The moment I caught wind that the B.C. government’s decision on the Site C dam was coming down, my mind gravitated to Ken and Arlene Boon’s farm in the Peace River valley.

It was there that under the hot July sun, the Boons showed me around their 640-acre property that’s hosted five generations of their family.

If the Site C dam is built, as the B.C. government announced Tuesday it will be, much of the Boon’s farm will be underwater as part of the 55 square kilometres of river valley that will be flooded.

“It’s impossible to replace when you have this kind of history,” Arlene said. “I don’t want to be a millionaire. I just want to be happy on this land.”

You wouldn’t think dozens of farmers and ranchers are going to lose their livelihoods based on the tone of Tuesday’s press conference. The event to announce the go-ahead for the most expensive project in B.C. history was a BC Hydro love-in, full of pats on the back for the leaders of the project.

“This is a decision that is going to make a real difference for 100 years,” Premier Christy Clark said.

Jessica McDonald, BC Hydro CEO, chimed in with: “This is a day of exciting new beginnings for BC Hydro.”

“You don’t get to a day like today without literally hundreds of dedicated people working toward how to engineer something like this,” Bill Bennett, Minister of Energy and Mines, added.

Four questions were asked by the press, then there was a jubliant photo op and everyone moved along.

Meanwhile, people like the Boons watched from their computer screens in the Peace Valley.

“It’s sad, eh?” Ken said. “I watched Christy giving her talk there and I’m just struck by the way it’s like she hasn’t been listening to all these groups that have all stepped up.”

Those groups include not just local landowners and First Nations, but Clean Energy BC and the Canadian Geothermal Association, who’ve proposed alternatives they say would be cheaper and less environmentally damaging than building a third mega dam on the Peace River.

The total price tag for the Site C dam jumped from $7.9 billion to $8.775 billion in the past week. The premier said construction will start in the summer of 2015 and the project will be completed in 2024.

“All economic development projects have impacts of some kind,” Clark said. “First Nations are going to be impacted. Communities are going to be impacted. We need to be conscious of that and we need to do everything we can to mitigate it.”

But before mitigation begins, the project will have to navigate six different lawsuits from the Peace Valley Landowners’ Association and First Nations.

“It’s pretty clean cut now,” Ken said. “We know what our battle is. It’s far from a done deal. We’re having a meeting tonight with our lawyer.”

The landowners’ provincial challenge is scheduled to go to court on April 20.

The decision to proceed with the Site C dam ignores the recommendations of the Joint Review Panel, which said it couldn’t verify the cost estimates for the project or the long-term energy demand forecasts and recommended that the independent B.C. Utilities Commission should assess these factors.

“Approving Site C is the worst financial decision the province has ever made. It will leave us with a legacy of debt and destruction,” said Andrea Morison of the Peace Valley Environment Association.

Wendy Francis, the acting president of the Yellowstone to Yukon Conservation Initiative, called the decision to move ahead with the project “foolish.”

“Dams elsewhere are being dismantled because of their devastating environmental and social impacts,” Francis said. “The pace of industrial development in B.C.’s Peace region exceeds the pace of development in Alberta’s oilsands. We urge the B.C. government to conduct an immediate cumulative impacts assessment for the Peace region, as recommended by the Joint Review Panel.”

Back in the Peace Valley, instead of contemplating having to leave his farm, Ken is focused on fundraising for the landowners’ legal action. So far the group has raised $55,000 toward a $200,000 goal via an online crowdfunding campaign.

“This is kind of like David vs. Goliath,” he said. “But we all know how that story ended. I can’t wait to see this project fail.”

Read more: Out of Sight, Out of Mind: The Plight of the Peace Valley and the Site C Dam

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The provincial and federal governments have issued an environmental approval certificate for the Site C dam despite acknowledging it will cause significant adverse environmental effects.

“Those effects are justified in the circumstances,” says the decision statement signed by Leona Aglukkaq, Canada’s minister of environment.

The province must still decide whether to proceed with the 1,100-megawatt project based on an investment decision, expected by the end of this year.

“The final decision still has to go through the cabinet, so we’ll still be working to convince them it’s not the best decision,” said Andrea Morison of the Peace Valley Environment Association, a group that has fought the dam for decades.

The $8 billion project would be the third dam on the Peace River and would be located seven kilometres from Fort St. John, B.C.

The dam has been opposed by local farmers, ranchers and the Treaty 8 First Nations because it will flood 87 kilometres of the Peace River, impacting wildlife and flooding 30,000 acres of farmland, including an area the size of the city of Victoria within the Agricultural Land Reserve.

