9-29-2017 NCDEQ Direction on HB630

(� DUKE
ENERGY,
Paul Draovitch
senior vice -President
Envirunmental, Health & Satety
526 South church street
Mail Code ECUP
Charlotte, NL; 28202
980-373-0408
September 29, 2017
Ms. Shelia Holman
Assistant Secretary for Environment
North Carolina Department of Environmental Quality
1636 Mail Service Center
Raleigh, North Carolina 27699-1636
Subject- Requesting NCDEQ direction on unique issues related to fulfilling obligations
under HB630 regarding permanent water solutions
Dear Ms. Holman:
Over the past year, Duke Energy has worked diligently to fulfill the requirements of the North
Carolina Rouse Bill 630 (RB630), specifically the provision of a permanent water supply to
eligible neighbors near our coal ash facilities. As you know through a series of routine
updates provided to you, we continue to make strong progress, but a number of issues have
arisen that are proving to be beyond the company's control. Since the law is silent on how to
address these unique matters, we request interpretation and guidance from the Department
of Environmental Quality ("NCDEQ" or "Department") as the implementing agency to provide
direction regarding the final resolution of these issues.
In this correspondence, we provide additional details regarding each identified issue and our
recommendation on how to address them. We respecttully request a meeting with you and
Secretary Regan to receive clear and detinitive direction on how to proceed. Duke Energy is
committed to completing these important projects as soon as possible_ Our goal is to
demonstrate that our ettorts have been more than sufficient and that our plans to proceed are
appropriate and in line with the intent of H13630. In addition, we welcome definitive guidance
from the NCDEQ on open issues, including the design of water treatment systems.
Homeowners who do not provide their permanent water solution choice to Duke Energy.
o Duke Energy previously recommended that homeowners who provided their
permanent water solution choice after April 1, 2018 would still receive a
solution, but the connection deadline of October 15, 2018 would not apply
since we need time to schedule and install the chosen solution. Duke Energy
also recommended that the October 15, 2018 deadline would not apply to
homeowners who:
■ Originally opted out but later changed their mind on their preferred
solution choice after April 1, 2018-
■ Changed their mind as to their solution choice before it was installed,
but after April 1, 2018.
o While updates on homeowner outreach has been provided to NCDEQ on April
21, 2017, August 22, 2017 and September 15, 2017, it should be noted that
Duke has attempted to send the 58 homeowners who have not provided a
selection five letters, two of which were attempted to be delivered three times
by USPS followed by 3 times by UPS. If they could not be delivered, they were

returned to Duke. We have also attempted to contact them via phone and by
hand delivering letters to their home and they were invited to attend the
community intormation sessions held in February 2017.
U Ot those homeowners who have not provided their solution selection as of the
date of this letter, 18 are currently receiving bottled water deliveries.
o The company renews the recommendations listed above and asks for
concurrence from the Department.
Homeowners and/or their tenants that will not allow Duke Energy access to the property
to install the permanent water solutions.
o Since June 2017, Duke Energy has strived to obtain access agreements trom
property owners. Duke Energy has contacted hurneowners by letter, by phone
(if a phone number was available), and has sent contractors out to homes to
remind them that an access agreement is necessary to move forward with the
installation of their chosen permanent water solution.
o There are still over 80 homeowners who have provided their solution selection
who have not agreed to provide Duke Energy access to their property. Ot
these 80 homeowners, more than 40 are currently receiving bottled water
deliveries.
U Duke Energy previously requested the Department's assistance in obtaining
access to properties.
U if the Department is not in a position to assist with property access, then
we recommend that property owners who have not agreed to provide
access by April 1, 2018 to be deemed as having opted out of a permanent
water solution. If they respond between April 1, 2o18 and the deadlines in
HB630, they may still receive their selected solution but the installation
deadline in HB630 would not apply. The Department's concurrence with
the recommendation is requested.
• Homeowners who do not set up an account with the local municipality to receive water.
o The property owner, tenant, or homeowner must set up an account with the
public water supplier (municipality or county) before the main can be tapped
and the meter box / meter can be set. After the meter box is set, Duke Energy
can install the water line between the home and the meter box.
u Duke Energy has contacted homeowners by letter, by phone (if a phone
number was available), and has sent representatives to homes to remind them
that they need to set up an account with the local municipality before the line
can be installed.
o As of the date of this letter, 132 households located on existing water mains
have not set up an account with the local municipality. Homeowners who are
located on new mains will be asked to set up accounts closer to the date of the
construction of the new mains.
o Duke Energy previously requested concurrence from N(;DEQ that if a
homeowner does not set up an account with the local municipality by April 1,
2018, the October 15, 2018 connection deadline does not apply.
u The company renews that recommendation and asks for written
concurrence from the Department that these residents be deemed to
have opted out of a solution. If they set up an account between April 1,
2018 and the deadline in HB630, they will still receive a solution but the
installation deadline in HB630 would not apply_

