20051457 Ver 1_FW Reservoir Permitting 1.msg_20110218

Strickland, Bev
From: Reeder, Tom [ /o= NCMAIL /ou= Exchange Administrative Group
(FYDIBOHF23SPDLT) /cn= Recipients /cn= tom.reeder]
Sent: Friday, February 18, 2011 12:19 PM
To: Fransen, Tom; Peele, Linwood; Nat Wilson (nat.wilson @ncdenr.gov); Reed, Steven; Mead, Jim
aim. mead @ncdenr.gov); Rayno, Don (don.rayno @ncdenr.gov); England, Darren; Young, Sarah
(sarah.young @ncdenr.gov)
Subject: FW: Reservoir Permitting
Tom Reeder
Director, NC Division of Water Resources
Phone: [phone]
e -mail: tom.reeder(a-)ncdenr.gov
E-mail correspondence to and from this address may be subject to the North Carolina Public Records Law and
may be disclosed to third parties.
From: Rep. Paul Stam [mailto:Paul.Stam @ncleg.net]
Sent: Thursday, February 17, 20119:02 PM
To: Smith, Robin; Keith Weatherly (House Majority Leader's Office)
Cc: Jeffrey Hudson (Research); Barsness, Kari K; Reeder, Tom; Sullins, Coleen; Rep. Chuck McGrady
Subject: RE: Reservoir Permitting
Ms Smith these ideas are all to the good. Can we come up with some reasonable deadlines on agency reviews and
action in order to shorten the 10 year period a tad or two. Rep McGrady will be working with me on this so please
copy him on future thoughts rep Stam
From: Smith, Robin [ mailto :robin.w.smith @ncdenr.gov]
Sent: Thursday, February 17, 20115:45 PM
To: Rep. Paul Stam; Keith Weatherly (House Majority Leader's Office)
Cc: Jeffrey Hudson (Research); Barsness, Kari K; Reeder, Tom; Sullins, Coleen
Subject: Reservoir Permitting
Rep. Stam,
To follow up on our earlier meeting concerning reservoir permitting, I have attached some ideas in a working draft. We
have started from the assumption that the basic question is how to meet a water supply need; a reservoir is one
alternative, but both state and federal law will require consideration of other alternatives that can meet the need with
as little environmental impacts as possible.
After looking back at other permitting experiences and talking to City of Raleigh staff, I worked with our Division of
Water Resources and Division of Water Quality directors to come up with some ideas for making the state - federal
permitting process work better. We concluded that there are two things that could make permitting of reservoirs and
other water supply projects go more smoothly:

1. Early agreement between DENR and the local government(s) on the most practical alternative for meeting the
water supply need that also has the least environmental impact.
Both state and federal water quality programs require selection of the alternative that can achieve the
intended purpose -- some identified water supply need –with the least impact on waters and wetlands. The
Corps of Engineers cannot issue the necessary Section 404 permit under the Clean Water Act unless the local
government has met that test. A similar alternatives analysis is necessary to get a state Water Quality
Certification. A number of reservoir projects have either failed or been significantly delayed by difficulty making
the case that a reservoir is the least environmentally damaging practical alternative to meet the water supply
need. For example, the Corps of Engineers has already told Cleveland County that the Corps will not issue a
reservoir permit to the County because the County can get the water it needs by purchasing from another
water system. There is no way to expedite the permitting of a reservoir that cannot get over that hurdle. What
we propose is to create an opportunity for consultation with the state agencies early – before starting into the
federal permitting process —to try to get consensus between state and local government on the selection of an
alternative that can be permitted. That may be a reservoir or it may be something else.
In any case, the State would contribute its expertise and technical assistance to the local government in doing
the alternatives analysis. And if the local government decides to move forward with the water supply approach
that the State agrees is the least environmentally damaging practical alternative, then that alternatives analysis
would satisfy requirements for other state permit reviews and put the State in a position to support the local
government in seeking a federal permit.
2. Developing the plan of study for the federal EIS.
Again, if the local government and the State can agree on the water supply alternative to take into the federal
process the State can be a partner with the local government in developing the plan of study and even –by
agreement – undertaking some of the necessary technical work for the federal EIS. Now, the local government's
consultants are negotiating with a group of both state and federal agencies on what types of studies are
needed for the EIS and for state /federal permit reviews. And the local government has the entire burden of
figuring out how to satisfy all of those information requests.
There is also a section that would authorize regional water supply management organizations. I confess that I was
starting to run out of steam here, but the idea is to allow for a regional structure short of a water authority that would
provide a forum for water systems to work out partnering arrangements and resolve conflicts so that the most efficient
use can be made of the available regional water resources. Basically, we are trying to find a way to give local
governments like Cleveland County greater security in accepting a water supply solution other than a reservoir.
This represents some brainstorming within a small group of people in DENR. The intent is to respond to your request for
ideas; I cannot say that we have vetted this sufficiently for it to be characterized as a DENR proposal but we are certainly
comfortable with it as a starting point. I have not sent the draft to City of Raleigh staff; from recent conversations it
sounds like they may be able to comment on an introduced bill, but are not authorized to work on the draft. As a result,
I cannot represent this as something that they would support although I think it gets at some of the most fundamental
issues in permitting large water resource projects. It also creates a path toward a stronger state -local partnership in
taking a proposal into the federal permitting process.
Let me know if we can answer any questions.
Robin
Robin W. Smith

Asst. Secretary for Environment
N.C. Dept. of Environment & Natural Resources
512 N. Salisbury Street
Raleigh N.C. 27604
(919) 715 -4141
E -mail correspondence to and from this address may be subject to the North Carolina Public Records Law and may be
disclosed to third parties.