final environmental study report for the phase 2 first nation...

WATAYNIKANEYAP POWER L.P.

Final Environmental Study Report for the Phase 2 Connecting 17 Remote First Nation Communities Project Section 1.0: Introduction

Report Number: 18102677 GAL-005-REP-V1

November 2018

FINAL ENVIRONMENTAL STUDY REPORT FOR THE PHASE 2 CONNECTING 17 REMOTE FIRST NATION COMMUNITIES PROJECT SECTION 1.0: INTRODUCTION

November 2018 Report No. 18102677 GAL-005-REP-V1 1-I

Table of Contents

1.0 INTRODUCTION ......................................................................................................................................................... 1-1

1.1 Project Overview ............................................................................................................................................ 1-1

1.2 Proponent ....................................................................................................................................................... 1-4

1.3 Proponent Background ................................................................................................................................... 1-5

1.4 Background on Electricity Sector Planning in Ontario..................................................................................... 1-7

1.5 Rationale and Purpose of the Project ............................................................................................................. 1-8

1.5.1 Rationale for the Project ........................................................................................................................... 1-8

1.5.2 Purpose of the Project ............................................................................................................................ 1-10

1.6 Regulatory Approvals and Authorizations ..................................................................................................... 1-11

1.6.1 Environmental Assessment Requirements ............................................................................................. 1-11

1.6.1.1 Provincial Environmental Assessment Requirements ......................................................................... 1-11

1.6.1.2 Federal Environmental Assessment Requirements ............................................................................. 1-12

1.6.2 Other Permits, Approvals and Authorizations ......................................................................................... 1-13

1.6.2.1 Potential Provincial Permits, Approvals and Authorizations ................................................................ 1-24

1.6.2.2 Potential Federal Permits, Approvals and Authorizations .................................................................... 1-31

1.7 Environmental Study Report Organization .................................................................................................... 1-32

1.8 References ................................................................................................................................................... 1-38

TABLES Table 1.5-1: Cumulative Economic Benefit of Construction and Development of the Phase 2 Project ....................... 1-10

Table 1.6-1: Summary of Potential Permits, Approvals, and Authorizations ............................................................... 1-13

Table 1.7-1: Environmental Study Report Organization ............................................................................................. 1-33

Table 1.7-2: Concordance Table of Ontario Class Environmental Assessment Requirements .................................. 1-34

FIGURES Figure 1.0-1: Project Location ........................................................................................................................................ 1-3

Figure 1.0-2: First Nation Communities in Wataynikaneyap .......................................................................................... 1-4


November 2018 Report No. 18102677 GAL-005-REP-V1 1-II

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November 2018 Report No. 18102677 GAL-005-REP-V1 1-III

LIST OF ACRONYMS

Acronym Definition

AANDC Aboriginal Affairs and Northern Development Canada AC Alternating Current CAR Canadian Aviation Regulation CBLUP Community Based Land Use Plans CCEG Central Corridor Energy Group CEA Agency Canadian Environmental Assessment Agency CEAA Canadian Environmental Assessment Act CEO Chief Executive Officer CBA Cost-Benefit Analysis DFO Fisheries and Oceans Canada DPA Dedicated Protected Area EA Environmental Assessment EAA Ontario Environmental Assessment Act ECA Environmental Compliance Approval END Endangered ESA Endangered Species Act ESR Environmental Study Report ESMP Environmental and Social Management Plan FMU Forest Management Units FNLP First Nation Limited Partnership FTE Full-Time Equivalent Jobs GHG Greenhouse Gas HIA Heritage Impact Assessment IFNA Independent First Nations Alliance IPSP Integrated Power System Plan ISC Indigenous Service Canada LTEP Long-Term Energy Plan MNDM Ontario Ministry of Northern Development and Mines MNRF Ontario Ministry of Natural Resources and Forestry MOE Ontario Ministry of Energy MOECC Ontario Ministry of the Environment and Climate Change MTCS Ontario Ministry of Tourism, Culture and Sport MTO Ontario Ministry of Transportation OEB Ontario Energy Board OPA Ontario Power Authority PPCR Provincial Parks and Conservation Reserves PTTW Permit To Take Water


November 2018 Report No. 18102677 GAL-005-REP-V1 1-IV

LIST OF ACRONYMS

Acronym Definition

the Project Connecting 17 Remote First Nation Communities Project ROW Right-of-Way RSFD Resource Stewardship and Facility Development SAR Species at Risk SARA Species at Risk Act SARO Species at Risk in Ontario SROI Sustainable Return on Investment THR Threatened

LIST OF UNITS

Unit Definition

ha Hectare km Kilometre kV Kilovolt m Metre MW Megawatt


November 2018 Report No. 18102677 GAL-005-REP-V1 1-1

1.0 INTRODUCTION A grouping of 22 First Nation communities, have joined together (through the First Nation Limited Partnership [FNLP] formerly known as the Central Corridor Energy Group [CCEG]), in partnership with Fortis Inc. (Fortis), to form a licenced transmission company, the Wataynikaneyap Power Limited Partnership (Wataynikaneyap) to develop, construct, operate, and own the Wataynikaneyap Transmission Project. The Wataynikaneyap Transmission Project is being developed in two phases. Phase 1, the New Transmission Line to Pickle Lake Project, is an approximately 300-kilometre (km) long, 230-kilovolt (kV) transmission line from the Dinorwic (east of Dryden) / Ignace area to Pickle Lake in northwestern Ontario. Phase 2 Connecting 17 Remote First Nation Communities includes approximately 1,500 km of 115-kV, 44-kV, and 25-kV alternating current (AC) transmission lines, and associated infrastructure for subsystems north of Pickle Lake and Red Lake that will connect 17 remote First Nation communities currently powered by diesel generation, to the provincial electrical grid. Figure 1.0-1 shows the location of the Phase 1 and 2 projects.

This Final Environmental Study Report (ESR) is for the Phase 2 Connecting 17 Remote First Nation Communities Project (the Project), which is subject to the Ontario Environmental Assessment Act (EAA) and the Canadian Environmental Assessment Act, 2012 (CEAA) (Section 67) for the portions of the Project on First Nation reserve lands.

1.1 Project Overview Connection to remote Aboriginal communities in northwestern Ontario to the provincial grid was identified in Ontario’s Achieving Balance Long-Term Energy Plan (Ministry of Energy 2013) and maintained in the recent 2017 Long-Term Energy Plan (LTEP), 20-year roadmap (Ministry of Energy 2017). The Ontario Power Authority (OPA) developed a plan for remote community connections beyond Pickle Lake (OPA 2014). This plan identified a detailed economic case for connecting remote Aboriginal communities with new transmission lines. The OPA’s study showed that over the next 40 years, grid connection could be 30% to 40% less expensive than continued use of diesel-generated electricity (OPA 2014).

The Project includes the construction, operation, maintenance and retirement1 of a 115-kV, 44-kV and 25-kV alternating current (AC) transmission system, located north of Red Lake and Pickle Lake, to connect to 17 remote First Nation communities. The communities currently proposed to be connected are:

Bearskin Lake First Nation;

Deer Lake First Nation;

Kasabonika Lake First Nation;

Keewaywin First Nation;

Kingfisher Lake First Nation;

Kitchenuhmaykoosib Inninuwug;

1 Retirement as applicable to the permanent Project components (e.g., poles).

McDowell Lake First Nation;

Muskrat Dam First Nation;

North Caribou Lake First Nation;

North Spirit Lake First Nation;

Pikangikum First Nation;

Poplar Hill First Nation;

Sachigo Lake First Nation;

Sandy Lake First Nation;

Wapekeka First Nation;

Wawakapewin First Nation; and

Wunnumin Lake First Nation.



Phase 2 includes the following main components:

Overhead 115-kV, 44-kV and 25-kV transmission lines for two subsystems, one each north of Pickle Lake and Red Lake, and associated components that will be located within a 2-kilometre (km)-wide corridor2. An approximate 40-metre (m) wide transmission line alignment right-of-way (ROW) will be cleared within the 2-km-wide corridor. The transmission line structures and associated conductors and anchors will be installed within the approximate 40-m-wide transmission line alignment ROW to the extent practical.

Substations located in or near each First Nation community, including either upgrades to the existing stations or new connections to the existing distribution facilities. The proposed substations are required as a point of transmission distribution within each First Nation community.

Structures associated with construction, including but not limited to temporary construction camps, access roads, temporary laydown areas, turn-around areas, watercourse crossings, waste management, and staging areas. Some of these structures may be temporary, such as construction camps, and some will be permanent and remain during operation and maintenance, such as access roads. These structures are discussed in detail in Section 3.0.

Note that route refinements and other Project changes made between the Draft and Final ESR are presented in Section 3.11 Project Refinements from Draft ESR.

2 A 2-km-wide study corridor has been identified for the Project components along the corridor length, including during construction

(e.g., temporary laydown areas, temporary construction camp). Within the 2-km-wide corridor, an approximately 40 m wide alignment is defined that would be cleared.

