Ratepayer Protection Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 5
SENATE BILL 730
Second Edition Engrossed 5/7/25
House Committee Substitute Favorable 5/21/26
House Committee Substitute #2 Favorable 6/2/26
Fifth Edition Engrossed 6/3/26

Short Title: Ratepayer Protection Act. (Public)
Sponsors:
Referred to:
March 26, 2025
*S730-v-5*
A BILL TO BE ENTITLED 1
AN ACT TO ESTABLISH REQUIREMENTS FOR SIT ING AND OPERATION OF DATA 2
CENTERS AND TO MAKE VARIOUS CHANGES TO S TATE ENERGY AND 3
UTILITIES POLICY. 4
The General Assembly of North Carolina enacts: 5
6
PART I. REQUIREMENTS FOR DATA CENTERS 7
8
REQUIREMENTS FOR LOCAL DEVELOPMENT APPROVAL PROCESS 9
SECTION 1.(a) Article 9 of Chapter 160D of the General Statutes is amended by 10
adding a new section to read: 11
"§ 160D-974. Site assessment required for data centers; other requirements. 12
(a) Prior to any a pproval of a rezoning application, special exception, conditional or 13
special use permit, or building permit for the siting of a new data center, a local government shall 14
require that an applicant: 15
(1) Perform and submit a site assessment to examine the sound profile of the data 16
center on residential units and schools located within 500 feet of the data 17
center property boundary. A locality may also require that a site assessment 18
examine the effect of the proposed facility on the community with regard to 19
(i) ground and surface water resources , (ii) air quality , (iii) thermal plumes , 20
(iv) agricultural resources , (v) parks, (vi) registered historic sites , and (vii) 21
forestland on the data center site or immediately contiguous land. 22
(2) Submit an attestation that the data center will employ a closed-loop water or 23
a liquid cooling system that will result in minimization of water consumption 24
for cooling systems to the maximum extent possible , in compliance with 25
G.S. 143-355.5A. 26
(b) The site assessment submitted to a local government pursuant to subdivision (1) of 27
subsection (a) of this section shall be used by the local government to assess consistency with 28
the policies of the local government's comprehensive plan, if any, and compliance with the local 29
government's adopted noise ordinances, zoning ordinance provisions, and other applicable laws 30
and regulations, if any. 31
(c) This section shall not apply to a site with an existing legislative , quasi-judicial, or 32
administrative approval where an applicant is seeking an expansion or modification of an already 33
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existing or approved facility and such expansion does not exceed an additional monthly electrical 1
demand of 100 megawatts or more. 2
(d) For purposes of this section, the term "data center " means a facility, campus of 3
facilities, or array of interconnected facilities used by an entity or other business enterprise for 4
the primary purpose of storing, retrieving, managing, and processing digital data, which has a 5
peak monthly electricity demand of 100 megawatts or greater. The term "data center" does not 6
include a facility or portion of a facility containing electronic equipment that is incidental to and 7
used in support of a business whose primary business activity is not the storing, retrieving, 8
managing, and processing of digital data. 9
(e) Nothing in this section shall be construed to prohibit, limit, or otherwise supersede 10
existing local zoning authority." 11
SECTION 1.(b) This section is effective when it becomes law and applies to 12
applications for rezoning, special exceptions, condit ional or special use permits, or building 13
permits submitted on or after that date. 14
15
WATER USE STANDARDS FOR DATA CENTERS 16
SECTION 2.(a) Article 38 of Chapter 143 of the General Statutes is amended by 17
adding a new section to read: 18
"§ 143-355.5A. Water use standards for data centers. 19
(a) The Department shall adopt rules establishing water use standards for data centers to 20
ensure the protection of surface water and groundwater resources. 21
(b) The water use standards adopted by the Department : (i) may require data centers to 22
employ closed-loop or reclaimed water systems as necessary to avoid impacts to areas with water 23
availability concerns; and (ii) shall not permit a data center to use an evaporative cooling system. 24
For purposes of this subsection, an "evaporative cooling system" means any cooling system that 25
consumes water through evaporation as a primary method of heat rejection. 26
(c) For purposes of this section, the term "data center" means a facility, campus of 27
facilities, or array of interconnected f acilities used by an entity or other business enterprise for 28
the primary purpose of storing, retrieving, managing, and processing digital data, which has a 29
peak monthly electricity demand of 100 megawatts or greater. The term "data center" does not 30
include a facility or portion of a facility containing electronic equipment that is incidental to and 31
used in support of a business whose primary business activity is not the storing, retrieving, 32
managing, and processing of digital data." 33
SECTION 2.(b) The Department of Environmental Quality shall adopt permanent 34
