Climate Change & Environmental Impact
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A BC Hydro hydrogen fuel cell truck and hybrid car outside the hydrogen fuelling station at Powertech Labs in Surrey. For more information on our fleet, see the Fleet Vehicle Emissions section.

Just as with Safety, BC Hydro recognizes that the operation of the electrical power system can be hazardous and the risks must be actively managed to protect people, property and the environment. BC Hydro is committed to producing, acquiring, delivering and consuming electricity in an environmentally, financially and socially-responsible manner. We recognize that environmental risks are associated with our work and we have a system in place to manage those risks in a consistent and conscientious way.

In fiscal 2009, we made significant progress in three key areas. Fish habitat: our efforts have finally made improvements upstream of the Coquitlam Dam where we saw fish returning to their habitat for the first time in 80 years. Water Use Planning: we continuously take input from stakeholders to ensure that we consider the environment as well the needs of people around our sites. Triple bottom line thinking: we are minimizing our footprint and leaving the environment in a better place than today for future generations by including structured decision making in all of our business cases.

BC Hydro’s climate change strategy includes a focus on reducing emissions first and relying on offsets second. BC Hydro expects to purchase GHG offsets to meet new provincial regulatory requirements and potentially to meet new Service Plan emissions targets in advance of regulatory need. Starting in 2011, BC Hydro is required to offset annual emissions from the vehicle fleet, building energy use and paper use by purchasing offsets through the Pacific Carbon Trust to meet the B.C. Carbon Neutral Government Regulation.

Environmental impact goal

To progress towards our goal of ‘no net incremental environmental impact’, air, land and water metrics were developed and tested at fourteen sites in fiscal 2009. This data will be used in fiscal 2010 and combined with additional information to create a complete set of baseline impacts.

Climate change

BC Hydro currently supplies electricity at one of the lowest carbon intensities in North America. Concern about greenhouse gas emissions is now a permanent part of utility planning and BC Hydro has developed a climate change strategy that will manage regulatory risk and ensure compliance, reduce greenhouse emissions and prepare for the unavoidable physical impacts of climate change.

The LTAP submitted to the BCUC in June 2008 proposes the lowest carbon intense portfolio BC Hydro has ever identified as being cost-effective, including Power Smart, Resource Smart and clean or renewable energy purchases. In addition, greenhouse gas emission reduction targets have been established for the first time in the 2009/10 to 2011/12 Service Plan.

BC Hydro has been voluntarily reporting annual GHG emissions since 1995 in accordance with international best practices such as the World Resources Institute/World Business Council for Sustainable Development Greenhouse Gas Protocol. We are well-prepared to respond to mandatory reporting requirements anticipated to come into effect as early as 2009.

In the first three months of calendar year 2008, a build up of ice on the Peace River resulted in the inability of running our Peace River facilities. This caused us to rely on Burrard Thermal Generating Station to meet winter load. As a result, direct GHG emissions from electricity generation were higher in 2008 than in 2007. Indirect GHG emissions in 2008 were comparable to 2007.

Greenhouse gas emissions

Source	GHG Emissions by Calendar Year (kt CO₂e)
Source	2004	2005	2006	2007	2008
Scope 1 Direct Emissions
Stationary combustion (electricity generation)	454	284	581	293	382
Stationary combustion (space heating)	3	3	3	4	4
Mobile combustion (fleet vehicles)	16	16	16	20	20
Fugitive emissions (SF₆ releases)	11	9	11	10	10
Total Scope 1 Direct Emissions	483	312	612	326	417
Scope 2 Energy Indirect Emissions
Stationary combustion (electricity and steam consumed by BC Hydro)	1	1	1	1	1
Total Scope 2 Energy Indirect Emissions	1	1	1	1	1
Scope 3 Other Indirect Emissions
Stationary combustion (electricity purchased from Independent Power Producers)	967	1,082	765	1,093	1,119
Mobile combustion (business use of personal vehicles)	1	1	1	1	1
Total Scope 3 Other Indirect Emissions	969	1,084	766	1,095	1,121

Notes:

BC Hydro reports greenhouse gas emissions on a calendar year consistent with international best practices, protocols and emerging mandatory reporting requirements.

Greenhouse gas (GHG) emissions are reported in carbon dioxide equivalent metric kilotonnes (kt CO₂e).

GHG emissions are rounded to the nearest integer. Totals may not add up due to rounding.

Direct and energy indirect GHG emissions are reported for facilities that are under BC Hydro’s operational control.

GHG emissions associated with the corporate operations of wholly-owned subsidiaries Powerex Corp. and Powertech Labs Inc. are included.

GHG emissions due to electricity imports are not included.

