Strategic Issues Table of Contents

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1. Key Background A. NRCan Organizational Chart B. Departmental Response to COVID 1. NRCan Return to the Workplace Plans 2. NRCan Response to COVID-19 3. Response and Recovery Analysis—Re-entry and Resumption C. Issue Briefs Energy 1. Projects: Line 3, Enbridge Line 5, Keystone XL 2. LNG Canada and Coastal Gas Link 3. Offshore Health and Safety 4. Lower Churchill Projects/Financial Restructuring 5. Oil and Gas Sector Deep Dive/ Petroleum Moonshot 6. G20 Energy Ministerial 7. Clean Energy Ministerial 8. Strategic Electricity Interties 9. Hydrogen Strategy 10. Nuclear Energy / SMRs 11. Canadian Centre for Energy Information 12. Clean Fuel Standard 13. Emissions Reduction Fund Forest 14. Overview of CFS programs 15. Canada-U.S. Softwood Lumber Dispute 16. Status of Pulp and Paper 17. Wildland Fires 18. New SME program—COVID-19 Forest Safety Measures Mining and Minerals 19. Critical Minerals 20. Canadian Minerals and Metals Plan 21. Batteries Horizontal and Corporate 22. Trans Mountain Expansion Pipeline

23. UNDRIP 24. [redacted] 25. [redacted] D. Key Contacts and Stakeholders E. Select Deputy Committees 1. Committee Governance 2. Departmental Audit Committee (DAC) 3. Performance, Measurement, Evaluation and Experimentation Committee (PMEEC) 4. DM Economic Frameworks and Inclusive Growth 5. DM Climate Change and Energy 6. DM Indigenous Reconciliation 7. DM Impact Assessment 8. DM TMX F. Ministerial Budget Letters to Minister of Finance 1. [redacted] 2. [redacted] G. Departmental Planning and Reporting 1. NRCan Departmental Plan 2020-21 2. NRCan Departmental Results Report 2018-19

H. Mandate Tracking 1. Mandate Commitment tracker 2. Mandate Letter Commitment NRCan Contribution

2. First 90 Days Overview A. Strategic Direction 2-Pager B. Cabinet Business 1. Cabinet Forecast 2. [redacted] C. TB Business 1. TB Sub Priorities 2. [redacted] 3. [redacted] D. NRCan Litigation Horizon E. Regulatory Priorities

1. Regulatory Priorities (GIC) 2. Clean Tech Regulatory Review F. Calendar of Events

G. Key Contacts to meet in first 90 days

SECTION 1

Key Background Organizational Chart NRCan Organization

Deputy Minister Tremblay, Jean-François Associate Deputy Minister Tupper,Shawn

Executive Director VACANT General Counsel Beaton, H.

Departmental Assistant VACANT

Director Senior Advisor to the Fee. S. / Villanueva, S. DM Métivier, L. (LOA)

ADM, Canadian ADM, ADM, Corporate ADM, Low Carbon ADM, Strategic ADM, Energy ADM, Lands and ADM, Major ADM, Strategic ADM, TMX Project Chief Audit DG, Indigenous Chief Scientist Forest Service Communications & Management & Energy Petroleum Policy & Technology Sector Minerals Projects Policy & VACANT Executive Affairs & Pant, V. MacNeil, B. Portfolio Services and CFO Johnson, M. Investment Office Leyburne, D. Labonté, J. / Mason, G. Management Innovation Acting - Hargrove, G Gould, M. Reconciliation Ritchot, J. Hurdle, L. Khosla, J. (LOA) Office Des Rosiers, F. Bruce, A. Burack, E DG, Office of Energy DG, Electricity DG, CanmetENERGY - Sr. Dir, Impact DG, Science Policy DG, TMX Policy DG, Atlantic Forestry DG, Canadian Wood DG, Communications Chief HR Officer & Chief Information Efficiency Resources DG, Petroleum Ottawa DG, Explosives Safety DG, Canada Centre DG, Economic Dir, Audit Governance Dir, Strategic Assessment & Dir, Outreach and DG, CanmetMINING Noad, L. (SD) Centre Fibre Centre Integration Services Officer & DG Henry, J. Presutti, M. Resources Haslip, D. and Security DG, Project for Mapping & Earth Analysis, Data & Jones, L. Evaluation Engagement DG, Human Habib, M. Science Capacity Fullerton, P. Caron, L. O'Neill, P. Observation Research VACANT Samuel, G / Garvin, D. VACANT Ward, J. Resources Reid, J. / Hendriks, P. (LOA) Vrany N. Agreements & Public Acting - Zeroual, K. Cloutier, C. (SEO) Acting - Lefebvre, A. VACANT Outreach Loubier, E. Gadoury, J. Labelle, S. DG, Great Lakes DG, Laurentian Sr Dir, Audit Operations Dir, Science Forest Centre Forestry Centre Dir, Equipment Dir, Nuclear Energy Dir, Canadian Oil, Sr Dir, Operations Dir, Explosives Special Advisor Governance Policy Dir, Corporate Dir, Business & VACANT Galarneau, D. St-Pierre, D. James, B. Cameron, D. Refining & Energy Pemberton, M. Regulatory Dir, Economic Classen, A. Dir, Science Policy & Communications Dir, Corporate Security Program Integrity Acting - Jones, L. & Communications Integration Dir, HR Services & Dir, Workplace Security VACANT Analysis Carew, L. & Emergency Dir, Eastern Canada Office Pharand, C. Roberge, A. Systems Management & VACANT Sanscartier, E. (AO) Management VACANT VACANT Klassen, L. Wellness Dir, Uranium & DG, CanmetENERGY - Sr. Dir, Indigenous Dir, Planning & Dir, Planning & Dir, Stakeholder VACANT Dir, Housing DG, Policy & DG, Strategic VACANT Radioactive Waste Varennes Service Centre Operations Operations Engagement & Acting - MacKenzie, A. Hulan, J. / Gillis, C. (LOA) Sr Dir, Pipelines, Gas Economics Initiatives and Dir, Canada Centre Dir, Forest Science Acting - Desormaux-Dufour, Delaney, J. & LNG Millette, J. Lavoie, K. VACANT Bergeron, M. Public Environment Koutsavlis, P. Management for Remote Sensing Querbach, K. Sr Dir, Corporate HR C. Evans, C. Dir, Western Canada Harms. C / Reid. R / Services Benoit, M. Babiarz, K. (SEO) Cimon-Kingsley, S. Deputy CIO Jeanty, R. Carey, C Dir, Industry & Sr Dir, Renewable & DG, DG, Northern DG, Pacific Forestry Armstrong, M. Transportation Electrical Energy Sr Dir, Offshore CanmetMATERIALS Dir, Canadian Forestry Centre Centre Talbot, R. Bernier, A. Petroleum Dauphin, P. Geospatial Data Norton, M. Beck, J. DG, Portfolio DG, Strategic Policy Management Infrastructure Management & DG, Finance & DG, Real Property & & Knowledge Sr Dir, OEE & Gardiner, T. Dir, International Dir, Management Gera, S. Corporate Secretariat Procurement Workplace Services DG, Office of Energy Management Demand Policy and Affairs & Trade Services Clément, J-C. Chennette, G. Hatton, T. Research & VACANT Director of Analysis Leboeuf, L. Barros, M. Director of DG, CanmetENERGY - Development Dir, Federal Operations Hanna, A. Operations Devon Wilson, A. Geospatial Platform VACANT VACANT Siewe, C. Dir, Sustainable Dir, Minerals & Sharpe, J. Dir, Financial Dir, Real Property DG, Energy Policy DG, International Mineral Resource Dir, Policy Analysis Dir, ATIP Planning & Metals Statistics & Research VACANT Bélair, E. Energy Development DG, Planning, Najm, A. Dir, Energy Science Heath, S. Katz, S. DG, Trade Economics Corporate Resource VACANT VACANT Operations & & Industry Management Acting - Wood, D. & Technology Dir, GeoBase Information Waring, J. Francis, G. / Mensah, S. Sr Dir, Operations Programs Beaulieu, A. Dir, Policy Gaskin, P. / Lefebvre, A. McDonald, N. VACANT Sr Dir, Strategic Dir, Strategy & Planning Leadership & DG, Public Affairs Dir, Financial Policy, Dir, Energy & Economic Policy Dir, Europe, Asia & VACANT Reporting Vaillancourt, D. Reporting & Pagé, C. DG, External Policy & Analysis Multilateral Dir, Energy Zinck, K. DG, Strategic Policy Internal Controls Partnerships Dir, Forest Information Dir, Economic Subramani, R. Gagné, J-F. Technology Policy MacDonald, D. Management Griffin, D. Gauvin, C. Le Bris, S. (SEO) Analysis Acting - Sanscartier, E. DG, Indigenous Samuel, G. (SEO) Mathey, A-H. Dir, Critical Minerals Dir, Issues Dir, China & the Ghattas, A. Partnerships Offi ce - Acting - Buzzell, M Dir, Energy & Management Sr Dir, Financial Americas West Dir, Dir, Strategic Dir, Indigenous Young, N./ Muir, A. (SEO) Renewal & Capacity Environment Policy Rau, M. (LOA) VACANT Intergovernmental Science Policy Dir, Planning & Forestry & BioHeat Building Emerson, A. (LOA) DG, Strategic Policy Surveyor General & Acting - Classen, A. Affairs Development Renewal Program VACANT Acting - O'Keefe, P. & Operations DG Pfeiffer, J. McClelland, S. / Gowing, VACANT Dir, Public Affairs Bilmer, B. Dir, Energy Security Gilsenan, R. Gagnon, J. R. Joanisse, M. Sr Dir, Financial, Sr Dir, Strategic Piercey, C. Dir, Major Project Dir, International Dir, Trade & Procurement and Energy Policy G&C Services and Monitoring Affairs International Affairs Scharf, D. Dir, Climate Change Regional Dir/Deputy Estrin, K. (SEO) Biggs, J. Systems VACANT Impacts & Surveyor General - Nault, M. Acting - deShield, C. Adaptation East DG, Clean Fuels DG, Planning Sr Dir, Planning & Jennings, C. Gingras, M. DG, Innovation VACANT Dir, MPMO - West Delivery & Results Operations Nanduri Bhatt, M. Regional Dir/Deputy VACANT Routhier, A. Mailloux, M. Dir, Polar Cont Shelf Program Surveyor General - Acting - Short, K. Mate, D. West Dir, Clean Fuels Minnie, S. Dir, Strategic Dir, Major Project Dir, Clean Growth Policy Monitoring Planning, Results Exec Dir, Canadian Hub Operations Vieira, P VACANT Analysis & Risk Hazards Christie Sajan, A. Acting - Management Information Service Maragh, M. Dir, Special McCormack, D. Programs VACANT DG, Geological Survey of Canada Lebel, D. Sr Dir, Fuel Diversification VACANT

Dir, GSC Atlantic Dir, GSC Calgary Locke, S. Dehler, S.

Dir, GSC Central Dir, GSC Northern Canada Canada Marquis, G. Richard, L.

Dir, GSC Pacific Dir, GSC Québec Talwar, S. Couture, R.

Last Modified September 2020 Departmental Response to COVID 1 NRCan’s Response to COVID-19 – The Team

WHAT? Operational Role The direction and advice Strategic Role  Identify the operational challenges from the Public Health Agency of Canada and the related to remote work and Office of the Chief HR  Workplace Reintegration Strategy implement solutions Officer are at the heart of  Develop the protocols  Prepare the buildings all the team’s work.  Redefine the future of work  Manage the cases (potential and  Support employees and managers confirmed) WHO?

Project/Change People Management Management Deputy CMSS ADM Labour Relations – Building Management – Workplace Ministers Health and Safety – Internal Communications – Environmental Management – Security – IT 2 NRCan’s Response to COVID-19 – The Work Accomplished

• Emergency Plan • Solutions to Reintegration Strategy: • Plan for 580 Booth Street • Revision and remote work • Principles June update of Business operational issues - • Phases • Gradual start of Continuity Plan (HR, IT, Finance • SBO/DG engagement reintegration September April • First survey and • Preparation of and procurement) • Protocols - communications, • GCcollaboration • Building preparation results sharing

manager’s guide July • Communications • Info to employees • Preparation for to employees and • Remote next phases

Before pandemic Before the managers training/management • Review the Start of the of the pandemic Start response to cases (potential and confirmed)

The pandemic situation is unique and NRCan’s response is constantly evolving to adapt to changes while preparing for what could come next. In the weeks and months to come, the team will focus on providing a better support to employees working remotely by offering them better tools, training opportunities and wellness support as well as preparing for the transformation of the workplace. 3 NRCan’s Response to COVID-19 – The RTW Strategy Principles

Health and safety of employees is the Accommodating the needs of individuals Transparency: Preparing and informing main consideration in all decisions and families: consideration for employees’ managers and employees for a RTW is as regarding a return to the workplace (RTW) particular personal circumstances essential as preparing the physical space Phases

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Employees whose Employees whose Employees who can Employees who can perform Every employee is fully functions have been functions have been perform most of their most of their duties remotely productive working duties remotely but for completely disrupted by partly disrupted by the but for whom a RTW would either from the office or whom a RTW would the remote work remote work situation. somewhat increase remotely greatly increase situation. productivity productivity

The department’s workforce includes technicians, researchers, engineers and several field workers. Those employees in particular have seen their work partially or completely disrupted from having to work remotely, which led to the decision to plan a quick return to the workplace for those functions while ensuring the health and safety of all employees. 4 NRCan’s Response to COVID-19 – The RTW Strategy

NRCan has employees in 49 buildings across Canada, including office buildings and scientific facilities. Each Senior Building Officer was responsible for the preparation of the Building Re-entry Plan which demonstrates the following: The buildings are ready: All the tests are completed, the ventilation and cleaning procedures are efficient and signage is installed. The protocols and procedures are in place: Protocols are in place throughout the department; however, some buildings, mostly the scientific facilities, have implemented particular procedures to meet their needs. Those protocols and procedures deal with the use of common and shared spaces as well as the safety and control measures in place to monitor the comings and goings and protect the staff. The employees are ready: Each employee has had the opportunity to meet with his or her manager to discuss the level of disturbance and the personal and particular circumstances in order to determine the phase for the reintegration in the workplace. The employees have received all the information about the protocols and procedures, often during orientation sessions, and participated in the information sessions on the RTW Strategy. 5 NRCan’s Response to COVID-19 – The RTW Status

43 of 49 NRCan buildings have started their reintegration in the workplace: 6 buildings in phase 0 (no employee in phases 1 and 2) 34 buildings are in phase 1 9 buildings are in phase 2 20% of employees have returned to the workplace, the vast majority of those people work in scientific facilities Excluding the buildings at 580 and 588 Booth Street, 33% of the workforce is back in the workplace. 3.6% of employees at 580 and 588 Booth Street are back in the workplace (IT Service Desk, Facilities, Security, Finance, Cabinet business, Kimberley Process, corporate services). More than 90% of office employees (across the country) do not have to return to the workplace before phase 5. Some have resumed field work depending on the level of risk. No case of COVID-19 among the employees who have returned to the workplace. 6 NRCan’s Response to COVID-19 – The Next Steps Second survey (end of September) to solicit feedback from the employees and better understand their needs Information sessions for employees and managers (RTW update, 699 leave, ergonomics, services, etc.) Support for employees working remotely Etiquette for remote work Equipping the employees (laptop computers, ergonomic equipment) Training Physical and mental health support Options for face-to-face meetings Options to access a work station on an ad hoc basis Define the future of work for NRCan Transform the workplace NRCan’s response to COVID Pandemic

Policy Challenges (SPI) - June 30, 2020 2 Purpose

To outline:

1. COVID impact on natural resources

2. Policy implications for recovery

3. Departmental approach to pandemic 3 1 - COVID impact on Natural Resources

Loss of capital and/or revenue - liquidity issues have dramatic impact on SMEs and/or pre-revenue firms - some producers operating below cost

Demand decline/weak prices - production curtailments and facility closures - supply chains disrupted and access to export markets impacted - capital budgets cut and infrastructure/projects delayed 4

Reduce government revenues Drivers of change and disruption and ability to provide stimulus for nascent industries (most Change demand for natural acute for provinces that rely on resources petroleum revenues). Increase operating costs due to Reduced future growth pandemic response measures prospects and project Investment development potential Accelerate investment in Capital automation and remote Increase risk of foreign technology takeovers of Canadian firms Increase demands to address inequality in response to job losses

International norms Societal International challenged (e.g., trade, open Change Dynamics borders) Uncertain global commitment to climate change and clean energy transition Trends towards entrenching exclusive trading blocks and self-sufficiency 5 Canada’s Challenge

Increasing Competitiveness maintain/gain market share even with demand shocks, growing protectionism and accelerated push for shortened supply chains (“re-shoring”).

Advancing Innovation to retain/improve international cost competitiveness, create additional value and drive transition to low carbon economy by maintaining domestic innovation capacity.

Improving Sustainability for a “Green Recovery” build an economy that produces the environmentally and socially responsible products and services Continues to make necessary investments to meet climate change targets 6 2 - Policy considerations: likely to remain the same

Climate change remains a priority - science of climate change and costs of mitigation/adaptation have not changed.

Energy transformation and low carbon economy (e.g. oil and gas sector exposure to societal changes now)

Sources of patient capital remain a key driver of innovation

Innovation is key for competitiveness and addressing climate change in a post-pandemic world

Job creation and a highly skilled workforce to support worker transition to a low carbon, digital economy and build a more inclusive workforce 7 Policy considerations: likely to change

[redacted] 8 3- Departmental response

RECOVERY STABILIZATION RE-ENTRY & BEYOND

 Implement a structure for tracking performance in short and long term : DRF, Corporate Reporting, Audits & Evaluations.

 Initiatives are different in each period and will require different measurement. • Government’s horizontal measures will impact the approach to the assessment framework and data collection. • Transparent data collection, analysis and reporting.

 An opportunity to transform our data collection & use through automation and visualization. Lessons Learned from the 2008 Financial Crisis 9 Although these crises have similarities by nature they are different. Our reporting approach must also be adjusted (see annex A)

2008: financial crisis 2020: COVID-19 crisis

Primary source of shock: financial system Financial System Economy

Policy Fiscal/monetary policy actions Action Inclusive growth and recovery

Liquidity Acute lack of liquidity Environment Health 10 Key COVID-19 Related Initiatives

NRCan Initiatives NRCan Operations Federal Government Support  Program Expenditures Preparedness and Response to COVID 19 To all sectors, include: Providing direct financial support through existing or new NRCan programs, such as the Emissions Reduction Fund  Employee health and HR  Canada Emergency Wage Subsidy  Science  Extending Work-Sharing Program Refocusing science and sharing expertise, such as innovative work in  Critical Infrastructure  Business Credit Availability Program our forestry labs, geospatial data, AI analysis  Critical Functions  Canada Emergency Business Account  Policy Development  Canada Emergency Commercial Rent Assistance Working in partnership with OGDs to develop policy directions, such  Governance  Large Employer Emergency Financing Facility as work on supply chain, sectoral analysis, Youth Employment, Green  Funding for Research and Science recovery  Communications  Scientific Support  Industry and Indigenous Engagement Sector Specific Supporting industry engagement, such as Technical Briefs, Economic  Return to Workplace Oil & Gas Sector Tables, as well as work with remote communities, especially in  Cleaning up orphan/inactive oil and gas wells the North

 Guidelines Clean Technology Contributing to development of guidelines, such as Essential Services,  Assisting innovative and early-stage businesses Personal Protective Equipment

 Engagement with the provinces Engaging with the provinces to support initiatives in response to COVID 11

Annexes Annex A: Lessons Learned from 2008 Financial Crisis 12 Programs Experience NRCan Performance Measurement Experience Overall, Canada’s Economic Action Plan (CEAP) was effective. . Jobs created or maintained: 248,000 jobs, exceeding goal of 220,000. . NRCan’s performance story was lacking information on impact. . Fiscal multiplier: Estimated at 1.0 for CEAP. . Performance measures for NRCan programs were not adjusted to context. . Renewal/extension of measures introduced under CEAP. . Metrics of success in delivery of CEAP were from external sources, with limited data on impact. Challenges in delivery related to speed and complexity. . Additional measures outside funded programs not captured or assessed. . Significant increase in workload on federal departments. . Limited focus on performance measurement and results analytics. . Increased risk due to speed of program design and delivery. . Focus on “shovel ready” projects but some projects still started late.

OAG Experience NRCan Audit & Evaluation Experience (2010 and 2011 Fall Reports of the OAG) . Audits and evaluations assessed the effectiveness and efficiency of CEAP-funded programs, but not as contributions to economic stimulus. . Reports were timely but information was incomplete. . Greater flexibility exists today, with the TB Policy on Results (2016), to . Analysis of risks was important, well done and well supported use new evaluation approaches for future work. . Departmental Performance Reports (DPRs) from 2009-10 to 2010-11 did . Audit of Implementation of the EAP 2012 found that NRCan’s not provide an overall picture of CEAP performance. implementation was supported by a management framework, with cost . PCO and Finance provided a summary of CEAP spending results in the reduction initiatives implemented as set out in plans and in compliance Annual Financial Report and Public Accounts in Fall of 2011 and 2012. with guidelines and policies. • 13 Annex B – Sector specific impacts (1) Impacts Risks

Demand shock Liquidity/Uncertainty Forest management and wildfire • Disrupting supply chains and access to export • Liquidity issues place additional pressures on sector • Disrupted tree planting could affect medium-term fibre markets (e.g. commodity price decline, curtailments with already tight margins – resulting in supply; potentially compromised wildfire management poses and job impacts); impact felt throughout the forest deferred/cancelled capital investments. a risk to forests and communities. sector supply chain (from loggers/tree planters to paper manufacturers). Trade and supply chain weakness Continuing Weak Export Demand

Forest • Prolonged demand weakness for most forest • Weakened demand for most forest commodities (in export commodities (in export reliant sector), including from reliant sector). lagging US growth. • Disruptions to supply chain components (e.g. ship Access to Markets availability, trucking) exposing forest sector firms to • Key forest supply chain components (e.g. ship availability, increased uncertainty and risk. trucking) exposing forest sector firms to increased uncertainty and risk.

Capital and/or Revenue Prolonged Recovery Phase Reduced Competitiveness • Issue with capital flows in an uncertain/volatile • [redacted] • Higher operational costs (e.g., higher costs from enhanced market. • Lack of capital for service firms may result in loss of safety measures including paying employees to stay home • Reduced revenues put some producers below cost expertise and technology. for public health reasons) not borne by foreign and reduced prices impacts ability of juniors to raise competitors. equity Minerals Mines and Annex B – Sector specific impacts (2) 14 Impacts Risks Low US Growth Prolonged Recovery Phase Demand decline/weak prices • Delayed U.S. recovery slows Canadian recovery given • Potentially permanent supply chain impact • Low oil prices coupled with weak demand integration with US energy market. • Lost investment in production and project development • Natural gas impacted by market conditions and some [redacted]. decline in demand. Geopolitical/Reputational • Entire supply chain impacted (e.g., service • [redacted] Permanent Demand Change companies losing revenue); capital budgets cut • Societal behaviours change (i.e., commuting habits, Second COVID-19 wave telework, air travel) permanently reducing demand for Oil & gas • Potential decline in government revenues (e.g. oil and gas) transportation fuels. will impact ability of governments to address second wave (including through stimulus)

Price and demand shocks Climate Commitment and investment • Slowdown in economic activity & energy demand • Uncertainty around global energy outlook and focus on short term economic goals (e.g., jobs now) may weaken global • Demand contraction (from major power users, for commitment to energy transition services, and for low carbon fuel) • Supply-chain disruption and labour shortages; Low US Growth Infrastructure project delays • If US recovery lags, conditions for Canadian energy exporters will be more challenging carbon

- • Economic goals may weaken

energy Access to capital • Liquidity issues; trouble meeting fin. obligations Low • Drop in stock prices and reduction of profit margins

Loss of Capital and/or Revenue Prolonged Recovery Phase (esp. Low Oil Price) Constrains Climate Commitment and investment • Small and/or pre-revenue companies lack financial Capital • Uncertainty around global energy outlook and focus on buffer; Liquidity issues are more quickly fatal in • Tight business environment and low oil price reduces short term economic goals (e.g., jobs now) may weaken this business than others amount of potentially available patient capital and spending global commitment to energy transition. on R&D (esp. from oil and gas sector); [redacted]. Clean tech 15 Annex C - Supply Chains: COVID-19 Impacts

• Highlighted vulnerabilities; over-reliance on a single market or supplier – U.S. and China • Supply chains generally remained operational predominately demand-side shocks • Sectors’ classification of “essential” and open Canada-US border key to business continuity Impacts • Production curtailment, storage capacity, sourcing of critical inputs, and transportation • New business opportunities - diversification of manufacturing

• [redacted] • [redacted] • Trade diversification; capitalize on regionalization FTA opportunities (CETA, CPTPP, Building CUSMA) Resiliency • [redacted] • DM Committee on Economic Framework for Inclusive Growth – supply chain focus COVID RESPONSE AND RECOVERY ANALYSIS—RE-ENTRY AND RESUMPTION:

To address the COVID-19 pandemic affecting the natural resource sectors and their economic recovery, NRCan worked closely with OGDs and stakeholders to facilitate the safe re-entry of workers as economic activities resumed across provinces and territories. By engaging working partners on resuming activities during the COVID-19 pandemic, NRCan provided support to the natural resource sectors in a number of ways, including:

 Guidance for Industry: MPMO worked closely internally with the sectors and externally with Indigenous Services Canada and the Public Health Agency of Canada on a compendium of federal, provincial and territorial guidance and resources for industry to ensure that workers and the communities in which they operate are protected at all times. For more information, please visit: https://www.nrcan.gc.ca/our-natural-resources/covid-19-resources-canadas- natural-resources-sectors/22779. We also worked with ISC on its guidance for industry and communities: https://www.sac-isc.gc.ca/eng/1592487905243/1592487940872 https://www.sac- isc.gc.ca/eng/1592488460967/1592488485841.

 Monitor Workplace Activities: MPMO prepared weekly maps for the Minister and Deputy Ministers to identify COVID-19 measures in the Natural Resources sectors, by province. [redacted] We also regularly monitor developments at natural resources operations and major projects work sites and work camps, including at Kearl Lake (AB), Keeyask Hydro (MB) and Trans Mountain Expansion (AB, BC). IARS and MPMO worked closely with ISC and the Government of Manitoba to address Indigenous groups’ concerns related to reopening at the Keeyask site.

 Expand Testing: MPMO and LMS, worked collaboratively to explore the potential for piloting on-site COVID-19 testing, in particular for northern and remote mining operations, by engaging with industry and federal health authorities.

Issue Briefs LINE 3 REPLACEMENT PROJECT ISSUE The project involves replacing aging pipeline infrastructure from Hardisty, Alberta. A new pipeline will be built to modern safety standards and restore the capacity of Line 3 creating market access for additional Canadian oil in the US Midwest. The Government of Canada approved the C$9 billion Line 3 Replacement Project on November 29, 2016 subject to 89 binding conditions. Enbridge has completed the project in Canada and began shipping oil on December 1, 2019. However, approvals in Minnesota have been delayed for several years due to legal challenges and opposition by environmental and some Indigenous groups. In June 2018, the Minnesota Public Utilities Commission (PUC) issued a certificate for the project that was later struck down by the courts and then reinstated in May 2020. Meanwhile, several state agencies are reviewing construction permits for the project, which could delay completion of the project into next year and beyond. BACKGROUND Project Background  The Line 3 Replacement project will replace the 50 year old 1660 km oil pipeline from Hardisty, Alberta to Superior, Wisconsin. The current pipeline is running at a reduced pressure. A new pipeline will be built to modern safety standards and restore the capacity of Line 3 to its original operating capacity of 760,000 barrels per day (b/d).  The $9 billion CAD Line 3 Replacement Project created an estimated 7,000 construction jobs in Canada (approximately 20% of the workforce was Indigenous). Once completed in the U.S., the project is expected to bring 370,000 b/d of new export capacity. Construction in the U.S. began in August 2017. The in-service date is expected in the second half of 2021.  Following Government approval in November 2016, Enbridge began construction of the project in 2017 and on December 1, 2019, the Canadian segment of the Line 3 Replacement project went into service. Permitting and Legal Challenges in Minnesota  Since submitting its application in 2014, the project has come across opposition in Minnesota from some Indigenous groups, environmental groups and climate change activists. The proposed route has been changed to avoid certain Indigenous reserves but is still a cause for concern for other Indigenous groups in northern Minnesota.  Enbridge requires 29 state and federal construction permits in the state.