rules to implement the requirements of this section no later than September 1, 2026. The rules 35
adopted shall apply only to data centers for which no local development approval s or State 36
permits, certifications, or authorizations have been issued for siting of the data center on or before 37
the date the rules become effective. 38
39
PROHIBIT CERTAIN FOREIGN OWNERSHIP OF DATA CENTERS AND LAND 40
UPON WHICH DATA CENTERS ARE SITED 41
SECTION 3.(a) Chapter 64 of the General Statutes is amended by adding a new 42
Article to read: 43
"Article 5. 44
"Prohibit Adversarial Foreign Government Ownership of Data Centers and Land on which Data 45
Centers are Located. 46
"§ 64-64. Definitions. 47
As used in this Article, the following definitions apply: 48
(1) Adversarial nation. – One of the following: 49
a. China. 50
b. Iran. 51
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c. North Korea. 1
d. Russia. 2
(2) Data center. – A facility, campus of facilities, or array of interconnected 3
facilities used by an entity or other business enterprise for the primary purpose 4
of storing, retrieving, managing, and processing digital data, which has a peak 5
monthly electricity demand of 100 megawatts or greater. The term "d ata 6
center" does not include a facility or portion of a facility containing electronic 7
equipment that is incidental to and used in support of a business whose 8
primary business activity is not the storing, retrieving, manag ing, and 9
processing of digital data. 10
(3) De minimis direct interest. – Any ownership of land or a data center resulting 11
from ownership of registered equities in a publicly traded company owning 12
the land or data center and if the ownership interest in the company is either 13
of the following: 14
a. Less than five percent (5%) of any class of registered equities . 15
Ownership of registered equities is determined by processes 16
established under federal law. 17
b. Less than five percen t (5%) interest in an entity controlled by a 18
company that is both registered with the United States Securities and 19
Exchange Commission as an investment adviser under the Investment 20
Advisers Act of 1940, as amended, and is not a foreign entity. 21
(4) Foreign government. – Any government other than the federal government or 22
the government of a state or a political subdivision of a state. 23
(5) Interest. – Any estate, remainder, or reversion, or any portion of the estate, 24
remainder, or reversion, or an option purs uant to which one party has a right 25
to cause the transfer of legal or equitable title to land described in 26
G.S. 64-65(a), including , without limitation, a lease of land described in 27
G.S. 64-65(a) (i) for a term of one year or longer or (ii) renewable by option 28
for terms which, if the options were all exercised, would total one year or 29
longer. 30
(6) Party. – Any individual, corporation, company, association, firm, partnership, 31
society, joint-stock company, trust, estate, or any other legal entity. 32
(7) Prohibited foreign party. – Any of the following: 33
a. A citizen or resident of an adversarial nation. 34
b. A foreign government formed within an adversarial nation. 35
c. A party other than an individual or government that is created or 36
organized under the laws of a foreign government within a n 37
adversarial nation. 38
d. A party other than an individual or a government that meets all of the 39
following criteria: 40
1. Is created or organized under the laws of any state. 41
2. A significant interest or substantial control is directly or 42
indirectly held or is capable of being exercised by one or more 43
of the following: 44
I. An individual referred to in sub -subdivision a. of this 45
subdivision. 46
II. A foreign government referred to in sub-subdivision b. 47
of this subdivision. 48
III. A par ty referred to in sub -subdivision c. of this 49
subdivision. 50
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IV. A combination of the individuals, parties, or 1
governments referred to in this sub-sub-subdivision. 2
e. An agent, trustee, or other fiduciary of a person or entity enumerated 3
in this subdivision. 4
f. This definition does not apply to an entity that meets any of the 5
following criteria: 6
1. The entity has received a determination from the Committee of 7
Foreign Investment in the United States (CFIUS) that there are 8
no unresolved national security concern s with respect to the 9
entity in connection to a matter submitted to CFIUS and which 10
CFIUS concluded all action pursuant to section 721 of the 11
Defense Production Act of 1950, as amended. 12
2. The entity has a national security agreement with CFIUS and 13
maintains the validity of such national security agreement. 14
3. A United States domiciled subsidiary of an entity that meets 15
the criteria of sub -sub-subdivisions 1. or 2. of this 16
sub-subdivision. 17
(8) Residence. – A person's principal dwelling place where that person intends to 18
remain permanently for an indefinite period of time. 19
(9) Resident alien. – A person who is not a citizen of the United States and is a 20
resident of one of the following: 21
a. A state of the United States. 22
b. A territory of the United States. 23
c. A trusteeship of the United States. 24