West Moberly Chief Roland Willson has already vowed to challenge the decision in court and has said the province can’t have both the Site C dam and liquefied natural gas (LNG) development, which requires gas from Treaty 8 territory.

The environmental assessment certificate is subject to 77 conditions, including establishing a fund of $20 million to compensate for lost agricultural lands and activities.

In May, a federal-provincial Joint Review Panel issued its report on Site C. The panel was ambivalent in its findings, saying both that the dam could provide cheap power but also that the costs needed to be examined further and that it’s not clear that the power will be needed on the timeline provided.

“The Joint Review Panel considering the dam’s impacts determined that they are so significant that only an ‘unambiguous need’ for the power would justify them. And BC Hydro did not demonstrate such a need,” said Karsten Heuer, president of the Yellowstone to Yukon Conservation Initiative (Y2Y). “We don’t understand the basis on which the B.C. and federal governments could issue their approvals.”

Y2Y has argued that the Site C reservoir would seriously impede wildlife movement in the region.

“The Peace River Valley is located at the narrowest width of the Yellowstone to Yukon region and the existing Williston Reservoir already is a major blockage to wildlife movement,” Heuer said.

The joint review panel’s report included a recommendation to refer the project for review by the independent B.C. Utilities Commission, saying the panel didn’t have the time or resources to comment on the cost of the project.

“All British Columbia Hydro ratepayers should be concerned about that,” said Gwen Johansson, mayor of the District of Hudson’s Hope.

The panel also found that the province has failed to look at alternatives to the Site C dam for the past three decades. New maps released this month indicate B.C. has enough low-impact geothermal energy to power the entire province. 

Read DeSmog Canada's 12-part series on the Site C dam.

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The B.C. government cannot expect support from First Nations for its much-touted liquefied natural gas (LNG) projects if the province insists on steamrolling ahead with the Site C dam, a First Nations chief is warning.

“They want support on LNG, and the level of destruction that is going to bring, and then they want Site C as well. They can’t have them both,” Chief Roland Willson of West Moberly First Nation told DeSmog Canada.

There is no logical reason to have both, Willson added, saying the provincial government has ignored alternatives to Site C, even as the federal Joint Review Panel found there is no immediate need for the power and excess power would be sold at a loss.

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Treaty 8 First Nations in B.C. are vehemently opposed to BC Hydro’s plans to build a third massive dam on the Peace River that would flood more than 5,000 hectares of land, swamp more than 330 recorded archaeological sites and — in direct contravention of the 1899 treaty — destroy land now used for hunting, fishing and collecting medicinal plants.

Initially, some Treaty 8 Tribal Association nations were willing to look at what the B.C. government was offering in terms of mitigation and compensation, but, as more information became available, Willson noted a change in attitude.

“Now everyone is opposed,” he said.

The treaty states First Nations have the right to continue with their way of life “for as long as the sun shines, the grass grows and the rivers flow.”

But with massive resource development in the area, the sun, grass and rivers are all at risk and Site C is the final straw, Willson said.

With high levels of methylmercury in fish because of rotting vegetation from the previous two dams, fishing is restricted and ungulates, such as caribou, are being destroyed by the major projects, said Treaty 8 Tribal Association Chief Liz Logan, who has asked the UN Special Rapporteur James Anaya to call on the government of British Columbia to assess cumulative impacts of industrial activity in the area.

A recent study, Passages from the Peace (PDF), by the David Suzuki Foundation and Global Forest Watch Canada found 28,587 kilometres of pipelines, 45,293 kilometres of roads and 116,725 kilometres of seismic lines used for oil and gas exploration within the Peace region.

“We have become the cash register for the province . . . .Now our way of life is going to be interfered with again,” Logan said.

“We are bush people and this is our grocery store, our pharmacy, our school and our church. It still sustains us.”

The treaty is alive, despite damage inflicted on the ecosystem by resource extraction and previous Peace River dams, so the province should think carefully about ramifications of treaty-breaking, Willson said.

The Joint Review Panel agreed the dam will have significant adverse effects on First Nations practices and heritage and that many of those effects cannot be mitigated.

A total of 21 First Nations would be affected if the valley is flooded and, with numerous legal decisions reasserting First Nations’ constitutional rights, there is growing awareness that a court challenge could hold up the $7.9 billion project for years if the province decides this fall to proceed.