 The company has a valid Presidential permit and state certificates in North Dakota. The Wisconsin segment was constructed and completed.  In June 2018, the Minnesota PUC issued a certificate of need and a route certificate for the project, selecting the company’s preferred route with modifications around certain Indigenous reservations. In January 2019, the PUC issued an order confirming the new, mutually agreed route between Enbridge and the Leach Lake Nations and added conditions to the company’s certificates.  However, a successful legal challenge by project opponents caused the state court to later strike down the certificate that was reinstated in May 2020. Meanwhile, several state agencies are reviewing construction permits for the project, which could delay completion of the project into 2021 and beyond. Fresh legal challenges to the project were filed by project opponents to state court.

NEXT STEPS Concurrent with the legal process, state agencies (e.g. the Minnesota Pollution Control Agency and the Minnesota Department of Natural Resources) and federal agencies (e.g. U.S. Army Corps of Engineers) are expected to advance remaining steps in their respective permitting processes. Pre-construction activities in Minnesota (over 600km) and North Dakota could begin concurrently in late 2020, pending receipt of all construction permits and approvals. The Government of Canada continues to follow the project closely and has filed submissions in support of the project to state regulatory processes in Minnesota in 2017 and 2020.

Line 3 Replacement Project – US Segments

Line 3 Replacement Project – Canadian Segment

ENBRIDGE LINE 5 - MICHIGAN

ISSUE Enbridge’s Line 5 pipeline – a 65 year-old pipeline carrying Canadian oil and natural gas liquids from Superior, Wisconsin to Sarnia, Ontario – crosses the water of the Great Lakes at the Straits of Mackinac. Two significant events – the 2010 Kalamazoo River oil spill from Enbridge’s line 6B and the 2014 Flint water crisis – have made water quality a highly prominent political issue. In April 2018 and May 2020, accidental anchor drops resulting in minor damage (not spills) significantly elevated public perception of spill risk. In response, Enbridge and the former Republican state government agreed to construct a tunnel under the Great Lakes to house the pipeline. The current Democratic administration is actively pursuing legal action to shut down Line 5, which would have significant negative implications for Canadian energy security. The Government of Canada submitted letters in support of the Line 5 tunnel project to Michigan regulatory agencies, in August 2017 and August 2020.

BACKGROUND Project Background  Enbridge Line 5 carries 540,000 barrels of Western Canadian light crude oil and natural gas liquids per day from Superior, Wisconsin to Sarnia, Ontario, supplying Ontario, Quebec and the Great Lakes states.  Line 5 delivers 55% of Michigan's statewide propane needs, and 65% of propane for home heating in the Upper Peninsula region. It also supplies essential feedstock for the production of jet fuel for the Detroit airport and feeds refineries in Michigan and Ohio.  In Canada, the pipeline provides essential feedstock for Sarnia’s refinery and petrochemical complex for the production of petroleum products and propane.  There are four refineries in southwest Ontario with combined capacity of 410,000 b/d that rely to varying degrees on Line 5 for crude oil and petroleum product shipments. These refineries primarily process light crude which is transported through Line 5. Quebec refineries also receive some crude oil that originated in Line 5. In addition, Line 5 provides essential Natural Gas Liquids for the production of propane and other petrochemical products in Canada and the U.S.  Other transportation alternatives (marine, rail) would cost more and would take some time to put in place. Michigan concerns  Line 5 is particularly notable for passing under the environmentally sensitive Straits of Mackinac, which connect Lake Michigan to Lake Huron. The

underwater segment has operated safely since 1953. However, following Enbridge’s large inland spill in Kalamazoo, Michigan in 2010, many in Michigan have expressed concern about the risk of a similar catastrophic spill in the great lakes from the 7.2km underwater section.  On December 12, 2018, outgoing Michigan Governor Rick Snyder signed legislation creating the Mackinac Straits Corridor Authority to oversee the construction and operation of a utility tunnel located beneath the waters of the Straits of Mackinac. The utility tunnel would house a replacement for the underwater section of Line 5, eliminating the risk of a spill into the Straits of Mackinac.  Enbridge and the previous Michigan administration completed all of the agreements needed for the operation of the Straits tunnel. Enbridge would fund the design and construction of the tunnel and operate it under a long-term lease, and the existing dual pipelines Straits segment would be permanently deactivated. Michigan action to shut down Line 5  Since coming into power in January 2019, newly-elected Michigan Governor Gretchen Whitmer and her Attorney General Dana Nessel (also an elected official with authority to act independently of the Governor’s office) have filed several lawsuits attempting to shut down the existing Line 5.  The administration has also unsuccessfully attempted to halt regulatory work on the tunnel over the past two years, and Enbridge continues with engineering and permitting work in preparation for the tunnel construction.  Governor Whitmer struck an Upper Peninsula Energy Task Force in 2019 to assess Michigan’s current energy needs and provide advice on alternatives. Its first report, in April 2020, outlined alternatives to the state’s propane supply should Line 5 be shut down. The task team is set to release a second report in 2021.  In late June 2020, Michigan’s Attorney General was successful in obtaining a Temporary Restraining Order in state court to shut down Line 5 for several days. The shutdown affected fuel production in Ontario refineries and disruption in Natural Gas Liquids delivery upstream that cascaded to other jurisdictions, including Saskatchewan. NEXT STEPS Enbridge is continuing pre-construction work in the Straits of Mackinac and has applied for state and federal permits to preserve the schedule to complete the tunnel at the earliest possible date (expected to be in 2024). Court action and negotiations attempts continue in the background. NRCan and GAC have coordinated efforts to assist in finding a resolution to the issue and ensure that Line 5 remains in operation to secure regional energy supply. In

2 summer 2019, NRCan’s minister and the Ambassador spoke with the Governor emphasized the importance of energy security and offered their assistance. The Ontario, Quebec and Ohio governments are also working to ensure regional fuel supplies are not placed at risk.

KEYSTONE XL PIPELINE PROJECT ISSUE The Keystone XL pipeline project would bring additional Canadian heavy oil to the key refinery market on the US Gulf Coast. The Canadian portion of the Keystone XL (KXL) pipeline was approved in March 2010, subject to 22 conditions. Since then the project suffered over a decade of legal and regulatory delays in the U.S. On July 3, 2020, construction officially re-started in Canada, with 269 kilometers of pipeline to be constructed and commissioned in Alberta over the next three years, supported by loan guarantees and a direct investment by the Government of Alberta. In the U.S., limited construction activities are ongoing, however legal action has delayed much of the construction on the project. An April 15 ruling by a U.S. Federal Court in Montana invalidated federal water crossing permits for the project. This means construction on many segments of the American portion of KXL will halt at least until 2021. The Democratic Presidential candidate has also vowed to rescind the Presidential permit for the project if elected. BACKGROUND Project Overview  The KXL project, is a proposed 1,897 kilometre crude oil pipeline, beginning in Hardisty, Alberta, and extending south to Steele City, Nebraska. The pipeline would have the capacity to transport 830,000 barrels per day (b/d) of heavy oil from Alberta to Nebraska and from there to the US Gulf Coast via existing pipelines. The US Gulf Coast is the largest heavy oil refinery hub in the world.  KXL would be an addition to the existing Keystone Pipeline System that runs from Alberta to the Gulf Coast and Illinois and went into service in 2010.  The $10 billion KXL project would create an estimated 2,200 jobs in Canada building 530 kilometers in Alberta and Saskatchewan at a cost of approximately $1.2 billion. Estimates by the proponent are for $3.5 billion benefits from increased prices for Canadian oil producers through access to higher price markets. In the U.S., the project will have significant energy security, jobs and economic development opportunity, as well as local tax revenues. Construction and Permitting Canada  On March 31, 2020, TC Energy announced that it will proceed with construction of Keystone XL, resulting in an expected additional investment of approximately US$8.0 billion. Construction commenced in April 2020 and the pipeline could be placed into service in 2023.  As part of the funding plan, the Government of Alberta has agreed to invest approximately US$1.1 billion as equity in Keystone XL which substantially covers planned construction costs through the end of 2020. The remaining capital investment of approximately US$6.9 billion is expected to be financed through the combination of a US$4.2 billion project-level credit facility to be fully guaranteed by the Government of Alberta and a US$2.7 billion investment by the company.  In May 2019, the National Energy Board (now the Canada Energy Regulator (CER) approved the pre-construction condition filings for the final phase of construction in Canada. The company is fully authorized for construction in Canada.  Some work on the Hardisty terminal, pump stations and three river crossings is already complete in Canada 2010-2012.  On May 25, 2020, the 2.2 km Canada-U.S. border crossing was completed. Construction on the Alberta segment commenced in July 2020 and is ongoing. U.S.  The company first applied for the project in 2008. There have been four State department environmental assessments and supplementary environmental impact statements concluded over the course of 10 years. The Obama administration rejected TC Energy’s application for a Presidential permit in 2012 and 2015 causing the company to cancel the project, but President Trump issued a new Presidential permit in 2017 that revived the project.  All three states along the pipeline’s route (Montana, South Dakota, and Nebraska) have issued approvals for the project. The project also requires, and has, a Presidential permit because it crosses an international border into the U.S. Ongoing legal challenges in the U.S.  In January 2017, President Trump signed an executive order to revive the project, and in March 2017, a Presidential permit was issued by the U.S. Department of State. However, on November 8, 2018, a Montana Federal District Court Judge halted virtually all pre-construction activity, citing outdated information in the decision to approve the project.  On March 23, 2019, a new Presidential permit was issued for the construction of the pipeline, superseding the permit issued in 2017 and on June 6, 2019.  The Montana District Court continues to hear lawsuit by environmental and certain Indigenous groups and in April 2020 issued a decision which invalidated the project’s federal water crossing permits, a move that will likely delay construction by at least a year. The judge has also questioned the constitutionality of the Presidential permit and may rule soon on several lawsuits demanding a new construction injunction. NEXT STEPS Despite the ongoing legal and potentially political challenges, TC Energy remains committed to the project, and continues to evaluate the company’s construction activities in the U.S. In Canada, civil earthworks, mobilization, and construction activities began on July 3, 2020, continuing throughout summer 2020, subject to COVID-19 restriction and guidelines from state, provincial and municipal health officials. The Government of Canada has written in support of the project to federal and state authorities on several occasions, including in 2017, 2019 and 2020.

LIQUEFIED NATURAL GAS

ISSUE  Canada has a time-sensitive opportunity to develop a liquefied natural gas (LNG) industry to directly access world markets for its gas exports, to finance its transition to a low carbon economy, to advance reconciliation with Indigenous Peoples, and to support global action on climate change by displacing higher emitting fuels – including LNG from other producers.  Challenges from fossil fuel project opponents, uncertain regulatory review processes and shifting market conditions pose risks to potential investments worth billions of dollars and tens of thousands of jobs in Canada.  Proponents are advancing multiple projects to develop an LNG industry that would be the lowest emitting in the world.

BACKGROUND

 LNG is a critical transition fuel for countries seeking to move from higher emitting sources, such as coal or diesel, to cleaner fuels. For Canada, it represents an essential means to access global natural gas markets, and higher prices, beyond the U.S.  Canada has an opportunity to demonstrate its ability to build a stable, competitive LNG sector that is a world leader in environmental, social and governance (ESG) performance. Several projects aim to leverage Canada’s hydroelectricity capacity to electrify operations and reduce emissions as part of fitting within Canada’s net zero by 2050 objective.  In addition to the $40 billion LNG Canada project, which is under construction, multiple projects are under development on the East and West coasts. Projects approaching FID (with target year in parenthesis) include: o Woodfibre LNG (mid-2021): A $1.6B project by Pacific Oil & Gas (Singapore), located near Squamish, British Columbia is a smaller hydro-powered facility. o Goldboro LNG (mid-2021): A $10B project in Guysborough County, Nova Scotia is a fully permitted facility that would export LNG mostly to Europe.  Other high-profile LNG projects in the regulatory review process include: o Énergie Saguenay and Gazoduq pipeline [redacted]: A $15.6B project located near Chicoutimi, Quebec, powered via existing hydro-electric infrastructure to liquefy and export natural gas from Alberta. o Kitimat LNG [redacted] – A $15B project positioning to be the cleanest large-scale LNG facility in the world, powered by hydroelectricity.  Since the U.S.’s shale revolution began in 2011, that country has evolved from being a net gas importer and Canada’s single customer, to become one of the world’s leading exporters. Currently, 46% of Canada’s natural gas production and 99% of its exports go to the oversupplied U.S. market.

 For Canada’s gas sector to survive, it must diversify its export markets to secure higher value for Canadian natural gas products. Many Indigenous communities are supportive of LNG projects that would support reconciliation objectives, including respect local knowledge and cultural practices, providing economic self-determination and employment opportunities, and support global action on climate change.  Natural gas is the only fossil fuel expected to maintain its share in the global energy mix by 2040 as energy demand increases in emerging economies, driven by the global energy transition to low carbon economies.

CONSIDERATIONS  The oversupplied global LNG market is seeing market prices rise from record lows as economies slowly recover from the impact of the coronavirus (COVID-19) pandemic.  The demand for LNG is being impacted by three key factors: governments’ COVID-19 containment strategies, changes in consumer behaviour, and a significantly weakened global economic outlook.  Concurrently, suppliers are postponing or cancelling project final investment decisions, which will impact global supply forecasts. As economies recover, the global supply-demand is expected to narrow through the late decade, with demand exceeding supply by 2030.  A viable and competitive LNG industry is a key feature of multiple provinces’ economic strategies, most notably for Alberta as a gas producer. [redacted]  While Canada is working to position LNG projects in this country to produce the world’s cleanest LNG with strong environmental, social and governance (ESG) performance, global market conditions are moving investors to reduce risk exposure by shrinking capital expenditure commitments in the petroleum industry.  LNG projects typically take approximately four years to build, in addition to time required for regulatory approvals. To position to operate by late decade, multiple investors could decide over the next two years whether to advance projects.

CONCLUSION  Development of a competitive, low-emitting LNG sector would align with Canada’s pursuit of a net-zero economy by 2050 while providing domestic governments with billions of dollars in annual revenue from taxes and royalties, and supporting Indigenous economic self-determination and reconciliation objectives.  Those funds would help finance Canada’s economic recovery and its continuing evolution toward a low carbon economy.

LNG CANADA & COASTAL GASLINK

ISSUE

 LNG Canada, the only export-oriented LNG project under construction in Canada and the largest private sector investment in Canada’s history, comprises a natural gas liquefaction facility, the Coastal GasLink (CGL) pipeline, and a marine terminal to export Canadian natural gas to some of the world’s fastest growing economies in Asia. The project recently faced challenges with the impacts of COVID-19 and protests against pipeline development. However, it remains on track to begin exporting by 2025.

KEY CONSIDERATIONS

 LNG Canada remains on track despite having to reduce the number of employees on site through spring 2020 due to COVID-19, and experiencing supply chain disruptions. o With enhanced health and safety standards at all worksites and workforce accommodations, the workforce is expected to soon reach 2,500.  The first segments of the the CGL pipeline were laid in the ground in the summer and the route continues to be cleared.  Upon completion, LNG Canada will be the world’s lowest emitting facility of its size, with approximately 50% the emissions of competitors.  The project is projected to create thousands of jobs in Canada, billions of dollars in direct government revenues, and hundreds of millions of dollars in construction contracts for Indigenous businesses.  Following the protests against pipeline development earlier this year, the Wet'suwet'en Hereditary Chiefs and the provincial and federal governments signed an MOU on May 14, 2020 that recognizes Wet'suwet'en rights and title, and sets out a process to negotiate an agreement on how to implement them.  Under the benefit agreements, the first payments to 14 impacted First Nations are scheduled to be made as early as fall 2020.

KEY BACKGROUND

 In October 2018, LNG Canada announced a positive final investment decision for the $40 billion, 14 million tonnes per annum (MTPA) project in Kitimat, B.C. It is currently under construction, and aiming to be operational in 2025. o It is owned and operated by Shell (40%), PETRONAS (25%), PetroChina (15%), Mitsubishi (15%), and Korea Gas (5%).

o When completed, it is expected to export primarily to Asian markets, with each of the Asian partners largely shipping to their respective home markets. o Planning is under way on phase 2, to expand the facility by adding two more LNG processing “trains” (another 14 MTPA).  TC Energy’s CGL pipeline would extend 670 km to transport gas from the Montney shale gas/tight gas producing region near Dawson Creek, B.C. to the LNG Canada terminal in Kitimat, B.C. The final approvals for the CGL pipeline were received in May 2014, following years of consultations and engagements with Indigenous communities along the route.

Investments and Benefits  LNG Canada represents the single largest private sector investment in Canada's history. At full build (LNG Canada phases one and two, and CGL pipeline), the total investment is estimated at $40B (Phase 1 estimated at $18B, CGL estimated at $6.6B).  The federal government committed $220M for the purchase of high efficiency gas turbines, plus $55M to replace the Haisla River Bridge in Kitimat, BC to benefit the community and this project.  Media reports that at a technical briefing, the B.C. government estimated its total financial incentives for the project to be approximately $5.35 billion.  LNG Canada will create 10,000 jobs in Canada at the height of construction and at least 300 permanent jobs in the new facility. According to the B.C. Environmental Assessment Office, the project will generate $1.13B in tax revenue for all three levels of government during construction and $186M per operation year.

Environmental Considerations  The LNG Canada project will be the world's cleanest large-scale LNG facility in terms of GHG emissions intensity, emitting 0.15 tonnes of GHGs per tonne of LNG produced (tCO2e/tLNG). This figure is well below the global emissions average of 0.26 to 0.35 tCO2e/tLNG and lower than B.C.’s LNG GHG intensity limit of 0.16 tCO2e/tLNG.  It will achieve its low GHG footprint through a combination of the low-CO2 composition of Montney natural gas; widespread electrification of upstream operations (e.g., drilling, processing); the use of green power from B.C.’s hydro-driven electrical grid; and use of highly efficient gas turbines at the liquefaction plant.

First Nations Benefit Agreements  There are 22 First Nations whose territory is touched by the overall project (pipe and facility), and 25 individual agreements with LNG Canada and CGL (5 with LNG Canada and 20 with CGL, including 3 First Nations that have agreements with both). Under those benefit agreements, the First Nations will share $10M annually for an estimated 40 years while the project is in

operation. In addition, the Indigenous bands will receive initial cash payments that total $31M, or an average of approximately $2M per community.  In the immediate term, the construction has created thousands of jobs for Indigenous people and over $175M of contracts for local First Nations businesses. CGL mandated its contractors to source locally wherever they can for equipment and supplies, resulting in further benefits for Indigenous communities. To enable long-term participation of First Nations in the LNG industry, B.C. invested $30M to address barriers to education, training and employment. Four thousand people were trained in three years, and 43% of those Indigenous participants retained employment over that time.

CGL and Wet'suwet'en protest  Groups within the Wet’suwet’en Nation in B.C. have been protesting pipeline development in their traditional territory dating back to 2010 on the then- proposed Northern Gateway project. Protestors have built blockades to stop construction crews from accessing parts of the CGL work sites. The Supreme Court of British Columbia granted a temporary injunction against the Wet’suwet’en in December 2018, and further granted an interlocutory injunction in December 2019. On January 4, 2020, the Wet’suwet’en issued an eviction notice to CGL, demanding the removal of equipment. CGL continues to work with the Wet’suwet’en to enable construction to proceed on the contested section.  The federal government remains committed to working with the Wet’suwet’en Nation to advance reconciliation through government-to-government discussions and under the MOU.

IMPENDING EXPIRY OF TRANSITIONAL OFFSHORE OCCUPATIONAL HEALTH AND SAFETY REGULATIONS

ISSUE

 Six Occupational Health and Safety Transitional Regulations, established under the Offshore Health and Safety Act, are set to repeal on December 31, 2020. [redacted] The potential gap in regulatory coverage will render the Can-NL and Can-NS offshore areas as the only jurisdictions in Canada with no regulations in force to protect worker health and safety.

 [redacted]

BACKGROUND

 NRCan has been working with provincial and regulator partners since 2014 to develop and implement modernized occupational health and safety (OHS) regulations under the authority of Part III.1 of each of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act (C-NL) and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (C-NS) and their mirror provincial legislations.

 Regulations established under Part III.1 are jointly recommended by the federal Ministers of Natural Resources, Labour, and Transport (for requirements related to passengers in transit), and must be approved by provincial Ministers responsible for OHS (Ministers of ServiceNL and NS Labour and Advanced Education).

 Transitional regulations that were enacted to complete the OHS scheme in the interim will repeal automatically on December 31, 2020 by operation of the Offshore Health and Safety Act (OHSA).

 Under the joint management regime for the Newfoundland and Labrador (NL) and Nova Scotia (NS) offshore areas, there are mirror versions of the transitional regulations in both provinces: o NS established provincial regulations and did not impose an expiration date and therefore, these regulations will remain in force, even if the federal version is repealed. o NL opted to incorporate the federal regulations by reference into the provincial version and established the same repeal date.

 [redacted]

CONTINGENCY PLAN

 [redacted]

 The Accord Acts grant the Boards the authority to establish additional OHS requirements and approvals as a condition of the operations authorization (OA), so long as they are not inconsistent with the provisions of the Act or regulations. Both Boards have exercised this authority in the past and ‘Additional OHS Requirements’ are a current requirement of every OA.

 [redacted]

NEGOTIATIONS WITH NEWFOUNDLAND AND LABRADOR: OFFSHORE AND LOWER CHURCHILL

ISSUE

 The federal government is in negotiations with the Government of Newfoundland and Labrador (NL) on a number of different energy-related fronts in order to assist the province given the economic and fiscal challenges it faces.

 With respect to the offshore sector, current issues are a result of the COVID-19 induced demand collapse, global price war and uncertain path to recovery.

BACKGROUND

Lower Churchill Projects

 [redacted]

 NRCan and Finance have been in discussions with NL on a financial restructuring of the Lower Churchill projects (full briefing in Annex 1). [redacted]

Offshore Sector

 Offshore petroleum is a key pillar of the NL economy and contributes more than 25% of provincial GDP and 10% of employment.

 The sector maintains globally competitive environmental performance with GHG emissions per barrel 30% below the world average.

 The Province of NL recently made a commitment to reach a net zero economy by 2050.

 Prior to the pandemic, the sector had experienced strong momentum since 2014 and significant growth potential was being unlocked.

KEY CONSIDERATIONS

[redacted]

Offshore Sector

 [redacted]

 Future growth highly uncertain given that near-term investments of $6B (2020-23)

have been cancelled or deferred due to COVID-19

o West White Rose – construction halted in Mach and project/investment review announced September o Hibernia West – cancelled in April o Bay du Nord – deferred indefinitely in April o Come by Chance refinery – halted operations in June and will likely be acquired by Irving [redacted] o Deferral of 2020 exploration programs (~50% reduction)

 [redacted]

NEXT STEPS

 [redacted]

 Regarding the Offshore, some federal support to-date has proven helpful (i.e., wage subsidy, Regional Assessment announcement and changes to eligible expenses for operators under Land Tenure obligations); however, none of these are sufficient to save projects or bring investment back.

o [redacted]

CONTACT PERSONS: Marco Presutti, Director General, Electricity Resources Branch (Lower Churchill Projects) Nada Vrany, Director General, Petroleum Resources Branch (Offshore Sector)

ANNEX 1: FINANCIAL RESTRUCTURING OF THE LOWER CHURCHILL PROJECTS

ISSUE

 The federal government is in discussions with the Government of Newfoundland and Labrador on financial restructuring of the Lower Churchill projects to help reduce costs for ratepayers

LOWER CHURCHILL PROJECTS BACKGROUND

 The Lower Churchill projects (LCP) are a key element of Atlantic Canada’s clean energy future. The LCP consists of four projects, the first three of which are being developed by Nalcor Energy, a NL Crown corporation: 1. the 824-megawatt Muskrat Falls (MF) hydroelectric power plant located in Labrador; 2. the Labrador Transmission Assets (LTA), a transmission line and related infrastructure that connect Muskrat Falls to the existing Churchill Falls Generating Station; 3. the Labrador Island Link (LIL), a transmission line and related infrastructure that connects Muskrat Falls to the island of Newfoundland; and, 4. the Maritime Link (ML), a transmission line connecting NS with NL was successfully commissioned by investor owned Emera Inc. on time and within budget on February 9, 2018.

 Deal Structure: Nalcor Energy (an NL Crown corporation), and Emera Inc. (an investor-owned company that is the parent company to Nova Scotia Power Inc., the main electric utility in Nova Scotia) agreed in 2011 to establish a partnership to develop the projects. Under the agreement, Emera would build the Maritime Link and would receive 20% of the Muskrat Falls power at no cost for 35 years. Nalcor would be able to use the Maritime Link to access export markets. After 35 years, ownership of the Maritime Link would revert to Nalcor. Orders in council were passed at project inception exempting the Nalcor-led projects from regulatory oversight.

 GHG Reductions: The projects will allow for the closure of the 490-megawatt heavy fuel oil-fired Holyrood Generating Station located near St. John’s, and will help Nova Scotia phase out its coal-fired generating assets. All told, the projects are expected to result in up to 4.5 megatonnes of greenhouse gas emission reductions annually, representing 0.6% of Canada’s current overall emissions, and 10% of Atlantic Canada’s emissions.

 Federal Loan Guarantees: Following a commitment in the 2012 Speech from the Throne, in 2013-14, the Government of Canada issued loan guarantees for $6.3 billion in debt to reduce projects costs on ratepayers and pave the way to reduce GHG emissions in the Atlantic Region. After experiencing significant cost overruns and schedule delays and facing some broader fiscal challenges, NL ask for and received a second federal loan guarantee of $2.9 billion in 2017.

CONSTRUCTION UPDATE

 Impact of the pandemic: Prior to the pandemic, Nalcor expected to complete the projects by the end of 2020; however, the pandemic has exacerbated construction uncertainty and risks, shutting down construction altogether in March 2020. Work resumed in May/June 2020, and ramped up over the summer. Contractors are working under new health and safety guidelines, which has affected labour productivity.

 Revised schedule coming: We expect a revised schedule from Nalcor by the end of September. Discussions with Nalcor indicate that the projects are projected to be completed in the second half of 2021, taking into account both the impact of the pandemic as well as the new technical challenges that have arisen in 2020.

 Outstanding risks: NRCan and Canada’s Independent Engineer have been closely monitoring construction activities since inception. There remains significant uncertainty with regard to timing of project completion, due in part to COVID-19 but also due to continued challenges on the three main risks that existed since last fall:

software development, installation of the turbines and completion of the synchronous condensers.

RESTRUCTURING DISCUSSIONS

 On September 5, 2018, Premier Dwight Ball requested that NL’s Public Utilities Board (PUB) develop options to mitigate the cost burden of the project on NL ratepayers.

 Potential impact on rates: The PUBs interim report concluded that existing electricity rates in the province would be expected to almost double from 12 cents/kWh to 23 cents/kWh, post-Lower Churchill projects commissioning in 2021, if no mitigating actions are taken. In terms of scale, the PUB estimated that an additional $70 million in annual revenue for the province would be required to mitigate every 1 cent/kWh rate increase.

 Federal commitment to assist with rate mitigation: On March 31, 2019, as a part of an announcement relating to the Atlantic Accord, the federal government committed to work with the province on rate mitigation on an expeditious basis.

 NL’s rate mitigation plan: On April 15, 2019, the NL government publicly released its Muskrat Falls Rate Mitigation Plan. The main plan would maintain electricity rates at 13.5 cents/kilowatt-hour. It includes $526 million per year in provincial measures, and seeks $200 million/year (over ten year) of federal assistance to close the remaining gap. [redacted]

 February 2020 agreement: NRCan and Finance Canada established a joint project team supported by outside financial and legal expert advisors. Over the remaining months of 2019, Canada and NL discussed ways that Canada could assist with rate mitigation, culminating in an agreement in February 2020 to enter into negotiations on financial restructuring of the Lower Churchill projects. Finance Canada leads this process with significant support from NRCan.

 In March 2020, after some early progress, these discussions were put on hold in light of the pandemic, the associated construction hiatus and the significant uncertainty these events created.

 [redacted]

NEXT STEPS

 We expect to receive an updated project budget and schedule by the end of September, allowing for discussions on the short term measures in October/November. We expect details regarding NL’s broader, long-term restructuring proposal in late 2020 or early 2021.

 NRCan and Finance will continue to work with the Independent Engineer to monitor construction activities and the implementation of Nalcor’s restart plans.

