Friday, July 10, 2009
Citizens turn out in favor of legislation
Thursday, July 9, 2009 — More than 100 citizens from Anson, Montgomery, Stanly, Davidson and Rowan counties attended the hearing in support of the legislation. They wore stickers asking the committee to “Vote YES on SB 967.”
Sen. Fletcher L. Hartsell Jr. (R-Cabarrus), primary sponsor of SB 967, and Bruce Thompson, lobbyist for Stanly County, made a presentation in favor of the legislation.
Committee Chair Cullie Tarleton plans to conduct further hearings to address questions from committee members and allow members of the public to comment on the bill.
“Fifty years ago Alcoa received a no-bid contract to operate hydroelectric facilities on the Yadkin River for 50 years. That operating license was issued on behalf of the people of the Yadkin River basin and the State of North Carolina, and that license has expired. It has been so long that we have forgotten that Alcoa is our tenant, and the tenant would have us forget that we are the landlord,” said Sen. Hartsell.
“The lease is up, and it is time for the waters of the Yadkin to be returned to the benefit of the citizens.”
Refuting Alcoa’s contention that SB 967 is “about taking over a private business,” Sen. Hartsell pointed the committee to Alcoa’s relicensing application where it acknowledged the right of the federal government to have the license returned.
In that application, Alcoa correctly stated federal law in admitting that the re-purchase price is “net investment,” not to exceed “fair value” plus any “severance damages” suffered. Alcoa’s own application states that the re-purchase price is $24.16 million.
Sen. Hartsell also refuted Alcoa’s claims that it was too late for the federal government to exercise this recapture right, citing FERC’s recent order allowing Gov. Bev Perdue to intervene in the re-licensing case and ask for re-capture on behalf of the people of North Carolina.
Sen. Hartsell also pointed out the promise of creating 1,000 jobs was the reason Alcoa received its 50-year license to operate the hydro facilities in 1958. With the smeltering plant’s closing and the loss of 1,000 jobs, there is no public benefit for relicensing Alcoa.
Thompson spoke to the members about Alcoa’s poor stewardship of the precious water resources in the Yadkin and the reservoirs, saying that a N.C. Division of Public Health fish- tissue study at Badin Lake found elevated levels of PCBs in the fish.
To warn the public, DPH ordered a “Fish Consumption Advisory.”
However, Alcoa fought the warnings through a legal challenge. Thompson called this move “fundamentally irresponsible, especially in the light of the fact that our experts have traced those PCBs directly to the lake sediments adjacent to Alcoa’s operations.”
SB 967 will establish a Trust for the benefit of the entire estate that would develop, sell and distribute hydroelectricity generated by the Project for the benefit of the people of North Carolina, as well as maintain recreational facilities and ensure equitable distribution of water for public purposes at all times.
The Trust will honor aspects of the Relicensing Settlement Agreement (RSA) negotiated by local government and environmental groups in 2008, including water for the city of Albemarle, a comprehensive drought management plan, water quality improvements for the Yadkin, and new and expanded public recreation facilities.
It will provide more benefits to state residents than Alcoa’s plan, including priority consideration to local needs, with the intent of restoring and improving environmental, public health, economic and job considerations.
Gov. Perdue has intervened at FERC on behalf of the state. If approved and made into law, the Yadkin River Trust would provide FERC officials with the option of rejecting Alcoa’s application in favor of allowing the State of North Carolina to pursue ownership of the Yadkin Project through the federal government.
“On behalf of the Stanly County Board of Commissioners, we were glad to hear leaders in the legislature endorse the Yadkin River Trust for water access and water quality,” said Stanly County Commissioner Lindsey Dunevant.
“Their comments show that they get it. The Yadkin River is a public water resource that is being neglected by the Project’s current operator in favor of selfish interests rather than the betterment of our state ... and that this must change
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