NC issues 401 Water Quality Certificate for Yadkin Project

The State of North Carolina issued a 401 water quality certificate the Yadkin Project on Friday, October 23. 

"We are pleased the State of North Carolina has issued a water quality certificate for the Yadkin Project and we are in the process of reviewing it," said Ray Barham, APGI Relicensing Manager for the Yadkin Project. "The certificate clears the way to a FERC license that will allow us to implement enhanced water quality technology and additional environmental and recreational benefits promised by the Relicensing Settlement Agreement. We have been good stewards of the watershed for nearly 100 years and remain committed to meeting North Carolina water quality standards."

Click here to read the State's press release.

Court upholds ruling that State agency unlawfully denied water quality certificate for Alcoa dams

Court upholds ruling that State agency unlawfully denied water quality certificate for Alcoa dams

Wake County Superior Court judge upholds ruling by administrative law judge, orders agency to issue decision on Alcoa application within 30 days

Alcoa Power Generating Inc. (APGI) won a significant legal victory in Wake County Superior Court on Friday when a judge upheld a previous ruling that the N.C. Department of Environment and Natural Resources (DENR) wrongly denied a water quality certificate that is necessary to relicense the company’s dams along the Yadkin River.

Superior Court Judge Bryan Collins ruled that an administrative law judge was correct in finding that DENR exceeded its authority, acted erroneously and failed to act as required by law when it denied APGI’s application for a water quality certificate in August 2013. Judge Collins denied the state agency’s appeal and ordered DENR to reconsider APGI’s application and issue a decision within 30 days.

“We’re pleased the court has reaffirmed what we’ve known all along: the state had no legal reason to deny our application. We urge the state to follow the judge’s order and quickly issue a water quality certificate for the Yadkin Project,” said Ray Barham, APGI Relicensing Manager for the Yadkin Project.

Judge Collins notes that in the days leading up to DENR’s decision to deny APGI’s application, “DENR’s customary process of reasoned review collapsed under the pressure of 11th hour action by the Governor’s office and the (Department of Administration), agencies outside of DENR and having no direct responsibility for the protection of water quality or the environment.”

Before the Governor’s office inserted itself into the review process, Judge Collins says a final report recommended approving APGI’s application and issuing a water quality certificate for the Yadkin Project.

“DENR would have issued a merits based decision on the Application on August 2, 2013, likely issuing a 401 in APGI’s favor, but not for the secret intervention of the DOA and the Governor’s office into the process…” states Judge Collins ruling. “The undisputed facts recited in the Order demonstrate that DENR reversed course at the last minute, only after Executive Branch pressure and the 11th-hour filing of the Lawsuit.”

The NC Department of Administration filed a lawsuit against APGI on August 2, 2013, claiming ownership of the land under the Yadkin Project dams. The case is currently being considered in U.S. District Court by Judge Terrence Boyle.

The state’s failure to issue a water quality certificate has resulted in the unnecessary delay of water quality protections and improvements. APGI cannot move forward with its plans to invest up to $80 million on water quality improvements at the Yadkin Project until it receives a new federal license.

“We remain committed to meeting North Carolina water quality standards and have a proven solution to continue improving water quality at the Yadkin Project,” Barham said.

The issuance of a water quality certificate is a precondition to Federal Energy Regulatory Commission (FERC) issuing APGI’s new long-term license to continue generating clean, renewable energy at the Yadkin Project. FERC staff has previously recommended issuing a new license to APGI.

Judge overturns denial of Alcoa’s water quality certificate

A judge has ruled that the NC Division of Water Resources (DWR) exceeded its authority, acted erroneously and failed to act as required by law when it denied Alcoa Power Generating Inc. (APGI) a water quality certificate that is required to relicense its hydroelectric project along the Yadkin River. As a result, the denial has resulted in “additional and unnecessary delay” of water quality protections and improvements.   

Administrative Law Judge Selina Brooks granted APGI’s motion to overturn the denial of its application for a 401 water quality certificate for the Yadkin Hydroelectric Project in a May 29 order. The court ordered the state to review APGI’s application "as expeditiously as possible” and issue a decision within 30 days. Click here to read the ruling.  

