Agenda - 08-30-2007-4 - Laserfiche WebLink

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The North Carolina League of Municipalities Page 14 of 16 intention to phase out the annual $172 million transfer to the General Fund from the Highway Trust Fund. The Highway Trust Fund construction budget (loops and infra-state system) was lower than the previous years due to decreased revenue estimates for the Highway Trust Fund. There is considerable "buzz" about the potential for a Special Session of the General Assembly for transportation issues. Whether a special session is called (either by the Governor or the required 2/3 majority of legislators), or a "special commission" is appointed, there is near universal agreement that transportation needs were not adequately addressed in this last session. The challenge now will be to ensure municipal transportation needs are well-defined and a central part of whatever public dialogue or deliberations do take place. Private Roads HB 976 - Przblic Vel:icrrlar Areas Defzrzed adds gated community roads to the definition of public vehicular areas for purposes of North Carolina law and clarifies that emergency service vehicles are to be granted immediate access to such roads. Street Construction/Maintenance Responsibility-A major departure from the past appears in SB 1513 - County Ti•mzsportatiou Financing and Mru:icipal Powell Bill, which allows counties to participate in financing, acquire land, use eminent domain and make improvements to the state highway system (not municipal systems). Heretofore, counties did not have general authority to participate in transportation programs in North Carolina. The legislation also allows municipalities, if they choose to do so, to reprogram municipal Powell Bill funds to complete State TIP projects. HB 1576 - Coordinated Traffic Signals/Reduce Energy Use permits municipalities or MPOs to develop traffic control plans that coordinate traffic lights on state roads that become part of a municipal street system. This bill passed the House and is eligible in the short session. SB 373 -Street Cor:strrzetiorr/Developer Responsibility passed the Senate as a local bill that applies only to Onslow County and the municipalities therein, but it is likely to be made statewide if it advances in the short session. As written the bill would limit the ability of municipalities to plan for and seek appropriate developer participation in the costs of transportation improvements associated with new developments. ADOT-backed bill to require municipalities to take responsibility for more streets from the state, HB 1462 - Mrrrzicipal Street Provisior:s, did not come up in committee this session and did not advance. Study-HB 1005 -Various Ti•mzsportation Changes/Study, passed on the last day of the session, added transportation to the responsibilities of the state's Debt Affordability Advisory Committee and required DOT to present a study to the Joint Legislative Transportation Committee by October 1, 2007 that recommends any legislation for improving transportation, including alternative funding. It also authorized the State Budget Office to spend $1 million to prepare a "statewide logistics plan" for commerce, transportation, and long teen economic growth and to report its findings to the Joint Legislative Transportation Committee by April 1, 2008. Utilities Electric Service Territories-Territorial disputes between electric cities and electric membership corporations will be resolved by the NC Utilities Commission under HB 1395 -Electric Srzppliers/Electricities Assig~zzz:ezzt (SL 2007-419). To the extent that the parties have been unable to reach agreement by May 31, 2007, the Commission has jurisdiction to resolve all issues related to the negotiations and either party may petition for the exercise of that jurisdiction. The Commission is to consider public convenience and necessity in reaching its decision but may not consider rate differentials between the city and the electric membership corporation. Electricities successfully fended off various unfavorable provisions and the League supported their position. Liability-Legislation that passed the Senate would help to clarify a water utility's liability for water characteristics that do not violate drinking water standards. SB I259 - No Liability/Water Meets Water Stazzdards specifies that the water provider is not deemed to be an insurer of the quality of the water so long as the water meets or exceeds the standards in the state drining water statutes. The provider of the water is not deemed to be giving a warranty under the Uniform Commercial Code. The bill remains eligible for further consideration in 2008. Renewable Energy-Legislation created a renewable energy and energy efficiency portfolio standard for electric power suppliers, including municipalities. SB 3 - Pro»:ote Renewable ErzergyBaseload Cer:eratiorr (SL 2007-397) requires electric cities and electric membership corporations by 2012 to supply at least 3% of their 2011 retail electric power sales through new renewable energy facilities or through savings by implementation of energy efficiency measures. The percentage increases to 6% of 2014 sales by 2015 and to 10% of 2017 sales for the year 2018 and thereafter. The electric public utilities must meet a similar schedule but they have an additional requirement to supply at least 12.5% of 2020 sales by the year 2021 and thereafter. The bill also includes provisions that allow public utilities to recover costs for new nuclear facilities until they are producing energy. http://www.nchn.org/LegalBulletin/2007/08-24-07.htm 8/28/2007