d. A protectorate of the United States. 25
(10) Significant interest or substantial control. – Any interest, other than a de 26
minimis direct interest, held by one or more of the following: 27
a. An individual referred to in sub-subdivision (7)a. of this section. 28
b. A single government referred to in sub-subdivision (7)b. of this 29
section. 30
c. A party referred to in sub-subdivision (7)c. of this section. 31
d. A party referred to in sub-subdivision (7)d. of this section. 32
"§ 64-65. Prohibited foreign party ownership of data centers and land on which a data 33
center is located. 34
(a) Notwithstanding any provision of law to the contrary, no adversarial nation shall 35
either: 36
(1) Purchase, acquire, lease, or hold any interest in land on which a data center is 37
located. 38
(2) Have any significant interest in or substantial control of a data center. 39
(b) Except as provided in this section, a prohibited foreign party shall not acquire by 40
grant, purchase, devise, descent, or otherwise any interest, other than a de minimis direct interest, 41
in land described in subsection (a) of this section or a data center in this State. A party may not 42
knowingly hold land, or a significant interest in or substantial control of a data center, as an agent, 43
trustee, or other fiduciary for a prohibited foreign party in violation of this section. A prohibited 44
foreign party that acquires land, or holds a significant interest in or substantial control of a data 45
center, in violation of this section remains in violation as long as the prohibited foreign party 46
holds an interest in the land , or the significant interest in or substantial control of a data center . 47
A prohibited foreign party who is a resident alien of th e United Stat es shall have the right to 48
acquire and hold land described in subsection (a) of this section , or a significant interest in or 49
substantial control of a data center, in the State upon the same terms as a citizen of the United 50
States during the continuance of the party's residence in this State. 51
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(c) A prohibited foreign party that has acquired a ny interest in land described in 1
subsection (a) of this section, or a significant interest in or substantial control of a data center, in 2
this State prior to the effective date of this section may continue to own or hold that interest but 3
may not acquire by grant, purchase, devise, descent, or otherwise any additional interest in land 4
described in subsection (a) of this section , or a significant interest in or substantial control of a 5
data center, in this State and must register with the Secretary of State and the Attorney General. 6
The Secretary of State and the Attorney General shall maintain one joint database of those foreign 7
parties that have registered, and the database shall be accessible and searchable by the public on 8
each agency 's website. The Sec retary of State and the Attorney General shall establish a 9
registration form for the purposes of this subsection , and the form shall include at least the 10
following information: 11
(1) The name of the owner of the land or the owner of the interest in the land, or 12
the owner of the data center, as applicable. 13
(2) The address of the land, the parcel identification number, and the property's 14
legal description, or the address of the data center, as applicable. 15
(3) The number of acres of the land on which the data center is located. 16
(4) The mailing address of the owner of the land or the data center, as applicable. 17
(5) Country of citizenship and residency status or country of incorporation of the 18
owner of the land or the owner of the interest in the land , or the owner of the 19
data center, as applicable. 20
(d) A prohibited foreign party that fails to timely file a registration with the Secretary of 21
State and the Attorney General pursuant to subsection (c) of this section is subject to a civil 22
penalty of not less than one thousand dollars ( $1,000) for each day that the registration is late , 23
the clear proceeds of which shall be remitted to the Civil Penalty and Forfeiture Fund , in 24
accordance with G.S. 115C-457.2. The unpaid balance of any penalties assessed under this 25
subsection shall constitute a lien against the land if a lien, denoted as a Notice of Foreign 26
Ownership Violation Lien, has been recorded by the Attorney General in the office of the register 27
of deeds in the county where the property is located, and the lien shall have priority from the date 28
and time of recordation and shall be enforced by the Attorney General. 29
(e) A prohibited foreign party that acquires land described in subsection (a) of this 30
section, or a significant interest in or substantial control of a data center, on or after the effective 31
date of this section, by devise or descent, through the enforcement of security interests, or through 32
the collection of debts, other than a de minim is direct interest, shall sell, transfer, or otherwise 33
divest itself of the land within three years after acquiring the land, or the significant interest in or 34
substantial control of the data center. 35
