Charlotte Mecklenburg Utilities’ Request for Modification of Interbasin Transfer Certificate HEARING OFFICERS REPORT and RECOMMENDATIONS Toya Ogallo Division of Water Resources May , 2013

Background Information NC / SC State Line MECKLENBURG CABARRUS UNION GASTON LINCOLN CATAWBA IREDELL ROWAN Catawba River Basin Rocky River Basin Lake Norman Intake Mt Island Lake Intake McDowell Creek WWTP Sugar Creek WWTP McAlpine Creek WWTP Mallard Creek WWTP Cabarrus Co RRRWWTP Irwin Creek WWTP CMU gets its water supply from Lake Norman and Mountain Island Lake in the Catawba. CMU owns 5 WWTPS – 4 which discharge back into the Catawba basin and one (Mallard Creek) which discharges in the Rocky River subbasin. They also have contracted for treatment capacity in the Water and Sewer Authority of Cabarrus County (WSACC) WWTP that discharges to the Rocky River. IBT certificate issued in March 2002 under NCGS 143-215.22I. Allows transfer of 33 MGD from Catawba to Rocky, with conditions.

Background Information MECKLENBURG CABARRUS UNION Catawba River Basin Rocky River Basin Town of Mint Hill Due to concerns that impacts to the Carolina Heelsplitter could not be properly evaluated, the EMC removed Goose Creek from the area to be served by the IBT.

Background Information Condition 3 of the certificate states: The Goose Creek subbasin in Mecklenburg County is removed from the area to be served by the IBT. A moratorium on the installation of new interbasin transfer water lines (water lines crossing the ridgeline) into Goose Creek subbasin is in effect until the impacts of additional urban growth on the endangered species are fully evaluated. This moratorium will not impact CMUD’s ability to fully utilize existing water lines. The Division of Water Resources shall have the authority to grant exemptions for reason of public health and safety for dwellings existing on or before March 14, 2002. In the Goose Creek Watershed, the NC DWR has approved water supply connections to five separate residences since the restrictions were put in place, addressing wells that were either contaminated or providing inadequate amounts of water (pers. comm., Steve Miller/CMUD). Condition 3 was written under the assumption that it would be a short-term condition and measures to protect the heelsplitter would be evaluated as part of the EIS for the Three County Reclamation Facility, which was being developed at the time. However that facility was never constructed.

Environmental Assessment December 2012 CMUD developed an Environmental Assessment (EA) to meet the requirements of Condition 3 Requested that the moratorium be removed The EA received a FONSI based on: The analysis of impacts in the EA Mitigative measures required by 15A NCAC .0600-.0609 the NCDENR Site Specific Water Quality Management Plan (SSWQMP) for the Goose Creek Watershed

Environmental Assessment Purpose of SSWQMP “… is for the maintenance and recovery of the water quality conditions required to sustain and recover the federally endangered Carolina heelsplitter species. Management of the streamside zones to stabilize streambanks and prevent sedimentation are critical measures to restore water quality to sustain and enable recovery ....”

Environmental Assessment Town of Mint Hill’s 2010 Post Construction Ordinance meets or exceeds action items required by the SSWMP: No new wastewater discharges Control of storm water for projects disturbing 1 acre or more (exceeds EMC runoff volume) Maintenance provision for BMPs Requires buffers based on DWQ identification method (exceeds EMC requirement) 200 foot riparian buffers Received FONSI. There were some initial comments from the internal DENR review stating that although these requirements were strong, even stronger measures could be implemented. However these comments were also provided to the EMC in 2008 during deliberations on the rule. DWR issued a FONSI on the basis that the EMC had determined and prescribed the measures necessary to protect and promote the heelsplitter, therefore any impacts due to growth in the Goose Creek basin would be mitigated by those required actions..

Public Hearing EMC held public hearing held on March 4, 2013 in Town of Mint Hill. Speakers included Town of Mint Hill, a representative for Rep. Brawley and Sen. Tarte, and residents of Ashe Plantation subdivision All speakers and public comments were in favor of moratorium being lifted. Although public hearing has not required by SEPA or the IBT statute, the EMC held one to be consistent with IBT process. 77 attendees 10 speakers 24 written comments

Brief discussion of themes from public hearing and written comments…

Hearing Officer Recommendations Findings of Fact The EMC may grant a Petition in whole or in part, or deny it, and may require mitigation measures to minimize detrimental effects. In making this determination, the EMC is required to specifically consider: The necessity, reasonableness, and beneficial effects of transfer amount Detrimental effects on the source river basin The cumulative effect of uses on the source major river basin Detrimental effects on the receiving basin Reasonable alternatives to the proposed transfer Use of impounded storage Purposes and water storage allocations in a US Army Corps of Engineers multipurpose reservoir Any other facts or circumstances

Findings of Fact Necessity, reasonableness, and beneficial effects of the transfer amount CMU is not requesting an increase from 33 MGD transfer already authorized by the 2002 IBT certificate. The Utility currently operates existing water lines within the Goose Creek Watershed. Existing infrastructure has capacity above its current use. CMU currently operates existing water lines within the Goose Creek Watershed. CMU is able to provide this water service due to its grandfathered capacity to transfer, however other than isolated connections for reasons of public health and safety, no additional connections have been allowed since the certificate was issued. The existing water lines have capacity above their current use and CMU is currently transferring approximately 57% of the amount authorized in its certificate. CMU has estimated that the 2030 projected water demand in the entire Goose Creek watershed could be as much as 3.9 MGD, however this demand would be met by a combination of surface and ground water providers, as well as private wells. The hearing officers find that the amount of water necessary for CMU to provide service to the Goose Creek watershed is reasonable in that the existing certificate provides sufficient capacity to meet projected needs in the Goose Creek watershed. Removal of Condition 3 would also allow CMU to fully utilize existing infrastructure and provide a reliable water supply alternative to both existing and future customers within the Goose Creek watershed.

Findings of Fact Present, Reasonably Forseeable, and Cumulative Effects on the Source River Basin Removal of Condition 3 does not impact the Catawba River Basin because the modification does not change the amount of water that CMU is authorized to transfer.

Findings of Fact Detrimental Effect on the Receiving Basin Current certificate authorizes CMUD to transfer to Rocky River Basin. Mint Hill is implementing requirements of 15A NCAC 2B .0600-.0609 Environmental Assessment received a Finding of No Significant Impact (FONSI). Based on the record, the hearing officers find that the actions required by the NCDENR Site Specific Management Strategy 15A NCAC 2B .0600-.0609 will mitigate any impacts due to additional growth in the Goose Creek Watershed such that removal of condition 3 will not have a detrimental impact on the Rocky River Basin.

Findings of Fact Reasonable Alternatives to the Proposed Transfer Under the “no action alternative, CMU would not provide pubic water service to the Goose Creek Watershed Case-by-case exemptions allowed by DWR Concern about groundwater quality Based on the record, the hearing officers find that the removal of Condition 3 from the IBT certificate is the preferred alternative.

Findings of Fact Other facts or circumstances necessary Condition 3 states that moratorium will remain until impacts of growth have been fully evaluated. Local and state initiatives since 2002 have thoroughly evaluated impacts and prescribed mitigation measures. CMUD developed EA and received FONSI. the hearing officers find that Charlotte Mecklenburg Utilities has met the Certificate requirement to evaluate the impact of urban growth on the Carolina heelsplitter.

Requested Action The Hearing Officers recommend that the Commission grant CMU’s request to remove Condition 3 from the IBT certificate The Division requests that the Water Allocation Committee recommend the modification for approval by the EMC