Category Archives: Environment

Dominion Withdraws Renewable Tariff Effort

In the wake of the State Corporation Commission’s recent approval of a renewable energy tariff for residential customers of Appalachian Power Company, Dominion Energy Virginia has given up the application for its own more expensive proposal for a similar service to its residential and smaller business customers.

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The Compressor Station: Another Fact-Poor Debate

THis map shows the location of ACP’s proposed air compressor station in relation to houses in the Union Hill community. Source: Southern Environmental Law Center.

The State Air Pollution Control Board voted 4 to 0 last night to approve a controversial natural gas compressor station in Buckingham County that is crucial for the operation of the Atlantic Coast Pipeline.

Pipeline foes had argued that emissions from the compressor station would create a health hazard for nearby residents, a majority of whom, depending upon what mapping criteria are used, are African-American. This disproportionate impact upon a minority community, many contended, amounts to environmental racism.

But Dominion Energy and state regulators countered that the compressor station will be the cleanest in Virginia, emitting 50% to 80% less air pollution than any other gas compressor station in Virginia. “The bottom line here is the Buckingham Compression Station will be the most stringently regulated compressor station in the country and the public’s health will be protected,” said Michael Dowd, director of the Department of Environmental Quality’s Air Division, as reported by the Richmond Times-Dispatch.

As happens so often in such debates, there was no meaningful discussion of the level of risk associated with the project. Regardless of how tightly regulated the station is, how much pollution will it emit? And what health hazards are associated with that level of pollution — are they real or imagined? Numbers may exist deep in the bowels of the DEQ, but they have not surfaced in the public debate. Continue reading

At Last, a Green Tariff for APCo Customers

Western Virginians paying APCo’s renewable energy tariff will receive electricity from, among other sources, the Beech Ridge wind farm in West Virginia.

The State Corporation Commission has approved a proposal allowing Appalachian Power Company (APCo) customers to purchase electricity generated 100% from renewable energy. An average residential customer using 1,000 kilowatt hours of electricity would pay a premium of $4.25 a month.

The Commission had rejected two previous APCo proposals for a 100% renewable energy tariff. In an order issued Monday, however, the Commission found that under the latest iteration of the plan (1) the participating customer is receiving 100% renewable energy, (2) the tariff includes safeguards that do not offload costs to customers who do not participate, and (3) the rate is reasonable for the purposes of the renewable energy product being supplied. Continue reading

Coal Ash: How Much Risk Mitigation Does $5.7 Billion Buy?

Coal ash at the Chesterfield Power Station. Photo credit: Richmond Times-Dispatch

Governor Ralph Northam has indicated his support for digging up 27 million cubic yards of coal ash, recycling some of it, and disposing of the rest in lined landfills far from Virginia’s rivers and streams. The cost has been estimated at $5.7 billion, adding an average $3.30 per month to the average household’s electric bill over 20 years.

“If not disposed of properly, coal ash can ruin water quality and create environmental disasters,” Northam said at a news conference yesterday, citing a 2014 coal ash spill in North Carolina. “We cannot have a repeat of that here in Virginia.” So reports the Richmond Times-Dispatch.

If Northam really said that, I shudder for the future of the commonwealth. There is so much misunderstanding packed into such a brief statement. Continue reading

Following the Dark Money: Bloomberg to NYU to Virginia’s OAG?

Mark Herring (far right) at 2016 launch of AGs United for Clean Power Plan.

Here is a counter-factual mental exercise for you. Imagine that former Attorney General Ken Cuccinelli, a conservative skeptic of climate change, had applied for a grant from the conservative-libertarian Koch Foundation to cover the cost of hiring an AG staff member dedicated to litigating environmental groups. Then imagine that Cuccinelli’s office had to compete nationally with other AG offices around the country for the grant, that the Koch Foundation would fund only those projects that best advanced its anti-climate change agenda, and, if approved, that the Koch Foundation would help select the attorney.