Bearskin LakeFirst Nation

Lac Des Mille LacsFirst Nation

McDowell LakeFirst Nation

North CaribouLake FirstNation

NorthSpirit LakeFirst Nation

PikangikumFirst

Nation

Poplar HillFirst Nation

Sandy LakeFirst Nation

Wunnumin LakeFirst Nation

Cat LakeFirst Nation

DeerLakeFirst Nation

KeewaywinFirst Nation

KitchenuhmaykoosibInninuwug

Lac SeulFirst Nation

Sachigo LakeFirst Nation

Slate FallsNation

KasabonikaLake FirstNation

WapekekaFirst Nation

Kingfisher LakeFirst Nation

Muskrat DamFirst Nation

Wabigoon LakeOjibway Nation

WawakapewinFirst Nation

MANITOBA

MartenFallsFirst

Nation

DrydenSioux Lookout

Ignace

Red Lake

Dinorwic

Ear Falls

Pickle Lake

Eagle LakeFirst

NationAnimbiigooZaagi'iganAnishinaabek

Anishinabe ofWauzhushkOnigum

Naongashiing(Big Island)

Aroland

BigGrassy River First

Nation

BiinjitiwaabikZaaging

Anishinaabek

EabametoongFirst

Nation

GinoogamingFirst Nation

Asubpeeschoseewagong(Grassy Narrows)

Kiashke ZaagingAnishinaabek

Long LakeNo.58 FirstNation

Mishkeegogamang FirstNation

Naicatchewenin

Naotkamegwanning(Whitefish Bay)

NeskantagaFirstNation

NibinamikFirstNation

NorthwestAngle 37

ObashkaandagaangBay

Ochiichagwe'babigo'iningFirstNation

Onigaming

Ojibways of the PicRiver First Nation

Pays Plat

Red RockFirst Nation

WabauskangFirst Nation

WebequieFirst Nation

WhitesandFirst

NationSavant Lake

Ojibway Nation of Saugeen

LEGEND

Preliminary ProposedCorridor 40-m-wide ROWCorridor Alternatives Corridor 40-m-wide ROW

Preliminary Proposed2-km-wide Corridor

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Wataynikaneyap PowerCommunity(First Nation Community)

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RailwayMajor Roads and HighwaysWinter RoadWaterbodyProvincial ParksFirst Nation Reserve Land

Utility LinesExisting ElectricalTransmission LineNatural Gas Pipeline

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REFERENCE(S)1. BASE DATA - MNRF LIO AND NTDB, OBTAINED 20163. PHASE 1 CORRIDORS - PROVIDED BY GENIVAR MAR-AUG 2012, AND PRODUCED BY GOLDER ASSOCIATES LTD. OCTOBER 24, 20132. PHASE 2 CORRIDORS - PROVIDED BY WATAYNIKANEYAP POWER L.P. AND SENES4. FIRST NATION COMMUNITIES FROM INDIGENOUS AND NORTHERN AFFAIRS CANADA (WWW.AINC-INAC.GC.CA)5. PRODUCED BY GOLDER ASSOCIATES LTD UNDER LICENCE FROM ONTARIO MINISTRY OF NATURAL RESOURCES, © QUEENS PRINTER 20166. PROJECTION: TRANSVERSE MERCATOR DATUM: NAD 83 COORDINATE SYSTEM: UTM ZONE 15

0 50 100

1:3,400,000 KILOMETERS

#### #### 1.0-1PROJECT NO. CONTROL FIGURE

CLIENTWATAYNIKANEYAP POWER L.P.PROJECTPHASE 2 CONNECTING 17 REMOTE FIRST NATION COMMUNITIES PROJECTTITLEPROJECT LOCATION

CONSULTANT

REV.

2017-09-05JMCJMCCSAE

YYYY-MM-DDDESIGNEDPREPAREDREVIEWEDAPPROVED

1544751

!H

!H

!H

PHASE 2

PHASE 1Dinorwic

Red Lake Pickle Lake

KEY MAP

Phase 1

Phase 2



1.2 Proponent The FNLP (a grouping of 22 First Nation communities) has partnered with Fortis, to form a licenced transmission company, Wataynikaneyap. The Wataynikaneyap Power Project (Phase 1 and Phase 2) has been a ground-up initiative since 2008, built on the mandates and support of the communities.

The First Nations will remain majority owners of Wataynikaneyap and become 100% owners over time. Participating communities are listed in Figure 1.0-2.

Figure 1.0-2: First Nation Communities in Wataynikaneyap



1.3 Proponent Background From the late 1990s several First Nation communities had been investigating the potential for transmission development north of Pickle Lake with the objective of connecting to the provincial grid to provide clean, affordable energy to their communities.

In October 2008, 13 Chiefs mandated a Steering Committee to investigate transmission development and ownership, the objective of which was to connect remote First Nations communities to the provincial grid. The mandate of the Steering Committee was expanded in February 2011 to include investigating reinforcing transmission reliability to Pickle Lake.

In 2011, the grouping of 13 First Nation communities, then known as CCEG, began working with Goldcorp Inc. to expand their initiative to include transmission south of Pickle Lake and to establish a First Nations-owned transmission company.

The Chiefs mandate was expanded in October 2013 to include connection of five Keewaytinook Okimakanak communities. Sandy Lake First Nation and Wabigoon Lake Ojibway Nation then joined the ownership group in February 2015 and Pikangikum First Nation and Lac Des Mille Lacs First Nation joined in August 2016 bringing the total number of First Nation communities included in the mandate to 22.

Today, FNLP (whose services branch is known as Opiikapawiin Services L.P. [Opiikapawiin Services]), is primarily responsible for administering projects and programs for Wataynikaneyap relating to community engagement, community readiness, education and training, business readiness, stakeholder engagement (including government relations), communications, and capacity building. Opiikapawiin Services also supports the FNLP in the management of its investment in Wataynikaneyap, which includes raising equity for the First Nations interest in the Wataynikaneyap Power Project.

In the summer of 2015, Wataynikaneyap formed a partnership with Fortis and RES Canada (Fortis-RES). In the spring of 2017, it was announced that Fortis increased its share in the ownership of the transmission partnership by acquiring the interest of RES Canada. As a result of this increased investment, Fortis’s equity in the Limited Partnership has increased to 49%, while the 22 First Nations communities continue to hold the remaining 51% majority interest.

The 22 First Nation communities that comprise FNLP have an interest in achieving transmission upgrades to Pickle Lake to facilitate future connection of remote communities to the north. Wataynikaneyap has been established to design, permit, construct, own, and operate the proposed Project, and the Phase 2 expansion. On July 29, 2016, the government of Ontario officially selected Wataynikaneyap as the designated transmitter to undertake the Phase 1 and 2 projects by Order In Council (1158/2016).

Fortis is an electric utility, which owns and operates Canadian Niagara Power Inc., Cornwall Street Railway Light & Power Company Ltd. and Algoma Power Inc., serving a combined 64,000 customers located in Fort Erie, Port Colborne, Cornwall, Gananoque, and the Algoma District of Northern Ontario. Fortis also owns regulated transmission assets in the Niagara and Cornwall regions, including an international interconnection between New York State and Fort Erie, Ontario. It has approximately 3,300 km of distribution and transmission lines. Fortis is the only investor owned electricity distribution utility in the province of Ontario. Fortis is a leader in the North American electric and gas utility business, with total assets of approximately $28 billion and fiscal 2014 revenue of $5.4 billion. Its regulated utilities serve more than three million customers across Canada and in the United States and the Caribbean.



Wataynikaneyap means “line that brings light” in Anishiniiniimowin, named by the Elders who provided guidance to the partners. Wataynikaneyap objectives include:

establish a First Nation led transmission company to improve transmission service to Pickle Lake and connect First Nations to the provincial electricity grid;

provide clean, reliable and accessible power for the region;

realize economic opportunities for First Nations in the construction and operation of the transmission line; and

provide a market for First Nation power generation initiatives.

The primary proponent contact for the purposes of the environmental assessment (EA) is:

Nancy O’Neill Manager, Project Environmental Assessments Wataynikaneyap Power PM Inc. Suite B, 300 Anemki Place, Fort William First Nation, Ontario P7J 1H9 Telephone: 807-577-5955 Email: [email protected]

The primary proponent contact for the purposes of engagement efforts associated with the EA is:

John Reid EA Engagement Coordinator New Economy Development Group P.O. Box 186 Metcalfe, Ontario K0A 2P0 Telephone: 613-238-5353 Email: [email protected]

The primary consultant contact for the purposes of the EA is:

Brett Thompson Project Manager Golder Associates Ltd. 6925 Century Avenue, Suite 100 Mississauga, Ontario L5N 7K2 Telephone: 905-567-4444 Email: [email protected]

The primary proponent contacts for official communication associated with the Project are:

Margaret Kenequanash CEO, Wataynikaneyap Power Suite B, 300 Anemki Place Fort William First Nation, Ontario P7J 1H9 Telephone: 807-738-1248 Email: [email protected]



1.4 Background on Electricity Sector Planning in Ontario The Ontario government established the OPA, now part of the Independent Electricity System Operator (IESO), through the Electricity Restructuring Act, 2004. This legislation made changes to the institutional arrangements of the electricity sector in Ontario and established the OPA as the province’s authority on energy planning, including the Long-Term Energy Plan (LTEP). Specifically, the OPA was given the mandate to develop integrated electricity plans that look forward several years, with the purpose of providing sustainable electricity solutions to Ontarians into the future.

