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2014
Year in
Review
Real Regulatory
Reform
P7
Climate Change:
On the Front Burner
P11
Parks Canada:
In the Hydro Business
P19
Renewable, Reliable, Responsive
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2014 Year in Review
President
Paul Norris [email protected]
Marketing and Events Coordinator
Janelle Bates [email protected]
Executive Assistant
Marie Lummiss [email protected]
Communications and
Public Outreach Coordinator
Stephanie Landers [email protected]
Contributing Writers
Zach Vorvis, Project Manager and Paul Kemp,
President, Canadian Projects Limited
www.canprojects.com
Julie Abouchar, Partner and Certified
Environmental Law Specialist and Nicole
Petersen, Associate Lawyer, Willms & Shier
Environmental Lawyers LLP
www.willmsshier.com
Jamison Romano, Hydrology Specialist,
Aquatic Informatics Inc.
www.aquaticinformatics.com
Visit our website: www.owa.ca
Email: [email protected]
Phone: 1-866-743-1500
Year in Review is published annually by the Ontario
Waterpower Association. Distribution is free of
charge within North America. Subscription enquires
or changes to subscriptions should be directed to
Marie Lummiss [email protected]. The contents
of this publication may not be reproduced in whole or
in part without the prior permission of the publisher.
Cover Photo courtesy of Axor Group Inc.
In This Issue
Cover Stories
7 | Real Regulatory Reform
11 | Climate Change: On the Front Burner
19 | Parks Canada: In the Hydro Business
Articles
3 | Message from the Chair
5 | Wasdell Falls Redevelopment –
A North American First
9 | Power of Water Canada Conference
Adapts to a Changing Landscape
13 | First Nation Challenges to Hydroelectric
Development – A Tale of Two Provinces
17 | Engaging and Informing the Political Process
21 | Water & Energy: A Delicate Balancing Act
23 | Worth Repeating – the Growing
Aboriginal Market
25 | 2015 – A Year of Stability and Differentiation
27 | Proud OWA Members
29 | 2015 Industry Events Listings
Message from the Chair
Valerie Helbronner, OWA Board Chair
As seems to be the case when one looks back on any year in the electricity sector in Ontario, 2014 was again one
of considerable action. Led by the re-election of a Liberal government, and this time in a majority position, the sector
now has the additional certainty prescribed by the ongoing implementation of the 2013 Long-Term Energy Plan, with
waterpower targeted to contribute 9,300 Megawatts (MW) by the end of the planning horizon. More importantly, the
steady, sustained procurements that are the foundation of the plan for new generation investment provide improved
certainty and predictability.
In addition, and increasingly, there is specific and separate recognition of the unique attributes of waterpower in broader
energy policy. In 2014, an additional twenty-five (25) MW of waterpower was added to the first Large Renewables
Procurement, contracts for thirty-five (35) Megawatts of municipal projects were awarded through the Hydroelectric
Standard Offer Program, proposals are now being accepted for up to forty (40) Megawatts through the HESOP expansion
initiative and, most recently, the price offered to small FIT waterpower projects was substantially adjusted. Collectively,
this represents new investment opportunities in the industry approaching $600 Million.
More broadly, the very institutions that have come to help define the management of the province’s electricity system
are undergoing fundamental change. Beginning in 2015, the Ontario Power Authority and the Independent Electricity
System Operator will be merged into a single entity, with direct oversight both for market operation and evolution, as
well as for energy procurement and contract management. The merger represents a significant shift in governance and
must be accompanied by internal mechanisms that ensure appropriate relationships between contracts and markets.
For the Association, 2014 was a year of continued advancement toward the achievement of our strategic objectives. This
year, the OWA and Parks Canada struck a “New Business Relationship” focused on waterpower production on federal
waterways. The Association’s partnership with Ducks Unlimited Canada has been expanded to include collaborative
support for First Nations leading land use planning in Ontario’s Boreal North. And relationships with Chiefs of Ontario
and Queen’s University premised on Aboriginal capacity building continued to grow and yield results.
Also in 2014, the OWA, with the leadership of several OWA members, published Best Management Practices on
wetlands, waterfowl, water quality and ecological flows. In addition, and in support of the government’s Modernization
of Approvals agenda, the Association established a roster of “Subject Matter Expertise”, now containing more than fifty
(50) member professionals across a wide range of disciplines.
Looking forward, 2015 will see the implementation of the first “Large Renewables Procurement” and an expected
increase in the participation of waterpower in the small Feed-in-Tariff Program. The promise of transmission expansion
to Ontario’s Far North continues to gain momentum, bolstered by First Nations-led development corporations and by
the recent reaffirmation of the economic business case by the Ontario Power Authority. It will also be a year of active
implementation of the Ministers’ mandate letters, published by the government for the first time. Across Ministries
themes of direct relevance to the waterpower industry (Moving Forward on Climate Change, Improving Aboriginal
Outcomes, Developing the Ring of Fire, Championing Renewable Energy) have strong resonance with the OWA’s
Strategic Plan and the industry is well positioned to contribute to the government’s policy priorities.
I have been honoured to serve as Chair of the Ontario Waterpower Association and to work with its committed and
dedicated Board of Directors, staff and members. I look forward to continued industry and organizational success.
Valerie Helbronner
OWA Chair
Wasdell Falls Redevelopment – A North American First
The Next 100 Years of Waterpower
Guest article by Zach Vorvis, Project Manager and Paul Kemp, President of Canadian Projects Limited
In 1914, Wasdell Falls, a small drop in the Severn River
just north of Washago, Ontario, was the site of the first
generating station constructed by the Hydro-Electric
Power Commission of Ontario, which was the precursor
to Ontario Hydro and today’s Ontario Power Generation
(OPG) and Hydro One. Exactly 100 years later, Wasdell
Falls is the site for construction
of a new generating station
that represents another first in
waterpower for both Canada
and for North America. Today’s
development is based on
the deployment of the Very
Low Head (VLH) Turbine
for the Wasdell Falls Power
Corporation (WFPC), with the
adaptation of the technology for
North America and engineering
being completed by Canadian
Projects Limited (CPL).
The VLH Technology
The innovative VLH Turbine was developed in France
in 2004, by MJ2 Technologies (MJ2), with the intent to
generate energy at existing hydraulic structures with very
low water level differential from upstream to downstream
(i.e. Very Low Head).
The VLH Turbine has been designed to reduce, or
completely eliminate, the need for intake, powerhouse
or outlet structures required for conventional hydropower
plants. The typical deployment involves installing the
turbine in, or adjacent to, existing water control structures
such as diversion weirs, navigation locks, drop structures,
small dams and spillways. When operating, the turbine sits
submerged in the water, with only structural components
associated with turbine extraction actually visible.
The VLH technology involves a large, eight-bladed Kaplan
turbine integrated with a Permanent Magnet Generator
(PMG). With electrical industry advancements over the past
few decades, the PMG coupled with a frequency converter
enables high quality electricity to be delivered to the ‘grid,’
while the VLH Turbine slowly rotates at about 40 revolutions
per minute. The large size of the turbine and the blades, in
addition to its slow speed, make the turbine extremely ‘fishfriendly’. Testing in Europe has proven safe fish passage
approaching 100%, with further testing planned for North
American species once the Wasdell site is commissioned.
The VLH Turbine design is applicable at sites where the
head is the range of 1.4 to 4.2 m. Deployment opportunities
are vast for the VLH, with an estimated 80,000 existing
structures within North America that could utilize low-head
hydro development. Integrating the turbines into existing
structures such as these greatly minimizes the cost of the
civil works, significantly reduces environmental impacts and
lessens the effort required to obtain regulatory approvals,
and design and build the facility.
