Catawba-Yadkin Interbasin Transfer (NC)

Background

Since 2002, when a record drought took North Carolina by surprise, much attention has been given to whether the state can meet long-term water supply projections for population growth.  Industry and individuals alike demanded more clarity on the issue, and the legislature responded by directing the state Department of Water Resources to convene a group of stakeholders to develop rules for conserving water in times of drought.  SELC served as the sole environmental representative in this two-year process. 

Although the agency complied with this mandate and modest rules were adopted, it has continued to tout a short-sighted strategy of moving water around the state from water-rich to water-poor regions.  This includes the diversion of water from one basin to another to accommodate growth free of restrictions on water consumption, a practice known as “interbasin transfers.”  Although interbasin transfers may be appropriate in some circumstances, it is critical that basin-wide impacts and aquatic habitat impacts be thoroughly assessed and addressed before any such transfer is allowed.

In January 2007, the NC Environmental Management Commission (EMC) approved the state’s second large-scale proposal for an interbasin transfer, the diversion of 10 million gallons per day from the Catawba River at Lake Norman and another 10 million gallons per day from the upper reaches of the Yadkin River.  The water would be sent to the Rocky River, a sub-basin of the Yadkin, to be used by the cities of Concord and Kannapolis to fuel economic and residential development in this growing area east of Charlotte over the next 30 years.

The EMC approved this transfer despite numerous defects in the application process, wide-ranging opposition, and concerns with the quality of the environmental review the cities conducted pursuant to the North Carolina Environmental Policy Act.  These defects range from the agency’s failure to notify the state of South Carolina of the proposed transfer, despite the fact that the transfer could exacerbate water shortages and contribute to concerns about water quality degradation in the Catawba system, to the agency’s failure to give the public adequate time to review and comment on a series of revisions to the final environmental impact statement for the project. 

There also are substantive concerns about the project, which could prolong water shortages during periods of drought within the Catawba River and fuel residential growth in the sensitive habitats of the lower Yadkin River.  The interbasin transfer could also adversely affect instream flow in the Catawba and damage aquatic habitat in both rivers.

The request by Concord and Kannapolis for the interbasin transfer is in part a response to the pending renewal of Duke Energy’s hydropower licenses for the series of dams and reservoirs it operates along the Catawba River.  A similar process is underway for the Yadkin River. 

The cities, anticipating sweeping changes to the management of  the dams to maintain flow during periods of drought and ensure a steady supply of water to South Carolina, have aggressively pursued the transfer before the Federal Energy Regulatory Commission can act on Duke Energy’s dam license renewals, which is not expected until 2008.  In this way, the cities hope to secure ample water to fuel population growth. 

On March 28, SELC filed a petition with the state challenging the state’s certificate allowing the transfer.  Also on that day, South Carolina Attorney General Henry McMaster announced his intentions to seek a review by the U.S. Supreme Court on the grounds that North Carolina’s action violated the U.S. Constitutions interstate commerce clause.  A few days earlier, a coalition of 17 local governments filed their own petition seeking to overturn the transfer.

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