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 472 streamlines water quality permit reviews for specific projects in North Carolina, directly affecting developers of upland basin marinas, energy/fuel infrastructure, and maintenance dredging projects funded by certain state programs. It sets strict deadlines for the Department of Environmental Quality: requiring fee notifications within 5 business days, completeness reviews within 30 days, and final decisions within 10-15 days (or automatically waiving certification if deadlines are missed). The bill also clarifies that certain man-made ditches and upland basin marinas are not subject to coastal management regulations. These changes aim to accelerate project approvals while maintaining existing water quality standards. The bill is pending review and would take effect October 1, 2025.
HB 442 creates a four-year pilot program (2025-2029) to restore recreational summer flounder and red snapper fishing in North Carolina. It directs the Fisheries Division to allow a seasonal fishing window from May 15 to July 31 each year with a daily limit of one fish per person (no seasonal limit), while ensuring released fish don’t count toward catch limits. The bill aims to address North Carolina’s stricter rules compared to neighboring states like South Carolina, which have boosted recreational fishing tourism. The Division must annually report to legislative committees on fish population conservation progress and potential future limit increases.
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.
The Farmers Protection Act (SB 554) aims to prevent discrimination in financing against agriculture producers. It makes it unlawful for banks to deny or cancel services to farmers based on their greenhouse gas emissions, use of fossil-fuel derived fertilizer, or fossil-fuel powered machinery. If a bank has an environmental, social, or governance (ESG) commitment related to agriculture, there is a rebuttable presumption that such a denial violates the act, unless the bank proves it was solely for financial reasons. The bill requires banks to submit annual compliance reports and allows for civil penalties for violations, which are also considered an unfair or deceptive trade practice.
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.