Over thirty-five (35) VLH units have been successfully
deployed across Europe since March 2007, but units
have yet to be deployed in North America due to its
varying climate, hydraulic, environmental, electrical and
societal requirements. It is well recognized that even if
an otherwise worthy technical solution cannot meet all
of the necessary technical and regulatory requirements
it will not be able to be successfully deployed. Hence,
deployment of the VLH Turbine in Canada had multiple
challenges and required considerable technical effort to
adapt the turbine to meet North American requirements.
Adaptation for North America
Adaptation of the VLH technology for deployment in North
America required significant work. Deployment within
the cold regions of North America, including Canada and
the northern United States, required an evaluation and
mitigation of a number of cold-climate issues that do not exist
at the European installations. Consequently, with support
from Natural Resources Canada, CPL initiated a Cold
Climate Adaptation (CCA) study to examine cold-climate
issues and recommend appropriate mitigation measures to
adapt the VLH Turbine to North American conditions. The
CCA package facilitates a new turbine extraction method
and accommodates ice forces, frazil ice, ad-freezing and
colder temperatures that are not present at European sites.
In addition, several studies were completed to assess
some of the unique hydraulic
conditions present at many existing
water control structures in North
America. A hydraulic model study
was performed with the University
of Calgary to quantify the effects
of upstream obstructions and
conditions on turbine performance.
The two year study included both
numeric modeling and physical
modeling in a water tunnel. Further
site studies are planned using
the operating Wasdell turbines
to further assess performance
characteristics including fish passage on North American
species and other deployment effects.
than the cottages and garages down the street. Overall,
the minimal construction footprint and fish friendly turbines
result in a project having a very low environmental impact.
The Wasdell Hydro Project
Summary
Minimizing the impact on the environment has been a
driving factor in the design of the VLH Turbine, as well as
its deployment at the Wasdell site. In designing the Wasdell
Hydro project, aesthetic considerations included low noise,
disguised control buildings, minimized construction footprint
and a low profile structure consistent with the existing
structures at the site. The resulting design was accepted
for deployment at the historic Wasdell site. Continued
integration of all of these design elements will support future
successful deployment of the VLH technology in Canada.
Waterpower is clean and renewable. Canada, with 60% of
its electricity being generated by hydro, has the cleanest
and most renewable electricity system of all the G8
countries. Small hydro represents a significant opportunity
for continued development of hydropower in Ontario
and in Canada. The innovative VLH Turbine technology
enables economic, low impact construction of low-head
energy generation by minimizing the civil works typically
associated with hydropower projects. With the completion
and commissioning of the Wasdell project, the technology
is well positioned for further deployment across Canada.
With abundant existing, suitable water control structures
within North America, there exists great potential for Very
Low Head hydro deployment in our backyard.
The Wasdell Hydro project involves the installation of three
VLH Turbines in a new spillway structure constructed
adjacent to the existing water control structure at the site.
Other than the low profile spillway structure, the project
involves a small building that will house the required control
equipment and a small substation for grid interconnection.
The turbines are designed to be mounted at 45 degrees in
the spillway structures and, being submerged, are generally
not visible nor do they introduce any noise other than the
sound of flowing water.
The construction and operating footprints are small.
The Wasdell Hydro project has its structure constructed
adjacent to the existing structure within an excavated short
rock channel that slightly widens the Severn River in this
location. The control building and substation are no larger
This initial development involved all the Ontario and
Canadian regulatory review and approval requirements.
It is planned, based on the experience from the Wasdell
Hydro project and the opportunity to complete further
fish testing, that the regulatory review process for future
similar developments will be streamlined substantially.
In addition, the Wasdell Hydro project enabled the
development of standardized integration with existing
structures and standard structural, mechanical and control
building designs, such that a construction deployment
period of less than six months can be achieved.
With three VLH Turbines being deployed, the Wasdell
Hydro project has a capacity of 1.65 MW with a high
capacity factor that will provide over 8.46 GWh of
renewable energy annually.
Real Regulatory Reform
By all accounts, 2014 was to be a year that saw significant
advancements in one of the industry’s core objectives –
reducing the time and cost of the pre-construction approvals
processes for waterpower projects. Driven by the explicit
recognition in the Minister of Energy’s June 2013 Directive
to extend five (5) year Feed-in Tariff Contracts to eight
(8) years “in acknowledgement of the unique regulatory
approvals requirements for waterpower,” the Ministries of
Environment and Climate Change (MOECC) and Natural
Resources and Forestry (MNRF) proposed new guidance
ostensibly intended to simplify and clarify their respective
approvals requirements.
In October 2013, a proposed Coordinated Policy Guidance
for Waterpower Projects was posted on the Environmental
Registry by the Ministries. The proposed Guidance
document was to provide clarification of Ministry specific
roles and responsibilities for waterpower projects in
reviewing and issuing authorizations. The policy guidance
was developed to assist proponents of waterpower
projects which require approvals under the Lakes and
Rivers Improvement Act (LRIA) and Permits to Take Water
(PTTW) under the Ontario Water Resources Act (OWRA)
for waterpower facility construction and operation. It outlined
the ministries’ intention to clearly identify which ministry
will conduct reviews in areas of shared responsibility;
and the intention of each ministry to use the review of the
other in order to avoid unnecessary duplication, while not
altering the statutory responsibilities of either ministry in
areas of shared responsibility. In essence, the approach to
address the overlap and duplication between the legislative
responsibilities of the two ministries was to be one of “trust”
in the subject matter expertise of one another in areas
of core competency (e.g., MNRF – aquatic ecosystems,
MOECC – water quality).
A year has passed, however, since the proposal was made,
and there has been little or no progress toward its practical
implementation. Why? The key issue appears to be the
challenge in realizing the intent of the initiative within the
context of the existing regulatory framework and, hence,
the need for real regulatory reform.
MNRF is recognized as having the lead legislative
responsibility for the waterpower sector by virtue of the
Public Lands Act (tenure) and the Lakes and Rivers
Improvement Act (LRIA) (construction and operation of
dams). The LRIA’s broad purposes include:
a) The management, protection, preservation and use
of the waters of the lakes and rivers of Ontario and
the land under them;
b) The protection and equitable exercise of public rights
in or over the waters of the lakes and rivers of Ontario;
c) The protection of interests of riparian owners;
d) The management, perpetuation and use of the fish,
wildlife and other natural resources dependent on
the lakes and rivers;
e) The protection of the natural amenities of the lakes
and rivers and their shores and banks; and
f) The protection of persons and of property by ensuring
that dams are suitably located, constructed, operated
and maintained and are of an appropriate nature with
regard to the purposes of clauses (a) to (e).
In 2011, the Ministry introduced new and modernized
standards and technical guidelines with strong support from
the industry and other dam owners and has since published
a series of technical bulletins to further inform the application
of the legislation. Of critical importance in this regard is the
proposed technical bulletin on “Location Approval,” posted
as one of a series of four (4) on the Environmental Registry
in November 2013. Location Approval immediately follows
and is informed by the Environmental Assessment process
– the stage at which the vast majority of FIT contracted
waterpower projects presently are.
While the MNRF legislative requirements are
comprehensive and specific to dams and/or waterpower
facilities, MOECC’s regulatory role with respect to water
creates complications and is the overlap intended to be
addressed by the Coordinated Guidance Policy framework.
Specifically, under the Ontario Water Resources Act dams
are considered a “water taking,” despite the fact that they
don’t consume water. The instrument which implements
this framework is a “Permit to Take Water” (PTTW), pursuant
to Ontario Regulation 387/04 – and herein lies the rub.
