In a move aimed at balancing energy demands and environmental concerns, the N.C. House of Representatives has voted to advance legislation that establishes new regulations for data center development while delaying the retirement of coal and gas power plants until a new nuclear facility is approved.
The decision was met with a partisan divide, as Democrats voiced support for data center regulations but opposed keeping coal plants active, citing potential increases in electricity costs.
Senate Bill 730, introduced by House Republicans, is portrayed as a means to protect consumers from rising energy bills, which have been exacerbated by recent events like the Christmas Eve rolling blackouts experienced during Winter Storm Elliott.
Rep. Dean Arp, R-Union, emphasized the necessity of maintaining “reliable baseload energy generation” until clean energy alternatives are available. “Reliable baseload energy generation must stay online. We don’t retire dependable, dispatchable energy generation until firm, clean baseload generation is ready to replace it. Critics have offered no other option,” he stated during the debate.
The bill, co-authored by Rep. Matthew Winslow, R-Franklin, faced criticism from Democrats like Rep. Maria Cervania, D-Wake, who argued for separating data center regulations from broader energy policies. Her motion to divide the bill was ultimately rejected after House Majority Leader Brenden Jones, R-Columbus, urged members to oppose it.
Despite the contention, the House approved Senate Bill 730 with a 69-44 vote, largely along party lines. Some Democrats, such as Pricey Harrison, D-Guilford, and Shelly Willingham, D-Edgecombe, joined Republicans in support.
Duke Energy’s Coal Usage
Critics of the bill argue that maintaining coal plants until a nuclear plant is built will impose higher costs on consumers. Rep. Brandon Lofton, D-Mecklenburg, warned of locking ratepayers into “an outdated, more costly, less efficient means of energy” and proposed an amendment to protect consumers from these costs, which was tabled by Republicans.
Duke Energy’s resource plan indicates that coal prices are unpredictable and less competitive compared to natural gas or renewable sources. The plan points out labor shortages and increased costs in coal mining, further exacerbating coal’s competitiveness as a generation resource.
Currently, Duke operates eight coal-fired power units in North Carolina and proposes phasing out coal beginning in 2031, with a complete transition by 2040. Rep. John Blust, R-Greensboro, defended the bill’s approach, emphasizing the need for a dependable energy source to avoid brownouts.
Building a Nuclear Plant
Lofton highlighted a report indicating that constructing a nuclear reactor could take 10 to 13 years, potentially placing a financial burden on consumers. Duke’s timeline includes several years for licensing and equipment procurement, with construction taking an additional five to eight years.
Nuclear power, championed by Arp, is seen as a clean and reliable energy source. “You can’t get any cleaner than nuclear, zero emissions running day and night, every season, every storm. The replacement isn’t a gamble. It’s the cleanest baseload there is,” he said.
Arp also expressed frustration over the reliance on Duke’s previous filings for legislative discussions, noting the company’s lack of a public stance on the bill.
Data Center Regulations
Senate Bill 730 introduces new regulations for large data centers, particularly those consuming over 100 megawatts of electricity monthly. It prohibits local governments from offering incentives and mandates sound impact studies for nearby buildings.
The bill also sets electricity service contract requirements to protect ratepayers from bearing the costs of serving data centers. An amendment requires the N.C. Department of Environmental Quality to establish rules for cooling systems to address water use concerns.
As the bill returns to the Senate, its future remains uncertain. Senate leader Phil Berger, R-Rockingham, commented on the necessity of reviewing the bill’s specifics before proceeding.
