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Carolina Journal INSIDE THIS ISSUE: DEPARTMENTS State may North Carolina 2 Local Government 10 end Yakdin CAROLINA Education 14 From Page 1 12 River dam Books & the Arts 17 fight with Interview 18 Alcoa /2 Opinion 20 JOURNALA MONTHLY JOURNAL OF NEWS, ANALYSIS, AND OPINION Parting Shot 24 FROM THE JOHN LOCKE FOUNDATION November 2015 Vol. 24 No. 11 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Amazon’s Wind Farm Links Nonexistent 2013, that mix was 41 percent nuclear, 37 percent coal, and 20 percent natural Energy still will come gas. Renewables including solar, wind, hydro, and biomass constituted the re- from local utilities maining 2 percent. “Amazon is one of many compa- using fossil fuels nies making misleading claims about how their facilities and operations are By Don Carrington powered,” said Travis Fisher, an econ- Executive Editor omist with the nonprofit Institute for RALEIGH Energy Research in Washington, D.C. hen Amazon Web Services, “These companies are connected to a division of online retailer the grid, which receives 86 percent of Amazon, announced in July its power from coal, natural gas, and Wits involvement in North Carolina’s nuclear. Wind and solar power are ex- first major wind farm, the company pensive and unreliable energy sources stated the power would be used for its and can’t be counted on to supply on- data centers in Northern Virginia, but demand electricity. That’s why these the centers will continue to purchase sources require costly mandates and electricity entirely from Dominion subsidies to prop them up. It’s for- Virginia Power, the public utility that These three buildings, totaling approximately 400,000 square feet, house computers tunate for Amazon’s customers that currently supplies the Amazon data and other equipment for Amazon Web Services. This complex is located near Dulles they’re connected to reliable sources centers. Airport in Ashburn, Va. (CJ photo by Don Carrington) of electricity and aren’t subject to wind energy’s fickle output.” While AWS has agreed to buy nal that Dominion is not involved in “This venture by Amazon does Amazon’s contention that the all the power from the 208-megawatt any arrangement giving AWS credit not involve us,” Genest told CJ. Ama- wind farm will make its data center wind farm being built and operated in on its power usage at its Virginia data zon is allowed to have “a wind farm operations “green” also may run afoul Pasquotank and Perquimans counties centers for electricity that is generated [built] for them that will provide en- of Federal Trade Commission guide- by Iberdrola Renewables, the power by the Amazon Wind Farm in North ergy directly onto the … grid system,” lines governing the use of such claims will be connected to the grid locally Carolina. Instead, the wind farm will he added. “Sorry I cannot be of more in corporate promotions. “It is decep- and cannot be plugged into the data be connected to a grid operated by help, but this is not our project.” tive to misrepresent, directly or by im- centers, which are 200 miles away. PJM Interconnection, a regional trans- The centers will continue to oper- Dominion Power spokesman mission organization, allowing AWS to ate with the same mix of fuel types that Dan Genest confirmed toCarolina Jour- resell the power. power other Dominion customers; in Continued as “Amazon,” Page 12 FTC: Green Misrepresentations a Problem PAID which has the authority to sue busi- RALEIGH, NC U.S. POSTAGE nesses that make fraudulent or decep- PERMIT NO. 1766 NONPROFIT ORG. Complaint filed tive advertising claims. Since 1992, the FTC has issued “Guides for the Use of about renewable Environmental Marketing Claims,” or Green Guides, as an attempt to moni- project in Vermont tor the truthfulness of advertising to By Don Carrington U.S. consumers interested in environ- Executive Editor mentally friendly or “green” products. RALEIGH The Green Guides “are not agen- mazon’s statement that its cy rules or regulations” but instead wind farm in northeastern “describe the types of environmen- North Carolina will provide tal claims the FTC may or may not Aelectricity for data centers located near find deceptive under Section 5 of the Washington Dulles International Air- FTC Act” and “are designed to help port, nearly 200 miles away, could be a marketers ensure that the claims they problem for the federal regulators that think their green claims mean and what make about the environmental attri- police corporate advertising and pro- consumers really understand are two butes of their products are truthful and motion. different things,” states a press release The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 “Sometimes what companies from the Federal Trade Commission, Continued as “FTC,” Page 13 PAGE 2 NOVEMBER 2015 | CAROLINA JOURNAL North CaroliNa C a r