DEQ-CFW_00084356

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Subject: Fwd: NC Policy Watch: Web of local money, political connections behind legislature's decision to bypass DEOin GenX
dean -up
From: "Duckvvorth,Eliza"
Date: September 1J, 2017at3:3653 PM EDT
Subject: NC Policy Watch: Web oflocal money, political connections behind legislature's decision tm
bypass DEQinGenXclean-up
Web of local money, political connections be
The fire is elusive, but the smoke is thick.
An analysis of professional and political relationships among major players in the GenX crisis shows the
connections that led to a controversial state appropriation made by state lawmakers during the most
recent special legislative session in House Bill 56, and a contract between the Cape Fear utility and a
public relations firm.
It's not unusual for state lawmakers to have deep political connections to major donors and operatives
in their districts. But these connections could wind up diverting badly needed money away from an
underfunded state agency to a public utility beset by scandal.
House Bill 56 has several contentious provisions, among them, the puzzling last-minute giftof$1O5,000
from conservative lawmakers to the Cape Fear Public Utility Authority (CFPUA). The utility knew about
the GenX contamination at its Sweeney drinking water plant in May 2016, according to a timeline it
provided, but did not alert state environmental authorities.
That amount and another $250,000 for UNC Wilmington would ostensibly be used to address short-term
threats to the drinking water downstream of the Chemours plant in Fayetteville.
Sen. Mike Lee, aRepublican from New Hanover County, appears to be the mastermind behind the
money. He pressed his fellow lawmakers on the idea of an appropriation before the Environmental
Review Commission last month. His Republican New Hanover County colleague, Rep. Holly Grange, also
supported the funding.
Lee apparently did not share his idea with his Democratic counterparts, including Rep. Deb Butler,
whose district is bisected by the [ape Fear River. She said she was "surprised" by Lee's presentation at

the ERC meeting. And Democrats in the House Rules Committee were equally surprised when presented
with anamended version ofthe bill that contained the appropriation.
Lee based his $43SUOOidea onaconversation hehad with the utility, said [FPUAboard chairman Mike
Brown.
Brown said the utility had first contacted UNCVVi|min8ton researchers for information. Larry Cahoon, a
UNCW scientist who has spoken publicly about the threats presented by GenX and other perfluorinated
chemicals, confirmed with Policy Watch that the utility contacted the university for its expertise. He said
hedoes not know how the quarter -million dollar figure came about.
Brown told Policy Watch that Lee then requested a meeting several weeks ago with utility Executive
Director Jim Flechtner "to get a better understanding of the partnership we were pursuing with UNCW."
Flechtner also shared other information with Lee about how the utility was to remove or reduce
perUuorinatedcompoundsfnzmthedrinkinBm/ater."|be|ieve8enatorLeew/asimpressedandthou8ht
what we were doing had merit," Brown said.
Brown said that after the meeting, Lee "asked about what our anticipated costs were and offered to
help. | think this was the genesis for the funding that he requested."
Over several election cycles, Lee has received substantial campaign contributions from several people
who have connections tuthe utility board. This includes:
<!—[if!supportLists]—>x!—[endif] —>Approximate|y$S,7OOfrom Woody White, aNew Hanover
County Commissioner, former state senator and congressional candidate, and utility board
member from Z013-Z016.
<!—[if!supportLists]—><!—[endif] —>Another$3,OOUcame from Corning, the glass and optics
manufacturer (formerly known as Dow Corning). The company has a Wilmington facility; the
board secretary, Jennifer Adams, is the head of facilities and maintenance.
<!—[if !supportLists]—><!—[endif]—>And real estate developer Brian Eckel, who works with board
chairman Mike Brown, has kicked inanother $4,75U.
Lee told Policy Watch that campaign contributions had no bearing on his decision to recommend
funding for the utility and UNCW. "My policy decisions are driven only by what I believe is bestfor my
constituents — in this case, ensuring our local authorities have the tools they need to remove GenX from
our drinking water," he said. "My conversations regarding local funding were with Jim F|echtnerand
several professors at UNCVVand focused on how vve could help them address the problem a short-term
basis rather than waiting for a drawn -out response from DECL"
Acontract for damage control
Brown works atCape Fear Commercial, a real estate development company, with Brian Eckel. Eckel is
Lee campaign contributor and brother to Albert Eckel of Raleigh -based strategic communications firm
Eckel Q'Vaughan.
|nJune the utility board awarded acontract -- originally worth $J5,0UO but then amended to$6lOOO
— to Eckel & Vaughan to do public relations damage control over GenX contamination in Wilmington's
drinking water. The utility's reasoning was that it did not have an internal communications manager to
handle the inquiries. (The utility does have a chief communications officer: Peg Hall -Williams.)
Albert Eckel, the firm's co-founder, said the contract was negotiated and approved by utility Executive
Director Flechtner. The board unanimously approved the one-year agreement.

