Public records provide inside look at opposition to Yadkin Project relicensing

Alcoa Power Generating Inc. has launched a website, TheYadkinFacts.com, that makes public records related to the relicensing of the Yadkin Hydroelectric Project available online. Click here to view the website. 

“We believe transparency in government is important,” said Kevin Anton, Alcoa’s Chief Sustainability Officer. “The records included on this site will help make clear the activities of those pushing for a government takeover of Alcoa’s private property and dams, activities that to date have largely been kept from public view.”   

Documents contained on the site are organized around three categories — the $5+ million in taxpayer money spent by the Stanly County Commissioners to oppose Alcoa’s license; the missed opportunity to create 450 new jobs with Alcoa’s recruitment of Clean Tech Silicon & Bar; and the tactics employed by Alcoa’s opponents. 

Some of the documents on the website show that:

• Stanly County has spent more than $5 million since 2006. More than $3 million has been paid to Parker Poe Adams & Bernstein, a Charlotte law firm that has billed the county as much as $495 an hour. 
• The written agreements proposed by Alcoa and Clean Tech in December 2011 included a commitment to provide 750 jobs with an annual payroll of at least $30 million for the next 30 years. 
• The NC Water Rights Committee was a created by Stanly County. A public opinion poll and other information released under the name of the NC Water Rights Committee was actually paid for by Stanly County taxpayers. 
• A Stanly County lobbyist drafted legislation calling for a Yadkin Project Study in 2008. Alcoa’s opponents were encouraged to tell legislators “the simple bill you will be voting on just creates a study commission…," but the lobbyist had a different message for Stanly County Commissioners: “Remember that I drafted the bill and left plenty of holes wide enough to sail the recapture ship through the dams."  

This site will make available thousands of public records Alcoa received from the Stanly County Board of Commissioners, the NC Department of Commerce, and the Office of the Governor in response to public requests requests that began in 2008.  An initial set of documents is now available, and a searchable database of all public records provided to Alcoa is under development. New documents will be added frequently.

For more information, visit the website at www.theyadkinfacts.com. 

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.

N.C. Property Rights Coalition criticizes North Carolina’s effort to seize Alcoa's private property

The chairman of the N.C. Property Rights Coalition issued a statement today that criticizes efforts by the State to North Carolina to takeover Alcoa’s privately-owned hydropower business and encourages residents to “speak out in defense of their private property rights.” 

The complete statement is posted below:

Chairman of N.C. Property Rights Coalition speaks out on State's effort to seize Alcoa's private property in North Carolina

RALEIGH, NC – Kieran Shanahan, Chairman of the N.C. Property Rights Coalition, today issued the following statement regarding the State of North Carolina’s efforts to seize private property owned by Alcoa: 

“The North Carolina Property Rights Coalition is greatly concerned about the attempt by state government to take over Alcoa’s property in North Carolina.  Alcoa is a private business that paid for and developed the land it owns.  If the state is allowed to seize Alcoa's property, how vulnerable are private citizens and small business owners to the same type of government takeover?  Private property rights are one of the cornerstones of our free society, yet every day we hear more stories of federal, state and local governments infringing on private property rights.  Private property owners all over North Carolina should take notice of this issue and speak out in defense of their private property rights.” 

Background Information on the situation is available here: http://ncpropertyrights.blogspot.com/2009/04/federal-government-grants-state-of-nc.html

The North Carolina Property Rights Coalition (NCPRC) is a 501(c) (4) non-profit organization which advocates public policies which advance and protect the rights and interests of property owners in North Carolina. More information on the N.C. Property Rights Coalition is available at www.NCPropertyRights.com.

Alcoa to FERC: Gov. Perdue’s motion to intervene in hydro relicensing “lacks justification"

Alcoa Power Generating Inc. (APGI) filed a formal response Wednesday to N.C. Gov. Bev Perdue’s motion to intervene in in the federal relicensing of the Yadkin Hydroelectric Project.  On April 1, Gov. Perdue asked the Federal Energy Regulatory Commission (FERC) to hold an immediate hearing as part of her effort to pursue a government takeover of the privately-owned Yadkin Project.

APGI filed a response with FERC, noting that Gov. Perdue’s motion “lacks justification and legal merit” and “should be denied expeditiously.” 

The company explains that Gov. Perdue’s motion to intervene is “unnecessary and duplicative because the State of North Carolina is already a party to this proceeding.”  The N.C. Department of Environmental and Natural Resources (DENR) has been actively involved in the relicensing process since 2002 and has acted in an official capacity on the State’s behalf.  DENR formally intervened in the Yadkin Project relicensing on February 22, 2007.   

“The relicensing process has been ongoing for more than six years, and North Carolina has been involved from the beginning,” said Gene Ellis, APGI Relicensing & Property Manager. “The issues raised in the Governor’s filing have been fully vetted and FERC staff has already recommended issuing a new long-term license to APGI. The intervention is simply a belated attempt to take a privately-owned business for the benefit of the State.”

