Town of Happy Valley-Goose Bay
Submission to the Joint Review Panel
Lower Churchill Hydroelectric Generation Project
March 3, 2011
(Slide 1 – Title Page)
Good Evening Ladies and Gentlemen. My name is Leo Abbass and I am the Mayor of
Happy Valley-Goose Bay. On behalf of our community I would like to welcome the
members of the Joint Review Panel and those in attendance, both presenters and
observers, who are participating in this process that will help form the framework in
which this project will move forward.
With the proposed development happening just 20 kilometers from our town, it is
reassuring to have the majority of the public hearings take place in our community. This
process provides our citizens with the opportunity to hear for themselves the benefits a
project of this magnitude will bring to our community. As well, these hearings will reveal
potential ramifications and the mitigation processes that will be initiated to help alleviate
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them. It is hoped that these sessions will be well attended, thought provoking and
provide the necessary recommendations required to complete this project in an
economically and environmentally sound manner.
(Slide 2 – Contents)
As I move through our presentation this evening, I will be discussing the following
points: the Town’s support, mandate, issues from this project that will affect our town,
the mitigation processes that will be put in place, benefits to our community, and a brief
summation. It should be noted that our municipality has limited jurisdiction with regards
to this project. While being the closest adjacent community where the majority of impact
will be felt, the scope of work is outside our municipal boundaries. Issues, such as the
environment, while important considerations for all residents of the town, fall under the
jurisdiction and control of other orders of government.
(Slide 3 – Town Support)
The development of the Lower Churchill for hydroelectric generation has been an
ongoing issue for decades. The amount of research conducted over the years on the
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effects of this project is immense. Unfortunately, municipalities, no matter what their
size or budgetary capacity, do not qualify to receive funding under the Participant
Funding Program offered through the Canadian Environmental Assessment Agency. Our
town, with a population of approximately 8,000 could certainly have used this type of
financial assistance to ensure our residents received the fullest understanding of all
aspects of this entire process. We would ask that the Federal Government review their
criteria for this funding to include municipalities with populations under 10,000. Such an
inclusion would assist in the alleviation of the additional pressures placed on our
financial and human resources as we address the critical issues falling within our
municipal mandate. As it stands presently, constraints on our resources significantly
impact and challenge our Town’s ability to fully address a Project of this magnitude.
We have met with various stakeholders including the Labrador North Chamber of
Commerce, the Central Labrador Economic Development Board, and the Grand River
Keepers. We have also met on numerous occasions with the proponent, Nalcor Energy,
to discuss this project and its potential effects on our community. Our public Council
meetings have also provided an opportunity for citizens to address Council with their
concerns regarding this project. Overall, Council is confident the support from the
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community is strong in seeing this development move forward with optimal balance
between maximum economic benefits and minimum environmental impact.
The Town Council is on record as supporting this project.
This support is conditional
on the following factors being met: a block of power available to meet the demands of
industry currently and into the future, the development of a Labrador Heritage Fund from
proceeds of this project and other projects that may result from the availability of this
power. And thirdly, a competitive hydro rate for industrial, commercial and residential
customers.
Council has always been assured that any power requirements for future large
developments will be made available as it is the responsibility of Nalcor to provide such
power as needed. However, we ask that with regards to the Muskrat Falls Project
Nalcor’s mandate be project specific and reflect the Town’s position that adjacency be
the critical factor when addressing our request for a block of power. We would ask that
the other considerations Council has requested be given due consideration and adopted.
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(Slide 4 – Town Mandate)
It is important to note that the Town of Happy Valley-Goose Bay is legislated by and
restricted to the Province of Newfoundland and Labrador Municipalities Act. It
specifically lays out the roles and responsibilities within the town’s mandate. These
items would include: administration and taxation, operation and maintenance of water
and sewer infrastructure, roads, economic development, land development, emergency
services and preparedness, and recreational facilities, all falling within the town’s
boundaries. Any issues outside the mandate of the Town are under the jurisdiction and
expertise of others. While some issues pertaining to this Project may impact our
residents, any recourse available to the Town may be limited to lobbying efforts that
assist in mitigation.
