Coal Ash Due Diligence Update Environment Committee August 13, 2014 Purpose • Provide an overview Staff’s due diligence review of Duke Energy/Charah’s proposal to use coal ash as a structural fill at Charlotte-Douglas International Airport (the “Airport”) 2 Two Questions Is this project: 1. Unambiguously good for the environment? 2. Unambiguously good for the Airport? 3 Process • Developed a multi-jurisdictional, multi-disciplinary project team. • Educated the staff on the science of coal ash through site visits, education sessions, lectures, and other materials • Focused on Environmental, Science & Engineering, Community, Legal and Economic aspects • Worked with Duke Energy, Charah, and the Catawba Riverkeeper on the due diligence review 4 Good for the Environment? • Project would move approximately 4.7 million tons of coal ash by truck from Mountain Island Lake into an engineered structural fill at the Airport • Some potential short term negative impacts (i.e., traffic, dust, etc.). • Significant long-term benefit to Mountain Island Lake. • Yes. Good for the environment. 5 Good for the Airport? • Estimated cost savings for the Airport of approximately $30 million for developing a fourth runway. • Investigation concluded that the risk of putting coal ash under the airfield was an unacceptable risk. • No other configuration of the project or site worked. • No. Not good for the Airport. 6 Conclusions • Staff cannot answer both questions affirmatively. • Would not recommend moving forward with the project as originally proposed. 7 Further Considerations • However, staff believes that there is great benefit to the City in moving the coal ash away from Mountain Island Lake. • Developed an approach that would meet both original conditions. 8 Alternative Proposal • Asked Duke Energy to consider a landswap with the Airport. 9 How is this good for the Airport? • Airport has a standing offer on the property to purchase at any time. • Property is consistent with the Airport’s longterm plans. • Acquiring property would be unambiguously good for the Airport. • Currently, Duke Energy reviewing the City’s proposal. 10 Current Status & Next Steps • Duke Energy is conducting its due diligence on our proposal. • Waiting for a response prior to conducting any further activity related to this project. • If no, then project is concluded. • If yes, FAA will have to approve the swap. • If approved, swap must include deed restrictions on development and a requirement for environmental monitoring to ensure water quality. 11