Environment

SB 1047, titled the Regulatory Reform Act of 2026, organizes and updates North Carolina's laws regarding Guaranteed Energy Savings Contracts (GESC) to provide regulatory relief for citizens. The bill primarily affects state and local governmental units by establishing a structured process for these contracts, which allow governments to pay for energy-saving upgrades based on actual savings rather than upfront costs. Key provisions require officials to publish requests for qualifications, select providers based on specific criteria like past performance and technical feasibility, and conduct independent audits to verify projected energy savings. Additionally, the legislation sets clear thresholds for terminating projects if the actual savings do not meet the guaranteed estimates, ensuring accountability in public spending.

SB 639, the North Carolina Farm Act of 2025, updates agricultural water planning, addresses feral swine damage, and strengthens farm conservation protections. It requires the Department of Agriculture to revise the state’s agricultural water plan by 2026, including funding for water infrastructure, conservation practices, and flood mitigation. The bill creates a Feral Swine Working Group with industry and agency representatives to develop control strategies and report annually, while also mandating 100-foot vegetative buffers around protected farm tracts in new subdivisions. Local governments gain authority to deny development permits that would negatively impact agricultural production, directly affecting farmers, landowners, and municipal planning decisions.

SB 605 makes two key changes related to water management and environmental regulations. First, it eliminates subbasin designations and removes the requirement for an Interbasin Transfer certificate for water transfers that occur between subbasins within the same major river basin, simplifying the process for water resource managers. Second, the bill revises how nutrient offset credits are calculated for wastewater permits in the Neuse River Basin. It specifies that a "TMDL transport factor" must be applied to both the permitted wastewater discharge and the nutrient offset credits, and it broadens the applicability of this calculation by removing a previous customer connection limit for local governments. The bill also directs the Department of Environmental Quality to develop new modeling for nutrient transport in the Neuse River Basin, which could lead to updated rules.

SB 261, the Energy Security and Affordability Act, removes a mandated interim timeline for carbon reduction by North Carolina's major electric utilities (those serving 150,000+ customers) and introduces an alternative cost recovery method for ongoing construction of base load power plants. The bill requires these utilities to achieve a 70% reduction in carbon dioxide emissions by 2030 (from 2005 levels) and carbon neutrality by 2050, with the Utilities Commission developing a Carbon Plan by 2026 for achieving these goals. It specifies that new solar energy must come from 45% third-party power purchase agreements for small solar facilities (80 MW or less) and 55% utility-owned or purchased sources, including for solar paired with storage. This bill directly affects North Carolina's largest electric utilities and the Utilities Commission, altering their regulatory framework for emissions and infrastructure costs.