The OPA prepared a 20-year energy plan in 2007 (formerly known as the Integrated Power System Plan or IPSP). Initiatives from the 2007 IPSP, together with subsequent public policy initiatives (primarily the Green Energy and Green Economy Act, 2009), are transforming how Ontario produces and uses electricity. Implementation happens through generation procurement and conservation measures, and by the development of transmission. The IESO is directly responsible for establishing the need for new transmission facilities.

There has been, and continues to be, substantial interest in connecting renewable generation to both distribution and transmission systems as a consequence of the Green Energy and Green Economy Act, 2009. However, the ability of existing or approved transmission facilities in Ontario to accommodate more generation is limited. Given this, the Ontario Energy Board (OEB) issued a policy document entitled Framework for Transmission Project Development Plans on August 26, 2010, which sets out framework for new transmission investment in Ontario.

An LTEP was published by the Ministry of Energy in 2010 to serve as an update to the 2007 IPSP, given developments in technology, demographic and economic trends and growth of the renewable energy sector. The Ministry of Energy published an updated LTEP in 2013 and the connection of remote First Nation communities to clean electricity through transmission lines was identified. The connection of remote First Nation communities to the provincial grid was maintained in the current 2017 update of the LTEP.

As well, the OPA released a Draft Technical Report and Business Case for the Connection of Remote First Nation Communities in Northwest Ontario in 2014 (2014 Remote Connections Plan; OPA 2014), updating an earlier release in 2012. The report presents the economic case for connecting 21 of the 25 remote First Nation communities in Northwest Ontario with new transmission lines; including 16 of the remote First Nations identified for connection as part of Phase 2 of the Wataynikaneyap Transmission Project3.

The business case presented by the 2014 draft Remote Community Connection Plan informed a July 2016, Order in Council (1157/2016) from the provincial government confirming the need to connect the 21 remote communities and defining the Phase 1 and 2 projects as priority projects. A concurrent Order in Council (1158/2016) designated Wataynikaneyap Power the designated transmitter to undertake the Phase 1 and 2 projects. Related to this designation, IESO developed a document to provide to the Ontario Energy Board its recommended scope for the Phase 1 project and its supported scope for the Phase 2 Project. The supported scope is as follows:

“Radial lines to the communities from supply points at Red Lake and Pickle Lake to connect remote First Nation communities;

3 Phase 2 of the Wataynikaneyap Transmission Project includes consideration of potential future connection to McDowell Lake First Nation

in addition to the 10 communities north of Pickle Lake and 5 communities north of Red Lake identified for connection in the 2014 Remote Connections Plan. McDowell Lake First Nation is not currently serviced with a local electricity supply system.



Facilitate the arrangement of backup electricity resources for connecting communities where: such facilities do not already exist; other arrangements have not been made or the community has not specifically requested an exemption. The backup supply resources, at a minimum, will maintain supply to essential loads within critical buildings (nursing station, airport, water treatment plant, and at least one of school/band office/ community centre) in each community, consistent with each communities Emergency Preparedness Plan.

In accordance with the business case for the connection, and, as confirmed by the making of an Order in Council dated July 20, 2016 declaring the Remote Connections Project [Phase 2] to be a priority transmission project under section 96.1 of the Ontario Energy Board Act, 1998, the Remote Connections Project [Phase 2], should be placed in-service as soon as the transmitter is reasonably able” (IESO 2016).

1.5 Rationale and Purpose of the Project 1.5.1 Rationale for the Project Ontario’s remote First Nation communities currently rely on diesel generation for their electricity supply; however, diesel fuel is expensive, difficult to transport, and poses environmental and health risks. In addition, a lack of affordable and reliable power contributes to poor living conditions and constrained community growth (e.g., housing and community infrastructure). As noted, the OPA developed the Remote Connections Plan for remote community connections north of Pickle Lake and Red Lake that includes a detailed economic case for connecting these remote First Nation communities with new transmission lines. The OPA’s study showed that over the next 40 years, grid connection could be 30% to 40% less expensive than continued use of diesel-generated electricity (OPA 2014).

The Ontario Waterpower Association has indicated that there are more than a dozen active waterpower development applications led by First Nation communities in Ontario’s Far North totalling in excess of 350 Megawatts (MW). According to the OPA, approximately 100 MW of this is located in the vicinity of the remote communities identified to be connected to the provincial grid. Development of these projects could be considered once transmission is available (OPA 2014).

Studies prepared by Lumos Energy (Lumos Energy 2013) and PricewaterhouseCoopers (PwC 2015) conclude that the Phase 1 and 2 projects will result in positive First Nation, environmental, social, and regional economic development. The PwC report concludes that Wataynikaneyap’s projects are expected to generate substantial economic benefits for local Aboriginal communities, Northwestern Ontario, the rest of Ontario, and the rest of Canada more broadly. Overall, the projects are expected to generate one-time economic effects from the construction and development of the projects, ongoing effects from increased economic growth, and the substantial savings associated with the avoidance of Phase 2 community diesel costs.

PwC (2015) estimates that the current cost of diesel generation for the 17 remote First Nations identified in Phase 2 of the Wataynikaneyap Transmission Project is $53 million per year and growing. Building and operating transmission to these communities is expected to save $1 billion compared to continued use of diesel generation. In addition, the PwC study concludes that the Phase 2 project is estimated to create more than 700 jobs during construction and nearly $900 million in social value, including a substantial reduction to greenhouse gas (GHG) emissions.



Some of the key benefits identified in the studies are:

Environmental Benefits

Fewer Fuel Spills and Contamination: Reduced risks and lower number/volume of transport, storage and consumption- based oil spills and contamination due to substantive reduction in the use of diesel fuel for electricity and space/water heating.

Reduced Greenhouse Gas Emissions: Major reduction in GHG emissions due to replacement of diesel fuel requirements with grid-based electricity. The estimate is 6.6 million tonnes CO2 equivalent4 reduction in GHG emissions at remote off-grid Aboriginal communities over a 40-year period.

Enhanced Environmental Resilience: Enhanced environmental reliance in Northern Ontario due to:

reduced reliance on ice road, transport infrastructure, and fuel storage;

elimination of emergency fuel deliveries by air related to poor ice road conditions (climate change); and

additional substantial reduction in GHG emissions from diesel generation.

First Nation Social and Community Development Benefits

Reduced Health Risk: Diesel fuel increases risks to human health. The transport and storage of fuel is an occupational health risk. Diesel-based power generation and furnace emissions from fuel oil, lead to poor indoor air quality, which can exacerbate respiratory, heart and other ailments.

Community Quality of Life: The effect of replacing unreliable, poor quality diesel electricity with cleaner, cheaper and much more reliable grid power has a range of positive benefits on community quality of life (e.g., noise).

Community Infrastructure: The positive effects of continued operations, lower maintenance costs and longer infrastructure lifespans as a consequence of introducing grid power to replace local diesel electricity.

Residential Development: Allows for residential development to accommodate a growing population.

First Nations and Regional Economic Development Benefits

Employment and Jobs: Direct construction, operating and management jobs created through the Project.

Skills Development: Skills development, job qualifications and experience obtained by First Nation peoples through development, planning, construction, operation and ownership/management of the Project.

Economic Development (Energy and Business): Transmission infrastructure investment leads to three types of developments beyond construction types of economic development:

the opportunity to develop clean energy projects to feed into the system;

community-based economic development based on the availability of clean, reliable grid power; and

commercially-driven economic development by small businesses that use grid power for their operations.

4 CO2 equivalent – represents the amount of CO2 that would have the equivalent global warming potential as the selected greenhouse gas.



Ontario and Canada Economic Development Benefits

Infrastructure and Natural Resource Competitiveness: The benefits associated with having grid power infrastructure to support natural resources development and competitiveness in Northwestern Ontario.

Tax Revenue: A projection of provincial and federal tax revenue generated through the Wataynikaneyap Project, including income (personal, corporate and payroll) and consumption (sales and excise) taxes.

Infrastructure Investment Multipliers: A projection of the additional economic benefits arising from the Project through “multiplier effects” from investment and job creation.

Further justification of proceeding with the Phase 2 project from a socio-economic benefit includes a Sustainable Return on Investment5 of approximately $2 billion (CAD), which includes:

financial return on investment – $1.071 billion;

present value of avoided greenhouse gas emissions – $472 million;

present value of reduced adverse health effects – $304 million;

present value of damage to vegetation – $35 million; and

present value of avoided diesel spills – $21 million (PwC 2015).

Table 1.5-1 below summarizes the cumulative benefits of the construction and development of Phase 2.

Table 1.5-1: Cumulative Economic Benefit of Construction and Development of the Phase 2 Project

Gross Domestic

Product ($M)

Wages and Salaries

($M)

Employment (FTEs)

Government Revenues

($M) Canada $1,189.7 $572.6 769.4 $273.8 Ontario $957.3 $538.5 685.3 $220.3 Northwestern Ontario $361.7 $195.9 261.4 $83.2

FTE = Full-time equivalent jobs. FTE is defined as total hours worked divided by average annual hours worked in full-time jobs. This can also be described as full-time-equivalent work-years. It is a less precise alternative to expressing labour input in terms of total hours worked. M = Million Canadian dollars.

1.5.2 Purpose of the Project The purpose of the Project is to provide grid connection to 17 remote First Nation communities, thereby meeting one of the priorities identified in Ontario’s LTEP and the requirements of Wataynikaneyap’s transmission licence under the Order-in-Council and Ministerial Directive to develop and seek approval for this priority project.

