Ltr to P. Draovitch re Permanent Alt Water Supply Plan at Allen_20170707

Water Resources
Environmental Quality
July 7, 2017
Paul Draovitch
Senior Vice President
Environmental, Health & Safety
Duke Energy
526 South Church Street
Mail Code EC3XP
Charlotte, North Carolina 28202
Subject: Permanent Alternate Water Supply Plan at Allen Steam Station
Dear Mr. Draovitch:
ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
S. JAY ZIMMERMAN
Director
In this letter, the North Carolina Department of Environmental Quality (DEQ) is providing further
clarification on the provision of alternative water supplies to eligible households near the Allen
Steam Station (Allen) in Belmont, North Carolina. Based upon our review of House Bill 630 (the
Coal Ash Management Act or CAMA), DEQ has made the following determinations:
• Any household served by an Aqua community well located within the 1/2 mile radius of the
established compliance boundary associated with a coal combustion residuals
impoundment at Allen is eligible for a permanent replacement water supply, even if the
household is located outside the lh mile radius. For purposes of this letter, these households
shall be referred to as "Aqua eligible households."
• In G.S. 130A-309.21(c l ), CAMA establishes a preference for permanent replacement
water supplies by connection to a public water supply. However, CAMA provides that
each eligible household may elect to receive a filtration system in lieu of a connection to
public water supplies. CAMA further provides that an eligible household is not required
to connect to a replacement public water supply or receive a treatment system.
• It is our understanding that many of the Aqua eligible households have stated their
preference for connection to a replacement public water supply. However, to the extent
that you have not already done so, Duke Energy shall contact each of the Aqua eligible
households to determine their preference for a replacement water supply under CAMA.
• If the total number of Aqua eligible households that elect to connect to a replacement public
water supply, opt out of a replacement water supply or treatment system, or do not respond
to your survey is 50% or more, then for each Aqua eligible household, Duke Energy shall
either provide water from a replacement public water supply (such as the City of Belmont)
through an interconnection with the existing Aqua distribution system or by establishing a
State of North Carolina I Environmental Quality I Division of Water Resources
Water Quality Regional Operations Section
1636 Mail Service Center I Raleigh, North Carolina 27699-1636
919-707-9129

new service line from the replacement public water supply to each Aqua eligible
household.
• If more than 50% of the Aqua eligible households elect to receive a treatment system, then
Duke shall provide either an individual treatment system for each Aqua eligible household
or a treatment system for each of the Aqua community wells within the 1/2 mile radius. In
either case, the treatment systems shall meet the performance standards established by
DEQ.
Regarding the location of the compliance boundary at Allen, DEQ is advising Duke Energy that:
• With respect to the Inactive Ash Basin, it is DEQ's understanding that the Inactive Ash
Basin became inactive in 1973. Consequently, pursuant to 15A NCAC 2L (2L Rules) and
G.S. 143-215.1, the Inactive Ash Basin at Allen does not have a compliance boundary.
• With respect to Lake Wylie, it is DEQ's understanding that, pursuant to the 2L Rules and
G.S 143-215.1, if a coal ash facility has a property boundary — including an internal
property boundary — that is less than 500 feet from the waste boundary, the compliance
boundary coincides with the .property boundary nearest the waste boundary unless the
adjacent parcels on both sides of the property boundary are under common ownership and
individually permitted for use as a disposal system pursuant to G.S. 143-215.1 or G.S.
Chapter 130A.
• Moving forward, the compliance boundary, if any, associated with non -impoundment coal
ash storage areas will not be documented in NPDES permits, though DEQ understands
that a compliance boundary may exist under a separate permitting program.
Based on the guidance provided in this letter, Duke Energy shall adjust its replacement water
supply plan for Allen accordingly and submit it to DEQ for final approval. In addition, within
fourteen days of the date of this letter, please submit a detailed map showing the waste boundary
for the active ash basin at Allen. Compliance boundaries and any other waste boundaries should
not be included on the map. The revised water supply plan and waste boundary map should be
submitted to:
NC Dept. of Environmental Quality
Division of Water Resources
ATTN: Jay Zimmerman
1617 Mail Service Center
Raleigh, NC 27699-1617
If you have questions regarding any information provided, please feel free to contact Debra Watts
at 919-807-6338.
Sincerely,
S. mmerman, P.G., Director
Division of Water Resources
cc: Debra Watts, DWR