North Carolina became the first state in the Southeast to enact a Renewable Energy and Energy Efficiency Portfolio Standard (REPS) when Governor Mike Easley signed Senate Bill 3 on Monday, August 20, 2007.

The historic legislation addresses the need for safe, reliable and economical electricity amid the competing factors of growing electricity demand, an aging electric power generation fleet, and the need to jointly develop the State’s abundant renewable energy resources and affordable energy efficiency, which will allow North Carolinians to consume less electricity without sacrificing service or comfort.

“A vast majority of State leaders believe we must develop renewable energy resources, use energy more efficiently, and build the next generation of electric power plants that will most likely rely on coal or nuclear fuel,” said Ivan Urlaub, NCSEA Executive and Policy Director. “If we are going to convince State leaders that energy efficiency and renewable energy is capable of satisfying North Carolina’s future electricity needs, we need to implement these technologies on a large scale today, not tomorrow.”

The Act can create and sustain 2,700 jobs statewide, result in solar technologies on approximately 125,000 North Carolina homes and eliminate the need for 1,800 megawatts of coal and nuclear power plants.

“In terms of total energy production and savings, the renewable energy and energy efficiency portfolio standard is the fourth largest in the country,” Urlaub said. “In addition to an aggressive standard, North Carolina will be at the forefront of state energy policy designed to encourage customer-sited electricity generation from renewable resources, as well as more efficient energy use that can reduce the need for electricity from coal or nuclear power plants.”

The multi-faceted bill directs North Carolina utilities to invest in energy efficiency and provide customers with electricity from renewable resources such as biomass, solar, small hydropower and wind beginning in 2009 and growing to no less than 10 percent by 2018 and 12.5 percent of utility sales by 2021. Examples of energy efficiency include energy star windows, programmable thermostats, compact fluorescent light bulbs, improved building insulation and weatherization, lighting controls for buildings, and more efficient motors for commercial and industrial processes.

Senate Bill 3 also directs the North Carolina Utilities Commission to study alternative rate structures that promote renewable energy and more efficient energy use. The Act encourages investors to commit capital to investor-owned utilities for new electric power plants and provides for the phase out of taxes on the sale of energy to North Carolina farmers and manufacturers.

North Carolina is considered to have some of the most favorable state regulations for financial investment in traditional electric power plants. Senate Bill 3 establishes public policy that can make North Carolina a national leader in renewable energy generation and more efficient energy use.

The most critical piece of Senate Bill 3 is language that requires investment in renewable energy and energy efficiency to come first. New coal and nuclear power plants cannot be built unless electric utilities demonstrate that coal or nuclear power is more cost effective and reliable than any combination of clean energy resources.

“Arguably, North Carolina currently applies this test in its annual integrated resource planning process,” Urlaub said, “which serves as the regulatory technique designed to assess the potential electric power resources that can provide reliable, efficient and economical electric service to future North Carolina electricity customers.”

“However, since 2005, NCSEA has invested countless hours and thousands of dollars arguing that North Carolina’s integrated resource planning process lacks the needed information and specific detail to truly accomplish integrated resource planning’s intent,” Urlaub said. “Furthermore, changing regulatory policy is only one piece of the puzzle. Real change will only occur when many small decisions by individual North Carolinians show our State’s renewable energy and energy efficiency skeptics that these resources are not our fourth and fifth fuels but our first fuels.”

NCSEA is committed to assisting North Carolina businesses and individuals in their efforts to make the necessary energy decisions today that break the energy mold of the past. In conjunction with the signing of Senate Bill 3, NCSEA invites all North Carolinians to attend the annual Green Building and Solar Home Tour scheduled for Oct. 6 and 13. The event will offer 14 tours in over 35 communities and feature over 100 buildings and facilities.

“We can’t think of a clearer call to action,” said McCayne Miller, NC Sustainable Energy Association Business and Outreach Manager. “North Carolina’s leaders need to see renewable energy generation and more efficient energy use implemented on large scales that provide reliable, efficient and economical electric service. Senate Bill 3’s aggressive standards set out a challenge. North Carolina residents and businesses are demanding and now must adopt renewable energy and energy efficient technologies today. Take the first step and witness what your neighbors and colleagues have already accomplished on October 6 and 13.”

In the near future, NCSEA will announce additional initiatives to challenge and partner with citizens, communities, businesses, industries, and decision makers to meet and surpass Senate Bill 3’s clean energy goals.