DEQ 02-23-17 JZimmerman

�> DUKE
ENERGY.
Paul Draovitch
Senior Vice -President
Environmental, Health & Safety
526 South Church Street
Mail Code ECUP
Charlotte, NC 28202
704-373-0408
February 23, 2017
Mr. Jay Zimmerman
North Carolina Department of Environmental Quality
Division of Water Resources
1611 Mail Service Center
Raleigh, North Carolina 27699-1611
Subject: Response to February 15, 2017 letter and February 21, 2017 phone call
Dear Mr. Zimmerman:
Duke Energy appreciates NC DEQ's responses to the questions Duke Energy posed on
January 20, 2017 and your willingness to discuss these items with me in further detail on
February 21, 2017. To ensure that Duke Energy understands NC DEQ's interpretation of the
alternative water supply provisions of House Bill 630, we request clarification on a few
additional items.
1. The proposed plans submitted in December 2016 stated "well owners will be making
decisions for their plans." Also, in an email from Ms. Debra Watts to a homeowner within the
1/2 mile boundary on January 26, 2017, NC DEQ stated "...the General Statute that we are
following directs Duke to notify each well owner to let them know that they are proposing as
an alternative water supply. It also stated that 'Nothing in [the statute] shall be construed to (i)
require an eligible household to connect to a public water supply or receive a filtration
system...' The Department has interpreted this to say that the well owner has a choice of
what they receive."
Duke Energy has received numerous questions from homeowners who receive their water
from a well not owned by them (i.e., they receive their water from a neighbor's well or from a
community well system, such as the Aqua system in Belmont). The aforementioned email
from Ms. Watts, which was in response to a concern raised from an Aqua customer, also
stated "Since Aqua is the well owner and will make the final decision, I would recommend that
you contact them to let them know of your desires."
Duke Energy requests confirmation of NC DEQ's interpretation that House Bill 630 vests well
owners with the decision -making authority as to the permanent water supply option selected,
and that as a result the well -owner's decision applies to any household that utilizes such
well(s) as a drinking water source.
2. In NC DEQ's February 15 letter, it states: "...if a property is vacant (i.e. no one is currently
living there) but they have a well on the property when the act became effective, they are
eligible for an alternate water supply."
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There are different types of "vacant" properties. "Vacant" can mean:
a) A parcel of land that has both a household on it and a well on it, but the household is
currently unoccupied;
b) A parcel of land that has a well on it and no household present on the parcel itself,
but were the well serves households on an adjoining parcel of land (i.e., the Aqua
community supply system in Belmont);
c) A parcel of land that has a well on it and no household present, and the well does not
service any households.
Duke Energy agrees that scenario (a) is covered by House Bill 630. Arguably scenario (b) is
not covered by House Bill 630 because the legislation states a preference for "connection to
public water supplies" and households served by Aqua are already connected to a public
water supply subject to state and federal regulation. However, Duke Energy has included the
Aqua households served by groundwater wells within the half -mile in its permanent water
supply plans in order to provide peace of mind to these plant neighbors. The reason we
posed the question in our January 20, 2017 letter was to ask for clarification regarding
scenario (c). The definition of "household" is "those who dwell under the same roof and
compose a family" or "a social unit composed of those living together in the same
dwelling." Therefore, where it states in House Bill 630, Section 9: "Requirements for
establishment of a permanent alternate water supply under GS 130A-309.21 1 (0), as enacted
by Section 1 of this act, shall apply only to households with drinking water supply wells in
existence on the date this act becomes effective," it is clear to Duke Energy that only
households are covered, not vacant lots with wells located on them, because the vacant lots
do not have a household on them. We would like NC DEQ's confirmation of this
interpretation.
3.One of the requirements in House Bill 630 is: "No later than April 15, 2017, an
impoundment owner shall notify all residents identified in the approved plan of their eligibility
for establishment of a permanent water supply." Duke Energy has notified all residents
identified in the approved plans through our December 2016 mailing, January 2017 mailing,
and through the February 2017 community information sessions. Duke Energy requests
acknowledgement from NC DEQ that the company has met this requirement of the house bill.
Of course, if additional households are identified as being covered by House Bill 630 in the
future, we will communicate eligibility with them at that time.
4. Although we understand NC DEQ's position that non -responsive well owners are not opting
out of the offered options, Duke Energy does want to ensure that it can move forward with
providing households with their permanent solution in a timely manner, and in such a way that
will meet the completion dates in House Bill 630. Non -responsive homeowners may also
affect the cost-effectiveness evaluation for new municipal lines. We have requested that
homeowners provide their selections by March 15, 2017. After that date, Duke Energy will
provide NC DEG} an update on the selections, including the number of households that have
been non -responsive. We took forward to having a discussion with you at that time on how
non -responsive households should be treated in light of the October 15, 2018 completion date
in the house bill.
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We look forward to your respond and if you have comments and/or questions, please direct
them to me at 704-373-0408.
Sincere ,
r
Pa I Draovitch
Senior Vice -President
Environmental, Health & Safety
cc: Michael Regan — Secretary, NC DEQ
Sheila Holman — Assistant Secretary, NC DEQ
Jessica Bednarcik — Duke Energy, EHS
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