First Nations file for judicial review of panel report

This month the Mikisew Cree First Nation, which has nine reserves in northeastern Alberta, and the Athabasca Chipewyan First Nation, which has eight reserves near the southwestern tip of Lake Athabasca, filed a Federal Court application for a judicial review of the Joint Review Panel report.

The two Treaty 8 First Nations rely on the Peace Athabasca Delta for plant gathering, fishing, hunting and travel through the many lakes and river tributaries and presented evidence at the hearings that showed the Delta is already ecologically stressed, with low water levels affecting wildlife habitat and harvesting.

Any further changes to water levels in the Delta could prevent First Nations from exercising their treaty rights, according to the application, which aims to have some sections of the Joint Review Panel report declared invalid and unlawful, some sections quashed and others referred back to the panel for further consideration.

The application is asking the Federal Court to prohibit the federal and provincial governments from taking any further actions that would allow Site C to proceed until a new report is issued that complies with “principles of procedural fairness.”

BC Hydro spokesman Dave Conway said he could not speculate about the possibility of Site C heading to court.

“However, I can tell you that we aim to fulfill our duty to consult and, where appropriate, accommodate aboriginal groups,” he said.

Logan said the five Treaty 8 nations have not yet voted on whether to go to court, but there are heavy hints that any attempt to build the dam will immediately become entangled in legal battles.

Chief's mandate: 'Oppose this right to the end'

“The only mandate I have right now is to oppose this right to the end. We are going to go back to our people once we hear the decision,” Logan said.

Willson supports the judicial review of the environmental assessment and then, if necessary, a court challenge.

But going to court is expensive, especially when going up against the deep pockets of BC Hydro and the provincial government, he said.

BC Hydro has talked with more than 50 aboriginal groups in hundreds of meetings since 2007 and will continue to look for mitigation measures, Conway said.

“We are committed to providing lasting benefits to aboriginal groups through the construction and operation of the project. In addition, we are negotiating impact benefit agreements with some First Nations where appropriate,” he said.

An impact benefit agreement could mean a lump sum payment, payments over time, cash equivalent benefits or agreements around provincial Crown land, Conway said.

But a major hurdle is the distrust First Nations have for government.

West Moberley First Nation Chief Roland Willson. Credit: Garth Lenz.

“Nothing the B.C. government has done since I have been chief has made me trust that I can believe anything they do,” Willson said.

Logan said she always tries to be hopeful.

“But, unfortunately, in my 16 years of working with this government, I have learned not to really trust what comes out of their mouth,” she said.

Site C likely to get entangled in court challenges

As decision time approaches, other Site C opponents are counting on the power of First Nations.

There is no doubt Treaty 8 nations have a strong case for stopping the dam plans, said Andrea Morison, coordinator of the Peace Valley Environment Association.

“That bodes very well for the campaign and I absolutely expect it would go to court,” Morison said.

However, in the meantime, Peace Valley residents and First Nations are hoping Site C will be rejected and there will be no need for a legal battle.

That will take more pressure from people in southern B.C., Logan said. A petition to stop the Site C dam and save the Peace River Valley has been set up at StopSiteC.org

“We are doing everything we can, along with our environmental friends from down south, to create awareness and tell people ‘it’s coming out of your pocket,’ ” she said.

Photo: Treaty 8 Tribal Chief Liz Logan by Zack Embree.

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The proposed Site C dam on the Peace River is the best alternative for providing B.C. with reliable cheap power, but BC Hydro has not proved that the power is needed in the immediate future, says a much-anticipated report by the federal Joint Review Panel.

The report does not give a definitive yes or no answer to the planned 1,100 megawatt dam, which will flood about 5,500 hectares of land, but includes 50 recommendations on issues such as threats to endangered wildlife, health effects for those living in the area and destruction of First Nations heritage sites.

If approved, project construction would begin in 2015 with completion projected for 2023.

The ambivalent report says B.C. will need new energy and new capacity at some point and “Site C would be the least expensive of the alternatives and its cost advantages would increase with the passing decades as inflation makes alternatives more costly.”

However, “the panel cannot conclude that the power of Site C is needed on the schedule presented.”

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There are also important environmental, social, economic, health and heritage costs, panel members concluded.

Risks to fish and wildlife include harmful and irreversible effects on migratory birds and species such as the western toad and short-eared owl.

“Justification must rest on an unambiguous need for the power and analyses showing its financial costs being sufficiently attractive as to make tolerable the bearing of substantial environmental, social and other costs,” it says.

