Environment

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.