Raleigh, North Carolina.Days before the state senate is scheduled to vote on whether to override Governor Josh Stein’s veto, fierce criticism is being directed at North Carolina’s contentious energy law, Senate law 266. The measure may cost the state tens of thousands of jobs and tens of billions of dollars in economic activity each year, according to recent studies.
Massive Job and Investment Losses Projected
According to a BW Research research commissioned by proponents of renewable energy, North Carolina will lose 50,700 jobs annually between 2030 and 2035 if SB 266 is passed into law, mostly in the solar and clean energy construction industries. The state will have to forgo building new nuclear, wind, solar, and natural gas power plants, totaling $47.2 billion.
Although the Act maintains a more distant carbon neutrality objective for the middle of the century, it repeals Duke Energy’s current commitment to reduce climate pollution by 70% by 2030 (relative to 2005 levels). Removing this short-term emissions target, according to critics, will hinder the growth of alternative energy and force Duke to depend more on outdated, dirty fossil fuel plants.
Higher Costs, Fewer Resources
On July 2, Governor Stein rejected the bill, claiming it will ultimately increase electricity rates for consumers and transfer financial obligations from big businesses to regular families. He referenced a research by EQ that found the bill pushes the expense of electricity from major industrial users onto the backs of ordinary people. Environmental and consumer advocacy groups have also expressed similar views.
According to new modeling, Duke Energy would have to purchase energy from outside the state or increase its reliance on fossil fuels, particularly during periods of high winter demand, as a result of SB 266’s 40% reduction in new generation capacity and potential 12-gigawatt power shortage by 2035.
Political Showdown Looms
House Speaker Destin Hall and Senate President Phil Berger have expressed confidence that the override vote will pass, and it is set for Tuesday, July 29. Given that the bill was initially supported by 11 House Democrats, the House just needs one more Democratic vote to override the veto.
Although analysts contest these assertions, Speaker Hall supported the law, saying it will save North Carolinians $12 billion, reduce red tape, and deliver affordable, dependable electricity.
Clean energy organizations caution that if the law is approved, the state may lose its ability to draw in high-tech and energy-intensive businesses. Duke’s possible underbuilding might make it more difficult for the state to satisfy the growing demands of both citizens and corporations.
Environmental and Economic Consequences
NC State University researchers also cautioned that Duke would burn 40% more natural gas between 2030 and 2050 if SB 266’s climate targets weren’t met. This could increase consumer power costs by $23 billion under unstable fuel prices, perhaps wiping out any anticipated savings from postponing infrastructure improvements.
In a statement, Governor Stein urged lawmakers to reevaluate the plan, saying it fails the test of expanding our economy and cutting expenditures.
However, corporate organizations such as the North Carolina Chamber of Commerce back the bill and plan to give senators a favorable rating based on their SB 266 votes. Next week, this political pressure might decide whether the veto is upheld or overridden.
What are your thoughts? In order to save money in the short run, should North Carolina stick to its climate goals or switch to fossil fuels? Let us know what you think at SaludaStandard-Sentinel.com.