Twenty-three organizations negotiated in good faith to develop a Relicensing Settlement Agreement that addresses how the Yadkin Project will be managed in the future.  The agreement received widespread support from state agencies representing North Carolina, local governments including some within Stanly County, environmental groups like American Rivers, organizations representing local homeowners and recreational users, business groups and others. 

In addition, FERC staff has already recommended issuing a new long-term license to APGI and has said they “do not consider federal takeover to be a reasonable alternative” for the Yadkin Project.

APGI has vowed to fight North Carolina’s unprecedented bid to take its privately-owned hydropower business.  If successful, a government takeover could cost North Carolina taxpayers more than $500 million and damage North Carolina’s “business friendly” reputation.

A complete copy of APGI’s filing with FERC is available at: http://elibrary.ferc.gov/IDMWS/common/OpenNat.asp?fileID=11991245

Alcoa vows to fight efforts to seize privately-owned business

I wanted to share with you the following press release that was was issued this morning:

Alcoa vows to fight efforts to seize privately-owned business

Proposed bill in the N.C. General Assembly would forcibly seize hydropower business along the Yadkin River, costing taxpayers hundreds of millions of dollars

BADIN, NC (MARCH 26, 2009) – Alcoa Power Generating Inc. (APGI) said today that efforts by elected officials in North Carolina to forcibly seize its privately-owned hydropower business would cost North Carolina taxpayers hundreds of millions of dollars and harm the state’s “business friendly” reputation.

Sen. Fletcher L. Hartsell, Jr. introduced a bill (SB 967) Wednesday that sets up a State Trust that would allow the State of North Carolina to take the Yadkin Hydroelectric Project, a privately-owned business along the Yadkin River in central North Carolina that generates clean, renewable energy.  Taking the Yadkin Project would cost North Carolina taxpayers hundreds of millions of dollars, including $240 million in required expenses to improve water quality and maintain and upgrade the dams and powerhouses. 

“This has absolutely nothing to do with protecting North Carolina’s water.  It has everything to do with the government trying to take a privately-owned business for its own benefit,” said Gene Ellis, licensing and property manager for APGI.  “It’s a bad idea and sets a dangerous precedent for other North Carolina businesses.  We will fight it.”   

Beginning in 1915, Alcoa invested $80 million in private money to purchase more than 38,000 acres of land along the Yadkin River and develop four dams and powerhouses without any government aid or assistance.  The project led to the development of four reservoirs, including Badin Lake and High Rock Lake, that have been a strong economic asset to the region.  APGI has operated the Yadkin Project under a federal license since 1958; that license is now up for renewal.

“There are established state and federal processes for relicensing hydroelectric projects and Alcoa has played by the rules,” Ellis explained.  “Since 2002, we have pursued a new hydropower license through proper channels and with the active involvement of state agencies, local governments and the residents who live in nearby communities.  There are 22 privately-owned hydropower projects in North Carolina and this project should not be treated any differently – or held to a different standard – than other business in this state.”

A public opinion poll conducted by McLaughlin & Associates last year found that 71 percent of North Carolina voters oppose the idea of spending taxpayer money to take the Yadkin Project.  Only 10% favored spending millions to take over the business. By a 2-to-1 margin, voters believed that a government takeover is a violation of private property rights.

Sen. Hartsell previously said that he had no interest in taking the Yadkin Project under any circumstances.  While discussing a proposed study bill related to the Yadkin Project relicensing in a House Judiciary committee meeting on July 15, 2008, Sen. Hartsell said: “I want to say upfront and unequivocally that this bill is not, never was and is never intended to be a taking of any sort under any circumstances for anything. Period.”

The introduction of SB 967 represents a dramatic departure from Sen. Hartsell’s earlier comments. 

Albemarle Mayor Whit Whitley and others are concerned that efforts to take control of a private business is bad for North Carolina’s “business friendly” reputation and may make it more difficult to recruit companies who are thinking about doing business here.

“Why is this issue even on the table?” Mayor Whitley wrote in a March 2 letter to Gov. Perdue. “The only true consideration is greed, and I am appalled that the state of North Carolina is buying into this type of thinking.” 

“Greed for the ownership of Alcoa's land around the lakes and greed for the revenue that the dams produce are not in the long-term best interest of the county or the state and certainly not in the best interest of the free enterprise system.”

North Carolina already controls water rights in the Yadkin River

APGI does not control access to the water in the Yadkin River, and the relicensing of the Yadkin Project will not limit the State of North Carolina’s ability in any way to withdraw water from the Yadkin River.  State law gives North Carolina the authority to regulate water use within the Yadkin River, including the right to issue new water withdrawal permits.  This ensures that North Carolina will always have access to water from the Yadkin River.

