A BILL TO BE ENTITLED
AN ACT to rewrite the north carolina energy policy act of 1975.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  G.S. 113B‑8(a), G.S. 113B‑8(b), G.S. 113B‑8(d) through G.S. 113B‑8(f), G.S. 113B‑9(e), G.S. 113B‑9(i), and G.S. 113B‑9(j) are repealed.
SECTION 1.(b)  G.S. 113B‑7 through G.S. 113B‑10, as amended by subsection (a) of this section, are recodified as G.S. 113B‑10.1, except that G.S. 113B‑8(g) and G.S. 113B‑8(h) are recodified as G.S. 113B‑11(g) and G.S. 113B‑11(h) respectively; G.S. 113B‑9(b) is recodified as G.S. 113B‑23(d); and G.S. 113B‑9(k) is recodified as G.S. 113B‑11(i). 
SECTION 1.(c)  G.S. 113B‑7(a) through G.S. 113B‑7(c) become G.S. 113B‑10.1(a) through G.S. 113B‑10.1(c).  G.S. 113B‑8(c) becomes G.S. 113B‑10.1(d). G.S. 113B‑9(a) becomes G.S. 113B‑10.1(e).  G.S. 113B‑9(c) and G.S. 113B‑9(d) become G.S. 113B‑10.1(f) and G.S. 113B‑10.1(g), G.S. 113B‑9(f) through G.S. 113B‑9(h) become G.S. 113B‑10.1(h) through G.S. 113B‑10.1(j), G.S. 113B‑10(a) through G.S. 113B‑10(e) become G.S. 113B‑10.1(k) through G.S. 113B‑10.1(o).  G.S. 113B‑7(d) through G.S. 113B‑7(g) become G.S. 113B‑10.1(p) through G.S. 113B‑10.1(s).
SECTION 2.  Chapter 113B of the General Statutes, as amended and recodified by Section 1 of this act, reads as rewritten:
"Chapter 113B. 
"North Carolina Energy Policy Act.
"Article 1.
"Energy Policy Council.
"§ 113B‑1.  Legislative findings and purpose.
Upon investigation the General Assembly hereby finds that:
(1)	Energy is essential to the health, safety and welfare of the people of this State and to the workings of the State economy.
(2)	Growth in the consumption of energy resources is in some part due to wasteful, uneconomic and inefficient uses of energy and a continuation of this trend will adversely affect the future social and economic development and the future environmental quality of North Carolina.
(3)	It is the responsibility of State government to encourage a reliable and adequate supply of energy for North Carolina at a level consistent with such energy needs required for the protection of public health and safety, and for the promotion of the general welfare.
(4)	The State needs a long‑range unified energy policy to ensure the availability of reliable energy in the State, to improve the public health and the environmental quality of the State, to promote wise land use, support a sound economy of the State, to achieve a sustainable energy strategy for the State, and to provide a means by which State government leads the State by its example. 
(5)	It is the expressed intent of this Chapter to provide for development of such a unified energy policy for the State of  North Carolina.
"§ 113B‑2.  Creation of Energy Policy Council; purpose of Council.
(a)	There is hereby created a council to advise and make recommendations on energy policy to the Governor and the General Assembly to be known as the Energy Policy Council which shall be located within the Department of Administration.
(b)	Except as otherwise provided in this Chapter, the powers, duties and functions of the Energy Policy Council shall be as prescribed by the Secretary of Administration.
(c)	The Energy Policy Council shall serve as the central energy policy planning body of the State and shall communicate and cooperate with federal, State, regional and local bodies and agencies to the end of effecting a coordinated energy policy.
"§ 113B‑3.  Composition of Council; appointments; terms of members; qualifications.
(a)	The Energy Policy Council shall consist of 18 members to be appointed as follows:
(1)	Two members of the North Carolina House of Representatives to be appointed by the Speaker of the House of Representatives;
(2)	Two members of the North Carolina Senate to be appointed by the President Pro Tempore of the Senate;
(3)	Nine public members who are citizens of the State of North Carolina to be appointed by the Governor;
(4)	The chairman of the North Carolina Utilities Commission, the Secretary of Environment and Natural Resources, the Commissioner of Agriculture, the Secretary of Commerce and the Secretary of Administration or their designees from their respective departments.
