Permanent Alternate Water Response_20170712

Water Resources r
Environmental Quality
July 12, 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 Response
Dear Mr. Draovitch:
ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
S. JAY ZIMMERMAN
Director
The North Carolina Department of Environmental Quality (DEQ or Department) has received
numerous letters from Duke Energy requesting clarification related to the water supply
requirements of House Bill 630 (Coal Ash Management Act or CAMA), G.S. 130A-309.211(cl).
It is the intent of this letter to address the critical issues raised.
Decision-Makine Authority
Duke Energy's February 23, 2017, letter states, "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. "
DEO Response: It is DEQ's position that in House Bill 630, the decision -making authority lies
with any household that is connected to a well within the 'h mile radius from the established
compliance boundary. This is not necessarily the well owner, and may include households
connected to a shared private well, a community well, or a private well not on their property.
Required Actions: Based on DEQ's position above, Duke Energy shall reach out to any additional
households as defined above that are connected to a water supply well within the '/2 mile radius
from the established compliance boundary and offer them the choice of connection to a public
water supply, a filtration system, or to opt out as required by G.S. 130A-309.211(c1).
Vacant Properties
Duke Energy's February 23, 2017 letter identifies several different scenarios for a vacant property
to determine eligibility under House Bill 630.
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

1) `A parcel of land that has both a household on it and a well on it, but the household is
currently unoccupied. "
DEO Response: The household in this scenario would be eligible for an alternate water
supply under House Bill 630.
2) "A parcel of land that has a well on it and no household present on the parcel itself,
but (wherejthe well serves households on adjoining parcel of land (i.e. the Aqua
community supply system in Belmont). "
DEO Response: The households in this scenario would be eligible for an alternate
water supply under House Bill 630. DEQ has addressed the requirements for the Aqua
community wells in separate correspondence dated July 7, 2017.
3) `A parcel of land that has a well on it and no household present, and the well does not
service any households. "
DEO Response: Section 9 of House Bill 630 indicates that both a well and a household
must be in existence before July 1, 2016 to be eligible for an alternate water supply. If
the well does not service any household, then the well would not be eligible. However,
CAMA does not specify whether the "household" must be permanent, seasonal or
temporary. Therefore, a well used by a seasonal household, such as a mobile home or
recreational vehicle (RV), is eligible if it can be documented the well has been used on
a routine basis by a household before July 1, 2016.
Required Actions: Duke Energy shall verify their records to determine the status of eligibility for
any households fitting the criteria mentioned above.
Certification of CAMA Requirements
Duke Energy's February 23, 2017 letter requests acknowledgement from DEQ that they have met
the requirement under House Bill 630 that states, "...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... "
DEO Response: Although there is no requirement under House Bill 630 for DEQ to acknowledge
or approve Duke Energy's efforts to notify all eligible households, we acknowledge the spread
sheets provided as documentation for Duke Energy's good faith effort to accomplish this
requirement. DEQ's acknowledgement of the spreadsheet does not remove Duke Energy's
obligation to meet the requirements of House Bill 630 as outlined in this letter or in the letter dated
July 7, 2017, or in the event that additional households or wells are discovered that have not been
offered an alternative water supply.

Nonresuonsive Households
Nonresponsive households as addressed in the examples below include property access issues, and
household accounts with Duke Energy. Examples or summaries are taken from Duke Energy's
May 5, 2017 letter:
• `If a well owner does not make a selection by April 1, 2018, the solution will be installed
as expeditiously as possible, but it is Duke Energy's recommendation that the connection
deadline of October 15, 2018 does not apply for that property. "
• `If Duke Energy is unable to obtain access after multiple attempts, we request [DEQ s]
help in obtaining access. " And `If, even after requesting [DEQ s] help, access is still
denied, Duke Energy's recommendation is that the connection deadline of October 15,
2018 does not apply for that property. "
• `If homeowner does not set up an account by April 1, 2018, Duke Energy's
recommendation is that the October 15, 2018 connection date does not apply. "
DEO Response: DEQ is willing to provide assistance to Duke Energy in cases where access to
private property is an issue. If a household refuses access after all Duke Energy and DEQ actions
are exhausted, DEQ recommends that Duke Energy notify DEQ so decisions on future steps can
be made.
G.S. 130A-309.21l(cl) allows for an extension of the October 15, 2018 deadline provided it is
infeasible for Duke Energy to establish a permanent water supply. 130A-309.211(cl) states,
"...The Department may grant an impoundment owner an extension of time, not to exceed one
year, to establish permanent water supplies as required by this section, if the Department
determines that it is infeasible for the impoundment owner to establish a permanent water supply
for a household by October 15, 2018, based on limitations arising from local government
resources, including limitations on water supply capacity and staffing limitations for permitting
and construction activities... "
Required Actions: G.S. 130A-309.21 I (c 1) does not set time lines for residents to respond to Duke
Energy, therefore, DEQ does not support the assumption that non -responsive well owners are
"opting out of the offered options." If Duke Energy believes that they will not be able to meet the
October 15, 2018 deadline to establish permanent alternate water supplies, Duke Energy may
request an extension of the deadline not to exceed one year. DEQ is open to continuing discussion
on how non -responsive households should be treated considering the House Bill 630 deadline.
Households that Chance Responses
In the May 5, 2017 letter, Duke Energy provides three scenarios where the household has a change
of mind before a solution is installed, after a solution is installed, and going from no choice (opting
out) to making a choice. Duke Energy has adopted some business practices where they accept the
request, or in some cases, deny the request, and has asked for DEQ approval.