“The judge concluded what we have known all along – the Division of Water Resources had no legitimate grounds to deny our water quality certificate. We urge the agency to follow its rules and act quickly to issue a water quality certificate for the Yadkin Project,” said Ray Barham, APGI Yadkin Relicensing Manager.

In the order, Judge Brooks stated that “there appears to be no factual dispute that [APGI] satisfied the substantive requirements for issuance of a water quality certification.” She ruled that the decision to deny APGI’s application was an arbitrary and capricious decision that resulted in “manifest unfairness” to APGI.

When APGI’s application for a water quality certificate was denied on August 2, 2013, it was not the result of “careful consideration” or “impartial decision-making.” In the order, Judge Brooks stated that DWR exceeded its authority by admittedly basing the denial on a dispute over ownership of the riverbed beneath the hydroelectric project rather than water quality issues.

The issuance of a water quality certificate is a precondition to Federal Energy Regulatory Commission (FERC) issuing APGI’s new long-term license to continue generating clean, renewable energy at the Yadkin Project. FERC staff has previously recommended issuing a new license to APGI.

“This was never an issue about water quality. We have a proven plan in place to improve water quality and ensure compliance with the state’s water quality standards,” Barham said. “We are prepared to invest up to $80 million in the Yadkin Project to continue enhancing water quality in the Yadkin River.”

APGI and the State of North Carolina are currently involved in a lawsuit in U.S. District Court over the ownership of the riverbed. A federal judge resolved a key issue in the lawsuit in May when he ruled that the relevant section of the Yadkin River not navigable – a determination that prevents the State of North Carolina from asserting special ownership rights to the riverbed.

The Positive Impact of Alcoa’s Water Quality Investments: Water Leaving Yadkin Project Hits Mark 100% of the Time

Water leaving the Yadkin Project meets state standards for water quality 100% of the time, according to a report on dissolved oxygen that was submitted to the NC Division of Water Resources in March.

Dissolved oxygen levels are a key indicator of water quality and are often used by state agencies as a benchmark. Alcoa Power Generating (APGI) has been closely monitoring dissolved oxygen levels at the Yadkin Project since 2007 and provides an annual report to the state. The Yadkin Project is not currently subjected to state standards for dissolved oxygen, but it will be once a new federal license is issued.

The report shows that turbine upgrades and other enhancements made several years ago have continued to improve water quality at the Yadkin Project.

“The investments we’ve made at Narrows Dam continue to enhance water quality,” said Ray Barham, APGI’s Yadkin Relicensing Manager. “We’ve spent more than $5 million in new technology at the Narrows Dam and it has been very effective at improving downstream water quality.”

Quality Improves As Water Flows Through the Yadkin Project
Water enters the Yadkin Project at High Rock Lake with relatively low concentrations of dissolved oxygen. After traveling 38 miles down the Yadkin River and passing through four dams operated by APGI, the water quality improves significantly before it is discharged at the Falls Dam.

In 2013, water discharged from High Rock Dam met the state standard for dissolved oxygen 78% of the time (based on daily average measurements). It met those same standards 100% when discharged from Narrows Dam and Falls Dam.

$80 Million in Additional Investments Planned by Alcoa
APGI has committed to investing up to $80 million to continue improving water quality at the Yadkin Project, beginning with a $40 million investment at High Rock Lake. APGI will install three “through-the-blade” aerating turbines at High Rock once the Federal Energy Regulatory Commission (FERC) issues a new license for the Yadkin Project. The engineering, planning, and model testing of the new turbines has already been completed.

“We will begin work at High Rock Dam as soon as we receive a new license,” Barham said.

