Rowland Howe

From: Larry McCabe To: Janice Hallahan; Andrea Fisher Subject: FW: Hillwatch Funding report Date: September-14-18 2:02:05 PM Attachments: Hillwatch funding feasibility report Port of Goderich Aug 29,2018 - Final for circulation.pdf

From: Rowland Howe [mailto:[email protected]] Sent: September-14-18 11:42 AM To: Larry McCabe Subject: Hillwatch Funding report

Larry - please find attached the report prepared for GPMC by the Hillwatch group in Ottawa.

Please let me know if there are any questions or concerns

Rowland ______

Rowland Howe

President Goderich Port Management Corp. 245 North Harbour Rd W. Goderich Ontario N7A 3Z2

519 524 4247 1

August 29, 2018

Hillwatch Funding Feasibility Report

to the Goderich Port Management Corporation (GPMC)

Michael Teeter Principal

Hillwatch Inc. PO Box 4824, Station E. Ottawa, Ontario, K1S5H9 [email protected] 613-769-9212

Contents

1. Executive Summary

2. Proposed Action Plan

3. Strategic Considerations for Funding this Port Expansion

4. Federal Infrastructure Programs

a. Transport Canada and Transportation Infrastructure

b. Infrastructure Canada: Investing in Canada- Rural and Northern Communities Component

c. Environment Component of the Federal Infrastructure programs

5. Ontario Government Programs

a. Infrastructure Ontario (IO) program definitions and priorities

b. Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)

6. Some Private Sector Considerations

1. Executive Summary

Michael Teeter of Hillwatch Inc. was hired by the Goderich Port Management Corporation (GPMC) to undertake this phase 2 Port of Goderich funding expansion feasibility study. Research and communications with government and stakeholders has been undertaken over the past 7 weeks.

The response of government officials for the most part has been excellent. Federal and Provincial officials have been encouraging and helpful.

This report concludes that time is of the essence and that funding for the second phase of the Port Expansion is indeed feasible under the Rural and Northern component of the 2017 Canada-Ontario Infrastructure Agreement (Building Canada Fund). By September 30, Infrastructure Ontario (IO) must submit to Infrastructure Canada its policy framework for the program and will publish its administrative processes defining priority funding areas later this fall. This report suggests that the Phase 2 Port of Goderich expansion could be one of the Ontario priority projects under this component of the bilateral agreement. At this stage, the Goderich port project meets all the major funding criteria as established by the Federal-Ontario bilateral agreement. The new Ontario government has important Ministers that are important to project selection and these are Ministers that would be familiar with Goderich and the Port. Of note is the Ontario Minister of Infrastructure (IO) Monte McNaughton, the Minister of Education Lisa Thompson and the Minister of Agriculture, Food and Rural Affairs (OMAFRA) Ernie Hardeman.

The Association of Municipalities of Ontario (AMO) annual meeting was held in Ottawa from August 19 to 22. Meetings were held during the Conference and the project was discussed by Goderich officials and participants at the Conference. In due course, Goderich staff will be making a report to Town Council. Following the AMO meeting, the town and the port could work together to keep the project in the minds of decision makers as IO proceeds to publish its application criteria. An action plan to achieve this is outlined in Section 2.

This report also examines other federal and provincial funding programs, and concludes that the Rural and North Component of the Building Canada Fund is the most relevant funding program at this time. The federal Trade and Transportation Corridors program is also somewhat relevant; however, projects funded under this program must be national in scope and in the next year at least be projects in the territorial North only.

The body of this report also features conversations with possible new stakeholders and customers or users of the Port.

Relevant officials and contact information are also itemized in the body of this report. An action plan is itemized in section 2.

2. Proposed Action Plan

This report concludes that the Rural and Northern Infrastructure Component of the Canada- Ontario 2017 Infrastructure Agreement (Building Canada Fund) is the best funding prospect in the near term. Port of Goderich phase 2 expansion meets many of the important funding parameters including small community beneficiary, improvements to marine infastructure, appropriate project size, multi-party financing potential (e.g. federal, provincial, municipal (Port), municipality is the owner of the Port (and main beneficiary of the expansion), and there is a strong possibility for significant regional economic development and potential aboriginal community benefits.