Would that have been a news story? Would the Washington Post and every other Virginia newspaper have given it front-page scandal coverage? Would Democrats and environmental groups decry the use of private dollars to hire lawyers to wield the legal powers of the AG’s office to harass and intimidate Koch brothers enemies?

Now flip the scenario. In the real world, Attorney General Mark Herring’s office submitted an application on Sept. 15, 2017, to the New York University School of Law’s State Energy & Environmental Impact Center for funding to hire a NYU School of Law fellow “as a Special Assistant Attorney General” devoted to climate-change issues. The Virginia AG’s office, stated the application, “would work with the State Impact Center to identify, recruit and extend offers to appropriate candidates.” The Center is backed by billionaire, former New York Mayor, and anti-global warming champion Michael Bloomberg. Continue reading

Hey, Lowell, Check Out This New Global Warming Post!

Source: Dominion Energy 2018 Integrated Resource Plan

One of my goals in life is to drive Lowell Feld insane. From what I call tell, my insidious plan is working.

Lowell, the hyperbolic publisher of the left-wing Blue Virginia blog, deems me a “climate denier” and an all-around right-wing whack job. A few days ago, he included several of my Bacon’s Rebellion posts in his list of “18 of the Craziest Right-Wing Political Posts of 2018.” His main form of argumentation is taking quotes stripped of context and supporting fact, and dialing up the invective. One piece, he described as “completely baseless” and “crap,” another as “conspiracy theory lunacy,” and another as “a litany … of nonsensical right-wing tropes.” You get the idea.

Given his proclivity for substituting insults for facts and reason, Lowell seems to be losing it. I’m hoping that one more push — this post — will reduce him to gibbering madness. Continue reading

Fools Rush In: Coal Ash Scene Setter

Coal ash pond at Bremo Power Station. Photo credit: CBS 19

“I hate to give out directions without knowing what the cost is going to be.  There’s far too much of that in government.” 

That was Senator Frank Wagner of Virginia Beach expressing his deep reservations about various proposals to deal with the 27 million cubic yards of coal ash that Dominion Energy Virginia has collected over decades near its major power plants.  Wagner, who chairs the Senate Commerce and Labor Committee, was part of a joint subcommittee of that committee and its House counterpart that heard testimony  Monday but took no actions.

Legislation is coming.  Coal ash disposal in 2019 might turn into a replay of grid transformation in 2018, an omnibus electric utility regulation bill that takes on epic and expensive proportions as it moves through the legislative process.  It will also be a textbook example of what happens when legislators jump in to make billion-dollar decisions that could be made a better way.

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Let’s Keep All the Big Boys Honest

Clean Virginia, the anti-Dominion group dedicated to “fighting monopoly utility corruption,” released a study Monday asserting that Virginians pay excess rates of $254 a year on average due to poor state oversight. That study was duly picked up by the Washington Post, which duly repeated its findings (along with Dominion’s rebuttal).

As far as I’m concerned, as a regulated monopoly, Dominion deserves the public scrutiny it gets. Dominion Energy is a publicly traded company, and its fiduciary responsibility is to maximize profits for shareholders. Its interests are not the same as those of ratepayers or the general public. But Dominion doesn’t exist in a vacuum. The company does business within the context of a larger political system — a political system in which the environmental movement constitutes an increasingly powerful force. Continue reading

Green Virtue, Certified By The Hour

Is it enough to be green and virtuous on a month by month basis, or must one be green and virtuous every hour of every day?

That is a facetious version of a real question facing the State Corporation Commission as it considers the most recent effort by Dominion Energy Virginia to create a 100-percent renewable energy tariff for its residential and smaller commercial customers. A hearing examiner who has looked at the year-old case recommended last week that monthly virtue will be enough.

This is a case that pits consumer choice against a utility’s monopoly, and a small window for choice may close if this new voluntary tariff is approved. 

