A BILL TO BE ENTITLED
AN ACT to amend the renewable energy PORTFOLIO STANDARD.
The General Assembly of North Carolina enacts:

AMEND RENEWABLE ENERGY PORTFOLIO STANDARD requirements
SECTION 1.(a)  G.S. 62‑133.8 reads as rewritten:
"§ 62‑133.8.  Renewable Energy and Energy Efficiency Portfolio Standard (REPS).
…
(b)	Renewable Energy and Energy Efficiency Standards (REPS) for Electric Public Utilities. –
(1)	Each electric public utility in the State shall be subject to a Renewable Energy and Energy Efficiency Portfolio Standard (REPS) according to the following schedule:
Calendar Year	REPS Requirement
2012	3% of 2011 North Carolina retail sales
2015	6% of 2014 North Carolina retail sales
2018 and thereafter	8% of 2017 North Carolina retail sales
	
…
(c)	Renewable Energy and Energy Efficiency Standards (REPS) for Electric Membership Corporations and Municipalities. –
(1)	Each electric membership corporation or municipality that sells electric power to retail electric power customers in the State shall be subject to a Renewable Energy and Energy Efficiency Portfolio Standard (REPS) according to the following schedule:
Calendar Year	REPS Requirement
2012	3% of 2011 North Carolina retail sales
2015	6% of 2014 North Carolina retail sales
2018 and thereafter	8% of 2017 North Carolina retail sales
.…"
SECTION 1.(b)  This section becomes effective July 1, 2017, and applies to cost recovery proceedings that occur on or after that date.

Energy efficiency for REPS compliance
SECTION 2.(a)  G.S. 62‑133.8(b)(2)c. reads as rewritten:
"c.	Reduce energy consumption through the implementation of an energy efficiency measure; provided, however, an electric public utility subject to the provisions of this subsection may meet up to twenty‑five percent (25%) of the requirements of this section through savings due to implementation of energy efficiency measures. Beginning in calendar year 2018 and each year thereafter, an electric public utility may meet up to forty percent (40%) of the requirements of this section through savings due to implementation of energy efficiency measures."
SECTION 2.(b)  This section becomes effective July 1, 2017.

COST RECOVERY AND HOLD HARMLESS
SECTION 3.  Incremental costs incurred by an electric power supplier prior to July 1, 2017, to comply with any requirement repealed or amended by this act may be recovered as provided in G.S. 62‑133.8(h). For the purposes of cost recovery under this act, costs incurred prior to July 1, 2017, include all of the following:
(1)	Costs under purchase contracts for renewable energy entered into prior to July 1, 2017, for the purpose of complying with REPS requirements repealed or amended by this act.
(2)	The costs of renewable energy facilities built by a public utility for which a certificate of public convenience and necessity has been issued by the Commission prior to July 1, 2017, for the purpose of complying with REPS requirements repealed or amended by this act.
(3)	Other costs the Utilities Commission determines are reasonable and prudent costs incurred prior to July 1, 2017, to comply with the REPS requirements repealed or amended by this act.

SEVERABILITY CLAUSE AND EFFECTIVE DATE
SECTION 4.(a)  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part declared to be unconstitutional or invalid.
SECTION 4.(b)  Except as otherwise provided, this act is effective when it becomes law.