in North Carolina

Fiscal Budgets North Carolina state budget and finances Tax policy in North Carolina Finance Financial regulation in North Carolina Pensions Public pensions in North Carolina Pension health in North Carolina Civil liberties Affirmative action in North Carolina Campaign finance requirements in North Carolina Campaign finance requirements for North Carolina ballot measures Nonprofit regulation in North Carolina Education Charter schools in North Carolina Higher education in North Carolina Public education in North Carolina School choice in North Carolina Elections Ballot access Ballot access requirements for political candidates in North Carolina Ballot access requirements for political parties in North Carolina Political parties in North Carolina Ballot access requirements for presidential candidates in North Carolina Redistricting in North Carolina Voting in North Carolina Energy and Environment Energy policy in North Carolina Fracking in North Carolina Oil and gas extraction on federal land in North Carolina Endangered species in North Carolina Environmental policy in North Carolina Healthcare Healthcare policy in North Carolina Medicaid spending in North Carolina Effect of the Affordable Care Act in North Carolina Immigration Immigration in North Carolina

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Fracking in the U.S.
Energy policy in the U.S.
State fracking policy
State energy policy
Glossary of energy terms

Energy policy involves governmental actions affecting the production, distribution, and consumption of energy in a state. Energy policies are enacted and enforced at the local, state, and federal levels and may change over time. These policies include legislation, regulation, taxes, incentives for energy production or use, standards for energy efficiency, and more. Stakeholders include citizens, politicians, environmental groups, industry groups, and think tanks. A variety of factors can affect the feasibility of federal and state-level energy policies, such as available natural resources, geography, and consumer needs.

This article outlines state-level oil and gas regulations, renewable energy programs, oil and gas production, energy usage, energy and electricity prices, fuel taxes, and utilities in North Carolina.

See the tabs below for further information:

1. Policy: This tab provides information about state regulations on energy production and policies related to oil and gas production, fracking, renewable energy generation, energy efficiency, and net metering.
2. Production: This tab provides information about total energy production by energy source in North Carolina.
3. Usage: This tab presents information about electricity consumption by energy source.
4. Prices and taxes: This tab presents information about average energy and electricity prices, per capita spending on energy, and fuel taxes.
5. Utilities: This tab presents information about public and private utilities, electricity markets, the types of utilities in North Carolina, and the electric reliability organizations in North Carolina.
6. Background: This tab provides information about the types of nonrenewable and renewable energy sources produced and used in the United States, an energy profile of North Carolina, a state profile of North Carolina from the Almanac of American Politics (2016), and economic indicators in the state, such as median income.

Policy

State regulations

The North Carolina Department of Environmental Quality has regulatory authority over oil and natural gas operations in the state. State rules and regulations cover the drilling of all wells used for oil or gas exploration, the spacing of wells, permitting requirements for oil and gas operators, injection wells used to enhance oil and gas recovery or to dispose of wastewater, the cementing and plugging of wells, the underground storage of natural gas, the prevention of well blowout and leaks, well restoration, reporting requirements, and more. All North Carolina rules and regulations related to oil and gas operations are found in Subchapter 05H of the North Carolina Administrative Code.^[1]

Fracking

See also: Fracking in North Carolina

The Department of Environmental Quality's Oil and Gas Program is responsible for regulating hydraulic fracturing (also known as fracking) in North Carolina. The program enforces regulations for the reporting and disclosure of the types of fluids used in fracking and at what volume, a description of each chemical additive used in fracking, the maximum amount of surface and injecting pressure used during the process, well safety, and other information considered necessary by the program for the regulation of fracking. More detailed information on oil and gas rules and regulations can be found in Subchapter 05H of the North Carolina Administrative Code.^[1]

Renewable energy policies

States have implemented funding and financial incentive programs to subsidize or otherwise increase investment in renewable energy resources such as wind, solar, and hydroelectric power. These programs include renewable portfolio standards, grants, rebate programs, tax incentives, loans, performance-based incentives, and more. The aim of the policies generally involves reducing the cost of renewable energy production for consumers, reducing regulatory compliance costs, reducing investment risks involving renewable energy, and/or increasing the adoption of renewable energy sources by individuals and businesses.^[2]