o l i n a State May End Yadkin River Dam Fight Against Alcoa DENR was prepared to issue the license in July 2013 until a last-minute intervention by the North Carolina Department Journal Water quality permit at dams of Administration caused a problem. DOA claimed that the riverbed belonged to the state rather than Alcoa. Rick Henderson Alcoa filed a complaint against DENR within the Of- Managing Editor could pave way to relicensing fice of Administrative Hearings. Administrative Law Judge By riCk HenDerson Don Carrington Managing Editor Selina Brooks ruled in May 2015 that DENR was wrong to deny Alcoa’s water quality certificate based on the state’s Executive Editor RALEIGH new claim to ownership. She ordered DENR/DEQ to recon- nearly eight-year-long legal battle between the state sider the application. Mitch Kokai, Michael Lowrey of North Carolina and Alcoa Power Generating Inc. DEQ appealed the Brooks decision to the state Superi- Barry Smith, Kari Travis over four hydroelectric dams the company owns and or Court, where in September Judge Bryan Collins affirmed Dan Way Aoperates on the Yadkin River may be coming to an end. her ruling and gave DEQ 30 days to process Alcoa’s applica- Associate Editors The state in late October issued a water quality per- tion for the license. mit to Alcoa, one of the final impediments preventing the “We’re pleased the court has reaffirmed what we’ve Kristen Blair, Roy Cordato company from receiving a known all along: the state Becki Gray, Sam A. Hieb new license from the Federal had no legal reason to deny Lindalyn Kakadelis, Troy Kickler Energy Regulatory Commis- our application. We urge the George Leef, Donna Martinez sion to continue operating Harry Painter, Jenna Ashley Robinson state to follow the judge’s the dams, known collective- order and quickly issue a Marc Rotterman, Jesse Saffron ly as the Yadkin Project. In Jay Schalin,Terry Stoops water quality certificate for recent weeks, the state had Andy Taylor, Michael Walden the Yadkin Project,” Barham Contributors lost rulings in state Superior told CJ after Collins’ ruling. Court and U.S. District Court DOA initiated a sepa- over the relicensing process. rate legal action in N.C. Su- Joseph Chesser, Zak Hasanin “We are pleased the perior Court in August 2013 Catherine Koniecsny, Charles Logan state of North Carolina has over ownership of the river- Austin Pruitt, Matt Shaeffer issued a water quality cer- bed. The following month, Interns tificate for the Yadkin Proj- Alcoa successfully had the ect and are in the process of case moved to federal court. reviewing it. The certificate Boyle ruled in May Published by clears the way to a FERC li- The John Locke Foundation that the state failed to prove 200 W. Morgan St., # 200 cense that will allow us to the Yadkin River was navi- Raleigh, N.C. 27601 implement enhanced water gable for commerce in 1789, (919) 828-3876 • Fax: 821-5117 quality technology and ad- The Falls Dam is one of four comprising Alcoa’s Yadkin River a claim the state believed www.JohnLocke.org ditional environmental and hydroelectric facilities. (CJ file photo) would help it gain owner- recreational benefits prom- ship of the “Relevant Seg- ised by the Relicensing Set- ment” of the riverbed. Jon Ham tlement Agreement. We have been good stewards of the On Sept. 28, Boyle ruled on the remaining issues in Vice President & Publisher watershed for nearly 100 years and remain committed to federal court. meeting North Carolina water quality standards,” said Ray “It is impossible not to notice the timing of this lawsuit. Kory Swanson Barham, Yadkin relicensing manager, in a statement. President The state did not file suit immediately upon learning that Alcoa has operated the dams since 1917, and its federal Alcoa claimed ownership of the property. Instead, it waited John Hood license expired in 2008. The company is operating the dams over seven years, until after Alcoa closed the Baden Works Chairman under a temporary license. It began the relicensing process aluminum smelting plant, to file suit. … The evidence, even in 2002, but in 2008 state officials began throwing obstacles viewed in the light most favorable to the state, overwhelm- in Alcoa’s way. Democratic Govs. Mike Easley and Bev Per- ingly demonstrates that Alcoa has title to the bed of the Rel- Charles S. Carter, Charles F. Fuller due and Republican Gov. Pat McCrory each had opposed evant Segment,” Boyle concluded. Bill Graham, John M. Hood the relicensing. They wanted the state to take over the dams Initially, the state suggested it would appeal Boyle’s Christine Mele, Baker A. Mitchell Jr. and operate the hydroelectric facilities. (See earlier Carolina ruling. “We are disappointed and disagree with the court’s Paul Slobodian, David Stover Journal news reports at http://bit.ly/1O1YQNU.) decision.
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