(b)	The appointed members of the General Assembly shall serve two‑year terms, and the appointed public members shall serve four‑year terms. A member of the Energy Policy Council shall continue to serve until his successor is duly appointed, but such holdover shall not affect the expiration date of such succeeding term.
(c)	The public members of the Energy Policy Council shall have the following qualifications:
(1)	One such member shall be knowledgeable in the electric power industry.
(2)	One such member shall be knowledgeable in the natural gas industry.
(3)	One such member shall be knowledgeable in the petroleum marketing industry.
(4)	One such member shall be knowledgeable in economic analysis of energy requirements.
(5)	One such member shall be knowledgeable in environmental protection.
(6)	One such member shall be knowledgeable in industrial energy consumption.
(7)	One such member shall be knowledgeable in alternative sources of energy.
(8)	One such member who, at the time of appointment, is a county commissioner; provided, such member's term on the Council shall expire immediately in the event that he or she vacates office as a county commissioner.
(9)	One such member who, at the time of appointment, is an elected municipal official; provided, such member's term on the Council shall expire immediately in the event that he or she vacates office as an elected municipal official.
"§ 113B‑4.  Chairman of Council; replacement; reimbursement of members.
(a)	Every four years, the Governor shall designate one of the members of the Energy Policy Council to serve as chairman of the Council.
(b)	In case of a vacancy in the membership on the Energy Policy Council prior to the expiration of a member's term, a successor shall  be appointed within 90 days of such vacancy for the remainder of the unexpired term by the appropriate official pursuant to the provisions of G.S. 113B‑3.
(c)	Members of the Energy Policy Council shall be reimbursed for their services pursuant to the provisions of G.S. 138‑5.
"§ 113B‑5.  Organization of the Council; adoption of rules of procedure therefor.
(a)	To facilitate the work of the Energy Policy Council and for administrative purposes, the chairman of the Energy Policy Council, with the consent and approval of the members, may organize the work of the Council so as to carry out the provisions of this Chapter and to insure the efficient operation of the Council.
(b)	The Energy Policy Council shall adopt its own rules of procedure and shall meet regularly at such times and in such places as it may deem necessary to carry out its functions.
(c)	The Energy Policy Council is authorized to create such advisory committees as will be needed to assist the Council in its efforts and to assure adequate citizen‑consumer input into those efforts. Members of advisory committees shall be appointed by the Council for terms not to exceed the expiration date of terms of then present public members of the Council.
"§ 113B‑6.  General duties and responsibilities.
The Energy Policy Council shall have the following general duties and responsibilities:
(1)	To develop and recommend to the Governor a comprehensive long‑range State Energy Plan to achieve maximum effective management and use of present and future sources of energy. The State Energy Plan shall include but not be limited to  components that address energy efficiency, energy analysis and assessment, contingency and energy emergency planning, and energy research and development.
(2)	To conduct an ongoing assessment of the opportunities and constraints presented by various uses of all forms of energy and to encourage the efficient use of all such energy forms in a manner consistent with State energy policy.
(3)	To continually review and coordinate all State government research, education and management programs relating to energy matters and to continually educate and inform the general public regarding such energy matters.
(4)	To recommend to the Governor and to the General Assembly needed energy legislation and to recommend for implementation such modifications of energy policy, plans and programs as the Council considers necessary and desirable.
(5)	To develop and administer the Low‑Income Residential Energy Program. Nothing in this subdivision shall be construed as obligating the General Assembly to appropriate funds for the Program or as entitling any person to services under the Program."§ 113B‑10.1.  State Energy Plan; components.
(a)	The Energy Policy Council shall prepare a recommended   State Energy Plan. The State Energy Plan shall include recommendations that address at least all of the following:
(1)	Energy efficiency.
(2)	Energy analysis and assessment.
(3)	Contingency and energy emergency planning.
(4)	Energy research and development. 
