State Takeover Attempt is Still Alive

Well, I was wrong again. The effort by some to have the state take over the Yadkin Hydroelectric project is alive and well. In fact, they say that the formation of the Uwharrie Resources Commission (House Bill 972) is exactly what they wanted. I really don't see how an advisory commission formed by a bill that makes no mention of a Yadkin River Trust or taking over the river can be that useful. But they feel that it lends legitimacy to their effort and can be used as a vehicle to continue the fight.

I attended an informational meeting on July 29 at the home of Davidson County Commissioner Cathy Dunn. Turns out it was sponsored by the Yadkin River Alliance, a group formed to fight the Alcoa relicensing and support the state takeover. And the meeting was decidedly anti-Alcoa.

The agenda included remarks by Davidson County Commissioners Cathy Dunn and Max Walser, Chuck Melton (who formed the Yadkin River Alliance), State Senator Fletcher Hartsell (Cabarrus County - who introduced the several state takeover bills), State Senator Stan Bingham (Davidson County), Dean Naujoks (Yadkin Riverkeeper), and Keith Crisco (NC State Secretary of Commerce). A Q&A session followed.

About 90% of the remarks were attacks on Alcoa for polluting the river and the land around the now-defunct Badin Works aluminum smelting plant. A few addressed the economic value of the water that Alcoa uses for free to generate hefty profits.

In the Q&A session I asked why the state didn't just tax the water that was used to generate the power since it appeared that the real issue was economic. The answer (from Fletcher Hartsell) was that they had made some attempt to do that but ran into some issues and would revisit that option if the takeover failed.

In response to another question later on, Secretary Keith Crisco stated that the pollution question was a side issue and that the real issue was the economic value of the project.

Another interesting (and disturbing) answer by Secretary Crisco was that the pollution would be cleaned up whether the state took over the project or not. But if the state took it over they would use some of the revenue from the project to speed up the cleanup process. This is disturbing because it appears that the state will be assuming the liability for cleaning up the Alcoa pollution -- not a good thing.

So, there you have it. It's not over, but I believe the state takeover is a very, very long shot. Plan B is to tax the water that Alcoa uses. In my opinion (I have been wrong before), the FERC will issue the new license to Alcoa -- possibly 30 years instead of 50 -- after the 401 water quality certificate issue is resolved. Trial date for that issue is set for September.

................................Garry

State Legislature Votes to Create The Uwharrie Regional Resources Commission

Yes, something has happened with the State takeover of the Yadkin River dams currently managed by ALCOA. But it isn't what the takeover proponents wanted. The Legislature voted down a bill (both last Fall and again earlier this month) to create the Yadkin River Trust meant to take over and manage the Yadkin River dams.

In its place, the Legislature passed House Bill 972, an act to create The Uwharrie Regional Resources Commission -- "to foster economic development and protect and enhance the natural resources of that region." The commission will consist of ten members and will "Provide guidance and make recommendations...." There is no mention of taking over and managing the Yadkin River dams; it explicitly states "The role of the Commission is advisory in nature, and in no way shall the Commission be construed to have regulatory authority."

So it now appears that the quest to stop the ALCOA relicensing by Stanly County and the State has run into a dead end. The only thing preventing the FERC from granting the new license to ALCOA is the Stay on the water quality certificate that was issued by the State. And the FERC says (in a letter to Representative Larry Kissell on May 7) "Once the stay is lifted, the Commission will be ready to take action on the [ALCOA] relicense application....."

Now, what's holding up the water quality certificate?

...............Garry