HomeMy WebLinkAboutPLN 02-16PLN 02-16
Subject: Pickering Nuclear Generating Station -
Status of Activities
February 8, 2016
Page 2
In response to the original announcement, the City retained HDR Corporation to
undertake an economic and financial impact study to understand how the retirement will
impact The Corporation of the City of Pickering, and its local businesses. This Study
was funded by OPG and managed by the City. The Study's key findings were: that the
economic impact of the retirement of PNGS will be distributed across the Greater
Toronto Area; that the Seaton employment lands will play a critical role in offsetting job
losses from the retirement of PNGS; and that annual Payments in Lieu of Property
Taxes (PILTs) that are retained by the City of Pickering start to decline after closure of
the station. The projected loss in PIL Ts is based on information provided by OPG that
has not been confirmed or verified by staff.
A copy of HDR's study has been provided under separate cover. The Executive
Summary of the Study is provided as Appendix I.
It is recommended that Council receive the results of the HDR Report and that staff
continue to monitor the various activities related to the retirement of PNGS and report
back to Council.
Financial Implications: No direct costs to the City are anticipated as a result of the
recommendations of this report.
Discussion
1.0 The Pickering Nuclear Generating Station is expected to shutdown in 2024
In 2010, the Province of Ontario announced that the Pickering Nuclear
Generating Station (PNGS) would not be refurbished and that its shutdown be
planned for 2020. Since then, the operator, Ontario Power Generation (OPG)
has undertaken technical work and investigations into safely extending the life of
the station. An environmental assessment and integrated safety report
confirmed the strength of the station's condition for continued operation past
2020. In January 2016, the Province announced that the operation of the station
will be extended to 2024 to ensure the generation of electricity during the
upcoming refurbishments of the Darlington and Bruce nuclear plants.
After shutdown, work will begin to place the station in a safe storage state. Safe
storage involves removing the fuel from the reactors and draining the water and
liquids from most systems in the station. After approximately 30 years of safe
storage, the next step in the process is dismantling of the structures, with the
final step of restoring the site to a developable state. As the full process takes
several decades, the site is not expected to be ready for full reuse until after
2065. However, some existing structures and areas of the site outside of the
protected area may become available earlier for reuse.
PLN 02-16
Subject: Pickering Nuclear Generating Station -
Status of Activities
February 8, 2016
Page 3
1.1 OPG will present extended operations and decommissioning plans as part
of their license renewal in 2018
PNGS' current five year operating license expires on August 31, 2018. Extended
operations and decommissioning plans will be part of OPG's next license renewal
application to the Canadian Nuclear Safety Commission (CNSC). Staff will
continue to monitor the license renewal approval process and report to Council
as required.
2.0 Used nuclear fuel is stored on an interim basis at the Pickering Waste
Management Facility
The Pickering Waste Management Facility is located within the protected area of
the PNGS. Used nuclear fuel resulting from the operation of the station is
processed and securely stored at the facility on an interim basis. Other waste
from the operation of the station is shipped to the Western Waste Management
Facility in Kincardine and will continue to be shipped to the Kincardine facility
throughout the safe storage and decommissioning periods.
2.1 Nuclear waste will be permanently stored at deep geological repositories
that have yet to be built
Ultimately, all used fuel currently stored at the Pickering waste facility and any
future waste from the decommissioning and dismantling of the station will be
transferred and permanently stored at one of two proposed deep geological
repositories. One repository is for low and intermediate level of nuclear waste,
and the other is for high level waste.
In November 2015, the federal government announced that a decision on OPG's
proposed deep geological repository near the Bruce nuclear site to permanently
store low and intermediate level nuclear waste will be delayed until March 2016.
The earliest that construction of the OPG deep geological repository could start is
in 2018/2019.
Used nuclear fuel currently stored at the Pickering waste facility and future used
fuel resulting from the extended operations of the station will be stored at the
deep geological repository to be proposed by the Nuclear Waste Management
Organization (NWMO). The earliest that this facility may be available is in 2043.
Once the used fuel deep geological repository is in operation, fuel will be
transported from the Pickering waste facility through the City to the permanent
deep geological repository. It is expected that all used fuel will be removed from
the Pickering site before completion of decommissioning. Staff will monitor the
progress of the NWMO and OPG deep geological sites and will report back to
Council at important milestones.
PLN 02-16 February 8, 2016
Subject: Pickering Nuclear Generating Station -
Status of Activities Page 4
2.2 The Pickering Waste Management Facility is proposed to be expanded to
accommodate used fuel from its operations
In preparation for the station's shutdown and decommissioning, OPG is
assessing plans that could result in an application for an amendment to the
Pickering waste facility license to construct a new replacement processing
building, and a new used fuel dry storage building.
The Pickering waste facility holds a ten year Class 1 B Waste Facility Operating
License that is valid until March 31,2018, and which is separate from the license
for the PNGS operations. OPG's future plans for the waste facility will be
presented to the CNSC in their license renewal application in 2017/2018.