Also, the timing is very good. Infrastructure Ontario (IO) must submit to Infrastructure Canada, by September 30, 2018, its proposed policy framework under the 2017 bilateral Federal- Ontario Infrastructure Agreement. With a new provincial government recently in place, funding priorities have yet to be set in stone, and therefore this presents a great opportunity to inject this expansion into the provincial government acceptable project list.

Goderich is a good political location. The federal MP is a Conservative in a federal Liberal government, and therefore the potential federal political outcomes are not ideal. However, the federal funding parameters have already been set by the 2017 Agreement and the opportunity for federal political intervention has been minimized. In essence, the province has the key federal-provincial project selection role. The Goderich MLA is the Minister of Education; the Infrastructure Ontario Minister is the MLA for the neighbouring riding and the Ontario Minister of Agriculture, Food and Rural Affairs also represents a close by riding. Politically, the stars appear to be aligned. Here is a sequence of the proposed action plan:

• Town of Goderich officials should discuss the project at the AMO conference in Ottawa, August 19 to 22. Key Ministers are: Monte McNaughton (IO), Ernie Hardeman (OMAFRA) and Lisa Thompson (Education). We understand that meetings/discussions have been held and that Town staff will be presenting a report to Council in due course. • GPMC and Town should closely follow IO announcements as they consider and then publish the specific funding criteria for the Canada-Ontario Infrastructure Agreement. • GPMC and the Town should formally apply for funding when appropriate. • GPMC/Town should contact key user/partner stakeholders including senior executives at Goderich-Exeter Railway and Bruce Power. • Town/GPMC should coordinate local stakeholder, including seeking involvement/assistance from OMAFRA regional reps, with a view to asking stakeholders to write Ministers with a letter of support. • GPMC should contact Port customers asking them to send in letter of support to the Infrastructure Ontario Minister with a copy to the OMAFRA and Education Ministers. • IO appears to have not set specific time limits at this point but have committed to publishing application processes and priority funding parameters sometime this fall. GPMC and the Town should be as involved in this process as possible.

Note: Key government and private sector contact names and contact information are in the body of this report.

The body of the report begins in Section 3 and there may be some redundancy between these sections and the points in the Executive Summary and Action Plan.

3. Strategic Considerations for funding this Port Expansion

Government infrastructure funding is typically program in nature. In other words, both federal and provincial governments fund infastructure according to priorities established by Cabinet and then funded by Parliaments and Legislatures through specific programs that match these priorities. Infrastructure funding is also usually multi-party in nature. In other words, there is a federal portion, provincial portion and municipal portion for all funding at the local, regional or municipal level. Projects of national or provincial scope may only have two funding partners, the federal and provincial governments. Sometimes there is a private sector component to funding, irrespective of whether or not the project is a Public-Private Partnership.

The strategic issue here is that funding for the Goderich port has to fit within an existing set of funding priorities and funding programs. It also has to likely be multi-party in nature. As a result this paper carefully examines relevant federal and provincial government programs in order to make conclusions about project funding feasibility.

Politics can also play an important role and this has to be carefully considered as we review a path forward. For example, currently, Goderich is represented in federal Parliament by an Opposition MP but is represented in the Ontario Legislature by an important Cabinet Minister. Strategically, the best political scenario would be for federal programs to be established and funded that are consistent with port expansion, and that these programs have a strong provincial "ask" associated with them. This means that if federal funding exists where the funding priorities are consistent with the expansion, and where provincial governments determine the precise projects consistent with these federal funds, then the possibility of project funding increases dramatically. In this way, the role of federal partisan politics in minimized. We are fortunate that this appears to be the case here.

A third strategic consideration is the ability for the expansion to meet the current funding priorities of all levels of government, which includes federal, provincial and municipal administrations. Again, in this case we are fortunate that improvements in transportation infrastructure are an important element of federal and provincial funding priorities. Where program priorities might require national project scope and therefore disqualify this project, we are fortunate that the "rural and northern" infrastructure funding priority seems to pick up the slack. When assessing the potential for a "improvements to marine infrastructure" priority project, having multi-modal access to the Port can be an important funding criterion. This

means that good relations with the Genesee & Wyoming Railway (and particularly those people responsible for the Goderich-Exeter (GEXR) short line) could be important.

