Canadian Lawyer InHouse

September 2015

Legal news and trends for Canadian in-house counsel and c-suite executives

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45 CANADIANLAWYERMAG.COM/INHOUSE SEPTEMBER 2015 transmission and storage issues. Green en- ergy is probably the most heavily subsidized in the world," says Gillespie. The industry organization for the wind sector in Canada agrees that it probably could have done a better job in responding to the criticisms in recent years. "That has been a lesson learned for the industry," says Brandy Giannetta, Ontario director of the Canadian Wind Energy Association. A new procurement process put in place by the province that requires community consultations when applying for an energy contract will help address concerns about public involvement, says Giannetta. The process should lead to contracts awarded later this year at prices about half of the ones already in place. The new process requires at least one community meeting when applying for an energy contract. It also includes the "Aboriginal Price Adder," which can permit a developer to increase prices by about 10 per cent if there is a First Nations stake in the project. The changes may potentially reduce the amount of litigation over wind projects, initiated by residents' groups, says Engel. "The hope is that the process will result in the awarding of contracts in locations where the developments are welcomed," he says. However, these changes are unlikely to impact disputes over potential threats to wildlife, even when the developers have taken steps to try to mitigate the impact of a wind project. In the Ostrander case, the company ob- tained an Endangered Species Act permit from the Ministry of Natural Resources. It permitted some harm to the turtles subject to certain conditions, which included set- ting aside a large area of land outside the project for a natural habitat. The permit also requires an "overall benefi t" to the spe- cies so it is better off in the province than before the project started. In the fi rst tribunal hearing, the panel focused only on the impact to the turtle on the project site and the surrounding land- scape in deciding there was serious and ir- reversible harm. The legislative framework involving wind energy projects "does not sit well with the Endangered Species Act," says Douglas Hamilton, who is representing Ostrander Point GP Inc. Obtaining a permit under the ESA "may potentially hurt you in front of the tribunal," says Hamilton, a partner at McCarthy Tetrault LLP in Toronto. In its ruling that sent the matter back to the tribunal, the Court of Appeal upheld the original decision that the project will cause serious and irreversible harm to the turtles. But it also permitted Ostrander to present fresh evidence at the new hearing and for the panel to address the issue of remedy. 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