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. 

Upstream sources of PCB contamination deserve attention

On the heels of a Badin Lake fish study conducted by the N.C. Division of Public Health, the N.C. Division of Water Quality has said it will study the source of PCB contamination in Badin Lake. 

It certainly should.  The fish study has understandably raised concerns among lake residents. 

It is my hope that this will lead to greater scrutiny of upstream sources of contamination that could be causing PCBs to flow downstream and into Badin Lake. 

A couple of reasons why upstream sources of contamination are a concern: (1) Three of the four fish with elevated levels of PCBs were located in the northwest portion of Badin Lake, several miles upstream of the Badin Works plant; and (2) Previous testing by the N.C. Division of Water Quality indicate that fish in the Yadkin River near Mocksville — upstream of Badin Lake — have been found to have elevated levels of PCBs. 

At a public meeting on Wednesday, Department of Health officials said it makes sense to look upstream for sources of the contamination.

Some have questioned whether Alcoa has a role in the contamination found in the fish.  Alcoa has been studying the sediments in Badin Lake closest to the Badin Works plant for years and has shared that data with the N.C. Division of Public Health and the N.C. Division of Waste Management.  We provided a study as far back as 1997 that found low levels of PCBs in isolated pockets of sediment located near the Badin Works plant. 

Here are two important points regarding those contaminated sediments:

(1) Importantly, the levels of PCBs in the sediment are already at or below levels typically required for cleanup by the Environmental Protection Agency.

(2) Sediment sampling conducted by Alcoa in Badin Lake in October 2008 demonstrated that contaminated sediments are isolated near outfall areas and are not migrating.

Rest assured, we take our environmental responsibility seriously and are continuing to work with the State of North Carolina to determine what additional work or ongoing monitoring might be necessary.

Low-level fish advisory doesn’t change recommended fish consumption at Badin Lake

The N.C. Division of Public Health has issued a low-level fish advisory for Badin Lake that reiterates its recommendation that residents should limit their consumption of largemouth bass and catfish to no more than once a week.  Pregnant women, nursing mothers and children under 15 should not eat these fish at all.

This advisory does not change the current recommendations for eating fish in Badin Lake in any way.  Under an existing statewide advisory for mercury, the N.C. Division of Public Health has already recommended limiting consumption of largemouth bass or other fish high in mercury to no more than once a week.

This advisory is the result of a fish tissue study that was recommended and partially funded by Stanly County.  The study — the most sophisticated study of fish tissue ever conducted in North Carolina — found slightly elevated levels of PCBs in one largemouth bass and three catfish out of 30 fish that were tested.

Given the prevalence of PCBs in every waterway in America, it is not surprising that a highly sensitive study would find a few fish with slightly elevated levels.  If the State used the same procedures to test fish in other lakes and rivers in North Carolina, it would likely find similar levels of PCBs in fish from those waters.

The presence of PCBs in fish is not an isolated issue affecting Badin Lake.  In fact, test results posted on the N.C. Division of Water Quality website indicate that fish in many other lakes and rivers across the state — including the Yadkin River near Mocksville, upstream of Badin Lake — have been found to have elevated levels of PCBs. 

At a public meeting on Wednesday, Department of Health officials said that although this study wasn’t designed to identify potential sources of contamination, it makes sense to look upstream for sources of the contamination since a majority of fish with elevated PCB levels were caught in the northwest part of the lake.

Charlotte Observer: Reclaiming Yadkin section won't be easy

The Charlotte Observer published a story yesterday detailing the steep challenges facing those who are interested in taking control of the Yadkin Project.  The article by Bruce Henderson notes that FERC has never exercised its ability to takeover a hydro project and points out that the deadline to pursue such an option expired more than two years ago.  In addition, Henderson notes that a $2-3 billion budget shortfall will make it difficult for legislators to consider a costly takeover. 

The entire article is posted below:

Reclaiming Yadkin section won't be easy

Taking river section back from Alcoa could require bigger than expected payment in year when state facing budget shortfall.

By Bruce Henderson

As time to act slips away, business and civic leaders east of Charlotte are pressing a federal agency to take a historic step: Reclaim 38 miles of the Yadkin River now controlled by aluminum giant Alcoa. 

Alcoa's power no longer provides local jobs at its now-closed smelter and sells on the open market, netting the company about $8 million a year. Water-rights advocates insist the hydropower, under company control since 1915, should benefit the people of North Carolina.

In a state where drought and growth no longer make water a disposable resource, the populist stand has drawn some political support.

Former Gov. Mike Easley asked federal regulators last year for a one-year delay in renewing Alcoa's license. The former leader of a water-rights committee pressing the issue is incoming Gov. Bev Perdue's commerce secretary.

Perdue still supports a delay “while community concerns are evaluated and the state considers the most appropriate use of this public resource,” spokesman Tim Crowley said.

A report on the issue is due to a legislative commission by Feb. 1.

But the legal and financial odds seem to weigh heavily against taking away Alcoa's license:

- Although a 1920 federal law allows it, the Federal Energy Regulatory Commission has never reclaimed a hydro license. Agency staff doesn't consider it a “reasonable alternative” in Alcoa's case.

- The two-year window in which the federal agency could take steps to reclaim the license passed, without action, last May.

- While supporters say the license could be retaken by paying Alcoa as little as $24 million, the company says infrastructure improvements it has committed to could add $240 million to the costs.

The water-rights committee envisions the state repaying the federal government's costs of compensating Alcoa. But the state faces a $2 billion to $3 billion budget shortfall this year.

“When you look at those three pieces, we just don't see that it's likely at all,” said Gene Ellis, an Alcoa official in Stanly County.

Questions about pollution

Alcoa expects its license to be renewed within months. The final step, a state water-quality permit, has been delayed by concerns over pollution from the old aluminum works but is on schedule to be issued by May.

Stanly County, where the smelter sits, says Alcoa still has not cleaned up 90 years' worth of pollution. Alcoa says it has spent millions investigating 47 potential contamination sites and cleaning up the six that needed it. 

The state is expected to order Alcoa to monitor pollutants in Badin Lake and its dam.

The N.C. Water Rights Committee, predicting growth in the region of small towns and countryside, says too much is at stake to call off its fight.

“That river basin is probably the last major river basin in America with no major population center,” said treasurer Christopher Bramlett, a retired chemistry professor in Albemarle. “The thought of tying that down for 50 years is very troubling.”

The water-rights group has recently promoted the idea of a state-held trust taking control of the Yadkin license. It was led until recently by Keith Crisco, an Asheboro businessman who is the state's newly installed commerce secretary. NASCAR legend Richard Petty touts the movement on the group's Web site.

In addition to managing the hydro project, the committee says, the trust would use the profits to pay for economic development, conserve land and clean up Alcoa's pollution.

Stanly County supports the idea. A newly established water advocate, the Yadkin Riverkeeper, has taken no formal position on a federal takeover.

“We do have concerns about implementation,” said Riverkeeper Dean Naujoks, “but certainly on paper it is a better plan than anything Alcoa has proposed.”

Six-term state Sen. William Purcell, a Laurinburg Democrat who represents Stanly County, isn't so sure.

“I just think this thing would take a lot of study and taking a look at before the state of North Carolina would get involved,” Purcell said. “It seemed to make some sense, but if it's going to take money to do, it's going to be difficult.”

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.