CONTACT PERSON: André Bernier, Senior Director, Electricity Resources Branch

The Oil and Gas Sector

2019 2019 Employment Real GDP 599,000 $167 billion (176,500 direct and 422,500 indirect jobs) Share of Canadian Share of Canadian GDP = 8% Employment = 3.1%

Sector Players The industry is composed of myriad operators, ranging from hundreds of small exploration and production firms in Western Canada, to the world’s largest integrated oil and gas companies (those who produce, refine, and distribute) operating in the oil sands and the offshore. This breadth of operations makes the oil and gas sector difficult to view through one single lens, as it covers a number of distinct subsectors, each with their own business models.

Canada’s leading integrated oil producers are Suncor, Imperial Oil, and Husky. These companies, along with large-scale upstream production companies Canadian Natural Resources Limited and Cenovus, are crucial Canadian players in the sector.

The industry’s structure can be broken down into three segments, each with their own associated service companies:

 Upstream – oil sands, conventional and unconventional oil and gas producers, and the offshore  Midstream - pipelines and storage terminals  Downstream - refining, petrochemical production, and consumer fuel deliveries

Upstream

There are over 1,000 upstream companies across the country that produce oil and natural gas. The 20 largest producers account for over 75% of Canadian production and operate mainly in Alberta and Saskatchewan’s oil sands, as well as in the Newfoundland and Labrador offshore.

The upstream segment can be subdivided into oil sands, conventional and unconventional (shale) oil, conventional and unconventional (fracked) gas, and the offshore.

The majority of Canada’s oil production (63%) is in the oil sands, a concentrated, specialized sector comprised mainly of large Canadian producers. Five major companies currently control 85% of oil sands production: Suncor, Imperial Oil, Husky, Cenovus, and Canadian Natural Resources. These companies’ operations are capital-intensive and have higher costs than global averages, but have large proven reserves that can cover production for over 20 years. Oil sands output is priced at Western Canada Select which is typically lower than West Texas Intermediate, the North American benchmark price.

About half of Canada’s conventional onshore production is concentrated among five companies: Canadian Natural Resources, Crescent Point, Seven Generations, MEG Energy, and Husky. The remainder is produced by approximately 650 other companies (mostly small or medium sized). A growing share of production comes from tight oil (shale oil). This is a light crude tightly held in rock formations and is more difficult to extract than conventional crudes.

Natural gas production occurs primarily in Alberta and British Columbia, which account for 98% of total Canadian production. Approximately 14% of Canadian natural gas is produced conventionally, while 86% is from unconventional production (i.e. fracked gas). The Canadian natural gas production industry is fragmented with hundreds of production companies. However, the top ten companies accounted for 47% of Canada’s total natural gas production.

The offshore petroleum sector, responsible for about 5% of Canada’s total oil production, is comprised of a handful of large foreign oil and gas companies (e.g. ExxonMobil, Chevron, and Equinor) along with two of Canada’s largest in Suncor and Husky. Due to the quality of oil, and the relative ease of transportation, offshore oil receives a price near Brent, the world benchmark oil price.

Midstream (Pipelines and Storage)

Canada has 840,000 kilometers of oil and natural gas pipelines. Major pipeline companies include Enbridge, TC Energy, Trans Mountain, Trans-Northern, and Pembina.

In 2019, approximately 85% of crude oil exports moved by pipeline, 8% was exported by rail, and 7% was exported by marine vessel. Crude by rail exports increased 16% from 2018 to 2019, due largely to pipeline capacity constraints in Western Canada. Canada has a crude oil storage capacity of 95.9 million barrels, with 63% of that capacity residing at the Edmonton and Hardisty terminals.

The natural gas distribution industry in Canada is composed of hundreds of gas distribution utilities, gas marketers, and brokers. The industry currently has over 550,000 kilometers of transmission and distribution pipelines.

Underground natural gas storage facilities in Canada are located in five provinces (Alberta, British Columbia, Ontario, Quebec, and Saskatchewan). Demand for natural gas in Canada is seasonal. Peak consumption occurs in the winter months while storage capacity is replenished in non-winter months.

Downstream (Refining and Petrochemicals)

Canada’s downstream fuels sector contributes over $10 billion to Canada’s GDP each year and consists of 15 refineries in seven provinces (including 4 each in Ontario and Alberta), 78 fuel distribution terminals, and approximately 12,000 retail and commercial sites. Because Canada’s refinery capacity exceeds demand (notably in Quebec and Atlantic Canada), Canada is a net exporter of refined products.

The principal operators are Imperial, Suncor, Irving, Shell, and Valero. Smaller operators also exist including North Atlantic Refining, Tidewater Midstream, and Parkland Refining.

The petrochemical industry has multiple facilities across Alberta, Ontario and Quebec with over 43% of all capacity located in Alberta. Key operators include Dow Chemical, NOVA Chemicals, and Shell.

Market Segments and Activity Canada is the world’s fourth largest producer of both crude oil and natural gas. The sector employs 176,500 people directly (see Annex A – Table 1), along with an additional 422,500 indirectly. Combined, this represents about 3.1% of total employment in Canada. The sector is responsible for 8% of Canadian GDP ($167 billion total - $114 billion directly and another $54 billion indirectly).

Petroleum products are Canada’s largest export. Exports of all petroleum products were valued at $122 billion in 2019, accounting for 21% of Canada’s merchandise trade.

The United States is Canada’s most important export market by far. Canada exports about 80% of its oil production, and 45% of its natural gas production, to the United States. Total Canada-U.S. energy sector trade amounted to $157 billion (Canada to U.S.: $122B, U.S. to Canada $35B). Refined petroleum products, petrochemicals, and natural gas liquids all rely on a steady flow of goods across the border.

The North American energy market is highly interconnected. Energy flows through 70 pipelines across the Canada-U.S. border and is critical to maintaining essential services in both countries. For example, crude oil is exported to refineries in the U.S. Midwest, which in turn export gasoline and other refined product to markets in Central Canada.

Natural gas accounts for approximately 36% of Canada’s energy demand. Approximately 9% of Canada’s primary natural gas demand was used to generate electricity. End-use natural gas demand can be broken down into residential (24%), commercial (19%), and industrial (57%).

Regional Presence Four provinces possess 96% of the country’s oil resources (Alberta, Saskatchewan, Newfoundland and Labrador, and British Columbia), and 80% of Canada’s oil production occurs in Alberta. Although production is concentrated in Alberta, the supply chain extends all across the country. The oil sands supply chain is comprised of over 2,000 companies and $3.6 billion in investment outside the province (see Annex A – Table 2).

Natural gas production in Canada occurs predominantly in the Western Canadian Sedimentary Basin in British Columbia, Alberta, and Saskatchewan.

The level of employment in the sector differs by region. Of the direct jobs, 73% are located in Alberta, 8% in Saskatchewan, 5% in British Columbia, 2% in Newfoundland and Labrador, and 12% in the rest of Canada. As of February 2020 (pre-COVID), unemployment rates in oil producing provinces, particularly Alberta (7.2%) and Newfoundland and Labrador (12.0%), were already elevated relative to regional and national averages.

Government revenues averaged $11.8 billion per year between 2013 and 2017, including $8.6 billion in provincial royalties. These revenues are of particular significance to the provinces of Alberta and Newfoundland and Labrador. The oil and gas industry makes up approximately 25% of Alberta’s GDP and 30% of Newfoundland and Labrador’s GDP.

Key Support Sectors Supporting oil and gas activity is the oil and gas services sector (integral to the oil and gas sector, and counted as direct employment – see Table 1), comprised of businesses that provide the specialized equipment and skills needed for drilling, testing, producing, maintaining, and reclaiming crude oil and natural gas wells. In 2019, Canadian oil and gas field services sector revenue was estimated at $26 billion. Over 75% of these service companies are small, with fewer than 10 employees. Spin-off effects of the current business environment are impacting not just producers, but oil/gas field service companies, drillers, refineries, and pipeline companies.

Petroleum industry output also supports a number of other industries. For example, the transportation sector ships petroleum products by truck or on rail cars all over North America. Prior to the pandemic Canada exported about 400,000 barrels of oil per day by rail alone. The petroleum industry also accounts for $29 billion of activity in the construction sector.

The petroleum sector also supplies products necessary to support modern life: transportation, heating fuels, electricity, industrial feedstock for critical materials, and value added products (fertilizers, solvents, pharmaceuticals and other chemical products). Disruption in the petroleum sector could have potential spillover impacts on broader consumer product supply chains.

This disruption could also impact other sectors critical to achieving Canada’s net-zero emission goals. Notably, the petroleum sector is a key investor and adopter of Canadian clean technology. A diminished petroleum sector would have a knock on effect on Canadian clean technology firms and cause a loss of sales markets and employment.

There is also significant interdependence between key oil and gas subsectors. For example, low oil demand means low condensate demand, which leads to low revenue for natural gas producers, who cut production. This causes constrained ethane and propane production leading to higher feedstock costs for petrochemicals producers.

Sector Specific Considerations Investment

The petroleum industry is the largest source of capital investment in Canada, at $52 billion in 2018. However, given the current situation, oil producers are cutting their 2020 capital spending budgets by approximately $9 billion, cancelling future project development, curtailing production, and shutting down facilities. Canadian natural gas producers have also cut $870 million from 2020 capital expenditure plans. Cuts and shut-ins of oil production had reached approximately 1 million barrels per day in March/April, but about half of that production has resumed as demand recovers. However, regional impacts of the cuts have had a severe impact, especially in Alberta and Newfoundland and Labrador.

Energy Security

Integration of the sector and cross border trade flows provide energy security for North America. As prices decline, production is shut-in, and the industry struggles, North American energy security is at

risk. Bankruptcies and reduced production could lead to an increasing reliance on foreign oil sources (i.e. OPEC) to meet the continent’s energy needs.

Infrastructure

A lack of pipeline infrastructure continues to be an impediment preventing access to global markets. Existing pipeline capacity is lower than exportable domestic oil production. Oil available for export was about 4.2 million barrels per day in early 2020, while total actual pipeline takeaway capacity is only about 3.9 million barrels per day. This results in periodic weakness in Canadian crude prices. During the July 2017 – December 2018 period, Western Canadian Select (WCS) prices were routinely over $20 per barrel less than West Texas Intermediate (WTI) prices, hitting a differential of $43.55 in December 2018. Since then, WCS prices have for the most part traded in a range from $8-$15 below WTI.

Existing natural gas transportation infrastructure was also not designed for the sudden production shift from conventional gas to liquids-rich gas. The expansion of one of Canada’s main pipeline systems, TransCanada’s Nova Gas Transmission Limited, has not kept up with growth in gas production. Bottlenecks have stressed Alberta’s existing gas transmission infrastructure.

However, the completion of new pipeline capacity within the next couple of years, combined with a slow recovery of production levels, should provide relief.

Environmental – GHG Emissions

Canada’s Paris Accord target is to reduce national greenhouse gas (GHG) emissions from 730 megatonnes (Mt) in 2005 to 511 Mt by 2030. The current focus is on a more ambitious target of net- zero emissions by 2050.

In 2018, the oil and gas producing sector accounted for 26% of Canada’s total GHG emissions, up from 22% in 2005. Overall emissions from the sector have risen from 158 Mt of CO2 equivalent in 2005 to 193 Mt in 2018. Given current measures in place, the oil and gas sector had been projected to increase its emissions to 199 Mt by 2030, which by then would comprise 34% of Canada’s overall total.

In light of Canada’s climate goals, the sector has committed to improving its environmental performance. Subsectors are adopting innovative clean technologies and using more efficient production techniques. In the oil sands, GHG emissions per barrel have dropped 32% since 1990 and companies such as Cenovus and CNRL have committed to future net zero emissions. Suncor has also targeted a 30% in emissions by 2030.

Natural gas companies have undertaken emissions reduction activities such as reducing methane leaks and flaring, while lowering their overall energy use through cogeneration and electrification. The Canadian refining industry has invested nearly $12 billion since 2000 to improve its environmental performance, resulting in improved energy efficiency, reduced water consumption, and reduction of sulphur in gasoline and diesel. The petrochemical industry is shifting to the use of natural gas feedstock, prioritizing energy efficiency, and adopting lower emission ocean transport vessels.

Environmental – Other Impacts

Migratory bird species can be affected by the alterations to their habitat caused by oil and gas exploration and development. Habitat quality changes are also an issue due to noise from traffic or

compressor stations, dust from gravel roads, or invasive species. Bird responses to these habitat disturbances tend to be more significant than those from other sectors such as forestry and agriculture.

For example, Canada’s last wild, self-sustaining population of whooping crane migrates through the oil sands region as they transit between breeding areas in Wood Buffalo National Park and wintering grounds in Texas. Threats to crane survival include oiling from contact with tailings ponds, collisions with infrastructure, and vehicle strikes. Oil and gas development can also affect the quality and/or quantity of suitable stopover habitat due to contamination, water extraction, and habitat removal.

Diversity and Inclusion

According to Statistics Canada, women make up approximately 25% of the oil and gas sector’s workforce and their median salary is only 68% that of their male counterparts. However, limited gender- disaggregated data for the energy sector remains a key barrier to advancing gender equality in the sector. A 2017 report by Electricity Human Resources Canada suggests that women hold approximately 20-25% of the workforce in the overall energy industry in advanced industrialized nations, but less than 6% of these are technical positions and less than 1% are top management positions. These figures are lower than women’s economy-wide share in employment, which is 40-50% in most OECD countries.

Due to the often remote nature of oil and gas extraction, the impact of their operations, including the rapid influx of a male dominated workforce into small remote regions, can often bring social challenges that are disproportionality felt by women and Indigenous people in these areas.

COVID-19 Impacts on the Sector

The March 2020 OPEC+ price war combined with social distancing measures to address the pandemic exacerbated an already difficult environment (i.e., from the combined effects of already low prices and lack of pipeline capacity). The shelter in place measures to respond to the pandemic originally resulted in a decline in demand for jet fuel by up to 90%, for gasoline by 50%, and diesel by 20%. The April 2020 OPEC+ production cut of 9.7 million barrels per day (along with a G20 commitment to cut 5 million barrels per day) has been insufficient to offset demand declines so far. Eurasia Group had forecasted a 25 million barrel per day drop in demand in Q2 2020 (around a 25% decline). However, in July 2020, the IEA estimated that the demand drop had been less severe than expected at only 16.4 million b/d. The IEA is forecasting that global oil demand in 2020 will average 92.1 million b/d, down 7.9 million b/d from 2019 levels.

For some heavy conventional oil producers, lengthy production shut-ins can cause irreversible loss to productivity from some wells and reservoirs (e.g. shutting in in-situ oil sands can result in permanent damage to the reservoir), which could lead to reduced proven reserves and further declines in share values of companies. This will affect liquidity and credit worthiness of companies going forward and could affect the ability of companies to recover.

To date, companies have been able to postpone key credit deadlines. Banks have extended credit allowances in the hope that the fundamentals of oil and gas markets would improve, while companies are looking for additional flexibility through potential government financing programs.

In a prolonged low oil price environment, reduced production would have potential knock-on effects. Financial contracts, backed by creditors and counterparties, are potentially impacted with unknown after effects that can ripple into the banking system. Steep declines in royalty revenues and corporate income taxes will also put significant pressure on federal and provincial government finances for Alberta, Saskatchewan, and Newfoundland and Labrador.

In a normal market, vertically integrated oil producers are shielded from low oil prices through higher margins on their downstream operations. However, because of the sharp drop in demand due to COVID-19, excess refined product volumes are on the market, squeezing refinery margins and making some refineries unprofitable.

Although natural gas demand reductions in Canada are yet to be determined, they are expected to be significant. For example, IHS had forecast Canadian natural gas demand to be 11 billion cubic feet per day in April 2020, down from 12.3 billion in April 2019.

On the supply side, due to government limitations on non-essential economic activities to fight COVID- 19 and declining prices, construction activities on most new oil and gas projects were halted and company operations have slowed. There are also specific concerns about oil and gas workers contracting the virus because they share close quarters when working at remote production facilities.

Financial markets have responded negatively to the price shock and Canada’s TSX Capped Energy Index has declined by nearly 50% since the start of the year (compared to a decline of 6% in the broader TSX).

Government measures announced to date to provide liquidity and credit are needed to help the sector survive and stabilize in the short term. Future investments in environmental improvements may be needed to set the industry up for a green transformation.

Prior to COVID-19, the sector was positioned to play a critical role in the transition to a low-carbon energy future both through R&D on low-carbon solutions, and by providing significant revenues to government for reinvestment in the transition towards net-zero. Post-COVID-19, government support for large scale investments may be required to enable the industry to diversify into petrochemicals, hydrogen, LNG, and environmental technology such as carbon capture, utilization and storage.

These investments would not only create stronger environmental performance but could create market advantages for Canadian energy products among environmentally conscious customers and countries, and support Canada’s economic recovery and future growth. Growing federal and provincial debt levels, however, create pressure on governments’ ability to make large scale, transformative investments.

Outlook

Recovery of the sector is dependent on a number of factors, notably global oil and gas prices and demand levels. As Canada is a price taker in international markets, U.S., Chinese, and European recoveries are critical to how the Canadian recovery plays out. It may take to 2022 or even longer for global and North American energy demand to recover. Recovery will also be dependent on continuity of supply chains, market access, global competitiveness and investment, and adoption of innovations to drive environmental performance.

SHORT-TERM (2020) MEDIUM-TERM (2021) LONGER-TERM (2022-BEYOND)

Oil Demand: Ongoing lockdowns and Oil Demand: Subsequent infection waves Oil Demand: According to the IEA, global containment measures depress demand for across North American lead to prolonged oil demand will grow by 5.7 mb/d over the transportation fuels (gasoline, jet fuel) and softness in transportation fuel demand. 2019-25 period at an average annual rate lead to limited demand recovery from April Refiners face tough economic conditions. of 950 kb/d. This is a sharp reduction on 2020 low points. Global oil prices remain Oil Production: A significant amount of the 1.5 mb/d annual pace seen in the past near $30/bbl through the remainder of domestic production remains shut-in. 10-year period. Growth decelerates to 800 2020, with demand still over 10 million b/d Impacts more prevalent in conventional kb/d by 2025 as transport fuels demand lower year-over-year by Q4 2020 (source: (E&P) sector. Offshore continues to face growth stagnates. Fitch). Global storage remains at record tough economic conditions. Global oil demand growth also slows high levels. International agreements to Investment: Absence of investment and because demand for diesel and gasoline curtail production are not effectively nears a plateau as new efficiency standards policed and countries continue to produce exploration may hamper longer-term production (both E&P and offshore). are applied to internal combustion engine beyond agreed-upon limits. Regional impacts are most severe in AB, SK, vehicles and electric vehicles hit the Oil Production: Lack of global market and NL. Private sector investments in market. Petrochemical feedstocks access and a reliance on the U.S. market innovation and technologies to reduce propane/ethane and naphtha will drive creates significant strain on the supply emissions remain depressed. around half of all oil products demand chain and production levels. With ongoing growth, helped by continued rising plastics price depression, crude production shut-ins Consolidation: Lack of revenue and access demand and cheap natural gas liquids in in Canada reach a peak of 1.2 million b/d to capital risks widespread company North America. through June and July 2020 (source: IEA), bankruptcies (small- and medium-size companies). While investors largely turn According to Fitch, a price recovery into the with these larger shut-ins extending USD $50-60 range (Brent) is forecast from through the end of the year. away from Canada, there is risk of increased foreign ownership of Canada’s the early-to-mid 2020s, supported by a Investment: With softened demand, total top assets as global players look to buy pullback in production by Saudi Arabia and sector planned investment remains at cheap. Some consolidation may occur the US, although downside risks are large.

record-low levels (half of 2018 level of although due to unknown market Climate Change Action: Political $52B direct/foreign investment). conditions, investors remain leery of taking commitment to tackle the climate change Natural Gas Demand: Demand remains on greater risk. crisis faces challenges as global leadership comparatively constant. Henry hub and With a longer downturn, operators and focuses on the pandemic response. In AECO prices remain near US$2-3 (near pre- players across Canada’s petroleum sector Canada, the focus remains on ‘green COVID levels). Natural gas producers further improve efficiencies, with stimulus’ to support economic recovery benefit from removal of competing gas consolidation resulting in a smaller number and growth. Despite this, growing federal from oil production in U.S. shale of more resilient producers and service and provincial debt levels diminish fiscal formations. U.S. shale bankruptcies and companies going forward. Significantly, ability to make large scale, transformative shut-ins support higher North American producers face cash burn levels well above green stimulus investments (investing in natural gas prices. Construction activities what is sustainable over the long term (for renewables, energy efficiency, cleaning oil for domestic LNG industry ramp back up. largest firms this may reach up to $5B in and gas, clean fuels) as public focuses on social wellbeing. ESG investing adoption Supply Chain: Ripple effects of the 2020, while mid-sized producers see cash faces sharp divide as some investors seek burn up to $1B). downturn occur across Canada’s broader quick returns while others double-down on economy. Portions of the oil and gas Geopolitical: [redacted] climate-conscious portfolios. services sector are put back to work Energy Security: Across North America, Clean Tech: Pressures on Canada’s through federal-provincial investments in production decreases, and without careful petroleum sector create knock-on inactive and orphan wells. Oil & refined attention, risks increasing Canadian & headwinds for clean technology firms product volumes remain lower than pre- North American dependence on foreign oil, (petroleum sector accounts for ~65% of COVID-19, with revenue impacts on impairing energy security. Depressed energy-related R&D in Canada). Tight pipelines. Poor economics cause certain private sector investment creates a barrier capital markets create challenges for refiners to shut down, with impacts on to strengthening the supply chain, with regional supply chains – primarily in investments in alternative fuels and Eastern Canada. broader energy transformation. Geopolitical: [redacted] Private sector seeks government support for domestic petroleum sector’s Employment & Inclusive Growth: diversification into petrochemicals, Employment levels fall, challenging hydrogen, and carbon capture, utilization inclusive growth ambitions. Indigenous and storage (e.g. carbon fiber). Large scale investments required. Natural Gas: Broader market conditions and challenges accessing capital limit the build out of a global LNG sector; a global

employment and economic involvement in cancellation to planned maintenance and LNG supply gap emerges by early to mid- the petroleum sector falls, creating a planned and potential investment in 2020s. This creates opportunity for Canada, setback in both Indigenous participation petrochemicals, refining, pipelines and should domestic LNG projects reach FID. and partnerships with Indigenous LNG, and other infrastructure projects,

communities and businesses. absent government action. This reduces the promise of diversification across Canada’s petroleum sector in the short to medium term (into mid-2020s).

Upside Risks to the Outlook (rewards):

 Government Supports: Measures announced to date to provide liquidity and credit and invest in environmental improvements should stabilize the sector in the short-term, but further measures are likely required (e.g. offshore sector seeking targeted fiscal support).  Canadian Environmental Leadership: Canadian investments in green stimulus for pandemic recovery deployed to support stronger environmental performance in the petroleum sector, support low-carbon economic diversification, and create market advantages for Canadian energy products among environmentally conscious customers and countries (e.g. Korea, Japan, Singapore).  Behavior Shifts: Increased teleworking decreases GHG emissions and further delinks economic growth and GDP from energy use growth.  Geopolitics: [redacted]

Downside Risks to the Outlook (what we stand to lose):

 Clean Tech & Innovation: Soft investment climate means less capacity to invest in innovation and deploy Canadian clean energy solutions. As largest investor in energy-related R&D, downturn impacts ability for Canadian clean technology companies to support domestic operations (i.e. CCUS, hydrogen, SMRs).  Government Revenue: Lagging recovery impacts AB, SK, and NL the most, challenging their ability to fund government operations & services.  Energy Security : Failure to support sector through COVID downturn results in permanent loss of Canadian production capacity, increasing our reliance on foreign oil. Collapse of some firms means potential for state-backed foreign ownership to increase, with potential impacts on energy security. Decrease in U.S. shale oil production and potential bankruptcies increases reliance on foreign imports, with some upside for Canada, but generally downside for North American petroleum independence.

Annex

Table 1 – Direct Jobs by Subsector Subsector Number of Jobs Oil and Gas Extraction 73,000 Support Activities 55,500 Exploration 3,000 Natural Gas Transmission 16,500 and Distribution Crude Oil Pipelines 4,000 Other 24,500 Total 176,500

Table 2 – Oil Sands Supply Chain Outside AB (2017) Province # of Suppliers Investment BC 528 $596M SK 220 $136M

MB 41 $56M ON 1162 $1,900M QC 199 $320M NFLD 18 $100M PEI 3 $2M NB 24 $9M NS 32 $46M

Environmental, Social and Governance

As carbon considerations become increasingly prominent in investment decisions, the importance of Environmental, Social, and Governance (ESG) criteria is on the rise. This has potential implications for the future of the Canadian oil and gas industry, including the growing role of environmental performance and how it impact a company’s ability to raise capital.

The trend for ESG reporting is expected to grow, with demand coming from banks and insurance companies as they measure the cost of their exposure to climate risk. It will also come from institutional and retail investors who are avoiding assets with high environmental footprints and poor performance on social and governance issues.

A March 2020 study from the Bank of Montreal found that among the world’s largest oil producers, Canada ranked second overall only to Norway on ESG measures – ranking second in both regulatory/governance and social progress, and fourth in environmental performance.

Environmental

Oil and Gas Emissions and National Emission Reduction Targets

The oil and gas producing sector accounts for 26% of Canada’s total greenhouse gas (GHG) emissions. Downstream combustion of oil and gas products such as natural gas, gasoline, diesel, jet fuel, and heating oil accounts for an additional 45% of Canada’s total emissions. Current oil and gas production-related emissions were 193 Megatonnes (Mt) in 2018, up from 158 Mt in 2005 and 106 Mt in 1990. This rise is a result of production growth during the period.

Canada’s Paris Accord target is to reduce national emissions from 730 Mt in 2005 to 511 Mt by 2030. The current focus is on a more ambitious target of net zero emissions by 2050.

For the oil and gas production sector, there are a number of federal and provincial measures in place or underway to reduce GHG emissions, including:

• A federal output-based pricing system • Methane regulations • Clean fuel standard • Strategic innovation funding • An oil and gas clean technology program; • A clean growth program

There are also numerous strategies and technologies that oil and gas companies can adopt to further reduce emissions and their operations’ environmental impact, including:

• Low carbon electrification, perhaps including use of small nuclear reactors, Offshore electrification pathways • Carbon capture and storage/use • Reducing methane emissions 12

• Energy efficiency • Petroleum sector product diversification, including petrochemicals, low emitting Natural Gas Liquids (NGLs), LNG and clean hydrogen production • Solvent-based hydrocarbon recovery technologies • Partial upgrading • Renewable energies including biomass • Digitalization, automation and the use of artificial intelligence • Marine vessel decarbonisation, improving spill monitoring, detection and response capacity to enhance marine protection

Canada’s oil and gas industry operates in one of the most stringent regulatory environments in the world. Due to the sector’s high relative emissions intensity, innovation will be critical to maintaining competitiveness. Fueled by the success of technology and innovation, and driven by top down governmental regulation, more and more companies are formalizing and communicating targets for further decreases.

Broad statements around industry emission reductions plans and strategies are challenging due to the sheer number of companies. However, specific commitments by Canada’s largest oil and gas firms are instructive, not only because they cover the majority of total operations but also because they can be credibly taken as an industry sentiment indicator (see table 3). For example, Both Suncor and Cenovus Energy have set a target to reduce their GHG intensity by 30% by 2030 Canadian Natural Resources has set a long-term aspirational goal of net-zero emissions in its oil sands operations.

Table 3 - Top 10 Canadian Oil and Gas Companies Corporate Sustainability Commitments

Company GHG Emissions Reduction Plan 2030 GHG Targets 2050 GHG Targets ESG Other Environmental Rating* Commitments

Cenovus  Operational optimization,  Reduce emissions  Net zero GHG SAM: 33  Reclaim 1,500 decommissioned incorporating electricity per barrel by 30% emissions by 2050. wells sites - as part of new MSCI: A- cogeneration capacity into by 2030 using a sustainability targets by 2030. (above future oil sands phases, more 2019 baseline, average)  Complete $40 million of caribou use of solvent technology to while keeping flat habitat restoration work by 2030, reduce steam needed to produce its total CSR: 75% restoring 4,000 km of land and bitumen, and methane emissions emissions. planting 5 million trees. reductions in its conventional drilling operations.  Achieve a fresh water intensity of maximum 0.1 barrels per barrel of oil equivalent.