Established North Carolina law provides riparian water rights that ensure property owners along a river have a legal right to access and use the water running across their property.  APGI owns more than 38,000 acres along the Yadkin River and uses the water that runs across its property to generate clean, renewable energy – without consuming the water as it flows downs the river. 

North Carolina state agencies were actively involved in the Yadkin Project relicensing

North Carolina’s interests have been well represented during the relicensing process and will be well protected when APGI receives a new license.  The N.C. Dept. of Environment & Natural Resources and the N.C. Wildlife Resources Commission have been actively involved in the relicensing process since 2002.  Both agencies helped negotiate a relicensing agreement that will improve water quality in the Yadkin River, allow for increased water withdrawals by local municipalities, better protect the water supply during drought, provide for long-term land protection and create new recreation opportunities for North Carolina residents. 

Widespread support for Alcoa Power Generating Inc.

There is widespread support for issuing a new federal hydropower license for the Yadkin Project.  The relicensing agreement has been signed by 23 organizations, including two municipalities in Stanly County.  The City of Albemarle is the largest municipality in Stanly County and one of the largest water users along the Yadkin River, and the Town of Badin is home to the Yadkin Project and represents the community most impacted by curtailment of the Badin Works plant.  Both municipalities strongly support the relicensing.  

Other supporters include state and federal agencies, environmental interest groups, and local homeowners, business groups and recreational users.

Additional Background Information

Learn more about the Yadkin Hydroelectric Project at www.alcoafacts.com and http://yadkinproject.blogspot.com.

Proposed hydro tax at odds with NC's desire to be a national leader in green energy

North Carolina wants to be a national green energy leader, but a proposed new tax on companies that produce hydropower could hamper efforts to attract companies in the renewable energy industry.     

Sen. Stan Bingham (Davidson County) last week introduced Senate Bill 569, a measure that would allow certain counties to levy a privilege tax on businesses that produce hydropower. Hydropower accounts for 20 percent of the world’s energy and is widely regarded as the cleanest form of renewable energy.

The effort to levy additional taxes on hydropower operators is in stark contrast to North Carolina’s efforts to encourage renewable energy and attract “green collar” jobs in the renewable energy industry.  North Carolina passed a landmark renewable energy bill in 2007 (SB3: Promote Renewable Energy/Baseload Generation) that requires utilities to significantly increase their use of renewable energy by 2012.  In addition, the state has established a “Green Business Fund” that provides tax financial incentives to companies developing renewable energy technologies. 

“It’s disappointing that North Carolina would consider forcing companies that generate hydropower to pay additional taxes, especially at a time when generating clean, renewable energy is a high priority with voters.  This could negatively impact the perception of North Carolina among renewable energy companies that are considering business opportunities in North Carolina,” said Gene Ellis, licensing and property manager for Alcoa Power Generating Inc. (APGI), which that operates the Hydroelectric Project along the Yadkin River in central North Carolina.

This proposed tax has the ability to become widespread and negatively impact other companies that produce renewable energy in North Carolina. 

“If this bill passes, we believe other counties will be lining up at the General Assembly, seeking permission to create all sorts of new taxes,” Ellis said. “In this economic environment, it just doesn’t make sense.  Our state leaders should focus on measures that will make North Carolina more friendly to private business.”

The specific goal of SB 569 appears to be another attempt by Stanly County to push for the takeover of the Yadkin Project, one of 22 privately-owned hydropower projects in North Carolina. The county has stated that the privilege tax is a “Plan B” in the event that it fails to win support for a “State Trust” concept that calls for the state to condemn the Yadkin Project.  The State Trust concept would cost North Carolina taxpayers hundreds of millions of dollars, plus $240 million needed to upgrade the dams.

Stanly County claims if the state managed the project, it could provide new jobs and clean up waste sites associated with Alcoa’s Badin Works.   However, Alcoa is actively working to redevelop the Badin Works site and has already spent $10 million to remediate old waste sites associated with its historic operations.  Alcoa has acknowledged that it has a permanent, legal responsibility to manage waste sites in a responsible manner that will protect public health. Taxpayers will never be asked to pay for the cost of remediation.

APGI has operated the Yadkin Project since 1915.  The company is currently seeking to renew its license with the Federal Energy Regulatory Commission (FERC) and a small group of vocal critics in Stanly County is opposing the license renewal.  Stanly County has already spent nearly $1 million in taxpayer money to oppose a new license for APGI. 

In a March 2 letter to Gov. Beverly Perdue, Albemarle Mayor Whit Whitley expressed concerns that the county’s opposition to APGI would discourage other businesses from locating here.  “What industry or manufacturing plant would be interested in coming to NC or Stanly County if they use natural resources?” Whitley asked. “What would the opinion of reasonable thinking people be when they realize NC and Stanly County no longer have any regard for the free enterprise system?”  (You can read Mayor Whitley's entire letter here.)