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FACT SHEET SB 967 (Creation of Yadkin River Trust) ' Senators Hartsell; Berger of Rockingham, Bingham, Clodfelter, Purcell, Rand and Tillman ' In 1958, Alcoa received a 50-year federal license to utilize the Yadkin River to generate hydro power. To support its case, Alcoa presented evidence that if the Government granted it the license, it could create and maintain almost 1,000 jobs at the Badin Aluminum Smelting Works because of the cheap power available. This promise was specifically noticed as evidence of the public interest necessary to Brant the 1958 license. ' Alcoa eliminated almost all of those jobs, which has closed its smelting facility. This has created a devastating economic and environmental impact on the region. As Jack Betts ' recently noted in The Charlotte Observer, Alcoa "lost its best argument for renewal about 1,000 jobs ago." If Alcoa receives another 50-year monopoly, this time Alcoa will not be using any of the electricity generated by the Yadkin Project to create jobs for the people of North ' Carolina. Instead, Alcoa will use the public waters of the Yadkin River to generate electricity at an enormous profit to be sold to the highest bidder on the interstate electricity grid. ' Even worse, Alcoa could sell the license and the hydro project to a foreign company that would exercise control over the waters that the law says belong to the people. Despite what you may begin hearing, this bill has nothing to do with eminent domain and does not take property from anyone. The federal government is the only entity ' that can decide to return control of the water to the State of North Carolina. SB 967 simply creates an entity that can hold the federal hydro license in trust for the benefit of the people of North Carolina if the federal government decides to give the license back to the state. Alcoa acknowledged back in 1958 that the return of the license and control of the water by the public was a condition of the 50 year license it received. ' In fact, in its relicensure application, Alcoa even set forth the statutory repayment price if the federal government exercises its right to act on behalf of the people. 1 The other argument you will hear is that this bill would cost North Carolina "millions" to pay the statutory recapture price. In fact, it will cost the state nothing because the Yadkin River Trust is designed with the ability to issue revenue bonds for the purchase and improvements. Even if Alcoa's conservative estimate of an annual profit of $8 million is accurate, the Yadkin River Trust will easily be able to finance the project without costing the taxpayers of North Carolina one penny. Prepared by Tracy Kimbrel% Mike Taylor and Bruce Thompson, Lobbyists for Stanly County F-2 Attachment number 2 Page 47 of 320