(Slide 5 – Issues Affecting the Town)
In reviewing the Environmental Impact Statement and Information Requests for the
Lower Churchill Hydroelectric Generation Project it is apparent that the Town of Happy
Valley-Goose Bay will be impacted significantly. Key areas include our infrastructure
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and its ability to handle increased usage and demand from this project; impacts on the
quality of life throughout our community, as well as human resource capacity. It is
necessary that these pressures be mitigated or eliminated through proper planning and
financial assistance. The re-sequencing of the project that now sees Muskrat Falls being
developed first has forced the Town to accelerate its mitigation plans. As a small
community, with a multimillion dollar wastewater treatment plant being constructed this
year, our resources to carry out any mitigation for this project are limited. We do not
want to go back to our taxpayers to provide additional funding for any issues that are the
result of the Lower Churchill Project.
On numerous occasions Nalcor has stated that it
is the Provincial Government’s responsibility to assist the municipality with
infrastructure needs. However, as a Crown Corporation of the Provincial Government,
there are synergies between Nalcor, the Province and the Municipality that must be
immediately discussed and applied. We would ask that representatives from the Province
and Nalcor meet with our municipality to address our issues and to assist our community
with a strategy to mitigate these issues, with a financial component attached, so that any
necessary measures may be initiated as soon as possible. The following are some issues
that need to be considered.
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(Slide 6 – Issues Affecting the Town: Water Supply)
Water Supply.
The current water supply for the town comes from two sources: water from five wells
treated at our municipal water treatment plant and water purchased from the Department
of National Defense Spring Gulch facility. At the moment there is enough capacity from
our water treatment plant for our current needs. Any increase in demand resulting from
the Lower Churchill Project, and the industry it will inevitably attract, will either
necessitate the purchase of additional water from DND, if made available, or by incurring
more debt by augmenting our own sources. This will increase the town’s capital costs as
well as the accompanying operation and maintenance for such demand.
Consideration must also be given to water issues with regards to emergency
preparedness. It is recommended that any municipality have at least two sources of
potable water. Currently we are fortunate to have that capacity but we must be cognizant
of the costs involved if one or both facilities fail. The town may need to look to other
sources for additional wells with the reservoir resized to accommodate such demand.
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(Slide 7 – Issues Affecting the Town: Wastewater System)
Wastewater System.
As mentioned earlier, the Town is in the process of procuring a wastewater treatment
plant that has been mandated through new federal regulations. In order to meet federal
funding criteria, this project must be completed by December 31, 2012.
This new
system is designed to handle the capacity for a population of twenty-five thousand. The
municipality is required to pay for one third of the capital costs of this project and one
hundred percent of its ongoing operations and maintenance. As you can appreciate, with
our population of 8,000, it will be a tremendous burden on our taxpayers.
According to the EIS, the camp at Muskrat Falls will have its own aerated sewage
treatment lagoon thus having little effect on the municipality’s system. However, as with
the water supply, increase demand from associated spinoffs from the project will affect
our system and the town’s capacity to operate and maintain additional infrastructure. As
well, our landfill site will be impacted by the dumping of lagoon sludge from the camp’s
system.
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(Slide 8 – Issues Affecting the Town: Landfill Site)
Landfill Site.
The Town of Happy Valley-Goose Bay’s landfill site currently services the Upper Lake
Melville Region. The EIS states that our landfill has the capacity to last another twelve
to fifteen years at the current usage levels. However, these levels have not remained
static. The region has seen a significant increase in new housing starts, renovations and
demolitions, which has decreased the lifespan of our landfill. Our town alone has seen
over the past two years 189 permits approved, of which 127 were for new homes and 10
were for commercial upgrades or additions.