While historically the PTTW was treated primarily as an
administrative instrument, recognizing the breadth of
objectives under the LRIA, the 2004 regulation introduced
new considerations for the issuance of permits, including
the impact or potential impact of the water taking or
proposed water taking on; the natural variability of water
flow or water levels, minimum stream flow, habitat that
depends on water flow or water levels, and ground water
and surface water and their interrelationships – all areas
traditionally addressed for dam owners by MNRF and/or
Fisheries and Oceans Canada. While the inclusion of such
considerations may certainly be relevant to other water
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takings, the overlap and duplication to those covered by
the LRIA are obvious. To address this issue, and given the
well intentioned but as yet unimplemented Coordinated
Policy approach, real Regulatory Reform is required.
The OWA (and other dam owners) have, in the past, brought
forward formal amendments to the Ontario Water Resources
Act, building on the exception provisions already contained
in the legislation. Waterpower and conservation structures
in particular have been the subject of such proposals.
Another option is to improve the OWRA Regulation to align
with the policy proposal for those matters to be considered
by the Director in issuing a permit for waterpower projects.
In this approach, the Permit for waterpower would be
exclusively focused on Water Availability, Water Quality
and Groundwater/Surface Water Interaction, as outlined in
the Environmental Bill of Rights (EBR) posting. Given the
apparent inability to carry the policy proposal into action,
both of these alternatives must be explored and will be a
key area of advocacy focus for the OWA in 2015.
Power of Water Canada Conference Adapts
to a Changing Landscape
With almost four hundred (400) delegates from across
Canada and beyond, the annual Power of Water Canada
(POWC) continues to be the primary networking and
educational event for the waterpower sector. This year’s
conference was again held in Niagara-on-the-Lake,
and featured several informative sessions highlighting
some of the major advancements in waterpower facility
development and energy production.
As many of the delegates noticed, there was a strategic
shift in the conference program this year which featured
more technical sessions than ever before. This change
was a direct reflection of the transformation of the
waterpower industry itself. The sector has moved from a
phase of procurement and planning, into a new chapter
of development and commissioning.
The transition of the waterpower sector was not only
recognized the industry, but by government as well. In his
keynote address, the Honourable Bill Mauro, Minister of
Natural Resources and Forestry recognized the growth
of the industry and noted how his Ministry is working to
support investment in the sector.
“This conference gives us a
valuable opportunity to look at
the progress we’ve made and
to see what more we can do to
move forward on the next steps.
I’m glad that my Ministry, along
with our partner ministries
and in close consultation with
stakeholders, have begun to
align our permitting policies
and processes making it easier
The Honourable Bill Mauro, Minister
of Natural Resources and Forestry
to navigate through the system
for a new project. We are
strengthening our policies to support a healthy climate
for capital investment in sustainable, renewable energy.
We are working together, across government, and with
industry and with our community partners to help Ontario
produce the power we need for economic growth.”
As with previous years, the Association held its annual gala
dinner and awards ceremony on the evening of October
20th to recognize the accomplishments of the leaders in
the sector whose efforts and vision have helped pave the
way for future growth.
The Stewardship Award, which recognizes those
organizations that have made a commitment to
environmentally responsible and sustainable waterpower
development, was presented to Ontario Power Generation
and Moose Cree First Nation. The award recognized the
efforts of these organizations to provide clean, renewable
energy to the province through the development of the
Lower Mattagami project. The development introduced
environmental protection measures that went beyond
regulatory requirements and significant public safety
measures and plans that were developed and
implemented throughout the development of the project.
The Innovation Award, which recognizes those organizations
that have shown leadership in innovation through the
development of important advancements was presented
to GreenBug Power. GreenBug has
recently designed, constructed, installed
and commissioned a 7 kW waterpower
project on private property located on
Nanticoke Creek in Norfolk County,
utilizing “Archimedes’ Screw” technology.
This project is the first commercially
Tony Bouk, GreenBug
operational project using this ancient,
Power (left) and
yet very current approach and technology
Paul Norris, OWA (right)
in North America.
Finally, the evening concluded with the presentation of the
R.R. Dodokin Award. This year’s award was presented to
Paul Young, Director of Generation Operations, Orillia Power
Generation. Paul has been involved in the waterpower
industry for more than thirty-seven (37) years, acting as both
a consultant and as an operator of waterpower facilities. He
has been part of more than fifty (50) projects and exemplifies
dedication, commitment and passion towards waterpower
every day in his career.
The award was presented to Paul by Keith McAllister,
President, Orillia Power, who stated, “Paul’s appetite
for knowledge and growth continue to be a real strength.
He has a natural ability to work with all levels of people;
members of the public, staff and senior management of
companies. His enthusiasm related to waterpower can
easily be seen in any dealings you may have with him. Just
talk to him about waterpower and you will see his eyes
light up.”
Congratulations to all award winners!
The 2015 Power of Water Conference will be held from
October 18th – 20th, 2015 again at the White Oaks
Conference resort in Niagara-on-the-Lake. Registration
will be open soon – save the dates!
Paul Young, Orillia Power (left)
and Keith McAllister, Orillia Power (right)
Climate Change:
On the Front Burner
Though hardly at the forefront of pre-election platforms
and policies for any political party in 2014, Climate Change
has clearly re-emerged as a top priority for the majority
Liberal government of Ontario. The newly named Ministry
of Environment and Climate Change is perhaps the most
visible example of the renewed emphasis but more telling
are the clear objectives outlined in the mandate letter from
the Premier to the Minister. Two, in particular, warrant
consideration in the context of the considerable contribution
that existing and potential waterpower production can
make to the provincial Climate Change objectives.
1.A Comprehensive Strategy for Ontario
Building on, and supporting, the most current science, the
Ministry has been tasked with leading the development
of a new long term climate change strategy for Ontario.
Implementing the strategy is to involve an all-ofgovernment approach including the Ministries of Finance,
Energy, Transportation, Municipal Affairs and Housing,
Economic Development, Employment and Infrastructure,
Agriculture, Food and Rural Affairs, Research and
Innovation, and Natural Resources and Forestry. The
strategy is to be completed by 2015.
Source: Environmental Commissioner’s Annual Climate Change Report, 2014
2.A Pan-Canadian Approach
The Minister of Intergovernmental Affairs and the Minister of
Energy, working together with other provinces and territories, will
contribute to the development of a Canadian Energy Strategy
that includes co-ordinated efforts to reduce GHG emissions.
As illustrated in the figure to the right, the contribution of
Ontario’s electricity to Greenhouse gas (GHG) production
has decreased substantially in recent decades and yet it still
remains significant.
As noted in the figure on the following page, Canada is blessed
to have the majority of its electricity already coming from
renewable, reliable hydropower (74,000 MW). According to the
Canadian Hydropower Association, there is more than double
the current installed capacity in remaining technical potential.
Implementing the Long-Term Energy Plan will add another
1,000 MW of clean “Made in Ontario Waterpower” and
there remains significant untapped potential, particularly in
the north, where load growth is predicted.
As Ontario prepares to contribute to the development
and implementation of a Canadian Energy Strategy, the
foundation of waterpower and its potential expansion will be
of critical importance.
Source: Canadian Electricity Association
Climate change has, appropriately, been called the challenge
of this generation. Extreme weather and overall warming
trends of today are attributed to anthropogenic influences
dating back decades and, similarly, the actions of today
will be felt in decades to come. Ontario’s initial economic
prosperity was built upon its primary renewable resource
– waterpower – and, as such, the province is in a strong
starting position in the electricity sector. The sustainable
development of waterpower potential in Ontario and across
Canada can continue to make a significant contribution to
achieving climate change objectives for the benefit of both
present and future generations.
