FILED SENATE
Apr 6, 2023
GENERAL ASSEMBLY OF NORTH CAROLINA
S.B. 678
SESSION 2023 PRINCIPAL CLERK
S D
SENATE BILL DRS15294-RI-17
Short Title: Promote Clean Energy. (Public)
Sponsors: Senators P. Newton, B. Newton, and Craven (Primary Sponsors).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO REDEFINE "RENEWABLE ENERGY" AS "CLEAN ENERGY," TO PROVIDE
3 THAT THE TERM INCLUDES NUCLEAR RESOURCES AND FUSION ENERGY, AND
4 TO ELIMINATE LANGUAGE IMPEDING CPCN ISSUANCE FOR NUCLEAR
5 FACILITIES.
6 The General Assembly of North Carolina enacts:
7 SECTION 1.(a) G.S. 62-133.8 reads as rewritten:
8 "§ 62-133.8. Renewable Clean Energy and Energy Efficiency Portfolio Standard
9 (REPS).(CEPS).
10 (a) Definitions. – As used in this section:
11 (1) "Combined heat and power system" means a system that uses waste heat to
12 produce electricity or useful, measurable thermal or mechanical energy at a
13 retail electric customer's facility.
14 (2) "Demand-side management" means activities, programs, or initiatives
15 undertaken by an electric power supplier or its customers to shift the timing
16 of electricity use from peak to nonpeak demand periods. "Demand-side
17 management" includes, but is not limited to, load management, electric system
18 equipment and operating controls, direct load control, and interruptible load.
19 (3) "Electric power supplier" means a public utility, an electric membership
20 corporation, or a municipality that sells electric power to retail electric power
21 customers in the State.
22 (3a) "Electricity demand reduction" means a measurable reduction in the
23 electricity demand of a retail electric customer that is voluntary, under the
24 real-time control of both the electric power supplier and the retail electric
25 customer, and measured in real time, using two-way communications devices
26 that communicate on the basis of standards.
27 (4) "Energy efficiency measure" means an equipment, physical, or program
28 change implemented after January 1, 2007, that results in less energy used to
29 perform the same function. "Energy efficiency measure" includes, but is not
30 limited to, energy produced from a combined heat and power system that uses
31 nonrenewable non-clean energy resources. "Energy efficiency measure" does
32 not include demand-side management.
33 (4a) "Fusion" means a reaction in which at least one heavier, more stable nucleus
34 is produced from two lighter, less stable nuclei, typically through high
35 temperatures and pressures, emitting energy as a result.
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 General Assembly Of North Carolina Session 2023
1 (4b) "Fusion energy" means the product of fusion reactions inside a "fusion
2 device," used for the purpose of generating electricity or other commercially
3 usable forms of energy.
4 (5) "New renewable clean energy facility" means a renewable clean energy
5 facility that either:
6 a. Was placed into service on or after January 1, 2007.
7 b. Delivers or has delivered electric power to an electric power supplier
8 pursuant to a contract with NC GreenPower Corporation that was
9 entered into prior to January 1, 2007.
10 c. Is a hydroelectric power facility with a generation capacity of 10
11 megawatts or less that delivers electric power to an electric power
12 supplier.
13 (6) "Renewable "Clean energy certificate" means a tradable instrument that is
14 equal to one megawatt hour of electricity or equivalent energy supplied by a
15 renewable clean energy facility, new renewable clean energy facility, or
16 reduced by implementation of an energy efficiency measure that is used to
17 track and verify compliance with the requirements of this section as
18 determined by the Commission. A "renewable "clean energy certificate" does
19 not include the related emission reductions, including, but not limited to,
20 reductions of sulfur dioxide, oxides of nitrogen, mercury, or carbon dioxide.
21 (7) "Renewable "Clean energy facility" means a facility, other than a
22 hydroelectric power facility with a generation capacity of more than 10
23 megawatts, that either:
24 a. Generates electric power by the use of a renewable clean energy
25 resource.
