N.C. Senator Ellie Kinnaird's Newsletter

March 6, 2007 Newsletter

Greetings from Raleigh,

Ellie Kinnaird

I am pleased that North Carolina is becoming a leader in the global warming issue. A Legislative commission on global climate change studied the matter between sessions with stakeholders and interested parties joining the discussion with House and Senate members. The Commission presented nearly twenty options in their Report to address how to cut energy use and to develop renewable sources. Starting with new building codes reflecting energy efficiency and considering a consumer fee to require the development of alternative energy, the Commission came up with proposals for the legislature. While the environmental community praised the results, critics in industry felt that too much too soon would result in increases in costs. However, taken in a global view, health care costs would be lowered significantly and demand for fuel and energy would decrease to offset the increases. (Then there is the avoided costs of future wars over energy, currently in the billions.) Our state government can lead by requiring energy efficiency in all buildings and converting to hybrid or alternate fuel state motor fleet vehicles. The Energy Efficiency Act was introduced last year but only a few measures passed, but it is ready again this session with a good chance because of the Study Commission’s recommendations.

Last week, the Utilities Commission allowed Duke Power to build only one coal-fired power plant of the two they had requested at Cliffside. The cost for two plants was $ 4 billion. Those of us who opposed the plants, suggested that they build only one and instead spend $1 billion on weatherizing every building in North Carolina. Another billion could be used by Duke to develop their own alternative energy industry. Will Duke take us up now that they can only build one plant? I encourage you to write to the CEO who says he is committed to reducing CO2 to invest in alternative energy. It would create jobs and a cleaner environment.

In other news, the Governor presented his budget to the legislature. It is a good budget that strongly supports education and calls for the elimination of taxes for those at the bottom of the economic scale. The legislature will probably take a different approach to state employee and teacher raises, but I am glad to see decent increases for community colleges, one of the most effective economic and job development tools in the education system. Affecting the budget also are three competing bond proposals this year, each for $1 billion, that could impact our debt rating. The first is for school construction, the second for water and sewer to alleviate areas with old and environmentally unsound systems, and the third for Land for Tomorrow to buy open land. The Governor’s budget is being studied by joint House and Senate Appropriation Committees in information sessions for the next weeks. Then the House will craft their version of the budget and send it to the Senate. The Senate will review the House budget and go to work on its own plan. The differences between the House and Senate versions are hammered out in a Conference Committee and sent to the Governor for his signature. (We hope.)

On that note, I am happy to report that our state is ranked fourth in the nation for fiscal responsibility, partly due to the strong quality of our pension fund and our balanced budget every year.

Paid for by Ellie Kinnaird for Senate • PO Box 668, Carrboro, NC 27510 • 919-929-1607 •