VinFast Update
In the weeks since HRA submitted a report which included field data and aerial photos documenting the sediment control measures at the VinFast site, surrounding streams and wetlands continue to be impacted and construction has continued apace. Recent sampling found turbidity levels in Shaddox Creek were > 200 NTUs and in a tributary feeding Gulf Creek, > 400 NTUs. N.C. Administrative Code (15A NCAC 02B .0211) requires that turbidity in receiving waters not exceed 50 NTUs in non-trout streams and 10 NTUs in trout streams. NTUs stands for nephelometric turbidity units, a measure of how much light is scattered when directed at a water sample when analyzed with a turbidity meter.
In response to our report, staff from the NCDEQ Department of Energy, Minerals and Land Resources conducted a full inspection of this phase of the project, roughly 230 acres of the 1300 planned acres was open. This on the ground inspection did not determine that any erosion and sediment control measures were failing or insufficient, and in practice were functioning as they were intended. Contractors agreed to make some adjustments and try new approaches to lower the turbidity of water leaving the site into adjacent wetlands and streams. Turbidity and discoloration of adjacent water was noted by DEMLR staff, but crucially this agency branch does not measure turbidity, though they are the state regulating branch for erosion and sediment control. The NCDEQ Division of Water Resources is the branch concerned with water quality violations. DEMLR committed to monthly inspections going forward to address sediment or runoff issues.
Another important regulatory context for the VinFast site or any project receiving public money, is that jurisdiction for erosion and sediment control falls to NCDEQ, rather than what would be typical oversight by a county or municipal local program, which Chatham County does have. The permitting process for the VinFast manufacturing facility and campus is still on-going, as of this writing, a 404 permit has not been approved by the US Army Corp of Engineers (ACoE) and so neither has a state 401 permit been approved. 404 refers to Section 404 of the Clean Water Act, which requires authorization from the Secretary of the Army, acting through the Corps of Engineers, for the discharge of dredged or fill material into all waters of the United States, including wetlands. The 401 permit refers to Section 401 of the Clean Water Act. The North Carolina Division of Water Resources (DWR) is the state agency responsible for issuing 401 water quality certifications. When the state issues a 401 certification (which is required for any federally permitted or licensed activity that may result in a discharge to waters of the U.S.), this certifies that a given project will not degrade Waters of the State or violate State water quality standards (from https://www.deq.nc.gov).
The 404 permit for VinFast was applied for in November of 2022, public comments were submitted, ACoE requested and received more information in March 2023 and has yet to grant. The 401 permit review period was extended and NCDEQ has until June 30 2023 to evaluate. Following up on these permits processes, HRA was told that no permits were needed for this phase of construction and instead staff worked with DWR to avoid working in sensitive areas and that this was generally preferred by the permit issuing agencies. This is especially concerning for HRA and the surrounding community, as wetlands and waterways are clearly being degraded by this construction, regardless of whether permits were required to begin work on this phase or sediment control measures are functioning as intended. From a larger perspective, the state has already committed $1.2 billion in incentives to the VinFast electric vehicle manufacturing plant, the largest in state history. VinFast in March delayed plant operations until 2025, citing “procedural delay,” specifically related to the ACoE 404 permit. To witness these environmental impacts amid a curiously oblique permitting process in these early stages does not provide confidence in this project’s commitment or ability to prevent irreversible damage to North Carolina forests, wetlands, streams and rivers. These impacts are in addition to the irrevocable changes which will come to communities in Chatham County as a result of this facility and the transportation and utility infrastructure needed. In May, VinFast recalled almost 1000 vehicles, all of its first round of US vehicles, over safety concerns. In the first quarter of 2023, VinFast reported $599 million in losses, and removed any time reference for start of production in its latest financial regulatory filing.
We are currently seeking clarification on the permitting processes and regulatory statutes relevant to the VinFast site and will continue to document sediment and any other pollution issues as construction moves forward.