The Project, as described in Section 3.0 (Project Description), is the focus of the EA under the Environmental Assessment Act.

5 Sustainable Return on Investment (SROI) – an enhanced form of Cost-Benefit Analysis (CBA). It provides a triple-bottom line view of a

project’s economic results, incorporating state-of-the-art risk analysis. SROI monetizes (converts to monetary terms) all relevant social and environmental effects related to a given project and provides the equivalent of traditional financial metrics.



1.6 Regulatory Approvals and Authorizations The Project requires provincial and federal regulatory approvals and authorizations from a number of government ministries and agencies. Consultation on the various provincial approvals and authorizations detailed in the following sub-sections will be coordinated by the Ontario Ministry of Energy, with procedural aspects of the duty to consult to be carried about by Wataynikaneyap. Communications with respect to consultation on any of the approvals or authorizations listed in this section should be directed to the contacts listed on page 1-6 of this document. For clarity, Wataynikaneyap has been advised by Ontario that unless otherwise noted in respect of a specific authorization, government ministries and agencies are relying upon the consultation process being carried out by the proponent on behalf of the Crown and will not be consulting with communities outside of this process.

1.6.1 Environmental Assessment Requirements There are a number of environmental assessment regulatory requirements applicable to certain aspects of the Project. Wataynikaneyap is implementing a comprehensive engagement plan and effects assessment method and process in respect of these requirements. This single Environmental Study Report is targeted to satisfy the requirements of both provincial and federal regulatory ministries and agencies. The various regulatory requirements that the Project is subject to are described in the following sub-sections.

1.6.1.1 Provincial Environmental Assessment Requirements Portions of the Project are subject to the Ontario Environmental Assessment Act (EAA) under the following provincial environmental assessment processes:

Class Environmental Assessment for Minor Transmission Facilities Portions of the transmission line are deemed a Category B project in accordance with the Guide to Environmental Assessment Requirements for Electricity Projects (the Guide) (MOE 2011) and Ontario Regulation (O. Reg.) 116/01 Electricity Projects Regulation (Government of Ontario 1990a) due to the voltage (115-kV) and length of the proposed transmission line (>2 km). As per Section A.5.2, Transmission Not Associated with Generation of the Guide, the Class Environmental Assessment for Minor Transmission Facilities (Ontario Hydro6 1992; Class EA for Minor Transmission Facilities), would apply to these portions of the transmission line and associated infrastructure.

A Class Environmental Assessment for MNR Resource Stewardship and Facility Development The Project will also be subject to the Class Environmental Assessment for MNR Resource Stewardship and Facility Development Projects (Ministry of Natural Resources [MNR]7 2003; Class EA for RSFD) Resource Stewardship and Facility Development (MNR 2003) (Class EA for RSFD) for the less than 115-kV line sections that require a disposition of resources. Separate portions of the 44-kV line have been identified as Category B and Category C projects by the MNRF (Appendix 2.4A). Wataynikaneyap is conservatively applying a Category C project process to all less than 115-kV line portions and associated infrastructure that area covered under this Class EA.

6 At the time of publication of the Class EA for Minor Transmission Facilities, Hydro One was known as Ontario Hydro prior to its reorganization

into five companies in 1999. The company responsible for hydroelectricity became Hydro One. 7 The Ministry of Natural Resources and Forestry (MNRF) was formerly known as the Ministry of Natural Resources (MNR) prior to its name

change in 2014.



A Class Environmental Assessment for Provincial Parks and Conservation Reserves The Class Environmental Assessment for Provincial Parks and Conservation Reserves (Ministry of Natural Resources [MNR]2 2005; Class EA for PPCR) applies to the less than 115-kV portions of the line that cross Provincial Parks and Dedicated Protected Area’s (DPA) regulated under the Provincial Parks and Conservation Reserves Act. These portions of line have been classified as a Category C project by the MNRF. The 115-kV transmission line portions and access roads (Pipestone River Provincial Park and BDE DPA) that cross provincial parks and protected areas (including regulated DPAs) are subject to the Hydro One Class EA for Minor Transmission Facilities (MNR 2005).

The Project also includes 25-kV distribution lines. Although an assessment is not required under the EAA, the distribution lines have been included in the EA to provide a fulsome assessment of the Project; particularly for the footprint-based criteria assessments (e.g., vegetation and wetlands and wildlife criteria).

1.6.1.2 Federal Environmental Assessment Requirements According to the Regulations Designating Physical Activities under the Canadian Environmental Assessment Act (CEAA 2012), a federal EA is to be undertaken for transmission projects that:

include construction, operation, decommissioning and abandonment of a transmission line in a wildlife area (as defined under the Wildlife Area Regulations) or migratory bird sanctuary (as designated under the Migratory Bird Sanctuary Regulations) (Section 1); or

include construction, operation, decommissioning and abandonment of a transmission line with a voltage of 345 kV or more that is 75 km or more in length on a new ROW (Section 5).

The Project is not captured by the Regulations Designating Physical Activities as the voltage of the transmission line is below 345 kV; and the Project is not located within a wildlife area, as defined under the Wildlife Area Regulations, or migratory bird sanctuary, as designated under the Migratory Bird Sanctuary Regulations.

Portions of the Project are located on First Nation Reserve lands and are therefore subject to Section 67 of the Canadian Environmental Assessment Act, 2012, which states:

“An authority must not carry out a project on federal lands, or exercise any power or perform any duty or function conferred on it under any Act of Parliament other than this Act that would permit a project to be carried out, in whole or in part, on federal lands, unless

1. the authority determines that the carrying out of the project is not likely to cause significant adverse environmental effects; or

2. the authority determines that the carrying out of the project is likely to cause significant adverse environmental effects and the Governor in Council decides that those effects are justified in the circumstances under subsection 69(3).”



1.6.2 Other Permits, Approvals and Authorizations Other federal, provincial and municipal permits, approvals or authorizations may be necessary. In many cases, these permits, approvals or authorizations cannot be issued until after Statement(s) of Completion are issued for the Project EA under the applicable Class EAs listed in Section 1.6.1.1. A summary of the permits, approvals or authorizations that may be required before construction of the Project is presented in Table 1.6-1. These permits, approvals and authorizations are discussed in more detail in the sections below. The required permits, approvals or authorizations will be confirmed as Project planning and design progress.

Table 1.6-1: Summary of Potential Permits, Approvals, and Authorizations

Agency Act or Regulation Approval/Permit/Authorization Applicability to the Project

Provincial Ministry of the Environment and Climate Change (MOECC)

Ontario Water Resources Act (1990) – Water Taking and Transfer Regulation - O. Reg. 387/04

Permit to Take Water (PTTW)

Registered on the Environmental Activity and Sector Registry (EASR)

Required depending on Project water taking and dewatering per activity.

Ontario Water Resources Act – Section 53 (Sewage Works)

Environmental Compliance Approval (ECA)

An ECA may be required for the wastewater treatment systems (leaching beds) at the temporary camps.

Environmental Protection Act (1990)

ECA An ECA may be required for the storage, transportation and disposal of domestic and industrial wastes, including sewage, from the temporary construction camps.


ECA Approval for noise generation in relation to the substations.


O. Reg. 347

Generator Registration Number Required in the event hazardous and liquid industrial wastes are generated during Project construction.





Provincial Ministry of Natural Resources and Forestry (MNRF)

Endangered Species Act (2007)

Letter of Advice / Permit Required if Project activities during construction and operation cause a prescribed impact to a species designated as endangered or threatened on the Species At Risk in Ontario [SARO] list or its protected habitat.

Fish and Wildlife Conservation Act (1997)

Fish Scientific Collectors Permit

Wildlife Scientific Collection Permit

Allows for the taking and transferring of fish or wildlife during construction.

Fish and Wildlife Conservation Act (1997)

Authorization Required in the event Project construction/operation is anticipated to destroy the nests or eggs of birds, a beaver dam, or the den of a black bear or some furbearing mammals, or interfere with a black bear in its den.

Provincial Parks and Conservation Reserves Act, 2006

Subsection 2(2) of Ontario Regulations 347/07 and 319/07

Research Authorization Procedure for Provincial Parks and Conservation Reserves (Procedure PAM 13.01.01)

Authorization to Conduct Research

Allows proponent to conduct research in Ontario Protected Areas.





Crown Forest Sustainability Act (1994)

Sale and Purchase Agreement Required to harvest timber on Crown land outside of the Area of the Undertaking which is the area of coverage of MNRF’s Class Environmental Assessment Approval for Forest Management on Crown Lands in Ontario.(MNRF-75)


Forest Fires Prevention Act (1990)

Burn Permit Required to burn materials from forest clearing.

Public Lands Act (1990)

O. Reg. 239/13: Activities on Public Lands and Shore Lands – Work Permits and Exemptions

Land Use Permit

Work Permit A land use permit gives

the right to conduct a specified activity on the land for up to 10 years, but does not give ownership of the land or interest in the land. The land use permit and work permits may be required to authorize construction stage activities including geotechnical investigations, construction/upgrade of access roads, culverts/bridges, temporary construction camps and transmission lines.





