North Carolina § 120-285 - Creation and membership of Joint Legislative Commission on Energy Policy.

§ 120-285. Creation and membership of Joint Legislative Commission on Energy Policy.

The Joint Legislative Commission on Energy Policy is established. The Commission shall consist of 10 members as follows: Five members of the Senate appointed by the President Pro Tempore of the Senate, at least one of whom is a member of the minority party. Five members of the House of Representatives appointed by the Speaker of the House of Representatives, at least one of whom is a member of the minority party. Terms on the Commission are for two years and begin on the convening of the General Assembly in each odd-numbered year. Members may complete a term of service on the Commission even if they do not seek reelection or are not reelected to the General Assembly, but resignation or removal from service in the General Assembly constitutes resignation or removal from service on the Commission. A member continues to serve until the member's successor is appointed. History (2012-143, s. 6(a).) Editor's Note. - Session Laws 2012-143, in the preamble, provides: "Whereas, in S.L. 2011-276, the General Assembly directed the Department of Environment and Natural Resources, in conjunction with the Department of Commerce, the Department of Justice, and the Rural Advancement Foundation (RAFI-USA), to study the issue of oil and gas exploration in the State and the use of horizontal drilling and hydraulic fracturing for that purpose, including the study of all of the following: "(1) Oil and gas resources present in the Triassic Basins and in any other areas of the State. "(2) Methods of exploration and extraction of oil and gas, including directional and horizontal drilling and hydraulic fracturing. "(3) Potential environmental, economic, and social impacts arising from such activities, as well as impacts on infrastructure. "(4) Appropriate regulatory requirements for management of oil and gas exploration activities, with particular attention to regulation of horizontal drilling and hydraulic fracturing for that purpose; and "Whereas, pursuant to S.L. 2011-276, the Department of Environment and Natural Resources, in conjunction with the Department of Commerce, the Department of Justice, and the Rural Advancement Foundation (RAFI-USA), issued a draft report in March of 2012; and "Whereas, pursuant to S.L. 2011-276, the Department of Environment and Natural Resources received public comment regarding the draft report, including public comment received at public meetings held on March 20, March 27, and April 2, 2012; and "Whereas, pursuant to S.L. 2011-276, the Department of Environment and Natural Resources (DENR), in conjunction with the Department of Commerce, the Department of Justice, and the Rural Advancement Foundation (RAFI-USA), issued a final report on April 30, 2012; and "Whereas, the final report set forth a number of recommendations, including recommendations concerning all of the following: "(1) Development of a modern oil and gas regulatory program, taking into consideration the processes involved in hydraulic fracturing and horizontal drilling technologies, and long-term prevention of physical or economic waste in developing oil and gas resources. "(2) Collection of baseline data for areas near proposed drill sites concerning air quality and emissions, as well as groundwater and surface water resources and quality. "(3) Requirements that oil and gas operators prepare and have approved water management plans that limit water withdrawals during times of low-flow conditions and droughts. "(4) Enhancements to existing oil and gas well construction standards to address the additional pressures of horizontal drilling and hydraulic fracturing. "(5) Development of setback requirements and identification of areas where oil and gas exploration and development activities should be prohibited. "(6) Development of a State stormwater regulatory program for oil and gas drilling sites. "(7) Development of specific standards for management of oil and gas wastes. "(8) Requirements for disclosure of hydraulic fracturing chemicals and constituents to regulatory agencies and the public. "(9) Prohibitions on use of certain chemicals or constituents in hydraulic fracturing fluids. "(10) Improvements to data management capabilities. "(11) Development of a coordinated permitting program for oil and gas exploration and development activities within the Department of Environment and Natural Resources where it will benefit from the expertise of State geological staff and the ability to coordinate air, land, and water permitting. "(12) Development of protocols to ensure that State agencies, local first responders, and industry are prepared to respond to a well blowout, chemical spill, or other emergency. "(13) Adequate funding for any continued work on the development of a State regulatory program for the natural gas industry. "(14) Appropriate distribution of revenues from any taxes or fees that may be imposed on oil and gas exploration and development activities to support a modern regulatory program for the management of all aspects of oil and gas exploration and development activities using the processes of horizontal drilling and hydraulic fracturing in the State, and to support local governments impacted by the activities, including, but not limited to, sufficient