# # #

Summary of 2013 Dissolved Oxygen Report Findings
The state measures dissolved oxygen concentrations in two different ways: through instantaneous measurements recorded every 15 minutes, and with a daily average of all measurements in a given day. Here is how the four Yadkin dams performed in 2013 versus a state standard that will take effect when a new federal license is issued:

High Rock Dam (Water enters the Yadkin Project at High Rock)
77.8% compliance with new standard - Daily Average Measurement (Up 39% over 2012)
93.4% compliance with new standard - Instantaneous Measurement (Up 34.2% over 2012)

Tuckertown Dam   
70.1% compliance with new standard - Daily Average Measurement (Up 36.9% over 2012)
87.4% compliance with new standard - Instantaneous Measurement (Up 36.6% over 2012)

Narrows Dam (New technology installed in 2001 and 2007)
100% compliance with new standard - Daily Average Measurement (Up 0.5% over 2012)
99.9% compliance with new standard - Instantaneous Measurement (Same as 2012)

Falls Dam (Water exits the Yadkin Project at Falls) 
100% compliance with new standard - Daily Average Measurement (Up 13.7% over 2012)
100% compliance with new standard - Instantaneous Measurement (Up 3.4% over 2012)

Additional Notes
1. The state standards for dissolved oxygen do not currently apply to the Yadkin Project, but the rule will be applicable under a new federal license.
2. Differences in hydrologic, meteorological and/or other natural conditions or tailwater aquatic vegetation can effect dissolved oxygen levels from one year to the next.

The Final Barrier

The Stanly News & Press published on Tuesday a column I wrote regarding the latest developments regarding the Yadkin Project relicensing. Here's a copy of the column, titled "The Final Barrier":

When you stand atop the Narrows Dam, you can see for miles in every direction. There’s the Uwharrie National Forest and Morrow Mountain State Park, both remarkable for their pristine, undisturbed beauty. Between them flows the water of the Yadkin River.

That water – and four dams constructed along the river by Alcoa – has been the topic of much debate in Stanly County for more than a decade.

Dams, by definition, are a barrier. They capture the water flowing down the river and put it to good use – reservoirs like Badin Lake provide drinking water to local communities, generate clean and renewable energy, create recreational opportunities for people who love to swim, boat and fish, and spur economic development in the surrounding communities.

Alcoa has operated its dams along the Yadkin River for nearly 100 years. But when the company sought a new federal license for its dams, a new set of barriers emerged.

Many people in Stanly County were concerned about the jobs that were eliminated when the Badin plant closed. So shortly after the Badin plant was formally closed in 2010, we immediately began working to redevelop the property. We invested more than $10 million to transform the site into the Badin Business Park, which now ranks among the best industrial sites in North Carolina.

In 2011, Alcoa recruited the nation’s largest electronic waste recycler to Badin. ERI opened a regional recycling center that continues to grow.

Our commitment to jobs helped us reach an agreement with Stanly County last spring. The agreement includes significant investments to support economic development and provides the county with long-term access to clean, affordable water to support the county’s growth. We are now working in partnership with the county to recruit new jobs to the Badin Business Park.

In addition, we continue working to make Stanly County a better place to live. Alcoa awarded scholarships to local high school valedictorians, donated land for a Habitat for Humanity home in West Badin, and donated $20,000 to promote science and technology courses in Stanly County schools.

Only one barrier to a new license remained: obtaining a water quality certificate (known as a 401) from the NC Department of Environment and Natural Resources that recognized Alcoa’s commitment to meet state water quality standards.

In August, the agency was prepared to issue a 401 certificate for the Yadkin Project.

Our investment in new technology at Badin Lake had resulted in significant water quality improvements. In fact, our annual monitoring now shows that water leaving the Yadkin Project was meeting key water quality standards that will take affect once a new license is issued for the Yadkin Project.

With a proven technology in place and a commitment to spend an additional $80 million to fund further improvements upstream, Alcoa had successfully demonstrated its commitment to water quality.

After months of public hearings and careful evaluation by water quality professionals, DENR was ready to act. It prepared a copy of the 401 certificate and notified us about the impending announcement.

But a new, unexpected barrier emerged.

Gov. McCrory claimed the state owned the land under our dams and filed a lawsuit against Alcoa. His administration inserted itself into the regulatory process and insisted that DENR deny our 401 application.

So, once again, we find ourselves in a familiar place: fighting for the right to run the dams we built on the property we own. It’s a clear threat to our property rights – and the rights of anyone who owns property along a waterway in North Carolina.

For Stanly County, the lawsuit has unfortunate consequences.

It will further delay benefits such as the expansion of Morrow Mountain State Park, the development of a new waterfront park in Badin, the donation of land for a new water treatment plant, the funding of future economic development initiatives, and a host of other benefits for those who live or play on the lakes.