Public Lands Act Crown Easement Easement required to locate transmission line and access roads (to and within the Project site) in Crown land8. Co-location or Multiple Use of Utility Corridors are subject to the consent of the existing occupant of a utility Corridor on Crown land. Applicants proposing to install new lines, cables, pipe etc. will be encouraged to co-locate improvements within an existing corridor.

8 It is noted that the First Nations entered into a treaty relationship with the Crown within the spirit and intent of Indigenous Peoples understanding based on respect, friendship and mutuality. It is always understood that there would be sharing of lands and resources. Any references to Crown Land are without prejudice to the positions of First Nations in relation to Treaty and Aboriginal rights.






Crown Forest Sustainability Act (1994)

Overlapping Agreement Required for work permit operations not approved in forest management plans.

Far North Act (2010) Certain projects must demonstrate conformity with applicable community-based land use plans, and/or receive an exception from the Act by Minister’s order, or an exemption from the Act by order of the Lieutenant Governor in Council.9

The Far North Act (2010)10 applies, to those portions of the Project located in Far North of Ontario. Approaches will vary depending on the type of development, and the stage of completion of community-based land use plans. Engagement and consultation may be required.

Aggregate Resources Act (1990)

Aggregate Permit Required to extract aggregate on all Crown Land, as well as on private land in areas of the province designated (identified) in the regulations.

9 The FNA is included in the ‘Permits/Approvals/Authorizations’ Tables for convenience and on a without prejudice basis. The FNA sets up a

system wherein certain projects must demonstrate conformity with applicable community-based land use plans according to a process set out in those plans, and/or receive an exception from the Act by Minister’s order, or an exemption from the Act by order of the Lieutenant Governor in Council.

10 Please note that a number of the First Nation member communities that comprise First Nations Limited Partnership (FNLP) do not recognize the Far North Act legislation.






Provincial Parks and Conservation Reserves Act, section 14 and section 22

Work Permit

Provincial Park/Dedicated Protected Area Management Plan/Statement amendment

The Project crosses provincial parks. Within the protected areas where utility corridors are permitted uses in the Provincial Park/Dedicated Protected Area Management Plans/Statements, a work permit may be required to authorize required clearing, construction and other related activities. Within the protected areas where utility corridors are not permitted uses, amendments to the Provincial Park/Dedicated Protected Area Management Plans/Statements may also be required before work can proceed. This amendment enables the crossing of provincial parks/DPAs by amending management direction to permit the crossing.

Ontario Ministry of Transportation (MTO)

Public Transportation and Highway Improvement Act

Land Use and Building Permit Land Use and Building Permit for construction within MTO’s permit control area.

Entrance Permit Entrance Permit for proposed entrances, including temporary entrances to construct or service a proposed development, onto provincial highways.





Provincial Ontario Ministry of Transportation (MTO)

Public Transportation and Highway Improvement Act

Encroachment Permit Encroachment Permit to place, alter or erect any power line, pole line, or other transmission line within 400 m of any limit of a controlled access highway.

Sign Permit Sign Permit for all signage within 400 m of any limit of a provincial highway.

Ontario Ministry of Labour

Occupational Health and Safety Act

Notice of Project File a notice of Project under Section 23(2) of the Occupational Health and Safety Act (1990) prior to construction.





Provincial Ontario Ministry of Tourism, Culture and Sport (MTCS)

Ontario Heritage Act

Ontario Regulation 9/06 Criteria for Determining Cultural Heritage Value or Interest (O. Reg. 9/06)

Compliance Letter to licensee under Ontario Heritage Act

Letter of Satisfaction for heritage report under S.23 of O.Reg. 359/09

Archaeological assessment, to be conducted as part of the EA under the Ontario Heritage Act (1990) and submitted to the Ontario Public Register of Archeological Reports. An Archaeology License issued under the Ontario Heritage Act is required to conduct archaeological assessments and to alter archaeological sites in Ontario.

Built heritage and cultural heritage landscape screening and, where required, heritage impact assessments (HIAs) submitted to the MTCS for review under Ontario’s Environmental Assessment Act and in compliance with the Standards and Guidelines for Conservation of Provincial Heritage Properties.

Ontario Energy Board (OEB)

Ontario Energy Board Act, 1998

Leave to Construct The Project requires leave to construct approval under section 92 of the Ontario Energy Board Act, 1998. This application provides the OEB with an opportunity to review the Project’s technical and other components.

Ministry of Northern Development and Mines

Mining Act Withdrawal request Withdrawal of lands from prospecting and withdrawal of staking rights under the Mining Act.





Provincial Technical Standards and Safety Authority

Technical Standards and Safety Act, 2000

License Licenses for the transport, storage and handling of fuels under the Technical Standards and Safety Act, 2000.

Federal Environment Canada and Canadian Wildlife Service (CWS)

Species at Risk Act (SARA)

Permit Required if Project activities during construction and operations cause a prescribed impact to species listed under Schedule 1 of the Species at Risk Act (SARA) or its prescribed habitat, and which contravene the Act's general or critical habitat prohibitions (includes intrusive methods for sampling).

Permit under Section 73 of the Species at Risk Act (SARA) if Project activities during construction and operations affect terrestrial species listed under Schedule 1 of the SARA or its habitat, and which contravene the Act's general or critical habitat prohibitions (includes intrusive methods for sampling).





Federal Department of Fisheries and Oceans Canada (DFO)

Fisheries Act Authorization / Letter of Advice Authorization may be required for construction activities if the activity is determined to cause serious harm to fish. This applies to work being conducted in or near waterbodies that support fish that are part of a commercial, recreational, or Aboriginal (CRA) fishery.

Species at Risk Act (SARA)

Permit Required if Project activities during construction and/or operations cause a prescribed impact to fish species listed under Schedule 1 of SARA, or its prescribed habitat, as extirpated, endangered, or threatened and which contravene the Act's general or critical habitat prohibitions (includes intrusive methods for sampling, e.g., electrofishing).

Transport Canada Navigation Protection

Act (NPA) Notice and/or approval Required for work on

navigable waters listed on the schedule to the Navigation Protection Act.

Canadian Aviation Regulations (CARs) Standard 621 – Obstruction Marking and Lighting

Approval In the event the transmission line could interfere with air navigation, the Project will require specific lighting and marking requirement to be determined by Transport Canada.

Aeronautical Assessment Form for Obstruction and Lighting.





Federal Indigenous Services Canada (ISC)

Section 28(2) of the Indian Act

Authorization Indigenous Services Canada (ISC) must authorize the occupation or use of First Nations Reserve lands by means of Section 28(2) of the Indian Act whereby:

“The Minister may by permit in writing authorize any person for a period not exceeding one year, or with the consent of the council of the band for any longer period, to occupy or use a reserve or to reside or otherwise exercise rights on a reserve.”

Guidelines for Unconsolidated Non-Metallic Substances on Reserves

Permit Required if sand or gravel is sourced from First Nation lands.

Natural Resources Canada

Explosives Act Permit Permit under the Explosives Act for the use, storage or transportation of explosives.

Other Hydro One Networks Inc. Transmission System

Code Agreement Required to cross existing

Hydro One transmission and distribution lines.

Mining Claim Holders n/a Consent Consent from existing

claim holders.

Private land n/a Consent Easement from private land owners.

Other Utility Companies n/a Consent Required if crossing other

utilities (i.e., existing pipelines, fiber optics).





Other Local Municipality n/a Local permits Building Permit per the

Building Code Act, 1992.

Permit to Injure or Remove Trees (woodlands/woodlots), as applicable based on municipal by-laws.

Conformance with local land use policy and zoning (e.g., road use agreements).

Permits for open-air burning and fires, as applicable.

Official Plan amendments in accordance with the Planning Act. Site Plan Control

Approval in accordance with the Planning Act.

ECA = Environmental Compliance Approval; kV = kilovolt; m= metre; MTO = Ontario Ministry of Transportation; n/a = not applicable; O.Reg = Government of Ontario Regulation; ROW = right-of-way.

1.6.2.1 Potential Provincial Permits, Approvals and Authorizations Permit to Take Water A Permit to Take Water (PTTW) may be required for the Project if any of the following conditions are triggered:

Construction dewatering where the surface water and groundwater takings are between 50,000 L/day and 400,000 L/day. If the eligibility and exemption conditions from O. Reg. 64/16 are met and registration on the Environmental Activity and Sector Registry (EASR) is completed a PTTW is not required; however, water takings between 50,000 L/day and 400,000 L/day require registration on EASR and a discharge plan from a qualified professional.

Surface water takings of more than 50,000 L/day for the purposes of road construction (e.g., dust suppression, compaction of earth, seeding). If the proponent meets the eligibility and exemption conditions from O. Reg. 64/16 a PTTW is not required; however, surface water takings of more than 50,000 L/day for the purposes of road construction require registration on EASR and a discharge plan from a qualified professional. Water taking of less than 50,000 L/day is permitted without a PTTW.



Surface water taking specific to stormwater runoff alone, of any amount for the purposes of construction dewatering. If the proponent meets the eligibility and exemption conditions from O.Reg. 64/16 a PTTW is not required; however, this type of water taking requires a water taking and discharge plan from a qualified professional, but registration on EASR is not needed.

Project activities that may trigger the need for a PTTW are listed below:

Concrete production (Section 3.4.4) – Construction water sources, methods of accessing water and volume of water for concrete production is not known at this stage of Project planning, but will be conducted in accordance with applicable regulatory requirements.

