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Box 4 -2. North Carolina Session Law 2007 -397 SESSION LAW 2007 -397 SENATE BILL 3 AN ACTTO: 1. PROMOTE THE DEVELOPMENT OF RENEW- ABLE ENERGY AND ENERGY EFFICIENCY IN THE STATE THROUGH IMPLEMENTATION OF A RENEWABLE ENERGY AND ENERGY EFFICIENCY PORTFOLIO STANDARD (REPS), 2. ALLOW RECOVERY OF CERTAIN NONFUEL UTILITY COSTSTHROUGH THE FUEL CHARGE ADJUSTMENT PROCEDURE, 3. PROVIDE FOR ONGOING REVIEW OF CONSTRUCTION COSTS AND FOR RECOVERY OF COSTS IN RATES IN A GENERAL RATE CASE, 4. ADJUSTTHE PUBLIC UTILITY AND ELECTRIC MEMBERSHIP CORPORATION REGULATORY FEES, 5. PROVIDE FOR THE PHASEOUT OF THE TAX ON THE SALE OF ENERGY TO NORTH CAROLINA FARMERS AND MANUFACTURERS, AND 6. ALLOW ATAX CREDITTO CONTRIBUTORS TO 501(C)(3) ORGANIZATIONS FOR RENEWABLE ENERGY PROPERTY. encourage the use of solar energy, swine and poultry wastes, as well as implementation of energy efficiency programs (S.L. 2007 -397). Numerous federal programs also support the devel- opment and use of alternative energy in North Carolina. For example, the USDA "Commod- ity Corporations Credits for Production of Ethanol and Biodiesel" encourages bioenergy investments by providing financial support for purchasing agricul- tural commodities to increase ethanol and biodies- el production (Box 4 -3). Production tax credits provided through the "Renewable Energy Produc- tion Incentive" for wind, solar, and other alternative energy sources offer significant incentives for public power and other tax- exempt entities to produce energy from alternative sources (Energy Policy Act 2005, Pub.L. 109 -58). More recently, the Ameri- can Recovery and Reinvestment Act of 2009 (ARRA Pub.L. 111 -5) provides significant provisions that benefit renewable energy development, including a Treasury Department grant program for renewable energy developers, a long -term extension of the wind energy production tax credit, an Energy Department loan guarantee program for developers and manufac- turers, an expansion of Energy Department research, development and deployment funding, and a tax credit for advanced energy manufacturers. Appro- priations for energy totaled over $61 billion dollars, and included numerous provisions for increasing energy efficiency for state and local governments and improvements in renewable energy technology. These incentives, coupled with increasing public support for developing alternative energy, have provided the demand needed to intensify wind, biofuel, and solar prospects in North Carolina. Box 4 -3. Biodiesel and ethanol credits Commodity Corporation Credits for production of ethanol and biodiesel The U.S. Department of Agriculture established the Commodity Credit Corporation (CCC) Bioenergy Program in Fiscal Year 2001. Under the program, the CCC makes payments to eligible bioenergy producers to encourage increased purchases of agricultural commodi- ties for the purpose of expanding production of bioenergy (ethanol and biodiesel) and to encourage the construction of new produc- tion capacity. The 2002 Farm Bill continued the program through Fiscal Year 2006, providing $150 million annually. Payments are based on the increase in bioenergy production compared to the previous year's production.