Whitesand First Nation Community Sustainability Initiative

Transcription

1 Pan Canadian Summit on Reducing Diesel in Remote Communities Tuesday January 17th, 2017 Presented by David L Mackett Whitesand First Nation Community Sustainability Initiative

2 Presentation Overview In 2009 Whitesand First Nation created the Community Sustainability Initiative (CSI). Forward thinking initiative based on 5 cornerstones. Blueprint to solutions for ongoing systemic problems (economic despair, social inequity, cultural fragmentation, education gaps, environmental degradation, community health). This presentation focuses on the CSI Economic Cornerstone which is led by its Whitesand s Biomass Energy Project. Reflect on a number of key project drivers Issues faced Benefits

3 Key Project Driver #1 Community Vision & Commitment Whitesand s vision of displacing the primary use of diesel generated electricity has been a long standing goal. In 1992 Armstrong, ON and Whitesand submitted a proposal for a community forest which included a bio mass cogeneration facility. This proposal was not accepted but the community kept its vision alive and waited many years for a window of opportunity to open.

4 Whitesand First Nation Whitesand First Nation is located approximately 250 km north of Thunder Bay, Ontario near the northern tip of Lake Nipigon community members with, with an on reserve population of approximately 450.

5 2017 The CURRENT SITUATION High unemployment rate with little or no chance for meaningful work. High on reserve population is in receipt of social assistance. Many of social assistance recipients are without a grade twelve education. Poor secondary retention rates. Social despondence with many citizens experiencing drug dependency and low self esteem. Local Forest was abandoned by industry and is now a Crown Forest. No power available for economic development Nearing Max Power Generation Future Housing or other Infrastructure Jeopardized Diesel Generated Power Little Community Benefits Local Forest Past forest industry harvested trees and removed for processing elsewhere with very little local benefit.

6 Dependency on Social Assistance The mean education level is less than grade nine and the unemployment rate is high. The result is that social transfer payments account for the bulk of family income.

7 Status of Poverty in Ontario Social Assistance Recipients Poverty Line (LIM-AT- 2011) [1] Annual Income 2011 Single Adult $19,930 $621 x 12 = $7,452 [2] Basic Needs $227 Max Shelter $372 GST rebate $22 Ontario Works (OW) Basic Income Gap $12,478 (37% of LIM-AT) Lone parent with one child (under 6 yr) $28,185 $1, x 12 = $17, [3] Basic Needs $347 Max Shelter $584 Ontario Child Benefit $91.66 Universal Child Care Benefit $100 Canada Child Tax Benefit $ National Child Benefit Supplement $ GST rebate $34 $10,723 (62% of LIM-AT)

8 The Catalyst CSI 5 Cornerstones Economic Development Culture CSI was developed on a 5 Cornerstone Approach Skills Training/ Education CSI has the goal of improving the livelihoods of community members through sustainable use of CSI the local forest including increased management participation and responsibility, capacity All cornerstones building and skills advancement, innovation, green energy are integrated production and economic growth. and equally valued Society Environment

9 Key Project Driver #2 Provincial Wood Supply Competition In 2008 the meltdown of the Northwestern Ontario forest industry removed harvesting pressure on the Armstrong Forest and led to the abandonment of the Sustainable Forest License on the Armstrong Forest and re designation of the Armstrong Forest as a Crown Forest. The meltdown created the Provincial Wood Supply Competition (WSC) was the trigger that opened the window for Whitesand to plan, propose and implement a New Bio Economy. This would include a biomass fueled Combined Heat and Power Plant and a wood pellet manufacturing facility. Whitesand immediately and pro actively position itself for the growing opportunity built a team (professional services) and submitted WSC proposal. In 2011 Whitesand was awarded fibre to begin the development of the project including engineering, land acquisition, environmental approvals, and the creation of biomass workforce.

10 Overview of CSI Biomass Project With the announcement of the wood award WFN began the development process of the CHP and Wood Pellet Facility which would include: 5MW cogeneration facility fueled by woody biomass. Approximately 2.1 MWe to power the pellet plant. Approximately 1.1 MWe to power Whitesand, Armstrong and Collins. Approximately 1.0 MWe other businesses and future growth Approximately.8 MWe parasitic load. Wood pellet plant will utilize heat and electricity from the cogeneration plant for various pelletizing processes. 90,000 metric tons per year of residential grade pellets. Exploring opportunity for advanced wood pellets. Other components Wood processing yard, water supply and storage, wastewater management infrastructure and transformer station.

