A Socioeconomic Review of Nalcor Energy’s Environmental Impact Statement Regarding the Proposed Lower Churchill Hydroelectric Generation Project FINAL REVISED Prepared for: NunatuKavut Community Council Inc. P.O. Box 460, Stn. C Happy Valley ‐ Goose Bay, NL A0P 1C0 370 Hamilton River Road Ph: (709) 896‐0592; Fx: (709) 896‐0594 Prepared by: Lori Ann Roness Consulting 26 Devon Avenue Sackville, NB E4L 3W2 Ph/Fx: (506) 536‐2223 [email protected] with revisions and demographic analysis by: The Aboriginal Affairs Group Inc. P.O. Box 23027 Ottawa (613) 761‐7153 [email protected] August 23, 2010 A Socioeconomic Review of Nalcor Energy’s Environmental Impact Statement Regarding the Proposed Lower Churchill Hydroelectric Generation Project Table of Contents 1.0 PROJECT BACKGROUND ........................................................................................1 2.0 RESEARCH QUESTIONS TO BE ANSWERED......................................................... 5 3.0 OVERVIEW OF NUNATUKAVUT ............................................................................ 5 4.0 THE CURRENT SOCIAL AND ECONOMIC CONDITIONS OF NUNATUKAVUT ..... 9 5.0 NUNATUKAVUT’S COMMUNITY PROFILES ........................................................19 6.0 NUNATUKAVUT INTERESTS IN THE PROPOSED PROJECT AREA......................32 7.0 THE POTENTIAL ADVERSE AND POSITIVE SOCIOECONOMIC EFFECTS OF THE PROJECT ON THE NUNATUKAVUT PEOPLE OF LABRADOR......................................... 34 7.1 Impacts on Aboriginal, Title and Treaty Rights ..................................34 7.2 Business and the Economy .....................................................38 7.3 Culture and Traditions ..........................................................39 7.4 Demands on Programs and Services...........................................39 7.5 Education and Training..........................................................40 7.6. Employment and Income .......................................................40 7.7 Funding...........................................................................44 7.8 Health ............................................................................44 7.9 Hunting and Trapping ...........................................................45 7.10 Infrastructure ....................................................................46 7.11 Leisure Activities.................................................................46 7.12 Mental Health....................................................................46 7.13 Mobility and Travel ..............................................................46 7.14 Social Problems..................................................................47 7.15 Social Relations ..................................................................47 8.0 HOW THESE POTENTIAL ADVERSE SOCIOECONOMIC EFFECTS MAY BE REDUCED AND HOW POSITIVE EFFECTS MAY BE IMPROVED..................................... 47 8.1 The Case Law Respecting NunatuKavut .......................................52 8.2 Additional Socioeconomic Elements to Note about Nalcor’s Environmental Impact Statement .......................................................................53 8.3 Communities.....................................................................54 8.4 Conflict of Interest ..............................................................54 8.5 Consultation .....................................................................54 8.6 Decommissioning................................................................55 8.7 Education and Training..........................................................56 8.8 Employment .....................................................................56 8.9 NunatuKavut’s Inclusion ........................................................58 8.10 The NunatuKavut Land Claim...................................................60 8.11 Management ....................................................................61 8.12 Monitoring .......................................................................61 8.13 Safety.............................................................................62 8.14 Socioeconomic Impacts.........................................................62 8.15 Support...........................................................................65 8.16 Third Parties .....................................................................65 8.17 Usage.............................................................................66 9.0 HOW CHANGES OCCURRING IN RESPONSE TO THE PROJECT MAY BE TRACKED .......................................................................................................................... 66 9.1 Socioeconomic Monitoring Plan (Strategy) and Program ...................69 9.2 Environmental or Regulatory Monitor.........................................70 9.3 Compliance Officer ..............................................................70 9.4 Compliance Visits, Audits and Evaluations ....................................71 9.5 Formal Surveys and Interviews.................................................72 9.6 Impact Evaluation ...............................................................73 9.7 Monitoring Secretariat..........................................................74 9.8 Monitoring Teams ...............................................................75 9.9 Monitoring Working Group.....................................................75 9.10 Performance Indicators.........................................................76 9.11 Project Implementation Oversight Committee ...............................78 9.12 Project Management Software ................................................79 9.13 Public Tracking Table............................................................81 9.14 Rapid Appraisal Methods .......................................................81 9.15 Real Time Monitoring ...........................................................83 9.16 Web‐Based Cyber Environmental Monitoring and Auditing System ........83 10.0 HOW CHANGES CAUSED BY THE PROJECT MAY BE MANAGED...................... 83 10.1 Environmental Impact Assessment Follow‐Up Process ......................84 10.2 Leadership Role .................................................................84 10.3 Monitoring Secretariat..........................................................84 10.4 Monitoring Working Group.....................................................85 10.5 Elders Council....................................................................85 10.6 Monitoring Plan (Strategy) .....................................................85 10.7 Change Management Strategy.................................................85 10.8 Environmental or Regulatory Monitor.........................................86 10.9 Monitoring Teams ...............................................................86 10.10 Compliance Officer ..............................................................86 10.11 Compliance Visits, Audits and Evaluations ....................................86 10.12 Emergency Action Plan .........................................................86 10.13 Quality of Life Monitoring Tool.................................................86 10.14 Socioeconomic Effects Monitoring Program..................................87 10.15 Dissemination Activities.........................................................87 10.16 Events ............................................................................88 10.17 Information Products ...........................................................88 10.18 Electronic Mailing Lists..........................................................89 10.19 The Internet......................................................................89 10.20 Meetings ......................................................................89 10.21 Dissemination Events ...........................................................89 10.22 Media Events ....................................................................89 11.0 CONCLUSIONS ..................................................................................................... 90 Appendix A Forecasted Labour Resource Requirements for the Construction Phase 92 A Socioeconomic Review of Nalcor Energy’s Environmental Impact Statement Regarding the Proposed Lower Churchill Hydroelectric Generation Project 1.0 Project Background In 2007, the Government of Newfoundland and Labrador created Nalcor Energy to assume oversight of energy development and production in Newfoundland and Labrador. Nalcor Energy has five business lines: Newfoundland and Labrador Hydro, Churchill Falls, Lower Churchill Project, Oil and Gas and Bull Arm Fabrication.1 Of interest here is the proposed Lower Churchill Project in the Lower Churchill watershed. The Churchill River watershed encompasses 92,355 km2 in central Labrador. It extends from Lake Melville in the east to past the Smallwood Reservoir in the west. The Churchill River flows into Lake Melville, which is a large estuary. Lake Melville, in turn, flows into the Labrador Sea.2 Nalcor Energy currently operates the Churchill Falls Generating Station. The Generating Station began producing power in 1971 and has eleven turbines with a rated capacity of 5,428 megawatts. In 2008, more than 34 terawatt hours of electricity was produced, the majority of which was sold to Hydro‐Québec through a long‐term power purchase contract that expires in 2041. Most of the remaining production is used for mining operations in Labrador West