(f) At the time of purchase, a buyer of any interest in land described in subsection (a) of 36
this section shall provide an affidavit signed under penalty of perjury attesting that th e buyer is 37
(i) not a prohibited foreign party and (ii) in compliance with the requirements of this section. The 38
affidavit is not required to be notarized and shall be attached as an exhibit to the deed or other 39
document that conveys an ownership interest in the land. The failure to obtain or maintain the 40
affidavit shall not affect the title or insurability of the title for the land, and shall not result in civil 41
or criminal liability to any person or entity, unless the person or entity is in violation of subsection 42
(k) of this section herein, or subject any nonparty to the purchase to civil or criminal liability, 43
unless a nonparty to the purchase has actual knowledge that the transaction will result in a 44
violation of this section. The Real Estate Commission shall establish the form for the affidavit 45
required under this subsection. 46
(g) Upon receipt of information that leads the Attorney General to believe that a 47
prohibited foreign party has not divested itself of the land described in subsection (a) of this 48
section, or a significant interest in or substantial control of a data center, as required under 49
subsection (e) of this section , the Attorney General shall enforce a violation of this section by 50
commencing a receivership proceeding in the county where the property or data center is situated 51
General Assembly Of North Carolina Session 2025
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under Article 38A of Chapter 1 of the General Statutes seeking the appointm ent of a general 1
receiver pursuant to G.S. 1-507.24(e1). Any interest in real property acquired or held in violation 2
of this section shall be subject to divestiture pursuant to G.S. 64-66. 3
(h) A violation of this section by an adversarial nation may, at the discretion of the 4
noteholder, be deemed a default under a loan, mortgage, or d eed of trust and shall provide the 5
lender the automatic right to trigger default on the loan, mortgage, or deed of trust. 6
(i) The responsibility for determining whether an individual or other entity is subject to 7
this Article, pursuant to either civil or criminal law, rests solely with the State of North Carolina 8
and no other individual or entity. 9
(j) Title to land described in subsection (a) of this section is not invalid or subject to 10
divestiture due to a violation of this section by any former owner or any other person holding or 11
owning a former interest in the land described in subsection (a) of this section. 12
(k) A party who knowingly sells an interest in land described in subsection (a) of this 13
section in violation of this section or who has actual knowledge that the transaction will result in 14
a violation of this section but aids and abets a p arty in knowingly selling an interest in land 15
described in subsection (a) of this section shall be guilty of a Class 2 misdemeanor. It is an 16
affirmative defense to prosecution under this subsection that a prohibited foreign party is a 17
resident alien of this State. 18
(l) An individual or other entity who is not a prohibited foreign party shall bear no civil 19
or criminal liability for failing to determine or make inquiry of whether an individual or other 20
entity is a prohibited foreign party. 21
(m) This Article does not create or authorize a private right of action to enforce the 22
provisions of this Article. 23
"§ 64-66. Divestiture procedure. 24
(a) Upon receipt of information that leads the Attorney General to believe that a violation 25
of G.S. 64-65 may have occurred, the Attorney General shall investigate the alleged violation 26
and may issue subpoenas requiring any of the following: 27
(1) Appearances of witnesses. 28
(2) Production of relevant records. 29
(3) Giving of relevant testimony. 30
(b) The Attorney General shall enforce a violation of G.S. 64-65 by commencing a 31
receivership proceeding under Article 38A of Chapter 1 of the General Statutes seeking the 32
appointment of a g eneral receiver pursuant to G.S. 1-507.24(e1). The following apply to a 33
receivership proceeding initiated pursuant to this section: 34
(1) Proceeds of the sale shall be paid as follows: 35
a. The costs of the receivership and sale. 36
b. To secured parties, in their order of priority, except for liens which 37
under the terms of the sale are to remain on the property. 38
c. No proceeds shall be distributed from the receivership sale to the 39
prohibited foreign party. Any excess proceeds are forfeited and shall 40
be remitted to the Civil Penalty and Forfeiture Fund in accordance with 41
G.S. 115C-457.2. 42
(2) At the receivership sale, any secured party shall be able to place a bid in an 43
amount that is not more than the amount owed plus any costs incurred to the 44
secured party as of the date of the sale, as established in the court order for the 45
sale of the property. 46
(3) Upon commencement of an action under this section, the Attorney General 47
shall file a notice of lis pendens as soon as practicable with the register of 48
deeds of the county or counties in which the real property is situated. Upon 49
