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Final Environmental Report Frederick House River – Wanatango Falls Hydroelectric Generating Station Project Wanatango Falls GS Final Environmental Report June 2014 FOREWORD The Final Environmental Report Xeneca Power Development Inc. (Xeneca), the project proponent, is pleased to present the Final Environmental Report (ER) for the proposed Wanatango Falls Hydroelectric Generating Station on the Frederick House River (the “project”). This document represents the culmination of important and considerable joint effort among Xeneca, regulatory agencies, local residents, public stakeholders and Aboriginal communities over the last four years. It was prepared to meet the requirements of the Ontario Environmental Assessment Act and the objectives of the Green Energy Act. One function of this Final report is to advise the public and government ministries and agencies on the outcomes of the completed studies and consultations. Xeneca has welcomed comments and questions about the proposed project throughout the ER preparation period. Submission of this final report under the Waterpower Class Environmental Assessment (EA) process represents a significant milestone in the obligations to the Ontario Power Authority under the Feed-In Tariff (FIT) contract issued to Xeneca for this undertaking. In order to initiate construction, Xeneca is required to successfully satisfy the requirements of the Waterpower Class EA, and subsequently obtain all applicable provincial and federal regulatory permits and approvals; receive approval for final engineering design; and obtain approval of detailed plans and specifications, all within a relatively aggressive schedule. Xeneca has undertaken a multitude of investigations and studies of the project site spanning a four year period (2010 to 2013) that has included natural habitat studies; archaeological investigations; water quality and fish tissue sampling; geotechnical studies; public and agency consultation; and engagement with Aboriginal communities. Xeneca is pleased with the contribution of all agencies in reaching this milestone and looks forward to a continued positive working relationship on the detail design, permitting and construction parts of the project to meet the FIT program contractual agreements to have the project in-service by October 2018. Advancing Provincial Strategies The government of Ontario is steadfast that a reliable supply of clean energy is necessary to maintain a strong economy and a healthy and prosperous quality of life for Ontario’s growing population. The provincial government has also placed a priority on expanding the amount of energy produced from renewable energy sources. Renewable energy development is a cornerstone of the province’s future prosperity and its commitment to protecting the environment. The Ministry of Natural Resources (MNR) has stated that renewable energy projects contribute to the environmental, social and economic wellbeing of the province. Renewable projects such as i Wanatango Falls GS Final Environmental Report June 2014 waterpower help reduce the impacts of climate change and provide sustainable sources of energy. Supporting the government’s green energy initiative, the MNR makes Crown land available for renewable energy development including waterpower (Ministry of Natural Resources, http://www.mnr.gov.on.ca/stdprodconsume/groups/lr/@mnr/@renewable/documents/documen t/stdprod_087667.pdf). The proposed Marter Township project helps fulfill the MNR mandate to support the government’s green energy initiative. Waterpower continues to help to fuel Ontario's growth and is the backbone of Ontario’s renewable power supply. In 2011, 22% of electricity generated in Ontario came from hydroelectric facilities. Waterpower has a number of benefits over other sources of clean energy since it can easily respond to sudden changes in energy needs and the facilities generally have long life cycles, on the range of 75 to 100 years. Waterpower is a reliable, clean, local and naturally recurring source of energy. The Ministry of Energy document referenced below notes the additional benefit of water level and flow management provided by reservoirs and dams that help to support recreational activities and contribute to public safety by minimizing flooding (Ministry of Energy, http://news.ontario.ca/mei/en/2010/08/waterpower-projects-support-local- communities.html). Waterpower is a key contributor to implementing the Ontario government's 20-year Long-Term Energy Plan, Building Our Clean Energy Future. This plan includes building the largest expansion in hydroelectric power in almost 40 years (Ministry of Energy, http://news.ontario.ca/mei/en/2011/02/long-term-energy-plan-takes-another-step-forward.html). The government of Ontario has committed to continue to grow its hydroelectric capacity with a target of 9,000 MW by adding new facilities and maximizing the use of Ontario's existing facilities. The proposed Wanatango Falls GS project will help to fulfill this commitment. Renewable energy development is a cornerstone of the province’s future prosperity and its commitment to protecting the environment. The Ministry of Natural Resources (MNR) has stated that renewable energy projects contribute to the environmental, social and economic wellbeing of the province. Renewable projects such as waterpower help reduce the impacts of climate change and provide sustainable sources of energy. Supporting the government’s green energy initiative, the MNR makes Crown land available for renewable energy development including waterpower (Ministry of Natural Resources, http://www.mnr.gov.on.ca/stdprodconsume/groups/lr/@mnr/@renewable/documents/documen t/stdprod_087667.pdf). ii Wanatango Falls GS Final Environmental Report June 2014 Moving Forward This Final Environmental Report is the foundation of Xeneca’s planning and development process that will be used to inform the subsequent detail design and permitting/approval stages. This document is also a record of the binding commitments of Xeneca as it proceeds with development and operation of the proposed project. iii Wanatango Falls GS Final Environmental Report June 2014 EXECUTIVE SUMMARY Xeneca Power Development Inc. (Xeneca) proposes to construct a 3.7 MW hydroelectric power generating station (GS) at the site known as “Wanatango Falls” on the Frederick House River, located in Mann Township, approximately 26 kilometres (km) northwest of the Town of Iroquois Falls and 22 km south of the Town of Cochrane. The project received a Feed-in Tariff contract from the Ontario Power Authority (OPA), which stipulates facility commissioning by October 2018. This Final Environmental Report (ER) documents the environmental assessment (EA) process undertaken in support of the proposed project. This EA was completed in accordance with the provincial Class Environmental Assessment for Waterpower Projects as required under the Ontario Environmental Assessment Act. The purpose of an environmental assessment is to ensure that potential effects are identified, evaluated and considered in the planning stages of a project, allowing for the avoidance or minimization of the negative impacts and the optimization of the positive impacts in advance of the regulatory permitting phase that governs the construction and operation phases. Furthermore, the EA process is designed to ensure the proponent of a project undertakes meaningful engagement of all parties who wish to be involved in the planning process. In the context of environmental assessment, the environment considered includes the natural/physical, socio/economic, and cultural/human landscape in which the project is proposed to be developed and operated. Effects of an undertaking may be either positive or negative, and are assessed for their significance based on such factors as value, duration, magnitude, geographic extent, and reversibility. Negative impacts can then be avoided or mitigated through planning and further project refinement and where required, through provision of compensatory measures to offset impacts which cannot be mitigated against in accordance with the mandatory regulatory approvals framework. The residual environmental effects are those which mitigation cannot address and these must be assessed against existing or reasonably foreseeable activities to determine whether there is a potential for cumulative effects to a specific area or resource. Significant residual effects may lead to project redesign or rejection of the proposed undertaking. This Environmental Report has been organized in the following format: Introduction and project overview; Description of the regulatory framework under which the project is being assessed; Identification of the existing conditions of the environment in which the project is situated; A technical description of the proposed project as conceptualized, including its physical makeup, construction requirements, and proposed operational regime; Discussion of stakeholder engagement efforts undertaken throughout the EA process, and the results of those engagements; iv Wanatango Falls GS Final Environmental Report June 2014 Identification of the likely effects of the project, both positive and negative, proposed mitigation measures to avoid the negative impacts, residual effects, offsetting measures where required, and proposed construction and operational monitoring initiatives; Identification of regulatory approvals which will be required prior to the construction and operations phases of this undertaking; Conclusions and recommendations.
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