On July 2, Governor Josh Stein vetoed Senate Bill 266, forces power companies to cut emissions on the way to carbon neutrality by 2050.
A previous version of this email mistakenly stated, "This bill forces North Carolina power companies to cut power-sector carbon dioxide emissions 70% below 2005 levels by 2030, on the way to carbon neutrality by 2050."
This bill repeals a requirement from 2021 that forces North Carolina power companies to cut power-sector carbon dioxide emissions 70% below 2005 levels by 2030, on the way to carbon neutrality by 2050.
To justify this, Gov. Stein claimed the bill could saddle North Carolina consumers with “up to $23 billion” in extra natural gas costs.
That sounds dire… until you understand how that number was pulled together.
That $23 billion was taken from a memo published by 3 NC State professors, who only utilized the highest possible trajectory from the state Utilities Commission.
These professors did not take into account how SB 266 would change the future mix of power plants. It also bars the very technologies - advanced nuclear, long-duration storage, and hydrogen-ready turbines - which the bill explicitly gives the Utilities Commission the freedom to implement.
The professors’ memo adds what a spike in natural gas prices might cost, but it doesn’t take into account other big expenses and savings.
Independent modeling in our Lighting the Path report found that a nuclear-led mix achieved the 2050 neutrality target with significantly less infrastructure and transmission costs.
A second research report - Power Plays - undercuts the professors’ argument from another angle. It shows how activist bureaucrats throttled natural-gas pipeline capacity, and that fixing those regulatory bottlenecks would do far more for ratepayers than clinging to an arbitrary 2030 deadline.
The memo Governor Stein cited also curiously includes the solar tax credit from the Inflation Reduction Act. However, as you likely know, the One Big Beautiful Bill that was signed into law by President Trump ends that tax credit this year and phases out further solar and wind subsidies after 2027.
Ironically, under the memo’s model, solar would jump in costs, while gas would remain unchanged.
The memo justifying Gov. Stein’s veto is too flimsy to carry the weight he placed on it, and if the General Assembly’s goal is affordable, dependable electricity on the way to carbon neutrality by 2050, Senate Bill 266 is the more straightforward path than the status quo.
You can read more about energy here, here, and here.
During the blistering heat wave last month, the U.S. Department of Energy (DOE) issued an emergency order to Duke Energy Carolinas on June 24, allowing them to temporarily exceed environmental emissions limits to generate enough electricity
The order aimed to ensure maximum system reliability, prevent power outages, and protect public health and safety
Duke was allowed to use additional generation units, regardless of emission limits or permit limitations, through June 25 at 10 p.m
Here are several takeaways from this emergency:
Nuclear provided unwavering power, generating nearly half the production each day
While solar provided very little power each day (obviously only during daylight hours)
Duke only used 20% less solar generation after the order
Natural gas provided the second-highest amount of generation, and after the emergency order, increased by 6.2%
And coal played an important role after the emergency order, as its utilization increased by 30%
Tryon Palace in New Bern celebrated the 249th anniversary of the Declaration of Independence in style this 4th of July
Built by British Royal Governor William Tryon from 1767 to 1770, then serving as home to Royal Governor Josiah Martin as the American Revolution unfolded, the palace provided a great backdrop for Independence Day festivities
Reenactors and participants dressed in Revolutionary-era attire, tents displayed colonial-era wares, the entire Declaration of Independence was read aloud, and a fife-and-drum corps played the “greatest hits of the Revolution”
In a surprise, Governor Josh Stein and his wife were present for the event, and reminded attendees that New Bern was the first city in North Carolina to celebrate the new nation’s independence in 1778, and the 3rd city in the nation (after Boston and Philadelphia) to host an Independence Day celebration
If you love America and are inspired by the courage of the patriots who founded our country, head to Tryon Palace next July 4!
Over the last 4 decades, North Carolina has become increasingly dependent on federal funding, gradually shifting away from federalist principles and weakening its autonomy
This is most evident in the state’s 2023 decision to expand Medicaid, extending coverage to young, able-bodied adults
Medicaid is a joint federal-state program, with the federal government matching a portion of the state’s spending
The match rate for Medicaid expansion enrollment is 90%, regardless of state income
Many states, including North Carolina, impose taxes on health care providers to cover their share of Medicaid costs
The One Big Beautiful Bill Act (OBBBA) incrementally reduces the cap on these “provider taxes” from 6 to 3.5%
This could dismantle North Carolina’s Medicaid expansion financing model
Over the past 40 years, North Carolina's reliance on federal funds has more than doubled
In FY 1988, federal funds accounted for 20% of the state's General Fund revenue
By FY 2024, this share had risen to 46%
Dependence on federal funds notably accelerated during economic downturns, largely due to expansive federal stimulus
North Carolina received nearly $23 billion in federal funds for COVID-19 response since FY 2020
Over 33% of these funds arrived in FY 2023 or 2024, after the pandemic's peak
The OBBBA could significantly reduce federal funding for North Carolina Medicaid, potentially by billions annually
Importantly, 2023 Medicaid expansion included a critical safeguard: if the authorized state revenue sources could not fully cover its share of the costs, the state would discontinue expansion coverage
The primary funding source for NC’s Medicaid expansion is provider taxes
This enabled the state to secure 90% federal matching funds, without needing additional state appropriations
However, the OBBBA lowers the maximum provider tax rate the state can charge, reducing the available provider tax revenue
If revenue falls far enough, the safeguard will kick, requiring either a raise in taxes, a reduction in coverage, or termination of expansion
With all of this in mind, North Carolina should uphold the 2023 safeguard provision, prepare to discontinue Medicaid expansion, and start reducing reliance on federal funding