The Power workers’ Union:
The Voice of Ontario’s
Electricity Sector workers
For almost 70 years the Power Workers’ Union (PWU) has worked hard to improve the quality of life of electricity sector
employees and retirees. We’ve toiled to ensure: public safety; accident-free workplaces; good working conditions, wages and
benefits; and, that employees are treated with fairness and respect. The PWU knows that Ontario’s Electricity Sector will continue
to change and that we still face many workplace challenges. Today, the PWU is a modern multifaceted union representing
members in 49 Bargaining Units at companies throughout Ontario. The Power Workers’ Union is the voice of people who work
in Ontario’s electricity production and delivery system.
FROM THE MEn and wOMEn wHO HELP KEEP THE LIGHTS On.
First Nation Challenges to Hydroelectric Development –
A Tale of Two Provinces
Guest article by Julie Abouchar, Partner and Certified Environmental Law Specialist
and Nicole Petersen, Associate Lawyer, Willms & Shier Environmental Lawyers LLP.
Ontario and British Columbia have both invested heavily
in infrastructure to generate inexpensive power. Each
province considers hydroelectric development a central
component of its long term energy policy. Both provinces
have longstanding legacy issues arising from a failure to
consult First Nations about large provincial hydroelectric
developments in the 1960s.
The proposed Site C Clean Energy Project (Site C) in
British Columbia offers an opportunity to consider how
the two provinces differ in their modern approach to
hydroelectric development. The environmental approvals
of Site C have generated applications for judicial review
filed at the provincial and federal courts. Among the parties
challenging the hydro development are several First Nation
communities, including Treaty 8 Tribal Association, the
Athabasca Chipewyan First Nation and the Mikisew Cree
First Nation. The Peace Valley Landowners Association is
also challenging Site C.
Several large hydro developments have taken place in
Ontario and proceeded without the vigorous political and
legal challenges advanced by First Nation communities.
This article reflects on the historical, policy and legal
reasons for the challenge to Site C in British Columbia and
makes a comparison with hydro development in Ontario.
The Proposed Site C Project
BC Hydro’s proposed Site C is a hydroelectric generating
station providing 1,100 megawatts (MW) of capacity,
producing approximately 5,100 GW/h of electricity per
year. The project would be the third dam on the Peace
River, constructed near Fort St John in British Columbia.
The accompanying reservoir would flood approximately
13,000 acres of land.
An independent Joint Review Panel by agreement of
the federal and provincial governments conducted an
environmental assessment, releasing its Report on
May 1, 2014. The Joint Review Panel found that Site C
would provide benefits, including “a large and long-
term increment of firm energy and capacity at a price
that would benefit future generations”. The Joint Review
Panel commented on the significant adverse effects of
Site C, including cumulative impacts to the environment,
the exercise of Aboriginal rights and treaty rights, and to
farmland. The Joint Review Panel also questioned whether
BC Hydro had adequately assessed the cost associated
with alternatives to Site C.
The Site C project received conditional environmental
approvals from the federal and provincial governments. The
project is currently undergoing an investment review. Minister
Bill Bennett has indicated that a decision about whether
to construct the dam will be made by December 2014.
Key Differences Between Ontario
and British Columbia Hydropower
Hydroelectric development in Ontario has proceeded on
a different basis from British Columbia for some years.
Currently, several hydropower projects in Ontario are
moving forward through the regulatory and construction
processes. Recent Ontario projects have advanced with
increased social licence. Ontario’s hydro projects differ
from Site C in their overall size, the regional cumulative
impacts of development on treaty rights, the involvement
of First Nations in the planning process, the perceived
and actual benefits that flow to First Nations from the
projects, and settlement of past grievances related to
hydro development.
Individual Project Size
A simple but important factor distinguishing hydro
development in Ontario from British Columbia is the project
size. The scale of the largest hydroelectric development
in British Columbia and in Ontario are of entirely different
magnitudes – those in British Columbia are more than
twice as large as those in Ontario. Ontario’s largest
hydroelectric project is the Lower Mattagami Complex,
which is broken up over four existing power stations on
the Mattagami River. Total added capacity from the four
power stations is 438 MW – less than half the 1,100 MW
capacity of British Columbia’s proposed Site C project.
The average capacity of the Ontario projects contracted
through the Feed-in Tariff Program is less than 10 MW. The
size of a project influences the level of regional impact at
a basic level.
Cumulative Impacts on Treaty Rights
Hydroelectric development has the potential to adversely
affect or infringe constitutionally-protected Aboriginal
treaty rights. Where the Crown proposes activity that will
infringe an Aboriginal treaty right, the Crown must justify
infringement of the treaty right or obtain the consent of the
First Nation. In Ontario, most hydroelectric development
takes place in areas that are not as developed as Site C’s
proposed location in the Peace Valley.
BC Hydro will likely need to demonstrate that the Site C
dam justifies infringing Aboriginal treaty rights. This may be
more difficult in light of case law about cumulative impacts
of development near the proposed Site C location.
In 2011, the British Columbia Court of Appeal’s decision in
West Moberly First Nation v British Columbia i discussed
the cumulative impacts of development on the exercise
of Aboriginal treaty rights in Treaty 8 territory. The First
Nation asserted that allowing sampling – with a view to
allowing coal mining – would affect treaty rights to hunt
caribou in the First Nation’s traditional territory. The Court
found that further development in the area would likely
lead to the extirpation of a herd of caribou to which the
First Nation claimed a harvesting right under Treaty 8. The
Court found that British Columbia and the proponent failed
to properly address these concerns during consultation,
and that extirpation of the herd would improperly result in
the effective extinguishment of the right.
The Joint Review Panel found that cumulative impacts
from surrounding projects will compound the adverse
effects from Site C. The Peace Valley region’s existing
development includes both hydro development as well
as mining and petroleum/natural gas projects. Site C
would be constructed downstream of the existing WAC
Bennett dam and the Peace Canyon dam. Constructed
in the 1960s, the two dams are fed by the large Williston
Reservoir, which, when it was constructed, flooded
350,000 acres of land.
Julie Abouchar
Nicole Petersen
The applications for judicial review question the federal
government’s approval of Site C on the grounds that the
Joint Review Panel found significant adverse impacts from
Site C, while the “unambiguous need for the power” has
not been demonstrated. The test to justify infringement
involves demonstrating a “compelling and substantial
public interest”, as articulated in the recent Supreme Court
of Canada decision in Tsilhqot’in Nation v British Columbia.ii
If the federal and provincial governments cannot justify
the impacts to treaty rights that would be caused by Site C,
the Court may quash the environmental approval.
Co-Planning
Both Ontario and British Columbia embarked on extensive
hydroelectric development in the 1960s. The unmitigated
impacts of this development caused considerable anger
among First Nations and is a residual issue that both
provinces have faced in opposition to hydro projects. Both
provinces have paid out substantial settlements to address
past grievances associated with the 1960s development.
However, a key difference between the two provinces was
how hydro development planning took place after the past
grievance resolution process commenced.
When Ontario committed itself to negotiations to resolve
past grievances, it also committed itself to co-planning
with First Nations about future hydroelectric developments
that would affect First Nations. The co-planning initiative
arose as part of Ontario’s 25 Year Demand/Supply Plan
initiative. This policy shift recognized the need for First
Nations’ support for development.
While BC Hydro has engaged with First Nations on the
Site C project, consultation and engagement have taken
place as part of the Joint Review Panel process instead
of on a co-planning level. Minister Bill Bennett is hopeful
that, while First Nations may not support the project, they
will recognize the potential for economic opportunities that
could arise from its construction and operation. Contrast
this with the fact that in Ontario’s Far North, where
significant transmission expansion is planned to connect
diesel dependant First Nation Communities, the ability to
develop hydropower in the first instance is premised on
proponency by or partnership with local First Nations.
