INNOVATIVE SOLUTIONS Advanced Wall Technologies, LLC

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1 FOR DUKE ENERGY INNOVATIVE SOLUTIONS

2 Background On Sunday, February 2, 2014, Duke Energy employees noticed coal ash waste was spilling from one of its coal ash ponds into the Dan River near Eden, North Carolina. This spill trigged much debate on the proper handling of coal ash in wet basins, both inactive and active facilities. Following the Dan River coal ash spill, revelations that coal ash pollution has contaminated rivers, lakes, streams and drinking water resulted in an unprecedented public demand for action. Duke Energy produces an estimated 1.2 million tons of coal ash a year in North Carolina. It has been reported by media that all coal ash sites have groundwater contamination and nearly all are releasing contaminants into rivers, lakes or reservoirs. On August 20, 2014, the NC General Assembly passed S 729, the Coal Ash Management Act of The bill requires Duke Energy to phase out wet ash handling. Duke s method of disposing of coal ash in ponds next to waterways has led to concerns over water contamination across the state. With the passage of this bill, all coal ash will be covered by North Carolina s solid waste laws. Further, when coal ash is used as fill to build up land for large construction projects, measures like groundwater monitoring and liners will be required. How it Could Work Based on the new laws and the desire of Duke to do things more sustainable and green oriented in the future, Duke has an opportunity with industry partners to be a leader concerning coal ash management. A potential partner solution would be to use the AWT system of encapsulation in every facet of the strategic solution. Depending of physical characteristics of each facility, Duke faces a myriad of choices, such as: to close ash ponds in place, relocate ash to another part of its property, convert the pond to dry storage, or ship ash out to a beneficial reuse project using different aspects of the AWT system. Compared to the solutions pushed by some groups, the AWT system allows for coal ash re-use, which benefits the environment and provides Duke tremendous economic relief. There is no reason to have any coal ash shipped out for straight disposal. Why use valuable landfill space with a product that has tremendous value as structural fill or re-use in everyday products, such as concrete and bricks. AWT believes that allowing engineering firms, material ash management companies, and municipal or private landfill owners to try and piece together a solution is the wrong approach. Duke needs to be in charge and should consider a global approach to manage the situation and deploy the proper technology and partners on a facility by facility basis to reduce cost while balancing environmental needs. August 2014 Page 2

3 Duke Options (ranked by financial priority) ONSITE: Cap in Place Maintain proper hydrostatic barriers and create structure stability AWT Innovative Solution By utilizing the AWT technology, Duke could use the coal ash to fix itself. ONSITE: Wet Basin to Dry Disposal Conversion Creating a dry, lined disposal facility ONSITE: Creation of Dry Disposal Capacity Moving coal ash away from streams, rivers & wetlands OFFSITE: Utilize Large Scale Beneficial Use Fill Projects Providing coal ash as a fill material to current and future beneficial use projects OFFSITE: Ship Offsite for Disposal By utilizing the AWT technology, Duke could use the coal ash to convert the wet basin to a dry disposal facility. By utilizing the AWT technology, Duke could use the coal ash to create the dry disposal facility. By utilizing the AWT technology, Duke could control the solution outside their facilities by selling their coal ash. AWT does not support this option. August 2014 Page 3

4 Cap in Place SOLUTION Use your coal ash to fix itself. By converting to dry storage and combining AWT s encapsulated berm technology with standard capping geosynthetic solutions, Duke could utilize a hybrid cap. The hybrid cap will use the coal ash to construct a perimeter berm extending well below the ground surface, creating a hydrostatic barrier and natural buttress under the base of the AWT berm system. Each section of the Hybrid Cap system will extend to the middle of the basin, creating a pinwheel structure. Perimeter embankment can be replaced with an AWT ash-geosynthetic wall Can be located 50 to 75 feet inside of current CCR waste boundary to allow future GW control methods AWT wall is a Subtitle D lined approach that also addresses future EPA changes to CCR regulation A geomembrane option (GCL or 30-mil FML) is the preferred long term remedy for areas with groundwater impacts. Innovative and Additional Cost Saving Option 2014 AWT IP, LLC Copying or reproduction of this drawing in whole or part is strictly prohibited without prior permission of AWT, LLC. PATENT No. 8,376,657, PATENT No. 8,430,600, PATENT No. 8,727,664, PATENT No. 8,784,008 & PATENTS PENDING Some or all of the technology illustrated in the drawing is covered by one or more of PATENT No. 8,376,657, PATENT No. 8,430,600, PATENT No. 8,727,664, PATENT No. 8,784,008, or pending US patent applications held or submitted by AWT IP, LLC. August 2014 Page 4

