Amends title of Part 2J of Article 9 in Chapter 130A to "Management of Clean Energy Equipment" (was, "Management of Solar Energy Equipment") and creates Subpart 1. Solar Energy Equipment, which includes GS 130A-309.240 through GS 130A-309.243.
Adds new Subpart 2. Utility-Scale Battery Energy Storage, which includes the following.
Enacts GS 130A-309.250, which provides as follows.
Subsection (a) defines energy storage, battery energy storage system, and utility-scale battery energy storage system. Defines utility-scale battery energy storage system as a battery energy storage system with a rated nameplate capacity of at least 1,000 kilowatts (1 megawatt).
Subsection (b) requires a permit from the Department of Environmental Quality (DEQ) to install or operate a utility-scale battery energy storage system in the state. Requires DEQ to hold at least one public meeting on a permit application in the county the storage system is proposed to be located in. Details the required information an owner of a proposed system must submit to the Environmental Management Commission.
Subsection (c) requires any owner of a utility-scale battery energy storage system in the state to develop, maintain, and submit to DEQ an emergency response and evacuation plan covering the premises of the system. Requires the owner to coordinate with local emergency management officials to develop the plan. Includes requirements for the emergency response and evacuation plan.
Subsection (d) requires the owner of a utility-scale battery energy storage system to be responsible for proper decommissioning of the system upon cessation of operations and restoration of the property in compliance with GS 130A-309.250(d)(3), within one year of operation cessation. That subdivision requires the owner to establish and maintain financial assurance in an amount acceptable to DEQ that will ensure sufficient funds available for decommissioning and restoration, even if the owner becomes insolvent or ceases to reside in, be incorporated, do business, or maintain assets in the state. Provides a list of ways an owner can establish sufficient availability of funds. Requires financial assurance to continue through the entirety of the system being decommissioned and property being restored. Provides that documentation of financial assurance must be submitted to DEQ at the time a permit application is submitted. Requires notice to DEQ within 30 days of operation cessation and details notice requirements. Provides minimum requirements for the owner’s decommissioning of a system. Requires the owner to submit a decommissioning plan to DEQ for approval and requires it to be prepared, signed, and sealed by a professional engineer licensed in the state and includes required information for the plan.
Subsection (h) requires DEQ to collect fees from any owner of a utility-scale battery energy storage system that are applied to DEQ’s cost of administering the program.
Subsection (i) requires information regarding the implementation of the requirements of this statute to be included in DEQ’s annual report.
Subsection (j) requires DEQ to adopt rules establishing criteria for all of the following: (1) siting requirements for utility-scale battery energy storage systems to reasonably ensure that any proposed system is sited at sufficient distance from other systems to mitigate fire risks and that if a fire at the system occurs it will not block the only access point to a residential area; (2) set the amount of financial assurance required under subsection (d) and sets out minimum considerations for these rules and mandates that they require periodic updates to be provided by owners with respect to financial assurance maintained; (3) requirements for decommissioning plans; (4) permit fees to be assessed; and (5) any other matter DEQ deems necessary.
Enacts GS 130A-309.251 creating the Utility Scale Battery Energy Management Fund, which is a special fund within DEQ consisting of revenue credited to the Fund from proceeds of the fee imposed on owners of these systems under GS 130A-309.250. Mandates that moneys in the fund be used by DEQ to implement provisions of Subpart 2 concerning decommissioning of utility-scale battery energy storage facilities.
Enacts GS 130A-309.252 permitting enforcement as provided by Part 2 of Article 1 in Chapter 130A and requiring any appeals of rule enforcement, administrative penalties, or other action taken by DEQ under this subpart to be governed by appeals provisions in Part 2 of Article 1 as well.
Act applies to utility-scale battery energy storage systems for which construction is commenced on or after the date the act becomes law.
Bill Summaries: S728 (2025-2026 Session)
Tracking:
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Bill S 728 (2025-2026)Summary date: Apr 2 2025 - View summary