If required, Wataynikaneyap will apply for a PTTW and after sufficient design details are confirmed for completing the application.

Environmental Compliance Approval An Environmental Compliance Approval (ECA) may be required for the Project if any of the following conditions are triggered:

Waste water is treated on site (leaching beds).

Waste water is discharged to a sewage treatment system.

Noise generation by stationary equipment that exceeds sound level limits under NPC-300 Noise Guideline.

The Project activities that may trigger the need for an ECA are listed below:

Domestic waste (Section 3.4.4) - Domestic effluent will be taken by tanker truck for disposal to an existing wastewater treatment facility authorized to accept this type of waste.

Wastewater treatment (Section 3.4.4) - Grey water will be discharged to leaching beds or treatment systems constructed at the temporary construction camps.

Audible noise (Section 3.5.2.3) – Predicted noise emissions from equipment at the substations will meet the MOECC noise level limit of 40 dBA at all identified receptors.

Generator Registration Number A generator registration number will be required for wastes produced by the Project (e.g., ashes, garbage, domestic waste, industrial waste, commercial waste, construction debris and residues from industrial and commercial activities).

Project activities that may trigger the need for a generator registration number include:

Temporary construction camps (Section 3.4.4) – Organic solid waste disposal at the camps will be in compliance with applicable guidelines and regulatory requirements. Organic solid waste may be temporarily stored in bear-proof containers before being transported to an approved waste disposal site.



Equipment (Section 3.5.2.2) – Waste oil will be collected and stored in drums (clearly marked as waste oil) inside a dyked area and will be regularly shipped for disposal. Waste oils, lubricants and other used oil will be disposed of at authorized disposal sites.

Endangered Species Act An Endangered Species Act (ESA) permit may be required for construction, operation, and maintenance activities that cause a prescribed impact on species at risk (species designated as endangered and threatened on the Species At Risk in Ontario [SARO] list) or their protected habitats.

Different types of permits may be issued under the Endangered Species Act, 2007 including:

an Overall Benefit Permit under clause 17(2)(c) of the Endangered Species Act;

a Social or Economic Benefit to Ontario Permit may be required. To be considered for it, the Project must meet the following requirements:

the activity must result in a significant social or economic benefit to Ontario;

the MNRF must engage with an expert on the possible effects of the activity on the species. The expert must submit a written report to the Minister of Natural Resources and Forestry, including his or her opinion on whether the activity will jeopardize the survival or recovery of the species in Ontario; and

the Minister must be of the opinion that:

− the activity will not jeopardize the survival or recovery of the species in Ontario;

− reasonable alternatives have been considered, including those that wouldn’t adversely affect the species, and the best alternative has been adopted; and

− reasonable steps to minimize adverse effects on individual members of the species are required by conditions of the permit.

a Health or Safety Permit. To be considered for it, the Project must be taking actions to protect human health or safety, but where the risk is not imminent; or

an Aboriginal Permit. An Aboriginal Permit can be issued to a band (as defined under the federal Indian Act), a Tribal Council, or an organization that represents a territorially based Aboriginal community.

Discussions are ongoing between Wataynikaneyap and the MNRF on the ESA process.

Scientific Collection Permits Collection permits may be required if fish or wildlife are encountered and need to be relocated during construction. This could occur at waterbody crossings where isolation techniques are used and fish need to be moved or where wildlife are encountered in construction areas and need to be moved.

A fish scientific collection permit and a wildlife scientific collection permit, if required, will be obtained by qualified professionals in advance of the construction stage.



Fish and Wildlife Conservation Act Authorization An authorization under the Fish and Wildlife Conservation Act may be required if the Project will destroy the nests or eggs of birds, a beaver dam, or the den of a black bear or some furbearing mammals, or interfere with a black bear in its den.

Wataynikaneyap will engage with the MNRF on any requirements for license or permit to authorize Project activities for anticipated effects to nests, dams, or dens along the preferred corridor.

Authorization to Conduct Research An authorization to conduct research will be required for any scientific studies or surveys in provincial parks (including regulated DPAs) and conservation reserves. The Project activities that may trigger the requirement for this authorization include:

Collection of fish and fish habitat data at planned watercourse crossings in Beekahncheekahmeeng Deebahncheekaywheehn Eanahohnahnuhn (BDE) DPA, Otoskwin-Attawapiskat and Pipestone River Provincial Parks.

Collection of wildlife or wildlife habitat data in BDE DPA, Otoskwin-Attawapiskat and Pipestone River Provincial Parks.

In-stream monitoring at watercourse crossings in BDE DPA, Otoskwin-Attawapiskat and Pipestone River Provincial Parks.

Archeological assessments in BDE DPA, Otoskwin-Attawapiskat and Pipestone River Provincial Parks.

Authorization under the Provincial Parks and Conservation Reserves Act to conduct research will be obtained by qualified professionals in advance of the construction stage.

Forest Resource Licence A cutting permit may be required for clearing activities on Crown lands under the Crown Forest Sustainability Act.

Burn Permit A burn permit under the Forest Fires Prevention Act may be required if any materials will be burned as part of the Project. No waste is to be burnt and only clean wood waste as defined by Ontario Regulation 347 is to be burnt.

Land Use Permit A Land Use Permit with a letter of authorization under the Public Lands Act will be required for Wataynikaneyap to install towers and access facilities on Crown Land. A land use permit will also be required for disposition of land required for the project construction including yet not limited to temporary construction camps and laydown areas.



Public Lands Act Work Permit A work permit under the Public Lands Act is required if:

constructing or placing a building on public land;

constructing a trail, water crossing or road on public land;

constructing or placing a structure or combination of structures that is in physical contact with more than 15 square metres of shore lands

When a work permit is issued for a road, a memorandum of understanding will need to be established along with the work permit as per s per PL 10.02.02 Assigning Road Responsibility - Non-Forestry Roads.

There are waterbody crossings on Crown land that will require work permits (Appendix 5.1A). The final list of these crossings will be confirmed, and a work permit will be applied for prior to construction.

When a work permit is issued for a bridge, a memorandum of understanding will need to be established along with the work permit as per PL 10.04.00 Work Permits - Roads Trails and Water Crossings and the Bridge Management Guidelines.

Crown Easement A Crown land easement will be required to allow the placement of the transmission line. The land use permit will become an easement after construction or survey of the line is complete. A memorandum of understanding will be established or an existing plan amended between the utility company and MNRF as per PL 4.10.03 Utility Corridors on Public Land, section 4.1 Co-location or Multiple Use of Utility Corridors are subject to the consent of the existing occupant of a utility Corridor on Crown land. Applicants proposing to install new lines, cables, pipe are encouraged to co-locate improvements within an existing corridor.

The Project includes alignment with existing utility corridors including:

Goldcorp Musselwhite Mine M1M transmission line between Central Patricia and Musselwhite Mine;

Goldcorp Red Lake Mine G1L transmission line between the Balmer TS and the Hydro One E2R transmission line; and

Bell Alliant fibre optic line corridor at various locations.

Section 3.3 provides further detail on specific alignment to existing linear features, including utilities.

Overlapping Agreement Overlapping agreements under the Crown Forest Sustainability Act will be required for where the Project crosses through the Trout Lake Forest, Red Lake Forest and Whitefeather Forest management units (FMU) and Project activities will result in tree clearing.

Far North Act In the Far North of Ontario, certain projects must demonstrate conformity with applicable community-based land use plans, and/or receive an exception from the Far North Act, 2010 by Minister’s order, or an exemption from the Act by order of the Lieutenant Governor in Council. Approaches will vary depending on the type of



development, and the stage of completion of community-based land use plans (CBLUP). Engagement and consultation may be required.

Portions of the Project are located within:

The Pikangikum First Nation land use planning area, for which there is an approved CBLUP (“Keeping the Land – Cheekahnahwaydahmungk Keetahkeemeenaan” Pikangikum First Nation and MNR 2006). The Project is consistent with the land use direction in the approved CBLUP, as verified by the Whitefeather Forest Community Resource Management Authority – the body that has been given decision-making authority by Chief and Council over matters related to the CBLUP.

The Cat Lake First Nation and Slate Falls Nation’s planning area, for which there is an approved CBLUP ('Nigann Bimaadiziwin') (Cat Lake First Nation, Slate Falls Nation, MNRF 2011). The Project is consistent with the land use direction in the approved CBLUP, as verified by the Cat Lake Slate Falls Land Use Planning Implementation Team, and the Chiefs and Councils of both communities via Band Council Resolutions.

The Taashikaywin Area of Interest for Planning (Taashikaywin AIP), which was identified by Eabametoong and Mishkeegogamang First Nations, and is documented in the Terms of Reference Taashikaywin 2013 (Mishkeegogamang First Nation, Eabametoong First Nation, MNRF 2013). These communities have an approved terms of reference that sets out overarching goals of planning and details about the process. It also delineates the preliminary AIP that will be confirmed at the draft plan stage of the planning process. There is currently no draft or final CBLUP.

The Deer Lake First Nation AIP as identified in their approved ToR (Deer Lake First Nation and MNR 2013). Deer Lake First Nation has a Draft CBLUP and Wataynikaneyap has worked with the community and land use planning team members to make sure the Project is consistent with land use direction contained in the Draft CBLUP.