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Dominion Energy: No More Mister Nice Guy

Dominion Energy executives are furious about the way environmental groups have portrayed State Corporation Commission’s recent rejection of the utility’s Integrated Resource Plan as a blow to the Atlantic Coast Pipeline. Dominion describes recent comments by spokespersons for the Southern Environmental Law Center (SELC) and the Sierra Club-Virginia Chapter as deliberate “deception” and “lies.”

While they often express frustration with environmentalist foes in off-the-record conversations, Dominion government- and public-relations executives stick to carefully scripted remarks in public statements and steer clear of personal attacks. But after numerous false statements by pipeline foes over the past few weeks, said Thomas Wohlfarth, senior vice president of regulatory affairs, the gloves are off. Continue reading

Dominion Grid Plan Battered in Testimony

Caroline Golin, Ph.D., witness for Appalachian Voices, SELC

Two witnesses told the State Corporation Commission Tuesday that Dominion Energy Virginia’s proposed grid transformation program will not bring the utility’s customers into the modern energy economy.

Both Scott Norwood of Texas, an expert witness often used by the Office of the Attorney General, and Caroline Golin, an expert from Georgia hired by environmental groups, paralleled their written testimony reported on in an earlier post.

The commission must agree that the company’s $917 million first phase of its plan, which includes a roll out of new automated metering technology, is reasonable and prudent before the company can proceed. Just how customers will pay for this – either through a rate adjustment clause or the use of excess profits retained by the company – is not yet before the commission. With financing costs and profits the long-term revenue requirement for all phases of the plan is estimated at $6 billion by the SCC staff.

“The company is not proposing to operate the grid in any new way,” Golin said Tuesday. If it were moving aggressively to distributed energy, to more customer-driven demand management, to time-of-day pricing, to use of storage, “then I would agree they need more control of the grid. But right now, they are not proposing any of those.”

Norwood noted that a major part of the plan’s cost will be spent to reduce average outages by a few minutes per year. “I’m skeptical most customers will notice. It’s like the break we took at midmorning.” Benefits of that kind of reliability flow to larger, commercial and industrial customers but will be paid for by the residential customers.

Golin picked up on the same point: “There is a difference between reliable and perfect” and the company is now shooting for perfect. “This is something the commission needs to be very critical of. The average customer does not require perfect power.”

Support from some of the environmental groups, and a neutral stance taken by others, was crucial to passage of the 2018 legislation. Dominion Energy packaged it to the public it as a grid modernization effort, but its final version also included major incentives and directives to build more renewable generation. Now the environmental groups are leading the charge against the grid-related element of the bill, claiming it is a lost opportunity to truly transform the utility for a renewable energy future.

Golin, who has joined Google since being retained in this case, has been involved in grid redevelopment cases around the country and has also been especially critical of Duke Energy’s North Carolina plan.  Her statement that Dominion had no plans to operate the grid differently was vigorously challenged by Dominion and even an SCC staff witness later in the hearing.

Since the first round of written testimony was filed, Dominion’s leaders have supplemented the record with rebuttal testimony, but it was picked apart at the hearing as more evidence that no real cost-benefit analysis had been done, much of the engineering work is preliminary, cost estimates have little valid basis, and some obvious grid-related issues were flat ignored.

Dorothy Jaffe of the Sierra Club used questions to a Dominion witness to point out no real plans were made for the growth of electric vehicles, and the initial $3 billion plan would have to be supplemented – perhaps at additional cost – to support that expected transformation.

The Office of the Attorney General and the SCC staff have not asked for a total rejection of the proposal, but acceptance with conditions or acceptance of only the early pieces that involve planning and engineering. 

As with most of the issues that have reached the commission growing out of that legislation, the key question is does the regulatory body have the power to say no. In some cases, such as the off-shore wind demonstration project, the legislative wording was a clear directive. In the case of the grid projects, however, the new language mandated a review for reasonableness and prudence. A separate hearing on the commission’s authority was held November 7.

“The new law does not require a single one of these projects to be implemented,” said Nate Benforado, an attorney for the Southern Environmental Law Center, who used his opening statement to dismiss the whole effort as “a plan to spend money” which “puts the customer last.”

