Duke Energy will apply to N.C. Department of Environment and Natural Resources (DENR) to build fully lined coal ash landfills at its Sutton Plant in New Hanover County as well as at its Dan River Plant in Eden, North Carolina. Duke announced its plans Wednesday.

There is pressure from the state on Duke to clean up existing coal ash storage at former coal-fired electric plants around the state. Last month, groundwater contamination from coal ash at the Sutton Plant near Wilmington resulted in the largest penalty for environmental damages ever levied by the state: a $25.1 million fine against Duke Energy Progress, the Duke division in eastern North Carolina. The amount was “based on the extent of impacts to groundwater, the characteristics of the constituents causing the impacts and the duration of the violations,” according to a March 10 news release from DENR.

Duke Energy subsequently announced it plans to appeal the fine.

The newly proposed landfills, according to a news release, will be located on plant property and will provide a permanent storage solution for more than 6 million tons of coal ash at the two sites.

The Sutton plant has a total of 7.2 million tons of coal ash currently on site, according to Duke Energy spokesman Jeff Brooks. Slightly more than 5 million tons would be stored in the Sutton site landfill, he said Wednesday.

Both the Sutton and Dan River sites will have capacity for further excavation, should more coal ash storage be needed, according to the release.

The first of the Sutton Plant landfill permits will be submitted to DENR in May, with construction of the landfill expected to begin in early 2016, pending necessary regulatory approvals, Brooks said, adding that Duke Energy expects landfill operations to begin in late 2016.

“This plan is a significant step forward in our strategy to close ash basins and manage coal ash across our service area,” John Elnitsky, Duke Energy senior vice president of ash basin strategy, said in the release. “Our preference is to store coal ash at or near our plant sites, when possible. Siting these landfills on plant property minimizes impacts to the local community while maximizing the safe and efficient storage of coal ash at these locations.”

The proposed landfills are a second phase of coal ash disposal.

In November, Duke Energy submitted to regulators a plan that calls for about 5 million tons of coal ash – including 2 million tons from the Sutton Plant – to be removed from four electric plants in the state and stored remotely.

This first phase of disposal for the Sutton plant calls for the 2 million tons of ash to be taken by rail to former clay mines in Chatham County, where it will be used for structural fill, according to a news release issued by Duke Energy on Nov. 13. The remaining 5.2 million tons, then, would be stored as outlined in the Duke Energy proposal released today.

Work on phase one will begin within 18 months after Duke Energy receives approvals and permits from DENR, the November release stated.

"We are hopeful that if we receive the necessary approvals, we could begin phase one as early as fall of this year," Brooks said. "Coal ash removal to Chatham County could be concurrent with the beginning construction of the Sutton landfill."

Officials at DENR appeared to view Duke Energy's latest proposal in a positive light.

“The plans Duke Energy announced today for the Sutton and Dan River ash basins are consistent with the excavation plans they submitted to us in November and with the comments we sent back to them,” Tom Reeder, DENR's assistant secretary for environment, said in an email Wednesday. “In order to reduce the environmental threat to our waterways and groundwater, we hope the U.S. Environmental Protection Agency will act quickly on the discharge permits they are reviewing. We cannot move forward with this process until that review is complete.”

So far, DENR has held public hearings about the requested permits for phase one removal, said DENR spokesman Jamie Kritzer on Wednesday.