish a voluntary water conservation and water use efficiency certification program to encourage and promote the use of year-round water conservation and water use efficiency measures.


Renewable Energy

_The sunset for the credit for investing in renewable energy property has been extended under a new state law (H.B. 512 - S.L. 2009-548). The credit was originally set to sunset on January 1, 2011, but it will now be extended to January 1, 2016. The intent of the bill is to offer an incentive to nonresidential property owners to invest in renewable energy property.

_A new state law will authorize cities and counties to establish loan programs to finance the installation of distributed generation renewable energy sources or energy efficiency improvements that are permanently affixed to real property (HB 1389 - S.L. 2009-522). The law was enacted because members of the General Assembly found that it is in the best interest of the citizens of North Carolina to promote and encourage renewable energy and energy efficiency within the State in order to conserve energy, promote economic competitiveness, and expand employment in the State.

_Current limitations on city ordinances and county ordinances that regulate the installation of solar panels for single-family residences applicable to all residential property and the current limitations on deed restrictions that regulate the installation of solar panels for single-family residences will be applied to all residential property except certain multi-story condominiums under a new state law (H.B. 1387 - S.L. 2009-553). The law is intended to protect the public health, safety, and welfare by encouraging the development and use of solar resources and by prohibiting deed restrictions, covenants, and other similar agreements that could have the ultimate effect of driving the costs of owning and maintaining a residence beyond the financial means of most owners.


Miscellaneous

_Certain North Carolina dams in connection with electric generating facilities will be subject to the Dam Safety Act under a new state law (S.B. 1004 - S.L. 2009-390). The law allows the Department of Environmental and Natural Resources to inspect the structural soundness of coal ash dams. Previously, utility companies submitted their own engineering reports to the state Utilities Commission and were not subject to inspection by an outside entity. The law will also permit an electric public utility that purchases or constructs a carbon offset facility to retain the fuel and fuel-related cost savings resulting from the purchase or construction of the facility under certain conditions.

_A new state law has been enacted pertaining to energy performance contracting (S.B. 304 - S.L. 2009-375). Previously, there was a $100 million cap on projects that use guaranteed energy and water savings to pay for energy and water efficiency retrofits in state government buildings and we have hit that cap. We are the only state with a cap, which this law expands to $500 million. The law saves the taxpayers money and will have the added bonus of reducing the state’s carbon footprint. In addition it is expected to stimulate as many as 5,000 jobs (an average of 13 jobs per $1 million invested in these contracts).

_The State Energy Office has been transferred from the Department of Administration to the Department of Commerce under a new state law (H.B. 1481 - S.L. 2009-446). The law also transfers the Residential Energy Conservation Assistance Program from the Department of Health and Human Services to the Energy Office of the Department of Commerce, and makes various changes to the Energy Policy Act of 1975.

_This year’s budget will allocate $5 million of the funds received by the state under the American Recovery and Reinvestment Act and appropriated to the State Energy Office to the Green Business Fund. The Green Business Fund provides grants to private businesses with less than 100 employees, non-profit organizations, and state agencies to encourage the growth of a green economy in North Carolina.

Prepared with the assistance of the Speaker’s Office of Communications