the entry of an order for the sale of the property under this section, the 50
Attorney General shall record a copy of the order as soon as practicable in the 51
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office of the register of deeds of the county or counties where the real property 1
is situated. 2
(4) The receiver shall honor and give priority to any default that has been 3
triggered on a loan, mortgage, or deed of trust prior to the commencement of 4
a receivership under this section." 5
SECTION 3.(b) Article 2 of Chapter 161 of the General Statutes is amended by 6
adding a new section to read: 7
"§ 161-14.04. Citizenship and residential status of parties to a deed or conveyance. 8
When recording a deed or other document that conveys an ownership interest in land 9
described by G.S. 64-65(a), the register of deeds shall attach the affidavit as an exhibit to the 10
deed or other document that conveys an ownership interest in land as required by G.S. 64-65(f) 11
according to the requirements of G.S. 161-22." 12
SECTION 3.(c) G.S. 1-507.24 is amended by adding a new subsection to read: 13
"(e1) Receiver for Sale of Real Property Owned by Prohibited Foreign Party. – A general 14
receiver may be appointed for the purpose of conducting a sale of real property in accordance 15
with G.S. 64-66 upon a finding by the court that an interest in the real property is held by a 16
prohibited foreign party in violation of G.S. 64-65(a)." 17
SECTION 3.(d) This section becomes effective December 1, 2026. Subsection (a) 18
of this section applies to offenses committed on or after that date. 19
20
REQUIREMENTS FOR UTILITY SERVICE CONTRACTS WITH DATA CENTERS 21
SECTION 4.(a) Article 7 of Chapter 62 of the General Statutes is amended by adding 22
a new section to read: 23
"§ 62-142.1. Contracts with data centers. 24
(a) Each data center located in North Carolina is required to enter into an electric service 25
contract with the electric public utility providing service to the data center. Each contract between 26
an electric public utility and a data center for the provision of electric service shall include terms 27
and conditions designed to (i) protect residential, other retail, and wholesale electricity customers 28
from costs incurred or reasonably anticipated to be incurred by the electric public utility to 29
provide electric service to the data center and (ii) prevent, to the maximum extent reasonably 30
feasible, other retail customers from subsidizing the cost of the data center's electric service. Such 31
contracts shall include all of the following: 32
(1) Minimum billing requirements designed to recover incremental costs 33
associated with serving or preparing to serve a data center. 34
(2) A contract term that is sufficient to recover all of the electric public utility 's 35
incremental costs and which may exceed the length of the applicable service 36
tariff. 37
(3) Performance and credit provisions designed to protect retail customers in the 38
event of contract default. 39
(4) Termination provisions designed to protect retail customers in the event of 40
termination of the contract for electric service. 41
(b) Each contract between an electric public utility and a data center for the provision of 42
electric service shall be filed with the Commission as soon as practicable but in no event later 43
than 30 days from the date of c ontract execution by both parties . Either the utility or the data 44
center, or both, may designate all or any portion of a contract as confidential information as 45
defined in G.S. 132-1.2, or sensitive public security information as defined in G.S. 132-1.7. 46
Information shall be considered confidential only to the extent provided by law. Any dispute 47
about whether information has been properly designated as confidential shall be determined by 48
the Commission upon motion and response of interested parties. Subject to the requirements of 49
G.S. 62-34(c), the Public Staff shall have the right to examine confidential information , as well 50
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as sensitive public security information, in exercising any power or performing any duty 1
authorized by this Chapter. 2
(c) As part of the report required on the long-range needs for the expansion of facilities 3
for the generation of electricity pursuant to G.S. 62-110.1(c), the electric public utility shall 4
include details on contracted demand versus actual demand for each data center for the previous 5
three years. 6
(d) As used in this section, the term "data center" means a facility, campus of facilities, 7
or array of interconnected facilities used by an entity or other business enterprise for the primary 8
purpose of storing, retrieving, managing, and processing digital data, which has a peak monthly 9
electricity demand of 100 megawatts or greater. The term "data center" does not include a facility 10
or portion of a facility containing electronic equipment that is incidental to and used in support 11
of a business whose primary business activity is not the storing, retrieving, managing, and 12
processing of digital data. 13
(e) The Commission may adopt rules to implement the requirements of this section. 14