Canadian  Work towards zero-emissions SAM: 29  Methane emissions reduction of target (date TBD) 400,000 tonnes of CO2 Natural MSCI: B equivalent/year to meet Alberta’s Resources  Carbon capture and storage of (laggard) 45% reduction target from 2014 Limited 2.7 million tonnes annually CSR: 76% (CNRL) levels by 2025.  Natural gas production as a  Fuel and natural gas conservation; lower emissions energy source. and flaring and venting reduction projects. Repsol  Direct emission reduction of 25%  Reduce carbon  Try to achieve net zero  Increase by 3,000MW its target for by 2025. intensity from a emission globally by low-carbon electricity generation 2016 baseline to 2050. capacity to 7,500 MW by 2025. (formerly  By 2040, reduce carbon intensity 20% by 2030. Talisman) by up to 40% from 2016 levels.  Improve oil sands  Reduce routine flaring by 50% and  Double the emission intensity by methane emissions by 25% in the  2021-2025 Strategic Plan will be production of 1.5% per year through Exploration and Production presented in the first half of biofuels from 2030, compared to (operated) business by 2025. 2020. vegetable oils to average improvements

600,000 tons per of 4.5% since 2013. year in 2030.

Company GHG Emissions Reduction Plan 2030 GHG Targets 2050 GHG Targets ESG Other Environmental Rating* Commitments

Husky  Emission reduction regulations  Since 2014, Husky has installed 100 should apply a price on carbon compressors in SK and AB to and support for the compress vented gas so it can be development of a market for used on-site or sold as fuel. environmental attributes such as Additional sites are planned for emission-offset credits. 2019.

 The Lloydminster plant captures up to 250 tonnes a day of CO2 to aid in enhanced oil recovery, which involves CO2 being injected into reservoirs to increase oil production.

Suncor  Spend $1.4 billion to install two  Reduce emission AM: 59  Annually investing about $200 cogeneration units at its Oil intensity by 30% million to support R&D. Energy MSCI: A Sands Base Plant in Alberta, thus by 2030 relative (above  Launching a new initiative to reducing GHG emissions by 25%. to a 2014 average) connect the oil and gas industry baseline.  Drive energy efficiency at all with entrepreneurs and innovators CSR: 72% Suncor facilities and switch to with new solutions. lower-carbon fuels such as  Supporting the NRG COSIA Carbon natural gas. XPRIZE, a $20 million global  Develop and pilot technology to initiative designed to accelerate extract bitumen and optimize new technologies by converting downstream processing. CO2 emissions into valuable and useable products.  Greening the electricity grid by investing in cogeneration and  Storing CO2 underground and renewable energy. minimizing heat loss.

Imperial Oil  Decrease GHG emissions SAM: 76%  Increasing cogeneration capacity intensity by 10%, at the by eight percent overall with the MSCI: companies operated oil sand addition of a new cogeneration N/A facilities by 2023, compared to unit at the Strathcona refinery, to 2016 levels. CSR: 76% be operational by 2020.

Company GHG Emissions Reduction Plan 2030 GHG Targets 2050 GHG Targets ESG Other Environmental Rating* Commitments

Crescent  Focusing emission-reduction  Investment in gas conservation Point efforts on methane by capturing infrastructure contributed to a 12% and processing the natural gas decrease in absolute emissions in associated with production. 2018.

 Continuing to convert truck fleet from gasoline to propane. Shell  Reduce carbon intensity at  To halve the Net  Selling more natural gas compared Groundbirch in BC by using Carbon Footprint of to oil; selling more biofuels; selling electricity instead of natural gas the energy products more electricity; developing more for the processing plant, using Shell sells by 2050. carbon capture and storage (CCS) gas instead of diesel to power capacity and employing nature-  Plans to report their drilling, and using solar energy to based solutions, such as planting Net Carbon Footprint power pumps. forests or restoring wetlands to act numbers yearly. as carbon sinks.  Reduce Net Carbon Footprint of energy products by around 20% by 2035 and by around 50% by 2050

Arc  Measuring and reporting of  Achieve a greenhouse gas emission Resources carbon emissions intensity reduction target of 25% by the end of 2021 relative to their  Evaluating economic 2017 baseline. opportunities to reduce emission intensity and to participate in  Reductions achieved through carbon market further electrification of ARC’s BC facilities, application of low-  Support research and emission technologies, and exploration of new technologies. continuing to divest of high-carbon producing non-core assets.

Athabasca  Displace diesel fuel for natural  Renewable energy sources used Oil Sands gas in light oil drilling & when practical (e.g. solar panels on completion operations when observation wells) available

Company GHG Emissions Reduction Plan 2030 GHG Targets 2050 GHG Targets ESG Other Environmental Rating* Commitments

 Optimized diluent recovery  Received reclamation certificates systems and facility heat for over 585 well sites integration to reduce carbon  Planted ~31,000 trees in 2018. intensity.

 Flow control devices and non- condensable gas co-injection improve steam oil ratios.

MEG Energy  Aims to achieve net zero (in pilot project) by 2022

Teck  Carbon neutral by 2050 “across Resources all operations and activities.”

*SAM, or RobecoSAM, is an S&P Global company. Scores are graded out of 100 (i.e. a score of 29 means it has a grade of 29/100, or very low). MSCI, or Morgan Stanley Capital International, provides ratings based on scale of CCC, B, BB, BBB, A, AA, AAA. CSR, or Corporate Sustainability Index, evaluated based on 12 subcategories of ratings and rankings on community, employees, environment, and governance.

G20 ENERGY MINISTERIAL

ISSUE

 Minister O’Regan will participate in the G20 Energy Ministerial Meeting, to be held virtually on September 27-28 under the Presidency of the Kingdom of Saudi Arabia (KSA).

BACKGROUND

 In 2019, under Japan’s G20 Presidency, Canada played a strong role in achieving a consensus-based joint Energy and Environment Ministers’ declaration that included a reference to the Paris Agreement.  Under the theme “Realizing Opportunities of the 21st Century for All”, KSA’s objectives for the 2020 G20 Presidency have been: (1) Empowering people; (2) Safeguarding the planet; and (3) Shaping New Frontiers. o The Leaders’ summit is planned for November 21-22, 2020. o The COVID-19 pandemic has strongly shaped the 2020 G20 discussions, with economic recovery discussions eclipsing traditional themes such as international trade, poverty alleviation and the fight against climate change.  Under the Energy Track, KSA is pushing for 3 main outcomes: o Advancing the carbon circular economy concept, based on the “4Rs:” reducing (renewables, energy efficiency, nuclear), reusing (CCS, emissions to value), recycling (bio-energy, hydrogen) and removing (CCS, direct air capture) emissions. o Launching a “G20 Initiative on Clean Cooking and Energy Access” based on a report prepared by Sustainable Energy for ALL on “G20 Forward-looking Options for Enabling Pathways for Universal Access to Energy”; and o Endorsing “G20 Guidelines on Energy Security and Markets Stability”  G20 energy ministers met on April 10 to discuss energy market stability and issued a statement “to take all the necessary measures to ensure energy market stability" and "to ensure the balance of interest between producers and consumers, the security of our energy systems and the uninterrupted flow of energy”. o Energy Ministers also decided to establish a voluntary short-term Energy Focus Group (EFG) to develop response measures. Since April 2020, the EFG discussed a range of measures, including the adjustment of energy production, monitoring of consumption and supply reserves, and data transparency. Their work also highlighted the importance of sustained capital investments to support short and long-term global energy security and stability.  [redacted]

KEY CONSIDERATIONS

EFG  Canada has been an active member of the EFG and is contributing to the finalization of a report from EFG members to Energy Ministers that will: o Report on progress made since April 2020 to stabilize world energy markets; and o Recommend the continuation of this important work given the continued uncertainty and fragility of markets. [redacted] o As part of this EFG work, Canada has been stressing the importance of investment attraction and innovation to ensure the short and long-term stability of world energy markets. Energy Ministers’ Communique  Canada’s main objectives are to achieve an energy ministers’ communique that: o [redacted]

NEXT STEPS

EFG  Negotiations are ongoing on the final version of the EFG recommendations. These are expected to conclude prior to the start of the Energy ministerial o Once agreed to by EFG members, the EFG proposed ministerial statement would need to be approved by those G20 members that are not party to the EFG. o Canada is consulting with like-minded countries to support a consensus outcome. The EFG ministerial statement will be included as a separate paragraph in the broader G20 energy ministerial communiqué

Energy Ministers’ Communique  The next negotiation sessions are planned for Sept 17-19 and Sept 23-25. o NRCan is consulting with GAC and ECCC to develop common Canadian positions and negotiation strategies. o Department officials are conducting bilateral outreach (including with KSA, the US, EU, UK, Germany, Japan, Italy, India and Mexico) to reinforce our positions and build support for our primary objectives.  The Ministerial discussions will likely entail further negotiations to achieve consensus on the final communiqué text.

o Department officials will provide detailed instructions on negotiating positions based on the results of the Sept. 23-25 negotiation session.

3 UNCLASSIFIED

CLEAN ENERGY MINISTERIAL/MISSION INNOVATION

ISSUE

 Minister O’Regan will participate in the 11th Clean Energy Ministerial and 5th Mission Innovation Ministerial meetings (CEM11/MI5) on September 22 and 23, 2020.

BACKGROUND

 CEM is a member-driven organization of 27 countries and the European Commission. Members account for approximately 90 percent of global clean energy investments and 75 percent of global greenhouse gas emissions.

 Canada has been a member since the CEM’s inception in 2010, with NRCan as the lead department. In 2019, we hosted the 10th Ministerial meeting in Vancouver, advancing an inclusive agenda that sharpened the CEM’s focus on gender equality and ensuring an inclusive transition for workers and communities.

KEY CONSIDERATIONS

 CEM membership provides Canada with a unique opportunity to demonstrate leadership and collaborate multilaterally to accelerate the deployment of clean energy technologies globally and advance our clean energy transition.

 In an increasingly crowded multilateral ecosystem, this is a unique collaborative model of shared global leadership that brings together major industrial powers with key emerging economies. It does this in two ways: (1) an annual Ministerial meeting to set direction, and (2) a suite of technical work streams on a wide range of clean energy issues involving the public and private sectors.

 Canada co-leads 11 of the current 26 work streams across a range of topics, including: electric vehicles, nuclear innovation, women in energy, clean hydrogen, and bioenergy. We also participate in an additional eight work streams, which advance action on CCUS, energy efficient appliances, smart electricity grids, energy data, and flexible power systems. This work is tightly and practically linked to Canada’s decarbonisation goals.

 CEM11 will unfold in in two parts, with a series of pre-events happening during the week of September 14th and the Ministerial plenary on September 22nd. Canada will be represented in a number of pre-events including participation by:

o Minister O’Regan in the nuclear and hydrogen sessions, which are key components of our clean energy and climate action plan;

o Parliamentary Secretary Lefebvre who will moderate a session on inclusivity and preparing the energy workforce of the future, which will set

UNCLASSIFIED

the stage for the Minister’s participation in the September 22nd plenary; and,

o DMA Tupper who will co-launch two new work streams on electric vehicles and the biofutures platform and participate in an event on gender equality in clean energy, highlighting Canada’s international leadership in this area, including through Equal by 30.

 Minister O’Regan’s participation in the Ministerial plenary on September 22nd offers an opportunity to double down on Canada’s inclusive, people-centered, green recovery and energy transformation. This messaging also builds on his numerous IEA engagements throughout the spring and summer.

o He will also launch a call to action for interested CEM members to join Canada in exploring a new area of work on a skills-focused inclusive energy transition.

 The Saudi hosts and CEM Secretariat are encouraging Ministers to attend the entire plenary from 7:00 – 10:30 EDT, but recognize this may not be possible and have designed the virtual platform so that not all Ministers will be on screen at the same time to give Ministers flexibility in their participation.

 Plenary discussions will be divided across four sessions, based on geographic time zones, to encourage the greatest degree of participation. The Minister will participate in the September 22nd plenary session 4 from 09:45 – 10:15 EDT, alongside other Ministers from the Americas and Africa (South Africa, Brazil, the United States, Mexico, and Chile).

NEXT STEPS

 NRCan will implement a social media plan to showcase Canadian leadership at CEM11 including key announcements and achievements in accelerating the clean energy transition.

 Canada will work with other interested members to be in a position to launch the new area of work on an inclusive economic recovery and clean energy transition, to be launched at CEM12 in Chile.

 Canada will continue to demonstrate a leadership role in the CEM as a co-lead of 11 work streams on topics of strategic importance for us.

 Canada will consider membership in two new areas of work being launched under the CEM on decarbonizing hard-to-abate industrial sectors and energy storage.

UNCLASSIFIED

CONTACT PEOPLE  Eric Bélair, DG, Energy Policy and International Affairs Branch (EPIB), Low Carbon Energy Sector  Jean-François Gagné, Director, International Energy Division, EPIB, Low Carbon Energy Sector

STRATEGIC INTERTIES

ISSUE

 Over the next 18 months, provinces and utilities are expected to make decisions on whether to pursue three transmission interconnection projects (interties), which, if built, would reduce emissions by 5 to 6.5 megatonnes (Mt) per year by 2030. [redacted]

BACKGROUND

 Strategic intertie projects that connect jurisdictions with surplus clean power to those that need it can help affordably and reliably phase-out coal-fired power generation by 2030, as required by federal regulations established in 2018. In the absence new interconnections, these jurisdictions are likely to build natural gas turbines (or other higher emitting options) to replace coal, thereby locking in GHG emissions for the life of the replacement assets.

 Priority Projects: NRCan has been working with the provinces and utilities to advance three priority projects that will require decisions over the next 18 months:

o The Atlantic Loop ($3B), [redacted] to bring clean hydropower to the Maritime Provinces to help phase-out coal-fired power generation. This work is being undertaken as a part of a ministerial commitment under the Atlantic Growth Strategy;

o The Prairie Link ($1.5 to $1.8B), to build new transmission between MB and SK, to enable SK to import more clean hydropower from MB, phase- out coal-fire generation and position SK to deploy Small Modular Reactors in the 2030s; and

o The North Montney Electricity Supply project ($400M), to enable the electrification of natural gas production in BC and position Canada as a supplier of the world’s cleanest LNG. [redacted]

 This work has been overseen by planning committees, co-chaired at the DM or ADM level with provincial equivalents.

 CIB Investment: The Government created the CIB to co-invest in projects that are revenue generating and can transfer risk to the private sector. The Government has repeatedly emphasized that the CIB can and should co-invest in strategic intertie projects, most recently in its commitment to create a $5 billion Clean Power Fund, to be delivered through the CIB’s existing funding allocation.

 Both Infrastructure Canada and the CIB have been closely involved in federal work on the three priority projects. Finance Canada’s involvement has recently increased.

 [redacted]

KEY CONSIDERATIONS  [redacted]

 Timing: The three projects are at different stages of development. [redacted] The specific infrastructure projects and associated commercial arrangements for the Atlantic Loop project may take another 12 to 18 months to develop, given the number of partners involved. The nature of the commercial arrangements may depend on the level of infrastructure support from the federal government. Different timelines imply the likely need for multiple decisions from Cabinet.

NEXT STEPS

 [redacted]

 As DM, you co-chair the federal-provincial planning committee that is overseeing this work and it is expected to meet in October. Pre-engagement before this milestone with federal colleagues to ensure that they are supportive of any proposed next steps will be critical.

CONTACTS:  Marco Presutti, Director General, Electricity Resources Branch (ERB), LCES  André Bernier, Senior Director, Renewable and Electrical Energy Division, ERB, LCES

A HYDROGEN STRATEGY FOR CANADA

ISSUE

 Canada is well-positioned to grow a globally competitive hydrogen sector. NRCan is leading the Government’s efforts to develop a Hydrogen Strategy for Canada, which will be ready to release this fall. The strategy will provide a framework to guide government actions and investment decisions, grow economic opportunities across the country, and position hydrogen as a key component to meeting Canada’s goal of net- zero green house gas emissions by 2050.

BACKGROUND

 Momentum on hydrogen is growing globally. Many countries see hydrogen as a key component of long-term energy and environment strategies, and are making significant investments as part of their green recovery plans (e.g. Germany, €9 B; €EU 45 BJapan, $3.2B; and the US, $3.2B).

 Widespread adoption of zero-emission hydrogen offers economic and environmental opportunities across Canada, especially in hard to abate end-uses where electrification is not viable (e.g., oil and gas, refining, mining iron, steel, and medium- and heavy-duty transport). Hydrogen is a critical component to meeting Canada’s goal of being net-zero by 2050.

 Canada can leverage its abundant and diverse range of feedstock and pace-setting clean tech companies to grow domestic production of hydrogen and facilitate its use across the economy. This domestic growth will also help position Canada to become a world-leading supplier of hydrogen and technologies, generating economic opportunities through exports and direct foreign investment.

 NRCan has completed three years of work to support the Strategy, collaborating with stakeholders from across the private sector, governments at all levels, Indigenous leaders and academia. The Strategy will identify optimal opportunities for clean hydrogen production and end-use across Canada, in the short, medium, and longer term, while also identifying export market growth potential for Canadian clean hydrogen, as well as hydrogen and fuel cell technologies and services.

 Every province sees opportunities for hydrogen in their long-term energy future. [redacted]

 Implementing the Strategy will require an all-of-government approach. As such, NRCan has been working closely with relevant federal departments and agencies. Many participated in recent stakeholder engagement sessions. A draft of the Strategy was shared at the working level and ADMs during the week of September 14.

KEY CONSIDERATIONS 1

 To meet Canada’s net-zero goal, the economy will need to be powered by two equally important energy sources – clean power and low-carbon fuels (e.g., hydrogen, advanced biofuels, liquid synthetic fuels, renewable natural gas).

 If Canada fully seized the opportunities outlined in the Hydrogen Strategy, the supply of hydrogen could grow by more than 300% and make up about 6% of Canada’s energy mix by 2030. This would result in 45 Mt of greenhouse gas emissions reductions incremental to the Clean Fuel Standard. By 2050, hydrogen could make up more than 30% of Canada’s energy needs. This would result in 190MT greenhouse gas emissions reductions, as well as an industry that employs over 350,000 Canadians and generates over $50B of revenues from the sale of hydrogen and related equipment.

 Implementing the Hydrogen Strategy for Canada is an important demonstration of the Government’s commitment to hydrogen as part of the country’s energy transformation.

 [redacted]

NEXT STEPS

 Energy, Mines and Ministers Conference – EMMC (Sept. 25 and 28): Provinces and territories are expected to show strong support for hydrogen. The federal government expects support for its proposal to formalize a new federal/provincial/territorial working group focused on hydrogen production and deployment, under the Energy Steering Group of EMMC.  Draft Strategy (early October) - The draft Hydrogen Strategy, incorporating input from other government departments will be provided for your review. Given broad interest, it is recommended that you convene federal DMs to confirm support for the strategy.  Approvals and preparation for Launch (mid-October to early November: The Strategy would be finalized, and submitted for your approval and that of the Minister, at which point it could be launched at the discretion of Government.  Final Stakeholder Roundtable (late-October/early-November): An opportunity for you and/or the Minister to engage with key stakeholders from the private sector, governments at all levels, Indigenous communities, non-government organizations and academia to socialize the Strategy’s findings and essential actions, building momentum for its launch. This could be combined with the launch (next item).  [redacted]

CONTACT PERSON:  Debbie Scharf (613-947-0373), Director General, Clean Fuels Branch, LCES  Paula Vieira (613-513-3789), Executive Director, Clean Fuels Branch, LCES

NUCLEAR ENERGY AND SMALL MODULAR REACTORS (SMRs)

ISSUE

 Canada’s nuclear sector produces clean, reliable power that contributes 15% of Canada’s electricity. SMRs are expected to unlock new and significant domestic and global market opportunities for clean power in Canada, including in hard-to- decarbonize sectors. NRCan is preparing to launch Canada’s SMR Action Plan in November 2020, engage Canadians on modernizing Canada’s radioactive waste policy [redacted].

BACKGROUND

CANADA’S NUCLEAR SECTOR

 Canada has 19 operating nuclear power reactors, producing 15% of Canada’s electricity, including 60% of Ontario from 18 reactors over three sites and 35% of New Brunswick from 1 reactor. Today, the nuclear sector contributes $17B per year to Canada’s GDP, with approximately 76,000 total jobs across the nation.  The sector is primarily concentrated in Ontario, New Brunswick and Saskatchewan, but nuclear R&D is conducted at 37 institutions in nine provinces, and nuclear medicine is practiced across the nation. Bruce Power and OPG supply over 40% of the world’s supply of Cobalt-60, a radioisotope used in the sterilization of once-through medical equipment around the world, vital during the pandemic.  Canada’s nuclear sector has historically been built around the CANDU concept. SNC Lavalin is the exclusive licensee of CANDU legacy IP that is owned by the Crown. o OPG and Bruce Power are refurbishing the Darlington (4 reactors) and Bruce (6) nuclear plants to extend their lifespans by approximately 30 years, a project totalling $26B. The Point Lepreau plant (1 reactor) in New Brunswick came back online from refurbishment in 2012, and the Pickering plant (4) is scheduled to close in 2024. o Canada has also exported this technology abroad to Argentina, China, India, Pakistan, Romania, and South Korea. Globally, there are 30 CANDU reactors in operation, representing a 7% market share (in terms of the absolute number of reactors).

SMALL MODULAR REACTORS (SMR)

 SMRs are a new class of nuclear reactors that are considerably smaller in size and power output than conventional nuclear power reactors, with enhanced safety features. The technology is expected to unlock new and significant domestic and global market opportunities for non-emitting electricity in a number 1

of different applications including power grids (to replace coal plants), heavy industries such as mining and petroleum production, and remote communities. SMR are emerging as a game-changing technology for the nuclear industry with three key advantages over existing reactor technologies, including: o Cost: SMRs are dramatically lower in cost than conventional reactors, in part due to the ability to factory mass produce many of the component parts; o Safety: SMRs are inherently more safe than conventional reactors, with most designs based on passive or “walk-away” safety features; and, o Environmental Impact: SMRs produce much smaller quantities of radioactive waste, and in some cases, re-use existing nuclear was as a fuel source. SMRs are also a non-emitting alternative to natural gas and coal power that can put Canada on a path to achieve net-zero emissions by 2050. Deployment in Canada could reduce GHGs by 3 megatonnes annually by 2030, and 12 megatonnes by 2040.  Canada’s SMR Roadmap was published in 2018, the result of a pan-Canadian dialogue on SMRs convened by NRCan with provinces, territories, utilities, industry, academics, indigenous organisations, and other stakeholders. The SMR Roadmap made 50+ recommendations for action by governments, industry, and other stakeholders to seize Canada’s SMR opportunity. The Roadmap identified 3 potential applications for SMRs in Canada: 1. On-grid power generation, especially in provinces phasing out coal; 2. On- and off-grid combined heat and power for heavy industry, including for mine sites and the oil sands; and, 3. Off-grid power, district heating, and desalination in remote communities.  Alberta, Ontario, New Brunswick and Saskatchewan are each pursuing SMRs as a non-emitting source of energy, for potential deployment ranging from the late 2020s to early 2030s. The Premiers of these provinces recently signed an MOU to cooperate on the development and deployment of SMRs in Canada.  [redacted]

CANADA’S SMR ACTION PLAN

 In a speech to the Canadian Nuclear Association in February 2020, Minister O’Regan announced that the Government of Canada and its partners would launch Canada’s SMR Action Plan in fall 2020, a report that will outline progress and efforts across Canada to respond to recommendations made in the SMR Roadmap.  The Action Plan will outline the progress and ongoing efforts across Canada to seize the opportunity for SMR deployment in Canada, with participation invited from provinces and territories, Indigenous Peoples, utilities, industry, civil society, and other partners. Over 100 partners have indicated they will participate in the

Action Plan, which will be launched in November 2020

RADIOACTIVE WASTE POLICY

 In a speech delivered at the Canadian Nuclear Association Conference in February 2020, Minister O’Regan announced that NRCan will work with stakeholders and Canadians to ensure that Canada has a strong policy framework and a clear plan for the safe, long-term management of all our nuclear waste.  Radioactive Waste is a by-product of nuclear

power generation and other applications (e.g., research, medicine) that is hazardous [redacted] to all forms of life and the environment, and highly regulated to protect human health and the environment.

 Canada’s current Radioactive Waste Policy Framework was established in 1996. A core principle of the policy is that the polluter pays (i.e. owners are ultimately responsible for the on-going management and funding of the waste they produce).

 Canada has a plan for its spent fuel; however, there is currently no long-term solution for intermediate-level waste (ILW) in Canada, and not all low-level waste (LLW) has a path forward.  The Minister of Natural Resources is responsible for progress on implementing Canada’s plan for nuclear fuel waste under the Nuclear Fuel Waste Act and is responsible to Parliament for both the Canadian Nuclear Safety Commission and Atomic Energy of Canada Limited.  All radioactive waste in Canada is safely managed at storage facilities licensed by the CNSC (e.g., above ground buildings). Owners are working to develop longer-term solutions that require less active management (arguably safer), are less costly, and deal with the waste on a more permanent basis.  There are currently four projects underway/proposed across Canada to develop and implement long-term storage solutions for Canada’s radioactive waste.

KEY CONSIDERATIONS

CANADA’S NUCLEAR SECTOR

 Over the past decade (2009-2015), the Canadian nuclear sector has been restructured from a vertically-integrated, government-led model to one of private sector leadership and competition. That said, as a federally regulated and

strategic sector, nuclear technology development in Canada has historically occurred in close partnership with the federal government – as is the case in other countries.  Canada’s nuclear sector is currently based on CANDU reactor technology, which holds a 7% share of the global nuclear market. o While the $26B investments in Ontario’s CANDU refurbishments have ramped up the domestic supply chain and contributed significantly to job creation in the sector, this is expected to peak in 2023. o [redacted]

SMALL MODULAR REACTORS (SMR)

 SMRs can provide clean energy for both on- and off-grid applications, helping to reduce emissions and put Canada on a path to achieve net-zero by 2050. This includes both electricity generation and the ability to produce high-temperature steam to reduce the environmental footprint of industrial operations (e.g. oil sands). Overall, Canada’s SMR Roadmap found that SMR deployment could result in a 3 megatonne reduction of GHG emissions by 2030 and 12 megatonnes by 2040, and that electricity costs from SMRs are expected to be competitive with other non-emitting sources.

 Canada is seen as one of the most attractive places to develop SMRs due to: our strong global brand; world-leading science, expertise and labs; an extensive ramped-up supply chain; and, our world-renowned regulator. Other countries such as the US and UK are seeking to partner with Canada. Several leading SMR developers have established themselves in Canada and have been successful in securing investment and creating hundreds of jobs.

 Stakeholders, including utilities and SMR innovators, are already making significant investments in SMR development, however high up-front capital costs and long timeframes to re-coup costs make nuclear technology development difficult anywhere in the world without strong involvement from national governments. [redacted]

 [redacted]  Forecasts suggest that the potential global market for SMRs could exceed $150- 300 billion per year by 2040. Canada is well positioned to capture a minimum of 5-10% of the global SMR market, creating significant opportunities for job creation and economic growth in various regions (e.g. ON, NB, SK, AB, and the North).

SMR ACTION PLAN

 The SMR Action Plan will be released in November 2020 and will demonstrate robust support for SMRs, including from outside the nuclear energy sector, with over 100 partners from across Canada expected to endorse the Action Plan. o Aside from the nuclear sector, partners include mining and oil and gas companies and associations, civil society, and some Indigenous voices. Several mining and oil and gas companies also have SMR feasibility assessments underway for deployment in Canada.  The SMR Action Plan is a response to the 2018 Roadmap, and all key enablers identified in the Roadmap will be submitting a chapter for the Action Plan. The federal government chapter will include actions by NRCan as well as other government departments and agencies.

RADIOACTIVE WASTE POLICY

 Following the Government’s commitment in February 2020 to review its existing policy for radioactive waste, and establish an associated strategy, NRCan is preparing to engage Canadians on modernizing Canada’s radioactive waste policy and to develop the associated strategy for all of Canada’s radioactive waste. The engagement is planned to be launched in late Fall 2020.  While many support nuclear energy and its development, one of the main concerns among Canadians is radioactive waste management. Canada’s Radioactive Waste Policy Framework has not been reviewed since its inception in 1996, and has been the subject of three petitions to the Office of the Auditor General Canada since 2017, which have suggested the need for more clarity, and the development of an updated federal policy for the long-term management of radioactive waste.  Addressing the management of radioactive waste will demonstrate environmental leadership. It also directly supports the ongoing use of nuclear in Canada today as well as future nuclear development, including the development of Small Modular Reactors (SMRs) in Canada. It plays an important role in gaining public confidence in ongoing nuclear energy production as well as the deployment of new nuclear technologies. Nuclear energy, including the advancement of SMRs, can help Canada achieve its target of net-zero emissions by 2050.

