Nalcor Energy 2014 Environmental Performance Report by Nalcor Energy

2014 ENVIRONMENTAL PERFORMANCE REPORT

Environmental Policy and Guiding Principles

All Nalcor Energy companies will help sustain a diverse and healthy environment for present and future Newfoundlanders and Labradorians by maintaining a high standard of environmental responsibility and performance through the implementation of a comprehensive environmental management system.

• Include energy efficiency in all elements of asset management and promote energy efficiency for our customers and other stakeholders • Maintain a high standard of emergency preparedness to respond quickly to environmental emergencies.

commitments and activities

• Establish environmental objectives and targets, and

• Use the province’s natural resources in a wise and efficient manner • Recover, reduce, reuse and recycle waste materials when and where feasible 2014 ENVIRONMENTAL PERFORMANCE REPORT

• Periodically report to the Nalcor Board of Directors,

• Audit facilities to assess potential environmental risks of environmental performance

accidental or unavoidable pollution

Association’s Sustainable Electricity Program

and the public on environmental performance,

decision-making of Nalcor companies:

air, water and soil and to reduce the impact of any

regulations, and participate in the Canadian Electricity

IMPROVE CONTINUALLY and to identify opportunities for continual improvement

• Implement reasonable actions to prevent pollution of

• Comply with all applicable environmental laws and

Leadership Team, employees, government agencies,

These principles guide the environmental actions and

PREVENT POLLUTION

COMPLY WITH LEGISLATION

monitor environmental performance • Integrate environmental considerations into decisionmaking processes at all levels

• Monitor compliance with environmental laws and regulations, and quantify predicted environmental impacts of selected activities on the environment • Respect the cultural heritage of the people of the province and strive to minimize the potential impact of company activities on heritage resources.

• Empower employees to be responsible for the environmental aspects of their jobs and ensure that they have the skills and knowledge necessary to conduct their work in an environmentally-responsible manner • Add value by engaging key stakeholders and partners. 2

About Nalcor Energy

Nalcor Energy’s business includes the development, generation, transmission, and sale of electricity; the exploration, development, production, and sale of oil and gas; industrial fabrication; and energy marketing. The company leads the development of the province’s energy resources with a focus on sustainable growth. Nalcor uses a corporatewide framework to facilitate the prudent management of its assets while maintaining an unwavering commitment to the safety of its workers and the public.

NEWFOUNDLAND AND LABRADOR HYDRO

turbines (127 MW). Hydro also has power purchases totaling

Hydro provides safe, reliable and cost-effective electricity to

99.8 MW from sources like Exploits, Star Lake, Vale and

meet current and future electricity needs. Hydro generates

Corner Brook Pulp and Paper. In addition, Hydro has secured

and delivers electricity in Newfoundland and Labrador to

power purchase agreements for 54 MW of wind energy

utility, industrial, residential and commercial customers

on the island—one 27 MW wind project in St. Lawrence

in more than 200 communities across the province.

and a 27 MW project in Fermeuse. Hydro also operates 25 diesel generating and distribution systems (64 MW).

Hydro is the primary generator of electricity in Newfoundland and Labrador. In 2014, the company had

Hydro is focused on strengthening and ensuring the integrity

an installed generating capacity of 1,637 megawatts.

of its core business of power generation, transmission, and

More than 80% of the energy generated is clean,

distribution. The company’s goal of business excellence

hydroelectric generation. Hydro sells its power to

focuses on delivering value to its customers and executing

utility, industrial and 38,000 residential and commercial

its strategy with an uncompromising commitment to

customers in over 200 communities across the province.

safety, environmental stewardship, operational excellence,

There are six lines of business for Nalcor: Newfoundland

The company is committed to operational excellence

its people, and the communities where it operates.

and Labrador Hydro (Hydro), Churchill Falls, Lower

while delivering safe, reliable, least-cost electricity.

Churchill Project, Oil and Gas, Bull Arm Fabrication, and Energy Marketing.

2014 ENVIRONMENTAL PERFORMANCE REPORT

CHURCHILL FALLS Hydro’s generating assets consist of nine hydroelectric

Nalcor’s flagship operation in Churchill Falls is one of

plants (956 MW), one oil-fired plant (490 MW) and three gas

the largest underground hydroelectric powerhouses in 3

the world with a rated capacity of 5,428 MW. In 2014,

OIL AND GAS

project’s two sites at Muskrat Falls and Gull Island have a

approximately 32.2 terawatt hours of clean electricity

Nalcor is a currently a partner in three developments in the

combined capacity of more than 3,000 MW. Phase One, the

was produced, with the majority of that energy sold to

Newfoundland and Labrador offshore: the Hebron oil field,

Muskrat Falls Project, includes construction of an 824 MW

Hydro-Québec through a long-term power purchase

the White Rose Growth Project, and the Hibernia Southern

hydroelectric dam and more than 1,500 km of transmission

arrangement set to expire in 2041. Most of the remaining

Extension. Through its multi-year exploration strategy,

lines that will provide Newfoundlanders and Labradorians

production is used for mining operations in Labrador

Nalcor is accelerating the exploration and delineation

with long-term stable electricity rates as well as serving

West and Hydro’s Labrador Interconnected System.

of the province’s undiscovered oil and gas resources.

as a valuable power-producing asset for generations.

excellence, delivering reliable power to customers, and

LOWER CHURCHILL PROJECT

BULL ARM FABRICATION

ensuring future generations benefit from this world-

The Lower Churchill River is one of the most attractive

The Bull Arm Fabrication site is a world-class facility

class resource through long-term asset management.

hydroelectric resources in North America and is a key

spanning more than 6,300 acres with capabilities for

component of the province’s energy warehouse. The

steel fabrication and concrete construction, outfitting

Nalcor Energy Churchill Falls focuses on promoting safety

installation,

at-shore

hook-up,

and

deep

water

commissioning. The site is an important asset for the development of the oil and gas industry in Newfoundland and Labrador and the advancement of the province’s fabrication capacity. The site is leased by ExxonMobil Canada Properties for the Hebron project until 2017. ENERGY MARKETING Nalcor’s energy marketing portfolio currently includes Churchill Falls recall power that is surplus to Newfoundland and Labrador’s needs, energy sales to industrial customers in Labrador, long-term transmission service arrangements through Quebec, and power sales from the Menihek hydroelectric station. This will continue to grow over the coming years with the development of the Lower Churchill Project and increased production from Nalcor’s offshore oil and gas interests. Nalcor will continue to pursue opportunities to increase the overall value of its energy portfolio. 2014 ENVIRONMENTAL PERFORMANCE REPORT

Message from the CEO

At Nalcor Energy, we focus on effective and

This report addresses the measures we have taken to ensure

environmentally sound practices as part of our promise

we protect our resources and to enhance conservation and

to be environmentally responsible and sustainable.

efficiency; it also presents the outcomes and successes we have created as a result of this effort. In the past year, we

We produce the Environmental Performance Report

have achieved our standard of environmental excellence as

as our record of our environmental commitments,

measured by our ISO certification. We achieved 99% of our

accomplishments, partnerships, and energy conservation

environmental targets and, by 2018, we will produce 98%

activities. The report also allows us to reflect on what

clean energy while almost eliminating our emissions.

we, as individuals, can do in our own lives to sustain a healthy environment for present and future generations of

Our employees use their experience, their knowledge, and

Newfoundlanders and Labradorians.

their commitment to safety in all sectors to help us keep that promise to protect and enhance our environment.

In this 2014 Report, we document our efforts towards

Together, we strive to achieve our companyâ&#x20AC;&#x2122;s vision for

achieving our goal of becoming an environment leader

a strong economic future for the people of our province

in Newfoundland and Labrador. Our strategic directions

and the generations to come. Please read this yearâ&#x20AC;&#x2122;s

focus on accountability, transparency and sustainability in

report and share your thoughts with us as we maintain

environmental protection. Our work combines both continuous

our commitment to our natural environment and its

improvement and implementation of innovative approaches

many resources.

to environmental protection and energy conservation. 2014 ENVIRONMENTAL PERFORMANCE REPORT

Ed Martin, PRESIDENT AND CEO

2014 Highlights

NEWFOUNDLAND AND LABRADOR HYDRO

consist of an operational phase and a commercialization

a program to facilitate the safe and environmentally

The Ramea Wind-Hydrogen-Diesel Project, operated by

phase. Construction activities are expected to begin in

friendly disposal of discarded electronic waste for both the

Hydro on behalf of Nalcor, continued making progress in

Ramea in mid-to-late 2015. Phase II will be funded by the

company and for community residents.

