Report on Senate Bill 266 and Its Impact on Sustainable Development Goals in North Carolina

Introduction

On Thursday, June 26, 2025, ratepayers and leaders from environmental and clean energy organizations visited the North Carolina General Assembly to urge Governor Josh Stein to veto Senate Bill 266 (S266) and to encourage state House and Senate members to uphold the veto. This report highlights the key concerns regarding S266, emphasizing its implications for the United Nations Sustainable Development Goals (SDGs), particularly those related to affordable and clean energy (SDG 7), climate action (SDG 13), and reduced inequalities (SDG 10).

Background of Senate Bill 266

Originally intended to assist victims of Hurricane Helene in rebuilding homes and businesses, S266 was significantly altered. The bill now proposes to increase rates for Duke Energy’s customers in North Carolina to support the utility’s construction projects while allowing Duke Energy to abandon its commitment to reduce carbon emissions.

Key Issues and SDG Implications

1. Abandonment of Carbon Emission Reduction Goals (SDG 13: Climate Action)

   S266 frees Duke Energy from its pledge to reduce carbon emissions by 70% from 2005 levels by 2030, undermining North Carolina’s climate commitments established in 2021 legislation.

2. Increased Financial Burden on Residential Customers (SDG 10: Reduced Inequalities)
   • The bill changes fuel and purchased power cost allocations, shifting a higher burden onto residential customers rather than non-residential customers.
   • It allows for more frequent rate increases through expanded cost recovery mechanisms.
   • These changes disproportionately affect families and low-wage workers, increasing energy poverty risks.
3. Incentivization of Fossil Fuels over Renewable Energy (SDG 7: Affordable and Clean Energy)
   • S266 incentivizes the use of risky and expensive fuels such as natural gas instead of clean renewable sources like solar and wind.
   • The bill permits Duke Energy to exceed current caps on new generation included in rates and to recover construction financing costs through shortcuts, potentially leading to financial risks for ratepayers.

Concerns Raised by Stakeholders

• Rep. Maria Cervania (District 41)
  • Emphasized the importance of maintaining the 2030 carbon reduction goal to hold utilities accountable and ensure climate progress.
  • Warned against shifting power cost allocations that overcharge residential customers.
  • Expressed concerns about construction work in progress (CWIP) allowing projects to fail or run over budget.
• Chris Herndon, Chapter Director, NC Sierra Club
  • Highlighted the lack of customer choice due to Duke Energy’s monopoly and the risk of higher bills from volatile fuel prices.
  • Noted broad voter opposition across political affiliations to provisions allowing utilities to charge customers before power plants supply energy.
• Shelley Robbins, Senior Decarbonization Manager, Southern Alliance for Clean Energy
  • Reported a $24.8 million cost shift from non-residential to residential customers due to changes in cost allocation.
  • Warned that rising natural gas prices will exacerbate utility bill increases for families and low-wage workers.
• Shannon Binns, Executive Director, Sustain Charlotte
  • Noted an ongoing 14.6% rate hike in the region and the financial strain on households.
  • Warned about the risks of CWIP laws shifting financial burdens to ratepayers when projects fail or exceed budgets.
• Jeffrey Robbins, Executive Director, CleanAIRE NC
  • Criticized the elimination of decarbonization targets and the reliance on volatile natural gas markets over cheaper solar power.
  • Highlighted the public health risks from pollutants emitted by new natural gas plants.
• Jeff Monico, Chair, Cypress Group of the Sierra Club
  • Expressed disappointment over the abandonment of environmental protections and support for renewable energy development in eastern North Carolina.
  • Advocated for maintaining policies that promote clean energy, economic growth, and job creation.
• Beverly Bard, Resident of N.C. House District 60
  • Shared personal concerns about the financial impact of S266 on retirees and fixed-income residents.
  • Called for legislators to prioritize citizens over monopoly utilities.

Summary of S266 Provisions Affecting SDGs

• Elimination of the 2030 carbon emission reduction target (SDG 13)
• Incentives favoring fossil fuels over renewable energy sources (SDG 7)
• Increased financial burden on residential ratepayers, exacerbating inequalities (SDG 10)
• Expanded cost recovery mechanisms allowing more frequent and higher rate increases
• Potential for financial risks to be transferred from utilities to consumers through CWIP provisions

Conclusion

Senate Bill 266 poses significant challenges to North Carolina’s progress toward achieving key Sustainable Development Goals, particularly in climate action, affordable and clean energy, and reducing inequalities. Stakeholders urge the state government to veto the bill to protect ratepayers, uphold environmental commitments, and promote a sustainable energy future for all North Carolinians.

About the Southern Alliance for Clean Energy (SACE)

Since 1985, the Southern Alliance for Clean Energy has promoted responsible and equitable energy choices to ensure clean, safe, and healthy communities throughout the Southeast. More information is available at cleanenergy.org.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article discusses issues related to energy affordability, clean energy transition, and renewable energy development.
2. SDG 13: Climate Action
   • The article highlights concerns about carbon emission reduction targets and climate progress.
3. SDG 11: Sustainable Cities and Communities
   • References to protecting communities from environmental harm and ensuring affordable energy for families.
4. SDG 3: Good Health and Well-being
   • Concerns about air pollutants from fossil fuels affecting respiratory health and public health.
5. SDG 10: Reduced Inequalities
   • Discussion of cost shifts burdening residential customers, especially low-wage workers, while corporations benefit.

2. Specific Targets Under Those SDGs Identified

1. SDG 7: Affordable and Clean Energy
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Target 7.1: Ensure universal access to affordable, reliable, and modern energy services.
2. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
   • Target 13.3: Improve education, awareness-raising and human and institutional capacity on climate change mitigation.
3. SDG 11: Sustainable Cities and Communities
   • Target 11.6: Reduce the adverse per capita environmental impact of cities, including air quality improvement.
4. SDG 3: Good Health and Well-being
   • Target 3.9: Reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination.
5. SDG 10: Reduced Inequalities
   • Target 10.2: Empower and promote the social, economic and political inclusion of all, irrespective of income or other status.

3. Indicators Mentioned or Implied to Measure Progress

1. Carbon Emission Reduction
   • Indicator: Reduction in carbon emissions by 70% from 2005 levels by 2030 (mentioned as a pledge Duke Energy made).
2. Energy Cost and Affordability
   • Indicator: Changes in residential and non-residential customer energy bills and cost burdens (e.g., $24.8 million cost shift, 14.6% rate hike).
   • Indicator: Frequency and magnitude of fuel cost adjustments and rate increases.
3. Renewable Energy Development
   • Indicator: Share and capacity of renewable energy sources like solar and wind in the energy mix.
   • Indicator: Number and capacity of new natural gas power plants approved versus renewable projects.
4. Air Quality and Health Impacts
   • Indicator: Emissions of nitrogen oxides, fine particulate matter, sulfur dioxide, carbon monoxide, and volatile organic compounds.
   • Indicator: Incidence of respiratory and other health issues related to air pollution.
5. Public Opinion and Political Accountability
   • Indicator: Polling data showing voter opposition to provisions allowing utilities to charge customers upfront for power plants.

4. Table of SDGs, Targets, and Indicators

Source: cleanenergy.org