Senate Bill 730
The Ratepayer Protection Act and what it means for Vance County.
Citizen-researched. Every claim sourced. Updated June 2026.
Current Status
- Passed the NC House 69-44 on June 3, 2026.
- Now in the Senate Rules and Operations Committee for concurrence.
- Governor Stein has not signed it.
- Filed by Sen. Steve Jarvis (R-30) and Sen. Buck Newton (R-4). House version led by Rep. Dean Arp (R-Union).
The Provisions
What the Bill Does
These provisions apply to data centers with 100 MW or more of peak monthly demand.
Closed-Loop Cooling Mandatory
Evaporative and open-loop systems are banned. Annual third-party verification required. This directly protects local water supply from large-scale consumption.
15-Year Minimum Utility Contracts
Contracts must include minimum billing requirements, performance provisions, and default protections so costs do not shift to residential ratepayers if a data center scales back or leaves.
Grid Cost Responsibility
Data centers must pay for their own transmission upgrades, new substations, and generation capacity. Residential customers do not subsidize their infrastructure.
Foreign Ownership Ban
Entities tied to China, Russia, Iran, and North Korea cannot acquire, lease, or hold interests in data centers or data center land in North Carolina. Effective December 1, 2026.
Eminent Domain Ban
Cannot use eminent domain to acquire property for data center construction. Private land stays private.
Local Incentives Ban
Local governments cannot offer property tax abatements, PILOTs, grants, or subsidies to data centers above 100 MW. Exception: projects with existing local development approvals.
Environmental and Noise Review
A 500-foot noise study is required. Local governments may also require review of air quality, water, agricultural impact, thermal plumes, parks, and historic sites.
The Gaps
What the Bill Does Not Do
Gap 1: State Tax Exemptions Untouched
NC's data center sales tax exemption program (G.S. 105-164.13(55a)) remains fully intact under SB 730.
- 37 data centers currently qualify.
- Current cost: $45 to $57 million per year in foregone revenue.
- If all planned projects build out: up to $450 million per year.
- Construction-phase exemptions alone: $1.5 to $2.3 billion.
- Exempts electricity, servers, hardware, software, HVAC, and construction materials from the ~7% combined state and local sales tax.
- Qualification: $75M+ investment over 5 years, above-county-average wages, health insurance.
- No sunset date. NC is one of only 7 states where the exemption never expires.
- NC is a “dark” state with no centralized reporting of aggregate data center tax break costs.
Sources: EDPNC, NC Dept. of Commerce (April 2026), Good Jobs First, Stateline (April 2026)
Gap 2: The Coal Retirement Block (Section 10)
The NC Utilities Commission cannot authorize retirement of any baseload generating facility above 100 MW until a certificate has been issued for construction of at least 1,000 MW of new nuclear capacity.
- In practice: Duke Energy cannot retire its remaining coal plants until a nuclear permit is issued.
- Coal plants run 30% more expensive per MWh than clean energy alternatives.
- EDF analysis: forces ratepayers to underwrite approximately $128 million per year.
- Nuclear timeline: Georgia's AP1000 reactors were 7 years behind schedule and $20 billion over budget. South Carolina's AP1000 was never completed. Consumers there are still paying for it.
- This provision directly contradictsthe bill's “ratepayer protection” name.
