A BILL TO BE ENTITLED
AN ACT to direct the department of environment and natural resources to develop a state implementation plan in compliance with the united states environmental protection agency's regulation of carbon dioxide emissions for existing stationary sources.
The General Assembly of North Carolina enacts:
SECTION 1.  Definitions. – The following definitions apply to this act:
(1)	"Department" means the Department of Environment and Natural Resources.
(2)	"Electric generating unit" means a steam generating unit, an integrated gasification combined cycle facility, or a stationary combustion turbine regulated under the EPA Clean Power Plan.
(3)	"Electric power supplier" means a public utility, an electric membership corporation, or a municipality that sells electric power to the retail electric power customers in the State.
(4)	"Environmental Protection Agency" or "EPA" means the United States Environmental Protection Agency or the Administrator of the United States Environmental Protection Agency.
(5)	"EPA Clean Power Plan" means the Environmental Protection Agency's regulation of carbon dioxide emissions for existing stationary sources, as published under docket EPA‑HQ‑OAR‑2013‑0602, and as subsequently amended by the EPA.
(6)	"State Plan" means the State Plan authorized by the EPA Clean Power Plan.
SECTION 2.  In accordance with the requirements of the Environmental Protection Agency's regulation of carbon dioxide emissions for existing stationary sources, as published under docket EPA‑HQ‑OAR‑2013‑0602, and as subsequently amended by the EPA, the Department of Environment and Natural Resources shall develop a State Plan for compliance with the EPA Clean Power Plan. In developing the State Plan, the Department shall do all of the following:
(1)	Develop the State Plan in consultation with the Environmental Management Commission and the Utilities Commission.
(2)	Establish a State Plan Advisory Board to assist it with the development of the State Plan. The State Plan Advisory Board shall consist of all of the following:
a.	Representatives of other State agencies with expertise related to the development of the State Plan or responsibility for implementing the State Plan, including the Governor's Office.
b.	Representatives of electric power consumers, including the Public Staff of the Utilities Commission.
c.	Representatives of electric power suppliers.
d.	Representatives of nongovernmental environmental protection and conservation organizations.
e.	Representatives of businesses that provide renewable energy or renewable energy equipment and infrastructure.
f.	Representatives of scientific, academic, or research institutions with expertise in electric power generation and supply, the regulation and management of carbon dioxide emissions, and the public health effects of carbon dioxide emissions.
g.	Persons or representatives of any other entities that the Department determines could provide assistance in the development of the State Plan.
(3)	Hold at least three public hearings no later than February 1, 2016, for the purpose of obtaining evidence and information regarding the development of the State Plan. The Department shall have the power to subpoena witnesses for such purposes. One of these public hearings shall be held in the mountain region of the State, one in the central region of the State, and one in the coastal region of the State. The Department may hold additional public hearings for the purpose of obtaining evidence and information regarding the development of the State Plan. The Department shall accept and consider all oral testimony received regarding the development of the State Plan.
(4)	Establish a Web site capable of receiving written testimony regarding the development of the State Plan and to inform the public of the Department's progress in implementing this act. The Department shall accept and consider all written testimony submitted regarding the development of the State Plan.
(5)	Determine how much credit the State will receive toward meeting carbon dioxide reduction goal set out in the EPA Clean Power Plan based on actions the State has already taken to encourage the development of renewable energy sources and to reduce emissions from electric generating units.
(6)	Consider all of the following in the development of the State Plan:
a.	Whether to rely on measures the Environmental Protection Agency used to calculate the carbon dioxide reduction goal, as well as other measures that were not part of the Environmental Protection Agency's goal‑setting process.
b.	Whether the State should participate in multistate carbon dioxide reduction programs that already exist, or whether a new multistate carbon dioxide reduction program should be established.
c.	Whether the State should collaborate with one or more other states for purposes of compliance with the EPA Clean Power Plan.
d.	Whether the State should invest in energy efficiency programs to assist in complying with the EPA Clean Power Plan.
e.	When individual electric generating units must make reductions.
f.	How to provide flexibility to electric power suppliers in complying with the State Plan.
g.	The extent to which any of the following should be included in the State Plan:
1.	Demand‑side energy efficiency programs.
2.	Renewable energy standards.
3.	Efficiency improvements at existing electric generating units.
4.	Cofiring or switching to natural gas, transmission efficiency improvements, and energy storage technologies, to the extent the EPA allows these measures for compliance with the EPA Clean Power Plan.
5.	The retirement or deactivation of existing electric generating units.
6.	The expansion of nonremitting sources, such as nuclear power.
7.	Market‑based trading.
8.	Other energy conservation programs.
9.	Other methods of compliance.
h.	How best to avoid stranded investments in existing electric generating units, including a consideration of the remaining useful life of each electric generating unit.
(7)	Prioritize the components of the State Plan based on a least‑cost compliance approach to benefit the retail electric power customers in the State.
(8)	Consider the necessity and value of having a diverse generation fleet to ensure electric reliability in the State.
(9)	Consider the feasibility and value of including in the State Plan a process that would allow exceedances of the EPA Clean Power Plan to occur within the State when necessary to ensure reliable electric service, maintain safe operations, or prevent excessive increases in rates. If the Department determines that the State Plan should include such a process, the Department shall work with the Utilities Commission and the State Plan Advisory Board to define excessive increases in rates.
(10)	Consider whether to request from the Environmental Protection Agency an extension of time from the June 30, 2016, State Plan submission deadline in order to fully consider the factors set out in this act and to allow adequate time for the State to enact or amend applicable State law necessary for establishment of a State Plan that will comply with the requirements of the EPA Clean Power Plan. Notwithstanding this subdivision, the Department shall submit all the information required for initial submittals under the EPA Clean Power Plan.
(11)	Meet at least monthly with the Environmental Management Commission, the Utilities Commission, and the Advisory Board in the development of the State Plan.
SECTION 3.  The Department shall provide interim reports on its progress in implementing this act and developing the State Plan to the Environmental Review Commission no later than October 1, 2015, and January 1, 2016. The Department shall provide a final report on its progress in implementing this act and developing the State Plan to the Environmental Review Commission no later than April 1, 2016.
SECTION 4.  The State Plan established by the Department pursuant to this act or any other State or federal law shall have no legal effect if any of the following occurs:
(1)	The Environmental Protection Agency fails to issue or withdraws the EPA Clean Power Plan.
(2)	A court of competent jurisdiction invalidates the EPA Clean Power Plan.
SECTION 5.  This act is effective when it becomes law.