Our wastewater treatment plant, once completed, will also place an additional burden on
our landfill capacity as sludge will need to be disposed of there. The proponent plans to
utilize the Town’s landfill for its own garbage and wastewater sludge. Again, increased
demand from associated spinoffs will put additional pressure on the capacity of the
landfill site. The creation of a new landfill site with an associated waste management
strategy needs to be addressed. We recognize that there will be huge financial
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commitments required to ensure that this new operation is managed in a sound
environmental manner. Again, who will be expected to pay?
(Slide 9 – Issues Affecting the Town: Transportation Networks)
Roads.
With a project of this scope it is obvious that there will be a great deal more traffic within
our town. Heavier vehicles will accelerate the wear and tear on the roads, and will result
in annual budgetary increases for our Roads and Grounds Department. Increased traffic,
elevated noise levels and pedestrian safety are a sampling of the issues our town will face
as this project moves forward.
Airport.
While the Goose Bay Airport terminal expansion will be completed by the end of this
year, accommodating an annual flow of one hundred thousand people, there is still
concern that workers for the project may impact terminal use. The efficient
accommodation of all users of the new facilities must be considered by the Proponent
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when they address their own issues such as time allocation for work periods and
scheduled changeovers.
Port.
It is understood that the Port is going to be utilized by the Proponent for shipment of
goods to the site. It has already been determined that upgrades and repairs are required.
The concern for the town is that this area is used by residents for recreational purposes
such as boating and sightseeing. There is a great deal of traffic in Terrington Basin with
pleasure boats, float planes and ships. Creative use of space at Terrington Basin needs to
consider the current and future needs of existing users as well as anticipating the
additional requirements resulting from this Project.
(Slide 10 – Issues Affecting the Town: Land Development)
Land Development.
The Town of Happy Valley-Goose Bay encompasses one hundred and twenty-eight
square kilometers. This is an extremely large area to administer and support with a
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workforce of fifty-one utilizing the current tax base. Within our boundaries, over one
third of the land is Crown Land. The municipality does not receive any money through
the sale of this land or recoup any administrative costs that the town incurs in order for
applicants to purchase their land.
With the development of Muskrat Falls being so close to town our population will
inevitably increase. This in turn will create a proportional demand for housing and
associated lots. Furthermore, expansion of existing businesses and the addition of new
economic activity will increase the demand for commercial and industrial land used for
manufacturing facilities, retail space, warehousing, and storage yards.
New land development and zoning issues need to be dealt with in an urgent manner if the
Town is to accommodate the anticipated influx of new residents and businesses. Even
now Happy Valley-Goose Bay is experiencing sustained shortages in housing and rental
units. The Town would like to impress upon the Provincial Government that the
expedited approval by them for the Town’s use of Crown Lands within its boundaries for
municipal purposes is essential. Without such a commitment from the Province the Town
will be challenged to meet its goal of implementing a flexible and timely land
development plan.
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(Slide 11 – Issues Affecting the Town: Emergency Services/Preparedness)
Emergency Services and Preparedness.
The nature and scope of the Lower Churchill Project dictates that all partners involved
develop a comprehensive plan to accommodate the need for increased emergency
services. The Town of Happy Valley-Goose Bay currently has a part-time fire chief, four
full time firefighters, and thirty-one volunteers. We also have one community constable.
Measures must be put in place to ensure the health and safety of our community. This, in
all probability, will increase the need for more staff, equipment and the capital costs
associated with new infrastructure to accommodate these increases.
The Town’s existing Emergency Preparedness Plan will need to be updated to include
any and all potential issues associated with this Project. Continuous updating and
practicing of emergency measures need to be conducted on an ongoing basis. The costs
for emergency preparedness comes not only from costs associated with keeping the plan
current but can entail capital costs as well. For example, in reviewing the “Dam Break
Study,” it has been recommended by Town staff that a secondary evacuation route be
developed. This is a necessary capital cost that will need to be incurred and is project
specific.
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(Slide 12 – Issues Affecting the Town: Socio-Economic)
Socio-Economic Issues.