NEXT STEPS

CANADA’S NUCLEAR SECTOR

 [redacted]

SMALL MODULAR REACTORS (SMR)

 SMR technology development is moving quickly in Canada and globally. Multiple technology selection processes are underway in Canada including: a joint process between ON and SK for technology selection by early 2021 and operation by 2028 in ON and 2030 in SK; in NB with two technologies for demonstration in the early 2030s; and, micro-SMRs for demonstration at national laboratory sites by 2026. o [redacted]

 [redacted]

SMR ACTION PLAN

 On November 18, 2020, Minister O’Regan will launch the SMR Action Plan at Canada’s second International SMR Conference, which covers next-generation nuclear technologies and SMRs. o The Department has been working with federal partners, Provinces and Territories, Indigenous peoples across Canada as well as industry, academia, and civil society to prepare the SMR Action Plan to be launched at a prominent stakeholder event, G4SR-2.

RADIOACTIVE WASTE

 NRCan is preparing to engage Canadians on modernizing Canada’s radioactive waste policy. The engagement is planned to be launched in late fall 2020, [redacted]. In light of COVID-19, engagement will be carried out virtually. The new policy would be informed by the views of Indigenous people, the general public, stakeholders, experts, and any other interested parties.  [redacted]  At the same time NRCan is updating its radioactive waste several radioactive waste projects will be advancing: o Canadian Nuclear Laboratory (CNL) has three long-term waste and decommissioning projects undergoing environmental assessment and review by the CNSC. Decisions on the projects are expected by 2021. o NWMO has been conducting an extensive public engagement process since 2010 to select a disposal site for all of Canada’s high-level nuclear fuel waste. The process began with 22 willing-host communities in 2010, and narrowed down to 2 communities in 2019. The NWMO expects to select its preferred site by 2023 and to submit its Impact Assessment Project Description and Licensing application the same year.

CONTACT PERSON: Marco Presutti, Director General, Electricity Resources Branch,

LCES

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CANADIAN CENTRE FOR ENERGY INFORMATION

ISSUE

 The Canadian Centre for Energy Information (the Centre) will launch its website on October 7. The launch will set the stage for future developments that will bring the Centre to maturity.

BACKGROUND

 Energy information is critical to inform the public dialogue and decision-making by Canadians, governments, industry and others. As highlighted in an October 2018 parliamentary report, stakeholders agree that energy information is hard to find, incomplete, and often incoherent and dated.

 The Government of Canada is in the process of developing a modern energy information system through the establishment of the Centre. Announced in Budget 2019, the Centre was allocated $15.2M over 5 years, plus $3.4M/year ongoing, to simplify access to Canadian energy information and improve the overall quality of Canada’s energy data.

 Specifically, the Centre will work with users and providers of data to: o Compile, reconcile and integrate energy data from various Canadian sources; o Make data from multiple providers freely available on a one-stop, user- friendly website; o Harmonize energy definitions, measurements and standards; o Improve the completeness, coherence and timeliness of Canada’s energy information; and, o Provide new data, analyses and tools to support modeling and collaborative research.

 The Centre is a partnership between NRCan and Statistics Canada. It is housed at Statistics Canada to leverage the agency’s world-class expertise, networks of partners, established information technology, data management infrastructure and data collection and dissemination experience.

KEY CONSIDERATIONS

 The Centre will establish a public presence with the launch of its website, scheduled for October 7.

o The website will provide integrated access to Statistics Canada’s energy- related data and brings together over 550 energy information products from more than 70 sources including federal, provincial, and territorial governments, industry associations, academia, NGOs, and international

UNCLASSIFIED

organizations. This includes NRCan products such as the National Energy Use Database, the Energy Fact Book and interactive maps of solar PV potential across Canada.

o Following the launch, content on the website will be expanded over time, as new data products, visualization tools, analyses, and other items become available.

 A ‘beta’ version was shared with around 40 stakeholders (e.g. provincial/territorial energy departments, industry associations, some academics and NGOs) in July. Feedback was positive and informed improvements ahead of the public launch.  Statistics Canada is finalizing the website for public launch and key upcoming milestones include:

o Communications strategy: Statistics Canada’s communications team is working closely with their counterparts at NRCan, CER and ECCC. Draft communications products are expected September 23. NRCan is preparing for a Ministerial announcement.

o Website demo: Statistics Canada expects the website to be ready by September 25 for the purpose of providing demos to NRCan’s senior management and minister office.

o Release date announcement: As per standard practice, the October 7 launch date will be announced 2 weeks prior (i.e., September 25) in Statistics Canada’s online release calendar.

 Following the website launch, the Centre will embark on its 5-year plan to bring it to maturity. This includes engaging stakeholders on their data needs in order to prioritize the work to address gaps in existing data and develop data in emerging areas. For example, the governments of Alberta and British Columbia have a keen interest in environmental, social and governance (ESG) metrics.

Governance  The Centre’s governance includes a Steering Committee composed of Deputy Ministers from energy-related departments across federal/provincial/territorial government. This committee is co-chaired by the DM of NRCan and the Chief Statistician of Canada, Anil Arora.

 The DM committee met in July 2019 to discuss expectations for the Centre and the general approach to priority setting and integration of provincial and territorial data into the Centre.

o Follow-up occurred at two lower-level committees: the ADM-level Energy Steering Group (next meeting in October) and a working-level Technical Working Group (meets monthly).

UNCLASSIFIED

o A DM-level committee meeting could be organized in the Fall to engage your counterparts in the role the Centre can play in supporting ongoing policy discussions.

 The Centre’s governance also includes an External Advisory Body composed of energy experts from academia, industry, and NGOs. The committee held its inaugural meeting in July 2020 and is actively engaged on the website launch and priority setting to guide future developments.

NEXT STEPS

 Coordinating the launch of the website with Statistics Canada, Canada Energy Regulator, and Environment and Climate Change Canada to promote awareness, use, and ongoing development.

 Determining data priorities and launching the 5-year workplan that will bring the Centre to maturity.

CONTACT PERSON:  Eric Bélair, Director General, Energy Policy and International Affairs Branch, LCES (613-447-3398)  Eric Sanscartier, Director, Energy Economic Analysis Division, EPIAB, LCES (613- 447-3762)

CLEAN FUEL STANDARD

ISSUE

 Environment and Climate Change Canada (ECCC) is expected to publish the Clean Fuel Standard (CFS) liquid stream draft regulations this fall. Many of NRCan’s stakeholders, who have been quite vocal, will be impacted by this regulation, in particular emissions-intensive and trade exposed (EITE) industries such as oil and gas, refiners and mining. The regulations will also provide new opportunities for low-carbon fuel producers and clean technology providers. NRCan has been actively supporting ECCC in the development of the regulation.

BACKGROUND

 The Government announced in 2016 that it would develop the CFS, which will apply to liquid, gaseous and solid fuels used across the transportation, buildings and industrial sectors in Canada - the first of kind in the world. The CFS, developed as part of the Pan- Canadian Framework on Clean Growth & Climate Change, is following a phased approach. The liquid fuel stream (e.g. gasoline, diesel) is being developed first, followed by gaseous and solid fuels.

 The goal of the CFS is to reduce 30 megatonnes (Mt) of greenhouse gas (GHG) emissions annually by 2030, making it one of the most significant commitments to meeting Canada’s Paris Agreement target. The liquid stream will account for 23 Mt of the overall 30 Mt, and is scheduled to be in effect in 2022.

 The CFS will be a flexible, technology-neutral, performance-based standard that requires a reduction in the carbon intensity of fossil fuels used across transportation, buildings and industry. Several compliance pathways are available to obligated parties. These include reducing the emissions at any point along the lifecycle of fossil fuels (e.g. carbon capture and storage, improving efficiency at refineries), blending low carbon fuels, and end-use fuel switching (e.g. gasoline to electric vehicle, diesel truck to natural gas truck).

 Given the severity of the COVID situation, ECCC announced in April 2020 a delay in the publication of the CFS draft regulations for the liquid fuel stream from June to fall 2020 to allow for meaningful stakeholder consultation. They further signaled that their plan remained for the liquid stream regulations to come into effect in mid-2022.

 In June 2020, ECCC undertook a series of industry and government consultations on specific regulatory design elements and collected stakeholder submissions over the summer. They continue to hold bilateral discussions with various stakeholders as they finalize the draft regulations.

 NRCan has been supporting ECCC in the regulatory development for over three years through technical analysis and studies, workshops and stakeholder consultations.

KEY CONSIDERATIONS

 [redacted]

 NRCan stakeholders from the oil and gas, refining, biofuels, mining, and forestry sectors have been vocal, raising many concerns and recommendations regarding the CFS regulatory design. These comments range from over-arching concerns about the cumulative cost of climate regulations and the lack of a life-cycle assessment tool (used to calculate fuel carbon intensity values), to ensuring there are viable and feasible compliance pathways for obligated parties (e.g. refiners).

 Industry stakeholders have noted that the regulatory adjustments proposed by ECCC in June do not fully account for the impacts from COIVD and the current investment climate. Many stakeholders have suggested a further delay in timelines is warranted.

 Stakeholders have also been calling for government financial support to de-risk and attract capital investments in low-carbon fuel and technology projects in Canada. Increased innovation and deployment in upstream emission reduction technologies will also be required.

 [redacted]

NEXT STEPS

 ECCC is expected to release the draft regulations for the liquid stream in the Canada Gazette, Part I (CGI) in fall 2020. The final regulations are expected to be published in the Canada Gazette, Part II in fall 2021, and come into force in mid-2022. [redacted]

 NRCan will continue to support the design of the CFS, and will review and provide comments on key regulatory pieces [redacted].

 Once the draft regulations are released, there likely will be increased communications from stakeholders and meeting requests with NRCan’s DM and Minister. It will be important for NRCan to engage them, particularly in the context of the CGI 75-day comment period, as well as to discuss potential fiscal measures that could support compliance under the CFS.

CONTACTS:  Debbie Scharf (613-947-0373), Director General, Clean Fuels Branch, LCES  Paula Vieira (613-513-3789), Executive Director, Clean Fuels Branch, LCES

UNCLASSIFIED

LAUNCH OF EMISSIONS REDUCTION FUND (ONSHORE)

ISSUE

 The Emissions Reduction Fund is expected to be announced by the Government in early October. For the onshore deployment component of the program, the announcement will be followed by a series of stakeholder outreach sessions and the first call for proposals in late October. The offshore deployment component is working towards a mid-November launch.

BACKGROUND

 In the context of COVID-19, the Government of Canada created a new $750 million Emissions Reduction Fund to assist firms that are preparing to take actions to reduce greenhouse gas emissions, meet methane regulations and help keep oil and gas workers employed.

 Of the $750 million, up to $675 million is available to onshore conventional oil and gas companies, primarily to reduce green house emissions, with a focus on methane. The remaining amount, up to $75 million, is for the deployment of emissions reducing technologies as well as emissions related research, development and demonstration (RD&D) in the offshore sector.

 Methane emissions are one of the most potent greenhouse gases and Canada's oil and gas sector is the source of 43% of those emissions.

 The Fund will provide incentives to companies with the goal of maximizing reductions in methane and other greenhouse gas emissions, protecting the environment, and advancing research and development in the oil and gas sector.

 The Fund will maintain jobs and opportunities for Canadians in the oil and gas sector while positioning industry to keep up with, and lead, the global energy transition. This will also help the industry be more globally competitive in a post-pandemic environment.

KEY CONSIDERATIONS

 [redacted] Program officials are finalizing the program design for the onshore deployment component of the program, as well as the procedures for requesting, receiving and assessing proposals. Concurrently, NRCan is consulting with Alberta, British Columbia and Saskatchewan to ensure that the program design supports or supplements provincial methane reduction efforts.

 Planning is underway to have the Minister of Natural Resources make a formal announcement on or about October 6 about the Fund as well as the upcoming launch of the first request for proposals (RFP) for the onshore deployment component. Between the Minister’s announcement and the launch of the RFP, NRCan will hold outreach 1

UNCLASSIFIED

sessions to provide information to potential applicants about the program and eligibility requirements for refundable and non-refundable contributions. Non-repayable contributions will be made available to support projects that maximize emissions reductions

 Alberta is planning to announce compatible methane emissions reduction programs. NRCan is working to align communication strategies, and ensure the cross promotion of programs.

 For the $39.5M offshore deployment component of the Fund, NRCan is targeting a midNovember launch, with contribution agreements signed in early 2021. [redacted]

NEXT STEPS

 Formalize October 6 as the date for the Minister’s announcement.

 Work with provincial counterparts to align communication strategies and promote each other’s methane emissions reduction programs.

 Hold webinar sessions for potential applicants to the onshore component of the program.

CONTACTS:  Debbie Scharf (613-947-0373), Director General, Clean Fuels Branch, LCES  Nicole McDonald (613-302-8439), Director, Clean Fuels Branch, LCES

Canadian Forest Service Programs Competitiveness and COVID19

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2019 Forest Industry Competitiveness and COVID19 2 • NRCan’sCanadian Forest Service (CFS) delivers an integrated suite of forest sector specific programs to enhance the competitiveness of the forest industry. • The programs offer support at each step of the business cycle from innovation to market: – R&D of new products and processes – Bringing first-in-kind innovations to market – Creating new domestic and international markets – Supporting Indigenous economic development and participation in the forest sector. • COVID19 had an immediate impact on major element of the forest sector, resulting in curtailments, employment impacts, and delaying capital investments. • In particular, the pressure of increased health and safety costs challenged forest sector SMEs’ ability to maintain operations and successfully carry out the scheduled planting of 600 million seedlings. • This necessitated adjustments to NRCan’s programming to address COVID19 challenges, including the implementation of a new program. © Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2019 New COVID19 Measure: Supporting Forest Sector SMEs 3 • Implementing COVID-19 health and safety measures increased costs for forest sector SMEs – threatening jobs and tree planting infrastructure. • In response, the federal government is providing up to $30 million to offset these costs via a new CFS program. • Funding will flow through provinces and territories (PTs) to forest sector SMEs and will cover costs related to: – PPE, sanitizer, incremental accommodation or transportation, etc. • PTs received their notional funding allocation on Sep. 10, 2020. – [redacted] in base funding plus a weighted top-up combining a jurisdiction’s share of forest sector employment [redacted]; and their share of total trees planted [redacted]. • Agreements with PTs are currently being developed, with an objective of flowing funds later this fall. • The program sunsets Mar. 31, 2021.

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2019 Research and Development 4 • FPInnovations is a unique private not-for-profit R&D organization specializing in solutions to support Canadian forest sector’s global competitiveness. • Performs state-of-the-art research, develops advanced technologies, and delivers innovative diversification solutions. • Serves 140 forest product member companies and works out of campuses at UBC, Pointe Claire (Quebec) and offices in CFS Quebec (+300 specialists from coast to coast). • Collaborates with other research providers (i.e., CanmetENERGY, NRC, leading universities) on advancing forest bioeconomy opportunities. • Federal funding (≈ $20M/yr) delivered through NRCan/CFS Forest Innovation Program ($91.8M/3 years – expires March 2023). • New COVID19 Measures: up to $7.5M additional NRCan funding awarded in FY20/21 (of which $5.5M repayable in FY21/22-FY22/23) to cover lost industry contribution fees, and accelerate COVID19-related research (facemasks & filtration).

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2019 Commercializing innovative products and technologies 5 • Investments in Forest Industry Transformation (IFIT) offers non- repayable contributions (up to $20M) towards capital projects in the Canadian forest sector to develop, adopt or implement innovative, first- in-kind technologies across Canada’s forest industry facilities that will lead to increased competitiveness or diversified revenues. • Since 2010, the program has funded 43 projects and secured an estimated 5000 jobs in the forest sector. • Current envelope: $82.9 million/3y (expires March 2023). • New COVID19 Measures : Two intake windows (Summer 2020 and Winter 2021) provides additional flexibility to industry to access support. • Summer 2020 call for proposal closed September 10th; 70 proposals received; about $500M in support requested, representing a potential $2.2B in leveraged investments. – Evaluation of proposals is underway.

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2019 Expanding Market Opportunities 6 • Expanding Market Opportunities (EMO) program supports forest industry associations and other stakeholders to diversify offshore and domestic markets for wood products. • Leverage funding from provincial & industry partners across Canada. • Key markets include China, Japan, South Korea, non-traditional use of wood in Canada. • Project examples: • Work with code authorities to allow wood structures up to 5-storeys (China) • Provide technical support to the construction of 100 wood townhomes in Tianjin (China) • Convert projects using traditional building materials (e.g. concrete) to low-carbon wood projects (Canada). • New COVID19 Measures: reduced industry cost-share for certain project categories in FY2020/21 to improve industry partner cash flow while maintaining program delivery. Sino-Canadian Eco-District in Tianjin, China

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2019 Supporting Indigenous participation in the forest sector 7 • The Indigenous Forestry Initiative supports Indigenous-led economic development in Canada’s forest sector. • Since 2017, the IFI program has supported over 80 projects with over 120 Indigenous communities • Current Envelope: $12.6M/3y (expires March 2023). • New COVID19 Measures: Two call for proposal windows (Summer 2020 and Winter 2021) to accommodate communities who were not in a position to participate this summer due to pandemic lockdowns. • Summer call for proposals closed in August, 2020: a record number of applications received (113) seeking over $74M in funding (88% increase in $ ask over 2019). • Evaluation of proposals is underway. Forest to Frame project at Toosey mill Photo credit: Yunesit’in Government

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2019 Increasing the use of wood as a green building material 8 • Green Construction through Wood (GCWood) program supports low-carbon construction: • Demonstration projects of tall wood buildings, low-rise non-residential, and timber bridges. • An advanced education roadmap; and • Revisions to the National Building Code to allow 12-storey wood high rises. • Current envelope: $55M/5y through Pan- Canadian Framework on Clean Growth and Climate Change (expires March 2023). • New COVID19 Measures: potential for early renewal to add new demonstration streams and contribute to green economic recovery. Brock Commons UBC, Vancouver Origine, Quebec City

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2019 Using Forest Biomass to Reduce Reliance on Diesel 9 • The BioHeat stream of the Clean Energy for Rural and Remote Communities program helps communities reduce reliance on diesel using biomass heat • Since 2018-19, the program has supported 29 bioenergy projects across the country, including: – Bingwi Neyaashi Anishinaabek (ON) – Oujé-BougoumouCree Nation (QC) – Teslin Tlingit Council (YK) – Kapawe'no First Nation (AB) • Current Envelope: $55M/6y (expires March 2024). • New COVID19 Measures: potential to renew this program and support Indigenous communities’ transition from reliance on diesel to clean, renewable and reliable energy, and green economic recovery Teslin Tlingit Council - Biomass Energy Centre Photo Credit: Dan efforts. Brown

CANADA-U.S. SOFTWOOD LUMBER DISPUTE

ISSUE

 U.S. tariffs on Canadian softwood lumber continue to be one of the most significant trade irritants in the Canada-U.S. bilateral relationship, with Canadian exporters estimated to have paid [redacted] in duties since May 2017, negatively impacting their competitiveness.  NRCan provides expert economic analysis and policy advice to support litigation and negotiation on this file, as led by Global Affairs Canada, with a view to defending Canadian interests.

CONTEXT

Background

 The Canada-U.S. softwood lumber dispute is a long-standing issue that began in the early 1980s with U.S. accusations that Canadian stumpage (standing timber) prices were not market-based. Since 1982, there have been four cycles of U.S. investigations and litigation, punctuated by agreements whereby Canada agreed to restrict access to the U.S. market.  The latest dispute is the fifth in the cycle (Lumber V) and began following expiry of the nine-year 2006 Canada-U.S. Softwood Lumber Agreement (SLA).  The U.S. began imposing countervailing (CVD) and anti-dumping (AD) duties in 2017 to offset the alleged harm caused by “unfairly subsidized” lumber and alleged dumping by Canadian companies into the U.S. market.  While five investigated companies have individual combined CVD/AD duty rates ranging from 9.38% to 23.56%, the average “all others” combined rate is 20.23%. To date, NRCan estimates that Canadian softwood lumber exporters have paid [redacted] in duties since May 2017.

Ongoing Litigation

 In response to the U.S. imposition of duties, Canada launched five challenges before NAFTA Chapter 19 and WTO panels.  The final report of the NAFTA Chapter 19 injury panel was released on March 24, 2020, with the panel agreeing with the U.S. that imports of softwood lumber from Canada materially injured the U.S. domestic industry. Two other NAFTA challenges of the CVD and AD duties are in progress, with panels still being selected. It is expected that these panel selection processes will be complete by late 2020.  On August 24, 2020, a report of the WTO panel reviewing Canada’s challenge of the CVD duties was publicly released, finding overwhelmingly in Canada’s favour. [redacted]

UNCLASSIFIED

 The U.S. Department of Commerce completed its first annual Administrative Review of the duties (AR1) and is expected to release the final results at the end of November 2020. Preliminary results suggest duty rates could be reduced for some companies, however only the final results take effect and these could differ from preliminary results.

Role of Natural Resources Canada

 NRCan works alongside Global Affairs Canada on the softwood lumber file, providing subject matter expertise (including supporting Administrative Reviews) and critical economic and policy analysis and advice, [redacted].  Budget 2018 allocated 5 years of funding, beginning in 2018-19, to both departments for their respective softwood lumber activities.  NRCan’s Softwood Lumber Division (within the Canadian Forest Service) is the departmental focal point on this file, and works closely with policy and legal counterparts at Global Affairs Canada and the Trade Law Bureau, as well as maintaining close relationships with Canadian industry stakeholders.  On June 1, 2017, the Government of Canada announced $867 million in measures to support forest industry workers and communities affected by U.S. measures targeting softwood lumber under the Softwood Lumber Action Plan (SLAP). Certain financial assistance measures under SLAP continue to be available.

KEY CONSIDERATIONS

 Canada’s Canadian softwood lumber producers continue to cite the damaging affects of U.S. duties on competitiveness and jobs, highlighting them as a significant contributor to the COVID-19 related liquidity crises facing softwood lumber producers in spring 2020. Since that time, lumber prices have risen to record levels – temporarily dampening negative impacts of duties on firms.  Industry is keen for the twice-delayed release of AR1 Final Results (expected end of November 2020), which many expect to reduce duty rates.

CONTACT PERSON: Amanda Dacyk (342-543-8005), CFS DATE LAST REVISED: 9/15/2020 APPROVAL ADM: Beth MacNeil, CFS

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STATUS OF THE PULP & PAPER SUBSECTOR

ISSUE

 COVID-19 has accelerated and intensified the irreversible demand decline for newsprint and printing and writing papers (e.g. for use in office/school, flyers), which represents 57% of Canada’s paper capacity. This has left firms in challenging positions as many had planned conversion or transformation of their product lines on a longer timeline with support from the revenues of paper sales in the short-term.

KEY MESSAGES

 The pulp and paper subsector is at the forefront of the transformation of the forest sector towards the bioeconomy, with potential to produce new products such as bioplastics, moulded pulp products, or nanomaterials.  COVID-19 has hit the paper industry hard, bringing demand for printing and writing papers to an all time low.  The survival of the Canadian pulp and paper subsector will depend on its ability to take full advantage of the growing circular bioeconomy by finding innovative ways to allow wood and forest fibre residues to be transformed into high-value bio-products, chemicals and fuels.  The Government of Canada is leveraging existing tools and exploring new options to ensure the long-term viability of the pulp and paper subsector.

BACKGROUND

 The Canadian forest sector is an important economic driver nationwide, providing over 300,000 direct and indirect jobs, including over 11,000 jobs for Indigenous peoples. The forest sector provides income to over 2,300 communities, including many rural and indigenous communities, and 300 of these communities rely on the forest sector.  The Canadian forest sector is composed of three main subsectors (forestry and logging and related support activities; wood products manufacturing; and, pulp and paper manufacturing). The sector utilizes almost 100% of harvested logs. Harvested logs are mostly processed in sawmills first to produce lumber and the residues are then used to manufacture pulp, paper and panels, biofuel, electricity and engineered wood products to name a few. The sector is highly integrated, and changes in one subsector have ripple effects throughout the supply chain (e.g. without sawmilling, pulpmills do not have the feedstock they need).  Canada’s pulp and paper products exports were valued at $17.6 billion in 2019 – more than half of total forest sector exports. Canada is the largest producer and exporter of newsprint and one of the largest exporters of market pulp in the world. Pulp and paper manufacturing has also been at the forefront of the forest sector’s transformation towards the emerging bioeconomy and the circular economy since the majority of novel forest sector bioproducts are derived from

UNCLASSIFIED

pulp, rather than solid wood (bioplastics, biofuel, advanced chemicals, nanomaterials).  The pulp and paper subsector has been under pressure from the growth of digital media to diversify towards other products with better growth potential. To this end, many pulp and paper facilities had started on a long-term transformation of their product lines towards the bioeconomy, counting on revenues of paper sales to finance the conversion process in the short term.  However, COVID-19 caused an immediate and unprecedented demand-side shock for major forest products, and strained liquidity, particularly affecting pulp and paper firms.  Pulp and paper operations continue to struggle (7 out of 17 impacted mills fully or partially resuming production) while the solid wood products subsector has experienced a near full recovery (110 out of 119 impacted facilities resuming production). Only about 40% of pulp and paper jobs have been recovered – as opposed to 85% in solid wood products. o Buoyed by strong housing market, including home renovations and improvements, the wood products manufacturing subsector has recovered with softwood lumber prices exceeding pre COVID-19 levels and the majority mills previously curtailed due to COVID-19 resuming operations. o The COVID-19 crisis, which caused advertising to collapse and demand for newsprint to fall, intensified the decline of the graphic paper segment, with demand permanently reduced by as much as 40% within a few months.  Forest sector stakeholders and industry analysts point to challenges for pulp and paper firms in accessing financing through traditional lenders. This is putting at risk planned upgrades, re-tooling operations, and other investments to pivot to other markets (food package/paper, niche products for medical paper, pulp molded products, bio refinery).  The uneven recovery in the forest sector is also exacerbating regional imbalances. Forest sector jobs in Central and Atlantic Canada are more dependent on pulp and paper production, while British Columbia and Alberta jobs rely more on wood products production. COVID-19 has highlighted vulnerabilities in small, rural, forest-dependent communities, which have few options to diversify their economy outside the forest sector.

KEY CONSIDERATIONS

 The prospects are not looking positive for the pulp and paper subsector in terms of traditional products. Shifting Canadian pulp and paper market trends in supporting the production of higher value bioproducts, biochemicals, and bioenergy is necessary to support long-term competitiveness. In addition, this path to recovery would solidify Canada’s forest sector’s place as a global leader in the sustainable circular bioeconomy and ensure the forest sector remains a key contributor to Canada’s low-carbon inclusive growth.  The recent renewal of Natural Resources Canada’s forest sector competitiveness programs will help catalyze and accelerate innovation in the bioeconomy and contribute to the ongoing transformation of the pulp and paper industries.

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However, in their current state, these programs do not provide the scale of support for the pulp and paper subsector to ensure the necessary transformation.  Some specific programming or policy actions to help the pulp and paper subsector remain a reliable source of jobs for Canadians could include the following: o Facilitate access to liquidity to help viable mills maintain operations in the near term; o Provide project financing through programming to invest in diversification and growing market opportunities; o Support feasibility studies to identify alternative uses of mill infrastructure to help community economic development; and, o Support local and regional stakeholders in developing long-term value from the underutilized fibre resource, including doing more with less (producing higher value products and/or utilizing cheaper accessible biomass such as waste wood) to mitigate supply-chain disruptions when paper mills close.

CONTACT PERSON: Anne-Helene Mathey (613-854-3136), CFS DATE LAST REVISED: 14/09/2020 APPROVAL ADM: Beth MacNeil, CFS

Annex: Overview of the Pulp and Paper subsector

2019 2019 2018 2019 Real GDP Exports Direct Operations Employment $7 billion $17.6 billion More than Share of forest sector GDP 53,000 37% Share of forest sector 80 mills Share of Cdn GDP Exports: 53% Share of forest sector across the country 0.4% Employment: 17%

 Pulp and paper (P&P) manufacturing encompasses a wide variety of forest sector products, including chemical pulp, newsprint, printing and writing papers, packaging, paper towel, and toilet paper.  Most paper mills and companies in Canada are integrated, meaning they produce the wood pulp required to make their own paper products. Market pulp refers to the pulp sold as a commodity to other paper producers and mainly destined for export to China and the United States.  Canada is the largest producer and exporter of newsprint and one of the largest exporters of market pulp in the world.  As the primary consumer of sawmill residuals (e.g. wood chips and sawdust), the pulp and paper subsector is an important source of revenue for sawmills and a key link in the broader forest sector value chain.  Graphic paper segment (e.g. newsprint and printing and writing papers) has long been the cornerstone of Canada’s paper industry. However, it now faces structural demand

UNCLASSIFIED decline due to the proliferation of digital media and changing consumer preferences that will necessitate further closures.

