Whitesand First Nation Community Sustainability Initiative
Pan Canadian Summit on Reducing Diesel in Remote Communities Tuesday January 17th, 2017 Presented by David L Mackett
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
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. Whitesand First Nation
 Whitesand First Nation is located approximately 250 km north of Thunder Bay, Ontario near the northern tip of Lake Nipigon.  1200 community members with, with an on‐reserve population of approximately 450. 2017 The CURRENT SITUATION
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High unemployment rate with little or no chance for meaningful work.
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High on‐reserve population is in receipt of social assistance.
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Many of social assistance recipients are without a grade twelve education. Poor secondary retention rates.
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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
Diesel Generated Power Nearing Max Power Generation Future Housing or other Infrastructure Jeopardized
Little Community Benefits
Local Forest Past forest industry harvested trees and removed for processing elsewhere with very little local benefit.
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.
Status of Poverty in Ontario
Social Assistance Recipients
Poverty
Line
(LIM-AT2011) [1]
Annual Income 2011
Basic Income Gap
Ontario Works (OW)
Single Adult
$19,930
$621 x 12 = $7,452 [2]
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

Lone parent
with one child
(under 6 yr)
$28,185
$1,455.15 x 12 = $17,461.80
[3]
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




Basic Needs – $227
Max Shelter – $372
GST rebate – $22
$12,478
(37% of LIM-AT)
$10,723
(62% of LIM-AT)
Basic Needs – $347
Max Shelter – $584
Ontario Child Benefit
– $91.66
Universal Child Care
Benefit – $100
Canada Child Tax
Benefit – $117.08
National Child
Benefit Supplement –
$181.41
GST rebate – $34
The Catalyst – CSI 5 Cornerstones
Culture
Economic Development
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 the local forest including CSI
increased management participation and responsibility, capacity All cornerstones building and skills advancement, innovation, green energy are integrated production and economic growth.
and equally Society
valued
Environment
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. 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:
 5 MW 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. 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
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
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 2020. Implementing the strategy and achieving our targets will require an all‐of‐
government 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.
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
Sept 2013
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
Dec 23 2015
• Renewable Energy Approval was issued December 23, 2015. First of its kind in Ontario. • Environmental Compliance Approval for the pellet mill was also recently issued. 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. 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, 2015. • The Directive notes the special significance of the project and directs IESO to execute a Power Purchase Agreement. • Began PPA contractual negotiations January 18th 2016 and received draft contract December 23, 2016. 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 CO2
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.
How Did We Get this Far?
Our project has benefited from strong support between Whitesand First Nation and the Federal and Provincial governments. 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
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.
WHAT WILL THIS MEAN FOR WHITESAND
WHAT THIS MEANS TO WHITESAND
Life Changing Opportunity
What Will This All Mean? 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. Meaningful Employment
Details
Employees
Includes co‐gen operators, trades and shared admin/wood yard services
Includes pellet plant operators and shared Pellet Plant admin/wood yard services
Sub‐Total Facilities/ On‐Site
Harvesting (2) 3‐man crews Mechanic Supervisor Bush Haul
Trucks (Drivers) Required: Based on 157,000 m3 @ 40 m3 /load with 3,925 loads/240 days per year; 4 hours / load = 2 loads / shift / truck
Loaders Supervisor Sub‐Total Forestry/Contracted Services
Co‐Gen Plant
Total Direct Employment 17
22
39
6
1
0.5
8
1
0.5
17
56
•
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
Bark Waste / Unmarketable
CHP
~75,000 m3/yr
Waste Steam
Industrial Park Tenants
Local Forest HWD/Veneer Logs
Shipped to Columbia Plywood Plant in Hearst via rail
Merchandizing Yard
Max capacity
Greenhous
e
Armstrong Forest
~267,000 SWD/yr
~98,000 HWD/yr
Free Steam
Pellet Plant
~180,000 m3/yr
Max volume
Slasher
Max capacity
Electric Chipper
Black Spruce Forest
~24,000 FRL HWD
~50,000 HWD/B to B with Resolute
9,000 m3/yr
Loader/Sorte
r
The current LUP is being purchased by WFN. Legal Survey has been completed. The property will become a true bio‐
energy and wood product centre. The various businesses will be owned by WFN and are dependant on each other.
8’ + 16’ Sawlogs
HWD/SWD
Exchange with Resolute Forest Products
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
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.
MUCH MORE
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Pride of Ownership
Environmental Integrity
Empowerment
Community Reinvestment
 Social
 Health
 Education
 Employment
 Culture
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.
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. 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.
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.
2025 ‐ Looking Forward
New subdivision = 50 new housing units
Connected to District Heating Pellet Boiler
Society
Skills Log Homes sourced From Local Forest
Training/ Education
Domestic & International Market
District Heating / Housing Retrofits
Waste Heat Economic Development
Community Power Value Added Economic Development Power Wood
Pellets
CHP
Economic Development Power Green House
Return to Environment
Merchandising
yard
Culture
Local Forest Forest Management and Environmental Services Indigenous and Western Knowledge
Environment
Community Sustainability Initiative
© Whitesand First Nation 2016
Realize Maximum Benefits
From Local Forest
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 Contact
 David L Mackett, Community Sustainability Initiative Whitesand First Nation, [email protected]
 807‐620‐1394
 Craig Toset, Business Development, Whitesand First Nation [email protected]
 807‐627‐4680
© Whitesand First Nation 2016