Electricity Transmission – Application for Interconnection – NEB Act Section 58.11
On 23 December 2016, Hydro-Québec TransÉnergie (“HQT”) applied to the NEB pursuant to subsection 58.11(1) of the National Energy Board Act (“NEB Act”), for a permit to construct and operate a 79.2 kilometre (km) long 320 kilovolt (kV) power line from just north of Sherbrooke, Quebec to the New Hampshire border (the “Project”). The Project as applied for would increase HQT’s capacity to export power into the New England grid. The estimated incremental transfer capacity with the Project in service would be:
(a) 1,128 MW in export mode (from Quebec to New England); and
(b) 1,075 MW in import mode (New England to Quebec).
On 28 February 2017, HQT applied to the Board to vary its EC-III-021 Certificate (the “Certificate”), modifying the definition of the authorized facility as described in Condition 2 of that Certificate. The proposed modification included the reconfiguration of the power lines that exit the Des Cantons substation including the re-use of a 4.2 km section of the 450 kV Nicolet-Des Cantons International Power Line (“IPL”), so that the 4.2 km segment can be operated at 320 kV (the “Variance Application”).
HQT confirmed that the Variance Application was contingent on the issuance of the permit for the Permit Project. The NEB on its own motion assessed the Permit Project and Variance Application concurrently.
The NEB approved the Permit Project and issued the electricity permit EP-303 (“Permit”). The NEB also granted the Variance Application.
Engineering Matters
The NEB found that:
(a) the overall design of the proposed 320 kV Project used sound engineering practices in respect of structural design, layout, line and structure numbering, equipment selection, transfer capacity and reliability; and
(b) the construction, operation, and maintenance of the Project would meet all standards and requirements related to safety, reliability, and engineering.
Economic Feasibility and Need for the Project
The Board found that:
(a) the Project was responding to market need and that it would increase the export capacity of Quebec;
(b) the evidence provided by HQT regarding the market conditions was sufficient to demonstrate demand for the Project;
(c) HQT had sufficient financial resources in place to finance the construction and operation of the Project; and
(d) HQT had sufficient financial strength to finance the future abandonment of the Project, and the NEB approved HQT’s abandonment cost estimate of $11.3 million for the Project.
Public Consultation
The NEB found that:
(a) HQT’s consultation program and public consultation efforts were appropriate for the scope and scale of the Project;
(b) HQT had adequately identified and engaged stakeholders, developed engagement materials, notified stakeholders of the Project and responded to their input; and
(c) the public concerns received through the comment period had been addressed and mitigated by HQT.
Routing
The NEB found that the route selection and the criteria used to determine the route were acceptable and appropriate given the scope and scale of the Project.
In this respect, the NEB noted that following:
(a) HQT’s efforts to determine an appropriate route, taking into consideration public input and land use in the area;
(b) HQT’s route selection criteria, which considered:
(i) stakeholder concerns and minimized potential environmental and social impacts;
(ii) avoiding sensitive environmental areas; and
(iii) following existing infrastructure as much as possible, such that over 80% of the route follows the existing right-of-way; and
(c) the Project would be located entirely on private land.
Environment and Socio-Economic Matters
The NEB found that the carrying out of the Project was not likely to cause significant environmental and socio-economic effects, given the nature and scope of the Project, mitigation measures proposed by HQT, and the implementation of the Government of Quebec and NEB’s mitigative conditions.
HQT conducted an environmental and socio-economic assessment for the Project (the “Environmental Assessment”). The Environmental Assessment assessed alternatives, including different routes, means and construction methods.
HQT applied for a certificate with the Province of Quebec where interested and affected parties were able to express their concerns under the provincial process. The NEB noted the responsibility of the Government of Quebec to oversee the Project as part of the province’s issuance of the certificate under provincial jurisdiction. The Province of Quebec imposed conditions on its approval of the Project to protect the environment. These conditions included mitigation and/or compensation measures regarding the Forêt Hereford, wetlands, watercourses as well as certain wildlife and vegetation.
The NEB was responsible for issuing a federal permit and imposed several conditions to allow the NEB to verify that HQT fully implemented its environment protection commitments, including:
(a) Condition 10 requiring HQT to file an updated Environmental Protection Plan before commencing construction;
(b) Condition 17 requiring HQT to file post-construction monitoring reports to verify that any possible environmental issues that may arise were identified and mitigated accordingly; and
(c) Condition 13 requiring HQT to confirm that it has obtained all required archaeological and heritage resources clearances and authorizations from the province.
Aboriginal Matters
Concerning the design and implementation of HQT’s Aboriginal consultation activities, the NEB held that HQT’s design of Project-specific consultation activities was adequate given the scope and scale of the Permit Project.
The NEB further found that:
(a) the potential adverse effects of the Project on the current use of lands and resources for traditional purposes by Aboriginal groups were not likely to be significant;
(b) in light of the nature of the interests and the anticipated effects, there had been adequate consultation and accommodation for the purpose of the NEB’s decision on the Project; and
(c) any potential Project-related impacts on the interests, including rights, of affected Aboriginal groups were not likely to be significant and could be effectively addressed.
The Project’s study area was not within any territory subject to any Aboriginal land claims. The closest Aboriginal groups to the Project, the Odanak First Nation, and Wôlinak First Nation, were located over 80 km from the study area.
In addition to providing technical information addressing impacts of the Project on, among other things, wildlife, vegetation, and heritage resources, HQT was required to make all reasonable efforts to consult with potentially affected Aboriginal groups and to provide information about those consultations to the NEB. The NEB required including evidence on the nature of the interests potentially affected, the concerns that were raised and the manner and degree to which those concerns had been addressed.
The NEB explained that it evaluates the sufficiency of the applicant’s consultation process and that HQT was expected to report on all Aboriginal concerns that were expressed to it, even if it was unable or unwilling to address those concerns.
Concerning the scope and depth of consultation, the NEB stated that it expects an applicant:
(a) to design and implement its consultation activities about the nature and magnitude of a project’s potential impacts both from early in the design phase and into the future operational phase of a project;
(b) where there is a greater risk of more serious impacts on Aboriginal interests including rights, the NEB has higher expectations regarding the applicant’s consultation with potentially impacted Aboriginal groups; and
(c) in contrast, where there is a remote possibility of an impact on Aboriginal interests, or the impacts are minor, the applicant’s consultation will generally not be expected to be as extensive.
The NEB noted HQT’s commitment to ongoing consultation with Aboriginal groups and its ongoing dialogue with Le Bureau du Ndakinna du Grand Conseil de la Nation Waban-Aki. The NEB also noted that the Permit Project was located primarily on privately owned land with limited access by Aboriginal groups.
Decision
For the reasons summarized above, the NEB found that further inquiry into HQT’s application was not warranted. Accordingly, the Board did not recommend to the Minister that the Governor in Council designate HQT’s application for a certificating procedure.
The NEB, therefore, issued the interconnection permit and Variance Order.
