Senate Bill 367 Summary

• Requires the North Carolina Utilities Commission to establish inverted tiered electricity rates for residential, commercial, public, and industrial customers to encourage energy conservation, with higher rates for greater usage and separate rate structures for each customer category.

• Mandates that residential tiered rates be designed to achieve a 40-60% statewide reduction in electricity consumption from 2010 levels within 10 years while protecting low-income families and rental units from negative economic impact.

• Creates the Energy Efficiency Public Benefit Loan Fund to provide loans and grants to customers for energy efficiency and renewable energy projects, with loan payments integrated into utility bills and limited to projects that reduce overall utility costs including the loan payment.

• Imposes a 5% tax on sales of Energy Star non-qualifying household products, with proceeds funding the Energy Efficiency Public Benefit Loan Fund and the Department of Revenue retaining up to $425,000 annually for administrative costs.

• Becomes effective January 1, 2012.