“This is a huge issue for the coming decade,” Benforado said. Dominion really doesn’t need to build new generation. There is testimony in the current integrated resource plan case that demand is flat or dropping, with plenty of generation assets available through connection with other utilities. “Dominion is looking for ways to spend customer money and earn a rate of return.”

The decisions on this case and on the integrated resource plan will probably need to be viewed together to glimpse Virginia’s future. The IRP case appears ripe for a published opinion with no further hearings planned. The commission has until mid January to issue a decision on this matter.

Virginia’s Air Is Pretty Darn Clean

Air quality for Richmond, Va., on Nov. 25, 2018. (Click graphic for larger image.)

In the comments section on Steve Haner’s latest post, Reed Fawell provided an intriguing quote from Oren Cass, a senior fellow with the Manhattan Institute: Environmental Protection Agency regulations have grown so tight, he said, “that Brussels, the capital of the EU, would be the single dirtiest city in the US, if it were here.”

Really? I wondered if that were true. So I checked the AGICN.org website that maps air quality measurements globally, incorporating data for particulates, ozone, sulfur dioxide and nitrogen oxide. As a proxy for Virginia urban areas, I selected an air quality monitor in downtown Richmond (which turns out to be the second highest of 18 measuring Air Quality Index monitoring stations in Virginia.

Air Quality Index for Brussels, Belgium.

Lo and behold, it turns out that the AQI for Brussels for the past 48 hours is twice that of Richmond. That’s just a snapshot of one particular point in time. Air quality varies with air pressure, humidity, wind, and temperature, so the comparison may or may not be representative of air quality over a full year.

Recognizing that downtown Richmond may or may not be representative of American cities generally, and Brussels may or may not be representative of European cities, I captured a higher-altitude perspective by comparing maps of the Eastern U.S. and most of Europe. Note: The green markers stand for “good” levels of air pollution, yellow for “moderate,” and red for “unhealthy.”

Cass’s statement is almost literally true… but not quite. There are a handful of locations in the U.S. with higher air pollution than Brussels. In the Eastern U.S. only Albany New York had worse air quality, and only by a small margin. Out west, Denver, Colo.; Tacoma, Washington; Long Beach (Los Angeles), Calif.;  and Phoenix, Ariz. were somewhat higher. Iowa City, Iowa’s index was significantly higher — high enough to fall under the “unhealthy for sensitive groups” category.

While air quality varies considerably from country to country, there are large patches in Europe where air quality is problematic, especially in the Belgium-Netherlands area, northern Italy, and big chunks of formerly communist countries. Then, for purposes of comparison, here’s a look at Asia:

Here we get into the “very unhealthy” and “hazardous” air-quality categories. When air quality rates hazardous, “everyone may experience more serious health effects.” It’s almost (but not quite) fair to say that the U.S. city with the dirtiest air is cleaner than the Chinese city with the cleanest air.

Here’s one more map, this one showing how Virginia stacks up to neighboring states: Continue reading

SCC Staff: Convert A Dominion RAC Into A PPA

All-in lifetime revenue requirement for two solar projects related to Facebook. Key data is hidden. Operating and maintenance costs are also kept secret, perhaps to prevent simple math from disclosing the RECs. ARO stands for “asset retirement obligations” and ITC is the federal tax credits. Source: SCC staff testimony.

“Facts are facts, and the SCC does a really good job of compiling them.”  Former State Senator John Watkins of Chesterfield.

After demonstrating that two solar energy facilities Dominion Energy Virginia has proposed in a deal with Facebook leave ratepayers holding all risks, reported already in the Richmond Times-Dispatch, the State Corporation Commission staff suggested an interesting solution that shifts that burden.

“Should the Commission determine that the proposed US-3 Solar Projects are not prudent as filed, the Commission may want to condition approval on the implementation of cost recovery through a rate adjustment clause (“RAC”) based on the market index in lieu of the cost of service model proposed in this case,” wrote Gregory L. Abbott, deputy director of the utility division.  His and other documents are available online.