One important piece that is missing and needs to be addressed by the Port is the extent to which the Town Administration and local and regional stakeholders (that could benefit from the expansion) are involved. These important players in the process need to be stimulated to take action in support of the expansion. Ideally, a full partnership between the town, the Port and key stakeholders that could benefit from the expansion is quickly achievable.

It would be tempting to re-frame phase 2 of the Expansion to include significant new investments in the Port. However, after careful consideration, I believe it would be prudent to request funding for the second phase of the project as defined in the existing and approved Environmental Assessment (EA). By requesting the approximate $30 million required under phase 2, Goderich would essentially be asking to complete the scope as defined by the EA. Increasing the scope runs the risk of delaying the project beyond the early funding period, perhaps by requiring more due diligence, a revised EA, etc.

Funding for phase 1 of the expansion was joint funding between the town (users and the Port Corporation) and the province, under the auspices of the Ministry of Transportation (MTO) . I was not involved in this process and I am not clear of the funding envelope that MTO was able to access for this project. I have carefully researched all of MTO's current funding for infrastructure projects and concluded that there is no obvious basket available for phase 2 of the expansion. However, when meeting with Ontario officials and Ministers I would advise careful note if other funding streams are mentioned.

4. Federal Infrastructure Programs a. Transport Canada and Transportation Infrastructure

Excerpts from Minister of Transport Mandate Letter (2015)

In particular, I will expect you to work with your colleagues and through established legislative, regulatory, and Cabinet processes to deliver on your top priorities:

• Work with the Minister of Infrastructure and Communities, who will have the lead, and in consultation with provincial and territorial governments as well as municipalities, to develop and implement an Infrastructure Strategy which will see significant investments made to improve public transit infrastructure and green infrastructure. The Strategy should also improve access to, and governance of, existing infrastructure programs, increase data collection capacity, promote better asset management of infrastructure in Canada and provide better supports for local communities. • Work with the Minister of Infrastructure and Communities, who will have the lead, on the delivery of a newly-focused Building Canada Fund which will make greater

investments in Canada’s roads, bridges, transportation corridors, ports, and border gateways, helping Canada’s manufacturers get their goods to market.

• Trade and Transportation Corridors Fund (TTCF)

Consistent with the Ministerial Mandate letter, in the 2017 federal budget considerable new monies were allocated for transportation Infrastructure. One of the new programs set up was the Trade and Transportation Corridors Fund, funded under the Infrastructure Canada envelope but administered exclusively by Transport Canada. Unfortunately, the 2018 requests for funding deadline had closed by the time this project commenced. The next call for funding will take place in early 2019, however, the 2019 round will be only for transportation projects in the Territorial North. Also, eligible projects should be national or international in scope.

Applications for the 2018 call greatly exceeded the funding available. (by more than 300%). We can expect the same result in 2019.

At least until 2020, I have concluded that funding for the Goderich Port expansion would not be feasible under the Trade and Transportation Corridors Fund.

The responsible Director at Transport Canada for the TTCF is Emilia Warriner. Her email is [email protected] and her phone number is 613-990-2208. Assisting her are: Eva Mohan (see Environmental programs below), Mona Abouhenidy, David Branton-Brown, Iain Tyrrell, James McCrae and Ludovic D'Souza (regional officer, see discussion on OMAFRA).

Of particular note is Senior Manager, Policy Advisor, Iain Tyrrell. Iain has considerable knowledge of all marine and port infrastructure programs and people. Iain can be reached at: [email protected] and 613-993-8357.

B. Infrastructure Canada: Investing in Canada- Rural and Northern Communities Component

Below is an excerpt from an email I received from Infrastructure Canada

" Funding under the Investing in Canada Infrastructure Program (ICIP) is directed to infrastructure assets that provide a public use and/or benefit. The Rural and Northern Communities Infrastructure stream will support projects that the improve the quality of life in rural and northern communities by responding to rural and northern specific needs. In order for projects to be eligible under this stream, they must meet at least one of the immediate outcomes. This project may be deemed eligible under ICIP if it can demonstrate alignment with one of the immediate outcomes under the Rural and Northern Communities Infrastructure, specifically such as: “ improved and more reliable road, air and marine infrastructure”.