3.0 Ontario Power Generation's Repurposing Study is to develop a long-term
strategy and action plan
OPG owns approximately 200 hectares of land on or directly adjacent to the
PNGS plus 100 hectares of water lots. This includes lands that are currently
leased to Hydro One and licensed to the City for park land and recreational use.
The Repurposing Pickering Study initiated by OPG is intended to gather
information and ideas from the community to develop a long-term strategy and
action plan for repurposing available lands during and after decommissioning.
Guiding principles of the Study include ensuring the reuse of the site continues to
benefit both OPG and the surrounding communities, is consistent with OPG's
decommissioning and used fuel management obligations, and that flexibility is
retained for long-term uses once decommissioning has been completed.
3.1 City staff are engaged in the development of a long-term strategy
Staff from City Development and Engineering & Public Works departments along
with representatives from the broader business, research, energy, transportation,
health, and environmental communities are participating on a Technical Advisory
Committee. The purpose of the Committee is to provide advice on future land
use options.
A preliminary assessment of more than 600 land use opportunities identified
during a series of public engagement activities has been completed. The options
recommended for further study all relate to the following four land use categories:
power related; recreational; industrial; and institutional. Options related to
residential, retail and commercial office land uses were not recommended for
further study as these were deemed unsuitable during the decommissioning
period. The Study's next steps include the development of scenarios for a long-
term strategy and action plan to be presented to OPG's Board of Directors.
PLN 02-16
Subject: Pickering Nuclear Generating Station -
Status of Activities
February 8, 2016
Page 5
4.0 The City has undertaken an initial review of the economic and financial
impact on the City of the retirement of Pickering Nuclear Generating Station
In late 2013, following a commitment from OPG to fund a City managed study,
the City retained HDR Corporation to undertake an economic and financial
impact study. The Executive Summary of the Study is attached (see Executive
Summary, Appendix 1). The purpose of the study was to assess and estimate
the economic and financial impact on the City of Pickering. The retirement of the
station is scheduled to take over 40 years and involves shutdown, safe storage,
decommissioning and site restoration. This Study looked at the five year period
leading up to shutdown and then the subsequent five year period where the site
is prepared for safe storage and decommissioning. An economic and financial
model was developed using data collected by the City and OPG, to assess the
impacts on the City.
4.1 A key finding of the study shows that the retirement of PNGS is not
expected to significantly impact Pickering residents and local businesses
Because of Pickering's diversified local economy, HDR's analysis concluded that
the impact from the retirement of the station will not significantly impact local
businesses and residents. As well, since only 8% of PNGS employees reside in
Pickering, the analysis concluded that the economic impact of the retirement of
the station will be distributed more broadly across the Region of Durham and the
GTA than the City of Pickering.
The analysis also noted that the Seaton employment lands will play an important
role in further diversifying Pickering's economy and offsetting job losses from the
station's closure. HDR recommended that the City continue to work with and
engage the Province of Ontario in marketing and promoting the Seaton
employment lands to attract high skilled and well paying jobs to the City. The
City is currently undertaking a sector analysis study for the Seaton employment
lands. The purpose of that study is to identify potential target sectors for the
employment lands in Seaton. Staff is preparing a subsequent report to Council
on this report.
4.2 Although the shutdown of the station may not have a significant economic
impact on the City, it could have a significant financial impact
On most of OPG's lands, instead of paying property taxes to the Region of
Durham and the City of Pickering, OPG makes payments in lieu of property taxes
(PIL Ts). OPG does pay property tax for the lands the City leases for park use.
However, the City reimburses OPG for all of the property taxes including the
Regional share. According to OPG, the annual PIL Ts collected by the City is
expected to steadily decline over the study period by approximately $0.5 million
after shutdown, and significantly more by the end of the decommissioning period.
PLN 02-16
Subject: Pickering Nuclear Generating Station -
Status of Activities
February 8, 2016
Page 6
This projected loss in PIL Ts is significant and is based on information provided
by OPG that ha.s not been confirmed or verified by staff. There is the risk that the
loss of PIL Ts could be even greater. As the time gets closer to the (now) 2024
shutdown, the City may need to retain qualified experts to review the potential
financial impact on the City of the closure and decommissioning of the station.
In the longer term, there may be an opportunity at PNGS to offset or replace the
loss of PIL Ts caused by the shutdown of the plant by strategically repurposing
the site. In addition, construction of long-term facilities for interim waste
management may add a new source of assessment.
5.0 Future Reporting to Council
To ensure that Council is kept up to date on activities related to the retirement of
the PNGS, staff will report at key stages during the station's extended operation,
shutdown, decommissioning, and repurposing.
Appendix
Appendix I Executive Summary, Economic and Financial Impact of the Retirement
of Pickering Nuclear Generating Station Report, prepared by
HDR Corporation, dated June 2015
Executive Summary
Appendix I to
Report PLN 02-16
Economic and Financial Impact of the
Retirement of Pickering Nuclear Generating Station Report