SB 967, Creation of Yadkin River Trust was discussed (and only discussed) in the House Water Resources and Infrastructure Committee. More than half the folks in the audience are from Stanly County.

Bill sponsor, Sen. Fletcher Hartsell (R-Cabarrus) explained the bill – single most intriguing, challenging and complex issue and yet fundamental in his legislative career. He started out on the side of this issue. The question the bill addresses is Who can be the better steward of the state’s water?

The bill establishes a legal entity to deal with the re-licensing of the Alcoa plant, identifies where the money goes – that’s all. It doesn’t take anything, nor does it give anything. Three issues that are addressed: Who controls? Environmental impact? Economic development?

Gives a history of Alcoa’s 50 year license. Says the federal license allows for the licensee to recoup their expenses. There was no guarantee of subsequent licensing. The people of NC now have the opportunity to control the water.

As the state grows, need to control it for usage and in droughts. Claims Alcoa has not been environmentally responsible and cites recent pcb levels in fish in the lake. It is important for the state to have access to the hydro electric power – shouldn’t let Alcoa have it for free.

Bruce Thompson represents Stanly County and talks about fish pollution and fish consumption warning in Badin Lake. Says Alcoa fought the postings of warning signs and questioned that they were responsible for pcb elevations. Studies showed that the poisons around the Badin Works (Alcoa) were the same ones tested in the fish. He says action must be taken now.

Gene Ellis representing Alcoa speaks in opposition to the bill. Never thought I’s see the day that the state of North Carolina would take over a private business and at a cost ($500 million) that the state can hardly afford right now.

Alcoa bought and owns 38,000 acres and the land under the lake, they built the hydro electric plant with no government subsidies – profit of $8 million a year

Cost to taxpayer of more than 1/2 Billion dollars. Deadlines for takeover have passed. The only way they could take it is through condemnation and pay just compensation. State would inherit $2 million in needed upgrades.

Violation of property rights. The taking of private property by governent is not a very popular idea.

NC does not have to take over Alcoa to control the water. Alcoa doesn’t take the water, it simply passes through the hydro electric plant.

Alcoa has built and maintained environmentally responsible waste sites. Addresses the fish warning. Div of Public Health made the decision not to post the signs. NC Div of Waste Management says the pcbs cannot be traced to fish exposed to Alcoa.

He addresses jobs. The licensing process does not require creating or maintaining jobs. Alcoa has gained support in neighbors, environment, and business communities. This is not about protecting -it is about taking of private property.

Committee questions:

Rep Mitch Gillespie, (R-McDowell), asks how does the Yadkin Trust change control and what Alcoa can do now? House of Reps should be able to come up with a more balanced proposal. Doesn’t want to see China own the water and doesn’t want to burden taxpayers with $500 million debt. There has to be something that would solve the problem and better serve the people of NC.

Rep Ruth Samuelson, (R-Mecklenburg), asks how the use and control is different for Duke Power that has hydro electric plants on Catawba River? Why is it not an issue? Hartsell says duke is a regulated public utility, not a private company.

Is there anything that would prohibit Duke or another public utility from buying the Alcoa plant? Hartsell says no but the question is who owns the license.

Rep Hugh Blackwell (R-Burke), says the concerns have to with the control of water and environmental issues. Maybe these rules should apply to everyone, Duke Power, Progress Energy and private hydroplants. Hartsell says public utlitlies are different.

Meeting adjourns and will hear questions and debate from committee members at the next meeting.