Sources: EDF (June 2026), CleanAIRE NC, Canary Media, WFAE
Comparison
The Three Bills Side by Side
| Feature | SB 730 (R) | HB 1063 (D) | HB 1213 (Bipartisan) |
|---|---|---|---|
| Sponsors | Sen. Jarvis, Sen. Newton; House: Rep. Arp | Reps. Prather, Johnson-Hostler, Longest, Helfrich + 14 Dems | Reps. Loftis (R), Ward (R), Harrison (D) |
| MW Threshold | 100 MW | 40 MW | None (all qualifying) |
| Status | Passed House 69-44, in Senate Rules | Referred to House Rules 4/28, stalled | Introduced 4/30, no committee vote |
| Closed-loop cooling | Yes | Yes | No |
| 15-year contracts | Yes | Cost-based rates required | No |
| Grid cost responsibility | Yes | Yes | No |
| Environmental review | Yes, 500 ft | Yes, DEQ disclosure | No |
| Foreign ownership ban | Yes | No | No |
| Eminent domain ban | Yes | No | No |
| On-site clean energy | No | Yes, 25% zero-carbon | No |
| Water use reporting | Implied | Yes, if over 1B liters/yr | No |
| State sales tax exemption | Untouched | Repealed | Repealed |
| Local incentives ban | Yes, 100 MW+ | Yes, 40 MW+ | Not addressed |
| Coal retirement block | Yes | No | No |
| CEPS expansion | Yes | No | No |
HB 1213 has strong bipartisan support. House Speaker Tim Moore and Governor Stein have both called for rolling back the electricity exemption. The substance may be folded into the state budget rather than passing standalone. Governor Stein separately proposed phasing out all NC data center tax incentives by 2033.
Fact Check
What Is Actually Driving Your Electric Bill
Data centers are not currently driving rate increases. They represent less than 1%of Duke Energy's peak demand today. The threat is real, but it is forward-looking. Here is what is actually raising your bill right now.
1. Grid Modernization and Capital Investment
Duke's 10-year capital plan: $145 billion company-wide, $75 billion for grid modernization. In NC, $7.7 billion in grid upgrades for the DEC territory alone. This is the primary justification in every rate case filing. The NC Utilities Commission approved a 3-year stepped increase starting January 2024. Cumulative: approximately 14% increase, from $130 to $149 per month for a typical 1,000 kWh customer. The pending 2025 rate case originally asked for 18% over 2 years. Duke lowered it to approximately 11.6% on June 23, 2026, after AG Jeff Jackson pushed back.
Source: Duke Energy rate filings, NCUC, WUNC (June 23, 2026)
2. Coal Ash Cleanup
14 NC sites. Total estimated cost: $8 to $10 billion. After a settlement with the AG's office, ratepayers bear approximately 50% of cleanup costs. Shareholders absorb the other half. This is baked into current rates and will continue for years.
Source: Utility Dive, NCUC filings
3. Fuel Costs (Coal and Gas Pass-Through)
Passed directly to customers via fuel adjustment. No NCUC approval needed. The January 2026 winter storm alone generated $800 million in fuel and purchased power costs Duke is seeking to recover. Coal fuel costs increased approximately 20% from 2018 to 2024.
Source: Duke Energy filings, WFAE, Carolina Journal
Duke projects data centers will reach approximately 10% of total electricity sales by 2030, with approximately 6 GW in the pipeline. Duke's June 23, 2026, rate case revision removed $173.2 million in large-load customer infrastructure upgrades from the residential rate request, acknowledging these costs should not fall on residential ratepayers. The question is not whether data centers will affect your bill. The question is who pays for the infrastructure they require. SB 730 tries to answer that. Section 10 undermines it.
The Gap
Why 100 MW Is Too High
SB 730's 100 MW threshold creates a loophole. A company can split a 300 MW campus into three 99 MW buildings on adjacent parcels, and none of them trigger a single provision in the bill. No cooling mandate, no contracts, no environmental review.
| Jurisdiction | Threshold |
|---|---|
| FERC RM26-4 (proposed) | 20 MW |
| Virginia GS-5 | 25 MW |
| Alabama Power | 30 MW |
| HB 1063 (NC, Dem) | 40 MW |
| Tennessee HB 1847 (signed May 2026) | 50 MW |
| Pennsylvania PUC | 50 MW / 100 MW aggregate |
| Texas SB 6 | 75 MW |
| NC SB 730 | 100 MW |
86% of utility tariffstracked by the SEPA DELTa database set their threshold below 100 MW. North Carolina's threshold is an outlier.