Nothing in this section shall be construed to limit the authority of the Commission to adopt such 15
additional rules as are in the pub lic interest to protect retail customers from costs incurred by 16
electric public utilities to provide electric service to data centers." 17
SECTION 4.(b) This section is effective when it becomes law and applies to 18
agreements between an electric public utility and a data center entered into on or after that date. 19
20
NO CONDEMNATION FOR DATA CENTERS 21
SECTION 5. Article 1 of Chapter 40A of the General Statutes is amended by adding 22
a new section to read: 23
"§ 40A-14. No condemnation to facilitate siting of data center. 24
Notwithstanding any authority granted under this Chapter, no condemnor shall exercise the 25
power of eminent domain for the purpose of acquiring land for a data center to be sited upon." 26
27
NO LOCAL GOVERNMENT INCENTIVES FOR DATA CENTERS 28
SECTION 6.(a) G.S. 158-7.1 is amended by adding a new subsection to read: 29
"(i) Notwithstanding subsection (a) , (b), or (d) of this section, local governments are 30
prohibited from providing any economic development incentives for siting of a data center within 31
their jurisdiction. For purposes of this section, the term "data center" means a facility, campus of 32
facilities, or array of interconnected facilities used by an entity or other business enterprise for 33
the primary purpose of storing, retrieving, managing, and processing digital data, which has a 34
peak monthly electricity demand of 100 megawatts or greater. The term "data center" does not 35
include a facility or portion of a facility containing electronic equipment that is incidental to and 36
used in support of a business whose primary business activity is not the storing, retrieving, 37
managing, and processing of digital data." 38
SECTION 6.(b) This section is effective when it becomes law and applies to data 39
centers for which no local development approvals or State permits, certifications, or 40
authorizations have been issued for siting of the data center on or before that date. This section 41
shall not be construed to impair agreements for incentives executed on or before that date. 42
43
PART II. ENERGY POLICY PROVISIONS 44
45
UTILITIES COMMISSION TO DELAY COMPLIANCE WITH CEPS REQUIREMENT 46
THROUGH USE OF SWINE WASTE RESOURCES FOR ELECTRIC MEMBERSHIP 47
CO-OPERATIVES AND MUNICIPAL ELECTRIC PROVIDERS 48
SECTION 7. The Utilities Commission shall delay the required compliance with 49
G.S. 62-133.8(e) by the Electric Membership Co -operatives and Municipal Electric Providers 50
(the Systems) until January 1, 2029, unless the systems request the ability to execute a contract 51
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for this purpose at an earlier date. No later than January 1, 2029, the Commission shall initiate a 1
process to review the reasonableness of the proposed costs of the associated renewable energy 2
credits, and the costs to be passed on to the ratepayers, prior to the execution of a contract between 3
the systems and a swine waste generator. Reasonableness of the costs being proposed should 4
include the costs of other renewable energy credits. The systems shall no t pass along any costs 5
to the ratepayers deemed by the Commission to be unreasonable. 6
7
RFP FOR STUDY OF UTILITY POLICIES TO INCREASE AFFORDABILITY OF 8
ELECTRIC RATES 9
SECTION 8. Recognizing the rising costs of utility service, the General Assembly 10
finds that an examination of various utility policies should be conducted to ensure these policies 11
are not exacerbating affordability issues for citizens of the State, including the 2050 goal for a 12
reduction in carbon dioxide (CO2) emitted in the State from electri c generating facilities that 13
results in carbon neutrality, pursuant to G.S. 62-110.9. In addition to examining these existing 14
utility policies, the General Assembly finds that expert analysis should be performed to determine 15
the most effective approach to ensuring that costs of utility service to large load customers is not 16
borne by other residential, commercial, and industrial customers in North Carolina, including 17
appropriate terms for a large load tariff. The North Carolina Collaboratory (Collaboratory) shall 18
issue a request for proposals for a study to be conducted by an entity with nationally recognized 19
expertise in research and analysis of utility policy and rates to (i) ascertain the current impacts, 20
and projected impacts over the next 25 years, to residential, commercial, and industrial customer 21
bills from the 2050 carbon neutrality goal, and whether any changes to this policy or other 22
policies are advisable to enhance customer affordability and (ii) provide recommendations for 23
effective policies to p revent rate impacts from large load customers on other customer classes, 24
including requirements that large load customers generate a portion of their own power, as well 25
as curtailment policies for large load customers. The study shall adhere to the followi ng time 26
line: 27
(1) The request for proposals (RFP) shall be issued on or before August 1, 2026. 28
(2) A contract to award the RFP shall be executed on or before November 1, 2026. 29