2014. The Wind-Hydrogen-Diesel Energy Project in Ramea

Atlantic Canada Opportunities Agency through the Atlantic

is a research and development project that uses renewable

Innovation Fund and through Nalcor Energy.

energy sources and the Energy Management System

BULL ARM FABRICATION During the fall of 2011, Bull Arm Fabrication signed a six-

(EMS), to supplement the diesel requirements of the

CHURCHILL FALLS

year lease agreement with ExxonMobil Canada Properties

island community. Operation of the EMS and renewable

An ISO 14001 certified Environmental Management

with respect to the use of the site for the construction and

generation sources in Ramea have resulted in a reduction

System guides the work in Churchill Falls; In addition

fabrication of the Hebron Project. During 2014, construction

in diesel fuel consumption.

to celebrating five consecutive years of completing 100

of the gravity based structure moved from the dry dock to

per cent of its environmental targets and milestones, a

the deepwater site; meanwhile, fabrication of the living

This unique project has attracted attention from around

number of significant accomplishments were achieved.

quarters module continued at the topsides area of the site.

the world. Hydro continues to promote the renewable

In 2014, 29 leak repairs were performed on two 735kV

energy and energy storage benefits of the project through

transformers and nine 735kV reactors. For the second

Consistent with Nalcorâ&#x20AC;&#x2122;s corporate policy and guiding

presentations at various workshops and conferences.

year, the transformers remained in service during the

principles, an environmental management framework has

repairs, therefore eliminating the need for interruptions

been developed for the duration of the Hebron Project.

In 2014, preliminary engineering began on Phase II of the

in supplying power. Another significant accomplishment

The framework documents and outlines the systems

project. Phase II is a five-year project that will see the

was the proactive approach employed in Churchill Falls

and processes that provide the primary means by which

addition of a Hydrogen Fuel Cell to the system and will also

to electronic waste recycling. Staff have implemented

Nalcor will ensure consistent environmental management

2014 ENVIRONMENTAL PERFORMANCE REPORT

of the Bull Arm Fabrication site under the terms of the

and the Maritime Link between the island of Newfoundland

Environmental protection plans have been developed for

lease agreement. The framework is another way Nalcor

and Nova Scotia. The clean, stable, renewable electricity

the generation and transmission projects and have been

demonstrates its commitment to a high standard of

will provide an opportunity for the province to meet its

submitted to, and approved by, the provincial government.

environmental responsibility and performance.

own domestic and industrial needs in an environmentally-

Environmental effects monitoring programs were initiated

sustainable way, and also export excess electricity to other

for many environmental components in 2013 and

LOWER CHURCHILL PROJECT

jurisdictions where the demand for clean, renewable

continued throughout 2014.

The lower Churchill River is one of the most attractive,

energy continues to grow.

undeveloped hydroelectric resources in North America and

In January 2014, the projectâ&#x20AC;&#x2122;s environmental team

is a key component of the provinceâ&#x20AC;&#x2122;s energy warehouse.

Nalcor is committed to maintaining a high standard

conducted an annual audit of the EMS and held annual

The two hydroelectric sites at Gull Island and Muskrat

of environmental responsibility that will help sustain

review meetings with all regulators associated with the

Falls will have a combined capacity of more than 3,000

a diverse and healthy environment for generations of

project in preparation for the 2014 field program. Joint

MW. Phase One of the Lower Churchill Project is currently

Newfoundlanders and Labradorians. The company has

Nalcor-Innu Nation environmental management initiatives

under construction. The project includes the 824 MW

implemented an Environmental Management System

are also ongoing, including Innu environmental monitors

hydroelectric generating facility at Muskrat Falls, over 1,500

(EMS) for the Muskrat Falls Project to ensure regulatory

working on site.

km of associated transmission lines in Newfoundland and

compliance and to ensure commitments and conditions of

Labrador linking the island of Newfoundland to Labrador,

environmental assessment are met.

2014 ENVIRONMENTAL PERFORMANCE REPORT

Our People

MANAGEMENT REPRESENTATIVES COMMITTEE

The MR Committee keeps a global watch over the progress

He has gained this reputation over the past 20 years with

Nalcor Energy’s Environmental Management System

and development of Environmental Management Programs

the company and sustains his commitment in his current

(EMS) allows for the management of its environmental

(EMP) within each MA to ensure the overall approach and

position of Environmental Specialist.

affairs and is applied to activities, products and services

philosophy of Nalcor’s commitment to environmental

across Nalcor companies that may have an effect on the

responsibility and responsiveness is upheld every day. The

Rod is viewed by his peers, at work and in the industry,

environment. The Management Representatives (MR)

successful completion of the registration process for ISO

as a true environmental champion and is respected for

Committee oversees the operational management of the

14001 across the company reflects the efforts of Nalcor’s

EMS. Each of the Management Areas (MA) within the EMS

MR Committee.

are represented on the committee. In 2014, the membership of the MR Committee included The MR Committee meets on a regular basis and provides:

Marion Organ, Corporate MA; Rob Bartlett, Hydro Plant

• An open exchange of information, approaches and ideas

Operations MA; Cindy Michelin, Churchill Falls MA; Rod Healey,

related to EMS development and implementation

Services MA; Michael Manuel, Holyrood Generating Station

• A consistent application of company EMS procedures

MA; and Paul Smith, Transmission and Rural Operations MA.

• A single point of communication between the Leadership Team and Management in each MA • A forum for training and mentoring newly appointed Management Representatives.

RECOGNIZING OUR PEOPLE 2014 President’s Award Recipient: Rod Healey Rod is an environmental leader and exemplifies the principles of sustainability and environmental stewardship.

2014 ENVIRONMENTAL PERFORMANCE REPORT

Rod Healey, Team Lead Environmental Services, 2014 President’s Award for Environment 8

his dedication to the environment. Currently, he leads the

Churchill Falls who actively displays environmental

development and growth of the corporate Environmental

protection and leadership.

Management System and provides support for all lines of business. He also stewards the auditing process, which is

The recipient of the Environmental Stewardship Award for

a key component of the program’s success. Regardless of

2014 was Nancy Dionne. Nancy has been sharing plenty of

what environmental initiative Rod is working on, he treats

green ideas since she moved to Churchill Falls from Prince

everyone around him with respect and this leads employees

Edward Island in 2013. Nancy exhibits her commitment to

to seek out his expertise on other environmental issues.

the environment daily through leadership and example.

Rod truly believes in what he does and carries his passion

She recycles and reuses household items whenever

for the environment in his personal life as well. He bikes to

possible, buys in bulk and online, conserves energy at

work, recycles, composts, conserves energy, and takes on

home and the workplace, and regularly participates in

tasks like coordinating Environment Week at work because

the community beverage container recycling program.

he truly believes in the environment and sustainability.

However, this is just the tip of the iceberg of her many

Nancy (left) proudly accepts an Environmental Stewardship Award from Cindy Michelin (right, Environmental Coordinator.

contributions. Nancy also promotes environmental All lines of business have seen the effect of Rod’s

protection to children by teaching and encouraging them to

environmental priorities, and he is recognized as a leader

respect the environment and to practice waste reduction.

due to his dedication and conscientiousness. Rod is an

Nancy was also a member of the 2014 Environment Week

example of what all employees should aim for to improve our

Committee. She helped plan and organize workplace and

environment. His passion for the environment is engrained in

community events in efforts to promote environmental

his personal values, as he lives them on and off the job.

awareness for all ages.

“If there were a BeSafe program for the environment,

At a very young age, Nancy learned to avoid wastefulness

Rod would be the author and his picture would be on

and to value being environmentally friendly. She has

all the posters.”

lived in both Montreal and Summerside, two cities which

–Scott Wilkins, Internal Auditor III

have mandatory compost, deposit return, and recycling programs. Living in these two cities only helped grow her

2014 Churchill Falls Environmental Award: Nancy Dionne

commitment to the environment. She is inspired by her

Churchill Falls holds Nalcor’s commitment to the

two sons and wants to be a good role model for them,

environment in high regard. Since 2010, the Environmental

in teaching them both about the many ways we can be

Stewardship Award is presented to an individual in

environmentally responsible and effective.

2014 ENVIRONMENTAL PERFORMANCE REPORT

Here is Nancy volunteering during this year’s Environment Week at Churchill Falls. 9

Environmental Management Systems

Nalcor Energy has chosen the ISO 14001 certified EMS to drive the continual improvement of the company’s environmental performance. An EMS provides a management framework

CORPORATE

Input Output

Senior Leadership Team

for an organization’s environmental responsibilities and is an integral component of the organization’s business

MR Committee

operations. The EMS governs the environmental activities in Nalcor’s electricity businesses, Hydro and Churchill Falls. Nalcor is committed to the use of the EMS for its other lines of business. The six designated MAs within Nalcor manage their

OPERATIONAL MANAGEMENT AREAS Services Service input to Operational Management Areas

Thermal Plant Operations

Hydro Generation

Churchill Falls

TRO Operations

environmental aspects through the EMS (Figure 1). Each EMS is certified and registered by an independent Registrar, Quality Management Institute (QMI – SAI Global).