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WILDLAND FIRES

ISSUE

 Wildland fires pose increasing risks to Canadians as a changing climate drives increases in fire size and intensity. Although wildland fire management progress is being made, further actions and investments are needed to reduce risks and build resilience.  The Canadian Council of Forest Ministers (CCFM) has just approved an expanded mandate for the Canadian Interagency Forest Fire Centre (CIFFC) to include fire prevention and risk mitigation. Renewal or expansion of federal action on climate adaptation provide additional opportunities for leadership over the coming year.

KEY MESSAGES

 Wildland fires are an increasing threat to the health and safety of Canadians, creating risks to critical infrastructure, the environment, and to our economy.  Natural Resources Canada invests over $13M annually in wildland fire research and decision-support activities that are helping to protect communities, infrastructure, and forest resources across the country.  Investments made in Budget 2019 emphasize revitalizing and modernizing national wildfire information and decision-support systems, as well collaboration among government agencies, research institutions and Indigenous communities for better management approaches.  Consensus exists between FPT governments on the additional actions needed to reduce risks, with a strong focus on whole-of-government approaches, on-the- ground risk mitigation actions, and expanded response capabilities.  There are opportunities for NRCan to lead at the federal level to further reduce wildland fire disaster risk, working with FPT, Indigenous, and international partners.

BACKGROUND

 Fire management must maintain the natural, ecological, and Indigenous cultural benefits of fire while managing risks to infrastructure, communities, and other values.  The federal government plays an important national leadership role in wildland fire on the FPT stage through the CCFM.  NRCan is the federal lead on wildland fire issues, but is supported by other departments: Public Safety Canada, Parks Canada, Indigenous Services, Global Affairs, National Defence, and others.  The CIFFC is a key institution supporting wildland fire management. CIFFC is a not-for-profit corporation owned and operated by FPT fire agencies to coordinate

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firefighting, mutual aid and other resource sharing. NRCan and Parks Canada are members.  Through NRCan, Canada holds agreements for cooperation and mutual aid on wildland fires with 6 countries (USA, Mexico, New Zealand, Australia, South Africa, Costa Rica) with others in development. Canada has called on most of these countries for assistance in recent years.  NRCan’s Canadian Forest Service operates the Canadian Wildland Fire Information System (CWFIS), which provides daily national information on fire danger, fire activity and fire forecasts.  NRCan wildland fire activities focus on three key areas: provision of science- based information, tools and advice; operational emergency management and decision support; and facilitation of domestic and international partnerships to enhance response capacity.  Budget 2019 provided new investments to wildland fire management, as part of Public Safety Canada’s Emergency Management Strategy. NRCan will receive $88.5M over 5 years, of which $38.5M of targeted funds for wildland fire activities, including risk assessment. This investment has enabled NRCan to nearly double its wildland fire research capacity.

KEY CONSIDERATIONS

 The risk of wildland fire is increasing due a combination of historic land management practices (fire suppression); more people and assets located in forested areas (wildland urban interface); and, climate change.  The average number of large fires has increased from roughly 200 per year in the 1970s to more than 300 today. Over the same period, the annual area burned has increased from 1 million hectares to about 2.5 million hectares. Annual fire fighting costs for Canada’s fire agencies have tripled, to over $1 billion/year. Additional losses attributable to wildland fire are estimated to be around $500 million per year (higher in years with extreme fire events).  There is a recognized need to transform fire management in Canada and around the world. In February 2019, the CCFM endorsed a suite of national priority actions to guide strategic, collective efforts to increase wildland fire resiliency. Investments in science are critical to these efforts. NRCan recently led the development of a Blueprint for Wildland Fire Science to mobilize and align national research activities.  On September 16, 2020, CCFM Ministers endorsed an expanded mandate for CIFFC. This sets the stage for greater progress on fire risk reduction nationally, beginning with development of a national strategy over the coming year.  Some PTs are making significant investments to build resiliency to fire, with the most ambitious steps being taken by British Columbia. Despite these investments, significant commitment and additional investment will be required by all orders of government to meet the growing threat.  Other countries also face a growing fire threat. Both established partners (e.g. USA, Australia) and less developed countries (e.g. Guatemala, Bolivia) continue to approach Canada for assistance. [redacted]

UNCLASSIFIED

 Current fires in western USA are unprecedented in scope and intensity. Quebec and Parks Canada have already contributed firefighting crews to assist, through the long-standing Canada-USA mutual aid agreement and coordinated by CIFFC, and other provinces are considering further deployments.

CONTACT PERSON: Michael Norton (587-338-6327) and Julienne Morissette (825 510-1268), CFS DATE LAST REVISED: 11/09/2020 APPROVAL ADM: Beth MacNeil, CFS

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Annex: Wildland fire evacuations and costs (Annual)

1) Evacuations (1980-2019)

*NOTE: The total number of evacuees for 2020 is 8,473

2) Costs (1976-2017)

Cost of Fire Protection 1976-2017 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Fire Protection Costs ($ in 2017) Fire Protection Costs 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year Source: Natural Resources Canada a

4 FUNDING FOR COVID-19 SAFETY MEASURES IN FOREST SECTOR OPERATIONS

ISSUE

 The implementation of COVID-19 safety measures created significant incremental costs for forest sector small and medium-sized enterprises (SMEs), including for tree planting, which is a key component of legal requirements to regenerate forests after harvest.  In response, NRCan is implementing a program to provide up to $30 million via provinces and territories to help to offset these costs.

KEY MESSAGES

 The Government of Canada is committed to supporting small and medium-sized firms in the forest sector as they manage substantial costs associated with the COVID-19 measures needed to keep workers and communities safe.  We look forward to working with provinces and territories to provide this emergency support to the most vulnerable forest sector businesses, including tree planting operations, to help secure jobs and keep Canada on the path to achieving net-zero greenhouse gas emissions by 2050.

RATIONALE

 With the emergence of the COVID-19 pandemic, forest sector firms faced significant incremental costs associated with the implementation of health and safety measures in facilities and operations necessary to keep workers and local communities safe and comply with provincial/territorial (PT) requirements (e.g. sanitizing stations, additional accommodations and/or transportation, facilities and services to maintain social distancing, personal protective equipment).  PTs and industry have signalled that these costs are threatening the viability of tree planting companies with significant implications for Canada’s tree planting season (600M trees). There are additional longer term risks to Canada’s climate commitments, including plans to plant an incremental 2 billion trees.  On July 10, 2020, Minister O’Regan announced the Government of Canada’s intent to provide up to $30 million to offset costs to forest sector SMEs associated with implementing COVID-19 health and safety measures. [redacted]  On September 10, 2020, Minister O’Regan sent letters including notional allocations (Annex) to his PT counterparts to launch the program.  September 14, 2020 marked the start of official negotiations with PTs to develop the Contribution Agreements needed to flow funds to forest sector SMEs via existing networks with stakeholders. PTs will disburse funds according to a process of their choice and retain the flexibility to narrow focus within the federally-determined scope for eligible costs/recipients. All payments will be made on a retroactive basis (i.e. reimbursement for costs already incurred, subject to documentation).

KEY CONSIDERATIONS

 Overall, this program has been well-received by PTs and is expected to successfully disburse available funds before sunsetting on March 31, 2021.  PT notional allocations are calculated as [redacted] in base funding plus a weighted top-up combining a jurisdiction’s share of forest sector employment [redacted]; and their share of total trees planted [redacted]. Each PT has been provided their individual allocation but not the details of the calculation methodology. o Neither NRCan, nor the PTs will receive funds for program administration. Neither can funds be used by PTs to cover their own COVID-19 related costs.  Funding under this program will flow to forest sector SMEs. Firms not directly included in the forest sector (as defined by Statistics Canada categories), large companies (>500 employees), and other organizations (e.g. Indigenous governments) are not eligible.  The program will enable PTs having already made payments to SMEs for eligible costs to partially reimburse themselves. o Reimbursement will be limited to eligible costs as defined by the program objectives and exclude those expenses eligible to be covered by other sources of federal funding. o Negotiations will emphasize the federal interest in seeing reimbursed funds reinvested in the forest sector, particularly to forest sector stakeholders outside program scope.  Timelines are aggressive to enable support to flow to firms as soon as possible – recognizing the majority of funded activities have already occurred. Contribution agreements are anticipated to be signed by late November 2020, with first payments flowing to PTs as early as late December 2020.  The Minister of Natural Resources could announce the finalization of agreements with PTs, as a key milestone in the delivery of this initiative (late November timeframe).

CONTACT PERSON: Jeff Waring (343-543-7618) and Amanda Dacyk (343-543-8005), CFS DATE LAST REVISED: 10/09/2020 APPROVAL ADM: Beth MacNeil, CFS

[redacted] CRITICAL MINERALS

ISSUE

With critical mineral resources in every province and territory, Canada has an opportunity to leverage its long history and expertise in the mining sector, strong regulatory system and attractive investment environment, to position itself as a global supplier of choice for critical minerals.

BACKGROUND

Critical minerals are essential inputs for renewable energy and clean technology applications – such as advanced batteries, permanent magnets, solar panels and wind turbines – as well as advanced manufacturing supply chains, including defense and security technologies, consumer electronics, and critical infrastructure. Global demand for critical minerals is expected to significantly increase over the coming decades given their role in the transition to a low-carbon economy. Over 120 countries have committed to achieving net-zero emissions by 2050, which will place considerable demands on electricity generation and renewable energy technologies.

The accelerated deployment of renewable energy and clean technologies will be materially intensive, with real implications for mineral and metal markets globally. The International Energy Agency forecasts that production of electric vehicles could grow from 2 million units in 2018 to 43 million units per year by 2030 – with a global production value at more than $567 billion (USD) annually. In addition, the World Bank estimates that to limit global warming to 2-degrees Celsius, global production of critical minerals like graphite, lithium, and cobalt will need to increase by more than 450% from 2018 levels by 2050 to meet increased demand from energy storage technologies. Greater production of these and other critical minerals is needed in more ambitious climate change scenarios.

The COVID-19 pandemic has further highlighted the extent to which many of our most important global supply chains lack diversification, with key operations located in only a handful of regions globally, leaving them exposed to economic disruptions and predatory actions by non-market economies and other geopolitical risks.

Concerns around access to critical mineral supply have prompted many economies to develop strategies and make investments to secure reliable and sustainable supplies of critical minerals. The United States, European Union, and Japan have all deemed minerals and metals critical due to their exposure to geopolitical risk, access dependency, scarcity of supply, and inadequate investment in future production. These economies are looking to Canada as a secure, responsible and sustainable supplier of the critical minerals needed to support the energy transition and advanced manufacturing supply chains.

There is no global definition of critical minerals and metals; what makes a mineral “critical” depends very much on context, with each country or industry conducting their own assessment. In the Canadian context, criticality is informed by Canada’s competitive 1 ability to be a supplier of choice; what are integral to Canada’s economic and national security; what are identified as critical by our allies; and, what are needed to transition to a low-carbon economy. These considerations capture the minerals and metals needed for advanced batteries, EVs and other products needed to support electrification. Rare Earth Elements, a subset of critical minerals, are a convenient example of the importance of critical minerals: they are a small but vital economic element given their use in permanent magnets used in a range of technologies and their supply has significant geopolitical risks – China controls 80 percent of production.

Canada is uniquely positioned to take advantage of the global context. We are a world mining giant producing over 60 minerals and metals, with world renowned environmental, social and governance credentials and clean mining practices. Canada represents the most secure and resilient source of minerals and metals imports to the U.S. and is currently an important supplier of 13 of the 35 minerals deemed critical by the U.S., with the potential to supply many more. With a renewed U.S. focus on securing supplies of critical minerals through increased domestic production, as well as trade and cooperation with allies, Canada could benefit from potential investments in an integrated Canada-U.S. critical mineral value chain.

CANADA’S VISION FOR CRITICAL MINERALS

A Canadian Critical Minerals Strategy will help guide the future of Canada’s critical minerals sector towards high economic growth opportunities linked to downstream renewable energy and clean technology industries. This includes strengthening domestic critical mineral value chains in strategic sectors, such as advanced batteries, and helping Canadian firms secure a foothold in global markets; and, positioning Canada as a supplier of choice for those minerals and metals deemed critical by its trading partners, including the U.S., EU, Japan and other open economies.

The Strategy will target activities and foundational investment in four areas:  Establish a Canadian Critical Minerals List  Strengthen Canada's financial and programming toolbox for critical minerals  Foster innovation in critical mineral supply chains in strategic sectors  Solidify Canada’s position with allies to secure global critical mineral supply chains production.

The Canadian Critical Minerals Strategy directly supports commitments made in the 2019 Speech from the Throne to achieve net-zero emissions by 2050 and work with likeminded countries to leverage Canada’s expertise in the global fight against climate change. It also supports the Minister of Natural Resources Canada’s Mandate Letter commitment to work with other federal partners to position Canada as a global leader in clean technology, including critical minerals.

The Canadian Critical Minerals Strategy directly supports implementation of the Canada-U.S. Joint Action Plan on Critical Minerals Collaboration.

 On January 9, 2020, Canada and the U.S. announced they had finalized the Canada-U.S. Joint Action

 Plan on Critical Minerals Collaboration, advancing our mutual interest in securing supply chains for the critical minerals. This announcement delivers on the June 2019 commitment by the Prime Minister of Canada and the President of the United States.  The Action Plan will guide cooperation in areas such as industry engagement, securing critical mineral supply chains for strategic industries and defence, improving information sharing on mineral resources and potential, and efforts in multilateral fora. Experts from both countries are now working together to develop and advance joint initiatives to address shared mineral security concerns.  Canada views the Joint Action Plan as a means to strengthen Canada-U.S. relations, to position Canada as the U.S.’ foremost security partner, and to promote increased investment [redacted]. The U.S. Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals, is heavily influenced [redacted].  The U.S. represents a leading source of investment potential for Canadian critical mineral supply chains given their market size, proximity, and integration with the Canadian economy. They are Canada’s top partner for mining sector trade and investment, and the leading destination for Canadian mining assets abroad. In 2017, 286 Canadian mining companies held assets in the U.S. valued at U.S. $24.8 billion.

The Strategy will also help position Canada with other key international allies o Japan: The state-owned, Oil Gas and Metals National Corporation (JOGMEC) was an early and significant investor in the only major producer of rare earth elements outside China - Australia’s Lynas Corporation. In June 2020, JOGMEC’s mandate was expanded to allow for a more aggressive approach to controlling critical mineral supply chains, including through direct investments in smelting operations and foreign projects. As Japan looks to diversify its critical mineral and metal supply chain Natural Resources Canada is engaging with Japan’s Ministry of Economics, Trade and Industry on critical minerals in the context of the Canada-Japan Energy Policy Dialogue. [redacted] o EU: The EU is also looking to leverage the Comprehensive Economic and Trade Agreement (CETA) with Canada to secure its access to critical minerals, specifically through the CETA Raw Materials Dialogue. On September 3, 2020, the European Commission announced the Action Plan on Critical Raw Materials, the 2020 List of Critical Raw Materials, and a foresight study on critical raw materials for strategic technologies and sectors from the 2030 and 2050 perspective. The Action Plan looks to develop resilient supply chains; support innovation and circularity; strengthen domestic sourcing and processing of raw materials in the E.U.; and diversify supply with strategic international partners, including Canada. o Australia: Australia released its own Critical Minerals Strategy outlining the government’s policy framework for the critical minerals market and a Critical Minerals Prospectus. In November 2019, Matt Canavan, Australia’s Minister for Resources and Northern Australia met with U.S. Commerce Secretary Wilbur Ross to lay the groundwork for critical minerals collaboration.

3 o South Korea: The South Korean Government is considering its own approach to secure supply chains for critical minerals that are essential for high-technology and renewable energy technology. Specifically, the Korea Resource Corporation (KORES), a state-owned mineral and metal investment corporation, has inquired about Canadian rare earth elements and associated strategies.

The Strategy is a signature initiative under the Canadian Minerals and Metals Plan (CMMP), which was launched on March 3, 2019, by federal, provincial and territorial mines ministers, along with industry and Indigenous business representatives, to address challenges and seize opportunities in the global minerals sector. Provincial and Territorial Mines Ministers endorsed the CMMP (released in March 2019) with the exception of the Mines Ministers of Ontario and Saskatchewan, citing competitiveness concerns related to Bill C-69 and federal carbon pricing. o Federal, provincial and territorial (FPT) collaboration is essential to advance the critical mineral file, particularly given provincial and territorial jurisdiction for minerals and metals in Canada. A coherent, strategic approach between FPT activities on critical minerals is essential to seize opportunities. To realize this vision, the Government will need to work with provinces and territories across a range of initiatives including, innovation, R&D, technology demonstrations, market development and public geoscience. We want to capture critical minerals from Canada’s producing mines and explore how best to retrieve critical minerals from mine waste to ensure the most efficient use of our resources. We want to move mining projects forward, and build strategic industries downstream to drive demand. o Ministerial discussions at the Energy and Mines Ministers’ Conference (EMMC) will be proposed to advance dialogue on FPT cooperation on critical minerals in Whitehorse, Yukon, from September 26 to 28, 2020.

NEXT STEPS

[redacted]

CANADIAN MINERALS AND METALS PLAN

ISSUE

The Canadian Minerals and Metals Plan (CMMP) aims to secure Canada’s competitive position as a global mining leader and lay the foundation for a future looking minerals and metals industry that capitalizes on the opportunities offered by an evolving economy.

BACKGROUND

In March 2019, Canada’s federal, provincial-territorial (FPT) Mines Ministers released the CMMP at the Prospectors and Developers Assocation of Canada (PDAC). This pan- Canadian Plan aims to enhance industry competitiveness, respond to opportunities in a clean, digitalized global economy, and establish Canada as the leading mining nation. Significant engagement was held with Indigenous Peoples, industry associations, innovation experts, private companies, NGOs, youth and others.

The development and implemention of the CMMP is a collaborative initiative under the Energy and Mines Ministers’ Conference (EMMC). A CMMP Secretariat was established in the Lands and Minerals Sector to spearhead work under the CMMP and to serve as a focal point for developing actions to improve the competiveness of Canada’s minerals sector. This includes working with other federal departments through the CMMP Federal Liaison Group.

While the CMMP was developed in collaboration with officials from all provinces and territories, Ministers from Ontario and Saskatchewan withheld their endorsement just prior to its release, citing concerns related to competitiveness and Bill C-69.

Stakeholders have publicly supported the CMMP, including the Mining Association of Canada, the PDAC, the Mining Association of Saskatchewan, Indigenous mining and business organizations and others. The CMMP has also been downloaded in more than 100 countries, demonstrating global interest in Canada’s vision for mining.

The CMMP focuses on six strategic directions, organized by thematic priorities for supporting a competitive, sustainable and responsible minerals and metals industry: 1. Economic Development and Competitiveness; 2. Advancing the Participation of Indigenous Peoples; 3. the Environment; 4. Science, Technology and Innovation; 5. Communities; and, 6. Global Leadership. It also includes areas for action and targets for achieveing tangible results. A series of Action Plans are being released to operationalize the CMMP, keep the initiative

1 evergreen, respond to new challenges, and capitalize on longer-term opportunities in the industry.

KEY CONSIDERATIONS

The CMMP serves as the framework for delivering initiatives to improve industry competitiveness and transform the sector by developing “mines of the future” in Canada. For example, while not included in the initial document, federal initiatives and NRCan priorities such as establishing Canada as a safe and secure supplier of critical minerals and strengthening value chains for products such as batteries for electric vehicles and stationary storage are being captured under the CMMP.

Ministerial endorsement and launch of Action Plan 2020

In March 2020, Canada’s Mines Ministers released a preliminary of Action Plan 2020 that introduced six pan-Canadian initiatives—one under each of the Strategic Directions: 1. A pan-Canadian Geoscience Strategy (Economic Development and Competitiveness) 2. Conferences to increase Indigenous local procurement in mining (Advancing the Participation of Indigenous Peoples) 3. A Re-imagined National Orphaned or Abandoned Mines Initiative (The Environment) 4. Innovation challenges (Science, Technology and Innovation) 5. Improving mineral literacy (Communities) 6. A Canada Brand for Mining (Global Leadership)

In recognition that Ministers were not able to hold an endorsement call prior to PDAC, a Preliminary Version was published to honour commitments established in the CMMP and EMMC 2019. To ensure that a full, comprehensive Action Plan 2020 is launched, Mines Ministers committed to providing an Update at this year’s EMMC, which was originally planned for July 2020. Shortly after Action Plan 2020 was released, the significant effects of the COVID-19 pandemic began being felt by Canadians and industry. Therefore, the approach to update document was adjusted to also account for COVID-19 impacts, and reaffirm that the CMMP is the preferred policy framework to establish initiatives for governments and industry to drive economic recovery. This is in addition to providing updates on the pan- Canadian initiatives introduced in Action Plan 2020.

NEXT STEPS

[redacted]

Energy and Mines Ministers Conference – NRCan officials continue to work with their PT counterparts to finalize the Action Plan 2020 Update document and deliverables

2 associated with the pan-Canadian initiatives for Ministerial consideration at EMMC. Pending the outcome of Ministerial deliberations at EMMC, September 25,-28, 2020, FPT officials could also be directed to pursue new inititives for inclusion in subsequent Action Plans (i.e., 2021, 2022 and every three years thereafter) —such as collaborating on critical minerals [redacted].

Engagement with Ontario and Saskatechewan – [redacted] there has been mutual interest on issues such as the Pan-Canadian Geoscience Strategy, small modular reactors (along with Alberta and New Brunswick) and critical minerals. Further, initiatives that Ontario and Saskatchewan have undertaken in support of their respective industries will be included in the Update document. NRCan will continue to extend every opportunity to these jurisidctions to collaborate on these and other areas under the CMMP.

BATTERY INITIATIVE

ISSUE

NRCan is working closely with ISED to position Canada as a global hub for battery production by advancing a full value chain approach, from mines to mobility.

BACKGROUND

In the coming years, demand for batteries is projected to exceed supply both in North America and globally, based in part on current supply projections for key minerals such as lithium, cobalt, and nickel. The World Bank Group reports that the production of minerals, such as graphite, lithium and cobalt, could increase by nearly 500% by 2050, to meet the growing demand for clean energy technologies. The International Energy Agency forecasts that electric vehicles could reach 43 million units per year by 2030, up from 2 million in 2018, with production valued at more than US$567 billion annually. By 2040, the international market for energy storage will attract US$622 billion in investments. The lithium ion battery is at the heart of this process.

Leading battery and automotive manufacturers are moving quickly to establish production hubs at the center of the battery storage value chain. Some companies are also looking at vertical integration to regionalize their supply chains to build resiliency; the importance of which has been underscored by the COVID-19 pandemic. Jurisdictions that can quickly position their competitive advantages will be best placed to attract an outsized share of these investments, and Canada has every opportunity to be one of those jurisdictions.

Canada enjoys a number of key advantages and opportunities when it comes to attracting investment in the battery value chain: mineral wealth for all battery mineral resources; a strong knowledge base and battery research community; skilled and highly qualified workforce; strong manufacturing base and world-class automotive industry well-integrated with the American market; and abundant renewable and affordable energy. However, Canada is competing with governments around the globe (e.g. Germany, Finland, United States) to attract investment; governments that are investing billions of dollars to mine and process battery minerals, attract battery manufacturers, and build electric vehicle assembly plants.

NRCan has taken several steps to identify Canada’s competitive advantages, and best path forward to support a globally competitive battery value chain, including extensive stakeholder engagement, supporting R&D, and attracting foreign direct investments for achors segments of the battery value chain.

Battery Consultation Workshops

To explore ways to support the development of Canadian battery value chains, NRCan, in partnership with ISED, launched a series of six engagement sessions in June 2019 with over 300 stakeholders related to battery recycling and the circular economy, battery manufacturing, energy storage adoption, and financing and de-risking for mining and processing. Actions suggested by participants include:

1. Leveraging Canada’s minerals and metals to foster a domestic industry; 2. Attracting a leading battery manufacturer to invest in Canada; 3. Attracting mandates for production of electrified vehicles; 4. Establishing Canada as a global leader in stationary storage; and 5. Becoming a global leader in battery technologies of the future and recycling.

These discussions culminated in a What We Heard Report that aims to guide governments and industry as they work together to build the future of the Canadian battery industry.

Impact Canada: Charging the Future Challenge

In Summer 2019, NRCan launched the Impact Canada Charging the Future Challenge, which aims to accelerate battery innovations that have the potential to substantially reduce greenhouse gas emissions. The goal of the Challenge is to accelerate the most promising made-in-Canada innovation of battery technologies from the laboratory towards the marketplace. From July to October 2019, the Challenge was open to registered Canadian for-profit and not-for-profit organizations, such as companies, industry associations and research centres; indigenous organizations and groups; and Canadian post-secondary institutions.

On July 21, 2020, five finalists were announced and are receiving up to $700,000 to complete their prototype development. Following prototype development, finalists will be able to showcase their technologies at a pitch event, following which a grand prize winner will be selected to receive $1,000,000 to scale up their solution towards commercial readiness. It is anticipated that the final grand prize-winner will be announced in Winter 2022.

Battery Supply Chain Study

An in-depth study of Canada’s battery manufacturing capabilities is currently underway and set to conclude by winter 2020. A jointly-submitted proposal made by Canadian firms Tahuti Global International, Kelleher Environmental, and NOK Associates will identify and assess how to leverage the dynamics, opportunities, and challenges within identified segments of the battery supply chain to increase Canada’s competitiveness in battery material and component manufacturing. The study will conclude in January 2021.

Attracting Foreign Direct Investment

[redacted]

RD&D and Program Funding

The Office of Energy Research and Development through its R&D programs (i.e., CanmetENERGY, CanmetMATERIALS, and CanmetMINING labs) are conducting RD&D in battery metal extraction and processing, battery technology development, materials development, recycling, energy storage and zero-emission vehicle research. In addition, NRCan delivers program funding on ZEV technologies and infrastructure.

Global Battery Alliance

In July 2020, Canada agreed to become a member of the Global Battery Alliance (GBA), a public-private partnership of over 70 businesses, governmental and non- governmental organizations hosted by the World Economic Forum that is establishing a digital platform to exchange data among all battery stakeholders. The GBA aims to create a sustainable and traceable value chain for electric vehicles and stationary batteries by 2030. Of note, to advance the work of the GBA, NRCan is partnering with the Québec government, Nouveau Monde Graphite and OPTEL to undertake a pilot project testing technology to trace minerals throughout value chains, from the mine to the end product (battery and EVs). If successful, this traceability technology could apply to mines around the world, providing a competitive edge to Canada’s responsibly produced minerals, and enhance both Canada’s value proposition for investment attraction.

NEXT STEPS

[redacted]

TRANS MOUNTAIN EXPANSION PROJECT

ISSUE

While the TMX project is progressing well overall, Trans Mountain Corporation (TMC) is contemplating a significant variance to the approved route to address concerns of Coldwater Indian Band regarding its on-reserve aquifer. Such a variance would require a CER-led regulatory process and additional Indigenous consultations, [redacted].

BACKGROUND

Overall  TMX will twin an existing 1,147 kilometre oil pipeline that was built in 1953, which runs from Edmonton, AB to the Westridge Marine Terminal and the Chevron refinery in Burnaby, BC.

 In 2018, Canada purchased the Trans Mountain Pipeline and associated assets, and the Federal Court of Appeal (FCA) quashed the Governor in Council (GIC)’s 2016 decision to approve the Project, In June 2019, the GIC approved the Project for a second time, determining that it is in the public interest and that the Duty to Consult with Indigenous peoples had been met.

 In February 2020, the FCA upheld the GIC’s decision to re-approve the Project and in July 2020, the Supreme Court of Canada dismissed applications to appeal the FCA’s decision.

 Construction activities are well underway across AB and BC. As of September 4, 2020, approximately 64 km of new pipeline has been installed and more than 5,000 workers have been hired. COVID-19 safety measures have been thoroughly integrated and implemented. The planned in-service date for the Project is December 31, 2022.

 Engagement with impacted Indigenous groups continues to be strong. NRCan plays a critical role in this respect, including: coordinating engagement across the federal family through the Phase IV Partnership Office; co-chairing and supporting the Indigenous Advisory and Monitoring Committee for the project; coordinating implementation of accommodation measures and permitting; and chairing the TMX DM Oversight Committee.