(b)	The  recommendations included in the energy efficiency component of the State Energy Plan shall be designed to ensure the public health and safety of the people of North Carolina and to encourage and promote conservation of energy by reducing wasteful, inefficient, or uneconomical uses of energy resources.
(c)	The recommendations in the State Energy Plan that address energy efficiency shall include but not be limited to the following:
(1)	Recommendations to the Building Code Council for building design and construction standards that increase the efficient use of energy and water and are economically feasible to implement.
(2)	Recommendations to the Building Code Council for per unit energy requirement allotments based upon square footage for various classes of buildings that would reduce energy consumption, yet are both technically and economically feasible and not injurious to public health, productivity, and safety.
(3)	Recommendations for minimum levels of operating efficiency for all appliances, equipment, and tools whose use requires a significant amount of energy based upon both technical and economic feasibility considerations.
(4)	Recommendations for State government purchases of supplies, vehicles, and equipment and such operating practices as will make possible more efficient use of energy.
(5)	Recommendations on energy conservation policies, programs, and procedures for North Carolina energy consumers.
(6)	Any other recommendations that the Energy Policy Council considers to be a significant part of a statewide conservation effort and that include provisions for sufficient incentives to further energy conservation.
(7)	An economic and environmental impact analysis of the recommended Plan.
(d)	The recommendations in the State Energy Plan that address energy analysis and assessment shall encourage the most efficient use of sources of energy available to meet the needs of the State and to avoid undue dependence upon relatively limited, unreliable, or uneconomical sources of energy. These recommendations shall include but not be limited to the following:
(1)	An analysis of the current pattern of consumption of energy throughout the State by category of energy user and by sources of energy supply. (2)	An assessment of the effect of demand and supply of different forms of energy upon the current pattern of consumption and its effect upon jobs.
(3)	An independent analysis, in five‑ and 10‑year forecasts, of future energy production, supplies and consumption for North Carolina in relation to forecasts of statewide population growth and economic expansion.
(4)	An analysis of the anticipated effects of recommended conservation measures upon the consumption of energy in the State.
(5)	An assessment of the possible effects of national energy and  economic policy and international economic and political conditions upon an adequate and reliable supply of different  forms of energy for North Carolina.
(6)	An assessment of the social, economic, and environmental effects of alternative future consumption patterns on energy usage in North Carolina, including the potentially disruptive effects of supply limitations.
(7)	Recommendations on the use of different future energy sources that seem most appropriate and feasible for North Carolina in meeting expected energy needs during the next five‑ and 10‑year periods, with consideration given to growth trends in North Carolina industry and possible adverse economic impact on such trends.
(e)	The Energy Policy Council shall develop a written contingency and emergency plan that addresses possible shortages of energy in order to protect the public health, safety, and welfare. 
	In developing the contingency and emergency plan under this subsection, the Energy Policy Council shall:
(1)	Encourage the preparation of joint emergency curtailment plans and analyses. If such cooperative plans and analyses are developed between two or more utilities, major producers, or by an association of such companies, the joint plans or analyses may be submitted to the Energy Policy Council in lieu of information required under G.S. 113B‑23(d).
	
(2)	Collect from all relevant governmental agencies any existing contingency plans for dealing with sudden energy shortages or information related thereto.
	
(3)	Include provisions in the contingent and emergency plan that differentiate curtailment of energy consumption by users on the basis of ability to accommodate such curtailments. These provisions shall address at least all of the following: 
a.	A variety of strategies and staged conservation measures of increasing intensity and authority to reduce energy use during an energy crisis, as defined in G.S. 113B‑20 and guidelines and criteria for allocation of energy sources to priority users. The program shall contain alternative conservation actions and allocation plans to reasonably meet various foreseeable shortage circumstances and to allow a choice of appropriate responses.
b.	Evidence that the program is consistent with requirements of federal emergency energy conservation and allocation laws and regulations.
c.	Proposals to assist such individuals, institutions, agriculture and businesses which have engaged in energy saving measures.
	
(4)	Carry out any investigations and studies that are necessary to determine if and when potentially serious shortages of energy are likely to affect North Carolina.