Figure 1: Structure of Nalcor Energy’s Environmental Management System

More information can be found at www.qmi-saiglobal. com. Nalcor has undertaken a comprehensive and phased

While the company made progress in reducing its impact on

leader. Throughout the year, Nalcor continued tracking

approach to environmental management within the

the environment in 2014, Nalcor will continue to develop

and reporting EMS performance to the Leadership Team

company, and it has registered and maintained EMSs at its

long-term plans to achieve its environmental targets and

and achieved 99 per cent completion of EMS targets

six existing MAs over the period since 1999.

corporate environmental goal — to be an environmental

and milestones.

2014 ENVIRONMENTAL PERFORMANCE REPORT

EMS programs developed under the EMS cover a broad

are managed independently, a common and consistent

The following objectives are reviewed annually and

range of areas:

Corporate Environmental Policy and Guiding Principles set

are established to support Nalcor’s environmental goal —

• Alternative energy and conservation

the standard for all Nalcor companies. Periodic reviews of

to be an environmental leader:

• Emissions control; waste management and recycling

activities and issues are conducted to ensure consistency

• Complete or exceed 95% EMS Targets;

• Spill prevention and management

with corporate standards.

• Reduce Holyrood emissions per unit of energy delivered

• Environmental site assessment and remediation

by achieving less than10.0% variance from N-1 ideal; TO BE AN ENVIRONMENTAL LEADER

• Species and habitat diversity.

• Achieve through Hydro managed CDM programs, 1.06

Nalcor developed a corporate strategy, which sets the stage

GWh (1.45 GWh) of energy savings in the residential and

These systems include specific performance measures and

for environmental performance and guides the direction of

commercial area;

a commitment to continual improvement. For example,

all Nalcor companies including the development of goals,

to support energy conservation, Hydro has a target to

objectives and targets for each.

• Conduct an evaluation of Industrial Energy Efficiency Program (IEEP) and develop multi-year plan;

achieve 400 MWh of annual energy saving through the energy efficiency program. During 2014, 1,081 residential and business customers benefited from the direct, free installation of energy efficient technologies with a total annual energy savings of 1,357 MWh, which greatly exceeded their 2014 target. Additional

accomplishments

resulting

from

the

Environmental Management Plan in each of the Management Areas in 2014 follow. CORPORATE MANAGEMENT AREA The Corporate MA consists of the Leadership Team and a committee of managers with responsibilities for facilities and operations with environmental aspects. The goal of this MA is to co-ordinate the development and maintenance of the overall EMS for Nalcor and to identify environmental aspects appropriate to the Leadership Team’s activities and responsibilities. Although the operational and services EMS 2014 ENVIRONMENTAL PERFORMANCE REPORT

• Achieve 0.35 GWh (6.30 GWh) of energy savings through Hydro’s internal energy efficiency programs.

Sustainable Electricity is comprised of the following four elements: 1. CEA utilities must commit to the Policy for Sustainable

From these objectives, targets were set in each line of business in 2014.

Development – Corporate Responsibility. 2. CEA utilities must report annually on environmental, social, and economic performance indicators.

SUSTAINABLE ELECTRICITY Hydro and Nalcor Energy Churchill Falls are members of the Canadian Electricity Association (CEA) and are active participants in the Sustainable Electricity program.

3. The program will be guided by an external Public Advisory Panel. 4. Each utility must undergo independent external verification as part of its commitment to the program.

Launched February 19, 2009, Sustainable Electricity is an industry-wide sustainability initiative developed and

Through the Sustainable Electricity program, CEA member

implemented by CEA and its utility members.

companies will pursue practices and innovative business strategies to meet the needs of members, Aboriginal

Sustainable Electricity is a response to the challenge

peoples, stakeholders, and the communities in which they

of creating a sustainable tomorrow. The program,

operate, while ensuring that they enhance the legacy they

implemented under the strategic guidance of the CEA

leave behind for future generations. Hydro and Nalcor

Board of Directors, addresses the three components of

Energy Churchill Falls are committed to becoming leading

sustainability – environment, society, and the economy

Sustainable Electricity companies.

– and enables the electricity industry to take a holistic approach to managing its impacts and securing a collective

SERVICES MANAGEMENT AREA

energy future.

Environmental aspects are an element of a department’s activities, products, or services that can interact with

CEA and its members place a high value on sustainable

the environment. Currently, there are five departments

development, and as such, participation in this program

within the Services MA that have identified environmental

is a condition of CEA membership. Through Sustainable

aspects. These groups include Systems Operations and

Electricity, CEA members, including Hydro, have made

Planning, Corporate Relations, Project Execution and

a commitment to continually improve their overall

Technical Services, Supply Chain Management and

sustainable development performance, and report to

Environmental Services.

stakeholders in a timely and transparent manner. 2014 ENVIRONMENTAL PERFORMANCE REPORT

OPERATIONAL MANAGEMENT AREAS THERMAL The Holyrood Thermal Generating Station is a 490 megawatt (MW) plant located in Holyrood, Conception Bay. The Holyrood plant’s EMS was initially registered in January 1999; Holyrood continues to maintain registration. In 2014, the Holyrood Thermal Generating Station completed 20 environmental targets which resulted in the following improvements: • Reduced waste through a new fluorescent tube recovery program • Improved marine terminal operations and spill mitigation through terminal operation training • Improved energy efficiency with the installation of programmable thermostats in out-buildings In 2014, the Services MA managed 13 environmental

• Upgraded all parking lot lighting at Hydro Place to LEDs

• Improved marine terminal operations and

management programs. Some results included:

• Converted half of the toilets and urinals in the building

spill mitigation through completed marine

• Controlled release of over 150 million cubic metres of water from reservoirs, as part of long-term agreements

to hands free • Increased awareness about and the amount of green

with the department of fisheries and oceans for fish and

office supply products being purchased (If available and

fish habitat protection

suitable) at Hydro Place

• Completion of a Marine Environmental Effects Monitoring study and Calpuff dispersion modeling at the Holyrood Thermal Generating Station • Investigated and documented the potential to use Variable Frequency Drive (VFD) technology to reduce station service and diesel consumption at our diesel generation sites • Total annual energy savings of 1,357 MWh by installing

• Prioritization of locations for new Meteorological Gauges in our hydroelectric system • Continuation of a program to optimize the HVAC system at Hydro Place • Continued the development of EMSs for new lines

terminal upgrades • Improved stack emissions monitoring through the installation of a new opacity monitor • Analysed general service cooling water system for opportunities to reduce water consumption • Completed research required to complete an environmental effects monitoring paper for the station • Analysed main cooling water system for opportunities to reduce energy consumption.

of business. HYDRO OPERATIONS

energy efficient technologies with residential and

The Bay d’Espoir MA consists of seven generating stations

commercial customers

on the island, with a total installed capacity of 939 MW. In

2014 ENVIRONMENTAL PERFORMANCE REPORT

2014, some of the Environmental Management Program

• Reduced the risk of spill/leaks to the environment

transmission lines, an airport and the Town of Churchill

results included:

through the continued replacement of Diesel Plant fuel

Falls. Environmental aspects of these facilities are included

• Opportunities for the implementation of energy efficiency

tank(s) and Distribution transformers

in the EMS. The environmental aspects of the former Twin

and conservation applications, such as replacing old in

• Continued testing/documentation of electrical equipment

Falls Hydroelectric Generating Station are also managed

candent light fixtures and lights with LED fixtures/lights in

potentially containing Polychlorinated Biphenyls (PCBs)

through the Churchill Falls EMS. The EMS was registered

locations throughout Hydro Generation facilities

and the implementation of a 15-year replacement plan

in 2000 and successfully completed a re-registration audit

for sealed equipment

in 2014.

• Development and implementation of an Environmental Management System for the Star Lake generating facility and integration into the Hydro Generation EMS • Emergency response mock test exercise to evaluate

• Continued to recycle/reuse 100% of salvageable material at TRO • Continued to conduct trials of new products or new

Environmental targets and programs were developed at Churchill Falls as part of the EMS. Some results of 2014

competency, equipment, and level of employee training/

rates with existing products with the potential to reduce

targets were:

awareness

herbicide use

• 100% completion of 21 environmental management

• Improvement in Emergency Response Plan to the effect

• Completed education of staff and contractors with

of streamlining documentation and procedures to align

respect to Standard Operating Procedure (SOP)-51 Bird

with existing plans and processes.

Nest Avoidance with full implementation of SOP-51 including use of Bird Nest Assessment Forms

TRANSMISSION AND RURAL OPERATIONS (TRO)

• Conducted trials of new fibre glass poles with the

The TRO division operates three gas turbines, three 100

potential to reduce use of wooden poles around

kW wind turbines, three interconnected diesel generating

environmentally sensitive areas

stations, and 22 isolated diesel generating and distribution

• Identified a facility in each region for ceiling

systems. Hydro also maintains 54 high-voltage terminal

mounted electric fan heaters and installed automatic

stations, 34 lower-voltage interconnected distribution

temperature set back controls. The facilities

substations, 3,743 km of interconnected high-voltage

retrofitted included the Bishop’s Falls Carpenter shop,

transmission lines, and 3,427 km of distribution lines.

