Pacific NorthWest LNG Project Environmental Assessment Report September 2016 Cover photo credited to Pacific NorthWest LNG Ltd. © Her Majesty the Queen in Right of Canada, represented by the Minister of Environment and Climate Change Catalogue No: En106-136/2015E-PDF ISBN: 978-1-100-25630-6 This publication may be reproduced in whole or in part for non-commercial purposes, and in any format, without charge or further permission. Unless otherwise specified, you may not reproduce materials, in whole or in part, for the purpose of commercial redistribution without prior written permission from the Canadian Environmental Assessment Agency, Ottawa, Ontario K1A 0H3 or info@ceaa- acee.gc.ca This document has been issued in French under the title: Projet de gaz naturel liquéfié Pacific NorthWest - Rapport d’évaluation environnementale Executive Summary Pacific NorthWest LNG Limited Partnership (the proponent) is proposing the construction, operation, and decommissioning of a new facility for the liquefaction, storage, and export of liquefied natural gas (LNG). The Pacific NorthWest LNG Project (the Project) is proposed to be located primarily on federal lands and waters administered by the Prince Rupert Port Authority approximately 15 kilometres south of Prince Rupert, British Columbia. At full production, the facility would receive approximately 3.2 billion standard cubic feet per day, or 9.1 x 107 cubic metres per day, of pipeline grade natural gas, and produce up to 20.5 million tonnes per annum of LNG for over 30 years. The Project would include the construction and operation of a marine terminal for loading LNG on to vessels for export to Pacific Rim markets in Asia. The Project is subject to the Canadian Environmental Assessment Act, 2012 (CEAA 2012) because it involves activities that are described in the Regulations Designating Physical Activities. Specifically, the Project includes the construction, operation, and decommissioning of a new fossil-fuel fired electrical generating facility, a new facility for the liquefaction, storage or regasification of liquefied natural gas, and a new marine terminal that meet the descriptions and thresholds set out in items 2(a), 14(d), and 24 (c) of the Schedule to the Regulations. The Project was also subject to an environmental assessment (EA) under British Columbia’s Environmental Assessment Act. The federal and provincial governments collaborated during the technical review of the proponent’s EIS and coordinated public and Aboriginal consultation efforts to ensure an effective and efficient EA and consultation process. On November 25, 2014, the Government of B.C. issued an EA Certificate for the Project. The Canadian Environmental Assessment Agency (the Agency) conducted an EA of the Project in accordance with CEAA 2012. The expert federal authorities which contributed to the EA were Environment and Climate Change Canada, Fisheries and Oceans Canada, Health Canada, Natural Resources Canada, Transport Canada, Parks Canada, and the Prince Rupert Port Authority. The EA Report was completed following a technical review of the proponent’s EIS and supplemental materials, and an evaluation of the potential environmental effects of the Project by the Agency with the support of the expert federal authorities. In conducting this EA, the Agency considered effects that the Project may have on the following components of the environment: • those which fall within federal jurisdiction, as described in subsection 5(1) of CEAA 2012; • those directly linked or incidental to federal decisions that enable the Project to be carried out, as described in subsection 5(2) of CEAA 2012; • species listed under the Species at Risk Act and their critical habitat; and • species designated by the Committee on the Status of Endangered Wildlife in Canada. Valued components are features of the natural and human environment that have the potential to be impacted by the Project. The EA focused on valued components which would enable an assessment of the effects described above, including air quality, vegetation, migratory birds, fish and fish habitat, marine mammals, federal species at risk, human health, socio-economic conditions, physical and cultural heritage and historical and archeological sites, and current use of lands and resources for traditional purposes by Aboriginal peoples. Environmental Assessment Report – Pacific NorthWest LNG iii The Agency assessed the potential for the Project to cause significant adverse effects on the valued components. These assessments were completed based on the EIS, responses to information requests provided by the proponent, advice from federal and provincial experts, comments provided by Aboriginal groups, and comments provided by the public. Aboriginal groups submitted many detailed comments about the Project and the EA. The majority of Aboriginal concerns related to impacts to marine fish and fish habitat, harvested foods, Aboriginal use of lands and resources, cumulative effects, physical and cultural heritage, and Aboriginal rights. Key areas of public concern were effects on fish and fish habitat, greenhouse gas emissions, effects from air emissions, and cumulative effects. The Project’s main potential environmental effects in relation to section 5 of CEAA 2012 include: • effects on human health and freshwater bodies from emissions of air contaminants; • effects as a result of greenhouse gas emissions; • removal of terrestrial vegetation, wetlands, and watercourses on Lelu Island; • removal of habitat for migratory birds and terrestrial species at risk; • disturbance of migratory birds, their eggs and their nests; • effects on marine fish and fish habitat from changes to water and sediment quality, loss of habitat, and physical injury or mortality; • disturbance of marine mammals from blasting and underwater noise; • effects on human health as a result of changes to noise, light, and marine harvested foods; • reduced access to recreational activities and commercial fishing activities; • effects on Aboriginal use of lands and resources for hunting, fishing, gathering and cultural practices as a result of changes to access, quantity and quality of resources, and the sensory environment; and • effects on physical and cultural heritage, and archaeological and historical resources, including Culturally Modified Trees, on Lelu Island as a result of land clearing. The proponent’s Project plan and design incorporates mitigation measures to prevent or reduce the adverse effects of the Project. Key mitigation measures identified by the Agency to prevent effects considered in this assessment include: • measures to minimize air contaminant and greenhouse gas emissions including a hard cap on greenhouse gas emissions; • wetland compensation; • 30 m vegetation buffer around the perimeter of Lelu Island; • fish habitat offsetting; • conducting work in accordance with timing windows and noise thresholds for marine species; • noise and lighting mitigation to reduce disturbance to migratory birds, marine species and humans; • minimizing scour through placement of rip-rap around marine terminal infrastructure; • constructing the southwest tower and anchor block of the suspension bridge to minimize sediment erosion and deposition based on high resolution modelling of the final Project design; • monitoring for marine mammals during in-water construction and adjusting activities when marine mammals are in the area; • bridge design to allow vessels with an airdraft of 11.3 m to pass underneath, thereby maintaining iv Environmental Assessment Report – Pacific NorthWest LNG navigation next to Lelu Island; • measures to handle and manage archaeological and historical resources, including Culturally Modified Trees; and • marine communications committee so that all marine traffic is made aware of Project construction activities and Project-related safety procedures. The Agency also examined the Project’s potential effects on potential or established Aboriginal rights, including: fishing, hunting, trapping, plant harvesting, use of culturally important sites for ceremonial purposes, and other related interests. The Agency believes that the mitigation measures outlined in this report will serve as accommodation for these potential effects. The Agency has identified mitigation measures and follow-up program requirements for consideration by the Minister of Environment and Climate Change in establishing conditions as part of the Decision Statement under CEAA 2012 (see appendix 11.4). Conditions accepted by the Minister of Environment and Climate Change would become legally binding on the proponent if the Minister ultimately issues a Decision Statement indicating that the Project may proceed. The Agency concludes that the Pacific NorthWest LNG Project is likely to cause significant adverse environmental effects, taking into account the implementation of the recommended mitigation measures, on harbour porpoise and as a result of greenhouse gas emissions. The Agency also concludes that the Project is likely to result in significant adverse cumulative environmental effects to harbour porpoise. With respect to all other valued components, the Agency concludes that the Project is not likely to cause significant adverse environmental effects taking into account the implementation of the key mitigation measures. Environmental Assessment Report – Pacific NorthWest LNG v Table of Contents Executive Summary ...............................................................................................................................iii