Fugitive SF₆ emissions from equipment under operational control of the BC Transmission Corporation are not included.

In anticipation of meeting carbon neutral government requirements, BC Hydro is accounting for indirect life-cycle emissions associated with the consumption of 8.5” by 11” paper. In calendar year 2008, these emissions were estimated to be 0.2 kt CO₂e.

Direct and indirect emissions cannot be added to arrive at total emissions. For the purpose of target-setting, the BC Hydro Service Plan 2009/10–2011/12 contains two GHG metrics:

“GHG Emissions” include all Scope 1 emissions and Scope 3 emissions from electricity purchased from Independent Power Producers; and

“Carbon Neutral Program Emissions” include emissions from stationary combustion (space heating), mobile combustion (fleet vehicles), stationary combustion (electricity and steam consumed by BC Hydro) and consumption of 8.5” by 11” paper.

Where historical GHG emissions do not match previously reported values, emissions have been recalculated due to changes in inventory scope, improvements in data collection and/or updates to emission factors. For more details, please refer to the fiscal 2009 Global Reporting Initiative tables.

In our own operations, we have identified measures to achieve carbon neutrality in corporate operations and have implemented actions including greening the fleet and building changes. Another example, as part of the requirements for the public sector carbon-neutral requirements, BC Hydro has moved to the use of 100 per cent recycled paper. For more information, see our Lead by Example programs.

Clean energy target

The BC Energy Plan directs BC Hydro to ensure that clean or renewable electricity generation continues to account for at least 90 per cent of total generation. This year, clean or renewable generation accounted for 94 per cent of BC Hydro’s electricity supply. To supplement the power from its heritage assets, BC Hydro acquires clean electricity from IPPs located in B.C. BC Hydro undertook three power call processes in fiscal 2009 to acquire additional sources of clean or renewable electricity, including Phase 1 of the Bioenergy Call for Power, the Clean Power Call and the Standing Offer Program. See these calls for more information.

Clean energy

Percentage	F2008	F2009	F2010
Target	90%	90%	90%
Actual	94%	94%

BC Hydro established the Clean Energy measure as a minimum threshold target in accordance with the B.C. Government’s requirement that at least 90 per cent of electricity generation in the province should be clean or renewable electricity – i.e., from biogas, biomass, energy recovery generation, geothermal, hydrocarbon, hydro, hydrogen, municipal solid waste, solar, tidal, wave, wind or other potential clean or renewable electricity sources recognized by the B.C. Government. The 90 per cent minimum threshold ensures that we maintain and try to improve upon our current performance.

The fiscal 2009 actual percentages are representative of where the system has been tracking for the previous five years. The Clean or Renewable Energy measure reflects the above average hydro production that was due to higher than normal inflows and net market exports from the system.

Environmental management

In fiscal 2009, we introduced a more modern Environmental Risk Management and Reporting Framework that provides a consistent structured approach to Environmental Risk Assessment. To analyze risks and identify points where they can be controlled, the framework uses highly visual software to illustrate identified hazards and risk management measures.

Three pilot projects to implement the new Framework were completed in fiscal 2009. The pilots highlighted and communicated the responsibility for risk management to the operations side of our business.

Environmental incidents are communicated and reported internally through the Environmental Incident Reporting (EIR) system, which provides information to manage incidents, identify trends and track actions, and helps us address underlying issues to prevent future incidents. This year we also evaluated the relative risk of environmental consequences using the Environmental Risk Calculator. Of the 257 incidents reported in fiscal 2009, a decrease of seven over the previous year, the majority of incidents had almost no to low environmental consequence. Of the reported incidents, the majority that occurred were due to contaminant releases (eg. oil spills), followed by de-watering and electrical contacts (i.e. bird strikes). There were no reported environmental incidents with a calculated environmental consequence of moderate to high. Low, moderate and high impacts are determined using a relative consequence scale to assess the level of impact at any given moment. For example, the dewatering of a spillway may result in an environmental consequence with relatively low impact one day, but on another day, when a fish run is occurring, may result in an environmental impact of relatively high consequence. Each incident is analysed using a standard set of questions and the level of impact assessed.

Environmental risks, such as the release of hazardous materials into the environment or harm to fish and wildlife habitat, are managed through our Environmental Management System (EMS) by using barriers and controls as a first line of defence to prevent environmental impact, with effective mitigation strategies in place should preventative measures fail. Potential environmental hazards such as the use of lubricating oil at generating stations and the need to manage vegetation in riparian areas are identified, tracked, and managed. We use the EMS every day to apply a consistent, systematic and integrated approach to decision making and work planning.

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Fleet vehicle emissions reductions

BC Hydro continues to introduce new vehicle and driver-related initiatives to ensure we will comply with the provincial government’s policy on carbon neutrality and the reduction of greenhouse gas emissions.

