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Hydro-Québec takes partnerships, environmental measures and sharing of wealth to new levels

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The Canadian Energy Compendium is an annual Energy Council of Canada initiative which provides opportunity for cross-sectoral collaboration on a topic of shared interest across the Canadian energy sector, produced with the support of Canada’s national energy associations and Energy Council of Canada’s members. The stories contributed to the 2019 edition, Indigenous Energy Across Canada, highlight current conversations celebrating Canada’s dynamic energy sector and encouraging its continuous improvement.

Thanks to Todayville for helping us bring our members’ stories of collaboration and innovation to the public.

Click to read a Foreward from JP Gladu, Chief Development and Relations Officer, Steel River Group; Former President & CEO, Canadian Council for Aboriginal Business

JP Gladu, Chief Development and Relations Officer, Steel
River Group; Former President & CEO, Canadian Council for Aboriginal Business

THE THIRD PHASE OF JAMES BAY DEVELOPMENT: TAKING PARTNERSHIPS, ENVIRONMENTAL MEASURES AND SHARING OF WEALTH TO NEW LEVELS

This article, submitted by Hydro-Québec, will focus on the development of the third phase of the James Bay complex, namely the generating stations namely the Eastmain-1 and Eastmain-1A/Sarcelle/Rupert project. Emphasis will be placed on the development of a new relationship with the Cree that led to an improved project development model.

The Eastmain Complex, the most recent of the James Bay hydroelectric development: Taking partnerships, environmental measures and sharing of wealth to new levels.

When the initial phases of hydropower development in the Baie-James region of Québec was launched in the 1970s, there was no law on the environment, no environmental ministries and no environmental impact assessment process. So consulting affected communities wasn’t on anyone’s agenda and wasn’t yet part of Hydro-Québec’s approach. In the new millennium, with a new phase of development in this region, close-knit partnerships with the Cree Nation have become the cornerstone of project development throughout Québec.

Nadoshtin and Boumhounan agreements paved the way to new developments in Baie-James in the 2000s

The Nadoshtin agreement (2002) between the Crees and Hydro-Québec opened up the possibility of building and operating the Eastmain-1 hydropower project, while the Boumhounan agreement (2002) provided a framework for the Eastmain 1- A/Sarcelle/Rupert project. The key to success for the Eastmain projects was partially diverting the Rupert River’s flow northward.

But Hydro-Québec’s commercial interest in this new project had to be balanced by clear and extensive measures to preserve the surrounding environment and respect host Cree Nation and Cree communities.

In the framework of the Eastmain-1 project, Hydro-Québec made a number of commitments with a view to

  • reduce the project’s impacts on the environment
  • protect the Cree way of life and encourage partnerships with the Cree communities
  • encourage the awarding of contracts to Cree businesses
  • promote the training and hiring of Cree workers.
  • built local capacity

“…The company wanted to do more than minimize environmental impact; Hydro-Québec wanted community members to see positive gains from the Eastmain developments…”

From the design stage, which was carried out in concert with the Cree, the Eastmain 1-A/Sarcelle/Rupert project incorporated many environmental protection measures, reflecting the Cree traditional knowledge of the community members they consulted. The Cree of Québec were involved in all stages of the project, ensuring they had a voice in how their land would be impacted.

Photo courtesy Hydro-Québec. Yellow sturgeon are raised in a fish hatchery and released into their natural habitat in mid-September, when they have reached a certain maturity. Cree tallymen assist in releasing the fish into the Rupert River in the Baie-James region.

With input from Cree community members, Hydro-Québec devised a combination of dikes and canals to improve water flow, ensuring that the project, which diverts 71% of the river’s flow, flooded only a minimal land area. They also incorporated a substantial ecological in-stream flow and a series of weirs in the river to protect fish habitats, biological diversity, preserve the landscape, and maintain navigation and other activities in the area.

Furthermore, Hydro-Québec signed an unprecedented water management agreement with the Cree to ensure that the modulation of the ecological in-stream flow was managed in a cooperative manner.

Economic spinoffs

In addition to helping preserve the local environment, Hydro-Québec was committed to bringing growth opportunities to the Cree of Québec. The company wanted to do more than minimize environmental impact; Hydro-Québec wanted community members to see positive gains from the Eastmain developments.

Under the Boumhounan Agreement, an extensive participation program built around information and consultation with Cree stakeholders was put in place. It also made funds available for the Cree to finance fisheries, capacity building and traditional activities projects.

