SB 807 Implementation Status Update October 2018

Coal Ash Ponds To Be Closed Four locations, eleven ponds Stored in “ponds” Ash mixed with water, ash sinks to bottom Material in ponds may be decades-old 27,285,000 Cubic Yards in Ponds, equivalent to 1,746,000 Truckloads Ponds total approximately 461 acres EPA issued regulations in 2015 requiring closure by: Cap and close in place or removal (ash can be consolidated, landfilled, or recycled) Closure will be triggered in 2019 – maximum of 15 years to close Since then began filtering, testing, and removing water and consolidating ash from smaller ponds 2017 legislation called for report of closure options by location Possum Point (5) Prince William County Bremo (3) Fluvanna County Chesterfield (2) Chesapeake (1)

Recent Court Decisions Fourth Circuit On September 12, 2018, the Fourth Circuit Court of Appeals ruled that Dominion Energy’s coal ash facilities at the Chesapeake Energy Center did not violate the Clean Water Act or the site’s Virginia Department of Environmental Quality-issued water discharge permit. The court confirmed the Virginia Department of Environmental Quality’s longstanding regulatory approach for the site, holding that groundwater impacts at the site did not constitute point source pollution subject to the Clean Water Act but were properly regulated under state and federal solid waste regulations applicable to coal ash. The Sierra Club has filed a petition for rehearing with the Fourth Circuit, which remains pending. “For the reasons given, we reverse the district court’s conclusion that Dominion violated the Clean Water Act, and we affirm its ruling that Dominion did not violate the two Conditions of its Clean Water Act discharge permit issued by the VDEQ.”  

Recent Court Decisions Sixth Circuit • On September 24, 2018, the Sixth Circuit Court of Appeals issued two decisions related to coal ash facilities in Tennessee and Kentucky, holding that neither the Clean Water Act nor the respective states’ water discharge permits regulate pollutants that reach navigable (surface) waters via groundwater. The Sixth Circuit similarly concluded that federal and state solid waste regulations – and particularly the U.S. Environmental Protection Agency’s 2015 ash rule – are the proper framework for addressing the type of pollution the plaintiff environmental groups complained about. These cases, along with two others now seeking U.S. Supreme Court review, address several distinct issues around the scope of the Clean Water Act’s water discharge permitting program. In addition, the US EPA earlier this year requested public comment in order to help clarify its position on these issues.

SB 807 Summary Closure of empty ponds allowed Ash has been or will be removed from 6 of the 11 ponds Permitting of cap-and-close in place of existing ash halted for facilities in Chesapeake Bay watershed Requires request for proposals (RFP) to recycle or encapsulate material Business plan, RFP results to be reported by November 15, 2018 Includes 1 pond at Possum Point, 1 pond at Bremo, 2 ponds at Chesterfield, and Chesapeake ash facility complex Timeline June June July-Aug. September October November Open House for Potential Bidders RFP Issued, Open to Bidders Site Tours for Bidders Bidders Submit RFPs Evaluate Bids Report filed

SB 807 RFP Process Initial Outreach Developed broad list of potential bidders. Developed dedicated email address for communication with interested parties. Held an Informational Meeting on June 5, 2018 for potential bidders. 86 individuals from 51 different firms attended. .

SB 807 RFP Process Bidder Interest Civil Work includes: 26 suppliers indicated interest in bidding. All 26 executed the follow-up nondisclosure agreement. Sought complete bids to include a full-service offering of civil work and recycling. Provided opportunity for companies to connect and partner (includes small companies connecting with larger companies, civil with recyclers, etc.) Bidders that put in full service bids could also put in alternative bids for just a portion of the project. Civil Work includes: Excavation, Water Removal, Drying and Screening Ash Recycling includes: Permitting & Construction of Recycling Facility, Recycling, Processing, Transportation

SB 807 RFP Process The RFP Questions Issued to the 26 interested bidders on June 29, 2018. Pre-bid meeting held for all prospective bidders on July 16, 2018 at the Chesterfield Power Station. 57 personnel from 23 different firms attended. Following the Pre-Bid Meeting, site walks were held at each of the 4 stations and were followed by optional supplementary site visits to each site. RFP bids were due September 14, 2018. Questions Bidders submitted questions Requests for Information throughout the RFP process. Responses were issued on a weekly basis as received. A total of 115 RFI questions were asked and responded to, with an additional 12 Dominion Energy clarifications provided to ensure that bidders were provided with consistent, clear direction to finalize their bid responses.

SB 807 RFP Process The Response Sample bid evaluation criteria: A total of 12 responses were received. Over 2,100 pages of information received and being evaluated. Met with bidders week of October 1 to discuss their proposals. Follow up questions were sent to the bidders with expected responses by Oct 12. Sample bid evaluation criteria: Demonstrated safety and environmental records, financial strength, market for products produced, as well as experience or proven technology viability Time to completion, market for material Final report will include cost estimates for each site, including civil work and recycling/encapsulation and transportation of the end product