But our commitment to this community remains steadfast.

We will continue working to improve water quality and protect the beautiful natural resources along the river. We will continue providing time and money to support worthwhile causes in the community. And we will continue paying property taxes on the land we are fighting to protect.

We didn’t pick this legal fight, but we are prepared to defend our property rights in court. No matter how long it takes. 

Public Hearing Scheduled for Tuesday, May 14

The NC Department of Environment and Natural Resources issued the following notice today about a public hearing on our water quality certification request. 

Public hearing scheduled for May 14 on Alcoa water quality certification request

RALEIGH – The N.C. Division of Water Quality will hold a public hearing at 7 p.m. May 14 to gather public comments concerning Alcoa Power Generating Inc.’s application for a state water quality certification as required by the federal Clean Water Act and the Federal Energy Regulatory Commission relicensing process.

The Federal Energy Regulatory Commission, or FERC, hydropower licensing process works to ensure that projects will minimize damage to the environment through the certification requirements of state water quality agencies.

If the FERC license were approved, it would allow Alcoa to continue operation of the hydroelectric dams at High Rock, Tuckertown, Narrows and Falls reservoirs on the Yadkin River. This run of the river crosses Davie, Davidson, Rowan, Montgomery and Stanly counties.

The hearing will begin at 7 p.m. in the Stanly County Commissioners Meeting Room, 1000 North First St., Albemarle. Speaker registration and sign-in will begin at 6 p.m.

The purpose of the hearing is to allow the public to comment on the company’s application submitted in September 2012 and additional information submitted thereafter. The application and supporting documents can be found online at: http://its.enr.state.nc.us/Weblink8/Browse.aspx?startid=169386.

The application may also be inspected at the DWQ central offices in the Archdale Building, 512 North Salisbury St., Raleigh, N.C. 27604. To schedule an appointment to review the file, please contact Karen Higgins atkaren.higgins@ncdenr.gov or 919-807-6360.

The public is invited to comment on the application by speaking at the hearing, by submitting written comments at the hearing or by mailing them to the division. Please send comments to Karen Higgins at the above email address or to: Karen Higgins, DWQ, 1650 Mail Service Center, Raleigh, N.C. 27699-1650. The comment period ends at 5 p.m. June 13.

APGI releases additional information on 401 appeal

On Friday, January 28, Alcoa Power Generating Inc. (APGI) appealed the North Carolina Division of Water Quality's (DWQ) revocation of APGI's water quality certification (401).

Today, we are releasing documentation showing that DWQ was well informed about the equipment in question and its functionality in increasing levels of dissolved oxygen (DO) in the water and that APGI did not withhold important information. 

Please visit our website at www.alcoa.com/yadkin/en/info_page/401_appeal_summary.asp for more information.

Alcoa Power Generating Appeals Water Permit Revocation

Record Shows Full Disclosure; State Decision Based on Incomplete Facts 

Alcoa Power Generating Inc. (APGI) has appealed the North Carolina Division of Water Quality’s (DWQ) revocation of its water quality certification, stating that the agency was well informed about the functionality of the equipment in question and that the company did not withhold material information.

“In its revocation notice, the DWQ quotes selected portions of emails that do not provide the complete story and were taken out of context. If you read the entire email chains in context, and review the entire record, you find that no material information was withheld,” according to Rick Bowen, President, Alcoa Energy.  

A complete review of the emails cited by the DWQ shows that some of individuals who were working on the relicensing and authored these messages were confused at the time of the email exchange, and the points of confusion were cleared up in subsequent emails. For example, during one of the exchanges, a consultant concludes by saying, “This is news to me. Sorry for the confusion.” In another, a consultant states, “As I was looking over the materials again, I must confess I got confused.”

“We have the documentation to show that we were not withholding material information, and that we have publicly shared the operating conditions covered in these messages,” said Bowen.

The record shows that the DWQ was aware that operating conditions and generating levels could affect dissolved oxygen enhancement, participated in multiple discussions over a period of years on the same subject, and was in possession of detailed reports on the effects various operating scenarios had on dissolved oxygen levels,” Bowen said. 