26 b. Generates useful, measurable combined heat and power derived from
27 a renewable clean energy resource.
28 c. Is a solar thermal energy facility.
29 (8) "Renewable "Clean energy resource" means a solar electric, solar thermal,
30 wind, hydropower, geothermal, or ocean current or wave energy resource; a
31 biomass resource, including agricultural waste, animal waste, wood waste,
32 spent pulping liquors, combustible residues, combustible liquids, combustible
33 gases, energy crops, or landfill methane; waste heat derived from a renewable
34 clean energy resource and used to produce electricity or useful, measurable
35 thermal energy at a retail electric customer's facility; nuclear energy resources,
36 including an uprate to a nuclear energy facility; fusion energy; or hydrogen
37 derived from a renewable clean energy resource. "Renewable "Clean energy
38 resource" does not include peat, a fossil fuel, or nuclear energy resource.or a
39 fossil fuel.
40 (b) Renewable Clean Energy and Energy Efficiency Standards (REPS) (CEPS) for
41 Electric Public Utilities. –
42 (1) Each electric public utility in the State shall be subject to a Renewable Clean
43 Energy and Energy Efficiency Portfolio Standard (REPS) CEPS according to
44 the following schedule:
45
46 Calendar Year REPS CEPS Requirement
47 2012 3% of 2011 North Carolina retail sales
48 2015 6% of 2014 North Carolina retail sales
49 2018 10% of 2017 North Carolina retail sales
50 2021 and thereafter 12.5% of 2020 North Carolina retail sales
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1 (2) An electric public utility may meet the requirements of this section by any one
2 or more of the following:
3 a. Generate electric power at a new renewable clean energy facility.
4 b. Use a renewable clean energy resource to generate electric power at a
5 generating facility other than the generation of electric power from
6 waste heat derived from the combustion of fossil fuel.
7 c. Reduce energy consumption through the implementation of an energy
8 efficiency measure; provided, however, an electric public utility
9 subject to the provisions of this subsection may meet up to twenty-five
10 percent (25%) of the requirements of this section through savings due
11 to implementation of energy efficiency measures. Beginning in
12 calendar year 2021 and each year thereafter, an electric public utility
13 may meet up to forty percent (40%) of the requirements of this section
14 through savings due to implementation of energy efficiency measures.
15 d. Purchase electric power from a new renewable clean energy facility.
16 Electric power purchased from a new renewable clean energy facility
17 located outside the geographic boundaries of the State shall meet the
18 requirements of this section if the electric power is delivered to a
19 public utility that provides electric power to retail electric customers
20 in the State; provided, however, the electric public utility shall not sell
21 the renewable clean energy certificates created pursuant to this
22 paragraph to another electric public utility.
23 e. Purchase renewable clean energy certificates derived from in-State or
24 out-of-state new renewable clean energy facilities. Certificates derived
25 from out-of-state new renewable clean energy facilities shall not be
26 used to meet more than twenty-five percent (25%) of the requirements
27 of this section, provided that this limitation shall not apply to an
28 electric public utility with less than 150,000 North Carolina retail
29 jurisdictional customers as of December 31, 2006.
30 f. Use electric power that is supplied by a new renewable clean energy
31 facility or saved due to the implementation of an energy efficiency
32 measure that exceeds the requirements of this section for any calendar
33 year as a credit towards the requirements of this section in the
34 following calendar year or sell the associated renewable clean energy
35 certificates.
36 g. Electricity demand reduction.
37 (c) Renewable Clean Energy and Energy Efficiency Standards (REPS) (CEPS) for
38 Electric Membership Corporations and Municipalities. –
39 (1) Each electric membership corporation or municipality that sells electric power
40 to retail electric power customers in the State shall be subject to a Renewable
41 Clean Energy and Energy Efficiency Portfolio Standard (REPS) (CEPS)
42 according to the following schedule:
43
44 Calendar Year REPS CEPS Requirement
45 2012 3% of 2011 North Carolina retail sales
46 2015 6% of 2014 North Carolina retail sales
47 2018 and thereafter 10% of 2017 North Carolina retail sales
48 (2) An electric membership corporation or municipality may meet the
49 requirements of this section by any one or more of the following:
50 a. Generate electric power at a new renewable clean energy facility.
