The House Water Resources Committee revives Senate Bill 967, Creation of Yadkin River Trust after many thought it was dead after the last meeting.

Sen. Fletcher Hartsell, (R-Cabarrus), has a new version, a PCS, that would authorize creation of the Trust, acquisition of the federal  license currently held by Alcoa to operate a hydroelectric project, and authorize the State to negotiate, transfer property and enter any agreements necessary to takeover the Alcoa hydroelectric plant

The PCS provides that the Trust would have a 7 members Board, would be created as a public agency, would be authorized to acquire the license, would ask the General Assembly for permission to issue revenue bonds or other financing authority.

Hartsell argues for the State takeover of Alcoa, citing PCP contamination in the area he claims Alcoa is responsible for, and claiming the takeover is for the benefit of the people. Alcoa representative Gene Ellis argues for Alcoa’s retention of the license and says the state wants the land, Alcoa has been a responsible environmental steward. A government takeover would cost the taxpayer more than $500 million. Making a compelling property rights point, Ellis says  Alcoa purchased over 38,000 acres and built the plant with their money and the bill suggests the state may take it and give it to a third party.

NC Dept of Commerce Secretary Keith Crisco says the deal was that Alcoa could use the water, make aluminum and create jobs. Claims Alcoa pulled assets and money out of area. Says the state won’t take the land, they just want control of the flow of water.  Out of pocket money will be minimal – they’ll finance the deal. As North Carolina’s Sec of Commerce, “His charge is to create jobs”. There is no greater asset that we have – don’t give it away.

Questions from the committee include:
Rep. Hugh Blackwell, (R-Burke), questions the cost estimates to taxpayers of taking over the project. Crisco says money was invested at the beginning of the agreement in 1950 and known that the license may not be renewed.  Says they have no intent of acquiring any other dams.

Rep. Bruce Goforth, (D-Buncombe), asks who’s going to clean up the alleged pollution. Hartsell says Alcoa will have to. Goforth asks about ensuing litigation and Hartsell says it is likely. Bond issuance? Hartsell says thats been removed in the PCS but will be “revisted at a later date.” Goforth asks about taxes to counties and job creation – doesn’t look like an incentive or job creator to him.

Rep. Bill Owens, (D-Pasquotank), says last year he asked Alcoa to create some jobs, they haven’t done it so he’s going to vote to take the plant away from them.

Rep. Mitch Gillespie, (R-McDowell), says he ran for office based on principals. He is not going to give up those principals. It’s bad public policy, bad precedent, fiscal impact is unknown.  He’ll vote no.

Vote on the bill: 8-7, as follows:

Voting yes:
Rep Kelly Alexander, D Mecklenburg
Rep Lucy Allen, D Franklin
Rep Pryor Gibson, D Anson
Rep Bill Owens, D Pasquotank
Rep. Jamie Boles, R Moore
Rep Carolyn Justice, R Pender
Rep Edith Warren, D Pitt
Rep Cullie Tarleton, D Watauga

Voting no:
Rep Hugh Blackwell, R Burke
Rep Mitch Gillespie, R McDowell
Rep Bruce Goforth, R Buncombe
Rep Grey Mills, R Iredell
Rep Ruth Samuelson, R Mecklenburg
Rep Alice Underhill, D Craven
Rep Ray Warren, D Alexander

The bill now goes to the House Public Utilities Committee and if it passes there, on to Finance and then to the House floor.