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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Proposed changes to B.C.’s Agricultural Land Reserve (ALR) open the door to flooding the Peace Valley, which could feed a million people fruits and vegetables, according to an agricultural expert.

The Site C dam, if approved, would impact 13,000 hectares of agricultural land — including flooding 3,800 hectares of farmland in the ALR, an area nearly twice the size of the city of Victoria.

Bill 24 would split B.C.'s ALR into two zones. Zone 1 land would continue to be protected for food production, while Zone 2 land could be opened to non-agricultural uses, including oil and gas development.

On Monday, farmers from the Kootenays converged on the B.C. legislature, protesting the changes and saying they hadn’t been consulted. And on Tuesday, 13 soil experts wrote to Premier Christy Clark warning the bill will put at risk some of the province's best farmland.

With the changes, “the land reserve will be considered toothless,” says professional agrologist Wendy Holm, who has 40 years of experience in agriculture economics and public policy. “It opens the door for Site C.”

The Peace Valley falls into Zone 2, which includes the Interior, Kootenay and North regions — despite being capable of growing the same crops as the Fraser and Okanagan valleys (including melons, tomatoes and corn).

“There’s enough land to produce fresh fruits and vegetables for a million people,” Holm says of the Peace Valley. “There’s tremendous potential in the north.”

In a news release, the province said the changes would "provide farmers with more flexibility to support their farming operations" and "help farmers generate increased incomes and better support food production."

The ALR was created 40 years ago to preserve the province’s shrinking farmland in the face of rapid development pressures. Typically, to remove land from the reserve, approval is required from the province’s Agricultural Land Commission (ALC), which aims to conserve lands for food production.

But in December 2013, Energy and Mines Minister Bill Bennett wrote a letter to BC Hydro and the ALC seeking to block the commission’s involvement in the Site C review:

“The province is aware that one of the issues at the [JRP] hearing will be the effect of the project on agricultural land, some of which is within the Agricultural Land Reserve. I am writing to inform you that the government’s current view is that this process should not be duplicated … under the Agricultural Land Commission Act.”

However, the joint review panel assessing the proposal decided to request an opinion from the Agricultural Land Commission anyway — just days before its hearings finished.

“It’s the only large tract of vegetable land that’s not in production we have in the province,” says Holm, who was contracted by the Peace Valley Environmental Association to assess the Site C dam’s impact on agriculture. “We have to bring more land into production to meet our own food security needs.”

B.C. imports 57 per cent of fruits and vegetables consumed in the province that could be grown in the province, according to Holm’s presentation to the review panel.

“It’s not about what’s economic today,” she says. “This is land that forms part of the commons. This is part of the natural capital of our country.”

Holm says food prices are only going up, further increasing the importance of protecting agricultural land. “I think we’re going to see dramatically increasing food prices due to the droughts happening,” she says.

Some of the arable land in the Peace Valley is not currently farmed because the area has been under threat of flooding since the late 1950s, Holm says.

“Without the shadow of the dam, what is happening today would be different,” she says.

The Peace River already hosts two hydro dams — the WAC Bennett Dam, which began operating in 1968 and created the Williston Reservoir, the largest body of freshwater in B.C., and the Peace Canyon dam, completed in 1980.

In the 1980s, the Site C dam was considered by the independent BC Utilities Commission and turned down because the electricity it would produce was too expensive and not needed. In the ’90s, BC Hydro decided to suspend the project again because the need for power was still insufficient. The project may have been turned down by the utilities commission again, but in 2010 the provincial government removed Site C from the commission’s oversight.

The joint review panel is expected to issue its recommendation on the Site C dam in late April.

Photo: Downstream of the proposed Site C dam. Credit: Tuchodi via Flickr.

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