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Terrapure is proud to have received the 2016 Industry Excellence Award for Health & Safety from Natural Resources Magazine. Stoney Creek Regional Facility Environmental Assessment $SSURYHG$PHQGHG Terms of Reference 1195 Stellar Drive, Unit #1 Newmarket Ontario L3Y 7B8 Canada11102771 | Report No 16 | 1RYHPEHU9 November 16, 2017 Reference No. 11102771 Dear Madam/Sir: RE: Approved Amended Terms of Reference Stoney Creek Regional Facility Environmental Assessment Terrapure Environmental Please find attached the amended Terms of Reference (ToR) for the Stoney Creek Regional Facility (SCRF) Environmental Assessment (EA) approved by the Minister of the Environment and Climate Change (Minister) on November 9, 2017. As per the Notice of Approval, the amended ToR has been revised to include the amendment specified by the Minister in his approval. Specifically, Subsection 2.1.1 Receiving Post-Diversion Material at the SCRF has been amended as follows: From: Proposed Amended Terms of Reference (May 9, 2017) The material accepted at the SCRF comes from a variety of customers and businesses that divert at their own operations and have implemented their own diversion and recovery system. Terrapure has Standard Operating Procedures (SOP) that addresses the screening and verification of material that is received on-site to ensure the materials received on-site match the Generator’s Waste Profile, and that the Generator of the material has made the determination that the material cannot reasonably be diverted. Diversion at the source of the generated residual material from generators and customers considers both the economic viability of diversion as well as ensuring that there is a viable end market for the diverted material. It is not appropriate or reasonable for Terrapure to develop a diversion plan at the site given that the volumes of material that could be potentially diverted are minimal, and lack an established and financially viable end-market. Regardless, in the spirit of the Province’s new Waste Free Ontario Act (WFOA) that sets goals to increase diversion in Ontario, Terrapure will review the potential for on-site diversion as part of the SCRF EA, (i.e., viability and financial feasibility of diversion for the types of materials received at the site currently). Terrapure will also work with its customers to continue to ensure diversion at the source of the generated material takes place. Terrapure Stoney Creek Regional Facility 65 Green Mountain Road West, Hamilton, Ontario L8J 1X5 Canada T 1-844-898-2380 W www.terrapurestonecreek.com 2 To: Approved Amended Terms of Reference (November 9, 2017) The material accepted at the SCRF comes from a variety of customers and businesses that divert at their own operations and have implemented their own diversion and recovery system. Terrapure has Standard Operating Procedures (SOP) that addresses the screening and verification of material that is received on-site to ensure the materials received on-site match the Generator’s Waste Profile, and that the Generator of the material has made the determination that the material cannot reasonably be diverted. Diversion at the source of the generated residual material from generators and customers considers both the economic viability of diversion as well as ensuring that there is a viable end market for the diverted material. Although there is minimal waste material received at the SCRF that has the potential to be reasonably diverted or recycled, Terrapure will examine and evaluate the feasibility and viability of implementing an onsite diversion program as part of the environmental assessment process. This will include the consideration and assessment of a reasonable number of ways in which to divert the types of waste materials received at site. The assessment of an onsite diversion program will be carried out in accordance with best management practices, in consideration of new and emerging technologies, and in recognition of the goals and expectations set forth in the Waste Free Ontario Act. Kind Regards, GHD Blair Shoniker, MA, RPP Project Manager Office: 905-429-5040 Mobile: 647-525-9798 On behalf of Terrapure Environmental Terrapure Stoney Creek Regional Facility 65 Green Mountain Road West, Hamilton, Ontario L8J 1X5 Canada T 1-844-898-2380 W www.terrapurestonecreek.com 2 Executive Summary Terrapure Environmental (Terrapure) is seeking approval under the Ontario Environmental Assessment Act (EA Act) to increase the total approved capacity for post diversion solid, non- hazardous industrial residual material at the SCRF by 3,680,000 cubic metres (m3) so that Terrapure can continue to operate its business and receive this material to support local industry. This Terms of Reference (ToR) sets out the