Happy Valley Goose Bay Terminal Station control building, and Port Saunders warehouse.

In 2014, significant EMS programs completed in TRO

system targets • Developed and implemented an Electronic Waste Shipping for Recycling procedure • Completion of the design to refurbish the Town Sewage Treatment Plant such that effluent will meet provincial and federal discharge criteria • Improved powerhouse sump Preventative Maintenance (PM) to reduce the risk of oil releases • Improved refrigeration PMs and contract work to reduce the risk of halocarbon releases • Completed an environmental condition trends analysis report with recommendations for corrective actions • Performed extra work on unit A7 turbine to reduce oil loss • Continuation of a multi-year program for reduction of oil

included:

CHURCHILL FALLS

leaks from switchyard transformers by repairing leaks

• Implemented a five year inspection of TRO Labrador

The Churchill Falls Hydroelectric Generating Station has

on transformers

Tanks by authorized Inspector in accordance with API 653

an installed capacity of 5,428 MW. Associated with this

• Continuation of a multi-year contaminated lands program.

development is approximately 1,200 km of high-voltage 2014 ENVIRONMENTAL PERFORMANCE REPORT

ENVIRONMENTAL MANAGEMENT SYSTEMS FOR THE NEW LINES OF BUSINESS

for its current structure and business needs. In 2014, Oil

Menihek Hydroelectric Generation Station and Exploits

and Gas moved forward with the development of the EMF

Generation are in the final stages of implementing an ISO

Nalcor has decided on a staged approach to developing

and pertinent internal procedures to ensure a high level of

14001:2004 consistent EMS. In 2014, both Menihek and

and implementing an EMS across the new lines of

Environmental Management for its operations.

Exploits continued to work towards having an EMS in place

business. The new operating facilities and lines of business

and ready for an independent audit review in 2015.

for which EMS requirements are being developed include:

Bull Arm Fabrication leveraged its Environmental Management

Oil and Gas; Bull Arm Fabrication; Menihek Hydroelectric

Framework (EMF) to ensure a more cohesive management

Star Lake Hydroelectric Generation Station is incorporated

Generating Station; Exploits Generation; and Star Lake

process between Bull Arm Fabrication and Exxon Mobile

into the existing EMS for Hydro Generation. In 2014, issues

Hydroelectric Generating Station.

Canada Properties. In 2014, Environment Services and the Bull

identified during the independent internal EMS review

Arm Team completed a management review of the EMF with

were addressed.

In 2013, Oil and Gas decided that an Environmental

a focus on ensuring consistency between the sublease and

Management Framework (EMF) would be most suitable

EMF, and other operational improvements.

2014 ENVIRONMENTAL PERFORMANCE REPORT

Emissions

WASTEWATER CONTROL

to secure the transmission supply into the Avalon Peninsula,

from 2013. This is primarily due to an overall increase in

The Holyrood Generating Station’s wastewater treatment

between 10 and 20 per cent of the island’s electricity

customer demand. This was driven by colder temperatures

plant treats the wastewater resulting from the combustion

continues to come from fossil-fuel fired generation at the

and increased utility requirements, as well as increased

of fuel and run-off from an on-site solid waste landfill.

Holyrood Generating Station each year. Hydro also operates

industrial requirements, primarily relating to the ramp

Components of the wastewater are measured and

25 diesel plants across the province and three wind turbines

up of operations at the Vale nickel processing facility.

compared to regulatory limits. Once all aspects of the

in the isolated community of Ramea.

The Holyrood plant produced 19 per cent of the energy

wastewater meet provincial regulatory requirements, it is

supplied by Hydro in 2014, up from 14 per cent in 2013.

released in the plant’s cooling water discharge and into

The company continues to use alternative sources of

The increased energy production from the Holyrood plant

Conception Bay. In 2014, 4.8 million litres of wastewater

energy supplementing the province’s energy supply and to

in 2014 resulted in a 37.7 per cent increase in carbon

were treated and discharged, an increase from 2013 levels.

reduce emissions from burning fossil fuels. In 2014, Hydro

dioxide (CO2) emissions. The increase in CO2 emissions is

This was likely related to increased air heater washes, as

purchased 178,123 megawatt hours of clean energy from

directly attributed to more fuel being consumed.

landfill run-off was comparable to 2013 amounts.

the island’s two wind farm projects. That is enough green energy to power more than 8,800 average single-detached

Energy received into the system decreased by more than

AIR QUALITY MANAGEMENT

homes with electric heat. This is equal to burning 283,000

five per cent in 2014, mainly due to reduced generation

Hydro has a mandate to meet the province’s growing

barrels of oil at the Holyrood plant, and is a reduction of

from the Nalcor Exploits units, as well as at Star Lake.

electricity needs. In 2014, on the Island Interconnected

nearly 148,000 tonnes of greenhouse gas emissions.

Generation from the wind projects and the Corner Brook

System, approximately 78 per cent of this electricity was

Pulp and Paper (CBPP) co‐generation unit were also

generated from clean hydroelectric power. However, in

Overall, thermal production at the Holyrood Generating

lower in 2014. The overall decrease was partially offset by

order to meet the total customer demand requirements and

Station increased significantly in 2014, by 36.7 per cent

increased energy receipts from CBPP and Newfoundland

2014 ENVIRONMENTAL PERFORMANCE REPORT

Power standby generation, as a result of Hydro’s generation supply issues experienced in the first quarter of 2014. Overall, energy supply requirements increased by 4.2 per cent in 2014, primarily due to higher utility and industrial customer requirements. Hydro’s hydroelectric production in

ANNUAL CO2 EMISSIONS

2014 was close to the level experienced in 2013, lower by only 0.6 per cent.

6,000

2,000

Total emissions for CO2, nitrogen oxides (NOX) and Sulphur

1,800

Dioxide (SO2) for the Holyrood Generating Station, gas

5,000

1,600

are calculated using formulas approved by the Department air emissions are dominated by those resulting from production at the Holyrood Generating Station. Emissions of CO2, NOX and SO2 for the Isolated Diesel System, Labrador Interconnected System, and Island Interconnected System were calculated to be approximately 1,153.24, 4.35 and 4.71 kilotonnes respectively in 2014.

1,400

4,000

1,200 1,000

3,000

800 2,000

600

Emissions (kilotonnes)

of Environment and Conservation. Nalcor’s overall

Hydraulic Production (GWh)

turbine facilities and isolated diesel generating stations

400

1,000

200

Emissions for the Island Interconnected System includes emissions from Holyrood Thermal, Hardwoods GT, Holyrood GT, Stephenville GT, St. Anthony Diesel and Hawkes Bay Diesel as obtained from the Annual Air

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Hydraulic Production

Island Interconnected Emissions

Emission Report. Net Hydraulic Production includes BDE, USD, GC, HL, CA, PR, Snook’s Arm, Venam’s Bight, Roddickton Mini (Menihek is excluded) as obtained from System Operations. Emissions and hydraulic production are depicted in the following graphs:

2014 ENVIRONMENTAL PERFORMANCE REPORT

ANNUAL NOX EMISSIONS 6,000

ANNUAL SO2 EMISSIONS 5.0

6,000

4.5 5,000

3.5 3.0 2.5

3,000

2.0 2,000

1.5 1.0

1,000

14 12

4,000

10 3,000

8 6

2,000

4 1,000

0.5 0

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Hydraulic Production

2014 ENVIRONMENTAL PERFORMANCE REPORT

Island Interconnected Emissions

Emissions (kilotonnes)

4,000

Hydraulic Production (GWh)

4.0

Emissions (kilotonnes)

Hydraulic Production (GWh)

5,000

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Hydraulic Production

Island Interconnected Emissions

Waste Management

POLYCHLORINATED BIPHENYLS (PCBs)

In 2014, Hydro continued with a program to test oil-filled

had a PCB concentration of 500 mg/kg or greater. They

PCBs are the most significant waste management issue

equipment that is not sealed such as reclosers, voltage

were all OCB bushings and all three were taken out of

for electrical utilities. This substance was commonly used

regulators, tap changer compartments, oil circuit breakers,

service and stored in the approved PCB Storage Building

in electrical equipment prior to the late 1970s, when PCB

and station service transformers.

at Bishopâ&#x20AC;&#x2122;s Falls.

production was banned. The effect of this ban on Hydro and many other utilities was two-fold. The amount of PCB

Federal PCB Regulations brought into effect in 2008 focused

equipment in-service declined as new PCB-free equipment

on removal of higher concentration PCB equipment from

was installed, and inventories of PCB-contaminated wastes

service by planned dates, and more restrictive handling

increased as older equipment was retired.

of PCB waste. The limit for identifying high-concentration PCBs was also lowered to any equipment having a PCB

Hydro has had a PCB management program in place since

concentration greater than 500 mg/kg.

the early 1980s to reduce the risks associated with inservice equipment containing PCBs. The earlier focus of this

In 2014, Hydroâ&#x20AC;&#x2122;s Transmission and Rural Operations (TRO)

program was to remove all items with high-concentration

Division continued to follow their PCB phase-out plan for

(greater than 10,000 milligrams per kilogram (mg/kg)) PCB

sealed equipment that was submitted to Environment

equipment from service and to reduce the concentration of

Canada in 2010 under a Section 33(2) extension permit.

