Governor Stein vetoes three bills, including controversial Duke Energy emissions proposal

Yahoo

2 days ago

Governor Josh Stein applies his veto stamp to a bill on Wednesday, July 2, 2025. (Screenshot from Governor's Office X video.)
Governor Josh Stein vetoed three bills Wednesday afternoon, including an expansion of the state auditor's powers and a controversial reduction in emissions standards sought by Duke Energy.
In a slew of bill actions, Stein issued three vetoes and signed seven other bills passed by the General Assembly. The decisions bring Stein's veto total for the term to seven, after he previously rejected bills on the permitless carry of concealed firearms, immigration enforcement, and environmental policy changes last month. That's roughly on pace with the previous legislative session — by this point in 2023, Governor Roy Cooper had vetoed eight bills, though all were ultimately overturned.
So far, none of Stein's vetoes have been overridden, as the legislature has a very narrow path to do so. Though Republicans hold a veto-proof, 30-20 supermajority in the state Senate, they are one seat short of the 72 votes needed in the 120-seat House, meaning any veto override would require either support from a House Democrat or absences.
The highest-profile veto Wednesday was of Senate Bill 266, a proposal that would cut greenhouse gas emissions requirements for Duke Energy while allowing the utility monopoly to charge higher rates to fund the construction of new electric facilities.
SB 266 would eliminate a 2030 goal to reduce carbon emissions by 70% for electric companies that service more than 150,000 customers, leaving intact only a 2050 goal for carbon neutrality. It would also allow for large electric companies to raise rates to cover future generating facilities, so long as estimates show the new facilities would yield long-term savings for customers.
This bill is the most likely of the three to see a successful veto override, as it received votes from 11 House Democrats last month, meaning it already has the support of a supermajority of House representatives.
Stein took aim at the bill for its potential to raise utility costs on consumers in the short-term.
'This summer's record heat and soaring utility bills has shown that we need to focus on lowering electricity costs for working families — not raising them. And as our state continues to grow, we need to diversify our energy portfolio so that we are not overly reliant on natural gas and its volatile fuel markets. Recent independent analysis of Senate Bill 266 shows that this bill could cost North Carolina ratepayers up to $23 billion through 2050 due to higher fuel costs. This bill not only makes everyone's utility bills more expensive, but it also shifts the cost of electricity from large industrial users onto the backs of regular people — families will pay more so that industry pays less. Additionally, this bill walks back our state's commitment to reduce carbon emissions, sending the wrong signal to businesses that want to be a part of our clean energy economy. My job is to do everything in my power to lower costs and grow the economy. This bill fails that test.'
– Governor Josh Stein
In a statement issued following the veto, a Dan Crawford of the North Carolina League of Conservation Voters praised Stein for rejecting what he called a false choice between low costs and clean power, a trade-off he said, that represented 'a scam pushed by wealthy utilities to protect their profits at the expense of our communities.'
'Governor Stein continues to stand up for hardworking North Carolinians against Duke Energy's greed,' said Crawford, the NCLCV's director of government relations. 'Senate Bill 266 would have raised residential energy bills, put ratepayers on the hook for Duke's expansion, and gutted a key state climate goal — cutting carbon emissions 70% by 2030. An independent study found removing this target goal would cost ratepayers an additional $23 billion by 2050.'
A spokesperson for Duke Energy did not respond to a request for comment.
Republican legislative leaders in the House and Senate bashed Stein's veto decision, with Senate President Pro Tem Phil Berger labeling him a 'Green New Deal Radical,' arguing that the bill would in fact save North Carolinians $15 billion in electric costs. House Speaker Destin Hall said in a statement that he expects a veto override to succeed.
'I'm disappointed in the governor's veto of the 'Power Bill Reduction Act,' which would have delivered cheap, reliable energy to North Carolina, cut the red tape that is choking innovation and long-term energy solutions, and saved consumers over $12 billion dollars,' Hall said. 'Considering the strong bipartisan support in both chambers, we anticipate overriding this veto.'
An analysis posted June 30th by researchers at NC State University said that the bill would lead to a $23 billion increase in fuel costs through 2050.
A bill whose fate would appear cloudier is House Bill 549, which would grant broad investigative powers into any entity receiving state or federal funding to the State Auditor's Office, while also exempting the office from several state requirements.
HB 549 comes as Auditor Dave Boliek has received broad new grants of authority from the state legislature, including oversight of the State Board of Elections, a shift that flipped the board from control by a Democratic majority to a Republican one. Stein cited the state's commercial interests as a chief reason for vetoing the bill.
'House Bill 549 would grant the Auditor sweeping access to the data and records of any private corporation that accepts any amount of state funding. Giving the Auditor this intrusive power may undermine our state's efforts to recruit businesses to North Carolina. Additionally, the bill would remove the Office of State Auditor from the state's cybersecurity efforts led by the Department of Information Technology, putting North Carolinians' personal identifying information at heightened risk of a breach.'
– Governor Josh Stein
Though state legislative leaders did not address the bill's veto, Boliek said in a statement that Stein's veto undermines the 'autonomy and independence' of the state auditor's office, citing a need for greater latitude to perform its watchdog function.
'Governor Stein's veto undercuts the important principles of accountability and transparency that taxpayers expect from their government,' Boliek said. 'Further, as the governor is aware, our office already has the authority to hold those who receive tax dollars accountable. I have confidence the legislature will stand up for these principles and override the governor's veto.'
If the legislature attempts to override Stein's veto of HB 549, it will likely face a narrow path to success. Only a single House Democrat, Rep. Shelly Willingham of Edgecombe County, voted to concur with the Senate's passage of the bill in June, after having previously voted against it in May. To overcome the veto, Republicans will need to retain his support while ensuring full attendance from their own caucus.
In his third veto of the day, Stein rejected Senate Bill 254, an overhaul of charter school laws in the state that would delegate greater authority to the state's Charter Schools Review Board, including allowing it to reject State Board of Education rules that would apply to charter schools.
Stein wrote in his veto statement that giving the CSRB the authority to overrule the State Board of Education would violate the North Carolina state constitution.
'Senate Bill 254 is an unconstitutional infringement on the authority of the State Board of Education and the Superintendent of Public Instruction. Additionally, it weakens accountability of charter schools when every North Carolina student deserves excellent public schools, whether traditional or charter.'
– Governor Josh Stein
Objecting to the veto, the North Carolina Coalition for Charter Schools issued a statement arguing that charter schools in the state require greater independence and flexibility to operate than is currently provided.
'The success of public charter schools hinges on their flexibility and autonomy,' said Dave Machado, the coalition's executive director. 'The legislature rightly placed at the front line of charter schools regulation and oversight a body of public charter school experts insulated from political maneuverings that have hamstrung the charter school sector in other states.'
Machado also disputed that the state constitution prevents this change, noting that the clause empowering the State Board of Education states that its authority is 'subject to laws enacted by the General Assembly.'
As with the energy bill, supporters of SB 254 appear at first blush to have sufficient numbers to override the governor's veto. Eight Democrats joined with Republicans to pass the bill in the House, more than enough to provide a supermajority vote.
Stein's busy week is likely to continue, as 30 bills passed by the General Assembly still await his signature, according to the legislature's website, including three controversial prohibitions on diversity, equity, and inclusion policies.