RALEIGH, N.C. — A major rewrite of the state’s renewable energy policy is on its way to the House floor later this week, but skeptics say it’s moving too quickly and with too little public consideration.
House Bill 589, which was announced by a news release from Speaker
Among other things, the measure would lift the state’s ban on third-party energy sales, allowing leasing to facilitate rooftop and community solar. It would also implement net metering, which gives the owner of a residential or commercial property with solar panels a bill credit for the retail cost of energy he or she puts back onto the grid, as well as a solar rebate program for residential customers.
However, the measure would also mean lower prices and shorter contracts for solar plants, which could make new development less profitable, and it would cap the amount of third-party renewable energy that the utilities would be required to purchase. It also would require a competitive bidding process for new solar development, managed by a third-party administrator.
Introducing the bill, Arp said the changes are expected to save North Carolina utility customers $1 billion over the next decade.
“We believe the mechanism in the bill is a continuing downwards pressure on cost, and it makes solar competitive,” he said.
At the bill’s first public airing, representatives of Duke Energy, Dominion Energy, ElectriCities, the North Carolina Chamber, the North Carolina Retail Merchants Association and renewable energy supporters all spoke briefly in favor of the measure, although some expressed reservations about parts of it.
“While we see areas where this bill could be further improved, we recognize that it represents compromise and consensus among many groups,” said Betsy McCorkle with the North Carolina Sustainable Energy Association.
Donald Bryson with Americans for Prosperity said such a sweeping overhaul of the state’s energy policy should have more than 72 hours in the public eye, though he said he believes “it does much more good than harm.”
“Why do we still have a mandate in place under REPS [the Renewable Energy Portfolio Standard]?” asked Bryson “I appreciate that we have a cost cap, but we should end up getting rid of the mandate.”
Rep. Pricey Harrison, D-Guilford, also expressed concerns about the time for public consideration, given the complexity of the legislation, and she questioned the capping of third-party power purchases.
Arp said all those concerns had been discussed at length over the past nine months, and he reminded the committee that it’s a “consensus bill” produced through extensive negotiations among all stakeholders.
“I believe it does move energy policy forward for the future,” Arp said. “We can’t see the future, but we think this is the best way forward for the next few years.”
The measure passed House Finance Tuesday afternoon, shortly before Governor Roy Cooper issued a statement supporting it.
“This legislation will help North Carolina stay ahead with lower cost renewable energy that protects our environment and grows our economy. I urge the Legislature to pass it and I commend everyone who worked so hard to get this agreement,” Cooper wrote.
It’s scheduled for debate on the House floor Wednesday afternoon.