PCBs in larger volume oil filled equipment to less than

Each year there are slight revisions to the plan as work

50 mg/kg.

priorities change. In 2014, TRO discovered three pieces of sealed equipment, under the extension permit, that

2014 ENVIRONMENTAL PERFORMANCE REPORT

Nalcor Energy Churchill Falls (NE-CF) continued to refine its PCB phase-out program in 2014. Additional equipment and information was added to its database to ensure that all

PCB Material in Storage, Sent for Disposal and Destroyed (Bishop’s Falls PCB Waste Storage Facility)

2014 KG

2014 Litres

Total inventory of PCB material (50-500mg/kg) in storage

520

132

Total inventory of PCB material (>500mg/kg) in storage

225

Total inventory of PCB material (50-500mg/kg) sent for disposal

6127

1229

Total amount of PCB material (50-500mg/kg) destroyed

7878

748

Total amount of PCB material (>500mg/kg) destroyed

1514

244

equipment 50 mg/kg and greater PCBs are removed from service by 2025. NE-CF continued with its annual PCB training program, with minor updates, for all personnel handling and transporting

Total inventory of PCB material (>500mg/kg) sent for disposal

PCBs. The program ensures that all personnel are aware of the requirements under the TDG Regulations, PCB Regulations, Storage of PCB Wastes Regulations, Certificate of Approval for the PCB Storage Building, Equivalency Certificate and local EMS Standard Operating Procedures.

Table 1: PCB material in storage, sent for disposal and destroyed as of December 31, 2014 at Bishop’s Falls.

Nalcor Energy submitted its sixth year of online PCB reports under the PCB Regulations for the year 2014 for the Bishop’s Falls PCB Storage Facility and the Churchill Falls PCB Storage Facility. Hydro operates one approved PCB waste storage facility at its Bishop’s Falls area office and inventory storage yard. See Table 1 for PCB material in storage, sent for disposal

PCB Material in Storage, Sent for Disposal and Destroyed (Churchill Falls PCB Waste Storage Facility) Total inventory of PCB material (50-500mg/kg) in storage Total inventory of PCB material (>500mg/kg) in storage Total inventory of PCB material (50-500mg/kg) sent for disposal

2014 KG

2014 Litres

350

415

525

933

and destroyed as of December 31, 2014 at the Bishop’s Falls PCB Waste Storage Facility. Churchill Falls operates one approved PCB waste storage facility. Table 2 provides an inventory of PCB material in storage, sent for disposal and destroyed as of December 31, 2014. 2014 ENVIRONMENTAL PERFORMANCE REPORT

Total inventory of PCB material (>500mg/kg) sent for disposal Total amount of PCB material (50-500mg/kg) destroyed Total amount of PCB material (>500mg/kg) destroyed

Table 2: PCB material in storage, sent for disposal and destroyed as of December 31, 2014 at Churchill Falls. 20

REUSE AND RECYCLING INITIATIVES USED OIL

Location

Used Oil Type

Volume (litres)

Diesel Plants

lubricating oil

50,301

Hydroelectric Generating Stations

lubricating oil

23,450

Holyrood Generating Station

waste/bunker/lube oil

12,700

Holyrood Generating Station

oil/water mixture

250,108

Bishop’s Falls

insulating oil

105,014

Churchill Falls

lubricating and insulating oil

26,015

Churchill Falls

oil/water mixture

73,456

Exploits Generation

lubricating oil

Menihek Generating Station

lubricating oil

Menihek Generating Station

Insulating oil

Nalcor has a waste oil management system for handling and disposing of used oil. On an annual basis, facilities record the amounts of used oil generated and new oil purchased. Used oil is stored in either 205-litre drums or storage tanks and collected by a certified waste oil handler for either recycling or reuse. Table 3 summarizes used oil information by location, used oil type, and volume collected. At Hydro’s central maintenance facility in Bishop’s Falls, insulating oil from transformers is brought in for servicing. It is collected in oil storage tanks and processed for recycling, if suitable. If the quality of the oil is not suitable for recycling or reuse, the oil is collected by a certified waste handler for proper disposal. In 2014, 105,014 litres of insulating oil from transformers was brought to site. 98,960 litres of this oil was reused or recycled and only 6,054 litres was disposed of as waste. This represents 62 per cent reuse of insulating oil at the central maintenance facility in 2014. WOOD POLE LINE MANAGEMENT PROGRAM As part of its transmission line network, Hydro manages thousands of poles of varying age. Wooden poles have an in-service lifespan of 50 years and with proper management, maintenance and refurbishment the life can be extended by 10 years or more. Core samples taken from some poles in 1998 indicated that the preservative 2014 ENVIRONMENTAL PERFORMANCE REPORT

Table 3: Volumes and types of used oil collected by location. 21

retention level was not adequate. As a result, Hydro

This program contributes to environmental protection

initiated a Wood Pole Line Management Program in

through:

2003 and it is expected to continue as a long-term asset

• Recovery of valuable resources such as precious metals

management and life-extension program. In 2014, Hydro treated 1,954 poles with boron rods to provide extra protection and to extend the in-service life expectancy of new poles. Since the start of the program, about 26,386 poles have been treated.

and plastics • Reducing the environmental impact and energy demand from mining and manufacturing new materials • Diverting waste from landfills and reducing the chance of toxic heavy metals (e.g., lead, nickel and mercury) from entering soil and groundwater.

FUEL ASH DISPOSAL AT HOLYROOD GENERATING STATION During 2014, all fuel ash produced at the Holyrood

SCRAP METAL AND BATTERY RECYCLING AND REUSE

Generating Station was disposed of in an on-site,

During 2014, Hydro decommissioned 571 distribution

controlled, solid waste landfill. The amount of total ash

transformers, all of which contained non-PCB oil. The

produced and disposed of at the landfill in 2014 was

transformers were drained and sold to a transformer

310 tonnes.

manufacturer for reuse.

ELECTRONIC WASTE RECYCLING AT CHURCHILL FALLS

In 2014, the company undertook upgrades to the various

Recycling electronic waste (e-waste) provides an

battery bank system within Exploits Generation. The

environmentally sound alternative for the disposal of

systems in Bishop’s Falls and Millertown were replaced,

electronics. E-waste includes computers, TVs, printers,

while the two systems in Grand Falls were replaced with

audio/video systems, and many other devices. Nalcor

one system. A total of 204 batteries, both sealed gel and

Energy Churchill Falls (NE-CF) now recycles e-waste that

lead-acid, were disposed of using an approved waste

is not being auctioned or sent to a third party for re-use.

handling company for recycling.

For example, some electronics are offered to schools for re-use. In 2014, NE-CF took a pro-active approach and

STOP-LOG REPLACEMENT PROGRAM

implemented an internal procedure to facilitate e-waste

The Menihek Generating Station uses three spillway gates

recycling. Blue bins were placed in strategic areas to enable

and 17 sluice bays to manage reservoir levels during high

employees and town residents to drop off their wastes. NE-

in-flow conditions. The sluice bays consist of multiple

CF then arranges for shipment to the provincially provided

wooden stop-logs that can be removed with the aid of

electronic waste recycling depot.

a mechanical hoist. The majority of the existing stop-logs

2014 ENVIRONMENTAL PERFORMANCE REPORT

is original to the plant construction (1954) and they are

due to problems with wildlife, particularly black bears.

constructed of creosote timber. There are approximately

Transporting waste to the landfill in the neighboring

TOWN OF CHURCHILL FALLS SEWAGE TREATMENT PLANT UPGRADES PROJECT

170 stop-logs in total, each measuring 0.4 m high, 0.4 m

community of Schefferville is not practical as the

In 2014, Nalcor Energy Churchill Falls retained a consultant

wide, and 6.0 m long.

45 km gravel access road is not passable during winter

to complete the conceptual design to refurbish the Town

months. Establishing a landfill site near Menihek is not

Sewage Treatment Plant to ensure that the effluent

A multi-year program to replace the existing stop-logs

a viable option due to the high water table and the lack

meets provincial and federal discharge criteria. This

began in 2014, with five of the 17 sluice bays being

of overburden.

was accomplished beginning with a plant infrastructure condition assessment, along with the collection of

replaced. The new stop-logs are constructed of untreated timber. The remaining stop-logs are to be replaced in

Incineration was chosen as the preferred method for

effluent quantity and quality data. It was apparent

2015-2016. The existing stop-logs were transported to

the disposal for unsorted domestic waste (food waste,

that improvements were required to meet discharge

a certified facility that stores, grinds, and processes

packaging, etc.). In 2014, the regulatory approval,

limits for bacteria and total suspended solids. Also, it

treated wood in a biomass co-generation plant.

installation, and commissioning of a low emissions

was confirmed that the plant, which was built in the

Approximately 60 metric tonnes of treated wood was

incinerator was undertaken. The incinerator provides the

late 1960s and was designed to receive storm water,

disposed of in 2014.

ability to incinerate domestic waste as it is produced

is hydraulically overloaded. As a result, a conceptual

(typically daily) thereby eliminating the need for storage

design for a bypass and disinfection unit as well as other

DOMESTIC WASTE INCINERATOR

on site. Construction related debris and recyclable

upgrades were completed.