As the Town of Goderich owns the asset (the Port of Goderich) it is considered an eligible recipient and would be eligible for cost-sharing ratio of fifty percent (50%) of Eligible Expenditures in Ontario for a municipality of 5,000 or more (Goderich 7,628 as of 2016). Eligible projects will be restricted to those situated within, and that are the direct benefit of rural and northern communities with a population of 100,000 or less based on 2016 Statistics Canada Census data.

It is important to note that proposed projects must be first prioritized by the province of ON before they are submitted to INFC for consideration. You will need to contact the Ontario Ministry of Infrastructure and ask them about process, the application and guide as to how to fill it and what are their deadlines (if any). Here is the IBA signed by Canada and Ontario as posted our public website http://www.infrastructure.gc.ca/prog/agreements- ententes/2018/2018-on-eng.html. It will give you an idea about the program and the requirements by all parties and funding allocated to each stream including the R&N.

Hopefully this is helpful.

Maha.

Maha Spek

Analyst, Program Integration Infrastructure Canada / Government of Canada [email protected] / Tel : 613-948-3997

Analyste, Intégration des programmes Infrastructure Canada / Gouvernement du Canada [email protected] / Tél : 613-948-3997

Canada-Ontario Infrastructure Agreement 2017

See http://www.infrastructure.gc.ca/alt-format/pdf/agreements-ententes/2018/2018-ON- Bilateral-Agreement-EN.pdf

Relevant Excerpt from the Canada-Ontario Agreement

Rural and Northern Communities Infrastructure

A. Objective

The rural and northern communities infrastructure stream will support Projects that improve the quality of life in rural and northern communities by responding to rural- and northern-specific needs.

B. Canada's Contribution i. Fiscal Year Breakdown a. Canada's total contribution funding for all Projects under the rural and northern communities infrastructure stream will be allocated in accordance with the estimated maximum amounts in the Rural and Northern Communities Infrastructure Fiscal Year Breakdown Table, as amended through administrative processes:

Rural and Northern Communities Infrastructure Fiscal Year Breakdown Table

Canada ($M)

2017 – 2018 $0.000

2018 – 2019 $18.7550

2019 – 2020 $18.7550

2020 – 2021 $18.7550

2021 – 2022 $25.0067

2022 – 2023 $25.0067

2023 – 2024 $25.0067

2024 – 2025 $25.0067

2025 – 2026 $31.2584

2026 – 2027 $31.2584

2027 – 2028 $31.2584

TOTAL $250.0671

C. Eligible Project Outcomes i. Projects eligible for rural and northern communities infrastructure stream contribution funding under this Agreement: a. must meet at least one of the outcomes in the Rural and Northern Communities Infrastructure Outcomes Table; or

Rural and Northern Communities Infrastructure Outcomes Table

Improved food security

Improved and/or more reliable road, air and/or marine infrastructure

Improved broadband connectivity

More efficient and/or reliable energy

Improved education and/or health facilities (specific to Truth and Reconciliation Commission's Calls to Action)

b. may, subject to approval by Canada, meet at least one of the project outcomes in Schedules A.2 (Public Transit), A.3 (Green Infrastructure), or A.4 (Community, Culture and Recreation Infrastructure). D. Ineligible Projects