High costs yet alternatives not considered

The report notes that BC Hydro has not looked closely enough at alternatives such as geothermal energy.

“The panel concludes that a failure to pursue research over the last 30 years into B.C.’s geothermal resources has left B.C Hydro without information about a resource that BC Hydro thinks may offer up to 700 megawatts of form, economic power with low environmental costs,” it says

The estimated $7.9 billion cost raised questions, but panel members said they do not have the information, time or resources to look at the accuracy of cost estimates and recommended that, if the project proceeds, costs should be examined in detail by the province’s independent regulator, the B.C. Utilities Commission (BCUC).

The Liberal government previously exempted Site C from BCUC scrutiny and, although the recommendation was applauded by groups such as the Peace Valley Environment Association, Energy Minister Bill Bennett immediately threw cold water on the idea.

“This project has been poked, prodded and analyzed for the last 35 years,” he said

“I think subjecting it to another review after all the years it has been studied, is not a good use of public money.”

Bennett believes BC Hydro will keep to its budget, despite reports showing mega-dams around the world often run 50 per cent over budget.

BC Hydro has included $1.52 billion for inflation and contingencies, he said.

“Of course with large projects like these, there’s no guarantees, but with such a large contingency fund and such a large fund for inflation and all the work that BC Hydro has done, I think we can have confidence in that final number,” he said.

The proposal must gain the approval of the federal and provincial governments and Bennett said he will take a recommendation to cabinet this fall after further environmental and First Nations consultations.

Indecisiveness not all around

Bennett, who said he views the Joint Panel review as “mostly positive,” emphasized that he has not yet made up his mind about the dam, which, if approved, would be the most expensive project built in the province.

“I am right square in the middle of this,” he said.

NDP leader John Horgan said the report shows the Liberal approach to Site C has been reckless and does not have a foundation in the realities of the North American energy market.

“The challenge ratepayers have is they are facing 28 per cent rate increases over the next five years and we have a government proposing to spend $8 billion on power that we may not need, at a time we don’t have the money to spend,” he said.

Former BCUC chair Mark Jaccard, professor in the school of resource and environmental management at Simon Fraser University, said he is impressed the panel tried to address big questions such as climate impact.

“But I was a bit frustrated that the panel waffled so much. I think I wanted them to say yeah or nay,” he said.

It is a difficult decision, because there are compelling arguments on both sides, and politicians will ultimately have to take a stand, but it would have been good to have a definitive opinion from experts who listened to presentations at the hearings, Jaccard said.

“They are trying to say all the things for all the people,” he said.

Signs of optimism

In the Peace Valley, the report is generating some optimism and Andrea Morison, Peace Valley Environment Association coordinator, applauded recommendations that show the panel has significant concerns about impacts.

“It shows the proponent has not fully demonstrated the need for the project and that there are other sources they should be looking at. Another key point is they can’t conclude the accuracy of the cost estimate,” she said.

Morison believes that once Bennett has studied the report he will decide to follow the key recommendation of referring it to BCUC for a cost review.

“One thing we can count on with politicians is that they do change their minds and it’s not solely his decision,” she said.

Hudson’s Hope Mayor Gwen Johansson also wants Bennett to pass the project to BCUC for scrutiny.

“It would be disappointing if he did not follow that recommendation,” she said.

Treaty 8 First Nations Tribal Chief Liz Logan said the core message to government is why build a project that is not needed. Alternative solutions such as wind power or smaller hydro projects must be considered instead, Logan said.

“We are still going to be vocal about it,” said Logan, who hopes British Columbians throughout the province will put pressure on the province.

“This project doesn’t just affect us on the ground, it’s going to affect the pocketbook of every British Columbian,” she said, adding she wants the project’s cumulative effects studied.

Those living in the area that will be affected by the dam see the report as validation of their belief that the adverse effects outweigh any benefits.

Spring is finally coming to the valley, said Ross Peck, a retired guide outfitter whose family has lived in the area since 1924.The grass is greening up, the leaves are about to pop and the valley is full of animals. I saw the first osprey today he said.

If the dam goes ahead, part of his property will be flooded, roads will cut close to his home and Peck believes he would have to leave.

“I don’t think we could sit on our deck and watch them clearcutting for the reservoir,” he said.

Esther Pederson, who would lose part of her farmland and her home to the dam, has little faith in any consultation process.

“The consultation so far has been ‘do you want to sell your farm now or later,’ ” she said.

Armed with the concerns raised in the report, it should be possible to stall approval at least until the next election, Pederson said.