11 Key Project Driver #3 Ontario Ministry of Energy: Long Term Energy Plan The LTEP recognized that Aboriginal participation in the energy sector is one of the keys to economic development for First Nation communities. The LTEP identified Whitesand as one of four communities that would not be connected to the Ontario transmission grid. However, opportunities to pursue local renewable energy projects that would allow benefit from economic development opportunities was possible. 11

12 Key Project Driver #4 Ministry of Environment Climate Change Through the project development stages various government goals and mandates appeared which continued to place greater value on our Project including Ontario s Climate Change goals and commitments; Minister of Environment Climate Change Discussion Paper goal of new economic growth that result from moving to a low carbon economy. 12

13 Moving Forward on Climate Change 2014 Mandate letter: Environment and Climate Change This strategy will be forward looking to 2050 and will contain an action plan to help our government achieve its greenhouse gas reduction targets for Implementing the strategy and achieving our targets will require an all ofgovernment approach and, as Minister of the Environment and Climate Change, you will work with and be supported by colleagues, including the ministers of Finance, Energy, Transportation, Municipal Affairs and Housing, Economic Development, Employment and Infrastructure, Agriculture, Food and Rural Affairs, Research and Innovation, and Natural Resources and Forestry to complete the strategy in 2015.

14 Renewable Energy Approvals (REA) The Project is subject to the REA process, subject to the provisions of the Environmental Protection Act and Ontario Regulation 359/09. The REA process entails consideration of environmental aspects, natural heritage features and water bodies as well as heritage and archaeological resources. In addition, the REA process includes, public, agency and First Nation consultations. Notice of Proposal (and Draft Project Description Report release) Public Meeting #1 Completion of Environmental and Technical Studies Notice of Public Meeting #2 (and release of draft studies) Public Meeting #2 Project Layout Finalized Reports Finalized Submit REA Application to MOE Notice of Filing posted on Env. Registry by MOE MOE Review (6 months) REA Decision Sept 2013 Dec Renewable Energy Approval was issued December 23, First of its kind in Ontario. Environmental Compliance Approval for the pellet mill was also recently issued.

15 Power Purchase Agreement The standard PPA process is not suitable for a community energy projects as there is no recognition of economic, social or environment benefits. The first round with IESO did not go very well and failed. Minister of Energy encouraged Whitesand to work with Energy Staff to better understand and analyze the project which would hopefully lead to a Directive. Also encouraged Whitesand to engage Ontario Power Generation in the development and analysis of our project. New approach demonstrates true collaboration and recognition that green energy production was a catalyst for economic development, social growth and environmental benefits.

16 Key Project Driver #5 Minster s Directive Power Purchase Agreement Minister of Energy released his Directive to the Independent Electricity Supply Operator (IESO) on December 14, The Directive notes the special significance of the project and directs IESO to execute a Power Purchase Agreement. Began PPA contractual negotiations January 18 th 2016 and received draft contract December 23, 2016.

17 Directive Approach Overview Directive was built through the development of a custom Socio Economic Benefits Valuation approach for considering rates above current market prices that could support the community energy project. Quantification of four benefit categories in building up the EDA for the electricity generation to the pellet plant: Employment Fiscal Environmental Social Construction and ongoing employment income for the electricity component of the project. Provincial personal income taxes (PIT) that could be received through employment gains, and MNRF crown dues. Value of avoided CO 2 from the diesel that would otherwise be consumed. Value of reduced Ontario Works costs, and training costs to date as a proxy for other social benefits.

18 How Did We Get this Far? Our project has benefited from strong support between Whitesand First Nation and the Federal and Provincial governments.

19 Direct Support Planning, Design, and EA CSI project development cost approximately $5.044 million, which included: planning, environmental, engineering, and other professional services. Funds for this phase of the project were provided by: MIRR, $640,000 ESDC, $1,200,000, FedNor, $334,000, INAC, $840,000, NRCan, $880,000, NOHFC, $150,000, Whitesand FN, $1,000,000. MNRF, MOECC, ENE and OPG have provided direct assistance to the CSI, such as analysis, facilitation, knowledge transfer and capacity building 19

20 Ministry of Natural Resources & Forests Working closely with MNRF departments on a variety issues and opportunities to address project needs including the Thunder Bay District, Business Development Branch, Forest Tenure and Economics Branch, and Operations Branch. MNRF is providing technical assistance, community capacity building, helping to identify and solve issues, and connecting to other provincial and federal programs. land use permits, fibre supply, forest tenure and modernization, forest management planning, Facilitating discussions with other provincial and federal agencies, identifying funding opportunities, and technical support.

21 WHAT WILL THIS FOR WHAT THIS MEANS TO WHITESAND

22 Life What Changing Will This Opportunity All Mean?

23 Driver #6 Building a Biomass Workforce Once WFN received wood supply commitment Whitesand began seeking training support to prepare members for employment in the new biomass facilities. Began with Heavy Equipment Certification, which supported forestry road maintenance contract with MNR; and would assist future harvesting and biomass supply operations. Completed Wood Products & Energy Manufacturing Program 56 week long program to create a workforce that is multi skilled and flexible, capable of working in several job situations across all plant operations. 22 enrolled in the program and 13 graduated.

