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Marter Township (Blanche River) Hydroelectric Generating Station Project

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Marter Township (Blanche River) Hydroelectric Generating Station Project DRAFT FOR DISCUSSION PURPOSES Environmental Report Marter Township (Blanche River) Hydroelectric Generating Station Project Marter Township Environmental Report August 2012 FOREWORD Xeneca Power Development Inc. (Xeneca) is pleased to provide you a Draft Environmental Report for the proposed Marter Township Hydroelectric Generating Station on the Blanche River. This document represents the culmination of an important and considerable joint effort between Xeneca, regulatory agencies, local residents and public stakeholders and Aboriginal communities. This Draft report is being provided to key regulatory agencies for a thirty day review period which is scheduled to end on October 2, 2012. Xeneca welcomes agency review comments and will incorporate them as best possible into the Final Environmental Report to be issued for the formal thirty day public and agency review as per the Class Environmental Assessment (EA) for Waterpower Projects. Submission of this Draft report under the Waterpower Class EA represents a significant milestone in our obligations to the Province of Ontario 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 Class EA, and, subsequently, obtain all applicable provincial and federal regulatory permits and approvals, receive approval for final engineering design, obtain plans and specification approval. The terms of Xeneca’s FIT contract (issued in April 2010) require that the facility be constructed and commissioned no later than October 2015. Xeneca has undertaken a multitude of investigations and studies of the project site spanning a three year period, (from 2010 to 2012) including natural habitat studies, archaeological investigations, water quality and fish tissue sampling, geotechnical studies, public and agency consultation, and engagement with Aboriginal communities; the timeline under the FIT contract is nearing the 50% marker. Xeneca is pleased with the contribution of agencies in reaching this milestone and we look forward to a continued positive working relationship to complete the remaining parts of this project to meet our October 2015 contract operation date as required by the Province of Ontario. First Nations and Aboriginal Communities The development of waterpower resources on Crown Land necessarily involves Aboriginal communities as part of the Crown’s duty to consult. This Draft report summarizes Xeneca’s efforts to engage, seek input from, and consult with the appropriate communities. Xeneca has been respectful of each First Nation and Aboriginal community’s culture, governance and desired manner of communication in order to foster a long-term relationship throughout the lifecycle of the project. Marter Township Environmental Report August 2012 Conclusion This Draft Environmental Report is the foundation of Xeneca’s planning and development process that will be used to inform the subsequent permitting and approval stage. This document is also a record of the binding commitments of the proponent as it proceeds with development and detail design and operation of the proposed project. This report was prepared to meet the requirements of the Ontario Environmental Assessment Act and the objectives of the Green Energy and Green Economy Act. Marter Township Environmental Report August 2012 EXECUTIVE SUMMARY Xeneca Power Development Inc. (Xeneca) is proposing the construction of a 2.1 MW hydroelectric generating station (GS) on the Blanche River in Marter Township, on Lot 12, Concession V. The project falls within the Marter Township, in the Township of Chamberlain. The project site is located on the Blanche River at the Krugerdorf Chutes, approximately 9 km north of the Town of Englehart. The proposed project would meet the provincial government’s objectives to generate sustainable and reliable hydroelectric power under the Green Energy and Green Economy Act. The project received a forty (40) year Feed-in-Tariff contract from the Ontario Power Authority (OPA) which stipulates facility commissioning no later than October 2015. Subsequent to a successful outcome under the Class EA, the proponent would enter the regulatory permitting and approvals phase which will require the approval of final engineering design, plans and specifications, construction management planning, and the design and application of various environmental controls during both construction and operation. With an initial capital construction cost of $10.5 million, the project represents a significant socio- economic benefit to the local community of approximately 5.25 million at the construction phase. Provincially, the project would return approximately $10.5 million in tax revenues to the province during the life of the forty year OPA contract. This Draft Environmental Report (ER) documents the environmental assessment (EA) process undertaken in support of the proposed project in accordance with provincial Class Environmental Assessment for Waterpower Projects (Class EA) 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 phase. The EA process is designed to ensure the proponent of a project undertakes meaningful engagement of all stakeholders who wish to be involved in the planning process. In the context of environmental assessment, the environment includes the natural/physical, socio/economic, and cultural/human landscape in which the project is proposed. Effects of an undertaking may be either positive or negative, and are assessed for their significance based on such factors as duration, geographic extent, and reversibility. Negative impacts can be avoided or mitigated through planning and further project refinement and where required, through the 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 Marter Township Environmental Report August 2012 cumulative effects to a specific area or resource. Significant residual effects may lead to project redesign or regulatory rejection of the proposed undertaking. This Draft 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; • Identification of the likely effects of the project both positive and negative, proposed mitigation measures to avoid the negative impacts, residual effects, compensatory measures where required, and proposed construction, and operational monitoring initiatives; • Identification of anticipated regulatory approvals which will be required prior to the construction and operation phases of this undertaking; • Conclusions and recommendations. An environmental assessment is meant to enhance the project as it is presently conceptualized through site specific investigations in consultation with regulatory bodies, stakeholders, First Nation and Aboriginal communities and the general public. The EA presents a conceptual project design to inform on the general scope of the project both in terms of potential impacts to the environment and anticipated socio-economic benefits of the project. A final project design is required in support of securing regulatory permits and approvals. The proposed mitigation measures have been developed using recognized industry standards and best management practices, through the discipline expertise of the EA team members, and in accordance with regulatory framework which governs the proposed project. Xeneca will continue to work closely with provincial and federal regulators during the formal review of this document, and through the detailed design, permitting, construction, and operational phases of the project. Xeneca is committed to verification of the implementation and effectiveness of the mitigation measures and compensatory measures detailed in this document. As part of this effort, Xeneca will regularly issue a Project Implementation Report to agencies to update the project status, provide results of on-going environmental assurance and verification programs, and results of monitoring and mitigation programs. Marter Township Environmental Report August 2012 A summary of the existing conditions at the proposed project site, the project details and the findings of the environmental assessment is presented below. Physical Environment The Blanche River is located within the Kirkland Lake MNR Administrative District. The project site is situated approximately 9 km north of the Town of Englehart. The project falls within the Marter Township, in the Township
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