“It could be dragged out forever and the First Nations people are lined up to take the government to court,” she said.

Photo: Peace Valley courtesy of Andrea Morison and Don Hoffmann.

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Opponents of the proposed Site C dam are hoping a report from the Canadian Environmental Assessment Agency panel, to be released Thursday, will emphasize potential environmental damage from the massive dam and persuade the federal and provincial governments that the project should be scrapped.

The report from the Joint Review Panel into BC Hydro’s $8-billion plan to build a dam that would flood 83 kilometres of the Peace River, putting 14,000 hectares of farmland under water, was submitted May 1 to federal Environment Minister Leona Aglukkaq and the B.C. Environmental Assessment Office, but there was no obligation to release it to the public for 45 days.

“The fact that they decided to share it just after they got it themselves is a little bit surprising, but we are feeling optimistic and hoping for the best,” said Andrea Morison of the Peace Valley Environment Association.

The panel’s recommendations, put together after 26 days of hearings, are not binding on government, but are likely to outline issues and possible solutions as well as indicating whether some environmental problems are insurmountable.

“There’s nothing binding, but I think it holds a considerable amount of weight,” Morison said.

The report will be posted on the Canadian Environmental Assessment Agency’s website Thursday. The provincial and federal governments must make their own decisions within 174 days, or six months, of the report being issued.

“The province has been very clear from the get-go that they support Site C,” said Joe Foy, Wilderness Committee’s national campaign director.

However, if the federal government decides it can’t support the project, Site C would probably die, Foy speculated.

“It’s clearly a matter that would require the federal OK. There are massive impacts that are clearly in the federal arena,” he said.

In February, the federal government rejected the New Prosperity Mine near Williams Lake, despite it having provincial support, after concluding the mine would have environmental effects that could not be mitigated.

There is speculation that even within the B.C. Liberal party there are doubts about whether Site C is necessary, although Premier Christy Clark has made it clear she is a supporter and much of the last election campaign was built on proceeding with Site C as a key building block of developing a liquefied natural gas (LNG) industry.

However, Energy and Mines Minister Bill Bennett has consistently been more cautious and said shortly after the election, when revelations were made about BC Hydro’s new capital costs and construction cost overruns, that he wanted to make sure that government would not be facing cost overruns with Site C. Because BC Hydro is a Crown corporation, cost overruns would be borne by taxpayers.

“Bill Bennett frequently seems to be keeping the door open on Site C,” Foy said.

“He told us in January that he had a team of researchers looking at alternatives to Site C.”

Bennett also recently told the Globe and Mail that there could be another level of screening on Site C costs. Government previously decided to circumvent the Crown corporation’s regulator, the B.C. Utilities Commission, which would have looked at financial issues. The environmental review is not expected to look closely at cost, necessity or practicality.

Questions have also been raised about whether LNG plants would find hydro power too expensive and would be more likely to use gas to feed their massive electricity needs.

Paul Kariya, executive director of Clean Energy BC — an industry trade association that represents independent power producers, including gas generators — recently told DeSmog Canada that the major LNG companies are looking at powering their plants via natural gas.

“Times have changed. We’ve been through an era of building big dams,” Kariya said. “When you build a dam, you get this one massive lump of power and that’s not the way that energy is planned for anymore.”

Kariya says independent power producers offer a more incremental approach to meeting demand.

However, even with a report from the World Convention on Dams — which says that projects routinely come in at 50 per cent more than estimated — and mounting evidence that the power produced by Site C is not needed and is likely to be sold at a loss, it is doubtful that the province will back down, said retired federal economist Erik Andersen.

“They are addicted to big photo-op projects,” he said.

“Over the course of the past four decades, the need for a Site C generation facility has been part of the larger and exaggerated demand narrative that BC Hydro has been telling.”

Site C — which gets its moniker from being the third dam proposed for the Peace River — has been on the books since the ’70s. It was first turned down by the independent B.C. Utilities Commission in the early '80s, which said BC Hydro hadn't demonstrated that the power was needed or that the dam was preferable to all other sources of power. In the ’90s, BC Hydro suspended the project again because the need for power was still considered insufficient.

Morison is hoping that, with release of the panel’s report, Site C will start catching the attention of people throughout the province, especially if they learn their Hydro bills are likely to rise beyond the 28 per cent increase already expected over the next five years.

“They need to realize that this is going to cost them,” she said.

— With files from Emma Gilchrist

Photo: The Peace River Valley Near the Halfway River by Tuchodi via Flickr.

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