The Menihek Generating Station is a remote site, which

materials are collected in dedicated storage/shipping bins,

leaves very few options when it comes to on-site waste

or appropriately packaged for transport and then shipped

Some plant upgrades were completed in 2014. The

management. There is no storage for waste on site

via train to Sept-Iles, Quebec for disposal.

remainder of plant upgrades will be completed in 2015.

2014 ENVIRONMENTAL PERFORMANCE REPORT

Spills and Other Incidents

The very nature of Hydro’s work to generate and transmit electricity requires the safe handling and use of a variety of potential environmental contaminants such as fuel oils, lubricating oils, and chemicals. Each year, Hydro uses about 300 million litres of fuel to generate electricity. The company strives to reduce the potential for leaks and spills.

Nalcor’s lines of business had a total of 19 reportable oil spill and leak incidents in 2014: Hydro reported 10; Churchill Falls reported three; Bull Arm Fabrication reported three; and Non-Regulated (Exploits and Menihek) reported three. The approximate volume for all reportable spills was 18,924 litres. In addition, Hydro reported a 20-kilogram release of refrigerant, Bull Arm Fabrication reported a 180,000-litre release of wastewater, and Non-Regulated reported a 300-litre release of wastewater.

Being prepared for such an incident is critical to mounting a quick and effective response that will reduce negative

In all incidents, staff responded promptly to the spills

effects on people and the environment. Nalcor Energy

and leaks with spill response equipment. Staff collected

and its lines of business have developed Environmental

the contaminated materials in suitable containers for

Emergency Response Plans (EERPs) to deal quickly,

appropriate disposal, and where necessary, staff also

effectively and safely with such incidents. All personnel

undertook appropriate sampling to ensure adequate

who handle or work around petroleum products receive

clean-up was completed. In some incidents, we engaged

training related to the EERP and, where applicable, specific

independent site professionals to manage the spill clean-

operating procedures have been developed to facilitate

up, soil sampling, and spill closure. Table 4 outlines the

the safe handling of the products used.

details of Nalcor’s more significant spill incidents.

2014 ENVIRONMENTAL PERFORMANCE REPORT

Date

Location and Source

Volume

Response/Status

1200 L

Stopped the leak immediately. Repair and clean-up completed the following morning. The water/unifoam solution contained a total of between 3 and 6 litres of Ethylene Glycol.

January 14

Nalcor Energy Churchill Falls. During their nightly rounds, a fire and security officer discovered that fire suppression foaming agent was pooling below the tanks located in the CF Hangar.

January 15

TRO. T1 in Sunnyside Terminal Station experienced a fault which started an internal fire. The transformer was on fire for three (3) days before it was extinguished.

16,032 L

The initial spill response and remedial area covered an area approximately 1500 m2. There was an estimated 171 tonnes of material removed during the initial response, along with 10,788 litres of water (snow melt) and recovered oil. The capital work was completed following the initial remediation.

July 30

TRO. Diesel System Representative operator noticed an oil sheen in the water underneath the main storage tank area. Source unconfirmed.

Minimal Quantity

Put out containment boom. Checked for leaks but none were found. Proceeded with clean-up using absorbent pads. A work order was created to inspect the system. No further discharges were observed.

Table 4: Details of Nalcorâ&#x20AC;&#x2122;s more significant spill incidents.

TRO OIL SPILL TRENDS ANALYSIS

employees identify trends, they will consider and implement

incidents, TRO Asset Managers will reinforce and promote

Nalcor continues to focus on eliminating spills and leaks

preventative actions to address the concerns.

the inspection and monitoring of oil filled equipment for

from its fuel storage systems, and its operating and electrical

leaks. TRO has also identified trends from leaks and spills

equipment. Employees maintain detailed information

For example, in Hydroâ&#x20AC;&#x2122;s TRO Division in 2014, the identified

from oil filled distribution equipment and has a program

related to reportable and non-reportable spills and leaks

trends were weeps and leaks from oil filled equipment

for the identification and replacement of these units in a

and these are reviewed annually for trends and concerns. If

in terminal stations. To help prevent these types of

timely manner.

2014 ENVIRONMENTAL PERFORMANCE REPORT

Environmental Site Assessment (ESA) and Remediation In 2000, Hydro implemented an ESA program for all properties it owns or operates.

The objectives of the ESA program are to:

• Groundwater monitoring completed (2 sites)

• Evaluate the potential for environmental contamination

Nalcor continued its Phase II Environmental Site Assessment and associated human health and ecological risk screening

• Conduct sampling to characterize and delineate contamination

In 2014, the Nalcor Energy Churchill Falls ESA program

assessments on the various Exploits Generation properties

• Assess the potential risks and liabilities associated with

continued at six sites (three sites were located in remote

located throughout central Newfoundland and Labrador in 2014.

any contamination identified

areas, while the other three sites were located within close

• Identify sites requiring monitoring or remediation

proximity to the town site) with the following highlights:

Nalcor’s ESA program continues to be successful identifying

• Develop and implement remediation programs if necessary.

• ongoing ground-water monitoring and free product

and managing the potential environmental contamination

recovery (4 sites) In 2014, Hydro initiated a new professional services contract which saw a change in the consultant executing the ESA

• additional delineation with monitoring well installations (2 sites)

program. The following work was completed as part of the

• surface water and sediment sampling (3 sites)

Hydro ESA program:

• surface soil sampling (3 sites)

• Document review to assess work already completed at 6

• human health and ecological risk screening assessment

sites and verify the recommendations for additional work

(1 site)

moving forward • Document review of Phase I Environmental Assessment

The Twin Falls assets ESA program began at the Wabush

reports and work plan development for 7 NLH sites which

Terminal Station (phase I, phase II, and hazardous materials

recommended intrusive Phase II work based on actual or

study) and at three abandoned camps on the 230 kV

potential contamination identified during Phase I ESA.

transmission line (phase 1 and phase II).

2014 ENVIRONMENTAL PERFORMANCE REPORT

associated with Nalcor’s past and present operations.

Phase l – review of information and records, site visit and interviews. Phase l l – characterization of a site for physical aspects and potential contamination. Risk-Based Corrective Action (RBCA) – a methodology that identifies a site-specific target level of contamination that has an acceptable risk to human health. Remediation – site cleanup to specified regulatory standard.

Species, Habitat Diversity, and Historical Resources

BOREAL FELT LICHEN TRANSPLANTS

Tree #1 contained one healthy individual (see Photograph

away from the initial locations. For the larger individuals,

The Lower Churchill Project conducted a Regionally

1) and Tree #2 contained one healthy individual, with many

they were attached to the receptor tree using stainless steel

Uncommon Plant Survey in 2013 and 2014 within high

juvenile individuals. Many of the smaller juveniles could not

staples. Two to three staples were placed in each depending

potential areas of the HVdc transmission line right of

be seen with the naked eye.

on the size (see Photograph 2). Other smaller individuals

way (ROW). During this survey, an occurrence of Boreal

required the â&#x20AC;&#x153;tea bagâ&#x20AC;? technique whereby the juveniles

Felt Lichen (Erioderma pedicellatum) was recorded. A

Receptor trees, i.e., the trees chosen as the new habitat for

are placed in a sterile gauze pocket, and attached to the

subsequent confirmation visit by Wildlife Division staff

the Boreal Felt Lichen, were chosen approximately 250 m

receptor tree.