Source: SEPA DELTa Database, LBNL (January 2025)
Proven Models
How Other States Closed This Loophole
Virginia DEQ (January 2025)
Three-factor aggregation test. Facilities under common control, in the same industrial category, and on contiguous or adjacent property must be treated as a single source. Distance benchmarks: less than 0.125 miles = presumed single source. 0.125 to 0.25 miles = case-by-case. Greater than 0.25 miles = presumed separate.
Source: Hunton Andrews Kurth
Virginia GS-5 Tariff (Effective January 1, 2027)
Explicit “campus aggregation” clause. Geographically proximate facilities are treated as a single load for rate class purposes.
Source: Virginia SCC
Pennsylvania PUC Model Tariff (2026)
Dual threshold. 50 MW individually OR 100 MW in aggregate. One sentence closes the loophole.
Source: K&L Gates
Illinois EPA
5-year temporal lookback. Emissions from the current project must be aggregated with all projects in the current year plus the previous 4 calendar years. Plus a “technical and economic dependency” test. If Phase 2's site plan, financing, and infrastructure all assume Phase 1 exists, it is aggregated with Phase 1.
Source: Trinity Consultants
A Path Forward
What Graduated Regulation Could Look Like
Instead of a single binary threshold where everything under 100 MW is unregulated and everything over is fully regulated, a graduated framework scales requirements with consumption. No single threshold to game. No cliff to exploit.
Universal Requirements (All Data Centers)
| Requirement | Rationale |
|---|---|
| Closed-loop cooling mandatory | Water supply protection. A 30 MW facility drains the same aquifer per gallon as a 300 MW facility. |
| Noise study and limits (50 dBA day, 45 dBA night at property line) | Data center HVAC, generators, and cooling run 24/7/365. This is permanent, not construction noise. |
| Annual third-party verification (cooling and noise) | Self-reporting invites underreporting. |
| Foreign ownership ban | National security does not scale with megawatts. |
Graduated Tiers
| Tier | Requirements |
|---|---|
| Tier 1 (20 to 40 MW) | Water use disclosure, grid upgrade cost transparency, basic environmental notice to county, annual NCUC reporting. |
| Tier 2 (40 to 60 MW) | Plus 5-year minimum utility contract, demand flexibility participation, DEQ environmental disclosure. |
| Tier 3 (60 to 100 MW) | Plus full environmental review (air, water, agriculture, historic sites), 10-year contract, 75% minimum billing, collateral, 25% on-site clean energy. |
| Tier 4 (100+ MW) | Plus 15-year contract, 85% minimum billing, full infrastructure cost responsibility, eminent domain ban. |
This framework draws on proven mechanisms from Virginia's GS-5 tariff, Ireland's CRU Connection Policy (the closest existing graduated model), the EU Energy Efficiency Directive, Pennsylvania's aggregate threshold, and Tennessee's HB 1847. It is not theoretical. Every component exists in active law or regulation somewhere.
Anti-Fragmentation
Combined with Pennsylvania-style aggregation (individual OR aggregate threshold), Virginia-style distance tests, and Illinois-style temporal lookback, there is no profitable stopping point just below any tier boundary. Fragmentation does not work when every facility faces universal baseline requirements and aggregate demand triggers higher tiers.
Take Action
What You Can Do
Contact Your Representatives
Tell them to amend Section 10 (the coal retirement block), lower the threshold, add aggregation language, and repeal the state tax exemption. Your voice matters.
Stay Informed
This bill is in the Senate Rules Committee. The next vote could come at any time. Follow the bill status at ncleg.gov.
Share This Page
Every fact on this page is sourced. Share it with your neighbors, your commissioners, your state representative.
Your Representatives
Who to Contact About SB 730
These are the state legislators who represent Vance County. Their contact information is public record. Call, email, or write. Be respectful and specific: ask them to amend SB 730.
