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Offshore drilling bill heads to Senate floor
Wednesday, 04 May 2011 10:02

(RALEIGH) -- Senate lawmakers will soon vote on bill that would pave the way for drilling off North Carolina’s coast. The Senate Commerce Committee passed a measure that would direct Gov. Bev Perdue to develop a regional compact with the governors of South Carolina and Virginia.

The arrangement would allow states to come up with a strategy for exploring offshore energy options. Bill supporters said North Carolina would also need Congress to approve a royalty-sharing agreement. Sponsor Sen. Bob Rucho, R-Mecklenburg, estimated that offshore drilling could bring the state a half-billion dollars each year.

The committee substitute made several changes to the original bill. First, lawmakers changed the distribution formula to give the Department of Environment and Natural Resources a larger share of offshore royalties. The agency’s money could go toward things such as inlet management projects, channel navigation or water quality management. The committee reduced the royalties for community colleges in order to increase the DENR allocation.

The committee also added three members to the Energy Jobs Council, which would be chaired by the Secretary of Commerce. The latest additions would add individuals with expertise in wind energy, biofuels and environmental management.

Sen. Stan White, D-Dare, said he was pleased with the changes. However, he said the state needs to set up some sort of trust fund to protect the tourism and fishing industries from a serious spill. Rucho said White’s concerns could be addressed with money set aside for DENR.

Environmental advocates said the bill places too much emphasis on oil and natural gas. Supporters downplayed those concerns, arguing that the measure is also aimed at developing wind energy projects.

 
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