(5)	Make recommendations to the Governor concerning administrative and legislative actions required to avert such shortages.
	 
(6)	Develop procedures, rules,  and agency administrative responsibilities  to implement the contingency and emergency plan and develop procedures, to be included in the contingency and emergency plan, for fair and equitable review of complaints and requests for special exemptions from emergency conservation measures or emergency allocations. 
(k)	The Energy Policy Council shall develop the research and development component of the State Energy Plan. In developing this component of the State Energy Plan, the Energy Policy Council shall encourage research studies and projects that are related to energy conservation and management and to the development of alternative and renewable energy technologies.
	In addition, the Council shall:
(1)	Develop and coordinate a statewide program of research and development in energy related matters and shall give priority in encouraging and supporting such efforts to those areas of energy research and development which are of particular importance to North Carolina.
	  
(2)	Serve as the central repository within State  government for the collection and storage of data and information on energy‑related matters. 
	
(3)	Review and coordinate all State agency research and planning relating to energy in an effort to reduce duplication of work and shall be the lead State agency for coordination of energy matters with local government, regional organizations, other states and the federal government.
	
(4)	Request and utilize the advice, information and services of all State, regional, local and federal agencies and shall cooperate with the President of the United States and all said agencies in matters relating to energy research, programs and policy.
(p)	In addition to specific conservation recommendations, the State Energy Plan shall contain proposals for implementation of such recommendations as can be carried out by executive order. Upon completion of a draft recommended Plan, the Council shall arrange for its distribution to interested parties and shall make the Plan available to the public and the Council further shall hold one or more public hearings on the draft recommended State Energy Plan.
(q)	Upon completion of the State Energy Plan, the Council shall transmit the Plan to the Governor for approval or disapproval. Upon approval, the Governor shall assign administrative responsibility for such implementation as can be carried out by executive order to appropriate agencies of State government, and submit to the General Assembly such proposals which require legislative action for implementation. The Governor shall have the authority to accept, administer, and enforce federal programs, program measures and permissive delegations of authority delegated to the Governor by the President of the United States, Congress, or the United States Department of Energy, on behalf of the State of North Carolina, which pertain to the conservation of energy resources.
(r)	Once the State Energy Plan is approved under subsection (q) of this section, the Governor shall transmit the State Energy Plan to the President of the Senate, to the Speaker of the House of Representatives, to the heads of all State agencies and shall further seek to publicize the State Energy Plan and make it available to all units of local government and to the public at large.
(s)	At least every four years and whenever such changes take place as would significantly affect energy supply or demand in North Carolina, the Energy Policy Council shall review and, if necessary, revise the State Energy Plan, transmitting the revised plan to the Governor pursuant to the procedures contained in subsections (q) and (r) of this section.
"§ 113B‑11.  Powers and authority.
(a)	The Energy Policy Council is authorized to secure directly from any officer, office, department, commission, board, bureau, institution and other agency of the State and its political subdivisions any information it deems necessary to carry out its functions; and all such officers and agencies shall cooperate with the Council and, to the extent permitted by law, furnish such information to the Council as it may request.
(b)	To assure the adequate development of relevant energy information, the Council may require all energy producers and major energy consumers, as determined by the Council, to file such reports and forecasts and at such dates as the Council may request; provided, however, that the Council may request only specific energy‑related information which it deems necessary to carry out its duties as defined in Articles 1 and 2 of this Chapter.
(c)	The Council shall have authority to apply for and utilize grants, contributions and appropriations in order to carry out its duties as defined in Articles 1 and 2 of this Chapter, provided, however, that all such applications and requests are made through and administered by the Department of Administration.
(d)	The Council shall have authority to request said Department to allocate and dispense any funds made available to the Council for energy research and related work efforts in such a manner as the Council desires subject only to the stipulation that said funds be reasonably used in furtherance of the purposes of this Article.
(e)	The Department of Administration shall provide the staffing capability to the Energy Policy Council so as to fully and effectively develop recommendations for a comprehensive State Energy Plan as contained in the provisions of this Article. The Utilities Commission is hereby authorized to make its staff available to the Council to assist in the development of a State Energy Plan.