24 Meaningful Employment Details Employees Co Gen Includes co gen operators, trades and shared Plant admin/wood yard services 17 Pellet Plant Includes pellet plant operators and shared admin/wood yard services 22 Sub Total Facilities/ On Site 39 Harvesting (2) 3 man crews 6 Mechanic 1 Supervisor 0.5 Bush Haul Trucks (Drivers) Required: Based on 157,000 m 40 m 3 /load with 3,925 loads/240 days 8 per year; 4 hours / load = 2 loads / shift / truck Loaders 1 Supervisor 0.5 Sub Total Forestry/Contracted Services 17 Total Direct Employment 56

25 Original design was to chip in the forest. With the merchandising yard we will bring in tree length and chip as part of the pellet plant. Replace 150,000 Litres of Diesel that would be used in the Forest Create more employment opportunities Greenhous e Waste Steam CHP ~75,000 m3/yr Max capacity Industrial Park Tenants Pellet Plant ~180,000 m3/yr Max capacity Electric Chipper Black Spruce Forest ~24,000 FRL HWD ~50,000 HWD/B to B with Resolute Bark Waste / Unmarketable Free Steam Armstrong Forest ~267,000 SWD/yr ~98,000 HWD/yr Merchandizing Yard Loader/Sorte r HWD/SWD Exchange with Resolute Forest Products Slasher Local Forest HWD/Veneer Logs Shipped to Columbia Plywood Plant in Hearst via rail 9,000 m3/yr Max volume The current LUP is being purchased by WFN. Legal Survey has been completed. The property will become a true bioenergy and wood product centre. The various businesses will be owned by WFN and are dependant on each other Sawlogs Open Market or B to B with Resolute Forest Products The industrial park development consists of the pre construction scope of work which is from the Class 10 Engineering Costs. This development has enabled the community separate those costs as a separate initiative and access capital funding from Ontario and Canada

26 Benefits Ontario s first biomass project using Renewable Energy Approval. Community Owned project that will be the first to replace primary use of Hydro One Remotes diesel generators and obtain a biomass power sales agreement. Reduce air emissions from the diesel generators that currently use approximately 1,000,000 litres of diesel fuel annually. Create 56 full time and approximately 50 seasonal jobs generating approximately $ 4 million in wages. Tax return to Ontario is approximately $3.5 million annually. Better forest utilization and timber optimization, maintaining sustainable and health forest ecosystems. Creating B2B opportunities with Industry.

27 MUCH MORE Pride of Ownership Environmental Integrity Empowerment Community Reinvestment Social Health Education Employment Culture

28 Current Tasks Complete Power Purchase Agreement Underway with Facility License Application (business plan) and additional fibre analysis required by MNRF. Identify and acquire capital funding grants Capital Financing Forest management tenure on local forest.

29 Next Steps Continue community training to raise employability skills and build local biomass workforce. Commence with feasibility study to replace current home heating fuel (approximately 300,000 litres annually) with pellet boilers/stoves. Study potential for a greenhouse which would utilize waste heat from the facilities. Create more employment and supply fresh vegetables to community. In discussion with other communities on the development of a First Nation Wood Pellet Consortium to aggregate production; and Certification standard that accounts for the economic, social and environmental benefits of the respective operations.

30 Blueprint for Change CSI has been specifically designed to better social development and growth, raise prosperity through inclusion into Ontario s and Canada s economy, and begin to address climate change directly at the community level through the reduction and elimination of diesel fuel. Electricity is only one part of the equation as home heating currently accounts for a high amount of diesel fuel use in remote communties. We should be looking at other avenues to provide heat and power through the use of biomass to reduce and replace diesel. A combination of small CHP, district heating systems and home conversion to pellet stoves and boilers can achieve this goal. Some communities may not have a readily available source of biomass but if we can transport diesel fuel we can transport wood pellets.

31 CSI a Model for other Communities? The Whitesand CSI has the potential to become a socioeconomic model for sustainable low carbon economies in remote communities. CSI s comprehensive, systematic approach to the project and strategic focus on the five pillars could be replicated elsewhere. Success of these type of projects require collaboration and support of all levels of government. Need to consider new, innovative approaches to move the project forward. These project aligns with several government priorities including improving Indigenous relationships, increasing opportunities for resource revenue sharing of natural resources, supporting economic development and capacity building in Indigenous communities, supporting low carbon economies and removing reliance of remote communities on diesel fuel.

32 2025 Looking Forward New subdivision = 50 new housing units Connected to District Heating Pellet Boiler Skills Training/ Education Log Homes sourced From Local Forest Society District Heating / Housing Retrofits Domestic & International Market Waste Heat Economic Development Value Added Community Power Economic Development Power Merchandising yard CHP Economic Development Power Wood Pellets Green House Return to Environment Realize Maximum Benefits From Local Forest Culture Forest Management and Environmental Services Indigenous and Western Knowledge Environment Local Forest Whitesand First Nation 2016 Community Sustainability Initiative

33 Closing In the end, the Community Sustainability Initiative is about the long term responsibility and accountability for Whitesand s economic, cultural, social, and environmental future which is led by a New Bio Economy. Ownership for that future can only rest with the Whitesand itself; however, Whitesand has sought and continues to seek expertise and partners to help us accomplish this vision. Thank you

34 Contact David L Mackett, Community Sustainability Initiative Whitesand First Nation, david.mackett@whitesandfirstnation.com Craig Toset, Business Development, Whitesand First Nation craig.toset@whitesandfirstnation.com Whitesand First Nation 2016