The DWQ revoked APGI’s water quality certification on December 1, alleging that the company withheld information regarding the project’s ability to meet the state’s water quality standard for dissolved oxygen.  Alcoa Power Generating filed an appeal of that decision today. APGI is a subsidiary of Alcoa.

According to documents compiled by APGI, company officials and others discussed the system with the state during at least three Issue Advisory Group meetings attended by DWQ representatives on October 7, 2003, May 4, 2004 and April 6, 2005. The information was also included in APGI’s 2006 Federal Energy Regulatory Commission (FERC) license application, the Final Environmental Impact Statement for the Yadkin Project issued by FERC in 2008, and in multiple Yadkin Project Water Quality reports. 

Some examples include:

• Representatives of the DWQ participated in a Water Quality Issue Advisory Group meeting on May 4, 2004, where there was discussion of the anticipated structure of the dissolved oxygen enhancement and compliance provisions to be included in the 401 water quality certification. At this meeting, the typical operating scenarios at the Narrows development were discussed, as well as the process of how dissolved oxygen increases as the units are operated.
• The Final Environmental Impact Statement for the Yadkin Project issued by FERC in April 2008 reviews how operating conditions and generating levels affect dissolved oxygen enhancement. In it, FERC’s hydropower experts reviewed the results of the enhancement test and drew significant conclusions, such as “tests indicate that this aeration system [at Unit 4] increases DO concentrations by differing magnitudes, depending on the generation flows of each of the Narrows units and whether the two valves are open.”
• The 2005 Yadkin Water Quality Final Study prepared by Normandeau Associates discussed the effect of the operational conditions. The DWQ received and commented on the draft water quality report.

“We hope that our appeal will mean quick reinstatement of the water quality certification process so we can continue to work toward a new license, as well as a future with better water quality and more areas for Stanly County residents to enjoy with their families,” said Bowen.

Once APGI’s license is renewed, there will be many benefits to North Carolina, including improvements to water quality; increased water withdrawals; higher water levels during an extended recreation season; the creation of new parks, swim areas and other recreational opportunities; funding for recreational support; more flexibility for property owners; donations for habitat protection and water safety; and work with community partners for historical and cultural protection. In addition, APGI will sell or donate more than 6,000 acres for conservation, recreation or game lands. 

APGI is also implementing a plan to improve water quality that to date has resulted in significant improvements in dissolved oxygen levels. In a recent report filed with the DWQ, APGI documented that water leaving the Yadkin Project met state standards for dissolved oxygen 99.9 percent of the time.

Alcoa Power Generating to Challenge State’s Effort to Revoke Water Quality Certificate

Alcoa Power Generating Inc. is disappointed and surprised by the state’s plans to start proceedings to revoke the Yadkin Project’s 401 Water Quality Certificate and will immediately challenge the state’s effort, the company announced today.

The certificate, which lays out a plan for APGI’s Yadkin Project to meet water standards, was issued in 2009 by the North Carolina Division of Water Quality and is currently under appeal by APGI and other parties.

“Our team of experts developed a comprehensive plan to improve water quality and we are already seeing improvement,” said Rick Bowen, president of Alcoa Energy. “We do not believe the state’s decision is justified or appropriate.

“We believe that rather than continue litigation, it would be better to work together toward an outcome that protects the environment and promotes economic development and jobs for residents of North Carolina.”

APGI, a subsidiary of Alcoa, is currently applying to the Federal Energy Regulatory Commission for a new operating license for the Yadkin Project. FERC will not issue a license until a 401 Water Quality Certificate is granted by the state of North Carolina. 

In May 2009, the state’s Division of Water Quality issued a certificate that included a plan to install new technology at APGI’s Yadkin Project to improve dissolved oxygen (DO) levels. The installation is not yet complete, but already DO levels are meeting the state’s standards much of the time. At the Falls Dam, for example, DO standards were met 97 percent of the time in 2009

“This same technology is widely and successfully used in the hydropower industry, including more than 15 locations in North Carolina and surrounding states,” Bowen said.

Throughout the 401 application process, APGI worked with state officials, supplying information in the form of monitoring data and other reports to document our approach to meeting water quality standards. No material information was withheld from the state of North Carolina.