When the Eastmain 1A/Rupert diversion project was completed in 2013, the Cree and Hydro-Québec signed the Reappropriation Agreement, giving Cree land users the necessary support to maintain their traditional activities as long as the Rupert River diversion is in operation.

Post-project consultations: ensuring that measures were effective

The COMEX, a joint committee composed of 3 members appointed by the Government Quebec and 2 members appointed by the Cree Nation government, organized consultations with Cree communities to hear their views on the effectiveness of environmental and social mitigation measures put in place for the Eastmain 1A/Rupert diversion project. Approximately 200 members of the Cree Nation from six communities participated in the consultations organized in November 2012.

Photo courtesy Hydro-Québec. Between 2002 and 2005, prior to the impoundment of the Eastmain-1 reservoir, 50 archeologists and Cree workers undertook archeological digs. They discovered 158 sites and their work shows that the Baie-James territory has been occupied by these populations for the last 5,000 years.

The major findings of the COMEX were as follows:

  • […]”the Committee is convinced that the Eastmain-1-A and Sarcelle Powerhouses and Rupert Diversion Project will have contributed to greater understanding between all the parties concerned, to greater Cree involvement in the development of the territory, and perhaps to empowering them to achieve their long- term economic and community development goals.”
  • “Compared to previous projects carried out in the territory, the Eastmain-1- A/Sarcelle/Rupert project included more adequate and an unprecedented number of mitigation and compensation measures, for both environmental and social impacts. Many of these measures are aimed at helping Cree land users reclaim the territory. A new approach was developed and the Crees have benefited from the partnerships built with the proponent, thereby forging a new relationship.”
  • “Hydro-Québec was proactive, exceeding the requirements of the certificate of authorization in an effort to minimize the project’s impacts and ensure greater Cree involvement in environmental and social follow-up activities.”
  • “Hydro-Québec went to great lengths to ensure that Aboriginal communities derive benefit from the project.”

A new project development model

The Eastmain Complex – the most recent phase of development in Baie-James – added a potential energy output of 8.7 TWh per year, enough to power more than 500,000 Québec homes. The new relationships that Hydro-Québec and the Cree Nation developed over that period have become models for future energy resource development throughout Québec. With considerable untapped hydropower potential and a strong wind potential in Québec, Hydro-Québec’s new and improved project development model holds great promise for the future of clean energy in northeast North America.

Jacob Irving, President of Energy Council of Canada

The Canadian Energy Compendium is an annual initiative by the Energy Council of Canada to provide an opportunity for cross-sectoral collaboration and discussion on current topics in Canada’s energy sector.  The 2020 Canadian Energy Compendium: Innovations in Energy Efficiency is due to be released November 2020.

Click to read comments about this series from Jacob Irving, President of the Energy Council of Canada.

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The Energy Council of Canada brings together a diverse body of members, including voices from all energy industries, associations, and levels of government within Canada. We foster dialogue, strategic thinking, collaboration, and action by bringing together senior energy executives from all industries in the public and private sectors to address national, continental, and international energy issues.

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Alberta

Alberta introduces bill allowing province to reject international agreements

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From LifeSiteNews

By Anthony Murdoch

Under the proposed law, international treaties or accords signed by the federal government would not apply in Alberta unless approved through its own legislation.

Alberta’s Conservative government introduced a new law to protect “constitutional rights” that would allow it to essentially ignore International Agreements, including those by the World Health Organization (WHO), signed by the federal Liberal government.

The new law, Bill 1, titled International Agreements Act and introduced Thursday, according to the government, “draws a clear line: international agreements that touch on provincial areas of jurisdiction must be debated and passed into law in Alberta.”

Should the law pass, which is all but certain as Alberta Premier Danielle Smith’s Conservatives hold a majority government, it would mean that any international treaties or accords signed by the federal government would not apply in Alberta unless approved through its own legislation.

“As we return to the legislature, our government is focused on delivering on the mandate Albertans gave us in 2023 to stand up for this province, protect our freedoms and chart our path forward,” Smith said.

“We will defend our constitutional rights, protect our province’s interests and make sure decisions that affect Albertans are made by Albertans. The federal government stands at a crossroads. Work with us, and we’ll get things done. Overstep, and Alberta will stand its ground.”

According to the Alberta government, while the feds have the “power to enter into international agreements on behalf of Canada,” it “does not” have the “legal authority to impose its terms on provinces.”