Renewable Portfolio Standard

See also: Renewable Portfolio Standard

A Renewable Portfolio Standard (RPS), also known as a renewable electricity standard, is a mandate intended to increase the amount of renewable energy production and use. Under these standards, a utility company can be required by a state to have a certain percentage of its electricity come from certain renewable energy resources. In addition, states may give tax credits to utility companies to fulfill these requirements.^[3][4]

As of February 2017, North Carolina was one of 30 states with a Renewable Portfolio Standard. The North Carolina State Legislature enacted the standard in August 2007. The standard requires all investor-owned utilities in the state to procure 12.5 percent of their retail electricity sales (in the year 2020) from eligible renewable energy sources by the year 2021. Publicly owned municipal utilities and electric cooperatives must procure 10 percent of their sales from eligible renewable sources by the year 2018; municipal utilities and cooperatives are also subject to separate regulations. Eligible renewable energy sources include solar energy, wind energy, [[hydroelectric power facilities with a capacity of 10 megawatts (MW) or less, tidal and wave energy, biomass, landfill methane gas, and hydrogen produced from any of the above renewable sources.^[5][6]

Grant programs

States, nonprofit organizations, and/or private utilities may operate grant programs for renewable energy. These programs may include state or private funding for energy installation costs, research and development, infrastructure and business development, system testing, and renewable energy feasibility studies (studies that look into the potential for renewable energy use in specific areas). Grants can be provided with or without requiring a recipient to match the grant. Additional incentives, such as lower interest loans, may be included with a grant.^[2]

As of March 2015, North Carolina was one of 26 states that did not have state-run, utility-run, or locally run grant programs for renewable energy. See the map below for grant programs by state.^[2]

States with grant programs for renewable energy as of March 2015 (Source: Environmental Protection Agency)

Loan programs

Loan programs may be used to offer lower interest loans or other financing options to individuals and businesses to reduce the upfront costs of purchasing and installing renewable energy technologies. Loan programs may include programs that use payments from earlier borrowers to provide loans for new borrowers, programs in which building owners reduce their energy consumption to pay their upfront costs for renewable energy technologies, and programs that allow individuals with a higher debt-to-income ratio to purchase homes that use less energy, among others.^[2]

As of March 2015, North Carolina was one of 36 states with a state-run loan program for renewable energy technologies. In 2009, the North Carolina State Legislature established a program allowing cities and counties to distribute loans for renewable energy and energy efficiency measures for residential and commercial buildings. In addition, cities and counties can partially fund their loan programs with federal energy and conservation block grants. Eligible renewable energy sources and measures vary depending on the city or county government.^[2][7]

A complete list of state, local, and private incentive, loan, grant, and assistance programs for renewable energy and energy efficiency in North Carolina can be found here.

See the map below for renewable energy loan programs by state.

States with loan programs for renewable energy as of March 2015 (Source: Environmental Protection Agency (EPA)

Energy efficiency regulations

As of February 2017, North Carolina required all new residential and commercial buildings to meet energy efficiency standards. All residential buildings must meet energy efficiency standards for heating, ventilating, air conditioning, water heating, and lighting found in the 2009 International Residential Code. All commercial buildings must meet similar standards under the 2009 International Energy Conservation Code.^[5][8]

Net metering

Net metering is a billing system in which customers who generate their own electricity, usually using renewable sources (such as solar panels) are able to sell their excess electricity back to the electric grid, which is an interconnected network that is used to deliver electricity. This requires electricity to be able to flow both to and from a consumer.^[9][10][11]

As of October 2016, North Carolina was one of 41 states with a statewide net metering policy. Customers of the state's three investor-owned utilities—Duke Energy, Progress Energy, and Dominion North Carolina Power—may participate in met metering. Eligible renewable energy sources include solar energy, wind energy, hydroelectric power, tidal and wave energy, biomass, and combined heat and power systems. For a complete list of net metering programs by state, click here.^[5][12][13]

Recent legislation

The following is a list of recent energy policy bills that have been introduced in or passed by the North Carolina State Legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

Ballot measures

Energy policy ballot measures

See also: Energy on the ballot and List of North Carolina ballot measures

Ballotpedia has not covered any ballot measures relating to state and local energy policy in North Carolina.