While the Town has a responsibility to ensure necessary infrastructure is in place to
support required services, it is most important that the well being of our community
members be considered in any anticipated impacts that this project will create. We need
assurances that the benefits to the community will negate any challenges that develop as a
result of this project. Wellness, recreation, educational and training opportunities, job
opportunities and consideration of cultural influences need to be encouraged and
protected. The Town will continue to partner with those organizations responsible within
these sectors to assist in ensuring full cooperation and support from the Proponent of the
Lower Churchill Project.
(Slide 13 – Mitigation Response)
The Environmental Impact Statement provides a great deal of information on how the
Proponent will mitigate issues associated with this development. As previously stated,
the Town has had numerous meetings with Nalcor to discuss our issues and possible
solutions. Our main concern is that the Town be prepared for all future development
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associated with this project and that planning is completed and initiated in a timely
manner to ensure that long-term benefits to the community are realized.
It is apparent that the Town needs additional resources and finances in order to assist in
the mitigation of our infrastructure issues. While the Proponent has indicated in their EIS
the use of a camp situated on site, there will still be significant impacts within our
community due to its proximity. The Proponent and the Province must realize that some
downloading of responsibilities will occur and that the Town will incur significant costs
that they cannot reasonably expect its residents and businesses to bear in the way of
increased taxes. It would be advantageous for all parties that consideration be given to
assist in the financing of these additional costs which are a direct result of this Project.
With the anticipated influx of workers necessary for this project and for spinoff activities
that will be produced as a result of it, a creative solution is required. At this time, 5 Wing
Goose Bay has over 200 housing units that are vacant. Currently, as in the past, some of
these units have been made available for other federal and provincial government
employees to rent. We would ask the Federal Government to again consider making
more of these vacant units available to these personnel, which could, in turn, free up
rental units in the town for others.
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The Town has been reviewing its municipal plan, development regulations, policies and
procedures in advance of this major project. Any issues that arise from this project and
require mitigation efforts will be addressed accordingly with the assistance of the
Proponent, the Province and, if necessary, the Federal Government. We will continue to
deal with day-to-day challenges and to find appropriate solutions to them.
(Slide 14 – Benefits)
It is evident that there will be much to gain financially from this multi-billion dollar
project in our region. Individuals, businesses, social organizations and the town itself
will all benefit through its construction. The future opportunities arising from this Project
will be numerous and will include job training, job creation, expansion to existing
businesses, creation of new businesses, and associated infrastructure development. It will
help sustain us into the future. It will assist in increasing the town’s tax base, which will,
in turn, be reinvested back into the community. However, measures must be taken to
ensure that a “boom/bust” situation does not occur. Long-term benefits resulting from
this project need to be ascertained, committed to, and developed for future generations,
our children and our grandchildren.
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As we move forward it must be kept in mind that this project is a massive construction
job with a defined ending. It is imperative that plans continue for the development of
Gull Island as well. This will help prolong the opportunities available to the workforce
and to local businesses. However, it is the end result of having a hydroelectric generation
facility available that can provide large quantities of sustainable power that will bring the
most benefit to our community. This power will most certainly attract industry which
will provide sustained and continuous benefits. It must be readily available and priced
competitively to draw industry to our area.
(Slide 15 – Conclusion)
There is no doubt that this project will have an enormous affect on our community. It is
an amazing project with many positive opportunities and benefits. This being said, all
potential negative impacts must be considered and every possible means of mitigation or
elimination must be employed. We are confident that the EIS process, the expertise
involved, and the resulting recommendations will ensure that the least amount of
disruption will take place and that future generations will be protected.
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The Town will continue to plan for, and monitor, all aspects of the project that falls under
our jurisdiction. We will continue to ensure that the best interests of the community are
first and foremost with the Proponent and that they remain the priority throughout the
entire process of this development. As the Town prepares for the challenges and
opportunities this project will bring, it is incumbent upon us to ensure that all possible
expectations are met and that full financial support is given to the Municipality as we
move forward.
(Slide 16 – Thank you)
(Slide 17 – Contact Information)
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