“This would reasonably protect the nonparticipating customers from performance risk as the customers would only pay for the actual MWhs that the proposed US-3 Solar Projects produce.  Implementing cost recovery through a RAC based on the beginning market index price of $31.82/MWh would also meet the Commission requirement in Case No. PUR-2017-00137 that Schedule RF should be implemented in a manner that holds nonparticipating customers harmless,” Abbott concluded.

So.  Instead of guaranteeing the utility a full return of its capital costs with profit, the SCC might instead charge ratepayers no more than the market value of the power produced.  On this deal, Dominion would be no better protected than an independent merchant power producer.

This little case, involving only 240 megawatts of production and $410 million of construction cost, is important because after Facebook come others with similar or larger appetites.  This is the first of many such arrangements the company expects under its experimental special rate for customers demanding the appearance of green energy virtue.  Any new plants need SCC certificates of public necessity and convenience.

The Commission last year approved the experimental “RF” tariff designed to serve the new Facebook facility and others like it, but included this in the order:  “As acknowledged by the Company, however, our approval herein does not represent a presumption or pre-approval of any subsequent proposals related to Schedule RF….We agree with Consumer Counsel that Schedule RF should be implemented in a manner that holds non-participating customers harmless.”

Here is how it appears to work:  Facebook will buy the same “tainted” power including from fossil fuels and nuclear from the grid as everybody else, but to keep its green cred intact also promises to buy 100 percent of the renewable energy credits and other “environmental attributes”  for a comparable amount of power from solar.  Those contracted payments are applied to the capital pay-off for 20 years and lower the cost of the project for other ratepayers, who will still see a rate adjustment clause (US-3) on their bills.

Dominion is not building solar to connect directly to Facebook, and should a third party try to do that in Dominion’s monopoly territory, heads would roll.  That monopoly is the most valuable asset its stockholders enjoy.  The only difference between this and any other solar project appears to be the sale of the RECs to Facebook instead of into some other market.  I’m open to correction on that point.

One point the SCC staff makes is it didn’t have to be a company-built project.  Staff witness Earnest J. White said Dominion could have met Facebook’s needs by purchasing an existing solar facility. “This option would have permitted the Company to know, rather than estimate, the benefits to customers before exposure to risk of performance,” he wrote.  (Unmentioned by him – that option does not produce 9.2 percent annual return on equity for the utility. )

Another instance of redactions rendering SCC data useless to the ratepayers and reporters.

The revenues from the renewable energy credits at the two plants, along with the tax credits, are applied to the 35-year payoff on the two new solar facilities, reducing costs to ratepayers.  But as the SCC testimony makes clear, two variables then become crucial.  The first is the capacity factor of the project (what percentage of the time power is produced) and the second is the market value of those renewable energy credits.  The two are interrelated because the RECS are based on actual output, not 100 percent capacity – less output, less REC revenue.

Complicating reporting on this case, as usual, are all the key data covered up with black ink or entire memos withheld from public scrutiny.  The projected REC revenue is kept confidential.

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Yes, “Blatant Fear Mongering” Is a Fair Description

Waterway in Dutch Gap Conservation Area depicted in SELC report. If you were a thirsty hiker, would you dip your canteen into this water? Would you drink water like this all year long?

A new report by the Southern Environmental Law Center finds that pollution from Dominion Energy’s Chesterfield Power Station may be leading to an increased health risk for some of the 200,000 visitors to the nearby Dutch Gap Conservation Area. States a press release announcing the release of the study:

There are elevated noncancer hazards and cancer risks for recreational visitors who interact with areas where contamination from the coal ash ponds is migrating into Dutch Gap Conservation Area. … Within these contaminated areas, cancer risks may be up to 10 times higher than the upper limit of what EPA considers “acceptable” cancer risk from polluted sites, and nearly 1,000 times higher than target risk levels.