Partnerships with First Nations
Since the development of co-planning in the 1990s, most
hydroelectric development in northern Ontario has either
provided direct benefits to, or been constructed and
operated in partnership with, First Nations.
Examples of two recent large developments include
the Lower Mattagami Complex and the Umbata Falls
Generating Project. The Lower Mattagami Complex
is a 438 MW project that offers First Nation community
investment. It has provided significant opportunities for
Aboriginal business development, including over $300
million in contracts. Ontario Power Generation has also
committed to and implemented a training program for First
Nations, creating a database of trained candidates for
employment. Human Resources and Skills Development
Canada, Ontario Power Generation, the Ministry of Skills
Development and Training and the project contractors
together provided $8 million for training. Ontario Power
Generation says the training program trained 350 persons
with a 96% successful completion rate. The Umbata Falls
Generating Project is another example of successful First
Nations partnerships. The project is a 23 MW project that
is majority-owned by Ojibways of Pic River through the
Begetekong Power Corporation.
BC Hydro is moving to a similar model of negotiating impact
benefit agreements with First Nations on capital projects,
where appropriate. British Columbia is in negotiations
with local First Nation communities about mitigating
impacts to those communities. In addition, the conditions
attached to the provincial environmental approval include
exploring economic opportunities for First Nations. To our
knowledge, there have been no impact benefit agreements
nor partnerships created in relation to Site C. The Joint
Review Panel noted BC Hydro identified training and
business opportunities for First Nations as planned project
benefits. Some commentators, such as Clean Energy BC,
have suggested that smaller projects would offer greater
opportunities for economic development to First Nations
than Site C.
Conclusion
Site C demonstrates the powerful need for a social licence
for projects. Ontario’s modern hydro development has
benefitted from a planning approach that provides for
early consultation and often includes First Nations as
partners. This approach, as well as the comparative size
and location of Ontario’s projects, has helped to partially
insulate Ontario’s hydro providers from legal challenges
based on impacts to treaty rights. However, individual
projects may still be vulnerable to challenges on the
basis of treaty right infringement. Ontario and hydropower
producers within the province should remain committed to
early engagement with First Nations during the planning
process to ensure minimal risk to hydro projects and
positive relationships with local communities.
Julie Abouchar is a partner at Willms & Shier Environmental
Lawyers LLP in Toronto and is certified as a Specialist in
Environmental Law by The Law Society of Upper Canada.
She can be reached at 416-862-4836 or by e-mail at
[email protected].
Nicole Petersen is an associate lawyer at Willms & Shier
Environmental Lawyers LLP in Toronto. Nicole may
be reached at 416-642-4872 or by e-mail at
[email protected].
The information and comments herein are for the general
information of the reader only and do not constitute legal
advice or opinion. The reader should seek specific legal
advice for particular applications of the law to specific
situations.
i
West Moberly First Nation v British Columbia (Chief Inspector of Mines),
2011 BCCA 247.
ii
2014 SCC 44.
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Engaging and Informing the Political Process
A key element of the Ontario Waterpower Association’s
value proposition is to represent our members’ interests
and work with all political parties to advance the role
of waterpower to help meet the province’s economic,
environmental and energy objectives.
To further this objective, on March 26, 2014, the OWA
hosted its inaugural “Queen’s Park Day,” outreaching to
and engaging key Members of Provincial Parliament. With
more than fifty (50) OWA members, dozens of MPPs and
their political staff participating, the event reinforced the
importance of waterpower as Ontario’s First Choice.
Events like Queen’s Park Day provide the opportunity to
inform legislators of the importance of waterpower, but
building these relationships is not limited to one day of the
year. Key to building positive and productive government
relationships is;
• Constantly researching, analyzing and understanding
legislation or regulatory proposals;
• Developing and providing detailed input and advice
from the industry perspective;
• Identifying key issues affecting the sector;
• Working with others interested in the same issues;
and,
• Developing and proposing collaborative solutions
to issues identified.
OWA Members and Government Officials
Networking on Queen’s Park Day
What many people regard as lobbying — the actual
communication with elected officials — represents a small
piece of what the Association does. A far greater proportion
is devoted to the other aspects of advocacy including
preparation, information gathering and communication.
OWA’s Queen’s Park Day provided members with the
opportunity to connect with provincial leaders to discuss
views and, importantly, provide insight regarding the
important work the Association does with MPPs.
Key messaging at the event included;
• Waterpower Moderates Electricity Prices
• Waterpower Makes a Significant Contribution
to the Economy
• Waterpower is the Backbone of Grid Reliability
• Waterpower Expansion is Key to Northern Aboriginal
Economic Opportunity
Political decisions affect both people and organizations,
facts must be provided to our legislators in order for them
to make informed decisions. Public officials cannot make
fair decisions without considering all the information from
a broad range of interested parties. All sides of an issue
must be explored in order to produce good public policy.
OWA members have seen firsthand the importance of an
organized event at Queen’s Park and opportunities like
this are beneficial for building positive relationships. We
recognize the value in this, which is why plans are already
underway for 2015.
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Parks Canada:
In the Hydro Business
In early 2014, the Ontario Waterpower Association
(OWA) and Parks Canada released a report tabled with
the federal Minister of the Environment and announced
a “New Business Relationship” between the Ontario’s
waterpower sector and the federal government. The
report represented the culmination of efforts initiated in
2012, with the shared objective of developing a more
structured and collective approach to addressing key
policy issues that pertain to the support of waterpower
development. Parks Canada and the OWA collaborated
for the purpose of assessing the existing business
relationship and identifying recommendations related to
a number of key policies and procedures that govern the
federal government and the waterpower industry.
The focus of the report is to provide policy and procedural
recommendations to promote policy, regulatory, investment,
and revenue certainty and consistency, benefiting both the
federal government and waterpower industry.
Importantly, the analysis and advice presented has been
undertaken collaboratively, the result of which is consensus
on the key recommendations. In fact, the process in and
of itself created momentum with respect to an improved
business relationship between the two parties. Advancing
key priorities has already gained momentum, as evidenced
by improved operational collaboration in 2014.
The effort to advance the relationship was informed by
the mutual recognition of the need for improved clarity
and certainty with respect to key areas of public policy
relevant to the use of federal waterways for waterpower
production. To guide the process and the development
of a strategic policy framework, four (4) core interrelated
questions were posed:
1.How can tenure and permitting instruments contribute
to shared objectives?
2.What is the appropriate approach to the valuation of
federal waterways for the production of hydroelectricity?
3.How should the federal government provide resource
access for new waterpower development? and
4.What improvements can be made in communications
protocols and procedures between operators of water
management infrastructure?
Underlying each of these questions is the fundamental
premise that the federal government (i.e. Parks Canada)
is in and should be in the hydro business on federal
waterways. As of the fall of 2013, the Parks Canada
Agency administered twenty (20) waterpower licences,
three (3) priority permits and twelve (12) related
waterpower agreements. On average, the occupation of
federal waterways by waterpower facilities accounts for
approximately $1.3 million annually in dedicated revenue
to Parks Canada’s Ontario Waterways Directorate.
Approximately 100 MW of installed capacity is present on
federal waterways in Ontario.
In addressing these questions, government / industry
working groups adopted a common evaluative approach
that involved:
• Documenting the current state (e.g. policies, protocols,
procedures);
• Evaluating the approaches taken by other jurisdictions,
notably the provincial government;
• Assessing alternatives; and
• Providing advice and recommended improvements.
Specific recommendations from the working groups in
each of the four policy themes were provided in the body
of this report. Given the inherent interrelationship between
the themes, a number of common observations and
recommendations were made, and are considered Key
Findings, as follows:
• There is clear recognition of shared financial interest
in optimizing existing waterpower production and
expanding development opportunities.
