Archives: Daren Bakst

The Minneapolis I-35 bridge disaster and the poor condition of North Carolina’s bridges should be a wake-up call for policymakers to set sensible priorities for transportation policy. N.C. has 17,782 bridges, of which 5,082 (29 percent) are deemed deficient by the federal government. N.C. ranks 32nd in the nation in percentage of deficient bridges — 10th worst in total number of deficient bridges.

The legislature passed a law, SB 3, which would require North Carolinians to pay for electricity used by out-of-state residents. SB 3, which is the new, hastily drafted energy bill, was touted as requiring utilities to provide at least 7.5% of their electricity from renewable resources. However, North Carolinians likely will not be the recipient of a significant amount of this electricity.

The Senate has passed a major electricity bill that includes something called a renewable energy and energy efficiency portfolio standard (REPS). The REPS consists of two separate requirements: A renewable portfolio standard that requires utilities to provide customers 7.5 percent of their electricity from renewable energy sources, such as wind and solar, and energy efficiency measures that require a 5 percent reduction in energy use.

Municipalities legally can acquire unincorporated areas next to their borders without the consent of the residents living in those areas. This process, called forced annexation, was supposed to promote sound urban development in areas that need municipal services. Instead, it has created a system in which cities ignore the areas most in need of annexation. Even worse, forced annexation is undemocratic and has contributed to the exclusion of minorities from municipalities. Forced annexation needs to be eliminated immediately, and significant annexation reform needs to be adopted.

Eminent domain refers to the government’s power to seize private property without the consent of owners. In 2005, the United States Supreme Court, in the now infamous case of Kelo v. City of New London, held that the government could seize private property solely for economic development reasons. This policy report explains why North Carolina Needs a Constitutional Amendment to prevent such takings.

North Carolina’s air quality is worth celebrating. Despite scare tactics from environmental advocates, N.C.’s air is cleaner than ever and only getting better. The EPA monitors six common air pollutants. It is clear that across the board, N.C.’s air is doing extremely well in relation to all of these pollutants.

The Public Staff is an independent government agency whose role is to represent the interests of electricity consumers before the Utilities Commission. However, as recent examples demonstrate, the Public Staff is acting more like an environmental advocate than a consumer advocate. The Public Staff has recommended a major new tax on consumers, possibly as large as $181 million annually. The Public Staff also has expressed support for wind power plants even though it would mean higher costs and an unreliable means of electricity for consumers. The agency needs major reforms so consumer interests are truly protected, including term limits on the executive director of the Public Staff.

The North Carolina Public Utilities Commission is considering charging an extra fee, separate from existing rates, to electric utility customers. This extra charge will help support what is called a “public benefits fund.” The fund would support programs that have nothing to do with the supply of electricity. Consumers would be required to pay the “fee” if they want to receive electricity, and the more electricity they use, the higher their fee will become. To environmental extremists and other proponents of this extra fee, the use of electricity, which allows us to warm our homes and function in modern society, is a “sin” and needs to be reduced.

North Carolina utility consumers may face higher rates for no justifiable reason if extreme mercury regulations are adopted. The United States Environmental Protection Agency (EPA) is regulating, for the first time ever, mercury emissions from power plants. The purpose is to minimize potentially harmful mercury levels in fish consumed by humans. However, there has never been any documented case in the United States of mercury poisoning from fish. Data linking fish consumption to any type of adverse effect in humans is very weak. In addition, the EPA acknowledges that it does not know the impact mercury emissions from power plants have on the mercury levels in fish. Despite the lack of benefits and the additional costs, North Carolina’s Environmental Management Commission (EMC) is considering whether to adopt regulations which exceed the new and stringent federal standards.

The Triangle Transit Authority (TTA) has been seizing private property for a rail system even though the necessary federal funding has never been secured. In late 2005, as it became clear that the rail was likely a dead project, the TTA still condemned land even though it meant forcing people out of their homes and businesses. TTA’s eminent domain abuse, however, may reach a new level. Through a possible public/private partnership, TTA may start using the already seized private property, and acquire additional private property, for economic development reasons. Unfortunately, current N.C. law may allow for these Kelo-type takings.