“Alcoa Power Generating understands that meeting water quality standards is not optional,” Bowen said. “If the state of North Carolina is concerned that this technology is not adequate, the current 401 certificate contains a ‘reopener’ that allows new conditions to be imposed.

“The state’s decision to revoke our current certificate is unreasonable and was taken without adequate notice or opportunity for response. We plan a vigorous response.”

APGI challenges some elements of Yadkin Project water quality certificate

In May 2009, the N.C. Department of Environment and Natural Resources issued a water quality certificate for the Yadkin Hydroelectric Project. Alcoa Power Generating Inc. (APGI) agrees with the determination by the Division of Water Quality (DWQ) that discharges from the Yadkin Project will meet North Carolina water quality standards and is committed to taking necessary steps to maintain and improve water quality in the Yadkin River.

The water quality certificate has been challenged by Stanly County and the Yadkin Riverkeeper in the Office of Administrative Hearings. While APGI believes that DWQ correctly determined that the Yadkin Project will meet water quality standards, certain conditions are excessive and beyond the state’s authority. In addition, certain timing requirements were not satisfied by the agency.

In light of the pre-existing challenges to the water quality certificate, APGI elected to file its own appeal of certain, specific items in the 401 water quality certificate on Monday.

APGI’s main point of contention is the $240 million surety bond required as a condition of the water quality certificate. While APGI has frequently said that it plans to spend a total of $240 million to upgrade the Yadkin Project dams and powerhouses, only a portion of that money is directly related to improving water quality by increasing dissolved oxygen levels as required in the 401 certification. The $240 million figure cited by APGI included other upgrades and maintenance that are unrelated to improving water quality.

APGI does not believe that a surety bond is required. The company has already spent more than $40 million on total upgrade efforts – including nearly $12 million to increase dissolved oxygen levels – and has continued those efforts voluntarily. APGI may spend as much as $69 million more to meet the water quality improvement requirements set forth in the 401 certificate. However, if a surety bond requirement is ultimately determined to be within the state’s authority and necessary to ensure APGI’s compliance with the dissolved oxygen requirements, the amount of that bond should not exceed $69 million.

401 Certificate Not Issued In Timely Manner

APGI’s appeal raises a second key issue – that the 401 certification was not “granted or denied” within a specific time period as required by DENR’s own rule and the federal Clean Water Act.

The original application was filed in May 2008.

The State waived the requirement for a 401 certificate for two reasons:

1. DWQ failed to issue an effective 401 certification within 60 days of a public hearing. A public hearing was held on January 15, 2009; and

2. DWQ it failed to issue a fully effective 401 certificate within one year of the date that APGI filed its application for it.

Why FERC Should Act Now

In a filing with the Federal Energy Regulatory Commission (FERC) on Wednesday, Alcoa Power Generating Inc. (APGI) outlines the reasons why FERC should reject continued efforts to delay the relicensing process and instead promptly issue a new long-term license to APGI for the Yadkin Project.

“The present effort to block the issuance of the license via the challenge to the Section 401 Certification is yet another attempt to end-run around the Commission’s long-established relicensing procedures,” the filing states.

The 11-page filing reiterates that FERC has all of the information necessary to issue a new license and says there is no compelling reason to delay the relicensing process by an additional year (or longer) while an appeal of a required state water quality certificate (the 401 certificate) is heard.

“The Commission’s precedent is clear: its practice is to issue a license to the applicant when its record is complete and a 401 certification has been received, regardless of whether an appeal of a Section 401 water quality certification is pending before state administrative agencies or courts, even if the certification has been stayed,” the filing states.

The filing points out that if the requirements of the 401 certificate change as a result of the appeal, FERC will incorporate those new requirements into the license conditions.

The filing also notes that FERC could determine that the State of North Carolina has waived its rights by failing to file an effective 401 certificate before the May 7, 2009 deadline. The state waited until the last possible moment to act on APGI's application, then issued a conditional certificate that could not become effective before the deadline.

A complete copy of APGI's filing is available at www.ferc.gov.

Another unnecessary delay: Judge stays water quality certificate for the Yadkin Project

Another unnecessary delay. 

That’s the result of a ruling today by an administrative law judge in Raleigh who agreed to stay the 401 water quality certificate that was issued for the Yadkin Project just two weeks ago.