Wawakapewin First Nation AIP as identified in their approved ToR (Wawakapewin First Nation and MNR 2014). Wawakapewin First Nation has an approved ToR, but no draft or final CBLUP. Wataynikaneyap has worked with the community and land use planning team members to make sure the Project is consistent with the most current land use direction being considered by the community.

McDowell Lake First Nation AIP as identified in their approved ToR (McDowell Lake First Nation and MNR 2016). McDowell Lake First Nation has an approved ToR, but no draft or final CBLUP. Wataynikaneyap has worked with the community and land use planning team members to make sure the Project is consistent with the most current land use direction being considered by the community.

North Spirit Lake First Nation AIP as identified in their approved ToR (Tookata, Thompson and Rae 2018). North Spirit Lake First Nation has an approved ToR, but no draft or final CBLUP. Wataynikaneyap has worked with the community and land use planning team members to make sure the Project is consistent with the most current land use direction being considered by the community.

Other communities in the Project area have not initiated land use planning under the Far North Act.



Aggregate Permit An aggregate permit may be required for the Project if aggregate will be extracted on Crown land under the Aggregate Resources Act. Project activities that may trigger the need for an aggregate permit are listed below:

Access roads will be constructed from aggregate, wood chips, or logs using bulldozers and gravel trucks (Section 3.4.4).

The Project may require aggregate and borrow material. Engineered aggregate will be required for the construction of the substations, access roads, and for concrete mixing. The total quantity of aggregate required will be determined during the detailed design stage (Section 3.4.4).

Wataynikaneyap does not anticipate becoming a permittee of new gravel pits for the construction of the line. Wataynikaneyap will work with permittees of off-reserve gravel pits to develop or adapt facility permitting to allow the supply of aggregates to the Project. Aggregate for the Project will not be sourced from Category 14 permitted pits. Discussions will continue with Aboriginal communities, sustainable forest licence holders (where applicable) and appropriate regulatory agencies regarding required approvals.

Provincial Parks and Conservation Reserves Act Work Permit A work permit under the Provincial Parks and Conservation Reserves Act may be required for clearing, construction, and operation of the Project where it crosses provincial parks, including BDE DPA, Otoskwin-Attawapiskat and Pipestone River Provincial Parks.

Where not specifically permitted under the park management statements or plans, Wataynikaneyap will work with the MNRF to amend statements or plans to allow for the transmission line. Assessment of alternative crossings related to provincial parks are discussed in detail in Section 3.10 and Appendix 7.4A.

Public Transportation and Highway Improvement Act The following permits may be required for the Project near highways:

Land Use and Building Permit;

Entrance Permit;

Encroachment Permit; and

Sign Permit.

Notice of Project As part of planning for construction Wataynikaneyap with their contractor will file a notice of Project under the Occupational Health and Safety Act to the Ontario Ministry of Labour.

Ontario Heritage Act Compliance Letter A Stage 1 archaeological assessment was prepared and submitted to the Ontario Ministry of Tourism, Culture, and Sport (MTCS) in 2017 and a compliance letter from the MTCS is anticipated in 2018. The Stage 1 assessment recommended that Stage 2 work be completed before construction of the Project. A Stage 2 assessment is planned to be completed in 2018.



Leave to Construct Any person who proposes to construct, expand or reinforce an electricity transmission line or make an interconnection must obtain an order from the Ontario Energy Board (OEB) granting leave to construct such a line pursuant to Section 92 of the Ontario Energy Board Act, 1998. The OEB considers whether the proposed project is in the public interest, with consideration of price, reliability and quality of electricity service. Additionally, Leave to Construct shall not be granted until the applicant satisfies the OEB that it has offered or will offer to each owner of land affected by the approved route or location an agreement in a form approved by the OEB. The OEB can order the expropriation of land if it is in the public interest. Upon request, the OEB can also grant authority to construct upon, over or under a highway, utility line or ditch. Outside of the leave to construct application, there are other OEB conducted reviews, such as those associated with the review of transmission investments. The OEB filing requirements note that most projects will require various other non-OEB approvals. For example, environmental assessment and duty to consult requirements fall outside of the OEB’s jurisdiction; however, the OEB needs to be satisfied that all required approvals beyond its jurisdiction have been identified and obtained, or are likely to be obtained.

Approval from the OEB under the Ontario Energy Board Act will be required. Wataynikaneyap will prepare a Leave to Construct application for the OEB in Q1 2018.

Mining Act Withdrawal Request A withdrawal request under the Mining Act may be required to avoid conflict with future mining claims that might affect the Project.

1.6.2.2 Potential Federal Permits, Approvals and Authorizations Species at Risk Act Permit A permit under the Species at Risk Act (SARA) may be required if Project activities cause a prescribe impact to species listed under Schedule 1 of SARA as extirpated, endangered, or threatened or which contravene the Act's general or critical habitat prohibitions.

Potential effects on certain fish, bird, mammal and vegetation species were assessed, including species that are listed under SARA as threatened (e.g., caribou (boreal population), eastern whip-poor-will and olive-sided flycatcher), endangered (e.g., little brown myotis), and special concern (e.g., Canada warbler).

Fisheries Act Authorization An authorization from Fisheries and Oceans Canada (DFO) under the Fisheries Act may be required if construction activities will cause serious harm to certain fish or fisheries. Wataynikaneyap will implement measures to reduce or avoid potential effects to fish and fish habitat at waterbody crossings (Section 6.2.7); therefore, serious harm to regulated fish are not predicted and a Fisheries Act authorization is not anticipated to be required.

Canadian Aviation Regulation Approval Part II Telecommunications and Electronic Systems of the Land Use In The Vicinity of Aerodromes provides design criteria normally applicable for protecting navigational aids, radars and telecommunications systems, which include systems for civil, military, and environmental applications. Wataynikaneyap will engage with owners of First Nation community airports/aerodromes (including MTO) and private aerodromes. The Project will be assessed for lighting and marking requirements in accordance with the Canadian Aviation Regulations for the airport.



Indian Act Authorization The Project will require authorization under the Indian Act for the Project components located on First Nation reserve lands. A permit under Section 28(2) allows non-members to use reserve lands in a limited way for a defined period of time and could be used for the transmission line.

Explosives Act Permit A permit under the Explosives Act is required for the use, storage, and transportation of explosives. Where conditions require, blasting with explosives may be used to excavate structure foundations (Section 3.5.1.2).

1.7 Environmental Study Report Organization This ESR has been developed and is being submitted by Wataynikaneyap, as the Proponent of the Project, in accordance with the provisions and requirements of the Ontario EAA and provincial Class EA requirements. The ESR will form the basis for further review, in consideration and discussion of the Project and these items by Aboriginal communities and Aboriginal groups, governments, non-governmental organizations and the interested public as part of the EA review. The ESR structure is outlined in Table 1.7-1.



Table 1.7-1: Environmental Study Report Organization

EA Section No. Section Title and Description

1.0 INTRODUCTION: Provides an overview of the Project, proponent, regulatory approvals and authorizations required for the Project, and rationale and purpose of the Project.

2.0 ENGAGEMENT SUMMARY: Provides a summary of the Aboriginal and stakeholder engagement completed in support of the Project, and the engagement approach and methods followed per the Aboriginal Engagement Plan and Stakeholder Engagement Plan for the Project.

3.0 PROJECT DESCRIPTION: Presents a detailed review of the Project components, construction schedule, review of alternatives to the Project, and alternative methods of carrying out the Project.

4.0 ENVIRONMENTAL EFFECTS ASSESSMENT APPROACH: Outlines the approach used to carry out the assessment of environmental effects predicted to occur as result of the Project.

5.0 PHYSICAL ENVIRONMENT BASELINE CHARACTERIZATION AND EFFECTS ASSESSMENT: Presents the assessment of effects to surface water, groundwater, air quality, climate change, and noise.

6.0 BIOLOGICAL ENVIRONMENT BASELINE CHARACTERIZATION AND EFFECTS ASSESSMENT: Presents the assessment of effects to vegetation and wetlands, fish and fish habitat, and wildlife.

7.0 SOCIO-ECONOMIC ENVIRONMENT BASELINE CHARACTERIZATION AND EFFECTS ASSESSMENT: Presents the assessment of effects to archaeological resources, cultural heritage resources, socio-economics, non-Aboriginal land and resource use, visual aesthetics, and human health.

8.0 ABORIGINAL AND TREATY RIGHTS AND INTERESTS: Assesses the effects of the Project on Aboriginal and Treaty Rights and Interests.

9.0 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN: Provides details on the environmental and social management plans that will be implemented as part of the Project.

10.0 NET EFFECTS ASSESSMENT SUMMARY: Presents a summary of the net effects assessment for all criteria.

11.0 CUMULATIVE EFFECTS ASSESSMENT SUMMARY: Presents a summary of the cumulative effects assessment for all criteria.

12.0 MONITORING AND COMMITMENTS: Summarizes the proposed monitoring to be implemented as part of the Project based on the results of the assessment.

13.0 CONCLUSION: Presents an overall conclusion for the assessment.



Table 1.7-2 presents the requirements from each Class EA and where they are addressed in the ESR.