• There is a need to further build on the existing
consistency between federal and provincial instruments,
policies and procedures.
• There is a need to formalize and institutionalize
communications policies, procedures and protocols in
a number of critical areas including water management,
annual capital investment and public safety.
• There is a need to define the parameters under
which opportunities for shared investment in water
management infrastructure that can achieve mutual
benefit can be explored and pursued.
While more than forty (40) detailed recommendations were
included in the working group reports, highlights of each
include:
1.Permits and Licences
- Ensure operational agreements are included in all
licences
- Adopt a standardized format for operational agreements
- Incorporate the terms and conditions of the generic
provincial waterpower lease agreement into the federal
licence to the extent possible and practical
2.Resource Revenues and Fees
- Adopt the terms and conditions of the provincial
waterpower rental regulations as federal policy to
the extent possible and practical
- Implement a clear and consistent policy approach
to capital investments made by industry in federal
infrastructure
- Implement a clear and consistent approach to
operational agreements and cost sharing
3.Site Release and Development
- Complete the inventory of potential waterpower
development sites on federal waterways as soon
as possible
- Make development opportunities available on
a systematic basis, considerate of the capacity
of the Parks Canada Agency
- Make new development opportunities available
through a competitive process for larger sites
and through unsolicited proposals for smaller sites
4.Communications and Information Management
- Develop and share emergency preparedness planning
and public safety measures collaboratively to the extent
possible and practical
- Standardize key information with respect to contacts,
communications methods, protocols and processes
across industry and federal facility managers
- Leverage and share federal and industry use of
communication and information management tools
In order to move forward on the New Business Relationship
and the Strategic Policy Framework for Water Power, the
Parks Canada Agency has created dedicated “Business
Development” positions, including positions with a specific
focus on waterpower. Work is underway to support the
provision of new development opportunities in anticipation
of the Large Renewables Procurement. And information
and knowledge exchange has been regularized on
operational priorities such as public safety.
The New Business Relationship represents a paradigm
shift with respect the recognition of the value of waterpower
on federal waterways and sets the direction for a future
defined by collaboration and cooperation toward the
achievement of shared objectives.
Water & Energy: A Delicate Balancing Act
Guest Article by Jamison Romano, Aquatic Informatics Inc.
There has been a lot of talk lately about the water,
energy and food security nexus. The recognition that
these three things are connected and can’t be managed
independently as a management decision in one sector
inevitably has an effect in another. Think of it this way.
Water is used in many of our energy generation
methods. Whether it’s hydro power, thermal generation,
oil extraction, etc., water is vital to most current energy
production methods. That might not be a problem except
water is also vital for agriculture, industry, drinking water,
domestic use, waste removal and recreation. Energy
is also required for many of those exact same things.
How do we decide who gets the water? Population
increases and worldwide development are putting more
pressure on energy and water worldwide. How do we
plan development to alleviate or at least mitigate these
pressures? The human and financial ramifications of
decisions today will have impacts long into the future.
The World Bank has taken notice of the energy/water
crisis that is approaching. At the World Future Energy
Summit and the International Water Summit in Abu
Dhabi, William Rex, lead water resources specialist at
the bank, explained with the world’s energy consumption
expected to increase by 35 per cent by 2035, the
pressure on water resources is likely to increase, as well
he said, while continuing urbanization, industries and
agriculture will also continue to exert pressure on water
resources. “We see, for example, thermal power plants in
several countries around the world that have had to stop
generating because they lack the water used for cooling,”
Mr. Rex said. The World Bank has launched an initiative
to tackle the water footprint of energy generation called
Thirsty Energy. Mr. Rex said the objective was “to develop
water-efficient energy, energy-efficient water and, most
importantly, the tools to plan and manage these two
critical resources together”. (Todorova, 2014)
We all require energy for heat, transportation, light and
other day to day activities. We also require clean water to
drink, clean and grow food. This conflict between water
usages isn’t going away anytime soon. Water treatment,
recycling, use reduction and process efficiency can help
mitigate some of the demand but not all. Forecasts of
more unpredictable weather and less rain will add further
pressure on water resources. Planning is more important
now than it has ever been.
Plans need to be adaptive and in order to be adaptive
you need real-time data. To get real-time data you need
monitoring. Monitoring is vital to planning and management,
by monitoring we enable informed decisions that can put the
right projects in the right places and allow for the protection
of important and sensitive areas. Having modern adaptive
systems in place to track, report, disseminate and protect
data is vital. Integrated systems with current data regarding
usage and supply that can also feed into forecasting tools
and models can provide mangers with the information they
need to make decisions. Water resource management
is not going to get any easier as demands grow and the
climate changes. The need not just for data but information
will become more and more important.
Jamison Romano is a Hydrology Specialist at Aquatic
Informatics Inc. He can be reached at 604-873-2782 or by
email at [email protected].
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Worth Repeating – the Growing Aboriginal Market
While the waterpower industry and the OWA continue to
work to advance partnerships with Aboriginal communities,
particularly in Northern Ontario, and while efforts are
ongoing to build capacity collaboratively, the fact that
the Aboriginal market itself is growing significantly in the
context of the Canadian economy is often overlooked.
As evidenced in this excerpt from a 2011 TD Economics
Report, undertaken with the support of the Canadian
Council of Aboriginal Business (CCAB), investors and
employers would be wise to look to the opportunities this
emergent and growing market can provide. The report
also points to the importance of innovative approaches
to education, from both governments and businesses,
as a key to realizing the significant untapped potential
of the Aboriginal market, an observation the OWA has
embedded in our partnerships with the Chiefs of Ontario
and Queen’s Aboriginal Access to Engineering Program.
$32 billion in combined income across households,
businesses and governments by 2016
Over the past decade, Aboriginal people in Canada –
both on- and off-reserve – have been increasingly flexing
their economic muscle. TD Economics estimated that the
combined total income of Aboriginal households, business
and government sectors would reach $24 billion in 2011,
double the $12 billion tally recorded in 2001. By 2016, it
is estimated that this overall income pie could eclipse $32
or roughly 50% above the 2011 level. If achieved,
Specialbillion,
Report
TDbeEconomics
total
Aboriginal
income would
greater than the level 4
of
June 17, 2011
www.td.com/economics
nominal GDP of Newfoundland and Labrador and Prince
boriginal
ccounted
and the
DCs) has
usinesses
aggregate
that data
ying this
be on the
s. Anecned enting at our
boriginal
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ed shares
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mplifying
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ed nature
ABORIGINALBUSINESSINCOmEREPRESENTS
GROWINGSHARE
14,000
12,000
$, millions
$, millions
EDC Revenues (lhs)
1400
1200
Small Business Earnings (rhs)
10,000
1000
8,000
800
6,000
600
4,000
400
2,000
200
0
0
2001
2006
2011F
2016F
Note: Forecasts by TD Economics as at June 2011.
Source: Statistics Canada, Industry Canada, CCAB.
economic activity. In almost all cases, the firm is located
in the community the corporation represents. In fact, the
enterprise is often owned by the Aboriginal government.
In recent years, these community businesses have taken
on greater economic importance. In response, and to better
understand the nature of this type of commerce, the Canadian
Council for Aboriginal Business (CCAB) commissioned a
Edward Island combined. While households and community
governments have been participating in this growth, the
most significant expansion of the overall Aboriginal market
is being recorded within the business sector.
Many non-Aboriginal businesses already recognize the
contribution that Aboriginal people can make to fill growing
labour shortages, especially as the Canadian population
ages. However, there is less recognition of the fact that the
Aboriginal segment of the overall population represents a
rapidly growing consumer market and a potentially lucrative
one for Canadian businesses.