(3) The study shall be completed and submitted to the Joint Legislative 30
Commission on Energy Policy on or before May 1, 2027, in order to inform 31
the development of utility policy during the 2027 Regular Session. 32
The Utilities Commission and the Public Staff shall assist the (i) Collaboratory, as 33
needed, in the development of the RFP a nd the selection of a contractor and (ii) selected 34
contractor, in every permissible manner within the constraints of their respective authority, in the 35
conduct of the study. 36
37
EXPRESS PERMIT REVIEW FOR ENERGY PROJECTS 38
SECTION 9.(a) G.S. 143B-279.13 reads as rewritten: 39
"§ 143B-279.13. Express permit and certification reviews. 40
(a) The Department of Environmental Quality shall develop an express review program 41
to provide express permit and certification reviews in all of its regional offices. Participation i n 42
the express review program is voluntary, and the program shall be supported by the fees 43
determined pursuant to subsection (b) of this section. The Department of Environmental Quality 44
shall determine the project applications to review under the express re view program from those 45
who request to participate in the program. The express review program may be applied to any 46
one or all of the permits, approvals, or certifications in the following programs: the erosion and 47
sedimentation control program, the coasta l management program, and the water quality 48
programs, including water quality certifications and stormwater management. The express 49
review program shall focus on the following permits or certifications: 50
General Assembly Of North Carolina Session 2025
Page 10 Senate Bill 730-Fifth Edition
(1) Stormwater permits under Part 1 of Article 21 of Chapter 143 of the General 1
Statutes. 2
(2) Stream origination certifications under Article 21 of Chapter 143 of the 3
General Statutes. 4
(3) Water quality certification under Article 21 of Chapter 143 of the General 5
Statutes. 6
(4) Erosion and sedimentation contr ol permits under Article 4 of Chapter 113A 7
of the General Statutes. 8
(5) Permits under the Coastal Area Management Act (CAMA), Part 4 of Article 9
7 of Chapter 113A of the General Statutes. 10
(a1) The Department of Environmental Quality shall have the authority to create express 11
permitting options for programs in addition to those listed in subsection (a) of this section where 12
it deems there to be a need or where it determines an express permitting option would create 13
greater efficiencies for the permitting process. 14
(a2) The Department of Environmental Quality shall create an express review program for 15
all permits, authorizations, and certifications required from the Department for projects involving 16
the generation, distribution, or transmission of energy or fuel, including natural gas, diesel, 17
petroleum, or electricity. Participation in the express review program is voluntary. 18
(b) The Department of Environmental Quality shall set the fees for express application 19
review under the express review program at a level sufficient to cover all program expenses. 20
Notwithstanding G.S. 143-215.3D, the maximum permit application fee to be charged under 21
subsection (a) of this section for the express review of a project application requiring all of the 22
permits under subdivisions (1) through (5) of subsection (a) of this section shall not exceed five 23
thousand eight hundred eight dollars ($5,808). Notwithstanding G.S. 143-215.3D, the maximum 24
permit application fee to be charged for the express revi ew of a project application requiring all 25
of the permits under subdivisions (1) through (4) of subsection (a) of this section shall not exceed 26
four thousand seven hundred fifty -two dollars ($4,752). Notwithstanding G.S. 143-215.3D, the 27
maximum permit application fee charged for the express review of a project application for any 28
other combination of permits under subdivisions (1) through (5) of subsection (a) of this section 29
shall not exceed four thousand two hundred twenty -four dollars ($4,224). As set for th in 30
subsection (a1) of this section, express review of a project application involving additional 31
permits or certifications issued by the Department of Environmental Quality other than those 32
under subdivisions (1) through (5) of subsection (a) of this se ction may be allowed by the 33
Department, and, notwithstanding G.S. 143-215.3D or any other statute or rule that sets a permit 34
fee, the maximum permit application fee charged for the express review of a project application 35
that includes a permit, approval, or certification designated for express review under subsection 36
(a1) of this section shall not exceed four thousand two hundred twenty-four dollars ($4,224), plus 37
one hundred fifty percent (150%) of the fee that would otherwise apply by statute or rule for that 38
particular permit, approval, or certification. Additional fees, not to exceed fifty percent (50%) of 39
the original permit application fee under this section, may be charged for subsequent reviews due 40
to the insufficiency of the permit applications. The Department of Environmental Quality may 41