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1 b. Reduce energy consumption through the implementation of
2 demand-side management or energy efficiency measures.
3 c. Purchase electric power from a renewable clean energy facility or a
4 hydroelectric power facility, provided that no more than thirty percent
5 (30%) of the requirements of this section may be met with
6 hydroelectric power, including allocations made by the Southeastern
7 Power Administration.
8 d. Purchase renewable clean energy certificates derived from in-State or
9 out-of-state renewable clean energy facilities. An electric power
10 supplier subject to the requirements of this subsection may use
11 certificates derived from out-of-state renewable clean energy facilities
12 to meet no more than twenty-five percent (25%) of the requirements
13 of this section.
14 e. Acquire all or part of its electric power through a wholesale purchase
15 power agreement with a wholesale supplier of electric power whose
16 portfolio of supply and demand options meets the requirements of this
17 section.
18 f. Use electric power that is supplied by a new renewable clean energy
19 facility or saved due to the implementation of demand-side
20 management or energy efficiency measures that exceeds the
21 requirements of this section for any calendar year as a credit towards
22 the requirements of this section in the following calendar year or sell
23 the associated renewable clean energy certificates.
24 g. Electricity demand reduction.
25 (d) Compliance With REPS CEPS Requirement Through Use of Solar Energy Resources.
26 – For calendar year 2018 and for each calendar year thereafter, at least two-tenths of one percent
27 (0.2%) of the total electric power in kilowatt hours sold to retail electric customers in the State,
28 or an equivalent amount of energy, shall be supplied by a combination of new solar electric
29 facilities and new metered solar thermal energy facilities that use one or more of the following
30 applications: solar hot water, solar absorption cooling, solar dehumidification, solar thermally
31 driven refrigeration, and solar industrial process heat. The terms of any contract entered into
32 between an electric power supplier and a new solar electric facility or new metered solar thermal
33 energy facility shall be of sufficient length to stimulate development of solar energy; provided,
34 the Commission shall develop a procedure to determine if an electric power supplier is in
35 compliance with the provisions of this subsection if a new solar electric facility or a new metered
36 solar thermal energy facility fails to meet the terms of its contract with the electric power supplier.
37 As used in this subsection, "new" means a facility that was first placed into service on or after
38 January 1, 2007. The electric power suppliers shall comply with the requirements of this
39 subsection according to the following schedule:
40 Requirement for Solar
41 Calendar Year Energy Resources
42 2010 0.02%
43 2012 0.07%
44 2015 0.14%
45 2018 0.20%
46 (e) Compliance With REPS CEPS Requirement Through Use of Swine Waste Resources.
47 – For calendar year 2018 and for each calendar year thereafter, at least two-tenths of one percent
48 (0.2%) of the total electric power in kilowatt hours sold to retail electric customers in the State
49 shall be supplied, or contracted for supply in each year, by swine waste. The electric power
50 suppliers, in the aggregate, shall comply with the requirements of this subsection according to
51 the following schedule:
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1
2 Requirement for Swine
3 Calendar Year Waste Resources
4 2012 0.07%
5 2015 0.14%
6 2018 0.20%
7 (f) Compliance With REPS CEPS Requirement Through Use of Poultry Waste
8 Resources. – For calendar year 2014 and for each calendar year thereafter, at least 900,000
9 megawatt hours of the total electric power sold to retail electric customers in the State or an
10 equivalent amount of energy shall be supplied, or contracted for supply in each year, by poultry
11 waste combined with wood shavings, straw, rice hulls, or other bedding m