Utility policy ballot measures

See also: Local utility tax and fees on the ballot

Ballotpedia has not covered any ballot measures relating to local utility tax and fees in North Carolina.

Production

The sections below include statistics on total energy production in North Carolina, oil and natural gas production in North Carolina, oil and gas production in North Carolina over time (2004-2014), and oil and gas production on federal land, including the amount of federal land leased in North Carolina for production.

Total energy production

The table below provides information regarding energy production in North Carolina in British thermal units (Btu). A British thermal unit is used to measure the heat contained in different fuels. The U.S. Department of Energy defines a Btu as "the quantity of heat required to raise the temperature of 1 pound of liquid water by 1 degree Fahrenheit." Fuels are discussed in terms of Btu to compare fuels with different energy content and prices. For example, one gallon of gasoline equals 120,524 Btu.^[14]

Nonrenewable energy production

The table below provides information regarding nonrenewable energy production in North Carolina. For coal data, the phrase productive capacity refers to the maximum amount of coal that could be expected to be produced in 2014. The natural gas and crude oil production data refer to the amounts of natural gas and crude oil produced in December 2014 and April 2016, respectively.^[15][16]

Oil and gas production (2004-2014)

Note: This section provides information about oil and gas production on private and state-owned lands. Information on oil and gas production on federal lands is accessible here.

Because North Carolina had no crude oil or natural gas reserves as of 2015, there was no oil or gas production in the state.^[15]

Energy usage

The section below includes statistics on electricity consumption in the state by energy type (in 2014).

Consumption

The table below provides information about energy consumption by source in North Carolina in 2014. Information from select surrounding states is provided for comparison.^[15]

Prices and taxes

The sections below include information on energy prices and spending in North Carolina, fuel taxes and state taxes in North Carolina and in neighboring states, and an overview of the federal tax on gasoline.

Energy prices

The price of electricity is affected by supply and demand. The supply of electricity is affected by fuel prices, environmental and energy regulations, power plant capacity, weather, and other factors. Demand for electricity also affects the price. Because electricity cannot be stored for long periods of time, it must be produced and used when it is needed. As demand for electricity increases, the price also generally increases.^[17][18]

The table below provides information about energy prices in North Carolina as of April 2016. Information from select surrounding states is provided for comparison.^[15]

Electricity prices can vary depending on the type of consumer; consumer categories include residential, commercial, industrial, and in some cases, transportation. The rate-making process is both political and economic. The table below presents information about electricity prices by consumer type in North Carolina in April 2016. Information from select surrounding states is provided for comparison.

Energy spending

The table below provides information about energy spending in North Carolina as of 2014. Information from select surrounding states is provided for comparison.

Fuel taxes

Click to enlarge.

Revenue collected by federal, state, and local governments from fuel taxes is usually used to fund transportation infrastructure such as roads and bridges. Some states may charge an excise tax based on how much gas or diesel is purchased. Some states may charge retail tax based on the average price of gas over a certain period. Additionally, some states may charge an environmental tax to be used for environmental projects. The Tax Foundation, which created the map to the right, used data from the American Petroleum Institute, which converted each state's different tax structure into cents per gallon to compare each state's gas taxes. In 2016, gas taxes accounted for 23 percent of the price of gasoline. Crude oil accounted for 40 percent of the price of gasoline, refining accounted for 24 percent of the price, and distribution and marketing accounted for 13 percent of the remainder.^[19][20]

The table below provides information about state fuel taxes by type (excluding the federal gas taxes) in North Carolina as of January 2016. As of January 2016, North Carolina levied a 35.3 cent state gasoline tax and a 35.3 cent state diesel tax. North Carolina ranked 8th highest in total gasoline taxes (federal and state) and 7th highest in total diesel fuel taxes as of January 2016.^[21][22]