DEQ Res on nse: The Alternate Water Supply Plan was approved January 13, 2017 with the
condition that DEQ is notified with any necessary modifications. It is Duke Energy's
responsibility to implement the plan and to make necessary business decisions to assure that the
requirements of House Bill 630 are met. Once the minimum requirements are met, it will be up to
Duke Energy to determine if changes requested can be accommodated.
Required Actions: G.S. 130A-309.211(cl) requires that Duke Energy establish a permanent water
supply for each eligible household within the '/z mile radius from the established compliance
boundary. It further states "Nothing in this section shall be construed to (i) require an eligible
household to connect to a public water supply or receive a filtration system... " Since some of the
household decisions may affect the October 15, 2018 deadline, Duke Energy may request an
extension of the deadline not to exceed one year. It may be best to set up a meeting between Duke
Energy and DEQ to discuss how changes should be treated in light of the House Bill 630 deadline.
Connection to Public Water Suuuly at Belews Creek Steam Station, Mavo Steam Electric
Plant, and Roxboro Steam Electric Plant
It has come to the attention of DEQ that Duke Energy may not have explored all options related
to connection to public water supplies in the vicinity of the Roxboro and Mayo Steam Electric
Plant facilities. Connection to the South Boston (Virginia) Water Supply may be an option for
some water supply recipients around the Mayo Steam Electric Plant. Similarly, Old North State
Water Company, LLC may be an option for water supply recipients close to Roxboro Steam
Electric Plant.
Households in the vicinity of Belews Creek Steam Station, Mayo Steam Electric Plant, and
Roxboro Steam Electric Plant, were offered two choices: filtration systems or opt out. Per G.S.
130A-309.211(cl). "...Preference shall be given to permanent replacement water supplies by
connection to public water supplies; provided that (i) a household may elect to receive a f Itration
system in lieu of a connection to public water supplies... "
DEO Response: Although DEQ conditionally approved Duke Energy's proposed Plans, DEQ has
not specifically authorized the provision of replacement water supply through a filtration system
for the sites listed above. Condition 7 of DEQ's January 13, 2017 "Approval of Water Supply
Plans" letter states,
"...As stated in the letter dated September 22, 2016, from DEQ to Duke Energy, DEQ
agreed that the threshold for cost prohibition was an acceptable planning value for
purposes of the initial proposed plan. However, based on site -specific factors and
conditions, any determination as to whether connection to a public water supply for a
particular household would be cost prohibitive is subject to change. "
Required Actions: Duke Energy shall research all public water supply options (including
connection to the South Boston Water Supply and Old North State Water Company, LLC) and
determine if there are feasible water supply alternatives. If necessary, Duke Energy shall re -notify
the eligible households around Belews Creek Steam Station, Mayo Steam Electric Plant, and
Roxboro Steam Electric Plant regarding all available options. If connection to any public water

supply system is not feasible due to limitations to provide safe drinking water (i.e. length of line,
stagnation, disinfection byproducts, or cost effectiveness), Duke Energy shall notify DEQ. For
each site, Duke shall provide to DEQ a summary of the findings, a cost analysis that supports the
decision, and any updates to the water supply plans for these facilities.
Modification of Permanent Alternate Water Supply Plans
Duke Energy's March 29, 2017 letter informed DEQ of changes to the plans at the James E. Rogers
Energy Complex and the L. V. Sutton Energy Complex.
DEQ Response: DEQ has reviewed and approved the proposed changes.
Duke Energy's April 27, 2017 letter proposed modifications to the Plans at the Belews Creek
Steam Station, Mayo Steam Electric Plant, and Roxboro Steam Electric Plant.
"The original plan indicated one filtration system per household. Based upon information
received during the community information sessions and by our water filtration vendors,
in some cases one water treatment system connected to one well can provide filtration to
multiple homes in a more efficient manner. Duke Energy is requesting approval that, if it
provides an operational benefit, one water treatment system be installed for multiple homes
on the same parcel. "
DEO Response: DEQ provisionally approves the modification to each of the above plans under
the condition that each household served by the well agrees to the installation of the
filter. Please note that connection of 15 or more homes to a well would trigger designation as a
new community water system.
Public Water Supply Installation based on Percentages of Household Selections
At the James E. Rogers Energy Complex, Allen Steam Station, Buck Combined Cycle Station,
and the Marshall Steam Station, there are several instances where Duke Energy's proposed
installation of a public water supply would depend on a certain percentage of households to elect
the public water supply option.
DEQ ReMonse: According toG.S.130A-309.21l(cl)...... Preference shall begiven topermanent
replacement water supplies by connection to public water supplies; provided that (i) a household
may elect to receive a f ltration system in lieu of a connection to public water supplies and (ii) if
the Department determines that connection to a public water supply to a particular household
would be cost prohibitive, the Department shall authorize provision of a permanent replacement
water supply to that household through installation of a filtration system... " Therefore, if Duke
Energy has recommended a connection to a public water supply, but due to responses, Duke
Energy determines that connection to a public water supply is cost -prohibitive or cannot be
installed due to other technical reasons, Duke Energy shall submit their recommended plan to DEQ
for review and approval prior to implementation.

Required Action: For modifications due to low household response, Duke Energy shall include a
summary of the recommended percentages of households needed to achieve the cost-effective
threshold, the number of households responding and their choices, and an economic analysis of
the cost per household to install a public water supply versus installation of a water filtration
system.
For each plan that is affected by the guidance provided in this letter, Duke Energy shall submit a
revised plan for review and approval by DEQ.
If you have any questions regarding any information provided, please feel free to contact Debra
Watts at 919-807-6338.
Sincerely, tl
J n Risga d, Chief
Water Quality Regional Operations Section
Division of Water Resources
cc: WQROS Regional Office Supervisors
WQROS Central File Copy