When a project meets an outcome in the Rural and Northern Communities Infrastructure Outcomes Table, it is not eligible for contribution funding under this Agreement if it:

i. is housing; ii. is an early learning and childcare facility; iii. is a health facility, or an education facility, except to benefit Indigenous peoples by advancing the Truth and Reconciliation Commission's Calls to Action, as approved by Canada. iv. is a highway or trade corridor infrastructure, except for portions that connect communities that do not already have year round road access; or v. is resource development infrastructure, notably industrial resource development access roads. E. Stacking and Cost-Sharing i. The maximum funding from all federal sources to a Project that is approved for rural and northern communities infrastructure stream contribution funding under this Agreement will not exceed: a. Fifty percent of Eligible Expenditures for Ontario, municipalities with a population of five thousand (5,000) or more and not-for-profit Ultimate Recipients; b. Sixty percent (60%) of Eligible Expenditures for municipalities with a population of less than five thousand (5,000); c. Seventy-five percent of Eligible Expenditures for Indigenous Ultimate Recipients; or d. Twenty-five percent of Eligible Expenditures for for-profit, private sector Ultimate Recipients, notwithstanding a) or b) in this section. ii. The maximum funding to a Project under the rural and northern communities infrastructure stream from all federal sources will not exceed the limits set out in paragraph i) of this section, except for Indigenous Ultimate Recipients, which

may access additional funding for a Project up to a maximum of 100% of Eligible Expenditures from all federal sources, subject to approval by Canada. iii. If the federal Crown's total funding towards a Project under the rural and northern communities infrastructure stream exceeds the federal funding limits set out in paragraphs i) and ii) of this section, or if the Total Financial Assistance received or due in respect of the total Project costs exceeds 100% thereof, Canada may recover the excess from Ontario or reduce its contribution by an amount equal to the excess. iv. Canada's contribution to all Projects under the rural and northern communities infrastructure stream will not exceed the amount as set out in paragraph d) of section 3 (Commitments by Canada). F. Federal Requirements i. All Projects that meet an outcome in the Rural and Northern Communities Infrastructure Outcomes Table must meet the following requirements: a. Projects will be restricted to those situated within, and that are for the direct benefit of, rural and northern communities with a population of 100,000 or less based on 2016 Statistics Canada Census data. b. Ontario will respect the unique and wide-ranging infrastructure needs of rural and northern communities, including by considering projects that would advance reconciliation with Indigenous Peoples as per the Truth and Reconciliation Commission's Calls to Action and the United Nations' Declaration on the Rights of Indigenous Peoples, as well as capacity building needs of rural and northern communities.

ONTARIO INFRASTRUCTURE PLAN

A. Ontario will submit to Canada by September 30th, 2018 and will update and re-submit to Canada annually by May 31st an infrastructure plan, to the satisfaction of Canada and Ontario, that includes: i. A section that describes Ontario's approach and priorities for the Program, including but not limited to Ontario's plans for achieving the targets outlined in paragraph q) of section 4 (Commitments by Ontario), Ontario's approach for meeting the commitments in paragraphs n) and o) of section 4 (Commitments by Ontario) to ensure that a fair balance of municipal and provincial projects are submitted for Canada's approval and that projects supporting Indigenous peoples are considered for contribution funding under this Agreement, and Ontario's aspirational targets for community employment benefits provided to federal target groups (apprentices, Indigenous peoples, women, persons with disabilities, veterans, youth, new Canadians, or small-medium-sized enterprises and social enterprises); ii. A section identifying projects that Ontario intends to submit for approval by Canada for contribution funding under this Agreement, including projects that are ready to be submitted to Canada or that Ontario may submit to Canada in the future; and

iii. For all updated infrastructure plans, information on accomplishments in the previous Fiscal Year. B. Ontario may update the information required under paragraph a) ii) in this section at any time. C. All infrastructure plans submitted to Canada will cover a minimum period of the current Fiscal Year and the next two Fiscal Years, up to the Agreement End Date. D. All infrastructure plans will include an attestation in a format acceptable to Canada from a delegated official from Ontario that contribution funding received from Canada under this Agreement will not displace infrastructure spending in accordance with paragraphs l) and m) in section 4 (Commitments by Ontario). E. Ontario will provide, at Canada's request and to the satisfaction of Canada and Ontario, additional information related to any Ontario infrastructure plan. F. The submission of any Ontario infrastructure plan to the satisfaction of Canada and Ontario does not constitute approval of projects by Canada under this Agreement and does not prohibit Ontario from submitting projects for approval by Canada in accordance with section 9.1 (Project Submission and Approval) that are not included on a submitted infrastructure plan.