funding for improvements to and repair of roads subject to damage by truck traffic and heavy equipment from these activities. "(15) Closure of gaps in regulatory authority over the siting, construction, and operation of gathering pipelines. "(16) Clarifications needed to address local government regulatory authority over oil and gas exploration and development activities, and use of horizontal drilling and hydraulic fracturing for that purpose. "(17) Additional research required on impacts to local governments and local infrastructure, as well as potential economic impacts from oil and gas exploration and development activities. "(18) Development of provisions to address liability of the oil and gas industry for environmental contamination caused by exploration and development activities, particularly with regard to groundwater contamination. "(19) Establishment of a process that affords additional public participation in connection with development of a modern oil and gas regulatory program; and "Whereas, the final report also states '[a]fter reviewing other studies and experiences in oil and gas-producing states, DENR has concluded that information available to date suggests that production of natural gas by means of hydraulic fracturing can be done safely as long as the right protections are in place'; and "Whereas, the General Assembly concurs in the conclusion of the final report that hydraulic fracturing can be done safely as long as the right protective measures are in place before any permits for horizontal drilling and hydraulic fracturing are issued; and "Whereas, it is the intent of the General Assembly to authorize oil and gas exploration and development activities using horizontal drilling and hydraulic fracturing treatments, but to prohibit the issuance of permits for these activities until such time as the General Assembly has determined that a modern regulatory program for the management of oil and gas exploration and development in the State and the use of horizontal drilling and hydraulic fracturing for that purpose has been fully established and takes legislative action to allow the issuance of permits; and "Whereas, it is the intent of the General Assembly to establish a modern regulatory program based on the recommendations of the final report and the following principles: "(1) Protection of public health and safety. "(2) Protection of public and private property. "(3) Protection and conservation of the State's air, water, and other natural resources. "(4) Promotion of economic development and expanded employment opportunities. "(5) Productive and efficient development of the State's oil and gas resources; Now, therefore." Session Laws 2014-4, s. 21, provides: "The Joint Legislative Commission on Energy Policy shall study how the development of the oil and gas industry in the State would affect the property tax revenues of local governments. The study shall examine how the presence of energy minerals will affect property enrolled in the present use value program. The study shall also study ways to limit the growth of property tax revenues that result from increased property valuations due to the development of the oil and gas industry in the State. The Commission shall report to the 2015 General Assembly on its findings and recommendations, including any legislative recommendations." Session Laws 2014-4, s. 26, provides: "The Mining and Energy Commission and the Department of Environment and Natural Resources shall study the development of midstream infrastructure in North Carolina, which is necessary or advisable to facilitate the exploration, development, and production of the State's oil and gas resources. Infrastructure examined shall include development of pipelines, gathering systems, compressor stations, pumping systems, on-site and near-site storage tanks, and natural gas liquids processing systems. All State agencies, including the constituent institutions of The University of North Carolina, shall provide information and support to the Commission and the Department in the conduct of this study. The Commission shall report the findings of this study, including specific proposals for legislative action, to the Joint Legislative Commission on Energy Policy on or before March 1, 2015." Session Laws 2017-192, s. 12, provides: "The North Carolina Policy Collaboratory (Collaboratory) at the University of North Carolina at Chapel Hill shall conduct a study on energy storage technology. The study shall address how energy storage technologies may or may not provide value to North Carolina consumers based on factors that may include capital investment, value to the electric grid, net utility savings, net job creation, impact on consumer rates and service quality, or any other factors related to deploying one or more of these technologies. The study shall also address the feasibility of energy storage in North Carolina, including services energy storage can provide that are not being performed currently, the economic potential or impact of energy storage deployment in North Carolina, and the identification of existing policies and recommended policy changes that may be considered to address a statewide coordinated energy storage policy. The Collaboratory shall provide the results of this study no later than December 1, 2018, to the Energy Policy Council and the Joint Legislative Commission on Energy Policy."