Photo 1: Boreal Felt Lichen on Tree #1

Photo 2: Boreal Felt Lichen attached to receptor tree

verified this occurrence, and determined the presence of a second occurrence, also within the ROW. In consultation with Wildlife Division, it was decided that the individuals were to be removed and transplanted to a suitable habitat within one kilometre of their original location. A site visit was conducted at a location east of Whitbourne in the vicinity of Goose Pond. Both occurrences of Boreal Felt Lichen were located, pertinent data collected, and all individuals were removed and prepared for transplanting. At each of the identified sites, a further survey was conducted for additional occurrences; however, none were found. 2014 ENVIRONMENTAL PERFORMANCE REPORT

LOWER CHURCHILL PROJECT RARE PLANT AVOIDANCE

plant occurrences were avoided in the construction of the

In 2014, the program continued in the reservoir area

The Labrador – Island Transmission Link consists of an

drill pad and the trench.

at Muskrat Falls and at the future site of the shoreline

1100 km, 350 kV high voltage direct current transmission

electrode at L’Anse au Diable in southern Labrador. After

system from Central Labrador to the Avalon Peninsula of

HISTORIC RESOURCES RECOVERY PROGRAM

test-pitting, gridding and excavating over 400 m2 of area,

Newfoundland. The transmission system includes a 28 km

When the Muskrat Falls Project began, the project

another 5,000 bags of artifacts were successfully collected

submarine cable crossing the Strait of Belle Isle. During the

committed to protect and preserve historic resources

this year. The recovered remnants will now be analysed

environmental assessment, potential cable landing sites

and archaeological artifacts in the project area. In 2012-

and catalogued, before being turned over to the Provincial

on the Newfoundland side of the crossing included Yankee

13, a team of archaeologists and field staff recovered

Archaeology Office. The program will continue next year in

Point, Sandy Cove, Savage Cove, and Shoal Cove. All of the

more than 40,000 artifacts in the project area, including

the reservoir area at Muskrat Falls and is expected to be

potential landing sites contained critical habitat and known

hearths and pit features, stone tools, bone and charcoal as

complete in 2015.

occurrences for either Long’s Braya (Braya longii) or Fernald’s

well as some ceramics, representing ancient Amerindian

Braya (Braya fernaldii).

campsites in the area dating back to between 2,000 and

FISHERIES COMPENSATION WATER RELEASE

3,500 years ago.

In 2014, as part of long-term agreements with the Department

Fernald’s Braya and Long’s Braya are endemic to the

of Fisheries and Oceans, Hydro released approximately 150

northwest coast of the Northern Peninsula of Newfoundland

million cubic metres of water at its fisheries compensation

and restricted to the unique limestone barrens ecosystem.

facilities. The water released at White Bear River, Grey River,

Long’s Braya is currently listed under the Species At Risk Act

Granite Canal, Upper Salmon and Hind’s Lake was performed

(SARA) and the Newfoundland and Labrador Endangered

at established times throughout the year for habitat

Species Act (NLESA) as endangered. Fernald’s Braya is

protection and fish migration.

currently listed under the Species At Risk Act (SARA) and the Newfoundland and Labrador Endangered Species Act

Because of the isolated nature of the island’s electrical system,

(NLESA) as endangered.

lost hydroelectric energy production associated with these water releases, under normal conditions, must be provided

Meeting the technical requirements for the cable crossing

by thermal generation from the Holyrood Generating Station.

required a delicate balance with the environmental

The amount of thermal production required to offset the

sensitivities of braya occurrences and critical habitat,

amount of water released in 2014 was approximately 44

including extensive consultation with the regulator and local

gigawatt hours. When the 2014 thermal conversion rate and

environmental stakeholders. A mutually acceptable location

average cost of fuel are considered, the equivalent value of

was selected based on input from project engineers, braya specialists, and regulators. All known rare 2014 ENVIRONMENTAL PERFORMANCE REPORT

Areas were gridded off in preparation for the recovery of historical resources.

the water released at all fisheries compensation facilities was approximately $8.1 million and resulted in a potential 28

increase of 155 tonnes of sulphur dioxide emissions and

critical periods within the breeding regime, which in turn

In 2014, about 29,293 adult salmon migrated upstream

36,500 tonnes of carbon dioxide emissions.

ensures compliance with wildlife legislation regarding

of Bishop’s Falls into various tributaries of the Exploits

migratory birds in Newfoundland and Labrador.

watershed. In the upper reaches of the Exploits River, about

RAPTOR PROTECTION PROGRAM

767 adult fish passed Millertown dam.

For more than 20 years, Hydro has managed a raptor

PRESERVING THE ATLANTIC SALMON RUN

protection program. In keeping with Nalcor’s EMS and the

Exploits Generation staff manage a very successful Atlantic

FISH BY-PASS UPGRADES

corporate Environmental Policy and Guiding Principles,

salmon diversion system on the Exploits River in Central

Over its existence, the Grand Falls hydroelectric plant has

staff with Hydro’s Environmental Services Division survey

Newfoundland in partnership with the Department of

undergone various upgrades and expansions, the most

transmission lines in Labrador for the presence of active

Fisheries and Oceans, fish biologists and the Environmental

significant occurring in 1997 with the construction of a

raptor nests. This is an annual survey undertaken in

Resource Management Association (ERMA). One Atlantic

400 m long, 40 m wide and roughly 10 m deep power

consultation with the provincial Department of Environment

salmon enhancement project, started in the early 1960s, has

canal to replace the aging penstocks. Concurrent with

and Conservation, Wildlife Division. These nests are

seen the natural adult salmon run grow from 1200 strong to

the construction of the power canal was the design and

primarily osprey, with smaller numbers of northern ravens,

an adult incoming run in the range of 40,000 today.

implementation of a fish protection system to assist in the

red tailed hawks and bald eagles. Surveys are undertaken

removal of smolt trapped in the power canal. At the core

early in the egg laying stage of the breeding season at

Every year, spring runoff brings adult salmon that have

of the fish protection system is a 185-metre long, two-

which time nests that would be active for the year are

migrated downstream from their spawning grounds. Some

metre deep floating louver system that exploits behavioral

usually occupied or show signs of occupancy.

of these adult salmon will enter the power canal at the

guidance principles to direct smolt toward a 40-metre long

Grand Falls hydroelectric plant. Barriers prevent the salmon

concrete and wood fish bypass structure that diverts guided

In 2014, surveys found 10 active raven nests, 86 active

from entering the power generation turbines once they

fish back to the Exploits River to continue their out-migration.

osprey nests, seven active red tail hawk nests, and three

reach the power canal. Without this assistance, they could

active bald eagle nests on the Labrador lines. There was

be delayed in their annual migration downstream.

also an active osprey nest on a distribution structure at

In 2012, the louver system was replaced with a new system based on the same design principals of the former system.

Forteau. On the island transmission grid, which includes

Exploits Generation staff begin visually monitoring the

Upgrades continued in 2013 with the replacement of the

platform nests, there were 19 active osprey nests. A

power canal at the end of April when water temperatures

fish by-pass entrance system.

number of nests on the island were gone in 2014, likely

begin to rise. Through a cooperative effort started in

blown out in wind storms. There were 29 active nests

1997, local fishermen and Exploits Generation employees

Studies under taken in 2013 and 2014 to document the

present on various structures in 2013. Structures with

remove salmon from the power canal and transport

effectiveness of the new louver system concluded its

active nests are avoided until after the breeding season,

them downstream.

guidance efficiency to be the same or better than the

usually after August 15. This allows line crews to avoid

performance of the former system.

potential negative impacts on these species during the 2014 ENVIRONMENTAL PERFORMANCE REPORT

Alternative Energy

BIOGAS ELECTRICITY GENERATION PILOT PROGRAM

Under the program, Newfoundland and Labrador Hydro

Newfoundland and Labrador’s Biogas Electricity Generation

will purchase electricity from biogas projects:

Pilot Program (the Program) was established in 2014/15

• At a price per kWh equal to 90% of NLH’s avoided

to encourage the development of biogas power generation

marginal cost prior to Muskrat Falls entering commercial

in Newfoundland and Labrador, and generate electricity for

service;

the system.

• At a price per kWh indexed to the market price minus NLH’s associated transmission costs after Muskrat Falls

Biogas is a combustible gas created by landfills and farms through the anaerobic decomposition of organic material.

enters commercial service; • Up to a maximum of two megawatts (MW) per

Biogas is typically composed of methane and carbon

biogas project (with exceptions). Size limitations are

dioxide with traces of other gases. Biogas generators burn

determined as part of the application process;

the methane gas to create heat used to turn a turbine

• Up to a five MW aggregate provincial maximum, which

and generate electricity. Burning methane as fuel in a

will be filled on a first-come first-served basis; and

generator has environmental benefits as it reduces its

• Will provide biogas project owners with the value of

greenhouse gas (GHG) impact significantly. When released

any Renewable Energy Credits (RECs) or GHG-related

directly into the atmosphere, methane has a GHG impact

credits available from the sale of such credits after

21 times more harmful than releasing the same amount

Muskrat Falls enters commercial service.

of carbon dioxide. By burning the methane in biogas, the GHG impact is reduced to equal that of carbon dioxide. 2014 ENVIRONMENTAL PERFORMANCE REPORT

WIND PROJECTS PROVIDE GREEN ENERGY TO ISLAND CONSUMERS

WIND-HYDROGEN-DIESEL ENERGY PROJECT

This unique project has attracted attention from around

While the province has an abundance of renewable

the world. Hydro continues to promote the renewable

Hydro is demonstrating its commitment as an environmental

resources, many coastal isolated communities rely on

energy and energy storage benefits of the project through

leader. In 2009, in an effort to reduce emissions from burning

diesel-fueled generation systems for electricity generation.

presentations at various workshops and conferences.

fossil fuels, Hydro increased its renewable generation.