establish the procedure by which the amount of the fees under this subsection is determined, and 42
the fees and procedures are not rules under G.S. 150B-2(8a) for the express review program 43
under this section." 44
SECTION 9.(b) G.S. 143B-279.20 reads as rewritten: 45
"§ 143B -279.20. Report on Department activity to process applications for permits 46
required for natural gas pipelines and gas-fired electric generation facilities. 47
The Department of Environmental Quality shall report on any applications received for 48
permits permits, authorizations, or certifications required for siting or operation of natural gas 49
pipelines and gas -fired electric generation facilities within the State, and activities of the 50
Department to process such applications, including tracking of processing times. The report shall 51
General Assembly Of North Carolina Session 2025
Senate Bill 730-Fifth Edition Page 11
also include information on all activities under the express review program required pursuant to 1
G.S. 143B-279.13(a2). The processing time tracked shall include (i) the total processing time 2
from when an initial permit application is received to issuance or denial of the permit and (ii) the 3
processing time from when a complete permit application is received to issuance or denial of the 4
permit. The Department shall report quarterly to the Joint Legislative Commission on Energy 5
Policy pursuant to this section." 6
SECTION 9.(c) Within 30 days of the date this section becomes law, the Department 7
shall notify applicants for all entities with pending applications for permits, authorizations, and 8
certifications required from the Department for projects involving the generation, distribution, or 9
transmission of energy or fuel, including natural g as, diesel, petroleum, or electricity, of the 10
express review program enacted by subsection (b) of this section, and shall inform the applicants 11
of the ability to process pending applications through the program upon payment of the applicable 12
fee pursuant to G.S. 143B-279.13(b). 13
SECTION 9.(d) This section is effective when it becomes law and applies to 14
applications for permits, authorizations, and certifications pending on or submitted after that date. 15
16
REQUIRE DEVELOPMENT OF NUCLEAR RESOURCES PRIOR TO RETI REMENT 17
OF BASELOAD FACILITIES OR FACILITIES WITH DISPATCHABLE ELECTRIC 18
GENERATION ABOVE 100 MW TO ENSURE ADEQUACY OF GRID 19
SECTION 10. G.S. 62-110.9(4) reads as rewritten: 20
"(4) Retain discretion to determine optimal timing and generation and 21
resource-mix to achieve the least cost path to compliance with the authorized 22
carbon reduction goal, including discretion in achieving the authorized carbon 23
reduction goal by the date specified in order to allow for implementation of 24
solutions that would have a more sig nificant and material impact on carbon 25
reduction; provided, however, the Commission shall not exceed the date 26
specified to achieve the authorized carbon reduction goal by more than two 27
years, except in the event the Commission authorizes construction of a nuclear 28
facility or wind energy facility that would require additional time for 29
completion due to technical, legal, logistical, or other factors beyond the 30
control of the electric public utility, or in the event necessary to maintain the 31
adequacy and reliability of the existing grid. In making such determinations, 32
the Utilities Commission shall receive and consider stakeholder input. The 33
Commission shall not authorize retirement of baseload facilities or facilities 34
with dispatchable electric generation above 100 MW until such time as a 35
certificate of public convenience and necessity has been issued to an electric 36
public utility for construction of one nuclear facility with a generating capacity 37
of at least 1,000 MW to ensure the adequacy of baseload and dispatchable 38
generation from a clean energy resource." 39
40
PART III. MISCELLANEOUS 41
42
COOLING-OFF PERIOD FOR UTILITIES COMMISSIONERS AND STAFF 43
SECTION 11.(a) Article 15 of Chapter 62 of the General Statutes is amended by 44
adding a new section to read: 45
"§ 62-327A. Post-employment restrictions on members and employees of Commission. 46
(a) Cooling-Off Period. ‒ It shall be unlawful for any former commissioner or employee 47
of the Commission to make, with the int ent to influence on behalf of an employer or client, any 48
communication to or appearance before the Commission within a period of six months following 49
the termination of his or her service or employment with the Commission. 50
(b) Penalty. ‒ A violation of this section is a Class 3 misdemeanor." 51
General Assembly Of North Carolina Session 2025
Page 12 Senate Bill 730-Fifth Edition
SECTION 11.(b) This section becomes effective December 1, 2026, and applies to 1
offenses committed on or after that date. 2
3
SEVERABILITY/EFFECTIVE DATE 4
SECTION 12. If any section or provision of this act is declared unconstitutional or 5
invalid by the courts, it does not affect the validity of this act as a whole or any part other than 6
the part so declared to be unconstitutional or invalid. 7
SECTION 13. Except as otherwise provided, this act is effective when it becomes 8
law. 9