Friday, January 28, 2011

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.

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