August 31, 2001

Legislative Briefs

Clean air legislation: The Associated Press reported Thursday that a watered-down version of the so-called “Clean Smokestacks” legislation will come up in the House next week. Reportedly, the revised measure has halved the $2 billion price tag of installing state-of-the-art scrubbers at the 14 coal-fired power plants operated in North Carolina by Duke Power Co. and CP&L. The AP story said the revised version of the S. 1078 Improve Air Quality/Electric Utilities {Metcalf} will be unveiled Tuesday. It would require the utilities to cut their maximum allowed sulfur dioxide and nitrogen oxide emissions by about two-thirds by 2007. A further requirement to cut sulfur dioxide emissions by another 50 percent or so by 2013 could be halted by the secretary of the N.C. Department of Environment and Natural Resources. Sponsors of the legislation said the predicted costs were lowered by not counting that second phase of reductions, according to the newspaper account. The bill has languished in a House committee since it was approved by the Senate in April. NCCBI has expressed reservations about the legislation because the entire cost of retrofitting the coal-fired power plants would be passed on the utility customers, mainly businesses. Large manufacturers such as International Paper and DuPont have said their utility bills would go up between $100,000 and $1 million a year. Residential customers were expected to pay an average of $3 to $5 more per month. The compromise, in addition to not counting the second round of pollution reductions, would string out by four years the power companies' ability to recoup their costs to 10 years, according to the AP.

Patients Bill of Rights: The Senate on Thursday failed to concur with House amendments to S. 199 Managed Care Patients Bill of Rights {Wellons}. A House-Senate conference committee is expected to be appointed to try to resolve the differences..

State ports tax credit: The House tentatively approved legislation Thursday continuing the business tax credit for using the state ports in Wilmington and Morehead City for another five years, to sunset in 2006.  H. 1388 Extend Sunset On State Ports Tax Credit extends the current tax credit, which was scheduled to end this tax year.