Or, as summarized by the Richmond Times-Dispatch:

The consultant estimated that elevated levels of toxins such as arsenic in the park could result in an additional 700 to 900 cases of cancer per 1 million people. The standard for pollution remediation set by the Environmental Protection Agency sets the limit at 100 cases per 1 million people.

“It is time to move beyond this claim that there is no health or environmental risk at Chesterfield,” said Nate Benforado, attorney at the Southern Environmental Law Center. “This report raises some serious red flags about the long-term safety of leaving ash in leaking, unlined pits next to a popular park.”

The Times-Dispatch does quote Dominion spokesman Robert Richardson as criticizing the study. The SELC, said Richardson, “should be ashamed of itself for blatant fear mongering. They have taken our data that we shared with state and local officials, our customers, and the general public and compared it to a standard that has no legal or scientific relevance to water suitable for recreational use.”

Let’s take a closer look at the study. Unfortunately, the T-D article does not explain what standards Richardson is referring to. A reading of the study, prepared by Terra Technologies Environmental Services, makes it obvious. The report uses drinking water standards as a measure to assess the risk to recreational visitors to the park. To quote from the study:

Several water quality criteria (WQC) were selected as screening levels. The public water supply (PWS), risk-based tapwater screening levels (tapwater RSLs), and maximum contaminant levels (MCLs) were used as screening levels, in addition to the VA Other Surface Waters (OSW) criteria on the assumption that if the waters were acceptable as a long term drinking water source, all potentially relevant contaminants of concern (COPCs) would be identified.

The report justified the application of drinking water criteria to park visitors on the following grounds:

During swimming, boating, fishing, and other water contact activities — activities that are all offered at Dutch Gap — small amounts of water can be ingested and skin exposure can allow uptake of some contaminants as well. In addition, people visiting or camping in the area could wash their hands, bodies, or camp dishes using the surface water. Therefore, using the PWS to assess potential screening level risks due to incidental contact is appropriate.

Here’s the problem: Drinking-water standards such as Public Water Supply (PWS) standards, are based on the assumption that people drinking the water do so on a continual basis throughout the year. The SELC study is applying those standards to campers, hikers, and kayakers who visit Dutch Gap episodically and may or may not imbibe any water at all. Indeed, common sense suggests that almost no one drinks water straight out of the river. The idea that minute quantities of toxins and carcinogens might enter the body as the result of the water’s contact to the skin has no medical basis. And the volume of toxins and carcinogens that might enter the body after river water has been used to clean dishes, is likely too small to even measure. If there is evidence to suggest otherwise, it is not presented in the report.

So, Richardson’s umbrage, to my mind, is entirely justified.

Comparing apples to oranges. There is one more important point to be made here. While the level of contaminants is, in fact, elevated (although not to the point to represent a threat to recreational visitors to Dutch Gap) and arguably does pose a threat to aquatic wildlife (a point the SELC could legitimately point to), it arises from a decades-old system for storing coal ash. But SELC is not using the elevated contaminant levels merely to criticize the legacy storage system, which Dominion has proposed replacing by de-watering the coal ash, consolidating it into a single impoundment, and capping it with a synthetic liner to prevent rain water from migrating through. SELC wants Dominion to recycle the coal ash, remove it far from the river, and place it in a lined landfill at a potential additional cost of a billion dollars or more.

Maybe Dominion’s proposal will prove effective at eliminating all water contamination, maybe it won’t. SELC has argued plausibly that ground water might migrate through a small portion of the impoundment and leach minute quantities of heavy metals from the ash. But the potential for water contamination from Dominion’s proposed cap-in-place remedy indisputably would reduce the risk of contamination reaching the James River. It is irresponsible and reckless to stoke fears of hundreds of cancer deaths — wildly hyped fears, at that — based on contamination resulting from the aging coal ash storage system that is being phased out.

I have always considered SELC to be one of the more reliable environmental organizations whose attorneys and spokespersons are careful with the facts and shun hyperbole and unsubstantiated statements. This study is a sad departure from the group’s usual standards. The SELC’s hyping of this report can be fairly described as fear mongering. The SELC can do better.

