Response to 4.04.2018 Duke Energy Req for DEQ Direction

Environmental
Quality
May 8, 2018
Paul Draovitch
Senior Vice President
Environmental, Health & Safety
Duke Energy
526 South Church Street
Mail Code EC3XP
Charlotte, North Carolina 28202
ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
Subject: REF: Permanent Water Solutions, Update and NCDEQ Requested Direction
Dear Mr. Draovitch:
We appreciate Duke Energy's efforts to fulfill the North Carolina House Bill 630 (HB630)
requirements to provide alternate water to residents near the coal ash facilities. This letter provides
responses to questions raised in your April 4, 2018 letter with the above subject line.,
Allen:
Your letter seeks approval from NCDEQ that Duke Energy has met its obligation to an eligible
household demolished its home in March of 2017 by providing tap and paying tap fees since a
connection to the home is not possible at this time. Further, Duke Energy requests that this home will
not be subject to the October 15, 2018 compliance deadline under HB630. The Department agrees
that the deadline should not apply if the home is not rebuilt in time for Duke Energy to complete the
connection. However, the Department expects Duke Energy to complete the connection as
expeditiously as practicable once the home is in a state of readiness for the connection.
Asheville:
Duke Energy requests approval to provide treatment systems to two homes in Asheville since the
public water installation costs are estimated at $400,000. Assuming that these costs cannot be
aggregated with other water replacement costs in the same area, the Department believes that
providing water to the homes at $200,000 per household is not cost-effective. Therefore, Duke may
comply with HB 630 by providing treatment systems at these two homes.
Buck:
Duke Energy requests that for the Buck households only, the evidence of communication to determine
the non -responsive households be extended to June 29, 2018, due to a delay in the ability to set up
accounts. The Department hereby grants extension for evidence of communication until June 29, 2018
Nothing Compares
State of North Carolina I Environmental Quality
217 West Jones Street 1 1601 Mail Service Center I Raleigh. North Carolina 27699-1601
919 707 8600

for households surrounding the Buck Combined Cycle Station only. This extension does not relieve
Duke Energy of fulfilling the requirements of G.S. 130A-309.21 1 (cl) for supplying these homes with
permanent alternate water by the October 15, 2018 deadline.
HF Lee:
Duke Energy requests that the NCDEQ provide an extension of time for connecting the eligible
households severely damaged by Hurricane Matthew to public water service. The Department agrees
that these households should have additional time and will work with Duke Energy and the
homeowners to establish a reasonable schedule once the homeowners have decided what to do with
their homes.
Other Items Reouirinp- Guidance
Duke Energy requests approval that non -responsive households that complete the necessary actions
after May 1, 2018 will not be subject to the October 15, 2018 compliance deadline. The Department
agrees that households who have not responded to a permanent water solution choice, have not
provided an access agreement or have not established a municipal water account by May 1, 2018 are
not subject to the October 15, 2018 compliance deadline. However, if such households complete the
necessary actions after May 1, 2018, the Department expects Duke Energy to complete the
permanent water supply installation within three months of receiving the notification of the
completed action, unless a water main must be installed. If a water main installation is required to
complete the permanent water solution, the Department will determine an appropriate schedule on a
case -by -case basis.
Duke Energy is requesting confirmation that offices, businesses, schools and churches are not subject
to the October 15, 2018 compliance deadline under HB630 since they are not households. The
Department agrees that HB630 did not cover offices, businesses, schools or churches, and that Duke
Energy may elect to cover these entities located within the one-half mile radius of the compliance
boundary. Further, since the legislation did not cover these entities, the compliance deadline
therefore does not apply.
We appreciate your ongoing efforts to resolve these issues, and anticipate we will continue to discuss
similar issues in the near future.
cc: Bill Lane
Jay Zimmerman, DWR
Debra Watts, DWR/WQROS
WQROS Central File Copy
Sincerely,
Sheila Holman
Assistant Secretary for Environment
Nothing Compares_
State of North Carolina I Environmental Quality
217 West Jones Street 1 1601 Mail Service Center I Raleigh, North Carolina 276991601
919 707 8600