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Bill Analysis - House Bill 220 Assuring Choice of Energy Service, Second Edition (House Commerce, March 23, 2021)

Summary

A legislative analysis of House Bill 220: Assuring Choice of Energy Service, Second Edition, for the House Commerce committee, dated March 23, 2021, prepared by Chris Saunders, Staff Attorney. It states that the bill would prohibit local governments from adopting any ordinance that prohibits connection, reconnection, modification, or expansion of an energy service based on the type or source of energy delivered to the end-user. Energy service would mean the provision of natural gas, renewable gas, hydrogen, liquefied petroleum gas or other liquid petroleum products, or electricity. The bill would not limit a local government's choice of energy service for its own property or its recovery of reasonable permit costs, and the act would be effective when it becomes law.

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Cite this document

“Bill Analysis - House Bill 220 Assuring Choice of Energy Service, Second Edition (House Commerce, March 23, 2021).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-03-23-h220-smtq-25-e2-v1-002-83b7c9280d/, SHA-256 10a1123fe306ca3dc04cfca2ab40b0be1776e50d414c5cf64532affa242053da.

Full text

                                                     HOUSE BILL 220:
                                                     Assuring Choice of Energy Service.
      2021-2022 General Assembly
     Committee:     House Commerce. If favorable, re-refer to Date:           March 23, 2021
                    Rules, Calendar, and Operations of the House
     Introduced by: Reps. Arp, Miller, Saine, Szoka              Prepared by: Chris Saunders
     Analysis of:   Second Edition                                            Staff Attorney

     OVERVIEW: House Bill 220 would prohibit local governments from adopting any ordinance that
     prohibits connection, reconnection, modification, or expansion of an energy service based on the type
     or source of energy to be delivered to the end-user of the energy service.


     CURRENT LAW AND BACKGROUND: Under Section 1 of Article VII of the NC Constitution, the
     General Assembly is empowered to "provide for the organization and government and the fixing of
     boundaries of counties, cities and towns, and other governmental subdivisions, and, except as otherwise
     prohibited by this Constitution, may give such powers and duties to counties, cities and towns, and other
     governmental subdivisions as it may deem advisable." The general police power is delegated to counties
     and cities in Chapter 153A and Chapter 160A of the General Statutes. However, the police power is subject
     to certain limitations. For example, a county or city may not authorize acts that are expressly prohibited
     by State or federal law.


     BILL ANALYSIS:
     For purposes of this act, the term "energy service" would mean the provision of natural gas; renewable
     gas; hydrogen; liquefied petroleum gas, renewable liquefied petroleum gas, or other liquid petroleum
     products; or electricity by a person legally authorized to provide such service. The terms “renewable gas”
     and “renewable liquified petroleum gas” would mean gas derived from a renewable energy resource.
     Section 1.(a) of House Bill 220 would prohibit a city from adopting an ordinance that that prohibits
     connection, reconnection, modification, or expansion of an energy service based on the type or source of
     energy to be delivered to the end-user of the energy service. Section 1.(b) would apply the same
     prohibition to counties.
     Sections 1.(a) and 1.(b) of the bill would not be construed to:
       •           Limit the ability of a local government to choose the energy service for property owned by the
                   local government.
       •           Prohibit a local government from recovering reasonable costs associated with reviewing and
                   issuing a permit.
       •           Affect the authority of a local government to manage or operate a utility owned by the local
                   government, including the local government's authority to require persons residing within their
                   jurisdictions to obtain energy service from a utility owned by local government or a joint
                   municipal power agency of which a city is a member.
                                                                                                                                                             Legislative Analysis
     Jeffrey Hudson
                                                                                                                                                                   Division
         Director                                           H220-SMTQ-25(e2)-v-1                                                                               919-733-2578
This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
House Bill 220
Page 2

•        Impair any contract executed by a city prior to the effective date of this act for the supply of
         electric service.


EFFECTIVE DATE:          This act would be effective when it becomes law.

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