New proposed regulation regarding Environmental Assessment Act requirements for the Proposed Northeast Power Line Project

A new regulation is being proposed under the Environmental Assessment Act (EAA) that would, if made, set out requirements through a number of conditions that Hydro One Networks Inc. (Hydro One) would need to satisfy before proceeding with the Northeast Power Line Project (Project), which involves:

• establishing a new transmission line between the Hanmer and Mississagi transformer stations within an existing transmission corridor
• changes and upgrades to the two transformer stations

Additionally, the proposed regulation would also provide that the EAA does not apply to certain related undertakings (as described below). The regulation would not provide for any requirements related to these undertakings.

Hydro One is working in collaboration with Waasmoowin Energy Inc., a consortium of First Nation partners, on the Project.

The proposed conditions that Hydro One would be required to satisfy before proceeding with the Project are as follows:

• preparing a draft Environmental Report that must include:
  • a description of:
    • the Project
    • the assessment of the potential impacts of constructing the transmission line on specified environmental matters, which include archaeological resources, terrestrial and wetland vegetation, fish and fish habitat, and any other matter identified by Hydro One
    • measures to be taken to mitigate the potential negative impacts identified in the assessment of impacts in the paragraph above
  • a consultation record that includes a summary of the consultation carried out by Hydro One with Indigenous communities, and as applicable, other interested persons in respect of the Project since March 1, 2024.
  • a summary of any comments and concerns raised by Indigenous communities, and responses provided by Hydro One to the communities describing how concerns will be addressed.
• Ensure Indigenous communities identified by the Ministry of Energy and Mines (MEM) whose constitutionally protected Aboriginal or treaty rights may be adversely impacted by the Project have been consulted on the Project (consultation carried out by Hydro One prior to the regulation may be relied upon to satisfy this requirement).
• Publishing the draft Environmental Report on Hydro One’s website for at least 30 days for review and comment and providing notice of the draft report, including to Indigenous communities identified by MEM.
• Following expiry of the review and comment period, giving written notice to the Ministry of the Environment, Conservation and Parks (MECP) specifying whether or not any concerns in respect of adverse impacts on constitutionally protected Aboriginal or treaty rights were raised by Indigenous communities during the review and comment period and, how the concerns have been or will be addressed.
• Complying with any direction provided by MECP regarding consultation with Indigenous communities whose constitutionally protected Aboriginal or treaty rights may be adversely impacted by the Project and regarding preventing or mitigating such impacts. Such direction by MECP may be given at any time up until 30 days after MECP receives Hydro One’s written notice of concerns, unless MECP shortens or extends that 30-day period.
• Preparing the final Environmental Report, taking into consideration comments received on the draft report and any further consultation with Indigenous communities undertaken and reflecting any direction provided by MECP and what Hydro One has done in response to the direction, and publishing the report on Hydro One’s website, and providing notice of the report.

The proposed regulation will also include an addendum process to address changes to the Project that may be proposed after the final Environmental Report is published. The addendum process will include considerations that Hydro One must take into account in determining whether a change is significant.

• If determined by Hydro One to be significant, the proposed regulation would set out similar content requirements for a draft and final addendum for the change as for the draft and final Environmental Report, and requirements for providing an opportunity for review and comment on a draft addendum, including the direction that may be given by MECP regarding consultation with Indigenous communities whose constitutionally protected Aboriginal or treaty rights may be adversely impacted by the change and regarding preventing or mitigating such impacts.
• If determined by Hydro One to be not significant, the proposed regulation would require that a final addendum, describing the change and the basis for determining that the change is not significant, be published on Hydro One’s website and notification of the addendum’s publication be provided to Indigenous communities whose constitutionally protected Aboriginal or treaty rights may be adversely impacted by the change, along with a copy of the addendum. If within 30 days of the notification of the addendum being published on Hydro One’s website, an Indigenous community notifies MECP in writing that despite Hydro One determining that the change is not significant, constitutionally protected Aboriginal or treaty rights may be adversely impacted by the change, MECP may give Hydro One direction, within a time limit, regarding consultation and measures to prevent or mitigate any impacts. If no direction is given, Hydro One may proceed with implementing the change.

The Project would be required to be carried out in accordance with the final Environmental Report, any final addenda and any direction given by MECP.

If all of the above requirements are satisfied, the Project would be exempt from the EAA.

In addition, the proposed regulation would unconditionally exempt the following from the EAA:

1. Acquisition of lands and property by Hydro One for the Project;
2. Undertakings that are subject to the Class Environmental Assessment for MNR Resource Stewardship and Facility Development Projects that are for or related to the Project.

Project Background:

An environmental assessment was completed by Ontario Hydro (whose transmission assets were subsequently conveyed to Hydro One after the restructuring of Ontario Hydro), and approval given in 1984 for two transmission lines in a common right-of-way between Mississagi transformer station and Hanmer transformer station.

The first of these two transmission lines was built shortly after the EA approval and is currently operational, while the second transmission line was not built.

In October 2022, the Independent Electricity System Operator (IESO) published its Need for Northeast Bulk Reinforcement report, which forecasted electricity demand in Northeastern Ontario to grow at a rapid pace over the next 10 years due to economic development priorities and electrification initiatives. To support this demand growth, the IESO recommended a new 500 kV transmission line running approximately 205 kilometers (km) from Hanmer transformer station (Greater Sudbury) to Mississagi transformer station (west of Sudbury), to be in-service by 2029.

Following consultation with Indigenous communities, in 2023, through Orders in Council and Directives, the government declared this Project a priority project under s. 96.1 (1) of the Ontario Energy Board Act, 1998 (OEBA) and directed the OEB, pursuant to s. 28.6.1 of the OEBA, to amend Hydro One’s licence conditions to require Hydro One to develop the Project.

Hydro One, in collaboration with Waasmoowin, a consortium of First Nation partners, and in consultation with Indigenous communities, proposes to proceed with establishing this line within the route that was identified in the EA approval (referred to in this posting as “Project”), i.e., paralleling the first line constructed. Recognizing the passage of time since the assessment of the line and approval in 1984 and as discussed with Indigenous communities, Hydro One committed to completing, and has commenced certain archaeological and other environmental studies to update its environmental work.

Purpose:

Given the priority nature of this Project and the lapse in time since the 1984 EA approval, the purpose of the new regulation is to:

• Recognize the work that Hydro One, in collaboration with First Nation partners, has been undertaking in respect of the Project, including the preparation of an Environmental Report that will outline potential effects and mitigation.
• Provide for consultation with Indigenous communities whose constitutionally protected Aboriginal or treaty rights may be adversely impacted by the Project.

The proposed new regulation would not remove the need to obtain all other necessary permits and approvals that may apply to this Project.

Regulatory Impact Assessment:

A new regulation, if made, sets out requirements through a number of conditions that Hydro One Networks Inc. (Hydro One) would need to satisfy before proceeding with the Northeast Power Line Project (Project). These conditions include consulting with Indigenous communities and preparing an environmental report that describes Hydro One’s assessment of impacts on specified environmental matters (as set out above). The proposal is anticipated to result in cost and time savings for Hydro One in respect of this priority project.