SC Energy Security Act (H.5118) passes Senate Judiciary Committee

Last week’s Senate Judiciary Committee hearing on the SC Energy Security Act (H.5118) was a strange but telling example of what can happen when legislation is rushed. The hearing revealed that most committee members didn’t have time to read the bill or a subcommittee amendment. What followed was a lengthy debate over concerns about the process.

Nevertheless, the bill passed the full Committee and is headed to the Senate floor. The amendment does not substantially change the bill (see details below), but it was offered with full knowledge that more work is needed to reach a consensus on a number of items. We look forward to working with Senators to find that common ground.

Notably, the amendment adopted by Senate Judiciary:

• adds that an appeal for a permit or agency decision (by individuals whose private property rights are harmed by an energy project) must first produce a record at the Administrative Law Court before heading to the SC Supreme Court.

• adds that a report that addresses updates to utility transmission plans must be included in utility 15-year Integrated Resource Plans (IRPs). The report must describe how it evaluated a range of transmission solutions, alternative technologies, and transmission investments. The plan must also discuss transmission considerations for facilities included in approved IRPs for which specific sites have been specified. Importantly, it must provide information so that stakeholders can pursue participation in local transmission planning collaboratives.

• adds a new section that requires any energy construction project over $500 million will be monitored by an independent analyst at the Office of Regulatory Staff, who will provide reports to lawmakers and the Public Service Commission.

On balance, we would like to see changes to H.5118 that add ratepayer protections for the Canadys Plant and other energy infrastructure prescribed by the bill; level the playing field for solar; improve public notice for property owners facing eminent domain as a result of the projects facilitated by the bill; and the removal of the “anchor tenant” provision that would result in the state taking on unreasonable liability to enter into contracts to secure natural gas pipeline capacity.

Senate Finance passes budget

The Senate Finance Committee passed its version of the state budget last week, working off of the version that came out of the House in March. We will do a deeper dive into the budget in the coming weeks.

Here are a few highlights from the Senate Finance Committee’s budget that are different from the House budget:

• $19.5 Million for Conservation Bank grants, including:
• $5 million increase in recurring funding, and
• $3 million in funds for the new Working Agriculture Lands Fund (established with the passage of H.3951)

• $10 Million to DNR for habitat protection and land conservation

• $4 Million to the S.C. Office of Resilience Disaster Relief & Reserve Fund

• A proviso establishing a seven-member legislative committee to study surface water and provide a report by March 1, 2025.

• A proviso establishing a PFAS pilot program to implement emerging technologies removing PFAS compounds from industrial wastewater (critically important after the EPA’s recent announcement setting PFAS limits for our drinking water).