Conclusions:

This tells us that the Goderich Port Expansion project is consistent with both the Canada- Ontario Infrastructure Agreement and the Rural and Northern Infrastructure Stream. Improved marine infrastructure is a designated funding priority. Federal funding can provide up to 50% of the total project costs and there appears to be sufficient funds available in the stream to fund the remainder of the expansion as expressed in the EA. Note that the Canada-Ontario agreement was signed in 2017 but the project details are to be agreed upon by the Parties this fall. The Ontario government (Infrastructure Ontario) is obligated to submit its policy framework to Infrastructure Canada by September 30, 2018.

c. Environnent Component of the Federal Infrastructure Program

Excerpt from an email from Eva Mohan, Transport Canada.

"Hi Michael,

If you recall, I mentioned that if the improvements at the Port of Goderich involve clean tech innovations, then it would be worthwhile to look into the Clean Growth Hub; http://www.ic.gc.ca/eic/site/099.nsf/eng/home .

Budget 2017 announced over $2.3 billion to support clean technology in Canada and the growth of Canadian firms. The Clean Growth Hub includes several Government of Canada departments, including Transport Canada, and provides a team of experts from various departments to help find the right program or service that fits your needs.

There are several programs and initiatives geared toward supporting clean tech projects; from the early stages of research, conducting technology demonstration or growing your business and exporting, the Clean Growth Hub can point you to the support that fits your needs. Services are available to firms of all sizes in the clean technology space and across all sectors of the economy.

If there is anything else I can help you with, feel free to reach out.

Have a great day, Eva

>; Mohan, Eva

Conclusions

While there may be some aspects of the Port expansion that could contribute to improved environmental performance, I have concluded that there is little point in pursuing this funding angle. Essentially, port expansion is an investment in port infrastructure and is more geared to the Rural and Northern Stream of the Building Canada Fund.

5. Ontario Government Programs

A. Infrastructure Ontario Program Definitions and Priorities

Infrastructure funding for small communities

How to apply for funding to support infrastructure projects in small communities.

Overview

The Ontario Community Infrastructure Fund (OCIF) provides steady, long-term funding for small, rural and northern communities to develop and renew their infrastructure. The total fund is increasing from $100 million per year to $300 million per year by 2018-19.

Formula based-funding

Beginning in 2016-17, the province has increased the amount of formula-based funding from $50 million per year to:

• approximately $95 million in 2017 • $130 million in 2018 • $200 million per year in 2019 and onwards.

Read the guidelines to receive the formula-based component.

Top-up application funding

The Top-up Application Component provides funding for intakes of approximately $100-million per year to help communities with relatively small formula-based grants to top up their funding to address larger critical infrastructure projects.

Read the guidelines to apply for the application-based component.

Asset management planning

Asset management planning is essential for the long-term sustainability of Ontario communities. Asset management can help municipalities make informed planning decisions about building, operating, maintaining, renewing and replacing their infrastructure over the long term.

Improved municipal asset management planning is a vital step in Ontario’s Municipal Infrastructure Strategy. The Ontario Community Infrastructure Fund supports this strategy, as many expenditures related to the development of asset management plans are eligible costs under OCIF formula-based funding.

Municipalities have made significant progress in developing comprehensive asset management plans. Building on this progress, the province has prepared a proposed regulation for municipal asset management planning which aims to help municipalities more clearly identify what their infrastructure needs are, and therefore help them work towards a more sustainable position regarding the funding of their infrastructure.

The province will continue to seek alignment between OCIF and municipal asset management planning, including the proposed regulatory requirements, if approved. The province will also continue to examine opportunities for OCIF to bring more emphasis to supporting proactive asset management practices, in addition to critical health and safety issues.

How to receive formula-based funding through the Ontario Community Infrastructure Fund

What Ontario communities need to know when receiving formula-based grants from the Ontario Community Infrastructure Fund. https://www.ontario.ca/page/how-receive-formula-based-funding-through-ontario- community-infrastructure-fund

Conclusions:

This program is designed to top up funding relevant to municipal asset management plans and has priority for "core infrastructure" which is defined as roads, bridges, water and wastewater, including sanitary and storm-water facilities. As a result, I believe this type of program is more relevant to Goderich municipal infrastructure plans (water, wastewater, bridges, road) as opposed to Port Expansion.