AWilmington native, Eckel told Policy Watch that the fact his brother, Brian, works with utility authority
board chairman Mike Brown, "never had any bearing on our relationship" with the utility.
Brown said the board solicited two proposals and hired Eckel Q'Vaughan "based ontheir own merits,
not based on any relationships. They also provided the most competitive terms versus the other
proposal vvereceived."
Eckel's firm is skilled at crisis management, in part because he has had professional experience with
polluting industries and companies. According tothe Onm'sxvebsite Ecke|'sclient list has included the
American Chemistry Council. An industry trade group, the council includes among its members both
DuPont and its spinoff, Chemours, the very companies responsible for the GenX contamination.
He told Policy Watch that the relationship with the American Chemistry Council ended more than seven
years ago. "Eckel and Vaughan has no relationship at the ACC now and does not have relationships with
DuPont or[hemouns,"hesaid.
Eckel's firm has also done promotional work for the NC Pork Council, the American Petroleum Council in
the lead up to the 2012 North Carolina elections — the same year that fracking was a major issue in the
state — as well as re -branding for the poultry producer House of Raeford after its plant fire in Wallace.
Eckel previously worked for Corning, and according to Secretary ofState records, is a registered lobbyist
for the company in North Carolina. Over the past 20 years, Corning and its affiliates have been penalized
in other parts of the U.S. by the Environmental Protection Agency for violations of the Clean Air Act and
the Pesticide Export Act, and has contaminated soil at one of its New York facilities.
Under the contract, Ecke|&Vau8hanarechargedw/ithsevera|tasks,indudin8"messa8edeve|opment,
message training and social media monitoring."
"We are proud of the authority's efforts to increase transparency with the public and pressure
Chemours to stop releasing unregulated compounds into the river," Eckel said, adding that the firm
deserves some credit for the company's decision. "We believe these efforts, when combined with those
of local and state regulators and elected officials, have led [hemoursto stop all discharges into the
river."
House Bill 56, in the balance
Gov. Cooper has until September 30 to veto the measure, allow it to become law without his signature
orsign it.
Environmental advocates are urging Cooper toveto thebiU—both because ufthe controversial
appropriation and other provisions, including language repealing an eight year -old ban plastic shopping
bags onthe Outer Banks.
But the appropriation further soured the North Carolina League of Conservation Voters on the bill.
"These same lawmakers who are bellyaching about GenX contamination and attempting to pin the
blame on Governor Cooper's administration have voted consistently against stronger water protections
and for a budget that cut $1.8 million from DEQ in the current biennium, essentially handcuffing the
very experts hived to keep North Carolinians safe from contaminants like GenX," said Katie Todd of
N[L[V.
Atthe recent ERCmeeting, many Wilmington residents pleaded with lawmakers not tofund the utility

Brown said the utility is not trying to deflect accountability, but that the "data we had in May 2016 was
not in the context that it is now."
"What we knew in May JOl6was that there was an unregulated compound in the river," Brown said.
"We did not know anything about its health effects."
(DEQ received similar information in November 2016, and also did nothing substantive until June 2017,
when the Star -News of Wilmington first reported the story. The agency also seemed to not know what
they had.)
Brown said he does not view the appropriation as a substitute for Gov.Cooper's $2.58 million requestfor
the NC Department of Environmental Quality and the NC Department of Health and Human Services.
Those recurring funds would pay for additional monitoring, permitting and toxicology staff at those
finandaUydep|eteda8endes."|thaua|woysbeenmypouidonandtheposhiunof[FPU/,thatw/eneeda
functioning and efficient DEQ. They are acritical leg ofthe stool and w/eneed them tobeproperly
funded tofulfill their oversight and re8u|atoryro|e."
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