In its efforts to reduce reliance on fuel-fired generation,

Hydro has power purchase agreements for 54 MW of clean,

Newfoundland and Labrador Hydro (Hydro) has built one

In 2014, operation of the EMS has resulted in a reduction

renewable wind energy on the island of Newfoundland. The

of the first projects in the world to integrate generation

in diesel fuel consumption and the collection of valuable

integration of wind power in Newfoundland has broadened

from wind, hydrogen and diesel in an isolated electricity

operational data. Phase II of the project began in 2014

Hydro’s energy mix and allowed the company to continue

system. The Wind-Hydrogen-Diesel Energy Project in

and will be funded by the Atlantic Canada Opportunities

providing electricity at a reasonable cost.

Ramea is a research and development project that uses

Agency through the Atlantic Innovation Fund and Nalcor

renewable energy sources and the Energy Management

Energy. Phase II will be a five-year project that will see

System (EMS), to supplement the diesel requirements of

the addition of a Hydrogen Fuel Cell to the system.

the island community.

The project will consist of an operational phase and a

Wind

generation

environmentally

friendly,

pollution-free, and endless source of energy. It is clean and leaves a small environmental footprint on the

commercialization phase.

province. On the island, wind generation will help reduce fossil-fired generation at Hydro’s thermal generating station in Holyrood. On average, the annual environmental benefits from the wind farms in St. Lawrence and Fermeuse are: • Reduction in fuel consumption by about 300,000 barrels • Reduction in sulphur dioxide emissions by nearly 700 tonnes • Reduction in carbon dioxide emissions by nearly 160,000 tonnes • Generation of green energy for the equivalent of up to 8,675 average single-detached homes with electric heat.

2014 ENVIRONMENTAL PERFORMANCE REPORT

Energy Efficiency and Conservation

ELECTRICITY DEMAND, EFFICIENCY AND CONSERVATION:

Hydro continued to partner with Newfoundland Power

Newfoundland and Labrador Hydro’s (Hydro) commitment

to deliver the takeCHARGE program, which offers rebate

to environmental sustainability also includes promoting

programs to encourage residential and commercial

energy conservation. During 2014, Hydro continued to seek

customers to reduce their electricity usage. Residential

energy savings in its own facilities and pursue initiatives

programs include rebates for insulation upgrades, ENERGY

to help Hydro’s rural residential and commercial electricity

STAR® windows, thermostats, heat recovery ventilators,

customers as well as provincial industrial customers

and small technology products.

conserve energy. Commercial

programs

include

discounted

lighting,

Various Hydro facilities across Newfoundland and Labrador

product rebates for thermostats, occupancy sensors,

completed internal energy efficiency projects for a total

LED wall packs, and high performance showerheads. As

energy savings of 6,388 MWh. The savings were achieved

well, commercial customers were offered free technical

mainly through upgraded lighting and heating controls at

support to help identify electricity savings projects and

several of Hydro’s office and operations facilities located

review custom energy efficiency program options. Hydro’s

in the Central, Northern, and Labrador Regions, as well

Isolated Systems Community Energy Efficiency Program,

as significant energy savings from a motor speed control

which helps residential and commercial customers in

project that was completed at the Holyrood Thermal

isolated communities save energy, provided assistance

Generating Station.

from 2012 to 2014 through direct installation of energy saving products.

2014 ENVIRONMENTAL PERFORMANCE REPORT

In 2014, Hydro’s activities included the joint utility program

customers in communities served by diesel generation

incentives and seven projects were completed resulting in

offerings for residential and commercial customers through

systems in Labrador and in Newfoundland. During 2014,

annual savings of 218 MWh (included in 2014 total savings

the takeCHARGE program, as well as Hydro’s own energy

1,081 residential and business customers benefited from

shown above).

efficiency programs. In addition, a small technologies

the direct, free installation of energy efficient technologies

program was launched to provide instant (at cash) rebates

with a total annual energy savings of 1,357 MWh (included

Since 2010, Hydro has also delivered an Industrial Energy

to customers who purchase qualifying products, such

in 2014 total savings shown above).

Efficiency Program (IEEP), which provides industrial

as energy efficient lighting and controls, smart power

electricity customers with financial assistance to complete

strips, dehumidifiers, and water saving products. The total

Custom Business Efficiency Programs were also delivered to

feasibility studies and capital upgrades to achieve energy

annual energy savings achieved from Hydro’s takeCHARGE

business customers in Hydro’s interconnected and isolated

savings. In 2014, three projects completed under the

program offerings to residential and commercial customers

diesel areas in 2014. These programs provide facility

Industrial program will achieve more than 22,258 MWh of

in 2014 is 2,073 MWh.

audits and technical support to identify economical energy

annual energy savings into the future.

efficiency opportunities, and provide financial support for The Isolated Systems Community Energy Efficiency Program

capital upgrades. In 2014, eight commercial facility audits

promotes energy efficiency to residential and commercial

were completed to inform customers of opportunities for

2014 ENVIRONMENTAL PERFORMANCE REPORT

Commited to Our Communities

Nalcor is dedicated to the promotion of environmental awareness and preservation of Newfoundland and Labrador’s unique environment. A priority for Nalcor is to build and cultivate partnerships with other agencies and organizations to achieve common environmental objectives. These partnerships maximize human and financial resources to generate a body of knowledge and experience that can be used for environmental decisionmaking in a variety of applications.

supporting Green Teams in 1996. Since then, Nalcor has supported more than 25 Green Teams and employed 105 youth through the program. Flower’s Cove – Limestone Barrens Habitat Stewardship Program The Flower’s Cove Green team was sponsored by Hydro and assisted by researchers from Memorial University of Newfoundland and the Limestone Barrens Species at Risk Recovery Team. The team worked together monitoring Diamond Back Moth traps at several locations within the Great Northern Peninsula. This particular Green Team was involved with restoration efforts at a

CONSERVATION CORPS NEWFOUNDLAND AND LABRADOR

site for the Endangered Long’s Braya at Sandy Cove. The

Nalcor Energy has a historic partnership with the

team also engaged the public in an attempt to address

Conservation Corps’ Green Team Program. Nalcor has

the negative impact ATVs and other off-road vehicles

contributed nearly $396,000 to support local employment

have throughout critical habitat in the surrounding area.

and opportunities for youth throughout the province

The team also conducted door-to-door Land and

with its Green Team support. The company first began

Community Use Survey.

2014 ENVIRONMENTAL PERFORMANCE REPORT

Happy Valley – Goose Bay – Healthy Waters Labrador

Envirothon took place in Bishop’s Falls and was organized

garbage and debris from Bottom Beach. This was the most

Nalcor Energy sponsored the Happy Valley – Goose Bay

by Model Forest Newfoundland and Labrador, a not-for-

successful clean-up to date and almost doubled what was

Green Team, whose members worked with Healthy Waters

profit corporation working on the implementation of

collected in 2013.

Labrador to assist the Birch Island Creek Restoration

activities that advance sustainable forest management

Project. This project included implementing mitigation

and community-based economic development utilizing

ANNUAL ENVIRONMENT WEEK CLEAN-UP

measures, planting vegetation, assisting with mapping

forest resources. Deer Lake’s Elwood Regional High School

Every year during Environment Week, Nalcor Energy and

and design for future boardwalks, as well as debris clean

winning team, “Fertile Minds”, were the 2014 Envirothon

Newfoundland and Labrador Hydro employees participate

up. The team was also responsible for conducting several

winners. The winning team qualified to represent

in green-focused events throughout the organization. In

environmental awareness events including presentations,

Newfoundland and Labrador at the North American

2014, employees carried out a clean-up of the area behind

delivery of games, arts and crafts, and other activities.

Envirothon at the University of Georgia in Athens, Georgia,

Hydro Place. More than 25 employees collected piles of

July 20 to 24, 2014.

trash in an attempt to keep the neighbourhood clean

ENVIROTHON NEWFOUNDLAND AND LABRADOR

and pristine. Hydro was one of the first corporations in the

Envirothon is a fast paced, hands-on competition for high

ANNUAL SOUTHERN HARBOUR BOTTOM BEACH CLEAN-UP

province to develop environmental policies to implement

school students that tests knowledge of Newfoundland

Nalcor Energy’s Bull Arm team has been organizing a

environmental protection procedures in the mid 1970s.

and Labrador’s natural resources and environmental

clean-up of Bottom Beach in Southern Harbour for the past

Nalcor continues to operate in an environmentally

sustainability. The 2014 Envirothon involved testing in

five years. The team pulls together volunteers throughout

conscious manner throughout the organization and

the following subjects: aquatic ecology, forestry, soils and

Nalcor as well as town officials and residents of Southern

is committed to managing its operations to reduce its

land use, wildlife and the 2014 special topic of sustainable

Harbour to help with the annual beach clean-up. In 2014,

environmental impact at every opportunity.

local agriculture.

almost 40 volunteers collected more than 200 bags of

2014 ENVIRONMENTAL PERFORMANCE REPORT