“The International Agreements Act reinforces that principle, ensuring Alberta is not bound by obligations negotiated in Ottawa that do not align with provincial priorities,” the province said.

The new Alberta law is not without precedent. In 2000, the province of Quebec passed a similar law, allowing it to ignore international agreements unless approved by local legislators.

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Alberta

B.C. would benefit from new pipeline but bad policy stands in the way

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From the Fraser Institute

By Julio Mejía and Elmira Aliakbari

Bill C-69 (a.k.a. the “no pipelines act”) has added massive uncertainty to the project approval process, requiring proponents to meet vague criteria that go far beyond any sensible environmental concerns—for example, assessing any project’s impact on the “intersection of sex and gender with other identity factors.”

In case you haven’t heard, the Alberta government plans to submit a proposal to the federal government to build an oil pipeline from Alberta to British Columbia’s north coast.

But B.C. Premier Eby dismissed the idea, calling it a project imported from U.S. politics and pursued “at the expense of British Columbia and Canada’s economy.” He’s simply wrong. A new pipeline wouldn’t come at the expense of B.C. or Canada’s economy—it would strengthen both. In fact, particularly during the age of Trump, provinces should seek greater cooperation and avoid erecting policy barriers that discourage private investment and restrict trade and market access.

The United States remains the main destination for Canada’s leading exports, oil and natural gas. In 2024, nearly 96 per cent of oil exports and virtually all natural gas exports went to our southern neighbour. In light of President Trump’s tariffs on Canadian energy and other goods, it’s long past time to diversify our trade and find new export markets.

Given that most of Canada’s oil and gas is landlocked in the Prairies, pipelines to coastal terminals are the only realistic way to reach overseas markets. After the completion of the Trans Mountain Pipeline Expansion (TMX) project in May 2024, which transports crude oil from Alberta to B.C. and opened access to Asian markets, exports to non-U.S. destinations increased by almost 60 per cent. This new global reach strengthens Canada’s leverage in trade negotiations with Washington, as it enables Canada to sell its energy to markets beyond the U.S.

Yet trade is just one piece of the broader economic impact. In its first year of operation, the TMX expansion generated $13.6 billion in additional revenue for the economy, including $2.0 billion in extra tax revenues for the federal government. By 2043, TMX operations will contribute a projected $9.2 billion to Canada’s economic output, $3.7 billion in wages, and support the equivalent of more than 36,000 fulltime jobs. And B.C. stands to gain the most, with $4.3 billion added to its economic output, nearly $1 billion in wages, and close to 9,000 new jobs. With all due respect to Premier Eby, this is good news for B.C. workers and the provincial economy.

In contrast, cancelling pipelines has come at a real cost to B.C. and Canada’s economy. When the Trudeau government scrapped the already-approved Northern Gateway project, Canada lost an opportunity to increase the volume of oil transported from Alberta to B.C. and diversify its trading partners. Meanwhile, according to the Canadian Energy Centre, B.C. lost out on nearly 8,000 jobs a year (or 224,344 jobs in 29 years) and more than $11 billion in provincial revenues from 2019 to 2048 (inflation-adjusted).

Now, with the TMX set to reach full capacity by 2027/28, and Premier Eby opposing Alberta’s pipeline proposal, Canada may miss its chance to export more to global markets amid rising oil demand. And Canadians recognize this opportunity—a recent poll shows that a majority of Canadians (including 56 per cent of British Columbians) support a new oil pipeline from Alberta to B.C.

But, as others have asked, if the economic case is so strong, why has no private company stepped up to build or finance a new pipeline?

Two words—bad policy.

At the federal level, Bill C-48 effectively bans large oil tankers from loading or unloading at ports along B.C.’s northern coast, undermining the case for any new private-sector pipeline. Meanwhile, Bill C-69 (a.k.a. the “no pipelines act”) has added massive uncertainty to the project approval process, requiring proponents to meet vague criteria that go far beyond any sensible environmental concerns—for example, assessing any project’s impact on the “intersection of sex and gender with other identity factors.” And the federal cap on greenhouse gas (GHG) emissions exclusively for the oil and gas sector will inevitably force a reduction in oil and gas production, again making energy projects including pipelines less attractive to investors.

Clearly, policymakers in Canada should help diversify trade, boost economic growth and promote widespread prosperity in B.C., Alberta and beyond. To achieve this goal, they should put politics aside, focus of the benefits to their constituents, and craft regulations that more thoughtfully balance environmental concerns with the need for investment and economic growth.

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