No Net Incremental Environmental Impact

Environmental Management Systems

Two environmental briefing sessions were held with the Board of Directors and senior executives to provide an overview of environmental issues at BC Hydro. Results from these two sessions demonstrated the desire to move BC Hydro towards zero net environmental impact. The focus of the next year will be: to understand our impacts and set performance measures and targets for improvement, and for all employees to undertake impact reduction projects. The incorporation of the new, no net incremental environmental impact goal into the Environmental Management System was initiated in late fiscal 2005.

Primary areas of focus were reviewing the Environmental Policy and Statements of Strategic Intent to ensure alignment to the new long-term goals. In March 2005 an audit of the effectiveness of BC Hydro’s Environmental Management System (EMS) was initiated to assess BC Hydro’s EMS structure and effectiveness.

The following areas have obtained ISO 14001 registration (see Glossary):

• Thermal Operations (Burrard Thermal Generating Station, Prince Rupert Generating Station, and Fort Nelson Generating Station).
• Powertech Laboratories

In addition to BC Hydro’s increased focus on managing its environmental impact, many projects have been implemented in fiscal 2005. Some of these projects are outlined below.

Environmental Incident Reporting

BC Hydro’s environmental incidents are internally reported, communicated and closed through the intranet-based Environmental Incident Reporting (EIR) system. Incidents filed in the EIR system are summarized quarterly and provided to senior management and the Audit and Risk Management Committee of the Board. The direct responses to incidents, root cause analyses and corrective actions (where applicable) are addressed through the Lines of Business Environmental Management Systems. In fiscal 2005 the total number of incidents recorded in the EIR was 119, similar to the 118 incidents recorded in fiscal 2004. The total number of incidents includes those reported in the Environmental Regulatory Compliance data. No severe environmental incidents were reported.

Environmental Regulatory Compliance

Number of Incidents

Definition

Environmental Regulatory Compliance (ERC) is the number of externally reportable, preventable environmental incidents.

Variance Explanation

The Environmental Regulatory Compliance results are lower than the target. Targets for this measure were derived from historical rates. Three years of actual data, using established evaluation procedures and criteria, indicate the targets for this measure were set too high. Targets have been lowered to better reflect actual performance. The overall trend over the last three years indicates the number of ERC incidents has declined, however, the difference is within historical variability of this measure. Of the 14 incidents that qualified as preventable, none were characterized as “severe.”

For this type of measure there is an inherent risk of unreported incidents. BC Hydro is currently reviewing its controls to ensure that all applicable incidents are reported. As well, with the introduction of the Environmental Long-term Goal, this measure is under review.

* 2002/2003 and 2003/2004 include the British Columbia Transmission Corporation’s (BCTC) externally reportable, preventable environmental incidents. Beginning fiscal 2004/2005 actuals and targets no longer include BCTC.

Benchmark Comparison

No benchmark data available.

Environmental Commitment & Responsibility Program

As a member of the Canadian Electricity Association (CEA), BC Hydro is an active participant in the Environmental Commitment & Responsibility program (ECR), launched by CEA members in 1997. Participants in the ECR program must make a commitment to continuous environmental improvement. For BC Hydro, participation in the ECR program means continuing with existing environmental initiatives, improving our performance monitoring and reporting, and maintaining our EMS to a level consistent with the ISO 14001 standard. For example, our greenhouse gas emissions are submitted voluntarily to the CEA and reported in their Environmental Commitment & Responsibility Report.

BC Hydro also voluntarily produces an annual Greenhouse Gas Report. The latest report will be available later this year.

Compensation and Restoration Programs

Three programs are in place to mitigate historic impacts on fish and wildlife habitat resulting from the construction of hydroelectric facilities. Established by the BC Hydro and the Ministry of Water, Land and Air Protection, the programs involve multi-stakeholder and First Nations engagement, priority research projects and other compensation efforts.

• Columbia Basin Fish and Wildlife Compensation Program
  The Columbia Basin Fish and Wildlife Compensation Program operates in the Canadian portion of the Columbia River Basin. In fiscal 2005 BC Hydro committed $3.8 million to fish and wildlife projects in the Basin. Twenty-three wildlife projects and 28 fish projects were funded with dozens of local partners.
  • Fertilization Program
    The largest project funded by the Compensation Program is the Fertilization Program in Kootenay Lake and the Arrow Lakes Reservoir. This is considered one of the largest lake restoration projects in the world. In fall 2004, kokanee spawners returned at near historical levels making this the best year for spawners in a decade - a testament to the success of the fertilization program.
• Peace-Williston Fish and Wildlife Compensation Program
  The Peace-Williston Fish and Wildlife Compensation Program operates within the watersheds of Williston and Dinosaur Reservoirs in northern B.C. During fiscal 2005 the program directed $1.1 million to 19 fish and 13 wildlife research and enhancement projects. Fish projects included work with Arctic Grayling throughout the Williston watershed, with wildlife projects including research on goats and Stone’s sheep.
• Bridge Coastal Restoration Program
  The BC Hydro Bridge Coastal Restoration Program funds projects to restore fish and wildlife populations and habitat in the Coastal Generation Area. This area includes 15 watersheds in the Fraser Valley, Vancouver Island, Coastal, Bridge River and Shuswap. In fiscal 2005 BC Hydro committed $1.4 million to the program for the funding of 27 fish and wildlife projects.

Upper Columbia White Sturgeon Recovery Initiative

As part of a separate environmental initiative, the Upper Columbia White Sturgeon Recovery Initiative (UCWSRI) partners and community volunteers welcomed 175 local school children to release over 9,000 juvenile white sturgeon into the upper Columbia River between Trail and Castlegar in May 2004. Involving youth in education and outreach initiatives is key to ensuring the longevity of the initiative and rebuilding the white sturgeon population over the next 30 years or more. The UCWSRI began in 2000 with a two-year agreement signed between the provincial and federal governments and BC Hydro to help white sturgeon return from the brink of extinction in this portion of the Columbia River.