The decision was reached after Gov. Perdue took the unprecedented step of publicly disagreeing with the professionals in the N.C. Division of Water Quality who have the technical expertise to best evaluate water quality issues.  The experts at DWQ carefully studied these issues for two years and acted properly by issuing a water quality certificate for the Yadkin Project. 

We are confident that the 401 certificate will be upheld when all is said and done.  But for now, we wait to see what the Federal Energy Regulatory Commission (FERC) will do. 

Despite the stay, FERC still has the authority issue a new long-term license.  And it should.  

North Carolina approves water quality certificate for Yadkin Project, clears the way for FERC to issue Alcoa a long-term license

The N.C. Division of Water Quality today issued Alcoa Power Generating Inc. (APGI) a required water quality certificate for the Yadkin Hydroelectric Project. The action clears the way for the Federal Energy Regulatory Commission (FERC) to issue a new long-term license for the Yadkin Project.

“Obtaining this water quality certificate was the last major milestone in the relicensing effort that we began in 2002,” said Gene Ellis, APGI licensing and property manager. “We hope FERC will now move quickly to issue a new long-term license for the Yadkin Project so that we can begin implementing the important benefits in our relicensing settlement agreement.”

Once FERC issues a new long-term license for the Yadkin Project, APGI will begin implementing the relicensing agreement that it negotiated with state and federal agencies, local governments, homeowners and recreational users, business organizations, environmental interest groups and others. The agreement will improve water quality in the Yadkin River, create new recreational opportunities around the lakes, better protect the water supply during drought, provide for increased water withdrawals by local municipalities and set aside land for conservation purposes.

You can find the offiical 401 Certification online at http://h2o.enr.state.nc.us/admin/pubinfo/DWQPubInfoNewsReleases.htm

Lexington Dispatch: Decision on Yadkin water quality permit "should remain free of political pressure"

The Lexington Dispatch ran an editorial Wednesday saying that “Legislators need to pause and think carefully about the path they’re heading down. If they take over this private business, what’s to keep them from doing it to others? And should they do that and then allow another business to operate it, then that would be a particularly troubling development. Certainly reasonable safeguards that ensure water access are justified, but the license already covers that ground.”

In addition, the editorial stressed that Alcoa’s pending application for a water quality permit should remain free from political pressure: “Finally, politics shouldn’t come into play on the water quality permit. That decision should be based on the technical aspects alone. If legislators truly want to take over the project, they can attempt to do that through legislation. State regulatory bodies should remain free of political pressure to issue a certain decision.”

Click here to read the entire article.

Fish advisory should not impact water quality certificate

A lot of folks are wondering if the recent fish advisory issued for Badin Lake will impact APGI's application with the State of North Carolina to receive a Section 401 water quality certificate for the Yadkin Hydroelectric Project.

It shouldn’t.

The 401 water quality certificate focuses on the quality of water being discharged from our dams.  We are confident that the Yadkin Project will meet all relevant water quality standards.

A recent water test conducted as part of the 401 process has confirmed that no PCBs were detected in the Badin Lake water being discharged from the Badin dam — nor were any other contaminants found. This confirms prior results that have regularly shown that the water quality in Badin Lake is good and in compliance with applicable North Carolina water quality standards.

The N.C. Division of Water Quality has said it will study the source of PCB contamination in Badin Lake, and it should.  But that should not impact the Yadkin Project’s unrelated water quality certificate. 

Yadkin Project discharges expected to meet North Carolina water quality standards

Gene Ellis shared the following remarks on January 15, 2009 during the public hearing regarding APGI's application for a Section 401 water quality certificate:

Good evening.  My name is Gene Ellis and I am the licensing and property manager for Alcoa Power Generating Inc.  We welcome this opportunity for the public to comment on our application for a 401 water quality certificate from the North Carolina Division of Water Quality, which is required for the Federal Energy Regulatory Commission to issue a long-term license for our hydroelectric project.

The relicensing process involves a comprehensive examination of the Yadkin Project over the course of several years. This includes an environmental impact assessment under Federal Energy Regulatory Commission regulations.  Tonight’s hearing involves one specific aspect of our operations — whether or not the Yadkin Project will meet North Carolina water quality standards as measured in water being discharged from the powerhouses. 

