Questions & Answers

The following are frequently asked questions and BC Hydro's answers to the questions about the Bioenergy Call.

BC Hydro's answers to the questions are only for general information and do not constitute legal or other advice.

February 26, 2008

14. Is bioenergy really that clean? Doesn't burning residual wood produce emissions? Will the bioenergy projects have to offset the emissions or scrub them to be considered clean?
Using residual wood to produce bioenergy is a better use of the wood than would otherwise occur. If it is burnt, either through forest fires, slash burning or in a beehive burner, any energy will be wasted. By using wood waste for energy, the wood waste is burned in a hotter, cleaner manner and mechanisms such as scrubbers can be employed to further limit emissions, resulting in a smaller air quality impact.

Our aim is to have bioenergy emissions well below air emission guidelines and to ensure appropriate licensing and permits are in place. To achieve a clean distinction, each facility would have to be EcoLogo certified or would require a letter of designation from the Ministry of Energy, Mines and Petroleum Resources.

13. What is the target volume for the Bioenergy Call?
The target volume for Phase I of the call is approximately 1,000 GWh/year of firm energy. The Ministry of Forests and Range has been working on determining an appropriate volume of eligible fuel types and locations for Phase II.

12. Why is there no detail about changes to the Ministry of Forests and Range's timber tenure process?
The Ministry of Forests and Range cannot discuss proposed legislative changes to the Forestry Act in advance of these changes being tabled in the legislature. This would constitute a breach of parliamentary privilege.

11. Why is there no mention of regulatory certainty in the RFP?
BC Hydro is required to file any contracts signed through this RFP with the British Columbia Utilities Commission (BCUC) under section 71 of the Utilities Commission Act.

In June 2007, the province issued Special Direction No. 10 (SD 10), section 4 of which contained direction to the BCUC with respect to biomass contracts. While BC Hydro will continue to engage stakeholders regarding the regulatory challenges associated with the call, bidders should seek their own legal advice on SD 10, all regulatory issues associated with the RFP and any Electricity Purchase Agreements awarded under it.

10. Why is BC Hydro issuing the Phase I RFP when there are still key unresolved issues of interest to stakeholders?
BC Hydro recognizes that there are components of the Bioenergy Call still to be addressed. We are continuing to work with the Ministry of Forests and Range to make decisions on these components. BC Hydro believes that releasing the Phase I RFP is prudent and will also allow BC Hydro to continue with stakeholder engagement process that will ultimately help with Phase II.

9. When is BC Hydro holding workshops on the Bioenergy Call Phase I RFP?
On February 20, 2008, BC Hydro hosted an information session in Kamloops. The Ministry of Energy, Mines and Petroleum and the Ministry of Forests and Range also participated. The BC Transmission Corporation also hosted a session regarding interconnection matters related to the RFP. The sessions provided an overview of the call and the phased process. A more detailed session open to proponents registered for the RFP will be held on March 26, 2008.

8. BC Hydro recently announced that the Bioenergy Call will consist of two phases. What is the difference between Phase I and Phase II?
Phase I will be a request for proposals (RFP) open to projects that are immediately viable and do not need new tenure from the Ministry of Forests and Range.

July 20, 2007

7. What is the price of bioenergy power?
The price of energy stemming from the Bioenergy Call is not able to be determined at this time, but we hope that the RFEOI and the subsequent call for power will result in competitive prices for this type of energy.

6. Are there bioenergy sources other than wood fibre?
According to the BC Energy Plan, the bioenergy sources eligible for the Bioenergy Call include sawmill residues, logging debris and beetle-killed timber.

5. Will these projects require Environmental Assessment approval or local zoning approval?
Bioenergy projects may require an Environmental Assessment Certificate, depending on the size of the facility. For example, if the facility is greater than 50 MW, it will require an Environmental Assessment Certificate. Projects could also require local zoning approval if they are new sites, whereas existing facilities may not require any zoning changes.

4. What did BC Hydro learn from the RFEOI?
Prospective proponents raised a number of issues. As a result of their feedback, the provincial government and BC Hydro will engage in further data collection, including an inventory of available waste wood; policy analysis, including possible tenure changes to secure the fuel supply; and additional consultation with stakeholders and First Nations. These changes are expected to allow for a robust competition with the greatest number of participants in a Bioenergy Call.

3. How did BC Hydro respond to the RFEOI submissions?
BC Hydro had discussions with the respondents and consulted with key stakeholders, including forestry companies, forestry industry associations, First Nations and Independent Power Producers. Their input will have significant influence as BC Hydro moves forward in designing the Bioenergy Call.

2. What was the response to the RFEOI?
The RFEOI was a success with more than 80 responses. The submissions indicated a strong private-sector interest in developing projects using wood waste in the form of sawmill residues, logging debris and MPB-killed timber.

1. Why did BC Hydro issue the Request for Expressions of Interest (RFEOI)?
The BC Energy Plan directed BC Hydro to issue a RFEOI followed by a call for proposals for bioenergy. The RFEOI was issued to identify potential projects using wood waste in the form of sawmill residues, logging debris and timber killed by the mountain pine beetle (MPB) and to gain input into how BC Hydro could effectively design a call for bioenergy power.