5 Wet Basin to Dry Disposal Conversion SOLUTION By using AWT s encapsulated berm technology to convert the wet basins to dry lined storage facilities provides Duke a better environmental and cost effective solution. The creation of a lined disposal footprint, constructed in phases, could include ALL material at the facility. This would result in an ultimate clean closure and removal of potential source material from the basins. If clean closure is chosen, the amount of dirt needed to fill from below the ground water could be obtained from the dirt berms around the basins and therefore minimize cost and make the option more feasible to everyone. with standard capping geosynthetic solutions. Use your coal ash to fix itself. Can allow basin to be converted to dry disposal while basin can function until transition complete. Maximize ash for use in the AWT berm construction to therefore shrink the overall footprint of the constructed landfill AWT berm or curtains constructed through basin. AWT berm constructed with removed ash around perimeter. Composite liner installed using additional geogrid underlayment. Innovative and Additional Cost Saving Option 2014 AWT IP, LLC Copying or reproduction of this drawing in whole or part is strictly prohibited without prior permission of AWT, LLC. PATENT No. 8,376,657, PATENT No. 8,430,600, PATENT No. 8,727,664, PATENT No. 8,784,008 & PATENTS PENDING Some or all of the technology illustrated in the drawing is covered by one or more of PATENT No. 8,376,657, PATENT No. 8,430,600, PATENT No. 8,727,664, PATENT No. 8,784,008, or pending US patent applications held or submitted by AWT IP, LLC. August 2014 Page 5

6 Creation of Dry Disposal Capacity SOLUTION By using AWT s encapsulated berm technology to create dry lined storage facilities provides Duke a better environmental and cost effective solution while keeping liability onsite. Use your coal ash to fix itself. Moves liability away from Dan River (in this example) Keeps liability onsite instead of trucking to multiple locations Maximizes Onsite Capacity Minimizes Permitting Timelines Minimizes Unit/Cost per Disposal Cubic Yard compared to trucking offsite Allows ash to be safely and reliably re-used in berms greatly reducing costs safely and effectively. Innovative and Additional Cost Saving Option 2014 AWT IP, LLC Copying or reproduction of this drawing in whole or part is strictly prohibited without prior permission of AWT, LLC. PATENT No. 8,376,657, PATENT No. 8,430,600, PATENT No. 8,727,664, PATENT No. 8,784,008 & PATENTS PENDING Some or all of the technology illustrated in the drawing is covered by one or more of PATENT No. 8,376,657, PATENT No. 8,430,600, PATENT No. 8,727,664, PATENT No. 8,784,008, or pending US patent applications held or submitted by AWT IP, LLC. August 2014 Page 6

7 Utilize Large Scale SOLUTION Beneficial Use Fill Projects AWT s technology/method allows for the beneficial reuse of certain materials in the wall construction, dramatically decreasing or eliminating the financial burden of the construction. The delivery cost of Duke s coal ash can be negotiated downward by sharing in the overall construction savings by the facility. Use your coal ash to fix itself. Significantly reduces project costs to the end-user. Duke can partner with project end-user, participating in the cost savings. Allows for established area landfills, capacity constrained, to take large volumes of beneficial reuse materials (ash). Minimizes Unit/Cost per Disposal Cubic Yard compared to straight offsite disposal. Allows ash to be safely and reliably re-used in berms greatly reducing costs safely and effectively. Innovative and Additional Cost Saving Option August 2014 Page 7

8 How Does it Work? Utilize coal ash as a beneficial waste material in berm construction. Encapsulation keeps water out. Patented technology delivered in many forms. Partial Encapsulation, PETERSBURG, VA S. Fill Waste Product Full Encapsulation, CHESTER, VA AWT Patented Technology August 2014 Page 8

9 The Inner Workings AWT Patented Technology August 2014 Page 9

10 Unlike traditional MSE berms, the AWT MSE berm has an internal geomembrane envelope that completely encapsulates the fill material. Advantageously, this encapsulation enables the use of beneficial reuse material as fill material. It is also effective in limiting the risk of seismic events. This allows for utilities to increase dry disposal capacity at a cost generally less expensive than new facility construction. Besides the overwhelming financial advantages, the AWT MSE Berm System has environmental advantages also; The AWT system is a GREEN option. 99.7% of the AWT MSE Berm System is constructed with recycled fill materials These beneficial use materials such coal combustion products - CCP s (fly ash, bottom ash, synthetic gypsum, boiler slag), Incinerator ash, Non-hazardous impacted soils of all types, foundry sands, properly de-watered and stabilized dredge material, crushed concrete, crushed glass, drill cuttings, and other reclassified waste materials. AWT supports recycling and RESPONSIBLE Re-Use. The AWT system is a SAFER option then a traditional MSE Berm. The main reason is that the encapsulated AWT MSE Berm System provides liquid/pore pressure management proactively by removing liquids via patented drainage system. No liquids = No liquefaction! AWT prides itself on the ability to configure the berm system (using its vast design portfolio) to meet certain facility constraints. For example, if the facility has soft base grades or streams, wetlands or marsh areas adjacent to MSE berm, a group of the AWT designs deal with this by extending the encapsulation well below the base grade providing a firm foundation, a natural buttress and a hydrostatic barrier. August 2014 Page 10