NC Senate - District 11
Sen. Lisa S. Barnes
Franklin, Nash, Vance counties
919-715-3030
lisa.barnes@ncleg.govNC House - District 7
Rep. Matthew Winslow
Franklin, Vance (partial)
919-715-3032
matthew.winslow@ncleg.govU.S. House - District 1
Rep. Don Davis
Eastern NC incl. Vance, Warren, Halifax
202-225-3101 (DC) · 252-999-7600 (Rocky Mount)
dondavis.house.govVance County Board of Commissioners
122 Young Street, Suite B, Henderson, NC 27536 · 252-738-2001
| Name | District | Phone | |
|---|---|---|---|
| Carolyn Faines (Chair) | 1 | 252-433-8018 | cfaines@vancecounty.org |
| Valencia Louise Perry | 2 | 252-432-5577 | vperry@vancecounty.org |
| Charisse Fain (Vice-Chair) | 3 | 252-767-1563 | cfain@vancecounty.org |
| Dan Brummitt | 4 | 252-432-4774 | dbrummitt@vancecounty.org |
| Leo Kelly, Jr. | 5 | 252-767-7957 | lkellyjr@nc.rr.com |
| Yolanda J. Feimster | 6 | 252-431-7579 | yfeimster@aol.com |
| Thomas S. Hester, Jr. | 7 | 252-738-9771 | tshester@ncol.net |
When you call or email, be specific. Ask them to: remove the coal retirement block in Section 10, lower the 100 MW threshold, add campus aggregation language to prevent loopholes, and support HB 1213's state tax exemption repeal. Reference the bill by name: Senate Bill 730.
References
Sources
- NC General Assembly, SB 730 Bill Lookup
- NC General Assembly, SB 730 Bill Text
- NC Newsline, “House fast-tracks data center regulation bill,” June 2, 2026
- NC Newsline, “House advances bill to regulate data centers,” June 3, 2026
- CBS 17, “NC House passes data center regulation bill”
- Carolina Journal, “NC House passes Ratepayer Protection Act”
- CleanAIRE NC, “SB 730 fails ratepayers,” June 4, 2026
- EDF, “SB 730 forces NC to underwrite $128M/year for Duke's aging coal plants”
- NCEJN, “Under the pretense of protection, SB 730 shifts financial risks to North Carolinians”
- Center for Progressive Reform, “NC took a step sideways”
- WFAE, “NC House passes data center regulation amid coal concerns,” June 4, 2026
- Canary Media, “NC bill would prop up coal until new nuclear is approved”
- EDPNC, Data Centers Sales and Use Tax Exemptions
- Good Jobs First, “Data Center Tax Breaks Becoming Billion-Dollar Budget Sinkholes”
- Stateline, “Many states don't report losses from data center tax breaks,” April 2026
- WUNC, “Data centers in NC don't pay taxes on supplies or electricity,” April 22, 2026
- WUNC, “Gov. Stein proposes phasing out NC's tax incentives for data centers by 2033,” June 15, 2026
- WUNC, “NC legislative leaders support rolling back data center sales tax exemptions”
- Duke Energy, 2025 DEC and DEP Rate Case
- WUNC, “Duke Energy takes rare step of lowering rate request,” June 23, 2026
- SEPA DELTa Database
- LBNL, “Electricity Rate Designs for Large Loads,” January 2025
- Virginia DEQ Clarification 2025-02 (Hunton Andrews Kurth)
- Virginia SCC, GS-5 Data Center Initiatives Fact Sheet
- K&L Gates, “Pennsylvania PUC Model Interconnection Tariff,” May 2026
- Trinity Consultants, “Illinois Data Center Permitting”
- Ireland CRU Large Energy User Connection Policy (Philip Lee LLP analysis)
- EU Energy Efficiency Directive, Data Centre Reporting
- Tennessee HB 1847, signed May 2026
- FERC Docket RM26-4, Large Load Interconnection
- WRAL, “NC House passes bill to crack down on data centers”
- Data Center Knowledge, “NC tests who pays for AI power boom”
- Utility Dive, “Duke coal ash cleanup settlement”
- WFAE, “Duke Energy plans to raise rates,” April 28, 2026
This page is a citizen education project. It is not funded by any data center company, activist organization, or political campaign. Every claim is sourced. Share it. Print it. Form your own opinion, but form it with the facts in front of you.