(f)	Annual funding to the State Energy Office shall be provided by the Department of Administration from the General  Fund.
(g)	The Governor shall have the authority to accept, administer and enforce federal programs, program measures, and permissive delegations of authority delegated to the Governor by the President of the United States, Congress, or the United States Department of Energy, on behalf of the State of North Carolina, which pertain to management of energy resources and to actions necessary to deal with an actual or impending energy shortage.
(h)	The Governor shall have the authority to accept, administer, and enforce the delegation of authority delegated to the State by the Emergency Petroleum Allocation Act and the Emergency Energy Conservation Act of 1979 and any orders, rules, and regulations issued pursuant to those acts as well as any succeeding federal programs, program measures, laws, orders, or regulations relating to the allocation, conservation, consumption, management, or rationing of energy resources.
(i)	The Governor shall have the authority to accept, administer, and enforce federal programs, program measures, and permissive delegations of authority delegated to the Governor by the President of the United States, Congress, or the United States Department of Energy, on behalf of the State of North Carolina, that pertain to actions necessary to deal with an actual or impending energy shortage.
"§ 113B‑12.  Annual reports; contents.
(a)	No later than January 1 of each year, the Energy Policy Council shall transmit to the Governor, the Speaker  of the House of Representatives, the President of the Senate, the chairman of the Utilities Commission, and the appropriate chairmen of the House and Senate committees concerned with energy matters, a comprehensive report providing a general overview of energy conditions in the State. 
(b)	The annual report under subsection (a) of this section shall include, but not be limited to, the following:

			(8)	Trends from the State Energy Plan that impact the State's energy supply and energy use and analyses of these trends.
(9)	Priorities recommended by the Energy Policy Council the previous year. 
(10)	Priorities recommended by the Energy Policy Council for the coming year.
(11)	A summary, related in terms of each component of the State Energy Plan, of projects of the State Energy Office of the Department of Administration.
(12)	An analysis of the impacts of the projects summarized under subdivision (11) of this subsection. 
"Article 2.
"Energy Crisis Administration.
"§ 113B‑20.  Definition; declaration of energy crisis.
(a)	"Energy crisis". – An energy crisis exists when the health, welfare or safety of the citizens of North Carolina are threatened by reason of an actual or impending acute shortage in usable, necessary energy resources.
(b)	Declaration by Governor. – Upon a finding by the Governor that the conditions stated in subsection (a) do exist, the Governor may declare the existence of an energy crisis.
"§ 113B‑21.  Creation of Legislative Committee on Energy Crisis Management.
(a)	The Legislative Committee on Energy Crisis Management is created to consist of the Speaker, as chairman, the Speaker pro tempore of the House of Representatives and the President pro tempore and the majority leader of the Senate. The Lieutenant Governor shall serve as a nonvoting ex officio member, provided, however, that he shall vote to break a tie.
(b)	The Legislative Committee shall convene within 24 hours following the declaration of an energy crisis, as provided in G.S. 113B‑20.
(c)	Members of the Legislative Committee shall be reimbursed for their services pursuant to the provisions of G.S. 138‑5.
"§ 113B‑22.  Procedures for adopting emergency proposals; emergency powers.
(a)	Upon the declaration of an energy crisis, the Governor shall submit to the Legislative Committee for its prompt consideration such emergency orders, rules and regulations as deemed necessary to alleviate the effects of the energy crisis.
(b)	The Governor shall immediately consult with the Legislative Committee about the emergency proposals. The emergency orders, rules, or regulations shall become effective at a time specified by the Governor, but no earlier than 48 hours after submission to the Legislative Committee, provided that they may take effect at an earlier time if approved by a majority vote of the Council of State after the Council makes a finding that the crisis is of such immediacy as to make delay for legislative review cause for probable harm to the public.
(c)	No order, rule, or regulation promulgated under the provisions of this section shall remain in effect for more than 30 days unless the Governor consults with the Legislative Committee. Such consultation is separate and apart from the consultation required by subsection (a) of this section, and may not take place until the order, rule, or regulation has been in effect for at least seven days.