West Alternative Route  Coldwater Indian Band has been a vocal opponent of the Project, mainly citing concerns over potential impacts to the aquifer that underlies the Coldwater reserve and is their sole source of drinking water. [redacted]

 This section of the Approved Route is approximately 15 km long, and the West Alternative Route, if approved, would be approximately 18 km.

 Under Section 190 of the Canada Energy Regulator Act, TMC must apply to the Canada Energy Regulator (CER) to vary its federal certificate to include any significant change in route.

 The route variance [redacted] would require a regulatory review process by the CER, including Indigenous consultations, for which the CER would be the Crown consultation lead.

 [redacted]

CONSIDERATIONS

West Alternative Route Process  [redacted]

 While the Commission of the CER does have the authority to vary a federal certificate, the Minister of Natural Resources may direct the Commission to make a recommendation to the GIC to issue a decision, if it is in the public interest to do so.

 The routing change would also require additional provincial approvals in order to move ahead, including approval from the BC Environmental Assessment Office (BC EAO) to vary the provincial environmental assessment certificate, provincial permits, and compliance with all relevant federal and provincial conditions.

[redacted]

NEXT STEPS

 TMC is expected to submit a route variance application to the CER imminently. [redacted]

 You may wish to hold an introductory call with Ian Anderson, President & CEO of TMC, at the earliest convenience to build the relationship, and to receive an update on progress, including the proposed West Alternative Route.

 NRCan will continue to work collaboratively with the CER and the BCEAO to support their processes, wherever possible.

LEGISLATION TO IMPLEMENT THE UNITED NATIONS DECLARATION ON THE RIGHTS OF INDIGENOUS PEOPLES (‘THE DECLARATION’)

SUMMARY

 The Government remains committed to introducing legislation to implement the UN Declaration by the end of 2020. NRCan is supporting Justice Canada and Crown Indigenous Relations and Northern Affairs (CIRNA) by leading engagement with natural resource industry stakeholders.  Following discussions with the National Indigenous Organizations (NIOs), Justice has decided to proceed with a 6-week public engagement timeframe with Indigenous rights holders, provinces and territories, and industry. The start date of public engagement has yet to be confirmed. It is expected that Industry sessions will take place between Oct 5-12, 2020.  NRCan’s industry engagement approach has been adjusted accordingly, which will now consist of four sector-specific engagement sessions, as was previously planned, but with no additional bilateral meetings offered to stakeholders. Justice will also accept comments in writing via the UN Declaration website. NIOs will also be invited to attend, following an earlier request from the Métis National Council to participate in NRCan’s engagement sessions.  NRCan has identified nearly 200 stakeholders from the minerals and metals, forest, clean energy, and petroleum sectors to engage. NRCan will invite them to their respective sector-specific engagement session, which will be held for 2 hours each and virtually over Zoom. NRCan will draft a summary of each engagement session and written submissions from our stakeholders to be included in a ‘What We Heard’ Report.  On September 3 and 4, NRCan was invited to attend Justice and CIRNA’s bilateral meetings with the NIOs to present NRCan’s proposed engagement approach and to discuss key messages on the principle of free, prior and informed consent (FPIC). Based on these discussions, engagement materials (i.e. presentation and leave- behind placemat) have been edited to respond to NIO comments. Revised materials will be shared with the NIOs as well as NRCan’s list of stakeholders.  NRCan has had preliminary discussions with the Mining Association of Canada, the Canadian Association of Petroleum Producers, and other industry stakeholders on the topic of UN Declaration legislation. Industry has stressed the importance of clearly defining FPIC and clearly articulating the intent of the proposed legislation prior to its implementation, as to not create a climate of uncertainty for industry and investors.

BOTTOM LINE FOR NRCAN

 NRCan is prepared to initiate industry engagement once public engagement has officially commenced. NRCan will continue to work with Justice and CIRNA to prepare industry engagement materials and ensure alignment of messaging, especially on FPIC.  Industry want to be included in how the proposed UN Declaration legislation proceeds and are looking to Government to address several questions on how the Declaration and FPIC will be implemented in the context of natural resource development.  While bilateral meetings are no longer part of NRCan’s engagement approach, it is anticipated that industry leaders will continue to seek meetings with senior government officials and Ministers.

Key Contacts and Stakeholders DM Key Contacts Last Name First Name Organization Position Phone Number Email Portfolio Organizations Sexton Richard Atomic Energy Canada Limited (AECL) CEO 613-589-2089 x10212 [email protected] Velshi Rumina Canadian Nuclear Safety Commission (CNSC) CEO 613-992-8828 [email protected] Canada-Newfoundland and Labrador Tessier Scott CEO 709-778-1456 [email protected] Offshore Petroleum Board (C-NLOPB) Canada-Nova Scotia Offshore Petroleum Bonnell-Eisnor Christine Acting CEO 902-440-4765 [email protected] Board (CNSOPB) De Silva Gitane Canada Energy Regulator (CER) CEO 403-299-2724 [email protected] Doyle Cassie Canada Energy Regulator (CER) Chair Person [redacted] [email protected] Marshall Wayne Northern Pipeline Agency Director, Operations 403-299-3901 [email protected] Provincial and Territorial Ministries Ministry of Energy, Mines and Petroleum Mihlar Fazil Resources, Government of BC Deputy Minister 250-952-0504 [email protected] Ministry of Forests, Lands, Natural Resources Operations and Rural Development, Allan John Government of BC Deputy Minister 250-952-6500 [email protected] Sprague Grant Ministry of Energy, Government of Alberta Deputy Minister 780-415-8343 [email protected] Ministry of Agriculture and Forestry, Tremblay Andre Government of Alberta Deputy Minister 780-427-2145 [email protected] Ministry of Energy and Resources, MacKnight Doug Government of Saskatchewan Acting Deputy Minister 306-787-9580 [email protected] Ministry of Environment, Government of Harrison Sarah Saskatchewan Deputy Minister 306-787-2930 [email protected] Conservation and Climate, Government of McTavish Blair Manitoba Acting Deputy Minister 204-945-3785 [email protected] Gingera- Agriculture and Resource Development, Beauchemin Dori Government of Manitoba Deputy Minister 204-945-3734 [email protected] Crown Services (Responsible for Manitoba Richards Michael Hydro), Government of Manitoba Deputy Minister 204-945-2536 [email protected] Ministry of Energy, Northern Development Rhodes Stephen and Mines, Government of Ontario Deputy Minister of Energy 416-327-6734 [email protected] Rolf Von Den Ministry of Natural Resources and Forestry, Baumen-Clark Monique Government of Ontario Deputy Minister 416-314-2150 [email protected] Ministère de l’Énergie et des Ressources Lizotte Marie-Josee naturelles, Government of Quebec Sous-ministre 418-627-6370 [email protected] Ministère des Forêts, de la Faune et des Gosselin Mario Parcs, Government of Quebec Sous-ministre 418-627-6370 [email protected]

Department of Energy and Resource Development (Agriculture, Aquaculture and MacFarlane Thomas Fisheries), Government of New Brunswick Deputy Minister 506-453-2501 [email protected] Department of Energy and Mines, d'Entremont Simon Government of Nova Scotia Deputy Minister 902-424-1710 [email protected] Department of Lands and Forestry, Towers Julie Government of Nova Scotia Deputy Minister 902-424-4121 [email protected] Transportation, Infrastructure and Energy, Chaisson Darren Government of PEI Deputy Minister 902-368-5130 [email protected] Environment, Water and Climate Change Colwill Brad (Forestry), Government of PEI Deputy Minister 902-368-5524 [email protected] Prince Edward Island Energy Corporation, Horrelt Kim Government of PEI Chief Executive 902-894-0289 [email protected] Department of Natural Resources, Lomond Ted Government of NL Deputy Minister 709-729-2766 [email protected] Major Projects and Initiatives Unit, Executive Bown Caharles Council, Government of NL Chief Executive 709-729-2844 Fisheries and Land Resources, Government King Tracy of NL Deputy Minister 709-729-3707 [email protected] Department of Energy, Mines, and Moore Paul Resources, Government of Yukon Deputy Minister 867-667-5417 [email protected] Department of Industry, Tourism and Strand Pamela Investment, Government of NT Deputy Minister 867-767-9060 ext. [email protected] Department of Environment and Natural Kelly Erin Resources, Government of NT Deputy Minister 867-767-9055 ext [email protected] Department of Environment, Government of Noble Jr Jimmy Nunavut Deputy Minister 867-975-7705 [email protected] Department of Economic Development and Transportation (Responsible for Mines), MacIsaac Bernie Government of Nunavut Deputy Minister 867-975-7829 [email protected] Department of Environment, Government of Noble Jr Jimmy Nunavut Deputy Minister 867-975-7705 [email protected] Government Nemer Mona Office of the Chief Science Advisor Chief of Science Advisor 343-291-0459 [email protected] Stewart Iain National Research Council President [email protected] [email protected] Arora Anil Statistics Canada Chief Statistician 613-951-9757

Matthews Bill Public Services and Procurement Canada Deputy Minister 819-420-1770 [email protected] Energy Hartwick Ken Ontario Power Generation (OPG) President and CEO [email protected] Cronkhite Keith NB Power President and CEO [email protected] Marsh Mike SaskPower President and CEO Indigenous Organizations Ciavaglia Janice Assembly of First Nations CEO [email protected] Bellegarde Perry Assembly of First Nations National Chief Young Brad National Aboriginal Forestry Association Executive Director [email protected] Senior Director of the Energy, (O) 204 586 8474 ext Infrastructure and Resource Riel Marci Manitoba Metis Federation 303 [email protected] Management department; (C) 204 619 1228 Indigenous co-chair, L3 IAMC Contact EA- Kathleen Ford Elizabeth Inuit Tapiriit Kanatami Executive Director Tagoona: 613-238- 8181 x 224 [redacted] Henderson Christine Indigenous Clean Energy Enterprise President & Executive Director [email protected] Lonechild Guy First Nations Power Authority CEO [redacted] Edwards Niilo First Nations Major Projects Coalition Executive Director [email protected] Swampy Dale National Coalition of Chiefs President [redacted] Matthews Hans Canadian Aboriginal Minerals Association CEO [email protected] Watteyne Wenda Metis National Council (MNC) Executive Director [redacted] Chief Councillor Smith First Nations LNG Alliance Chair Crystal [redacted] [redacted] Ogen-Toews Karen First Nations LNG Alliance CEO [redacted] Spahan Lee Coldwater Indian Band Chief [redacted] [email protected] McLeod Harvey Upper Nicola Band Chief [redacted] [email protected] Manitoba Metis Federation (MMF) and Métis Chartrand David President and Spokeperson National Council [redacted] [redacted] Chair and Chief Executive Ningaqsiq Smith Duane Inuvialuit Regional Corporation Officer Contact is made through EA - Kathleen Tagoona: 613-238- Obed Natan Inuit Tapiriit Kanatami President 8181 x 224 (if emailing CC Executive Director Elizabeth Ford) [redacted] Wilsdon Michelle Enoch Cree Nation IAMC-TMX interim Co-Chair (780) 270-8950 [email protected] George-Wilson Leah Tsleil-Waututh Nation Chief 604-929-3454 [redacted] Lewis Chris Squamish First Nation Councillor and Spokesperson [email protected] First Nations Major Projects Coalition Gale Chief Sharleen Chair (250) 500-1383 [email protected] (FNMPC) Campbell Ian Squamish First Nation Hereditary Chief 604-980-4553 [email protected] Ignace Kukpi7 / Ron Stk’emlupsemc te Secwepemc Nation (SSN) Chief 250-373-2493 [email protected]

Casimir Kukpi7 / Rosanne Stk’emlupsemc te Secwepemc Nation (SSN) Chief 250-828-9700 [email protected] Jimmie David Stó:lō Nation Chiefs Council Chief 604-858-3366 [redacted] Young Bradley National Aboriginal Forestry Association Executive Director [redacted] [email protected] Kelly Grand Chief Doug Stó:lō Tribal Council Grand Chief (604) 796-0627; [redacted] Kelly Doug Stó:lō Tribal Council Grand Chief 604-858-4631 [redacted] Marten Roger Cold Lake First Nation Chief Meadow Lake Tribal Council (MLTC) Tribal Ben Richard Tribal Chief 306-236-5654 Chief Energy and Infrastructure - Manitoba Metis Park Jack Minister Federation Greenland-Morgan Bobbie Jo Gwich’in Council Grand Chief Natanine Jerry Clyde River, NU Mayor Sainnawap Amanda Pikangikum First Nation Chief 807-773-5578 Industry Clean Technology Niven Robert CarbonCure Technologies CEO and Founder [redacted] [redacted] Vice-President; Clean Tech Hamberg Karen Westport Fuels Systems Inc Sector representative on the Industry Strategy Council [redacted] Myrans Iain Tesla National Senior Manager [email protected] Oldham Steve Carbon Engineering CEO Verschuren Annette NRStor Inc. Chair and CEO 647-567-1248 [redacted] Pfeffer Dan Renewable Industries Canada Principal [redacted] Thomson Ian Advanced Biofuels Canada President [email protected] Brisson Genvieve Enerkem Senior Director [email protected] Field Kenneth Greenfield Global Chairman & Founder [redacted] Bédard Marc The Lion Electric Co. President [email protected] Archambault Michel Hydrogenics Director [redacted] McCewan Randy Ballard Power Systems President & CEO [redacted] Vice Chair of the Canada CanadaCleantech Alliance and Écotech Cleantech Alliance, and Leclerc Denis 514-914-1405 [email protected] Québec President and CEO of Écotech Québec Vice Chair of the Canada CanadaCleantech Alliance and Foresight Cleantech Alliance and CEO of Jackson Jeanette 604-216-1194 [email protected] Cleantech Accelerator Centre Foresight Cleantech Accelerator Centre Sustainable Development Technology Leah 613-234-6313 Lawrence Canada President and CEO [redacted] Innovation Asset Collective (Cleantech Hinton Jim Owner & Founder [email protected] Patent Collective) Tremblay Louis AddÉnergie Technologies Inc. President CEO [redacted] Electricity Rencheck Michael Bruce Power President and CEO [redacted] Mining Gitzel Tim Cameco CEO [redacted] [redacted] Lindsay Donald R. Teck Resources Limited President and CEO [redacted] [redacted] Malan Todd Rio Tinto Alcan Vice-President, North America [redacted] Coutts Alan Noront Resources Inc. (Ring of Fire) President and CEO 416-367-1444 [email protected] Oil and Gas Monaco Al Enbridge CEO [redacted] Suttles Doug Ovintiv President and CEO [redacted] [redacted] Cassulo Frank Chevron Canada President [redacted] [redacted] Coleman Peter Woodside Energy CEO [redacted] Zebedee Peter LNG Canada CEO [redacted] [redacted] Girling Russ TC Energy CEO [redacted] [redacted] Sorensen Alfred Pieridae Energy CEO [redacted] [redacted] Keane David Woodfibre LNG President and CEO [redacted] Little Mark Suncor President and CEO [redacted] [redacted] Laut Steve Canadian Natural Resources Limited Executive Vice Chair [redacted] [redacted] Anderson Ian Trans Mountain Corporation (TMC) President and CEO [redacted] Crothers Michael Shell Canada President [redacted] [redacted] Crawford Randy Alta Gas Canada President and CEO Edgington Tyler Dow Chemicals Canada President and CEO [redacted] Larden Peter ExxonMobil Canada President [redacted] [redacted] Fjaer Unni Equinor VP Operations [redacted] Tertzakian Peter ARC Financial Group Deputy Director (403) 292-0809 [email protected] Vice President, North American Birn Kevin IHSMarkit Crude Oil Markets [redacted] [redacted] Managing Director, Energy, Johnston Robert J. ("RJ") Eurasia Group Climate & Resources [redacted] [redacted] Forestry Sector Legere Mike ForestNB Executive Director 506-452-6930 [email protected] Bishop Jeff Forest Nova Scotia Executive Director 902-895-1179 [email protected] Newfoundland and Labrador Forest Industry Dawson Bill Executive Director 709-640-2485 [email protected] Association Laflamme Yves Resolute Forest Products President and CEO 514-875-2160 [redacted] Kruger II Joseph Kruger Chairman & CEO 514-737-1131 [redacted] Irving Jim JD Irving Ltd. Co-CEO [redacted] [redacted] Egdson Kevin EACOM President and CEO 514-848-6815 [email protected] Kayne Don Canfor CEO 604-661-5241 [email protected] Ferris Raymond West Fraser President and CEO 604-895-2700 [redacted] Thorlakson Brad Tolko President and CEO 250-545-4411 [email protected] Connors Kim Canadian Interagency Forest Fire Centre Executive Director 204-250-1990 [email protected] Nuclear Energy Gorman John Canadian Nuclear Association (CNA) President and CEO 613-237-4262 [email protected] Smith Stephanie CANDU Owners Group President and CEO [redacted] Nuclear Waste Management Organization Swamie Laurie President and CEO (NWMO) [redacted] Organization of Canadian Nuclear Industries Oberth Ron President and CEO 905-839-0073 [email protected] (OCNI) Associations Electric Vehicles

Kingston Brian Canadian Vehicle Manufacturers' Association President and CEO [redacted] Breton Daniel Electric Mobility Canada President and CEO 514-883-9274 [email protected] Leclerc Patrick Canadian Urban Transit Association President and CEO [redacted] Adams David Global Automakers of Canada President and CEO 416-595-8251 [email protected] Energy

Bloomer Chris Canadian Energy Pipeline Association (CEPA) President and CEO [redacted] [redacted] Bradley Francis Canadian Electricity Association (CEA) President and CEO 613-230-9263 [redacted] Egan Tim Canadian Gas Association President and CEO 613-748-0057 ext. [redacted][redacted] Canadian Council on Renewable Electricity / 613-234-8716 ext Hornung Robert President Canadian Wind Energy Association [redacted] [redacted] Kirby Mark Canadian Hydrogen and Fuel Cell Association President and CEO 604-283-1040 [email protected] Lonechild Guy First Nations Power Authority (FNPA) CEO 306-359-3672 [redacted] Boag Peter Canadian Fuels Association President and CEO 613-232-3709 [email protected] Laut Steve Canadian Natural Resources Limited Executive Vice Chair 403-517-6700 [redacted] Marsh MJ (Mike) SaskPower President and CEO 306-566-3271 [email protected] Winchester Bruce Canadian Natural Gas Vehicle Alliance Executive Director [email protected] Larocque Bob Canadian Fuels Association President and CEO 613-232-3709 [email protected] Pfeffer Dan Renewable Industries Canada Senior Principle [redacted] Thompson Ian Advanced Biofuels Canada President [email protected] Wicklum Dan Transition Accelerator CEO [redacted] [redacted] Cox Bryan Canadian LNG Alliance President and CEO 778-379-7644 [redacted] Newfoundland and Labrador Oil and Gas Johnson Charlene Chief Executive Office Industries Association [redacted] [redacted] Masterson Bob Chemistry Industry Association of Canada President and CEO (613) 237-6215 ext. [redacted][email protected] Chair [Vice-President, Clean Resource Innovation Network (CRIN) [+ Romero Joy Technology and Innovation @ Canadian Natural Resources] CNRL] [redacted] [redacted] Canada’s Oil Sands Innovation Alliance Jickling Wes CEO (COSIA) [redacted] [redacted] Switzer Jason Alberta Clean Tech Industry Alliance President [email protected] Canadian Association of Petroleum McMillan Tim President and CEO 403-267-1100 [email protected] Producers (CAPP) Energy Efficiency Diamond Corey Efficiency Canada Executive Director [redacted] [redacted] Dunsky Phil Efficiency Canada President 514-504-9030 ext. [redacted][redacted] Mueller Thomas Canada Green Building Council (CAGBC) President and CEO 866-941-1184 [redacted] Building Owners and Managers Association (416) 214-1912 Ext. Shinewald Benjiman President and CEO [email protected] Canada (BOMA) [redacted] Lee Kevin Canada Home Builders' Asosciation (CHBA) CEO 613-230-3060 [redacted] Heating, Refrigeration and Air Conditioning VP, Government and Luymes Martin 1-800-267-2231 Institute of Canada Stakeholder Relations [redacted] Karsten Bill Federation of Canadian Municipalities (FCM) President 613-241-5221 [redacted] Manager Director, Green Boivin Chris Federation of Canadian Municipalities (FCM) [email protected] Municipal Fund Quality Urban Energy Systems of Tomorrow Leach Tonja Interim Executive Director 866-494-2770 [email protected] (QUEST) Lee Kevin Canadian Home Builders Association CEO [redacted] Co-founder and Managing Rand Tom ArcTern Venture [email protected] Partner Diamond Corey Efficiency Canada President [email protected] Mining

Simard Jean Aluminium Association of Canada (AAC) President and CEO 514-288-4842 ext 442 [email protected] Gratton Pierre Mining Association of Canada (MAC) President 613-233-9391 [email protected] Mining Industry Human Resources Council Montpellier Ryan Executive Director 613-270-9696 [email protected] (MiHR) Prospectors and Developers Association of 416-362-1969 ext Lee Felix President Canada (PDAC) [redacted] [redacted] Association of Canada Lands Surveyors Christie Jim President 604-683-8521 [email protected] (ACLS) Mining Suppliers Trade Association (Canada) McEachern Ryan Managing Director 905-513-0046 – MSTA Canada [redacted] Centre for Excellence in Mining Innovation Morrison Doug President and CEO 705-673-6568 [email protected] (CEMI) COREM (Consortium de recherche en 418-527-8211 ext Fournier Francis President and CEO traitement de minerais) [redacted] [redacted] Weatherall Carl Executive Director and CEO 613-627-0771 Canadian Mining Innovation Council (CMIC) [redacted] Forestry Forest Products Association of Canada Nighbor Derek President and CEO (613) 563-1441 x [redacted][email protected] (FPAC) Yurkovich Susan Council of Forest Industries (COFI) President and CEO (604) 891-1205 [email protected] Renou Stéphane FPInnovations President and CEO (514) 630-4104 [redacted] Krips Jason Alberta Forest Products Association CEO (780) 392-0750 [redacted] Association québécoise de la production Samray Jean-François CEO (418) 657-7916 d'énergie renouvelable [redacted] Lim Jamie Ontario Forest Industries Association President and CEO Nuclear Gorman John Canadian Nuclear Association (CNA) President and CEO 613-237-4262 [email protected] Smith Stephanie CANDU Owners Group President and CEO [redacted] Nuclear Waste Management Organization Swamie Laurie President and CEO (NWMO) [redacted] Organization of Canadian Nuclear Industries Oberth Ron President and CEO 905-839-0073 [email protected] (OCNI) Research Canadian Institute for Advances Research Bernstein Alan President and CEO 416-971-42510 (CIFAR) Renou Stephane FPInnovations President and CEO 514-630-4104 [redacted] Wu Yung MaRS Discovery District CEO 416-673-8100 [email protected] 905-525-9140 ext Deane Patrick McMaster University President [redacted] [redacted] Gertler Meric University of Toronto President 416-978-4163 [email protected] Fortier Suzanne McGill University Principal 514-398-4180 [email protected] Shepard Alan Western University President & Vice-Chancellor [redacted] [redacted] President and vice-chancellor Hamdullahpur Feridun University of Waterloo General Inquiry 519-888-4567 [email protected] Ono Santa J. University of British Columbia President & Vice-Chancellor N/A [email protected] Helfenbaum Brian Alberta Innovates Executive Director [email protected] Wicklum Dan Transition Accelerator President and CEO [redacted] [redacted] Peesker Kevin Microsoft Canada President 613-212-5500 N/A International Energy Brouillette Dan U.S. Department of Energy Secretary Japan Ministry of Economy, Trade, and Kajiyama Hiroshi Minister Industry (METI) Nahle Rocio Mexico Secretariat of Energy (SENER) Secretary Al Mazrouei Suhail UAE Ministry of Energy and Industry Minister Tchórzewski Krzysztof Poland Ministry of Energy Minister Pradhan Dharmendra India Ministry of Petroleum and Natural Gas Minister Birol Dr. Fatih International Energy Agency (IEA) Executive Director Bromhead Amos International Energy Agency (IEA) Chief of Staff [email protected] Canete Miguel DG ENER (EU) Commissioner Yergin Dan HIS Markit Vice Chairman [redacted] [redacted] Embassies Hillman Kirsten Embassy of Canada in the United States Ambassador [email protected] Barton Dominic Embassy of Canada in China Ambassador [email protected] Select Deputy Committees NRCan Governance Committees (DM, DMA, & ADM Level Only)

Deputy Minister / Associate Deputy Minister

Weekly Planning Committee Executive Committee Chair: DM

Performance Measurement, NRCan Champions Departmental Evaluation and Human Resources Policy and Science Business (Various) Audit Committee Experimentation Advisory Integration Transformation (DAC) Committee Science and Committee Committee (PSIC) Committee (BTC) DM Level (PMEEC) Technology Board (HRAC) Chair: DMA / Chair: DMA / Chair: DM Chair: DM Co-Chairs: ADM Alternate: ADM Alternate: CFO / CMSS and ADM SPO ADM CMSS ETS Labour Operations Management Committee Consultation DM/DMA/ADM Committee Level Chair: DM

New Committees Other Committees Portfolio Affairs Policy Committee Forum (PAF) Departmental Workforce Adjustment on Occupational Energy Transition Committee ADM/DG Level Committee (DWAC) (Standby Mode) Health and Safety Chair: DM Members from Chief Financial Reports to DM (PCOHS) other portfolio Officer Indigenous Advisory Committee Various levels Chair: DMA agencies Departmental Governance Departmental Awards and Recognition Committee Committee (DARC) Transfer Payment Chairs: ADM CPS / Director POB Review Chair: DM/DMA/ADM CMSS Executive Classification Committee (TPRC) Science & Data Committee Committee ADM Level Chair: ADM SPI / CSA Recommends / International Advisory Reports to DM Occupational Committee Health and Safety Chair: TBC Committee (OHS) Regular updates to PCOHS

Legend

DM/DMA/ADM SPI Supported Office of the Chief Scientist Communications and Portfolio Membership Supported Sector Supported Prepared by POB/CMSS, PDR/SPI CMSS Supported Audit and Last Updated: September 17, 2020 Evaluation Branch Supported DEPARTMENTAL AUDIT COMMITTEE (DAC)

MANDATE AND RESPONSIBILITIES

The DAC is an essential part of the department’s governance and internal audit regime, as established by the Financial Administration Act and the Policy on Internal Audit.

The DAC is an advisory committee to the Deputy Minister (DM). The committee provides objective advice and recommendations to the Deputy Minister regarding the sufficiency, quality and results of assurance on the adequacy and functioning of the department's risk management, control and governance frameworks and processes. Using a risk-based approach, the committee has the responsibility of reviewing all eight-core areas of departmental management, control and accountability processes. These areas are:  Values and ethics  Risk management  Management control framework  Internal audit function  External assurance providers  Follow-up on management action plans  Financial statements and public accounts reporting  Accountability reporting

To be able to do this, the Committee must exercise oversight of core areas of departmental management, control and accountability in an integrated and systematic way. As a strategic resource to the DM, the DAC also provides such advice and recommendations as may be requested by the DM on specific emerging priorities, concerns, risks, opportunities and/or accountability reporting.

MEMBERSHIP

NRCan’s DAC includes two internal members – DM and Associate DM. It also includes four independent external members with various backgrounds and extensive experience – Rick Smith (Chair), Angeline Gillis, Monica Norminton and Alan Pelman. The Audit and Evaluation Branch is the secretariat for this Committee and it meets at least four times per year.

More information on NRCan’s DAC and internal audit function will be provided in a separate briefing to the DM.

PERFORMANCE MEASUREMENT, EVALUATION AND EXPERIMENTATION COMMITTEE (PMEEC)

MANDATE AND RESPONSIBILITIES

The PMEEC is a deputy-chaired committee, as directed by the Treasury Board's Policy on Results. The committee oversees how the department establishes and maintains robust performance measurement and evaluation functions and how it embeds experimentation approaches within the department.

PMEEC supports the Deputy Minister in instilling a strong departmental culture where evidence from performance measurement, evaluation, and experimentation informs program and policy design, delivery, decision making, and public reporting.

Part of PMEEC's key responsibilities include advising the Deputy Minister on: - the Departmental Results Framework, the Program Inventory and Performance Information Profiles. - the annual five-year Departmental Evaluation Plan, evaluation reports and management action plans. - the departmental capacity and plans for departmental experimentation, as well as integration of lessons learned and new tools from experiments. - planning, resourcing, and coordination of performance measurement, evaluation and experimentation functions. - Supporting the use and integration of knowledge gained through performance measurement, evaluation and experimentation.