Table 1.7-2: Concordance Table of Ontario Class Environmental Assessment Requirements

Class EA Requirement Specific EA Section Where Requirement is Addressed

Class EA for MNR Resource Stewardship and Facility Development11 Project Proposal and Alternatives:

Project Purpose and Rationale Section 1

Identification of Project Alternatives Section 3

Description of Study Area Section 4 Evaluation of Alternatives – Select Preferred Project: Using the screening criteria, an Environmental Analysis Summary will be prepared for each alternative, which will include the following information:

An indication of the environmental effects and their estimated significance;

Sections 5 to 8 (effects assessments); Sections 10 and 11 (Net Effects Summary and Cumulative Effects Summary)

An indication of the potential for mitigation of the environmental effects;

Sections 5 to 8; Section 9

An estimation of the effectiveness of the alternative to meet its intended purpose;

Section 3

An estimation of the cost and feasibility of carrying out the alternative; and

Section 3

The monitoring requirements of the alternatives. Section 12 Final ESR will include a Project Plan, including:

A complete project description, including the final design; Section 3

A map outlining the location and layout of the project; Section 3

Diagrams outlining the basic design characteristics of each component of the project, where appropriate;

Section 3

A description of anticipated project phases such as construction, operation, maintenance and abandonment in terms of where and how these activities will be carried out, including a timetable for each component; and the environmental effects which could reasonably be expected to be generated by each phase;

Section 4 (temporal boundaries); Sections 5 to 8 (effects assessments)

A description of consultation conducted and issues raised; MNR’s, the partner, or the disposition applicant’s response to these issues; and any changes made to the project in response to public or agency input;

Section 2

11 Category C Project requirements.





Class EA for MNR Resource Stewardship and Facility Development (cont’d)

An assessment of the project to meet its intended purpose;

Section 3

A list of all the environmental protection/mitigation measures and conditions to be applied to the project; and

Section 9

An outline of the proposed monitoring procedures. Section 12 Class EA for Provincial Parks and Conservation Reserves12 For Category C Projects, the ESR will include:

A description of what is to be accomplished by the project (the problem, opportunity or issue), and why.

Section 1

Confirmation of the project category. Section 1

Review of the planning already undertaken in support of the project and the matters remaining to be addressed in the project evaluation, based on the relevant approved land use or management direction or other policy document or approvals (per Step 1).

Section 1

A description of alternatives to the project and alternative methods of carrying out the project, where relevant, including a systematic comparison of alternatives where appropriate (see Appendix 5).

Section 3 and Appendix 3.10A

A description of the project study area and the environment affected, including existing land uses and valued ecosystem components and special features that could be affected.

Section 4, Section 7 (non-Aboriginal Land and Resource Use effects assessment)

Identification of potential environmental effects of the project and any alternatives, focusing on the potential effects identified in the screening, through consultation, and in available resource inventories.

Section 7 (non-Aboriginal Land and Resource Use effects assessment)

A description of the project evaluation process conducted, including the rationale for selecting the preferred alternative.

Section 7 (non-Aboriginal Land and Resource Use effects assessment)

Details of the proposed project including its location, duration (i.e., one time or recurring), the basic technologies to be used, and the project design. This may include a site plan, where appropriate.

Section 3

12 Category C Project requirements.





Class EA for Provincial Parks and Conservation Reserves (cont’d)

Applicable MNR policies, procedures, manuals and guidelines (see Appendix 3), other required approvals (see Appendix 7), and their relevance to the project.

Section 1

The environmental effects of the project and their significance, including discussion of any benefits that may offset negative effects. Assessing the significance of environmental effects is discussed in Appendix 5.

Section 7 (non-Aboriginal Land and Resource Use effects assessment), Sections 10 and 11 (Net Effects Summary and Cumulative Effects Summary)

Consideration of the implications of not proceeding with the project (the “no-go alternative”).

Section 3

Commitments to any proposed mitigation, remedial or enhancement measures.

Section 7 (non-Aboriginal Land and Resource Use effects assessment), Section 9

Consideration of whether monitoring is required, and, if so, commitments to monitoring the project and the future availability of monitoring records (See Section 5.4).

Section 12

Documentation of the screening evaluation. Appendix 7.4A A description of the public consultation process, a synopsis of the issues raised, MNR’s response to those issues, and any changes made to the project in response to public or agency input.

Section 2

Additional summaries or details of the environmental evaluations conducted and their findings (technical materials may be provided in supplementary documents).

Appendices





Class EA for Minor Transmission

An Environmental Study Report (ESR) will be prepared for each project subject to the study process described in Sections 3.1 to 3.5.

Prior to filing the ESR, the information will be available for review by any interested party during the period of final notification. The information will normally consist of the following:

A description of the undertaking. Section 3 A description of, and the need (justification) for the

project. Section 1

The location of the selected project. Section 1 The expected effects on the environment. Sections 5 to 8; Sections 10 and 11 The alternatives, mitigation and predicted net

effects. Section 3 (alternatives); Sections 5 to 8 (effects assessments); Section 9 (Environmental and Social Management Plan); Sections 10 and 11 (Net Effects Summary and Cumulative Effects Summary)

A description of any required environmental monitoring Section 12

Concerns raised during the study will be noted in the ESR, along with how they were addressed. Section 2

EA = environmental assessment.



1.8 References

Canadian Environmental Assessment Act. 2012. Regulations Designating Physical Activities. SOR/2012-147. Available at: http://laws-lois.justice.gc.ca/eng/regulations/SOR-2012-147/page-1.html

Cat Lake First Nation, Slate Falls First Nation and Ontario Ministry of Natural Resources. 2011. Cat Lake - Slate Falls Community Based Land Use Plan, “Nigann Bimaadiziwin” – A Future Life. July 2011.

Deer Lake First Nation and MNR. 2013. Deer Lake Far North Community Based Land Use Planning Terms of Reference. Available at: https://www.ontario.ca/document/deer-lake-far-north-community-based-land-use-planning-terms-reference

Green Energy and Green Economy Act. 2009. S.O. 2009, c. 12. Available at: https://www.ontario.ca/laws/statute/S09012

IESO. Recommended Scope for the New Line to Pickle Lake and Supported Scope for the Remotes Connection Project. October 13, 2016.

Lumos Energy (with technical assistance from The Delphi Group). 2013. Project Benefits Study Social, Environmental and Economic Analysis: Wataynikaneyap Power Project.

McDowell Lake First Nation and MNR. 2016. Mishi Sakahikaniing McDowell Lake Fist Nation Community Based Land Use Plan Terms of Reference. Available at: https://www.ontario.ca/page/mishi-sakahikaniing-mcdowell-lake-first-nation-community-based-land-use-plan-terms-reference

Ministry of Energy. 2017 Long-Term Energy Plan: Delivering Fairness and Choice. Available at: https://www.ontario.ca/document/2017-long-term-energy-plan

Ministry of Energy. 2013. Achieving Balance Long-Term Energy Plan. December 2013.

Mishkeegogamang First Nation, Eabametoong First Nation, MNRF. 2013. Community Land Use Plan: Taashikaywin. Eabametoong and Mishkeegogamang First Nations Far North Community Based Land Use Planning Terms of Reference. Available at: https://www.ontario.ca/document/eabametoong-and-mishkeegogamang-first-nations-far-north-community-based-land-use-planning-terms

MNR (Ontario Ministry of Natural Resources). 2005. A Class Environmental Assessment for Provincial Parks and Conservation Reserves. December 31, 2004. ISBN: 0-7794-3848-5.

MNR. 2003. A Class Environmental Assessment for MNR Resource Stewardship and Facilities Development Project. Environmental Assessment Report Series. Queen’s Printer for Ontario. Ontario, Canada.

MOE (Ministry of Environment). 2014. Code of Practice: Preparing and Reviewing Environmental Assessments in Ontario. January 2014.



MOE. 2011. Guide to Environmental Assessment Requirements for Electricity Projects. January 2011. Available at: https://www.ontario.ca/page/guide-environmental-assessment-requirements-electricity-projects.

Ontario Energy Board Act, 1998. S.O. 1998, c. 15. Available at: https://www.ontario.ca/laws/statute/98o15

Ontario Hydro. 1992. Class Environmental Assessment for Minor Transmission Facilities. Pursuant to the Environmental Assessment Act. Revision 6. Report No. 89513.

OPA (Ontario Power Authority). 2012. Technical Report for the Connection of Remote First Nation Communities in Northwest Ontario For Northwest Ontario First Nation Transmission Planning Committee.

OPA (Ontario Power Authority). 2014. Draft Technical Report and Business Case for the Connection of Remote First Nation Communities in Northwest Ontario For Northwest Ontario First Nation Transmission Planning Committee.

PwC (PricewaterhouseCoopers). 2015. Wataynikaneyap Power Financial Feasibility for Electrical Grid Connection of Northwestern Ontario Remote Communities.

Tookata, Claudette, Arnold Thompson and Soloman Rae. 2018. North Spirit Lake First Nation Terms of Reference for a Community Based Land Use Planning Process. Prepared on behalf of North Spirit Lake First Nation and the MNRF. Available at https://apps.mnr.gov.on.ca/ebr/docs/north-spirit-lake-terms-of-reference.pdf. Accessed May 2018

Wawakapewin First Nation and MNR. 2014. Terms of Reference Wawakapewin Community Based Land Use Plan. February 26, 2014. Available at: http://apps.mnr.gov.on.ca/public/files/er/wawakapewin-terms-of-reference.pdf

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