(d)	The Governor's orders, rules and regulations, promulgated, subject to consultation with the Legislative Committee, pursuant to this section, may also include, by way of further enumerated example rather than limitation, provisions for the establishment and implementation of programs, controls, standards, priorities, and quotas for the allocation, conservation and consumption of energy resources; the suspension and modification of existing standards and requirements affecting or affected by the use of energy resources, including those relating to water and air quality control and the hours and days during which public buildings may or may not be required to remain open; and the establishment and implementation of regional programs and agreements for the purposes of coordinating the energy resource programs and actions of the State with those of the federal government and of other states and localities.
"§ 113B‑23.  Administration of plans and procedures.
(a)	Upon the declaration of an energy crisis under G.S. 113B‑20, the Energy Policy Council shall become the emergency energy coordinating body for the State and shall carry out the following duties:
(1)	Identify and determine the nature and severity of expected energy shortages;
(2)	Provide for daily communications with and gather information from significant energy producers, distributors, transporters and major consumers, as determined by the Energy Policy Council, to carry out its responsibilities pursuant to this section;
(3)	Provide data, carry out continuing assessments of the crisis  situation, and make recommendations to the Governor and to the Legislative Committee for further action.
(b)	Upon the declaration of an energy crisis, the Governor shall order the Energy Policy Council, the Utilities Commission, the Attorney General and other appropriate State and local agencies to implement and enforce  any emergency rules, orders, or regulations approved pursuant to G.S. 113B‑22.
(c)	Upon the declaration of an energy crisis, the Governor may employ such measures and give such direction to State and local offices and agencies as may be reasonable and necessary for the purpose of securing compliance with the provisions of this Article and with emergency rules, orders and regulations issued pursuant to G.S. 113B‑22.
(d)	 Upon the declaration of an energy crisis:
(1)	Each electric utility and natural gas utility in the State shall prepare and submit to the Energy Policy Council a proposed emergency curtailment plan setting forth proposals for identifying priority loads or users in the event of the declaration of an energy crisis pursuant to G.S. 113B‑20, and proposals for supply allocation to such priority loads or users.
(2)	Each major oil producer doing business in this State as determined by the Energy Policy Council shall prepare and submit to the Energy Policy Council an analysis of how any national supply curtailment pursuant to federal regulations shall affect the supply for North Carolina and how priority users will be determined and available supplies allocated to such users.
(3)	Each major renewable and alternative energy provider, as determined by the Energy Policy Council, shall assess stock and shall inventory available facilities and resources.
"§ 113B‑24.  Enforcement; penalties for violations.
(a)	The Attorney General and the law‑enforcement authorities of the State and its political subdivisions shall enforce the provisions of this Article and all orders, rules and regulations promulgated pursuant to G.S. 113B‑22.
(b)	Any person who violates this Article or any rules, orders or regulations promulgated pursuant to G.S. 113B‑22 or knowingly or willfully submits false information in any report required herein shall be guilty of a Class 1 misdemeanor.
(c)	The provisions of this Article or any rules, orders or regulations promulgated pursuant to G.S. 113B‑22 may be enforced by bringing an action to enjoin such acts or practices as may be in violation and, upon a proper showing, a temporary restraining order or a preliminary or permanent injunction shall be issued. The relief sought may include a mandatory injunction commanding any person to comply with any such order, rule or regulation and restitution of money received in violation of any such order, rule or regulation. The Attorney General shall bring any action under this subsection upon the request of the Governor, the Legislative Committee on Energy Crisis Management, the Energy Policy Council, or upon his direction if he deems such action advisable and in the public interest. The Attorney General may institute such action in the Superior Court of Wake County, or, in his discretion, in the superior court of the county in which the acts or practices constituting a violation occurred, are occurring or may occur."
SECTION 3.  Appointments of members to the Energy Policy Council under G.S. 113B‑3, as amended by Section 2 of this act, and designation of a chairman to the Energy Policy Council under G.S. 113B‑4, as amended by Section 2 of this act, shall be made no later than January 31, 2006.
SECTION 4.   This act becomes effective October 1, 2005.