Our fleet now includes 53 hybrid sedans and 50 hybrid SUVs. We introduced an International diesel-electric hybrid line truck in November 2008. Over 200 fleet vehicles are participating in a biodiesel program in the Lower Mainland and on Vancouver Island. This year, we installed Telematics, a data management system that gathers information about vehicle operations in a non-invasive way, in 100 of our fleet vehicles. It will collect data on vehicle fuel consumption, drive cycles and idling times. The study will sample different vehicle classes as well as each of our operating regions over the next year, to assess the use of our vehicles, how they are being driven and how much fuel is used, in order to make future purchasing and driver education decisions.

We are participating in a 34-vehicle pilot partnership with the provincial government as part of a one year case study on the impacts of Production Plug-In Hybrid Vehicles. This year, we integrated eco-friendly driving tips into our safety-related driving programs for all BC Hydro vehicle operators.

Electric vehicle infrastructure guidelines

As part of our participation in research and development in new technologies, BC Hydro is developing a set of guidelines for the installation of electric vehicle charging infrastructure in B.C. The guidelines are a critical step toward the green transformation of the transportation sector in B.C. and in Canada. We have also converted three hybrid vehicles to plug-in hybrid electric vehicles.

BC Hydro’s new hybrid line truck hit the road in style in November 2008. The vehicle was seen sporting the new BC Hydro branding as an official supporter for the Vancouver 2010 Olympic and Paralympic Winter Games when it rolled off the lot at its launch.

Recycling and waste management

The sustainable management of waste and recyclable materials from our business is an important part of our overall strategy to reduce environmental impacts from our operations. In fiscal 2009, the materials handled through the Surrey Materials Management Business Unity Investment Recovery Department included 6,047 tonnes of nonhazardous materials, such as scrap metals, wood and paper, that were diverted from landfills. This is a decrease of 10 per cent from the previous year. A large contributing factor is scrap metal which went from 4,959 tonnes to 3,881 tonnes. This reduction is partially due to new federal regulations coming into place. The result is a landfill diversion rate of 69 per cent, down from the fiscal 2008 rate of 77 per cent.

	F2005	F2006	F2007	F2008	F2009
Total Resources Recovered (tonnes)	3,934	4,205	4,527	6,816	6,047
Solid Waste to Landfill (estimated tonnes)	1.328	1,355	1,509	2,287	3,081
Landfill Diversion Rate (non-hazardous solid waste) (percentage)	NR	77%	77%	77%	69%

Note: The statistics shown above reflect materials flowing through BC Hydro’s Materials Distribution Center in Surrey and do not represent all of BC Hydro’s waste disposal and recycling. Waste disposal and recycling at other BC Hydro locations is not tracked at this time.

Total resources recovered decreased in fiscal 2009 in part due to a reduction in scrap metal sent for recycling, the disposal of a large number of toner cartridges in fiscal 2008 and a reduction in the amount of e-resources recovery likely due to a decrease in the quantity of equipment slated for replacement. Recycling of ceramic insulators, woodpoles and cardboard increased in fiscal 2009. The increase in fiscal 2008 is due to a change in the tracking of scrap poles for recycling that began at the BC Wood Recycling facility, the increase in BC Hydro capital replacement projects, write-offs and the disposable of unusable spare equipment. It is also due to the increased tracking across BC Hydro of materials returning from the field.

The increase in solid waste to landfill is largely due to the disposal of wood waste from B.C. Wood Recycling. The majority of this was from the disposal of pine poles that have no value if milled. Other materials that contributed to this increase were contaminated media (soil, gravel & sandblast material) and regular garbage.

Landfill diversion rate estimates the percentage of total solid (non-hazardous waste) prevented from going to landfill due to reuse, refurbishment or recycling.

Managing Polychlorinated Biphenyls (PCBs)

A large portion of BC Hydro’s electrical equipment (approximately 70 per cent) contains PCB-contaminated oil. BC Hydro is reducing the amount of PCBs in use within the Distribution and Generation Systems on an on-going basis through planned equipment upgrades and replacements with new non-PCB containing units. We have begun to test switchyard equipment for PCB content, as well as phasing out other equipment that contains 50 parts per million or more PCBs to be in compliance with new Federal PCB Regulations by the end of 2025.

In fiscal 2009, BC Hydro completed a four-year testing program aimed at identifying the location of PCB-contaminated padmount transformers. Approximately 1,000 of these transformers were found to have PCBs over regulatory thresholds. A plan has been implemented to replace units that have high levels of PCBs or which are located in sensitive areas, such as near schools and hospitals, by December 31, 2009. Seventy-two of the 135 transformers have been replaced as of March 31, 2009. This action will conform to the PCB phase out requirements of the new Federal PCB Regulations which were enacted in September 2008.