proposed framework for the planning and decision- making process to be followed during the preparation of the SCRF Environmental Assessment (EA). Currently, the SCRF is approved to receive up to 6,320,000 m3 of post-diversion solid, non-hazardous industrial residual material and approximately 2,000,000 m3 of industrial fill. Based on historic annual disposal fill rates for residual material, there is approximately 2-4 years of residual capacity remaining at the SCRF as of the end of 2016. Based on the current economics and market dynamics for industrial fill, the original market demand is significantly less than what was forecasted and the financial viability of the SCRF is therefore negatively affected under the current approvals. As per the business case established by Terrapure, given that there is a continued strong market demand for residual disposal capacity for the foreseeable future, Terrapure wants to take advantage of the economic opportunity for capturing post-diversion solid, non-hazardous industrial residual materials by increasing its approved capacity for this material by 3,680,000 m3. The proposed undertaking will allow the facility to maintain its standing as a regional facility and provide continued service to the H>A market for local and regional customers. The SCRF EA will be prepared in accordance with subsections 6(2)(c) and 6.1(3) of the EA Act. As such, this ToR identifies a predetermined “Alternative To” and identifies the “Alternatives Methods” that will be examined during the preparation of the SCRF EA. As a private sector Proponent with a current facility, expansion of the existing facility is the most reasonable solution to addressing an economic opportunity. Discussion on the business plan and economic opportunity (Purpose of the Undertaking), as well as what options Terrapure is able to consider, was prepared within the context of Terrapure operating the SCRF as a private facility within the Province of Ontario and is highlighted in Supporting Document #1 to the ToR. Based on the capacity increase described above, the Alternative Methods of Carrying Out the Undertaking that will be considered by Terrapure as part of the SCRF EA include, but may not be limited to, the following: • Alternative Method No. 1: Reconfiguration of the SCRF • Alternative Method No. 2: Horizontal Expansion of the SCRF • Alternative Method No. 3: Vertical Expansion of the SCRF • Alternative Method No. 4: Reconfiguration and Horizontal Expansion of the SCRF • Alternative Method No. 5: Reconfiguration and Vertical Expansion of the SCRF • Alternative Method No. 6: Horizontal and Vertical Expansion of the SCRF GHD | Terrapure Environmental | Proposed Terms of Reference | 11102771 (16) The assessment and comparative evaluation of the Alternative Methods will utilize the following three steps. • Step 1 – Assessment of alternative methods, using critieria and indicators grouped into the five environmental components: natural, built, social, economic, and cultural. • Step 2 - Comparative evaluation of the Alternative Methods and selection of the recommended Method. • Step 3 – Identification of the Preferred Method following consultation with review agencies, Aboriginal communities, and the public. Upon completion of this three-step comparative evaluation, an impact assessment of the Preferred Method will be undertaken. Extensive consultation was undertaken with review agencies, Aboriginal communities, and the public (i.e. stakeholders) during the development of the SCRF ToR and prior to the submission of this ToR to the Minister for review and approval. In light of consultation activities carried out prior to the submission of this ToR, numerous comments were received which Terrapure considered as part of finalizing the Terms of Reference. Similar to consultation activities carried out during the preparation of the ToR, proposed consultation activities for the SCRF EA will include, but will not be limited to the following: • Notifications • Meetings and Presentations • Community Liaison Committee Meetings • Public Open Houses • Project-specific Website and Social Media Consultation efforts will be ongoing throughout the SCRF EA process. However, Terrapure is proposing the following three key decision-making milestones for when main consultation events will occur during the preparation of the SCRF EA: 1. Alternative Methods 2. Impact Assessment of the Preferred Method 3. Pre-Submission of the Draft SCRF EA Report If approval of this ToR is granted by the Minister, the SCRF EA will be prepared in accordance with the approved ToR. Notwithstanding this, circumstances may arise during preparation of the SCRF EA that could prevent the proposed framework from being carried out exactly as outlined in the approved ToR. As a result, flexibility has been