Federal tax

The first federal tax on gasoline was proposed by Secretary of the Treasury Ogden L. Mills under President Herbert Hoover (R) as a revenue generating measure to balance the budget during the Great Depression. A 1-cent tax per gallon of imported gasoline and fuel oil was passed as part of the Revenue Act of 1932 and signed by President Franklin D. Roosevelt (D). The 1-cent tax continued until 1951 when the tax was increased to 2 cents in part to raise revenue during the Korean War. In 1956, the tax was raised to 3 cents to fund the Interstate Highway System. During this time, the Highway Trust Fund was created as a means to fund highway construction. Since 1956, there have been increases to the tax. As of April 2016, the gas tax was last raised by President Bill Clinton (D) in 1993 to 18.4 cents per gallon.^[23]

Utilities

The sections below include general information on utilities, an overview of utilities and electricity markets, information on the types of utilities in North Carolina, an overview of electricity reliability organizations (EROs), and the EROs that oversee electricity in North Carolina.

Background

Utilities are firms that own and/or operate facilities to generate, transmit, and/or distribute electricity, gas, and/or water to the public. Electric utilities are commercial entities that own and operate facilities to generate, transmit, and distribute electricity to the public and/or the industrial sector. State and local regulators oversee transmission and distribution charges. Local utilities read electric meters and bill individuals or businesses, generally on a monthly basis.^[24][25]

Utilities are defined differently in each state and in federal legislation. Two general types of utilities are private and public utilities. Private utilities, commonly known as investor-owned utilities, provide stocks to investors and sell bonds. These utilities are regulated by state regulatory agencies. State agencies are also responsible for setting retail rates charged by investor-owned utilities, overseeing utility infrastructure, and ensuring that investor-owned utilities respond to customer service demands. Public utilities include government or municipally owned utilities. Another type of utility is an electric cooperative. Cooperatives are nonprofit businesses voluntarily owned and managed by the individuals and businesses that use their services. They are commonly used in rural areas that do not have access to a larger state or region-wide electric grid.^[25]

Electricity markets

Electricity markets in each state are defined as regulated or deregulated. A regulated market includes utilities that own and manage the power plants that generate the electricity, the electricity transmission lines, and the distribution equipment (such as wires and electric poles). In addition, the utilities rates are approved and regulated by local and state agencies. A deregulated market requires utilities to divest ownership in the generation and transmission of electricity. In this market, utilities oversee the interconnection from a meter at a household or business to the power grid and is responsible for billing ratepayers.^[26][27]

Depending on the state and/or area, public utilities may provide most or all energy services to homes and businesses, or a state may allow other private electricity providers to transmit and distribute electricity in addition to other utilities. For example, one type of private provider is a retail energy provider, which sells electricity in areas with retail competition. The provider purchases wholesale electricity and the delivery services (such as transmission lines) and can price electricity to particular consumers.^[26][27]

As of February 2017, North Carolina was one of 40 states with a regulated electricity market. The North Carolina Utilities Commission is responsible for regulating the rates and services of all electric utilities in the state.^[28]

Electric reliability organizations

The Energy Policy Act of 2005 required the Federal Energy Regulatory Commission (FERC) to designate an electric reliability organization (ERO) for the United States. An ERO oversees the reliability of a nation's electric grid. In 2006, FERC granted authority to the North American Electric Reliability Corporation (NERC) to develop and enforce grid reliability standards for the United States. NERC, a self-regulated nonprofit corporation, is authorized to enforce grid reliability standards for all users, owners, and operators of the U.S. electrical system.^[29]

NERC works with eight regional reliability organizations to oversee the U.S. electrical system. These organizations, known as regional entities, are comprised of officials from investor-owned utilities, federal power agencies, electric cooperatives, and state and municipal utilities. Regional entities enforce NERC and regional reliability standards. Further, they forecast electricity demand and coordinate operations with other regional entities.^[30]

North Carolina EROs

As of February 2017, the SERC Reliability Corporation was the nonprofit regulatory commission that oversees electricity reliability in 16 central and southeastern states, including North Carolina. SERC was authorized by the North American Electric Reliability Corporation in July 2006 to serve as an ERO under the Federal Power Act. SERC monitors compliance with electricity reliability standards and assesses seasonal and long-term electricity grid reliability.^[31]

Background

The sections below include an overview of the types of renewable and nonrenewable energy produced and consumed in the United States, an energy profile of North Carolina (from the U.S. Energy Information Administration), a general profile of North Carolina (from the 2016 edition of the Almanac of American Politics), and various economic indicators in North Carolina.

