NC House passes data center regulation, pro-nuclear power bill amid concerns it may prolong coal use
The North Carolina House passed Senate Bill 730, which introduces new regulations for large data centers, including a ban on local incentives and requirements for cooling systems. The bill also contains provisions that prevent Duke Energy from retiring coal-fired power plants until a new nuclear plant receives permission for construction. Democrats largely supported data center regulations but opposed the energy policy, citing concerns about increased electricity costs for ratepayers.
The N.C. House of Representatives recently passed Senate Bill 730, a comprehensive piece of legislation that seeks to both regulate data center development and reform energy policy within the state. The vote was largely along party lines, with Republicans, led by Rep. Dean Arp and Rep. Matthew Winslow, advocating for the bill's passage to ensure grid reliability and protect ratepayers. Democrats, while generally supportive of data center regulations, strongly opposed the energy policy components, arguing that linking coal plant retirement to future nuclear plant construction would lead to higher electricity bills.
The data center provisions in Senate Bill 730 mandate new "guardrails" for facilities using at least 100 megawatts of electricity per month. These include a ban on local governments offering incentives to such data centers, a requirement for local governments to study their sound impacts on nearby buildings, and specific conditions for electricity service contracts, ensuring a minimum 15-year term and preventing costs from being passed to other ratepayers. An earlier provision for closed-loop cooling was amended to task the N.C. Department of Environmental Quality with creating rules by September 1, 2024, requiring either closed-loop or reclaimed water cooling systems "as necessary" and banning evaporative cooling systems.
On the energy policy front, the bill prevents Duke Energy from retiring coal- or gas-fired power plants until it obtains permission to build a new nuclear plant. This measure sparked significant debate, with Democrats like Rep. Maria Cervania and Rep. Brandon Lofton attempting to divide the bill, arguing the distinct policy areas deserved separate consideration. They expressed concern that keeping older, more costly coal plants online, potentially for over a decade given Duke Energy's estimates for nuclear plant construction, would burden ratepayers. Republicans maintained that these measures are crucial to prevent brownouts and ensure a stable baseload energy supply, particularly given the intermittency of renewable sources. The bill now moves to the Senate for further consideration.