• Infrastructure Ontario (IO) Policy and Federal-Provincial Infrastructure Agreement role

As mentioned previously, IO is a key department for this project as they are responsible for:

• oversight and agreement on the Canada-Ontario infrastructure Agreement, particularly as it affects programs and funding under the Building Canada Fund • IO must submit by September 30, 2018, its policy framework as outlined in more general terms under the 2017 Canada-Ontario Infastructure Agreement (see Section 1b.) • The Minister responsible for IO is Monte McNaughton. He represents the Lambton, Kent, Middlesex constituency which is the riding adjacent to Huron-Bruce (where Goderich is the largest town in Huron County). The Minister responsible for Huron- Bruce. The two Ministers would know each other well.

IO is also responsible to outline and publish the funding parameters and program framework to Ontario stakeholders to allow them to apply for funding under the federal-provincial Infrastructure Agreement. Sometime this fall, IO will publish this framework and presumably invite municipalities and other eligible stakeholders to apply for Infrastructure funding under the program streams as outlined in the federal provincial agreement. One of these streams is the Rural and Northern funding Steam as outlined earlier in this paper.

A key contact is Luke Hillan, Manager of the Federal-Provincial Infrastructure Policy Branch at IO. His Director is Julia Danos.

Luke can be reached at: 647-287-7897 or [email protected].

His Director, Julia Danos, can be reached at [email protected].

B. Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)

• OMAFRA Programs

OMAFRA has small funding programs but in my view these programs are not particularly relevant for the Port Expansion. A relatively large capital program of $30 million is best funded under the federal-provincial Infrastructure program. The key role that OMAFRA is twofold:

1. they will have an administrative role in the port funding, assuming it is funded under the Infrastructure program.

2. they have regional development officers that can play an important catalytic role in:

• engaging stakeholders in the project, including potential users of the expanded port (e.g. Bruce Power) • coordinating economic development outcomes and activities consistent with the expansion of the Port (e.g. engaging municipal and regional economic development officer, programs, federal regional economic development resources (e.g. Regional Development Agency for Southern Ontario-FedDev Ontario), etc.

The relevant Manager responsible for oversight and management of the economic development officers is Kevin Laidley in London Ontario. Some relevant email exchanges are below.

Good afternoon Mr. Teeter,

Thank you for your email. I have forwarded your contact information to the ministry’s regional office and someone will be contacting you regarding your inquiry.

Regards,

Andrea Ruskova

Andrea Ruskova Manager (A) Business and Rural Investment Programs |Rural Programs Branch Ontario Ministry of Agriculture, Food and Rural Affairs

Tel: 519-826-6615

Mr. Teeter,

Thank you for your inquiry through Andrea Ruskova in our Rural Programs Branch.

I look forward to a brief discussion with you on the Goderich harbour expansion project later today. My coordinates are below.

Following our discussion, I will ask that Vicki Lass, Agriculture and Rural Economic Development Advisor follow up with you directly. Vicki’s geographic area of coverage includes Huron County. With this, she has good connection to many local groups, including municipal economic development staff. Vicki is currently on vacation, returning late next week.

I look forward to our discussion.

Kevin

Kevin Laidley Regional Manager, West Region Regional Economic Development Branch Ministry of Agriculture, Food and Rural Affairs 667 Exeter Road London, ON N6E 1L3

Phone: (519) 873-4098 Fax: (519) 873-4062 Email: [email protected]

Agricultural Information Contact Centre: 1-877-424-1300

For information on upcoming meetings and events, go to Dateline at: http://www.omafra.gov.on.ca/english/rural/edr/events-training.htm

• OMAFRA Policy Division

OMAFRA also has an important role to play in advising other Ministries (including Infrastructure Ontario) on the suitability of programs and activities to fund. These would be projects that are consistent with their mandate to promote economic development in small communities and rural Ontario. Obviously, Goderich fits this mandate. One Officer responsible is below.