Homeowners do not grant easements for new water mains or service lines.
o For those locations requiring installation of new mains (Cliffside, Marshall,
Allen and Buck), the municipal water suppliers require easements in certain
areas. At Allen and Marshall, easement negotiations have commenced with
homeowners, but based upon initial conversations, some easements may be
difficult to procure. We have been told by the local municipalities and water
system operators that they typically obtain easements easily since
homeowners usually request that the new lines be installed, but this situation is
unique.
o Specifically at Allen, the local municipality has requested that Duke Energy
obtain all of the easements on its behalf since the City does not have the
available staff to manage the installation of the new water mains. Duke Energy
is managing the acquisition of easements on behalt of the City. However, we
are experiencing some challenges as Duke Energy itself does not have
condemnation rights for water mains. Catawba County has started their
easement acquisition process. Grassy Pond and Rowan County will be
commencing easement acquisition soon. If the municipalities do not have the
resources to obtain the easements, they have indicated they will contact Duke
Energy for assistance, similar to what is already in effect at Allen.
u In addition, for the mains, easements may be required for looping (connecting
one neighborhood to another) or the installation of the line connecting the
home to the main.
o The cwrnpany must receive easements by the following dates at each tacility to
facilitate commencement of construction as planned or it may impact meeting
the October 15, 2018 deadline:
■ Allen: November 1, 2011
■ Buck: January 1, 2017
■ Cliffside: January 8, 2018
■ Marshall: February 1, 2018
o If easements cannot be obtained by the dates above, it is Duke Energy's
recommendation that either the October 15, 2018 completion date be
extended for one year or that all downstream homeowners be offered a
water treatment system in lieu of a connection to a public water system.
We asks written concurrence from the Department.
In the Department's July 12, 2017 letter, two key provisions of the House Bill were quoted:
Nothing in this section shall be construed to (i) require an eligible household to connect to at
public water supply or receive a filtration system_ _ _ n
"The Department may grant an impoundment owner an extension of time, not to exceed one
year, to establish permanent water supplies as required by this section, it the Department
determines that it is inteasible for the impoundment owner to establish a permanent water
supply for a household by October 75, 2018, based on limitations arising from local
government resources, including limitations on water supply capacity and staffing limitations
for permitting and construction activities_ "
Duke Energy's position is that by not responding to the multiple requests for a selection,
homeowners are clearly indicating that they do not want a permanent water solution as set
forth under R13630. Continued attempts by Duke Energy to obtain this information has
annoyed and angered a number of homeowners, and we believe that we have provided
multiple opportunities for homeowners to participate in the program. Some homeowners have

also verbally conveyed that they believe their water is fine and have refused to provide us
with a selection card.
If homeowners do not allow access avid/ur do not set up a municipal account, they are
indicating that they do not want a permaiient water solution as set forth under HB63U.
We respectfully request that the Department agrees with the proposed April 1, 2018 deadline
for response, access, and setting up municipality accounts, as it relates to the October 15,
2018 compliance date for connection to homes. Duke Energy also requests that the
Department approves the step of assuming homeowners who have not provided a response
as of the date of this letter be considered as having opted out of a solution and that bottled
water deliveries those homeowners can be discontinued; it these homeowners contact Duke
Energy directly before April 1, 2018, a solution will be provided to meet the October 15, 2018
deadline.
There are other issues we would appreciate the opportunity to discuss related to the water
treatment system installations, specifically the revised Performance Monitoring Plan and the
requirements on lead and copper testing addressed in our August 7, 2017 letter to Mr.
Risgaard. We would also appreciate feedback on the Supplemental Potable Water
Programmatic Evaluation report submitted for Belews Creek, Roxboro, and Mayo, which was
submitted on August 31, 2017 and contained the additional evaluation requested by the
Department on alternative potable water sources for these communities; in a few cases
homeowners have indicated they will not provide a solution selection to us, or allow us on
their property, until a response has been received from the Department on the additional
evaluation document.
Mark McIntire looks forward to working with you to arrange a meeting on these important
issues. David Fountain, President of Duke Energy North Carolina, Mark and I look forward to
meeting you at your earliest convenience. We respectfully request Secretary Regan's
participation.
2Sincerel,
Paul Drauvitch
Senior Vice President
Environmental, Health & Safety
cc: Jay Zimmerman, NCDEQ
Debra Watts, NCDEQ
Eric Smith, NCDEQ
David Fountain, Duke Energy
Mark McIntire, Duke Energy