Still, one cannot overlook the significant challenges that
remain. When income gains are adjusted for the rapid
population growth among Aboriginal people, little progress
is being made in reducing the disparity in living standards
relative to the Canadian average. In fact, the Canadian
Centre for Policy Alternatives noted that the median income
for Aboriginal people was 30% lower than the median
income for all other Canadians in 2006. For Aboriginal
people to truly put a dent in this divergence over the long
run, the gap in education attainment needs to be closed.
Total business income hits $9 billion
A decade ago, the business share of the total Aboriginal
market represented was 35% and small businesses
accounted for the dominant share. Fast forward to today,
and the number of economic development corporations
(EDCs) has increased and so too have annual earnings.
Small businesses and EDCs combined now contribute
about 37% to aggregate annual income.
Starting with the income of small businesses, anecdotal
evidence suggests that most Aboriginal-owned entities
have less than a hundred employees. According to TD
estimates, there are nearly 25,000 Aboriginal-owned
entities across the country and collectively, they would
bring in about $974 million in earnings in 2011. EDCs are
now the other key player in this income category. These
entities are the economic and business development
arm of an Aboriginal government that pursues economic
activity. In almost all cases, the firm is located in the
community the corporation represents. In fact, the
enterprise is often owned by the Aboriginal government. In
recent years, these community businesses have taken on
greater economic importance.
From a survey commissioned by the CCAB, each
community-based business had on average 185
employees and had been in business for 17 years. The
average annual gross sales in 2010 were roughly $28
million per firm. The point in time estimate and the maturity
of each business suggests that a moderate expansion in
the number of organizations had probably taken effect
over several years. The report estimated that roughly
ten new EDCs have been set up each year since 2001,
consistent with the historical trend. Still, the small number
of corporations has led revenues to more than double
over the past decade. In 2011, annual earnings (before
expenses) were projected to reach $8.1 billion. Going
forward, TD expected to see outsized revenue gains as
well as more communities adopting this type of business.
Income pie to grow to $32 billion by 2016
With decade-long trends in hand, and given the view on
the national and regional economic outlook, TD projected
what market income (including discretionary government
funding) might be in 2016. Key factors indicating that
positive winds of change were in place, included: (1) bright
long-term prospects for the resource sector; (2) growing
skills shortages; and (3) 2004 Supreme Court decisions
that established that governments have a legal obligation
to consult Aboriginal communities about potential
resource development projects. And while off‑reserve
Aboriginal people enjoy the brightest income prospects,
impact benefit agreements and corporate investments into
communities are increasingly bringing in more financial
benefits to communities. Going forward, it is expected that
these types of relationships and financial arrangements
will continue to blossom.
Closing the education gap key to long-term growth
Between 2001 and 2011, the size of the Aboriginal income
market (+7% per year) has grown at a faster pace than
over-all Canadian nominal GDP (+4% per year). The
near-term outlook suggests that this trend will continue.
By 2016, the $32 billion tally will be a lucrative market to
non-Aboriginal and Aboriginal companies alike. Despite
the growing pie, the level of total income on a per-capita
basis is not only unlikely to narrow the gap with that of nonAboriginal people (as measured by nominal GDP) but it
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could widen further. Over the long haul, the most important
impediment to closing the gap in living standards is the
sub-par education attainment levels recorded by Aboriginal
people. The recent outperformance and sizeable gains
can be connected to the recent resource and construction
booms that offered Aboriginal people well-paying jobs
without necessarily having high school certification. As
was the case in the 2008-09 downturn, these individuals
often have little certification or training to fall back on when
the boom sours.
Recent developments in e-learning programs and adult
education programs are important steps in the right
direction. Still, to ensure that individuals and communities
take advantage of all the income potential ahead of
them, policy makers in connection with businesses and
academics will need to think of inventive ways to educate
individuals and communities.
2015 – A Year of Stability and Differentiation
2014 was a year of significant activity for the waterpower
sector, particularly in new procurement and policy. The
year began with the awarding of contracts under the
Municipal Hydroelectric Standard Offer Program (HESOP)
and the development of new projects in Ottawa, Renfrew
and St. Catharines. The HESOP expansion initiative
followed, providing for the procurement of up to 40 MW of
additional capacity at existing facilities. FIT 3.0 for small
projects extended 100 MW with an additional 200 MW to
be procured in 2015, both at a new price for waterpower
that is more reflective of input costs for projects at that scale.
And throughout the year the OPA led the development of
the design of the Large Renewables Procurement, with
results to date of the Request for Qualifications yielding six
(6) waterpower proponents competing for 75 MW in 2015.
And while there is considerable work left to do to help inform
the LRP procurement, Small FIT and potential subsequent
rounds of HESOP, 2015 and beyond is relatively well
mapped out with respect to the timetable of opportunities
to bring new projects forward.
On the policy side, notwithstanding that direction is
still required on approvals under the Lakes and Rivers
Improvement Act, the OWA and government have landed
on guidance with respect to defining baseline conditions
against which new projects will be assessed, as well as
the determination of the downstream zone of influence.
Industry experts have led the development and publication
of additional best practices on wetlands, migratory birds,
water quality and ecological flows. The OWA’s Five Year
Review of the Class EA was approved, as were a number
of minor amendments brought forward by both practitioners
and third parties. Mitigation and monitoring plans pursuant
to the Endangered Species Act have been prepared and
registered. And work is underway to develop a collective
and collaborative approach to pre- and post-construction
monitoring to help inform science and information gaps and
improve predictive modeling.
Add to this incremental progress the reality of a majority
government with clear and public ministry mandates and
one can presume, relative to the alternative, a coming
year of relative stability in the industry. No better time,
then, to advance the differentiation of waterpower from
other technologies.
Put simply, waterpower has not fared well in the “one size
fits all” approaches to procurements and policies. Far more
productive have been the separate and distinct initiatives
focused specifically on hydro, such as the HESOP initiatives
and the Hydroelectric Supply Agreements with OPG. The
necessary extension of the waterpower FIT contracts from
five (5) to eight (8) years due to “unique regulatory and
approvals requirements” is but one example of how very
different the development of a waterpower project is.
Take, for example, the generic policy which provides no
indexation against inflation until commercial operation and
consider this significant difference in risk profile for a technology
that can be built in two (2) or three (3) years and one that takes
seven (7) or eight (8). Add to that the reality that virtually all
waterpower projects are on Crown land while the majority of
the other renewable projects are on private land. Current
Crown land policy provides that resource access (i.e. a
site) is premised on securing a procurement contract, yet
evolving procurement policy (e.g. LRP) emphasizes the early
engagement of the public and stakeholders as a pre-condition
to obtaining a contract. A waterpower proponent is caught in a
Catch 22 – having to communicate and consult on a proposed
project for which no access can be granted! Layer on the fact that
waterpower is not subject to the Renewable Energy Approvals
process, but rather the Class Environmental Assessment and
the policy differentiation becomes even more stark.
The OWA has consistently and constantly brought forward
the unique aspects and ancillary values of waterpower in the
context of broad electricity, environmental and economic policy.
Measures designed to resolve issues associated with other
technologies have had and may continue to have unintended
consequences for the waterpower industry. The most rational,
reasonable path forward is one of increased differentiation,
both in terms of procurement and policy. The relative stability
of 2015 provides the opportunity to take this message forward.
BUILDING CLEAN POWER FOR ONTARIO
The Lower Mattagami Project will produce 438 more megawatts
of clean, renewable hydroelectric power for Ontario. This $2.6 billion
partnership between Moose Cree First Nation and Ontario Power
Generation is also providing skills development and jobs for local and
First Nations people. We’ve already completed construction on four of
six new generating units — on budget and ahead of schedule. We’ve
got two more to go — all tracking on time for completion in 2015.
