Regulatory Requirements

Provincial

The Project will have a maximum rated nameplate capacity of 45 megawatts (MW). In June 2008, Kwagis Power submitted a Project Description to the BC Environmental Assessment Office (BC EAO) which indicated that the Project would have a maximum nameplate capacity of 50 to 55 MW. As set out in the Reviewable Projects Regulation, all proposals for new hydroelectric power plants with a rated nameplate capacity of 50 MW or more are subject to review under the BC Environmental Assessment Act (BCEAA). As a result of design optimization studies and revisions to the Project’s hydrological analysis in November 2008, it was determined that the amount of water available for power generation could support a project with a maximum nameplate capacity of 45 MW, rather than 50 to 55 MW. Since this nameplate capacity is below the reviewable threshold set out in the Reviewable Projects Regulation, the Project no longer met the definition of a reviewable project. Kwagis Power subsequently requested the Executive Director of the BC EAO to designate the Project as reviewable under Section 7 of the BCEAA. On December 9, 2008, the BC EAO issued a new Section 10 Order, designating the project as reviewable and indicating the requirement for an EAC. In response, on December 22, 2008 Kwagis Power submitted a revised Project Description to the BC EAO for the Kokish Project.

Draft Terms of Reference for an Application for an Environmental Assessment Certificate were prepared and revised following review by the Technical Working Group and the public. The Working Group, established by the EAO, consists of representatives of federal and provincial regulatory agencies, local governments and First Nations. Public comments on the Draft Terms of Reference received during the public comment period between January 12 and February 11, 2009 are posted on the EAO website. Approved Terms of Reference (ATOR) were issued by the EAO on May 6, 2009. The ATOR identify the issues and information requirements that Kwagis Power must address in its Application. In addition, the Application will comply with any other relevant instructions provided in the Order to be issued by the EAO under Section 11 of the BC Environmental Assessment Act. Section 11 order was issued December 17, 2008.

Federal

The Project will require authorizations from Fisheries and Oceans Canada under the Fisheries Act, which will trigger a screening level assessment under the Law List Regulations of the Canadian Environmental Assessment Act. These approvals/authorizations relate to Sections 22 and 32, and Subsections 35(2) and 37(2) of the Fisheries Act.

The Project is also expected to require Navigable Waters Protection Act Section 5(1) Approvals from Transport Canada for construction of new works in a navigable watercourse. This requirement will also trigger an environmental assessment under the Law List Regulations of the Canadian Environmental Assessment Act.

A Notice of Commencement for the federal environmental assessment process posted on the Canadian Environmental Assessment Agency website.

Harmonized Provincial/Federal Review

For projects such as the Kokish River Hydroelectric Project that require both a federal and provincial environmental assessment, the Canada-British Columbia Agreement on Environmental Assessment Cooperation provides for a single assessment, administered by both the Government of Canada and the Government of British Columbia. Under the Agreement, the BC Environmental Assessment Office takes the lead in administering the assessment, but both governments actively participate and ultimately make their own regulatory decisions regarding project approval.

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