Disposing of Coal Combustion Residuals Just Got Much More Expensive — At Least in North Carolina!

Foley Hoag LLP - Environmental Law
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Foley Hoag LLP - Environmental Law

On Monday, the North Carolina Department of Environmental Quality issued determinations with respect to six Duke Energy coal plants, requiring that Duke close coal combustion residual surface impoundments at the plants by excavating and removing all coal ash from the impoundments.  DEQ did so notwithstanding that the impoundments all received “low-risk” classifications by DEQ.

According to Greenwire (subscription required), the directives will increase the cost of complying with CCR requirements at these plants by $4B-$5B.

Why did DEQ require Duke Energy to remove all coal ash from on-site impoundments?  Because it concluded that removing the coal ash “is more protective than leaving the material in place.”

Count me skeptical of DEQ’s conclusion.  First, do landfills qualified to take CCR in these volumes even exist?  We’re talking about a very substantial volume of waste.  Second, what about years of truck traffic to remove all the CCR and the environmental costs and nuisance impacts of that work?

The DEQ directives were based on state law provisions, so for now coal plant operators outside North Carolina have nothing to fear.  However, what happens if other states get the idea that replicating the North Carolina statutory requirements would be a good idea?  Then we might really find out how much capacity is required to move and redispose of all of the CCR currently in surface impoundments at coal plants in the United States.

I hear Yucca Mountain has some extra capacity.  I’m sure Nevada would love to have the nation’s CCR!

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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