To learn more about OPG’s efforts to help build a clean, reliable and
efficient electricity system for Ontario, please visit opg.com.
@opg
OP-3421_LMP_ResizeB.indd 1
opg.com
2014-11-14 2:58 PM
Proud OWA Members
4DM Inc.
635294 Ontario Inc.
Access Capital Corp.
Active Powersports & Machine Inc.
AECOM
Aird & Berlis LLP
Algonquin Power
Allied Power Controls
Alstom
Andritz Hydro Canada Inc.
Aquatic Informatics Inc
Association of Power Producers of Ontario
Axor Group
Baird & Associates
Belzona Great Lakes Ltd
Bennett Jones LLP
Biogas Association
Blake, Cassels & Graydon LLP
Blumetric Environmental Inc.
Boralex Inc.
Bowfin Environmental Consulting Inc.
Bracebridge Generation Ltd.
Brookfield Renewable Power
Camerado Energy Consulting Inc.
Canadian Dam Association
Canadian Hydro Components Ltd.
Canadian Hydropower Association
Canadian Projects Limited
Canadian Wind Energy Association
Capstone Inferstuctures Corporation
Casselman Generating Station
Coastal Hydropower Corporation
Coral Rapids Power Inc.
Corbu Consulting Inc.
Corpfinance International Limited
Dessau
Digital Engineering
Dillon Consulting
Diving Services Inc.
Eaton Industries
Ecofish Research Ltd.
Electricity Distributors Association
Elliot Falls Power Corporation
Enerdu Power Systems Ltd.
Energie Kapuskasing Energy
Energy Council of Canada
Energy Ottawa Inc.
Enisol Inc.
Fogler, Rubinoff LLP
Forest and Land Control Inc.
Fortis Properties Corporation
Fox High Impact Consulting
GDF SUEZ Canada Inc.
Gemini Power
Goldcorp
Golder Associates Ltd.
Grand River Conservation Authority
Gravel Power Corp.
GreenBug Energy Inc.
Groundwater Environmental Management
Services Inc.
H2O Power
Hatch
Hatch Ltd.
HCMS Canada Inc
HDR Corporation
Horizon Hydro
Hutchinson Environmental Sciences Ltd.
Hydro One Remote Communities Inc.
Hydro Tech Inc.
Hydromega Services Inc.
Hydrosys Consultants Inc.
IBI Group (Canada) Inc.
IKM Testing Canada
Imperium Energy Inc.
Indar Electric, S.L.
Innergex Renewable Energy (IRE)
Jancal Power Ltd.
Kagawong Power Incorporated
Kapuskasing Economic Development Corp.
KBM Resources Group
KGS Group Incorporated
Kisters North America Inc.
Kleinschmidt
KRIS Renewable Power Ltd.
L.W.M.S. Ltd.
Lizard Creek Power
Long Slide Power
Lumos Energy
Martin Merry & Reid Limited
Mavel Americas Inc.
McGhee-Krizsan Engineering Limited
McLeod Wood Associates Inc.
McMillen, LLC
Méga-Pro Énergie Inc.
Mississauga First Nation
Mississippi River Power Corp.
MOBEC Engineering
Morgan Geare Group
mPower North
Multistream Power
MWH Canada Inc.
Natural Resource Solutions Inc.
Norcan Hydraulic Turbine Inc.
North/South Consultants Inc.
Northern Ontario Power Co. Ltd.
Northland Power Inc.
Norton Rose Fulbright Canada, LLP
Oakville Hydro Energy Services Inc.
OFNEDA
Ontario Environment Industry Association
Ontario Power Generation
Orillia Power
Ortech Consulting Inc.
Ossberger Canada
Parsons Brinckerhoff
PCL Constructors Canada Inc.
Pennwell
Peter Kiewit Infrastructure Co.
Peterborough Utilities Inc.
Pic River First Nation
Planning Solutions Inc.
Power Limited Partnership
PowerTel Utilities Contractors Ltd.
Premier Environmental Services Inc.
Queen’s University
Quinte Conservation Authority
Raffaele Energy Inc
Regional Power
Renfrew Power Generation
Sealogic Innovations Corp.
SENES Consultants Limited
Serpent River Power Corporation
Shaman Power Corporation
SLR Consulting
SNC Lavalin Inc.
South River Power Generation Corp.
Spaans Babcock
St. Catharines Hydro Generation Inc
St. Lawrence Seaway Management Corporation
Stantec Consulting
Sussex Strategy Group
T Tung Hydraulic and Renewable
Energy Technologies
The Canadian Centre for Energy Information
The Chant Group
The MEARIE Group
Timber Run Hydropower Corporation
Torys LLP
Trelleborg Sealing Solutions Canada
Tribute Resources
Vale Canada Inc
Valve and Gate Group - Canada
Voith Hydro Inc
Wabun Tribal Council
Weir American Hydro
Willms & Shier Environmental Lawyers LLP
Windeau Investments
Wolverine Hydro Inc.
WSP Group
Xeneca Power Development
Where EXPERIENCE
Meets VISION
With decades of EXPERIENCE,
Jacobs Associates, is
considered a global leader
in providing underground
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providing comprehensive multidiscipline technical capabilities on a wide range of water
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2015 Industry Events Listings
Biogas Association
Value of Biogas Workshop and Tours
March 25-26
Hamilton, ON
Canadian Wind Energy Association
CanWEA 2015
October 5-7
Toronto, ON
National Hydropower Association
Annual Conference
April 27-29
Capital Hilton,
Washington, D.C.
CanSIA
Solar Canada 2015
October 7-8
Toronto, ON
Canadian Hydropower Association
Forum on Hydropower
May 14-15
Ottawa, ON
HydroVision International
July 14-17
Oregon Convention Centre
Portland, Oregon
Ontario Waterpower Association
Power of Water Canada Conference
October 18-20
Niagara-on-the-Lake, ON
APPrO
Annual Canadian Power Conference
and Networking Centre
November 17-18
Toronto, ON
Order your signs now to have in hand by
February 2015
15th annual
power
of
water
Canada
2015 Annual Conference and Tradeshow
Ontario Waterpower Association
Niagara-on-the-Lake, Ontario | October 18-20, 2015
The 15th annual Power of Water Canada Conference will take place from October 18-20, 2015
in Niagara-on-the-Lake. Don’t miss out! Register early by contacting Janelle Bates,
Marketing and Event Coordinator, [email protected] or 1-866-743-1500 ext. 23.
SAVE THE DATE!
OCTOBER 18-20, 2015
conference.owa.ca
Best Management
Practices for Waterpower
OWA guides have been developed to provide practical
and current Best Management Practices (BMPs) that
will assist proponents in determining how best to
construct, rehabilitate or repair waterpower facilities
in an environmentally sustainable manner.
Mitigation of Impacts
of Waterpower Facility Construction
$59.95 CAN
Includes 38 BMPs outlining legislation,
environmental management, construction,
contingency plans and MUCH MORE!
NEW EDITIONS:
Wetlands, Migratory Birds,
Surface Water Quality and
Fish Sampling
IAL
SPECD TIME
TE
LIMI FFER: t
O
Ps se
BM
N
Four 25.00 CA
d
1
for $ xes not include
*Ta
Species at Risk BMPs
$29.95/each CAN
• American Eel
• Channel Darter
• Lake Sturgeon
To order OWA BMP guides, please call 1-866-743-1500. To be informed of new BMPs released, please email [email protected]
www.owa.ca
*
Send Your
Complex
Energy Matters
Downstream
With a wealth of insight and experience in the waterpower
industry, Aird & Berlis LLP provides practical legal advice to
developers and operators on a broad spectrum of energy issues.
Rely on us for optimal results.
Scott Stoll | [email protected] | 416.865.4703
airdberlis.com