Update: The SELC objects to my characterization of the study. The application of drinking water standards occurs only as a first step of the report as a way to screen out contaminants that need not be considered and focus on the ones that pose a threat to health and the environment. The second step adopts a standard EPA methodology. Read more about their reaction here.

Yeah, Recycling, Landfilling Coal Ash Will Cost Billions

Coal ash at the Chesterfield Power Station. Photo credit: Richmond Times-Dispatch

Under the gun to clean up its coal ash ponds, Dominion Energy hired a consulting firm to develop estimates of what various alternatives would cost. The alternatives preferred by environmentalists and activists — recycling the combustion residue and burying the rest in lined landfills far from rivers and streams — would cost billions of dollars, the study concluded. The environmentalists and activists said the study was flawed. The General Assembly ordered Dominion to issue an RFP to deliver a verdict from the marketplace. The verdict of the marketplace has come in. The alternatives preferred by environmentalists and activists will cost billions of dollars — but maybe not as many billions as Dominion’s worst-case scenario.

To be precise, the cost would range between $2.77 billion and $3.36 billion, according to a statement issued by the company today. The bids, if implemented would recycle about 45% of the ash into cement, wallboard and other products. The rest of the ash would be placed in a landfill over a 15-year period.

Dominion has accumulated millions of tons of coal ash, which can leak heavy metals that are toxic in sufficient concentrations, in ash ponds at its Chesterfield, Possum Point, Chesapeake, and Bremo power stations. To meet Environmental Protection Agency guidelines, the utility has de-watered the coal ash at Possum Point and Bremo but has been prevented from consolidating and capping the material on site, as it originally proposed. Environmentalists are concerned that groundwater might migrate through the impoundments and leach heavy metals that could reach rivers, streams, or well water.

Dominion already recycles 500,000 tons of coal combustion byproducts each year, but critics have argued that it could process more — Virginia actually imports coal ash from other states and overseas.

The company received 12 proposals for recycling ash for each of the four power stations. The total cost in the $3 billion range is somewhat less expensive than the $2.6 billion to $6.5 billion indicated by Dominion’s earlier study, but it is significantly more costly than critics had hoped for.

Dominion will report its bids to the General Assembly for follow-up.

In other coal ash action, Dominion announced that it had reached a Memorandum of Understanding with the state to close and monitor the coal ash ponds at the Chesapeake Energy Center. Also, groundwater monitoring at six power stations — Chesterfield, Possum Point, Bremo, Yorktown, Clover and Virginia City Hybrid Center — have been found to have no impact on drinking water or public health. Further, Dominion said it would submit a regulatory filing to recover costs associated with “managing coal ash at several power stations.”

“We plan to take a close look at this report and hope that it provides a more realistic take on recycling options in Virginia than the assessment Dominion provided last year,” said the Southern Environmental Law Center (SELC) in a statement today. “We know that coal ash can pose risks to our health and environment, and recycling offers a smart, cost-effective solution. It’s time Virginia joins the other states that are turning coal ash closure into a win-win.”

The SELC also lauded the Chesapeake Energy Center agreement, which it said will require the facility to meet the same standards as all coal ash facilities across the state. Said Deborah Murray, senior attorney, Southern Environmental Law Center: “This agreement is a strong signal that the administration is taking coal ash remediation in Virginia seriously. Dominion tried to keep most of the coal ash at the Chesapeake site—roughly 2.1 million tons of ash in leaking, unlined pits—off the radar, but under this agreement the company’s closure plan must deal with this ash in accordance with the standards set forth in the EPA’s Coal Combustion Residuals Rule.”

Update: The Richmond Times-Dispatch is reporting a larger number for the potential cost of recycling/landfilling than I did.  I should have made clear that the cost I reported, up to $3.36 billion, applies if all the work is given to a single bidder. The higher figure reported by the Times-Dispatch, $5.642 billion, applies if material at all four sites is recycled by individual bidders. I reported the lower number because I could see no reason why anyone would go with the higher-cost approach.