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.

Alcoa responds to FERC ruling

Today, the Federal Energy Regulatory Commission (FERC) determined that the State of North Carolina acted within the one year timeline to issue a required water quality certificate for the Yadkin Hydroelectric Project. Alcoa Power Generating Inc. (APGI) had argued that the State waived its rights by failing to issue an effective certificate within one year.

FERC continues to have the ability to issue a new long-term license based on the water quality certificate that was issued by the NC Division of Water Quality on May 8, 2009.

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.

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