From: Uliana, Karla (OMAFRA) [mailto:[email protected]] Sent: Tuesday, July 24, 2018 10:16 AM To: [email protected] Cc: D'Souza, Ludovic Subject: RE: DISCUSSION: Expansion Feasibility Study - Port of Goderich

Hello Michael – happy to chat with you to find out more.

Karla

Karla Uliana, B.A., M.Sc. Senior Policy Advisor Rural Policy Branch Ontario Ministry of Agriculture, Food & Rural Affairs Phone: 519-826-3650 Email: [email protected]

Note: As part of providing accessible customer service, please let me know if you have any accommodation needs or require communication supports or alternate formats.

• Regional Office: Transport Canada

Marine Infrastructure is a policy field for Transport Canada. The person below is the responsible regional officer for this project. He can be quite helpful with questions of a general nature.

From: D'Souza, Ludovic [mailto:[email protected]] Sent: Monday, July 23, 2018 5:11 PM To: [email protected] Cc: Uliana, Karla (OMAFRA) Subject: RE: DISCUSSION: Expansion Feasibility Study - Port of Goderich

Hi Michael, sure do give me a call when you are ready. I initiated some research several years ago on the transportation of food, given it is one of the biggest users of road and rail in southern Ontario. I might be able to lend some ideas and thoughts. Karla Uliani, a provincial colleague, can be reached at: [email protected] 519-826-3650 FYI, I got to know Karla when I chaired the Rural Team Ontario a federal initiative. I found OMAFRA to be most engaged on rural economic development files. You may want to call her to inquire as to the new government’s directions. Have a safe and enjoyable summer.

Ludovic D’Souza

Senior Analyst, Coordination & Policy Advice Transport Canada / Government of Canada [email protected] / Tel: 416-952-0170 / TTY: 1-888-675-6863

Analyste principal, Politique et coordination Transports Canada / Gouvernement du Canada [email protected] / Tél. : 416-952-0170 / ATS : 1-888-675-6863

6. Some Private Sector Considerations

• Genesee & Wyoming Railway, Goderich to Exeter short line (GEXR)

Genesee &Wyoming currently operates the CN freight line from Stratford to Kitchener and London. This fall, this operating agreement will no longer exist and CN will now operate the beyond Stratford line. GEXR officials feel that the agreement they have negotiated with CN, to continue to use the CN line beyond Stratford, is excellent and that the GEXR short line will be continue to viable and a going concern. The key players at the Railway are:

Michel Vincent, Vice President, Sales Management (514) 773-0310, [email protected]

Christian Richard, VP, Business Development, (514) 235-7737, [email protected]

Andrew Creighton, General Man ager, GEXR, 519-271-4441, ext. 1.

• Bruce Power

Bruce Power currently provides 36.3% of Ontario's electricity. In 2013, Bruce achieved agreement with Ontario government and related organizations, to refurbish its 8 nuclear units at Bruce Power. This is a 2016-2053 construction program of over $13 billion. There will be significant supply requirements for this large construction project and the Port of Goderich could be a beneficiary of this business. Bruce is a joint partnership between Trans Canada and OMERS, with small interests from the Power Workers Union and other Employee organizations. It is the largest operating nuclear facility in the world and one of the few that are 100% owned by the private sector. Located in Tiverton, Ontario (near Kincardine) Bruce could be a good partner for the Goderich Port. Supplies from ships could be off-loaded to barges at Goderich for shipment to the massive power facility.

GPMC has contacts at Bruce but I am told by a friend close to Bruce Power that Frank Saunders is a key management player at Bruce Power.

• Other issues: Aboriginal uses, Agribusiness and the Canada-Europe Free Trade Agreement (CETA)

Many Infrastructure programs assess a priority for funding aboriginal beneficiaries and aboriginal economic development outcomes. A number of infrastructure baskets provide up to 50% federal funding when aboriginals are a clear beneficiary.

Agribusiness beneficiaries can also be important to small communities and rural program objectives.

CETA does change some of Canada's restrictive shipping and maritime regulations to allow some European shippers and vessels to enjoy some cabotage benefits in the Canadian market. However, much of these changes apply to the Montreal-Halifax shipping corridor only. It is likely that these benefits would not be material to the Port of Goderich.