Background on energy resources

Nonrenewable energy sources, such as coal, oil, and natural gas (sometimes known as fossil fuels), and renewable sources, such as hydropower, wind, biofuels, and solar energy, are produced in each state, though at different levels depending on a state's geography, energy consumption, and the raw materials available in a particular state. For example, several states do not have coal, oil, and/or natural gas resources. States that lack these resources import these fuels.^[32]

According to the U.S. Department of Energy, oil, coal, and natural gas comprise the majority of the resources used to generate power in the United States. In 2014, the top five energy-producing states were the top five fossil fuel-producing states—Texas, Wyoming, Pennsylvania, Louisiana, and West Virginia. These states' fossil fuel production accounted for approximately 42 percent of U.S. energy production in 2014. States with fewer coal, oil, and natural gas resources generally consume less energy. In 2014, the bottom five energy-producing states—Rhode Island, Delaware, Hawaii, Nevada, and New Hampshire—produced 0.2 percent of U.S. energy and consumed approximately 2 percent of total U.S. energy.^[32]

The production of biofuels (liquid fuels created from plant or plant-derived materials) is generally concentrated in the Midwest—states such as Illinois, Iowa, Nebraska, and South Dakota) given the region's agricultural production of crops such as corn, which is used to make ethanol, a biofuel that can be blended with gasoline and used as a transportation fuel.^[32]

Other renewable sources are used to generate power in the states include hydroelectric power, which accounted for about half of all renewable energy production in the United States in 2014.^[32]

North Carolina energy profile

As of 2014, North Carolina ranked the bottom third of all states in energy consumption per capita. The state's largest energy consumer was the electric power sector followed by the residential and transportation sectors.^[15]

Approximately 85 percent of the petroleum consumed in the state as of 2014 was used in the transportation sector, primarily as motor vehicle gasoline. According to the U.S. Energy Information Administration (EIA), the state has no proven crude oil reserves or production. As of 2014, two pipelines delivered petroleum to North Carolina from the Gulf Coast.^[15]

North Carolina does not have natural gas reserves or production. As of 2014, three interstate natural gas pipelines delivered natural gas to North Carolina from southern United States and from Western states.^[15]

In 2015, nuclear power became the largest source of electricity generation in North Carolina. Around 33 percent of the state's electricity in 2015 came from nuclear power. Prior to 2012, coal-fired power plants accounted for more than 50 percent of the state's net electricity generation. Hydroelectric power accounted for more than 50 percent of North Carolina's electricity generation from renewable energy sources in 2015.^[15]

State profile

Presidential voting pattern

See also: Presidential voting trends in North Carolina

North Carolina voted Republican in five out of the six presidential elections between 2000 and 2020.

Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, six are located in North Carolina, accounting for 2.91 percent of the total pivot counties.^[33]

Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. North Carolina had six Retained Pivot Counties, 3.31 percent of all Retained Pivot Counties.

More North Carolina coverage on Ballotpedia

• Elections in North Carolina
• United States congressional delegations from North Carolina
• Public policy in North Carolina
• Influencers in North Carolina
• North Carolina fact checks
• More...

Economic indicators

See also: Economic indicators by state

North Carolina's GDP increased by 1.4 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.^[34][35][36]

In 2013, most residents in North Carolina earned incomes between 200 and 399 percent of the federal poverty level, with a median annual household income of $44,254. At 19 percent, North Carolina had the largest portion of residents that earned incomes below 100 percent of the federal poverty level among its neighboring states.^{[37][38][39][40]}

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

See also

• Energy policy in the U.S.
• Fracking in North Carolina
• Net metering
• Renewable Portfolio Standard
• Environmental policy in North Carolina

Recent news

The link below is to the most recent stories in a Google news search for the terms North Carolina energy policy. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Footnotes

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