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Chapter 4 [PDF: 168 KB]
Filing Manual
National Energy Board
Chapter 4
Physical Projects
An applicant must:
- complete the common application requirements outlined in Chapter 3;
- confirm that the application is for a physical project;
- address section 4.1 - Project Description and section 4.2 - Economic
Feasibility, Alternatives and Justification; and
- identify which Guides within Chapter 4 are applicable (see Figure 2-1)
and provide the required information.
4.1 PROJECT DESCRIPTION
Goal
The application will include a clear description of the project, including:
- project components, activities and location;
- cost information;
- construction schedules; and
- related undertakings.
Filing Requirements
1. Identify and describe the project components, activities and related
undertakings (e.g., pipe, valves, compressors, pumps, access roads and construction camps).
2. Describe the project location and the criteria used to determine the proposed route or site.
3. Describe how and when the project will be carried out.
4. Provide a description of any facilities to be constructed by others
which are required to accommodate the proposed facilities.
5. Provide an estimate of the total capital costs and incremental
operating costs, if applicable, for the following categories:
- pipelines;
- compression or pumps;
- metering and regulating;
- tankage;
- other facilities;
- allowance for funds used during construction (AFUDC) including rates used; and
- capitalized overhead, showing a separate breakdown of the main
cost elements such as materials, installation, land and land rights.
6. Indicate the expected in-service date.
Guidance
Description of Project Components
The description of the project components should address the following:
- what the project is, including:
- a complete list and thorough description of the project components
and activities, including any components or activities required
for the project to proceed (e.g., construction camps, means of
access, electrical grid connections);
- the location and size of any temporary work space;
- a description of replacements or expansions of physical works
and activities that are anticipated over the life of the project; and
- preliminary drawings if available.
- where the project is located, including:
- a general description of the route or facility location, including
identification of:
- general land tenure;
- current land uses;
- nearest residences and communities;
- unique features;
- the positioning of project endpoints for linear developments;
- the location of any alternate routes or sites considered; and
- preliminary drawings, if available.
- how the project will be carried out, including:
- a thorough description of how project activities (e.g., clearing,
hydrostatic testing, watercourse crossings, inspection, monitoring
and surveillance programs) would be carried out during the construction
and operations phases;
- the anticipated workforce (i.e., person days and skills required
for construction and operations activities); and
- a list of other permits, licences, or authorizations that will
be required before part or all of the project can proceed.
- when the project would likely be carried out, including:
- a breakdown of all construction and operations activities by major activity;
- construction and operations schedules;
- a description of how any changes to schedules can affect the project; and
- a description of when proposed decommissioning and abandonment
of the project might take place.
4.2 ECONOMIC FEASIBILITY, ALTERNATIVES AND JUSTIFICATION
Goal
The application includes an integrated discussion that demonstrates
the economic feasibility and justification for the proposed project,
including a description of any alternatives considered.
4.2.1 Filing Requirement - Economic Feasibility
Describe the economic feasibility of the project.
Guidance - Economic Feasibility
The discussion of economic feasibility should combine evidence provided
elsewhere in the application with evidence provided according to Guide A,
Section A.3 - Economics, to show that the applied-for facilities are economically feasible.
In general, the greater the potential impact an application may have
on third parties, the greater the detail on economic feasibility will be required.
4.2.2 Filing Requirements - Alternatives
1. Describe other alternatives that were examined in the context of
economic feasibility and the rationale for selecting the applied-for
project over these other possible alternatives.
2. Describe and justify the selection of the proposed route and site
including a comparison of the alternatives using the selection criteria.
3. For projects for which alternatives to the project has been identified
as a relevant factor to consider in the scope of the ESA under the CEA
Act, describe the alternatives to the project.
4. For a comprehensive study, an assessment by a review panel or for
projects for which alternative means of carrying out the project has
been identified as a relevant factor to consider in the scope of the
ESA under the CEA Act, describe alternative means of carrying out the
project. Where no alternative means of carrying out the project are
available, explicitly state this.
Guidance - Alternatives
Alternatives can be considered in the context of:
- engineering design;
- environmental and socio-economic assessment;
- consultation; and
- economic feasibility.
The level of detail provided should be consistent with the scope of
the project and the potential impact on third parties or the environment.
Alternatives in the Context of Economic Feasibility
In the context of economic feasibility, alternatives would be other
means of meeting the need for the project, such as an alternative:
- design;
- route;
- transportation mode; or
- transmission system that could achieve the same purpose as the proposed facilities.
Route and Site Alternatives
Although a full assessment of all routing options is not required,
where alternative routes or sites are considered, applicants should
justify the selection of the proposed option by comparing the options
using a suite of criteria. When selecting the criteria to compare alternative
routes or sites, consider factors that:
- are related to engineering design;
- are related to economics;
- are not easily mitigated or incur residual effects;
- have greater ecological value due to their rare nature or importance
in the ecosystem;
- are of demonstrated public concern; or
- are of regional concern from a cumulative effects standpoint.
Alternatives in the Context of Environmental Assessment under the CEA Act
In the context of environmental and socio-economic assessment under
the CEA Act, consideration of alternatives may include:
- alternatives to the project, and
- alternative means of carrying out the project.
Alternatives to the project are functionally different ways to meet
the project need and achieve the project purpose. Alternatives to the
project might be considered in the ESA. When providing alternatives
to the project, include an analysis of the alternatives and describe
the process used to determine that the project is viable and is the
preferred alternative (i.e., technically, economically or environmentally).
At this stage, the level of assessment should reflect the more conceptual
nature of the alternatives. The evaluation of the alternatives should include:
- relative costs;
- benefits; and
- environmental effects.
Alternative means are the various ways that are technically and economically
feasible to implement and carry out the project. This could include
alternative:
- locations;
- routes; and
- methods of development, implementation and mitigation.
Alternative means must be considered for comprehensive studies and
assessment by a review panel, and may be considered for screenings
(e.g., when the project involves the selection of a new site or route that
is not adjacent to an existing right of way or facility site). Consideration
of alternative means should include, at a minimum:
- a description of the alternatives and how or why they are technically,
economically and environmentally feasible;
- identification of the environmental effects of the feasible alternatives; and
- the rationale for selecting the preferred alternative.
4.2.3 Filing Requirement - Justification
Provide a justification for the proposed project.
Guidance - Justification
Describe the needs that would be satisfied by the project and demonstrate
that, taking into consideration all viable alternatives available, the
proposed project is the most appropriate option to meet the needs while
serving the public interest.
Next Steps...
Determine which of the Guides included within this chapter are
applicable to the application being filed and complete the necessary
filing requirements. |
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