Despite logging activity and plans for gravel mining in the area, McNab Creek is an appropriate site for an independent power plant, a spokesman for Box Canyon Hydro Corp. told Sunshine Coast Regional District (SCRD) directors last week.
"The reason we chose this site is that the McNab Valley is an industrialized valley -it's been logged for 100 years and continues to be logged," Ron Hankewich, vice-president of corporate development for parent company Elemental Energy, said at the SCRD's planning and development committee meeting on May 16.
The alternative to McNab Creek would be a more remote and undeveloped location, "which we personally think is not appropriate," Hankewich said. "Instead of old growth, we have stands of trees that are 20 or 30 years old. As a company we feel more comfortable with that."
The SCRD board gave second reading that evening to a bylaw that would rezone 250 square metres of Crown land to permit construction of the powerhouse about 30 metres from McNab Creek. The board set the public hearing date for June 11 or 12.
At the committee meeting earlier that day, Hankewich said the company had negotiated a partnership agreement with the Squamish Nation this spring, and the province recently issued a conditional water licence and land tenure.
The project does have limited impact on fish habitat, he said, noting that compensation is usually required at a ratio of two to one.
"The project is expected to have some net positives and some minor net negatives that will cause us to do some compensation," Hankewich said. "We've proposed 25 different options for compensation. We're pleased to do compensation in the McNab Valley, but there may be higher fisheries values outside the valley."
The possibility of compensation for damaged fish habitat taking place "elsewhere" did not sit well with West Howe Sound director Lee Turnbull, and others concurred.
"It's not fair to say it can be some other place," Gibsons alternate director Lee Ann Johnson said. "It's got to be in Howe Sound and I would like it to be in McNab Creek."
Elphinstone director Lorne Lewis also told Hankewich that his "use of the word elsewhere is not on," as "that land is in bad shape and needs all the help it can get."
"We have no problem with that," Hankewich said, calling the feedback "helpful."
Answering questions on cumulative impacts, Hankewich said logging activity creates "very flashy streams," while the power plant will reduce "some of that flashiness" by diverting water out of the creeks.
"Smaller fish like lower velocity water, so by diverting some of the water you're actually improving the water for them," he said.
The project would use stream flow from three tributaries -Marty, Cascara and Box Canyon creeks - to feed a generator located above the confluence of Box Canyon and McNab creeks. The plant is expected to have a capacity of 15 megawatts and would produce enough power for about 5,500 households, the company said.
Benefits include between $8 million and $12 million in tax revenue for the SCRD during the life of the project, with no municipal services required in return. Estimated economic spinoffs will range from $100,000 to $250,000 annually.
Hankewich said a transmission line will cross Burnco's property and his company has signed an easement agreement with the Alberta-based aggregate firm, which also allows it to build a construction camp on Burnco's property.
"That's the limits of the commercial agreement we have with Burnco. We have shared environmental data with them, and vice versa, just as good neighbours," he said.
He said his company has been collecting data in the area since 2003.
Planner David Rafael told directors the company is looking at a start date in 2014.
"There's a desire by the company to move forward as soon as possible," Rafael said.
