State Directs Environmental Review Commission to Study Impacts of Granting Alcoa a 50-Year License for Control of the Yadkin River, Allows All Available Options To Be Examined

RALEIGH, N.C., July 18 /PRNewswire/ -- The N.C. Water Rights Committee (www.ncwaterrights.org) is commending both chambers of the North Carolina General Assembly for their unanimous votes to direct the Environmental Review Commission to study the impact of granting the request by Alcoa Power Generating, Inc. ("Alcoa") for renewal of a 50-year license to control the water and for a monopoly on the generation of hydroelectric power from the Yadkin River, also known as "the Yadkin Hydroelectric Project." The bill requires the Commission, consisting of members of the state legislature, to consider and develop proposals and include them in a report due Feb. 1, 2009. The options open for the Commission to study and recommend to the legislature include recapture of the license and restoring a natural resource of the state for hydroelectric power to benefitNorth Carolina citizens. The recapture option would not take private property away from Alcoa, as the company does not own the water from theYadkin and has only had a lease on its dam operations for the past 50 years. Additionally, under a formula set forth in federal law, the process would fairly compensate Alcoa equal to its net investment.

The Commission can also study and suggest conditions to be placed on a license if Alcoa receives its renewal. These conditions could range from ones protecting the environment to those impacting the economic well-being of the citizens inPiedmont North Carolina. Alcoa has made arrangements in other states such asNew York andWashington to provide jobs and clean up environmental contamination. This study by the Commission could result in similar benefits for North Carolinians.

The Commission can also look into state tax breaks that Alcoa received on the promise of maintaining jobs at the Badin Works inStanly County. Estimates are that Alcoa received $1 million per year in tax breaks on the electricity it generated while it was in the process of shutting down the Badin Works plant and eliminating all the jobs it vowed to maintain.

The study provides an opportunity for theState of North Carolina to weigh in before it gives away one of its most precious resources -- water -- to a multinational company that has shown no discernable benefit to the people of North Carolina.

The Environmental Review Commission will consider and develop proposals regarding all of the following issues:

1) Analysis of the socioeconomic impacts of Alcoa's decision to discontinue its job-producing manufacturing activities at itsBadin facility that relied on the use of low-cost Yadkin River hydroelectric power. In 1958 Alcoa received a 50-year license from the federal government on the basis that it could create and maintain almost 1,000 jobs at its smelting operations at the Badin Works, but now all of those jobs have disappeared as Alcoa has discontinued smelting atBadin.

2) Assurance of an adequate, clean future water supply for the region. A study conducted this year by John H. Rodgers, Jr., Ph.D., a renowned water quality expert with Clemson University inSouth Carolina, found that the available data clearly indicate thatBadin Lake, a 5,300-acre reservoir that empties into the Yadkin River through the Narrows Dam, and the area downstream have significant human, health and ecological problems that are and will continue to be affected by Alcoa's dam operations. The DENR is considering the report as part of its review of Alcoa's water quality certificate application.

3) The allocation of water for non-power uses from the Yadkin Hydroelectric Project. This includes such activities as water used for drinking and recreational purposes.

The Environmental Review Commission's composition is bipartisan and includes members from every region of the state. The Commission meets regularly between legislative sessions to study environmental issues and develop proposals for the General Assembly to consider. By directing the Commission to study the impacts of the Yadkin Hydroelectric Project, the General Assembly has sent a clear message that control of the public waters is an issue of paramount importance to the citizens ofNorth Carolina.

The study by the Environmental Review Commission will not prevent the Governor or any state agency or department from taking any action necessary to protect the interest of the state in the current relicensing procedure. The bill establishing the commission received unanimous votes on July 15 in the House Judiciary Committee by 15-0, on July 16 in the state House by 114-0 and on July 17 in the state Senate by 46-0.

The N.C. Water Rights Committee is a group of concerned citizens, business leaders, government officials and others who have joined together to make sure that the citizens ofNorth Carolina are properly informed about the critical issue of the public's water rights. They were among several groups who requested the state legislature to establish the commission due to concerns about several aspects of the Yadkin Hydroelectric Project previously mentioned. The committee also commissioned a recent poll that found that by at least a 2-to-1 margin, voters in every region ofNorth Carolina say the state should take time to study the renewal of Alcoa's license because this issue will affectNorth Carolina's economy, the environment, and access to water for the next 50 years.

    Related Links:
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Quotes:

"The focus of this study will be who should control the water," said Sen. Fletcher L. Hartsell, Jr. (R-Cabarrus). "The well-being of the people of North Carolina must be our paramount concern as we examine the impact of potentially granting a 50 year license. All of the state's options will be on the table."

"Much of the Yadkin River basin inNorth Carolina has suffered devastating job losses over the past 10 years, including the loss of nearly 1,000 high-paying jobs with the closure of Alcoa's aluminum smelter atBadin," said Rep. Kenneth R. Furr (R-Stanly). "The Yadkin River is an economic engine that should once again be harnessed to bring prosperity to the region."

"By studying this issue,North Carolina can make wise and prudent recommendations to FERC about the relicensing of the Yadkin Project hydropower dams," said Sen. William R. Purcell (D-Scotland).

"Our sole intention in suggesting the study was to make sure thatNorth Carolina was not giving away a precious resource for 50 years," said Senate Majority Leader Tony Rand (D-Cumberland). "Water and its use are vital to our entire state. We are pleased that the interests of our citizens can be protected through this study."

"On behalf of the N.C. Water Rights Committee, I sincerely thank all the members of the General Assembly who voted unanimously in favor of establishing this commission, as well as the support we have received from Gov. Mike Easley and Lt. Gov. Beverly Perdue on this matter," said Lindsey Dunevant,Stanly County Commissioner and North Carolina Water Rights Committee member. "We recognize that the Yadkin Hydroelectric Project has statewide implications for control the waters of our state, its economic viability and what is best for the environment."

About N.C. Water Rights Committee:

The N.C. Water Rights Committee is a coalition ofNorth Carolina businesses and concerned citizens who have joined this statewide effort to inform citizens of the critical issues and decisions concerning water rights that affect all North Carolinians now and for many decades to come. For more information, visit www.ncwaterrights.org.

    Patty Briguglio
    MMI Associates, Inc.
    (919) 233-6600
    patty@mmimarketing.com
    PR Firms Raleigh, NC

SOURCE N.C. Water Rights Committee

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