You may hear mention of environmental sites associated with the Badin Works plant historically operated by Alcoa Inc. Let me be very clear. Alcoa is committed to protecting public health and the environment. We have worked closely with state government in ensuring that we manage these sites in the interest of public health and the environment. Alcoa will not abandon this commitment and fully understands that this is an ongoing responsibility. It is important to recognize that these environmental issues are being addressed separately by Alcoa under the close regulatory authority of the North Carolina Department of Environment and Natural Resources.

Water quality has been an important focus of the relicensing process from the beginning.  Independent consultants have conducted numerous studies of the Yadkin River water quality during the past six years.  In addition, the State routinely collects water quality data in the Yadkin Project reservoirs. 

Based on this volume of data, we believe that discharges from the Yadkin Project dams will meet applicable water quality standards in North Carolina.  To address concerns about dissolved oxygen levels, we have already begun investing in new equipment to increase dissolved oxygen levels and improve water quality in the Yadkin River.  In fact, recent testing has demonstrated that dissolved oxygen levels are already increasing and water quality is improving.

Within the past year, APGI has worked with DWQ to conduct an additional study and submit plans for further sampling and analysis to augment the 401 application.  That work includes an independent assessment of the quality of water being discharged from the Narrows powerhouse at Badin Lake.  This sampling — for a wide array of constituents — was requested by DWQ in response to concerns that were raised by Stanly County.

The findings, which were filed with DWQ in September 2008, demonstrate that the operation of the Narrows development does not result in the discharge of pollutants in excess of North Carolina water quality standards.  Of the more than 100 substances that were tested, absolutely none were detected in concentrations in excess of North Carolina water quality standards.  In most cases, tests could not detect the presence of any of the substances, even using highly sensitive and sophisticated testing methods. 

After carefully reviewing the data relating to the water quality in the discharges from our dams, APGI strongly believes that discharges from the Yadkin Project will meet North Carolina’s water quality standards and that a 401 certification should be issued in the next few months.

As I mentioned earlier, this certificate is required as part of the federal relicensing process for the Yadkin Project and any further delay in issuing the certificate will continue to delay the benefits that the people of North Carolina negotiated in relicensing.  This 401 certification process needs to stay focused on the sole issue that the State has been asked to consider — whether or not the water being discharged from our dams will meet State water quality standards.  Thank you.

Public Hearing on APGI’s 401 Application Rescheduled for January 15, 2009

The N.C. Division of Water Quality (DWQ) has rescheduled the public hearing regarding APGI’s application for a Section 401 water quality certificate. As I’ve mentioned before, APGI must receive a water quality certificate from the State of North Carolina before FERC can issue a new long-term license for the Yadkin Project.

The public hearing originally scheduled for December 16, 2008 will now be held on January 15, 2009 at 7 p.m. at the Stanly County Commissioners Meeting Room at 1000 North Street in Albemarle, NC 28001.

We requested the hearing be rescheduled to make sure that all interested parties were properly notified. Interested members of the public have the opportunity to attend and comment at the public hearing.

NC Division of Water Quality issues public notice re: water quality certificate

The N.C. Division of Water Quality (DWQ) has issued a public notice regarding APGI’s application for a Section 401 water quality certificate. As I’ve mentioned before, APGI must receive a water quality certificate from the State of North Carolina before FERC can issue a new long-term license for the Yadkin Project.

At our request, DWQ has scheduled a public hearing regarding our application. The hearing is slated for Tuesday, December 16 in Albemarle, NC. We requested this hearing to ensure that all interested parties have an opportunity to comment on the water quality application.

As part of the application process, APGI recently tested the water quality below the Narrows (Badin Lake) dam. The sampling showed that the discharges meet state standards for water quality. You can read more about the discharge sampling in an earlier blog entry.

The Relicensing Settlement Agreement for the Yadkin Project includes several measures designed to protect and improve the water quality in the Yadkin River, including the installation of state-of-the-art aeration technology to increase dissolved oxygen levels and improve water quality as part of a $240 million upgrade.

In addition, APGI has agreed to modify the minimum low flow in the river, provide protection through vegetated buffers and conduct flow monitoring in the river.