Senate bill proposes closure of all N.C. coal ash ponds

Press Release

From President Pro Tempore Office, Senator Phil Berger:

Raleigh, N.C. – Building on the foundation proposed by Gov. Pat McCrory, Senate Rules Committee Chairman Tom Apodaca (R-Henderson) and Senate Leader Phil Berger (R-Rockingham) on Monday introduced a comprehensive and aggressive plan for coal ash mitigation that would give North Carolina the strictest regulations on coal ash in the country and make it the first state to force the closure of all coal ash ponds.

“Addressing the environmental, regulatory and consumer protection concerns caused by North Carolina’s coal ash ponds is one of the Senate’s top priorities – and that’s why it was the focus of the very first bill we filed this short session,” said Apodaca. “This is a long-standing problem that started three quarters of a century ago, and I’m pleased to be a part of the first General Assembly to take it seriously.”

The proposed committee substitute to Senate Bill 729 sets a firm 15-year timetable for dewatering and closing all unlined coal ash ponds in North Carolina and eliminates the practice of wet ash disposal. The plan requires the Dan River, Asheville, Riverbend and Sutton coal ash ponds to be excavated and closed as quickly as practicable – and no later than 2019.

The remaining ponds will be classified into three categories of risk. Sites determined to be high-risk must be closed within five years (by no later than 2019), intermediate-risk sites by no later than 2024 and low-risk sites by no later than 2029. High and intermediate-risk ponds may not be capped in place – instead, coal ash from those facilities must be stored in lined landfills or recycled toward a beneficial use such as concrete production or roadway construction. And low-risk ponds can only be capped in place if both DENR and an independent coal ash commission agree and if strict closure and long-term monitoring requirements are met.

In addition, the bill mandates that all future coal ash disposal must be managed in new or existing lined landfills with extensive groundwater monitoring. It also requires pond owners to divert stormwater away from ash ponds and phase out the disposal of wet ash – the sludge that spilled into the Dan River – within five years. And it immediately makes it illegal to construct or expand wet coal ash ponds statewide.

To protect North Carolina consumers, the bill bans utility companies from recovering costs for the damage caused by coal ash spills, including associated civil or criminal fines. And it immediately places a moratorium on all rate increases from utilities that use coal ash ponds in North Carolina until January 15, 2015.

“As a resident of Eden, I have personally experienced the impact and understand the gravity of the recent coal ash spill,” said Berger. “I am pleased the Senate has developed the most aggressive approach to eliminating coal ash in the entire country to protect consumers and mitigate environmental problems.”

The bill also:

· Forms a new, independent and specialized Coal Ash Management Commission to review and approve risk classifications and closure plans proposed by owners of coal ash ponds and DENR. The commission will make policy recommendations to the General Assembly to ensure efficient and safe coal ash management statewide. It will consist of nine people with experience in areas such as public health, waste management and conservation.

· Creates 29 new positions for the regulation, mitigation and oversight of coal ash management operations – 25 at DENR and 4 staff for the commission. These regulatory positions, along with the commission’s operating expenses, will be funded by utilities with coal ash ponds and cannot be passed on to consumers.

· Keeps and expands on many of the governor’s other recommendations, including:
o Strengthening regulations on the use of coal ash as structural fill.
o Requiring utilities to assess and correct existing and future contamination of ground, surface and drinking water, with oversight through DENR.
o Strengthening dam inspection laws, by requiring more frequent inspections and creation of Emergency Action Plans.

· Requires utilities to look at markets for innovative commercial uses of coal ash and study technology that could be used to more effectively manage coal ash. And it directs DENR, DOT and other agencies to study ways to recycle coal ash through beneficial use projects.