Management of contaminated sites

BC Hydro owns a large number of sites, both operating and dormant. Some of these sites have been contaminated as a result of past industrial or operating practices. We continue to investigate these sites, prioritize them based on risk, and implement management strategies that consider triple bottom line principles. In fiscal 2009, an audit confirmed that the management of contaminated sites is in-line with industry norms.

Rock Bay Remediation project

The Rock Bay Remediation project is BC Hydro's most complex historic contaminated site, dating from the 1860s. A joint undertaking with Transport Canada to remediate the site, located in Victoria, began in 2004. While the agreements with Transport Canada expired in 2008, technical communications continue. Coal tar-contaminated soil was removed in two stages, as was some residual PCB-contaminated soil. Some of the soil remains in a secure, permitted storage facility on site and will be treated and disposed of in the future as part of ongoing environmental restoration activities for Rock Bay. Applications are in process with the provincial Ministry of Environment to obtain Certificates of Compliance covering BC Hydro property, and testing required for that application is continuing. Efforts are also underway to re-open discussions with Transport Canada regarding ongoing remediation work.

Water use planning

The Water Licence Requirements (WLR) Program is responsible for delivering the monitoring studies and physical works contained in the Section 88 orders issued by the Comptroller of Water Rights. BC Hydro began implementing the WLR projects in 2006 with the Coastal and East Kootenay watersheds.

BC Hydro initiated many Columbia WLR projects in fiscal 2009. Monitoring and physical works projects were implemented on Kinbasket, Revelstoke and Arrow reservoirs and the Lower Columbia River. Over 40 of the approximately 115 projects delivered in fiscal 2009 were on the main stem of the Columbia River. The range of projects address issues related to various species of fish including all species of salmon, sturgeon, trout, sculpin, dace, as well as, wildlife, recreation, water quality, industrial operations, archaeology, debris management, and erosion protection.

In July 2008, extra water was released down the Puntledge River on Vancouver Island to assist with the migration and spawning of the summer Chinook salmon. With the extra water released on Wednesdays and Thursdays of each week, the fish were able to avoid the obstacles of the Puntledge Generation Station and move upstream easily into the Comox Lake reservoir.

Compensation and restoration

In partnership with the BC Ministry of Environment, Fisheries and Oceans Canada, First Nations and community stakeholders, BC Hydro has established compensation programs to mitigate the impacts on fish and wildlife resulting from the construction and operation of our generation facilities.

Columbia Basin Fish and Wildlife Compensation Program:
BC Hydro provided $4.9 million to support 11 fisheries and eight wildlife projects.

Bridge Coastal Fish and Wildlife Restoration Program:
The program invested $1.5 million in over 23 projects, 15 fish and eight wildlife research and enhancement in southwest B.C.

Peace Williston Fish and Wildlife Compensation Program:
More than $1.3 million was spent on 17 fish and nine wildlife projects and compensation program delivery to protect and enhance fish and wildlife habitat, populations and resources.

Species at risk

Many BC Hydro facilities and operations interact with species and ecosystems at risk. Effectively managing these interactions is an ongoing, company-wide effort. BC Hydro uses various procedures to manage potential interactions with species and ecosystems at risk, such as the following species listed under the federal Species at Risk Act: the Columbia White Sturgeon, the Nooksack Dace, the Vancouver Island Marmot, the Woodland Caribou, the Western Screech-Owl, the Northern Leopard Frog and the Great Blue Heron.

Efforts include development and implementation of recovery programs for species at risk; specific site environmental management practices for various activities to avoid and mitigate impacts for species at risk; acquisition of properties to conserve and recover biodiversity in sensitive areas; active involvement in organizations and partnerships such as the Canada Intermountain Join Venture, the North American Bird Conservation Council and the BC Wetland Stewardship Partnership and; membership in federal species at risk policy and regulatory associations.

An example of our work is with the Columbia White Sturgeon. BC Hydro, through its Water Licence Requirements Program, is implementing a 12-year, $33 million, research and monitoring program towards recovery of Columbia River White Sturgeon in Canada. This program will fill critical knowledge gaps in basic biological information at various life history stages; determine annual levels of natural recruitment in both the mid and lower Columbia River; describe the habitat used at different life stages and determine how this habitat is affected by fluctuating river flows; and develop a conservation aquaculture program to supplement both the mid and lower Columbia River with hatchery produced larvae and juveniles. Results from this long term research program will provide a framework for evaluating and developing adaptive management strategies for white sturgeon in the Columbia River and elsewhere.