Rep. Wray’s Raleigh report


The rapid increase in gas prices last week when Hurricane Ike threatened the Gulf Coast underscored the need to find new, alternative fuels.

In North Carolina, we have made this effort a priority over the past two years, investing millions of dollars in biofuels research and updating our laws to require more use of biodiesel fuels.

The General Assembly has also adopted other innovative energy-saving initiatives and set plans in place to reduce energy consumption. In all, we have developed a very balanced approach to helping the state and our residents move away from dependence on fossil fuels. This week, I will update you on some of the highlights of our energy reforms during the past biennium.

Thank you for your support in these efforts, and I hope you will contact me if you have any questions or concerns. In addition, if you believe gas stations in your area have unfairly raised the price of gasoline during the past several days, please contact the Attorney General’s office to file a price gouging complaint. You can file the complaint by calling 1-877-566-7226 or visiting the Attorney General’s Web site, www.ncdoj.gov.

Fuel

Last year, the state created the Biofuels Center of North Carolina and in our past two budgets we have given the center a total of $10 million. The center was established to help universities, companies and agencies encourage the growth of biomass that can be converted to biofuels and to encourage and fund research. The center will also try to attract federal money and coordinate the state’s biofuels initiatives.

Biodiesel fuel produced by an individual for their personal use in a private vehicle is no longer subject to the motor fuel excise tax under a bill (S1272) we approved. Such fuel is sometimes made from discarded cooking oil or similar products and supporters of the measure argued the materials should not be taxed twice.

School buses that use diesel fuel must be able to operate with B20, fuel that contains at least 20 percent of biodiesel. The bill (S1452) also requires that at least 2 percent of the fuel purchased annually by local school districts for school buses must be a minimum blend of B20. Another bill (S1277) requires that new state-owned vehicles that run on diesel fuel must carry a warranty that assures they are capable of running on B20.

As part of the state budget, we improved the tax credit we have given since 2004 to companies that build renewable fuel production plants. The changes allow more flexibility in the credits and are expected to attract more such plants to the state.

Renewable Energy

North Carolina has established a requirement that North Carolina power utilities get at least 12.5 percent of their power from renewable sources and energy efficiency by 2021. The bill (S3) is expected to help cut pollution and our dependence on foreign oil while also creating more of a market for renewable energy. North Carolina is the first state in the Southeast to adopt such a standard and it came after months of negotiations between lawmakers, utility company representatives and environmentalists.

During this critical time, the General Assembly has set aside money for the operation of the State Energy Office, the state’s lead agency for energy programs and services, by appropriating nearly $2.7 million a year for operating costs. Nearly $2 million of the money will be used for a utility savings initiative and to support the operation of energy centers at North Carolina State University, North Carolina A&T State University and Appalachian State University. The state also appropriated $10 million for a reserve fund to support energy efficiency in state buildings.

Conservation

The state continues to try to be a model for responsible energy use and we have backed up our commitment with a new law. The law (S668) requires existing state buildings to reduce energy consumption 20 percent by 2010 and 30 percent by 2015, based on 2003-04 levels. New buildings are designed and constructed to use 30 percent less energy. It also requires state agencies and institutions to file annual energy management plans, strategies, and reports on consumption.

Bioenergy

We showed our support for alternative energy sources by expanding a bioenergy initiative at North Carolina State University. The $3.75 million will help researchers find new technologies for efficient and clean use of traditional energy sources; alternative, environmentally safe, and renewable energy sources; and research of energy technologies and their impact on the North Carolina’s rural economy.

A new law prevents municipalities or neighborhood associations from banning the use of solar panels. The panels use the heat of the sun to produce energy. They are sometimes banned because they are considered unsightly, but the law (S670) prohibits outright bans while still allowing reasonable rules about where the panels can be located.

Miscellaneous

The state has created a sales tax holiday on energy efficient appliances. The state estimates the holiday will save consumers $1.4 million in taxes. The three-day holiday will begin on the first Friday of November and run through the following Sunday.

Developers in five cities who take significant energy conservation measures in their building projects will now be eligible for incentives such as higher density allowances. The cities are Asheville, Carrboro, Chapel Hill, Charlotte and Wilmington.

Counties and cities can now reduce building permit fees or give partial rebates to encourage construction of buildings designed to conserve energy.

2008 Dropout Prevention Grants Announcement

The North Carolina General Assembly has appropriated $15 million in grant monies to support programs and initiatives that target students at risk of dropping out of school. The Committee on Dropout Prevention has been charged by the General Assembly with awarding the grants under this program. Grant applications are available online.

Meetings/Events

I plan to attend the following meetings/events:

  • Northampton County Farm Bureau Annual Meeting, Jackson-September 22
  • Study Circle Kickoff-Halifax Community College, Weldon-September 23
  • Economic Development Board Meeting, RTP-September 24-25
  • 3rd Annual Workforce & Economic Summit, Halifax Community College, Weldon-September 25
  • Northampton County Chamber of Commerce “Business after Hours”, Lasker-September 25
  • Kerr-Tar Regional Council of Governments Annual Awards Banquet, Henderson Convention Center-September 25
  • 25th Warren County Firemen’s Day Parade, Warrenton-September 27
  • Please invite me to attend your county, city, community or civic, etc. meetings or events.

    As I’ve said many times before, I hope you will continue to let me know how you feel about the issues that are being debated by the North Carolina Legislature and the challenges you and your family are facing each day.

    By working together, we can make Northampton, Vance and Warren Counties and all regions of North Carolina a better place to live, work and raise a family.

    Please remember that you can visit the General Assembly’s website to look up bills, view lawmaker biographies and access other information.