PMEEC also advises the Deputy Minister on emerging horizontal and cross-cutting issues arising from performance measurement, evaluation, and experimentation, while ensuring alignment and integration with departmental information needs.

MEMBERSHIP

PMEEC includes selected ADMs, DGs, Ex-Officio Members, Permanent Observers, one Rotational Member. It also includes two External members: Marthe Hurteau, Director of Higher Education Diplomas specializing in program evaluation at UQAM and Pablo Sobrino, [redacted] former ADM at DFO, PSPC and PCH.

The Planning, Delivery and Results Branch is the secretariat for this committee and the meetings take place quarterly, on average, although additional meetings may be scheduled as required.

UPCOMING MEETING

Proposed agenda for meeting on November 5, 2020.

Performance Measurement, Evaluation and Experimentation Committee

November 5, 2020 1:00 p.m. to 2:30 p.m. Teleconference Proposed Agenda

Item Time Subject Purpose Discussant(s)

1:00 – 1:05 Opening Remarks Jean-François Tremblay 1 Approval Deputy Minister (5 minutes)  Record of Decision

Michel Gould

Head of Evaluation 1:05 – 1:35 Evaluation of Major Projects Approval 2 Management Office Initiative & West (30 minutes) Coast Energy Initiative Ellen Burack

Assistant Deputy Minister, MPMO

Michel Gould

Head of Evaluation 1:35 – 1:55 Evaluation of the Energy Efficiency 3 Approval (20 minutes) Program Mollie Johnson

Assistant Deputy Minister, LCES

1:55 – 2:15 Frank Des Rosiers 4 NRCan's Framework to Track Results Concurrence & Impact of COVID-19 Measures (20 minutes) Assistant Deputy Minister, SPI

Jean-François Tremblay

Deputy Minister Closing Remarks

 Update on Audit and Evaluation 2:15 – 2:30 Outstanding Recommendations Michel Gould 5 Information Update on Finalizing DRF (15 minutes)  Head of Evaluation Amendments

Anne Routhier

Head of Performance Measurement

More information on NRCan’s PMEEC, the performance measurement, evaluation and experimentation functions will be provided in a separate briefing to the Deputy.

DEPUTY MINISTER COMMITTEE ON ECONOMIC FRAMEWORK AND INCLUSIVE GROWTH (EFIG)

ISSUE

 EFIG is a forum for broader discussion on key medium-term policy issues related to inclusive growth and economic priorities in a post-COVID context. It was previously co-chaired by Christyne Tremblay, Deputy Minister of Natural Resources and Deputy Graham Flack (ESDC).

BACKGROUND

 The Committee is tasked with developing diagnostics and options in support of Canada’s economic recovery while maximizing the potential impact of coordinated, horizontally integrated economic actions to achieve the objective of inclusive growth.

 The Committee has identified three thematic areas for which it is has undertaken diagnostics: o Labour market, skills development and income security; o Post-COVID-19 economy; and, o Supply chains and rebuilding domestic capacity.

 [redacted]

KEY CONSIDERATIONS

 EFIG is a unique forum because it provides an opportunity to examine horizontal connections across the Government’s policy agenda and ensure a whole-of- government approach to “building back better” through transformative economic frameworks that foster inclusive growth

 [redacted]

NEXT STEPS

 Anticipating your appointment as a member and potentially co-chair (PCO to confirm), NRCan officials are working with counterparts at ESDC to schedule the next EFIG meeting [redacted]

CONTACT PERSON: Daniel MacDonald, Director General, Strategic Policy Branch, SPI (613-295-0967)

DEPUTY MINISTER CLIMATE CHANGE AND ENERGY COMMITTEE (DM CCE)

ISSUE

 Demonstrate leadership in policy development and medium term planning with respect to advancing the Government’s environment agenda, and specifically the fight against climate change, accelerating the energy transformation and the transition to a low carbon economy in the evolving context of COVID-19.

BACKGROUND

 The Committee serves as a forum for broader discussions to identify and assist with the resolution of issues that may impede or delay implementation of the Government’s climate change, nature and energy agendas. It facilitates horizontal engagement on issues pertaining to the transition to a low carbon economy.

 The Committee evaluates progress and reports periodically to the broader Deputy Minister community and the Privy Council Office on implementation developments.

 The Committee is co-chaired by Agriculture and Agri-Food Canada and Infrastructure Canada. DM members determine the priority issues for discussion as well as potential questions that will help guide the Committee’s work. It meets regularly but on a flexible basis (potentially every 6 weeks).

KEY CONSIDERATIONS

 Prior to the pandemic, the Committee was focussed on supporting the government’s work on developing and providing transition advice to the incoming government. This included the policy and analytical underpinnings of transforming the energy sector to meet 2030 and 2050 targets.

 In the spring, the Committee’s work had to pivot quickly to provide an assessment of the impacts of COVID-19 on the energy, transport and cleantech sectors. NRCan worked closely with Statistics Canada to provide a comprehensive update of COVID-19 impacts and implications for the energy and climate agenda.

NEXT STEPS

 The co-chairs are developing a fall workplan in consultations with implicated departments, including NRCan. They will take into account cross-linkages with the ad hoc DM Working Group on Energy and Climate Change and leverage the existing ADM Oversight Committee on the Pan-Canadian Framework on Clean Growth and Climate Change.

 From NRCan’s perspective, the workplan could focus on taking stock of COVID- 19 impacts and the longer-term strategy for economic recovery and transformation, led by the natural resource sectors.

CONTACT PERSON: Eric Belair, Director-General, Energy Policy and International Branch, LCES

2 Deputy Minister Committee on Indigenous Reconciliation

Summary

 DMCIR was created in early 2020 (replacing the DM Task Force on Reconciliation) with the mandate to focus on managing the political and operational issues related to implementation of the Indigenous reconciliation agenda and facilitate horizontal engagement on major initiatives.  The Members include the Deputy Ministers from Justice, Crown Indigenous Relations and Northern Affairs, Intergovernmental Affairs, Heritage, Indigenous Services Canada, and Department of Fisheries and Oceans, as well as the President of CANNOR and the Deputy Secretary to Cabinet.  In the spring, the DMCIR was focussed on creating a work plan for the committee, however due to the pandemic, the last meeting was on June 18 and the work plan remains to be completed.  Indigenous Affairs and Reconciliation Sector (IARS) is the department support for this Committee.

Bottom Line for NRCan

 As part of its departmental plan, NRCan is committed to building long-term relationships and partnerships with Indigenous peoples. The department aims to ensure there are increased opportunities for Indigenous peoples to share in the prosperity of the development of Canada’s natural resources through business opportunities, the development of programs and policies, review of projects, and braiding and weaving Indigenous knowledge to strengthen our western science.  NRCan has interest and role to play in many of the DMCIR Work Plan priority areas, such as COVID- 19 Economic Relief/Recovery, the 10-year Infrastructure Plan, Indigenous Procurement, the Wet’suwet’en mandate, and the Missing and Murdered Indigenous Women and Girls (MMIWG) National Action, and the plan to repeal and replace First Nations Land Management Act. DMCIR’s Draft Work Plan is attached.  Of particular interest, the Government remains committed to introducing legislation to implement the UN Declaration the end of 2020, and NRCan will be leading engagement sessions with natural resource industry stakeholders. The National Indigenous Organizations (NIO) will also participate in NRCan’s sessions. See the UN Declaration one pager for more details. o In general, our industry partners are supportive of legislation to implement the UN Declaration. However, they have consistently stressed the importance of clearly defining free, prior, and informed consent, and clearly articulating the intent of the proposed legislation prior to its implementation to avoid uncertainty for industry and investors.  One section of the National Inquiry into MMIWG describes how resource extraction projects and associated work camps can exacerbate violence against Indigenous women and girls. NRCan will be working with CIRNA and other government departments to assist in developing a National Action Plan to respond to the Inquiry’s Final Report. DRAFT

Deputy Minister Impact Assessment Committee: Terms of Reference

Purpose

The Deputy Minister Impact Assessment (IA) Committee will provide oversight and strategic direction on issues and risks pertaining to the implementation of the Impact Assessment Act and the Canadian Environmental Assessment Act, 2012.

The Committee will provide advice and direction, but not fetter member departments’ and agencies' respective decision-making authorities.

The Committee will be supported by an Assistant Deputy Minister (ADM) Impact Assessment (IA) Committee and a Director General (DG) IA Committee.

The Committee will work in a complementary manner with the Resource Partnerships Initiative DM Committee, and other Deputy-level Committees, as appropriate.

Objectives

The scope of Committee discussions will encompass cross-cutting operational and strategic implementation issues related to project, regional and strategic assessments under the IAA and CEAA 2012, including:

• tracking of, and collaboration on, project, regional, and strategic assessment issues; • ongoing legislative, regulatory and policy implementation activities; • coordination and alignment of inter-departmental resources; • inter-jurisdictional agreements and collaboration; • system-wide implementation approaches and activities, including: o Horizontal results o Cost recovery policy o Indigenous policy o Indigenous accommodation approaches

Membership

The Committee will be comprised of Deputy Ministers (or Deputy Heads) representing all departments and agencies implicated in the implementation of the Impact Assessment Act (i.e. IAAC, ECCC, NRCAN, DFO, TC, HC, WAGE, CER, CNSC, CIRNA, ISC, ISED, ESDC, PCA, CanNor, DOJ, PCO, FIN (as needed), TBS.)

Chair: President of the Impact Assessment Agency of Canada.

DRAFT

Meeting Frequency

The Committee will meet on a monthly basis and will review the frequency of its meetings as implementation of the Impact Assessment Act progresses.

The Terms of Reference will be reviewed at a frequency determined by the Chair, in consultation with committee members. Terms of Reference for the TMX Deputy Minister Oversight Committee (TMX DMOC)

Mandate  TMX DMOC provides whole-of-government strategic oversight on the implementation of the TMX Expansion Project (the Project).

Scope of Activities  Makes decisions on an as needed basis, discusses major or potential issues and provides strategic direction to federal departments on implementation of the Project.  Provides strategic advice to the Minister of Natural Resources, via the Deputy Minister of Natural Resources, on cross cutting issues critical to the success of the Project, including linking the project to other government priorities (e.g.:  Is informed regularly on key cross cutting initiatives and activity (e.g.: Accommodations, construction, litigation).  Ensures the interplay of the project with broad issues such as Western Alienation, linkages to Oil and Gas and other critical priorities is considered.  Will be consulted prior to any major public announcement that might substantially impact the direction of or progress on, the Project.

Relationship to Other Committees  TMX DMOC is the main senior information sharing body for organizations involved in the Project. It will consider items appropriate for the Deputy audience and does not require prior approval of the ADM, or other level, committee(s).  The TMX ADM Oversight Committee may refer items to TMX DMOC at their discretion.

Membership  TMX DMOC is chaired by the Deputy Minister of Natural Resources Canada.  Membership comprises of Deputies from TMX implicated Departments. The membership is as follows: 1. DM NRCan (Jean-François Tremblay) 2. Associate DM NRCan (Shawn Tupper) 3. DM CIRNA (Daniel Watson) 4. Commissioner of Canadian Coast Guard (Mario Pelletier) 5. DM DFO (Timothy Sargent) 6. DM ECCC (Christine Hogan) 7. DM Transport (Michael Keenan)

8. DM ISC (Christiane Fox) 9. DM Justice (Nathalie Drouin) 10. Associate DM Finance (Ava Yaskiel)  Replacements should be DM level. When possible TMX Policy Planning and Coordination Division, the Committee Secretariat, will be informed of any replacements two days prior to the meeting.

Official Languages  Meetings are bilingual. o Debriefs, presentations, and updates must be delivered in both official languages; members may ask questions and presenters may respond to questions in the official language of their choice.

Meeting Frequency  TMX DMOC meets every two months, or as required at the discretion of the Chair.

Secretariat Support  The NRCan TMX Policy, Planning, and Coordination Division provides support to the committee including: agenda management, advice to the Chair, document distribution, meeting logistics, tracking and monitoring, and information management.  Agendas will be sent one week prior to the meeting and bilingual materials a minimum of three days prior to the meeting date. Table drops will not be permitted unless of the upmost critical nature.  Action items will be provided within a reasonable time frame post meeting. Records of Decision will be approved by the committee at the following meeting.  All efforts will be made to encourage in person attendance at the meetings.

Ministerial Budget Letters to the Minister of Finance Mandate Tracking SECTION 2 First 90 Days Overview Strategic Direction STRATEGIC DIRECTION FOR NATURAL RESOURCES IN CANADA

Canada’s natural resources sectors (mining, forest, and energy) are important at both the national and local levels. Their total share of the Canadian economy makes them a key part of Canada’s economic recovery both now and as a source of wealth for the future (all figures for 2018):  17% of Canada’s nominal GDP (2018; direct and indirect contributions);  1.71 million Canadian jobs, including the employment of 40,000 Indigenous peoples;  49% of Canada’s total merchandise exports; and,  $21B in annual revenues to governments.

Natural resources are also the backbone of almost a thousand communities across Canada that depend on these sectors for economic stability and jobs (e.g., 300 forest- dependent communities, 386 mining-dependent communities, and 300 oil-and-gas dependent communities). For rural, remote and Northern regions, COVID has emphasized existing vulnerabilities, for example in supply chains and day-to-day operations, and limited alternatives to diversify their economic base due to the lack of critical infrastructure (e.g., transportation, energy and communications).

Economic recovery is necessary to achieve gains in environmental and social performance. Companies in the natural resources sectors have been facing unprecedented demand and price pressures, as well as supply chain disruptions that have forestalled their transformations towards more resilient business models and operations. Charting a course for a successful green and inclusive recovery will ensure the welfare of Canadians today and tomorrow.

Targeted measures are required to stabilize industrial sectors that have been hit hardest, including the natural resources sectors. Recovery measures to stabilize industrial sectors, which will be fundamental to achieving Canada’s green transition, will need to be considered in parallel with our actions on climate change. Relevant strategies for given industries, informed by the findings and advice of the Industry Strategy Council tables, can guide the application of measures to maintain focus and maximize outcomes for both the environment and the economy.

Industrial strategies will be centred on three key outcomes:

1. Competitiveness - Support economic recovery by addressing access to capital issues and seizing new market opportunities. Competing in global markets, Canada’s natural resources are highly dependent on U.S. and Asian markets. Supply chain shifts have exposed Canadian companies to increased risk. At the same time, as Canada’s natural resources sector begins to transform – decarbonize, develop energy security strategies, and move towards higher value products (e.g., bioeconomy) – investments are required to move up the value chain to generate domestic benefits, attract investment and focus on value- added activities that give our industries a global competitive advantage. [redacted]

2. Green Recovery - Supporting industrial sectors in their efforts to decarbonize and increase environmental performance, and improve the effectiveness of measures such as carbon pricing by providing the motivation that supports a timely, but not cost-prohibitive, transition. With the pandemic-related shock to the economy, many firms have been focused on survival and have substantially cut capital expenditures and operating costs, including those focused on meeting upcoming environmental regulatory needs (e.g. CFS, effluent regulations). Investments in firms’ environmental and long-term competitiveness are at risk without further measures to provide and de-risk capital. [redacted]

3. Inclusive Growth - To ensure an inclusive recovery and “build back better”, regional and local economic development efforts need to address the uncertain future of natural resources dependent communities and to respond to the needs of under-represented groups that have been disproportionately affected by COVID-19. Opportunities exist to bolster an inclusive recovery given that the natural resource sector is already a major employer of Indigenous peoples across the country and can be a key contributor to the government’s economic reconciliation efforts. [redacted]

Cabinet Business TB Business Litigation Horizon Regulatory Priorities

CLEAN TECHNOLOGY TARGETED REGULATORY REVIEW

ISSUE

 As part of the Treasury Board Secretariat’s broader regulatory modernization initiative, NRCan is leading a federal clean technology regulatory review.

KEY MESSAGES

 The review is intended to address regulatory requirements and practices that impede or support economic growth and innovation within the clean technology sector.  [redacted]  Finding opportunities within the regulatory system to support the growth of the clean technology sector is key to transforming Canada’s natural resources sector and to positioning Canada as a leader in the global low carbon economy.  The first round of regulatory roadmaps led to over 72 different actions, ranging from legislative to regulatory to program changes, with over $200 Million announced in Budget 2019 to implement various these roadmap initiatives, and strong positive feedback from the Canadian Chamber of Commerce.

RATIONALE

 There are several regulatory barriers to production and adoption of clean technologies including o lack of an regulatory regime for new innovative technologies (e.g., Hyperloop) o regulatory standards or outcomes not being stringent enough to drive research and development and adoption o lack of awareness amongst regulators of new and emerging technologies when setting performance standards o lack of capacity of small and medium enterprises to engage in regulatory processes o lack of opportunities to pilot new and unproven technologies in a regulated context o health and safety regulations that limit new clean technologies  NRCan volunteered to lead the clean technology theme of the targeted review as the subject matter falls under the department’s mandate to accelerate the development and transition to clean technology and links to the department’s role as a regulator under the Energy Efficiency Act, amongst others. TBS will continue to provide overall coordination and guidance.

KEY CONSIDERATIONS

 TBS received approximately 40 submissions related to clean technology during a formal Gazette consultation process in the summer of 2019. Submissions came

from companies and associations, but primarily from the adopter end of the spectrum. TBS will publish a “What We Heard” document to reflect these results.  Following the federal election, additional targeted engagement took place and provided an opportunity to further probe issues and irritants and ensure that we heard from different interests and sub-sectors in the clean tech sector. This also involved additional one-on-one engagement, working sessions, and online consultations.  NRCan is working with TBS and other engaged departments and agencies (including Environment and Climate Change Canada, Innovation, Science and Economic Development Canada, Fisheries and Oceans Canada, Transport Canada, Agriculture and Agri-Food Canada, Standards Council of Canada and Health Canada) to propose specific actions and timelines to address the comments and issues.  NRCan has an initial sense of some regulatory issues and ideas on how to address them based on the department’s work on advancing clean technology innovation and adoption. This includes work with the first phase of the Economic Strategy Tables for Clean Technology and Resources of the Future, working with the clean tech sector through various funding programs, and direct engagement with Canadian clean technology companies through the Clean Growth Hub.  [redacted]

CONTACT PERSONS: Mallika Nanduri Bhatt, DG Innovation Branch, SPI, 343-292-6926 Damian Crawley, Sr. Policy Analyst Innovation Branch, SPI, 343-999-607

Calendar of Events Communications and Portfolio Sector Calendar NOTE: This is an evergreen product. An updated version is provided to DMO each Friday as part of the Weekly Look Ahead package.

September 2020 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY

Week of August 31 – Sept 4 1 2 3 4 5

Week of September 7 - 11 7 8 9 10 11 12 Minister Bibeau to announce Clean Growth Minister O’Regan to deliver virtual a MP Brière to participate in an in- LABOUR DAY Program funding to CRB Innovations (Westbury, keynote at the Canadian Hydrogen and Fuel person event to announce Clean QC) Cell Conference Growth Program funding to E2Metrix Minister O’Regan to deliver a pre- (Sherbrooke, QC) recorded keynote address at the MP Lightbound to announce Clean Growth Program Minister Jordan and MP Zann to announce Gastech Conference hosted by funding to Elkem Métal Canada (Saguenay, QC) tidal project funding to Nova Innovation, Singapore University of Manitoba, Offshore Energy Research Association and Fundy Ocean Research Centre for Energy (Halifax, NS) Week of September 14 - 18 14 15 16 17 18 19 MP Sidhu to announce EV funding to Minister O’Regan to deliver pre-recorded opening remarks PS Lefebvre to announce Climate Change Minister O’Regan to participate in virtual PS Lefebvre announce climate change The Regional Municipality of Peel at the Virtual 2020 National Conference of the Canadian Adaptation funding to Université du Québec CEM11 Pre-events adaptation funding to Laurentian (Caledon, ON) Institute of Forestry en Abitibi-Témiscamingue (Rouyn-Noranda, University (Sudbury, ON)

Minister O’Regan to deliver pre-recorded remarks at the QC) PS Lefebvre to announce IFI funding to virtual CEM11 Pre-event Ministers O'Regan and Wilkinson to Kebaowek First Nation (Kebaowek, QC) Minister O’Regan and PS Lefebvre to promote the BC Dormant Sites PS Lefebvre to announce Clean Growth Program funding participate in a CCFM call Reclamation program orphan wells PS Lefebvre to announce IFI funding to to Centre Technologique des Résidus Industriels (Rouyn- (Vancouver, BC) Timiskaming First Nation (Abitibi, QC) Noranda, QC)

PS Lefebvre to participate in a CCFM call

PS Lefebvre to announce Green Freight program funding to Martin Roy Transport (Rouyn-Noranda, QC) Week of September 21 - 25 21 22 23 24 25 26 Minister O’Regan to deliver a video Minister O’Regan to participate in the MP Weiler to participate in an in-person event to HOUSE IN SESSION Minister O’Regan to deliver a pre-recorded Minister O’Regan to participate in a statement to the 64th International virtual CEM11/MI-5 (Sept 21-23) announce EV funding to the Squamish Liquor Store keynote address at the Energy Storage virtual EMMC meeting (Sept 25 and Atomic Energy Agency (IAEA) General (Squamish, BC) Canada Annual Conference 28) Conference (Sept 21 – 25) Minister O’Regan to announce via news Speech from the Throne release funding for Mountain Pine MP Weiler to participate in an in-person event to Minister O’Regan to participate in a Minister O’Regan to issue a statement MP McLeod to announce funding for Beetle control, research and mitigation announce EV funding to the Resort Municipality of moderated Q&A via Zoom with the Young for National Forest Week (Sept 20 – eight CERRC projects (Inuvik, NWT) Whistler (Whistler, BC) Professionals in Energy 26) (Sept 21-26 TBC) PS Lefebvre to announce GC Wood Minister O’Regan to deliver a pre-recorded funding to CNL (TBC) MP Bagnell to announce funding for five CERRC keynote address at the Maritimes Energy [redacted] projects (Whitehorse, YK) Association annual conference Minister Hadju to announce funding for six Ontario CERRC biomass heating PS Lefebvre & MP Serre to announce BRACE projects (Thunder Bay, ON) TBC funding to Laurentian University (Sudbury, ON)

MP McLeod to announce funding for six CERRC (Inuvik, NWT) Week of September 28 – Oct 2 28 29 30 Minister O'Regan to participate in a Minister O'Regan to participate in a Minister O’Regan to participate in a European Raw virtual G20 (Sept 27-28) virtual G20 (Sept 27-28) Materials Alliance Conference (TBC)

Minister O’Regan to participate in a Minister O’Regan to participate in a fireside chat with the Alberta Business virtual EMMC meeting (Sept 25 and 28) Council (Week of Sept 28 or Oct 5)

International Confirmed Event Parl Activities Portfolio activities Other September 16, 2020 1:39 PM Communications and Portfolio Sector Calendar NOTE: This is an evergreen product. An updated version is provided to DMO each Friday as part of the Weekly Look Ahead package.

October 2020 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Week of September 28 – Oct 2 1 2 3 Minister O’Regan to deliver pre- recorded video congratulations to the 2020 FPAC Awards of Excellence program recipients (Sept/Oct TBC)

Week of October 5 – 9 5 6 7 8 9 10 Minister O’Regan to deliver a pre- Minister O’Regan to announce the Minister O’Regan to launch via news [redacted] recorded keynote address at launch of the Emissions Reduction release the Canadian Centre for WaterPower Week Fund (TBC) Energy Information (TBC)

Week of October 12 – 16 12 13 14 15 16 17

THANKSGIVING

Week of October 19 – 23 19 20 21 22 23 24

Week of October 26 – 30 26 27 28 29 30 31

International Confirmed Event Parl Activities Portfolio activities Other September 16, 2020 1:39 PM Key Contacts to Meet in First 90 Days Last Name First Name Organization Position Phone Number Email Rationale Highly Recommend Portfolio Organizations

Recommend introductory calls with Heads of the Portfolio Agencies. Building strong and collaborative relationships within the Portfolio helps to [redacted] ensure effective service delivery to the Minister on Portfolio issues. We further recommend a Portfolio Agency Heads meeting be held in the first 90 Sexton Richard Atomic Energy Canada Limited (AECL) CEO 613-589-2089 x10212 [email protected] days to bring all Portfolio Heads together to discuss, for example, upcoming GoC policy direction, economic recovery and to share lessons learned and views. CPS will work with sector colleagues to recommend specific agenda items for this meeting. Velshi Rumina Canadian Nuclear Safety Commission (CNSC) CEO 613-992-8828 [email protected] Same as above Canada-Newfoundland and Labrador Offshore Tessier Scott CEO 709-778-1456 [email protected] Same as above Petroleum Board (C-NLOPB) Canada-Nova Scotia Offshore Petroleum Board Bonnell-Eisnor Christine A/CEO 902-440-4765 [email protected] Same as above (CNSOPB) De Silva Gitane Canada Energy Regulator (CER) CEO 403-299-2724 [email protected] Same as above Doyle Cassie Canada Energy Regulator (CER) Chair Person [redacted] [email protected] Same as above Provincial and Territorial Deputy Ministers Ministry of Forests, Lands, Natural Resources Allan John Operations and Rural Development, Deputy Minister 250-952-6500 [email protected] Recommend introductory calls with PT counterparts. Government of British Columbia Ministry of Energy, Mines and Petroleum Milhar Fazil Deputy Minister 250-952-0504 [email protected] Resources, Government of British Columbia Sprague Grant Ministry of Energy, Government of Alberta Deputy Minister 780-415-8343 [email protected] Ministry of Agriculture and Forestry, Tremblay Andre Deputy Minister 780-427-2145 [email protected] Government of Alberta Ministry of Energy and Resources, Government MacKnight Doug A/ Deputy Minister 306-787-9580 [email protected] of Saskatchewan Ministry of Environment, Government of Harrison Sarah Deputy Minister 306-787-2930 [email protected] Saskatchewan Ministry of Conservation and Climate, McTavish Blair A/ Deputy Minister 204-945-3785 [email protected] Government of Manitoba Gingera- Ministry of Agriculture and Resource Dori Deputy Minister 204-945-3734 [email protected] Beauchemin Development, Government of Manitoba Crown Services (Responsible for Manitoba Richards Michael Deputy Minister 204-945-2536 [email protected] Hydro) Ministry of Energy, Northern Development and Rhodes Stephen Deputy Minister 416-327-6734 [email protected] Mines, Government of Ontario Rolf Von Den Ministry of Natural Resources and Forestry, Monique Deputy Minister 416-314-2150 [email protected] Baumen-Clark Government of Ontario Ministère de l’Énergie et des Ressources Lizotte Marie-Josee Sous-ministre 418-627-6370 [email protected] naturelles, Government of Quebec Ministère des Forêts, de la Faune et des Parcs, Sous-ministre Gosselin Mario 418-627-6370 [email protected] Government of Quebec Department of Energy and Resource MacFarlane Thomas Development (Agriculture, Aquaculture and Deputy Minister 506-453-2501 [email protected] Fisheries), Government of New Brunswick Department of Energy and Mines, Government d'Entremont Simon Deputy Minister 902-424-1710 [email protected] of Nova Scotia Department of Lands and Forestry, Towers Julie Deputy Minister 902-424-4121 [email protected] Government of Nova Scotia Department of Transportation, Infrastructure Chaisson Darren Deputy Minister 902-368-5130 [email protected] and Energy, Government of PEI Department of Environment, Water and Colwill Brad Climate Change (Responsible for Forestry), Deputy Minister 902-368-5524 [email protected] Government of PEI Prince Edward Island Energy Corporation, Horrelt Kim Chief Executive 902-894-0289 [email protected] Government of PEI Department of Natural Resources, Government Lomond Ted Deputy Minister 709-729-2766 [email protected] of Newfoundland Major Proijectves and Initiatives Unit, Executive Bown Caharles Chief Executive 709-729-2844 Council, Government of Newfoundland Fisheries and Land Resources, Government of King Tracy Deputy Minister 709-729-3707 [email protected] Newfoundland Department of Energy, Mines, and Resources, Moore Paul Deputy Minister 867-667-5417 [email protected] Government of Yukon Department of Industry, Tourism and Strand Pamela Deputy Minister 867-767-9060 x6300 [email protected] Investment, Government of NWT Department of Environment and Natural Kelly Erin Deputy Minister 867-767-9055 x53000 [email protected] Resources, Government of NWT Department of Environment, Government of Noble Jr Jimmy Deputy Minister 867-975-7705 [email protected] Nunavut Department of Economic Development and MacIsaac Bernie Transportation (Responsible for Mines), Deputy Minister 867-975-7829 [email protected] Government of Nunavut [redacted]