Regulatory reform was identified as one of the top priorities for Republican leaders in the North Carolina Legislature this year, and in advance of crossover day, some progress was made.
First, the Regulatory Reform Act of 2016-2017 (Senate Bill 131) was passed by both chambers and signed into law by Gov. Cooper on May 4. SB 131 consolidates, simplifies, and eliminates unnecessary rules and reporting requirements from various local governments and state agencies. According to a press release from Speaker Tim Moore’s office, this includes:
- Streamlining mortgage notice requirements
- Allowing agencies to fulfill public records requests online
- Eliminating redundant reports from North Carolina’s bureaucracy
- Exempting basic landscaping materials from stringent stormwater control regulations
- Seeking flexibility for the state from excessive stream mitigation requirements
- Streamlining permits for private well-water systems
- Allowing certain building classes to voluntarily comply with the Energy Conservation Code
- Providing financial and regulatory relief to residents of certain counties by no longer requiring state emissions inspections on vehicles
- Exempting vehicles greater than twenty years old from emissions inspections, lifting a cost burden on those who cannot afford to purchase newer automobiles
Some legislators are also attempting again freeze requirements that utility companies purchase a certain amount of energy from solar farms, wind farms, and other renewable energy sources. This requirement is part of a renewable energy portfolio, which requires utility companies to obtain 12.5 of their energy from renewable sources by 2021. However, under House Bill 745, this standard would be frozen at current levels: 6 percent. Proponents of the bill say the renewable energy standard has resulted in $1.6 billion in subsidies to renewable energy producers—more than what was projected—and caused consumers to pay more for energy costs.
Meanwhile, another regulatory reform effort has stalled. House Bill 500, the craft beer bill, has been watered down. HB 500 would have raised the limit on how many barrels of beer a brewer could distribute on their own before being forced to contract with a wholesale distributor, and it would also have made it easier for brewers to break their contract with wholesalers, which is currently nearly impossible to do. Both of these provisions have been removed, leaving a few minor reforms, such as allowing breweries to sell beverages made offsite, introducing a study of whether rewriting the state’s alcohol law is warranted, and making it easier for breweries with multiple locations to sell, store, and transfer their product.
